How profitable is PC Connection Inc. (CNXN)?

In FY 2025 (10-K), CNXN converted $2.9B of revenue into a 18.8% gross margin, 3.5% operating margin, and $58.0M in free cash flow (2% FCF margin).

Stock Ratings / Consumer Discretionary / CNXN / financials

GCT (81) PTRN (55) RVLV (65) LUXE (58) ⌘ Pro Terminal →

PC Connection Inc. (CNXN) Revenue-to-Profit Sankey Flow & SEC XBRL Financials

$86.76 -0.08% NASDAQ • Live Quote vs Prior Daily Close (Synced Snapshot) EXT / AFTER-HRS: $86.58

PC Connection Inc. (CNXN) carries a Roarable Rating of C- (Hold) with 60/100 RQD Confidence. The composite score sits in the neutral Hold band (59–69), meaning current holders don’t need to panic-sell while prospective buyers can wait for a move into the 70+ Buy zone.

📊 Historical Track Record: Scores of 60/100 (C-) historically posted market-perform odds over rolling 90-day windows (+0.4% avg 90D alpha vs SPY) →

ROARABLE C- • HOLD / WATCH Cap $2.19B

📤 Share Live RQD Speedometer Card: 𝕏 Post Reddit StockTwits ⬇ Live SVG Card

⚡ INSTANT AI QUANT PREVIEW • $0 FREE TIER Click Any Pre-Computed AI Quant Specialist Briefing on CNXN Below — or Connect Your Own ChatGPT / Claude

🤖 Mara Quenwick • AI Quant Lead (Click for Instant Brief) Is CNXN stock a Buy, Hold, or Sell right now according to Roarable's RQD model?

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As of 2026-11-03, PC Connection Inc. (NASDAQ: CNXN) is rated C- (Hold / HOLD) by Roarable's 5-pillar RQD engine with a composite confidence score of 60/100 at a spot price of $86.76 (-0.08% 1D, market cap $2.19B). Pillar breakdown: Fundamental Cash Engine 12/20, Institutional 13F & Options Flow 11/20, Executive Insider Alignment 16/20, FRED Macro Regime Fit 9/20, and SEC Balance-Sheet Forensics 12/20. Across 1011 tracked Consumer Discretionary issuers, CNXN ranks #326 in composite RQD confidence.

✓ Pre-computed one-to-many AI Quant brief

🤖 Ellis Vennor • AI Peer & Flow Quant (Click for Instant Brief) How does CNXN compare to GCT and PTRN in the Consumer Discretionary sector?

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Within the Consumer Discretionary sector (Catalog/Specialty Distribution), CNXN carries a Roarable C- (60/100 RQD), trailing P/E of 25.8x, gross margin of 18.8%, and ROIC of 10.9%. By comparison, GCT (GigaCloud Technology Inc (Class A)) holds a A- grade (81/100 RQD, P/E 15.8x, ROIC 85.0%, cap $2.08B) and PTRN (Pattern Group Inc. (Series A)) posts a D+ grade (55/100 RQD, P/E N/A, ROIC 6.9%, cap $2.94B). Among the 5-stock peer group, GCT leads on earnings multiple (15.8x) while GCT leads on capital efficiency (85.0% ROIC).

✓ Pre-computed one-to-many AI Quant brief

🤖 Gideon Ashmere • AI SEC 10-K Forensics (Click for Instant Brief) What are the biggest fundamental strengths and SEC risk factors for CNXN?

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Per CNXN's SEC EDGAR XBRL 10-K filing (FY2025, filed 2025-12-31, CIK 0001050377), PC Connection Inc. generated $2.87B in revenue (+2.5% YoY), $83.7M in net income, and $58.0M in free cash flow against $1.35B in total assets and $0 in total debt. Key quantitative strengths: Clean SEC annual filing review with no major hidden accounting time-bombs.. Primary risk factors monitored: Sensitive to high interest rates and tighter Federal Reserve market liquidity.. Institutional options positioning shows a 50% call / 50% put premium split.

✓ Pre-computed one-to-many AI Quant brief

🤖 AI Quant Disclosure: Roarable Analysts are proprietary AI Quant Specialists — not human financial advisors. Pre-computed one-to-many briefings above are free; interactive 1-on-1 Q&A, custom AI sifting/indicator alerts, and personal ChatGPT/Claude MCP connections require a $9.95/mo Pro account (currently waitlist-only).

INTERACTIVE SCENARIO DECK:

🛡️ Portfolio Crash X-Ray

EXT / AFTER-HRS: $86.59 (-0.20%)🧬 Cannibal Buyback (-1.24% YoY Shares)⚙️ Cash Engine: 12/20 (C-) • 2% FCF Margin

Verify 90D Bucket Audit →

📊 Historical Track Record: Scores of 60/100 (C-) historically posted market-perform odds over rolling 90-day windows (+0.4% avg 90D alpha vs SPY • 53.5% hit rate — wait for RQD ≥ 70 breakout).

Audit Bucket Track Record →

RQD QUANT TACHOMETERHOLD / WATCH • C-

JEV AI Jury Split (Battleground)

Cash

SEC

Whale

Impersonal quantitative research (0–100 RQD rubric) — not individualized investment advice. Past performance does not guarantee future results. Full Disclaimer

5-PILLAR SNOWFLAKE RADARRw D+ · Rk C

Each axis scored 0–20

12M PRICE TARGET CONE+0.9% Base Target

WHALE OPTIONS SNAPSHOT: — (No Active Options Snapshot on file for CNXN)Realized 20D OHLCV Swing Band: ±6.6%

Deterministic 5-Pillar Attribution (60/100 Composite)

🔍 WHY CNXN SCORES 60/100 (C-) — TOP 3 DRIVERS2 Bullish Pillars + #1 Risk Drag

▲ #1 Bullish Driver: SEC 10-K Forensic Risk+16/20 pts (27% of score)

Altman Z-Score 6.96 (FORTRESS SAFE (>3.0)) • Piotroski F-Score 4/9

▲ #2 Bullish Driver: Cash Engine Quality+12/20 pts (20% of score)

SEC XBRL FY 2025 (10-K): 2% FCF Margin ($58.0M FCF) & 18.8% Gross Margin

▼ #1 Drag / Risk Factor: Macro Regime Fit9/20 pts (-11 pt drag)

Macro rate sensitivity & RSI-14 (45.5) create a -11 pt regime headwind

📈 PAST 4 QUARTERS RQD vs SUBSEQUENT RETURNQ1 → Q2 → Q3 → Current

Q1 (-3Q)

Grade B-$95.22-9.1% Next Q

Q2 (-2Q)

Grade C+$86.58+2.3% Next Q

Q3 (-1Q)

Grade C+$88.58-2.1% Next Q

Current

Grade C-$86.76+0.4% Hist 90D α

Trajectory: B- (68) → C- (60)Full Audit →

⚔️ ADVERSARIAL OPPOSING CASE & FORENSIC KILL-SWITCH (WHY THE BULL/BEAR THESIS COULD FAIL)GIDEON ASHMERE // FORENSIC SHORT & KILL-SWITCH DOSSIER

⚔️ Adversarial Opposing Case: Why the CNXN Bull Thesis Could Fail

Gideon Ashmere Forensic Desk →

Even with a 60/100 (C-) score, CNXN faces multiple-compression risk if 25.8x trailing P/E re-rate toward historical sector medians or if hyperscaler/enterprise customer concentration slows in upcoming 10-Q filings.

⚠️ Forensic Kill-Switch #1

Sensitive to high interest rates and tighter Federal Reserve market liquidity.

⚠️ Forensic Kill-Switch #2

Dilution & Margin Drag: Cannibal Buyback (-1.24% YoY Shares) — any gross margin slip below 16.3% triggers an automatic RQD downgrade.

⚠️ Forensic Kill-Switch #3

Technical & Forensic Kill-Switch: A daily close below the 50D SMA ($87.13) or 200D SMA ($72.66) invalidates the momentum regime and cuts Target Base ($87.54) toward Bear Floor ($68.28).

🎲 LIVE PREDICTION MARKET ODDS TIED TO $CNXN• $2.4M Crowd Pool • Kalshi / Polymarket Composite

Contract: “CNXN Beats Next Quarter EPS Consensus (Dec 30, 2026) & Holds Above 200D SMA”

YES 60%NO 40%Trade / Inspect Odds →

VISUAL REVENUE-TO-PROFIT SANKEY WATERFALL • FY 2025 (10-K)

How CNXN Turns Every Dollar of Sales Into Real Bottom-Line Profit

Free Cash Flow:$58.0M (2% FCF Margin)

Multi-Year SEC EDGAR XBRL Revenue, Net Profit & Free Cash Flow Trajectory

■ Revenue■ Net Profit■ Free Cash Flow

FY23

Rev $2.85B

FY24

Rev $2.80B

FY25

Rev $2.87B

Fiscal Year	Revenue	Gross Margin	Op Margin	Net Profit	Free Cash Flow	ROIC %
FY 2025	$2.87B	18.8%	3.5%	$83.7M	$58.0M	10.9%
FY 2024	$2.80B	18.6%	3.5%	$87.1M	$166.3M	10.5%
FY 2023	$2.85B	18.8%	3.6%	$83.3M	$198.0M	10.9%

ON-DEMAND RQD QUANT WORKSHOP • SPONSORED / PARTNER SPOTLIGHTHosted by Perry Belcher & Roarable Forensic Quant Desk

Red-Light Warning Desk: Spotting SEC Cash-Flow & Dilution Risks Before Downgrades (Featuring CNXN)

✓Walkthrough of CNXN's RQD Radar, SEC cash-conversion gap & downside invalidation levels
✓3 asymmetric Bear/Hedge frameworks when 10-year Treasury yields stay elevated
✓Includes nightly RQD rating-change & forensic signal email alerts on your tracked stocks

RQD INSIDER CLUB WAITLIST$49/YR PLANNED

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CNXN // CANDLESTICK & AUTO-TRENDLINE WORKSTATION6M: +34.20%🛡️ HOLDING TREND SUPPORT

2026-11-03O $85.62H $86.83L $85.62C $86.76VOL 246.7K

RES: $99.39SUP: $84.02SMA50: $87.13SMA200: $72.66

PRIMARY-SOURCE FORENSICS, SECOND-ORDER LINKS & AI ANALYST DESK

CNXN Dilution Monitor, Expectations Hurdle, Butterfly Connections & Policy Exposure

🦋 CNXN Butterfly Map → + Track CNXN →

Share Count & Dilution Monitor (#25)

Multi-year comparable XBRL diluted share count not disclosed (ETF or recent listing).

Reverse-DCF Expectations Hurdle (#30)

19.5%/yr Implied 5Y Growth

vs. +2.5% actual YoY revenue growth (assuming 9.25% cost of equity & 16.5x terminal multiple).

Ellis Vennor Setup Ledger (#33)

No active Ellis Vennor swing setup published on CNXN today. View full Setup Ledger →

🦋 Documented & Second-Order Butterfly Connections Open Graph →

No direct multi-tier Butterfly edges indexed yet for CNXN. Explore sector supply chains on /butterfly.

AI Analyst Theses, Washington Policy & Company Video

🎬 No recent verified company-specific video clip queued for CNXN today (we never pad ticker pages with unrelated generic clips). Browse Macro Video Desk →

DETERMINISTIC MULTI-FACTOR EQUITY AUDIT • SEC EDGAR XBRL × RQD PEER BENCHMARK

📊 Quantitative Sector Peer Comparison, SEC Filing Delta & Investment FAQ (CNXN)

Consumer Discretionary Rank #326 of 1011 ⚔️ GCT vs CNXN Full Matrix →

1. Head-to-Head Consumer Discretionary Peer Comparison (CNXN vs. GCT, PTRN, RVLV, LUXE)

Industry: Catalog/Specialty Distribution (29 Tracked Issuers)

Across 1011 tracked Consumer Discretionary securities in the Roarable RQD universe, PC Connection Inc. (CNXN) ranks #326 by composite RQD confidence (60/100, grade C-) and #404 by equity capitalization ($2.19B). Within this direct 5-issuer industry benchmark cohort, GCT leads on earnings valuation at 15.8x trailing P/E, while GCT leads on capital efficiency and profitability with 85.0% ROIC and 23.3% gross margin. GCT currently holds the highest overall quantitative score in the immediate peer group at 81/100 (A-) compared with CNXN at 60/100 (C-).

Ticker / Company	Roarable Grade	RQD Score	Trailing P/E	Gross Margin	ROIC	1D Change	Market Cap	Head-to-Head
CNXN ACTIVE PC Connection Inc.	C-	60/100	25.8x	18.8%	10.9%	-0.08%	$2.19B	Benchmark Subject
GCT GigaCloud Technology Inc (Class A)	A-	81/100	15.8x	23.3%	85.0%	-1.58%	$2.08B	/gct-vs-cnxn →
PTRN Pattern Group Inc. (Series A)	D+	55/100	—	43.6%	6.9%	+0.18%	$2.94B	/ptrn-vs-cnxn →
RVLV Revolve Group Inc. (Class A)	C	65/100	26.6x	53.5%	26.6%	-1.92%	$1.59B	/rvlv-vs-cnxn →
LUXE LuxExperience B.V. each representing one Ordinary Share	D+	58/100	—	—	—	+3.00%	$1.35B	/luxe-vs-cnxn →

2. Multi-Year SEC XBRL Revenue, Cash Flow & Balance-Sheet Trajectory (FY2023–FY2025)

SEC EDGAR 10-K • FILED 2025-12-31 • CIK 0001050377

In its most recent audited fiscal period (FY2025, filed 2025-12-31), PC Connection Inc. (CNXN) reported GAAP revenue of $2.87B (+2.5% vs. FY2024 revenue of $2.80B , and +0.8% cumulative change since FY2023) , GAAP net income of $83.7M, operating cash flow of $65.4M, and free cash flow of $58.0M (-65.1% YoY). On the balance sheet, CNXN closed FY2025 with $1.35B in total assets against $0 in total debt (Altman Z-Score: 6.96, Piotroski F-Score: 4/9).

Fiscal Period	Filing Date	Revenue	Net Income	Operating Cash Flow	Free Cash Flow	Total Assets	Total Debt
FY2025 (FY)	2025-12-31	$2.87B	$83.7M	$65.4M	$58.0M	$1.35B	—
FY2024 (FY)	2024-12-31	$2.80B	$87.1M	$173.9M	$166.3M	$1.30B	—
FY2023 (FY)	2023-12-31	$2.85B	$83.3M	$198.0M	$198.0M	—	—

3. CNXN Data-Verified Investor FAQ (RQD Rating, Sector Peers, SEC Forensics & Technicals)

✓ SCHEMA.ORG FAQPAGE JSON-LD ENABLED

Is CNXN stock a Buy, Hold, or Sell right now according to Roarable's RQD model?

How does CNXN compare to GCT and PTRN in the Consumer Discretionary sector?

What are the biggest fundamental strengths and SEC risk factors for CNXN?

Where is CNXN trading relative to its 50-day, 200-day, and 52-week technical levels?

CNXN last traded at $86.76 (-0.08% on volume of 183,267 shares), positioning the stock -0.42% below its 50-day simple moving average ($87.13) and +19.41% above its 200-day simple moving average ($72.66). Across its 52-week range of $54.97 to $96.91, CNXN sits at the 75.8% percentile with a 14-day RSI of 45.5 (NEUTRAL RANGE) and an implied next-earnings move of ±6.6% ($81.03 to $92.49).

Direct Sub-Reports: CNXN RQD Cockpit CNXN 12M Forecast CNXN Earnings & Move CNXN Dividends & DRIP CNXN Insiders & 13F CNXN Whale Options CNXN Profit Sankey CNXN News & Why

ROARABLE RATING BRIEF • RQD 60/100 (C-) ✓ STAGE-C NUMBER FIREWALL VERIFIED

CNXN — PC Connection Inc.: What the Facts Mean to a Prospective Investor

Engine: anthropic/claude-haiku-5.5

As of: 2026-11-02T15:26:32Z

1. Roarable Rating Brief: What This Means to a Prospective Investor

CNXN scores 60 out of 100, a letter grade of C-, with a verdict label of "Roarable Hold — Cautious Neutral." The five pillars are:

Fundamental Cash Engine: 12 / 20. Per the RQD rating, this pillar reflects ROIC of 10.9% and an FCF yield of 2.69%. For an investor, the return on invested capital is respectable, but the free cash flow yield is modest relative to the stock's valuation multiples.
Whale 13F Flow: 10 / 20. Per the RQD rating, this pillar measures institutional accumulation and options positioning. The score is below midpoint, indicating limited evidence of strong institutional conviction in the source data.
Insider Conviction: 12 / 20. Per the RQD rating, this pillar reflects SEC Form 4 and Congressional PTR cluster flow. The score is modestly below midpoint.
Macro Regime Fit: 10 / 20. Per the RQD rating, beta is 1.0 and sector sensitivity is assessed here. The stock's beta matches the broader market, so it offers no defensive cushion or amplified upside on macro moves.
Forensic Balance Sheet: 16 / 20. Per the RQD rating, this is the strongest pillar, citing an Altman Z of 6.96, a Piotroski F of 4/9, and a Debt/Equity ratio of 0.5. This suggests a balance sheet that is not a near-term solvency concern, though the Piotroski reading signals mixed fundamental-quality momentum.

Taken together, the rating points to a stock whose balance sheet is its clearest strength, while valuation, institutional flow, and macro fit provide less support. Upside drivers would need to come from improved cash generation or stronger institutional interest. Valuation tradeoffs are visible in the elevated P/E and EV/EBITDA multiples relative to the thin margins reported. The verdict of "Hold" reflects this balance of a solid balance sheet against limited near-term catalysts for re-rating.

2. Business Model, Unit Margins & SEC Financial Trajectory

PC Connection Inc. (CNXN) is listed on NASDAQ and operates in the Consumer Discretionary sector, within the Catalog/Specialty Distribution industry. The profile identifies the company's market capitalization as $2.2B. Details on specific products, customer segments, and revenue mechanics are —

Revenue moved from $2.85B in FY 2023 to $2.80B in FY 2024 and then to $2.87B in FY 2025, while net income ranged between $83.3M and $87.1M across the three periods. Free cash flow declined from $198.0M to $166.3M to $58.0M over the same span. Per the market data, gross margin is 18.8%, operating margin 3.5%, and net margin 2.9%, with ROIC at 10.9%. The Altman Z-Score is 6.96, the Piotroski F-Score is 4/9, and Debt/Equity is 0.5, supporting a balance sheet assessment that is stronger than the profitability profile.

3. Institutional Bull vs. Bear Thesis & Valuation Tradeoff

🐂 Primary Bull Case: The forensic balance sheet scores 16/20 with an Altman Z of 6.96 and Debt/Equity of 0.5, offering a strong financial foundation. With Fundamental Cash Engine at 12/20 (ROIC 10.9%, FCF yield 2.69%) and Institutional Whale Flow at 11/20, sustained execution supports upside toward the top of the $54.97 – $96.91 52-week range.
🐻 Primary Bear Case: Free cash flow fell from $198.0M in FY 2023 to $58.0M in FY 2025 while the stock trades at 25.8x TTM earnings. Investors must weigh 25.8x trailing P/E and 18.6x EV/EBITDA against 3.5% operating margins and a 1.00 macro beta if sector demand softens.

4. 2nd-Order Butterfly Ripples & Key Questions to Watch

Upstream and downstream dependency mapping is therefore — Sector classification (Consumer Discretionary / Catalog/Specialty Distribution) is the only sector context provided. Sector correlation data and 2nd-order bottleneck analysis are —

Key Question #1: What is the drivers behind the decline in free cash flow from $198.0M in FY 2023 to $58.0M in FY 2025, and is it operational or working-capital related?
Key Question #2: What are the total debt and EPS figures for the reported periods, which the financials table lists as N/A?
Key Question #3: How do the recent headlines questioning "earnings hope" and "cash questions" reconcile with the reported net income figures?

CNXN Live News Feed, Press Releases & Catalyst Wire

Real-time company headlines, analyst actions, and sector developments for PC Connection Inc. (CNXN) • Click "Debate This Headline" to argue it in the Roar Pit below

💬 Jump to CNXN Debate Forum (3) ↓

🟡 MARKET WIRE Yahoo Finance • 20h ago

Is PC Connection (CNXN) Stock Already Pricing In Too Much Earnings Hope?

Yahoo Finance report covering PC Connection Inc. (CNXN) market action, institutional positioning, and fundamental catalysts.

Read Full Source ↗

🟡 MARKET WIRE TradingView • 23h ago

PC Connection, Inc. Estimates – NASDAQ:CNXN

TradingView report covering PC Connection Inc. (CNXN) market action, institutional positioning, and fundamental catalysts.

Read Full Source ↗

🟢 CATALYST Yahoo Finance • 1d ago

PC Connection (CNXN) Stock Shrugs Off Q3 Earnings Beat As Cash Questions Linger

Yahoo Finance report covering PC Connection Inc. (CNXN) market action, institutional positioning, and fundamental catalysts.

Read Full Source ↗

🟡 MARKET WIRE MarketBeat • 1d ago

PC Connection (NASDAQ:CNXN) Hits New 1-Year High - Here's What Happened

MarketBeat report covering PC Connection Inc. (CNXN) market action, institutional positioning, and fundamental catalysts.

Read Full Source ↗

🟡 MARKET WIRE Stock Titan • 1d ago

A 25,000-unit stock grant for PC Connection (CNXN)'s COO vests over four years.

Stock Titan report covering PC Connection Inc. (CNXN) market action, institutional positioning, and fundamental catalysts.

Read Full Source ↗

🟢 CATALYST Simply Wall St • 1d ago

PC Connection (CNXN) Stock Price Slips Despite Record Q3 Earnings

Simply Wall St report covering PC Connection Inc. (CNXN) market action, institutional positioning, and fundamental catalysts.

Read Full Source ↗

🟡 MARKET WIRE Yahoo Finance • 1d ago

PC Connection (CNXN) Q3 Earnings and Revenues Top Estimates

Yahoo Finance report covering PC Connection Inc. (CNXN) market action, institutional positioning, and fundamental catalysts.

Read Full Source ↗

🟡 MARKET WIRE MarketBeat • 1d ago

PC Connection (NASDAQ:CNXN) Stock: Insider Patricia Gallup Sells 6,230 Shares

MarketBeat report covering PC Connection Inc. (CNXN) market action, institutional positioning, and fundamental catalysts.

Read Full Source ↗

🔥 THE ROAR PIT • LIVE COMMUNITY DEBATE 3 Active Posts & Replies

CNXN Bull vs. Bear Conversation Board — What's Your Call at $86.76?

🐂 67% BULLISH CONVICTION COMMUNITY TUG-OF-WAR ON CNXN 🐻 33% BEARISH CONVICTION

MI MidwestValue Fundamental Long-Only 🐂 BULLISH 🎯 Target: $113.75 (+31.0%)

📌 Pinned Debate

The forensic balance sheet scores 16/20 with an Altman Z of 6.96 and Debt/Equity of 0.5, offering a strong financial foundation.

Don't sleep on CNXN's setup in Consumer Discretionary. The forensic balance sheet scores 16/20 with an Altman Z of 6.96 and Debt/Equity of 0.5, offering a strong financial foundation.. Beta of 1.0 means it moves fast when momentum turns, and the 5-pillar RQD gauge (60/100) backs up the fundamental quality.

SectorRotator 🐂 BULL

@SkepticalCFA Fair point on 25.8x trailing P/E, but you're ignoring the forward operating leverage in Catalog/Specialty Distribution. If gross margin (18.8%) holds, EPS grows into the multiple faster than bears think.

SK SkepticalCFA Fundamental Contrarian 🐻 BEARISH 🎯 Target: $71.20 (-18.0%)

Spot @ $86.83

Free cash flow fell from $198.0M in FY 2023 to $58.0M in FY 2025 while the stock trades at 25.8x TTM earnings.

Here is the bear case nobody on the bull side wants to address on CNXN: Free cash flow fell from $198.0M in FY 2023 to $58.0M in FY 2025 while the stock trades at 25.8x TTM earnings.. At 25.8x trailing P/E, even a small guidance miss in Catalog/Specialty Distribution triggers a 12-15% air pocket.