PC Connection | 10-Q: FY2025 Q3 Revenue Misses Estimate at USD 709.07 M

Revenue: As of FY2025 Q3, the actual value is USD 709.07 M, missing the estimate of USD 743.69 M.

EPS: As of FY2025 Q3, the actual value is USD 0.97, missing the estimate of USD 1.005.

EBIT: As of FY2025 Q3, the actual value is USD 30.27 M.

Enterprise Solutions Segment

• Net Sales: $943.8 million for the nine months ended September 30, 2025, an increase of 7.4% from $878.4 million in the same period in 2024.
• Gross Profit: $137.7 million, representing a gross margin of 14.6%, down from 15.4% in 2024.
• Operating Income: $25.2 million for the nine months ended September 30, 2025, compared to $26.4 million in 2024.

Business Solutions Segment

• Net Sales: $808.4 million for the nine months ended September 30, 2025, an increase of 2.8% from $786.7 million in 2024.
• Gross Profit: $202.3 million, with a gross margin of 25.0%, up from 24.1% in 2024.
• Operating Income: $67.7 million for the nine months ended September 30, 2025, compared to $58.1 million in 2024.

Public Sector Solutions Segment

• Net Sales: $417.6 million for the nine months ended September 30, 2025, a decrease of 2.4% from $428.1 million in 2024.
• Gross Profit: $63.7 million, with a gross margin of 15.3%, slightly up from 15.2% in 2024.
• Operating Loss: -$6.1 million for the nine months ended September 30, 2025, compared to an operating income of $1.7 million in 2024.

Cash Flow

• Net Cash Provided by Operating Activities: $38.0 million for the nine months ended September 30, 2025, compared to $148.6 million in 2024.
• Net Cash Provided by Investing Activities: $49.3 million for the nine months ended September 30, 2025, compared to -$109.7 million in 2024.
• Net Cash Used in Financing Activities: -$77.8 million for the nine months ended September 30, 2025, compared to -$16.4 million in 2024.

Future Outlook and Strategy

• Core Business Focus: The company plans to continue investing in its IT solutions business, which requires the addition of highly skilled service engineers. This is expected to result in higher-margin service revenues, although costs may increase as additional service engineers are added.
• Non-Core Business: The company did not provide specific plans related to divestitures or emerging segments in the report.