PC CONNECTION INC 10-Q

Item 1. Financial Statements ​ ​ PC CONNECTION, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEET S (Unaudited) (amounts in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ 2025 2024 ASSETS ​ ​ ​ ​ ​ ​ Current Assets: ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 187,845 ​ $ 178,318 Short-term investments ​ ​ 211,354 ​ ​ 264,295 Accounts receivable, net ​ 616,704 ​ 611,433 Inventories, net ​ 135,018 ​ 95,054 Prepaid expenses and other current assets ​ 23,161 ​ 17,750 Total current assets ​ 1,174,082 ​ 1,166,850 Property and equipment, net ​ 48,064 ​ 52,520 Right-of-use assets ​ ​ 1,781 ​ ​ 3,077 Goodwill ​ 73,602 ​ 73,602 Intangibles, net ​ 1,294 ​ 2,209 Other assets ​ 6,697 ​ 1,096 Total Assets ​ $ 1,305,520 ​ $ 1,299,354 LIABILITIES AND STOCKHOLDERS’ EQUITY ​ ​ ​ ​ ​ ​ Current Liabilities: ​ ​ ​ ​ ​ ​ Accounts payable ​ $ 312,813 ​ $ 300,242 Accrued payroll ​ 30,483 ​ 23,330 Accrued expenses and other liabilities ​ 40,792 ​ 47,633 Total current liabilities ​ 384,088 ​ 371,205 Deferred income taxes ​ 18,253 ​ 15,091 Non-current operating lease liabilities ​ ​ 437 ​ ​ 1,552 Other liabilities ​ — ​ 516 Total Liabilities ​ 402,778 ​ 388,364 Stockholders’ Equity: ​ ​ ​ ​ ​ ​ Common stock ​ 295 ​ 294 Additional paid-in capital ​ 143,413 ​ 137,036 Retained earnings ​ 888,957 ​ 837,466 Accumulated other comprehensive income ​ ​ 85 ​ ​ 174 Treasury stock, at cost ​ ​ ( 130,008 ) ​ ​ ( 63,980 ) Total Stockholders’ Equity ​ 902,742 ​ 910,990 Total Liabilities and Stockholders’ Equity ​ $ 1,305,520 ​ $ 1,299,354 ​ ​ ​ See notes to unaudited condensed consolidated financial statements. 1 Table of Contents PC CONNECTION, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOM E (Unaudited) (amounts in thousands, except per share data) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ 2025 2024 2025 2024 Net sales ​ $ 709,068 ​ $ 724,717 ​ $ 2,169,807 ​ $ 2,093,221 Cost of sales ​ 570,423 ​ 589,311 ​ 1,766,085 ​ 1,703,201 Gross profit ​ 138,645 ​ 135,406 ​ 403,722 ​ 390,020 Selling, general and administrative expenses ​ 108,379 ​ 105,365 ​ 325,107 ​ 315,181 Severance expenses ​ ​ — ​ ​ — ​ ​ 2,930 ​ ​ 415 Income from operations ​ 30,266 ​ 30,041 ​ 75,685 ​ 74,424 Interest income, net ​ 3,689 ​ 4,837 ​ 10,805 ​ 14,053 Other income ​ — ​ 1,700 ​ 76 ​ 1,700 Income before taxes ​ 33,955 ​ 36,578 ​ 86,566 ​ 90,177 Income tax provision ​ ( 9,215 ) ​ ( 9,519 ) ​ ( 23,556 ) ​ ( 23,803 ) Net income ​ $ 24,740 ​ $ 27,059 ​ $ 63,010 ​ $ 66,374 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings per common share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ $ 0.98 ​ $ 1.03 ​ $ 2.46 ​ $ 2.52 Diluted ​ $ 0.97 ​ $ 1.02 ​ $ 2.45 ​ $ 2.50 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Shares used in computation of earnings per common share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ 25,354 ​ 26,292 ​ 25,609 ​ 26,334 Diluted ​ 25,489 ​ 26,501 ​ 25,734 ​ 26,518 ​ ​ ​ See notes to unaudited condensed consolidated financial statements. 2 Table of Contents PC CONNECTION, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME (Unaudited) (amounts in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ 2025 2024 2025 2024 Net income ​ $ 24,740 ​ $ 27,059 ​ $ 63,010 ​ $ 66,374 Other comprehensive income (loss): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized gains (losses) on available-for-sale investments, net of tax of $( 36 ) and $ 24 for the three and nine months ended September 30, 2025, respectively, and net of tax of $( 154 ) and $( 105 ) for the three and nine months ended September 30, 2024, respectively ​ 138 ​ 580 ​ ( 89 ) ​ 396 Comprehensive income ​ $ 24,878 ​ $ 27,639 ​ $ 62,921 ​ $ 66,770 ​ ​ ​ ​ ​ See notes to unaudited condensed consolidated financial statements. 3 Table of Contents ​ ​ PC CONNECTION, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited) (amounts in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, 2025 ​ ​ Common Stock ​ Additional ​ Retained ​ Accumulated Other ​ Treasury Shares ​ ​ ​ ​ Shares Amount Paid-In Capital Earnings Comprehensive Income (Loss) Shares Amount Total Balance - June 30, 2025 29,438 ​ $ 294 ​ $ 141,406 ​ $ 868,016 $ ( 53 ) ( 4,042 ) ​ $ ( 124,843 ) ​ $ 884,820 Stock-based compensation expense — ​ — ​ 2,433 ​ — — — ​ — ​ 2,433 Restricted stock units vested 13 ​ 1 ​ ( 1 ) ​ — — — ​ — ​ — Shares withheld for taxes paid on stock awards — ​ — ​ ( 425 ) ​ — — — ​ — ​ ( 425 ) Repurchase of common stock for treasury — ​ — ​ — ​ — — ( 83 ) ​ ( 5,165 ) ​ ( 5,165 ) Dividend declaration ($ 0.15 per share) — ​ — ​ — ​ ( 3,799 ) — — ​ — ​ ( 3,799 ) Net income — ​ — ​ — ​ 24,740 — — ​ — ​ 24,740 Other comprehensive income, net of tax ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 138 ​ — ​ ​ — ​ ​ 138 Balance - September 30, 2025 29,451 ​ $ 295 ​ $ 143,413 ​ $ 888,957 $ 85 ( 4,125 ) ​ $ ( 130,008 ) ​ $ 902,742 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, 2024 ​ ​ Common Stock ​ Additional ​ Retained ​ Accumulated Other ​ Treasury Shares ​ ​ ​ ​ Shares Amount Paid-In Capital Earnings Comprehensive Income (Loss) Shares Amount Total Balance - June 30, 2024 29,294 ​ $ 293 ​ $ 134,967 ​ $ 794,942 $ ( 103 ) ( 2,962 ) ​ $ ( 55,171 ) ​ $ 874,928 Stock-based compensation expense ​ — ​ ​ — ​ ​ 1,999 ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ 1,999 Restricted stock units vested 16 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ — ​ ​ — ​ — Shares withheld for taxes paid on stock awards — ​ ​ — ​ ​ ( 640 ) ​ ​ — ​ ​ — ​ — ​ ​ — ​ ( 640 ) Repurchase of common stock for treasury — ​ — ​ — ​ — — ( 59 ) ​ ( 3,935 ) ​ ( 3,935 ) Dividend declaration ($ 0.10 per share) — ​ — ​ — ​ ( 2,629 ) — — ​ — ​ ( 2,629 ) Net income — ​ — ​ — ​ 27,059 — — ​ — ​ 27,059 Other comprehensive income, net of tax — ​ — ​ — ​ — 580 — ​ — ​ 580 Balance - September 30, 2024 29,310 ​ $ 293 ​ $ 136,326 ​ $ 819,372 $ 477 ( 3,021 ) ​ $ ( 59,106 ) ​ $ 897,362 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ See notes to unaudited condensed consolidated financial statements. 4 Table of Contents ​ ​ Nine Months Ended September 30, 2025 ​ ​ Common Stock ​ Additional ​ Retained ​ Accumulated Other ​ Treasury Shares ​ ​ ​ ​ Shares Amount Paid-In Capital Earnings Comprehensive Income (Loss) Shares Amount Total Balance - December 31, 2024 29,390 ​ $ 294 ​ $ 137,036 ​ $ 837,466 $ 174 ( 3,090 ) ​ $ ( 63,980 ) ​ $ 910,990 Stock-based compensation expense — ​ — ​ 7,102 ​ — — — ​ — ​ 7,102 Restricted stock units vested 51 ​ 1 ​ ( 1 ) ​ — — — ​ — ​ — Shares withheld for taxes paid on stock awards — ​ — ​ ( 1,343 ) ​ — — — ​ — ​ ( 1,343 ) Repurchase of common stock for treasury — ​ — ​ — ​ — — ( 1,035 ) ​ ( 66,028 ) ​ ( 66,028 ) Issuance of common stock under Employee Stock Purchase Plan 10 ​ — ​ 619 ​ ​ — ​ ​ — ​ — ​ ​ — ​ 619 Dividend declaration ($ 0.15 per share) — ​ — ​ — ​ ( 11,519 ) — — ​ — ​ ( 11,519 ) Net income — ​ — ​ — ​ 63,010 — — ​ — ​ 63,010 Other comprehensive loss, net of tax ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 89 ) ​ — ​ ​ — ​ ​ ( 89 ) Balance - September 30, 2025 29,451 ​ $ 295 ​ $ 143,413 ​ $ 888,957 $ 85 ( 4,125 ) ​ $ ( 130,008 ) ​ $ 902,742 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, 2024 ​ ​ Common Stock ​ Additional ​ Retained ​ Accumulated Other ​ Treasury Shares ​ ​ ​ ​ Shares Amount Paid-In Capital Earnings Comprehensive Income (Loss) Shares Amount Total Balance - December 31, 2023 29,262 ​ $ 293 ​ $ 130,878 ​ $ 760,898 ​ $ 81 ​ ( 2,902 ) ​ $ ( 51,383 ) ​ $ 840,767 Stock-based compensation expense ​ — ​ ​ — ​ ​ 6,196 ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ 6,196 Restricted stock units vested 39 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ — ​ ​ — ​ — Shares withheld for taxes paid on stock awards — ​ ​ — ​ ​ ( 1,285 ) ​ ​ — ​ ​ — ​ — ​ ​ — ​ ( 1,285 ) Repurchase of common stock for treasury — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ( 119 ) ​ ​ ( 7,723 ) ​ ( 7,723 ) Issuance of common stock under Employee Stock Purchase Plan 9 ​ — ​ 537 ​ — — — ​ — ​ 537 Dividend declaration ($ 0.10 per share) — ​ — ​ — ​ ( 7,900 ) — — ​ — ​ ( 7,900 ) Net income — ​ — ​ — ​ 66,374 — — ​ — ​ 66,374 Other comprehensive income, net of tax — ​ — ​ — ​ — 396 — ​ — ​ 396 Balance - September 30, 2024 29,310 ​ $ 293 ​ $ 136,326 ​ $ 819,372 $ 477 ( 3,021 ) ​ $ ( 59,106 ) ​ $ 897,362 ​ ​ See notes to unaudited condensed consolidated financial statements. 5 Table of Contents PC CONNECTION, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW S (Unaudited) (amounts in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended ​ ​ September 30, ​ 2025 2024 Cash Flows provided by Operating Activities: ​ ​ ​ ​ ​ ​ Net income ​ $ 63,010 ​ $ 66,374 Adjustments to reconcile net income to net cash provided by operating activities: ​ ​ ​ ​ ​ ​ Depreciation and amortization ​ 8,853 ​ 9,818 Adjustments to credit losses reserve ​ 1,233 ​ 830 Stock-based compensation expense ​ 7,102 ​ 6,196 Deferred income taxes ​ 3,185 ​ 2,434 Amortization of discount on short-term investments, net ​ ( 1,612 ) ​ ( 4,402 ) Gain on sale of short-term investments ​ ( 76 ) ​ — Loss on disposal of fixed assets ​ 30 ​ 49 Changes in assets and liabilities: ​ ​ ​ ​ ​ ​ Accounts receivable ​ ( 6,504 ) ​ 20,928 Inventories ​ ( 39,964 ) ​ 10,488 Prepaid expenses and other current assets ​ ( 4,854 ) ​ ( 3,405 ) Other non-current assets ​ ( 3,803 ) ​ 526 Accounts payable ​ 11,905 ​ 29,141 Accrued expenses and other liabilities ​ ( 485 ) ​ 9,643 Net cash provided by operating activities ​ 38,020 ​ 148,620 Cash Flows provided by (used in) Investing Activities: ​ ​ ​ ​ ​ ​ Purchases of short-term investments ​ ​ ( 155,574 ) ​ ​ ( 255,075 ) Proceeds from sale of short-term investments ​ ​ 108,763 ​ ​ — Maturities of short-term investments ​ ​ 101,328 ​ ​ 150,607 Purchases of property and equipment ​ ​ ( 5,201 ) ​ ​ ( 5,215 ) Net cash provided by (used in) investing activities ​ 49,316 ​ ( 109,683 ) Cash Flows used in Financing Activities: ​ ​ ​ ​ ​ ​ Proceeds from short-term borrowings ​ 732 ​ 25,204 Repayment of short-term borrowings ​ ​ ( 732 ) ​ ​ ( 25,204 ) Purchase of common stock for treasury shares ​ ( 65,530 ) ​ ( 7,732 ) Payments for excise tax on treasury purchases ​ ( 36 ) ​ — Dividend payments ​ ( 11,519 ) ​ ( 7,900 ) Issuance of stock under Employee Stock Purchase Plan ​ ​ 619 ​ ​ 537 Payment of payroll taxes on stock-based compensation through shares withheld ​ ( 1,343 ) ​ ( 1,285 ) Net cash used in financing activities ​ ( 77,809 ) ​ ( 16,380 ) Increase in cash and cash equivalents ​ 9,527 ​ 22,557 Cash and cash equivalents, beginning of period ​ 178,318 ​ 144,954 Cash and cash equivalents, end of period ​ $ 187,845 ​ $ 167,511 ​ ​ ​ ​ ​ ​ ​ Non-cash Investing and Financing Activities: ​ ​ ​ ​ ​ ​ Accrued purchases of property and equipment ​ $ 866 ​ $ 425 Accrued purchase of treasury shares ​ $ 123 ​ $ — Accrued excise tax on treasury purchases ​ $ 615 ​ $ 45 Supplemental Cash Flow Information: ​ ​ ​ ​ ​ ​ Income taxes paid ​ $ 24,837 ​ $ 24,533 Interest paid ​ $ — ​ $ 5 ​ ​ ​ ​ ​ See notes to unaudited condensed consolidated financial statements. 6 Table of Contents PC CONNECTION, INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENT S (Unaudited) (amounts in thousands, except per share data) Note 1– Basis of Presentation ​ The accompanying unaudited condensed consolidated financial statements of PC Connection, Inc. and its subsidiaries, or the Company, have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission, or SEC, regarding interim financial reporting and in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP. Such principles were applied on a basis consistent with the accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. ​ In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the results of operations for the interim periods reported and of the Company’s financial condition as of the date of the interim balance sheet. The Company considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. Subsequent events have been evaluated through the date of issuance of these financial statements. The operating results for the three and nine months ended September 30, 2025 may not be indicative of the results expected for any succeeding quarter or the entire year ending December 31, 2025. ​ Certain amounts in the prior period’s condensed consolidated financial statements have been reclassified to conform with the current period presentation. ​ Use of Estimates in the Preparation of Financial Statements ​ The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts and disclosures of assets and liabilities and the reported amounts and disclosures of revenue and expenses during the period. Management bases its estimates and judgments on the information available at the time and various other assumptions believed to be reasonable under the circumstances. By nature, estimates are subject to an inherent degree of uncertainty. Actual results could differ from those estimates and assumptions. ​ Cash and Cash Equivalents and Investments ​ The Company considers all highly liquid short-term investments with original maturities of 90 days or less to be cash equivalents. The carrying value of the Company’s cash equivalents approximates fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ​ At the time of purchase, the Company determines the appropriate classification of investments based upon its intent with regard to such investments. All of the Company’s investments are classified as available-for-sale. The Company classifies investments as short-term when their remaining contractual maturities are one year or less from the balance sheet date, and as long-term when the investment has a remaining contractual maturity of more than one year from the balance sheet date. The Company records investments at fair value with unrealized gains and losses recorded as a component of accumulated other comprehensive income on the condensed consolidated balance sheets. ​ Included in interest income, net on the condensed consolidated statements of income is interest income on cash equivalents and short-term investments of $ 3,689 and $ 10,706 for the three and nine months ended September 30, 2025, respectively, and $ 4,840 and $ 14,060 for the three and nine months ended September 30, 2024, respectively. ​ 7 Table of Contents Treasury Stock, at Cost ​ The total repurchases for the nine months ended September 30, 2025 and 2024 were recorded as treasury stock of $ 66,028 and $ 7,723 , respectively. Such costs reflect the applicable one percent excise tax imposed by the Inflation Reduction Act of 2022 on the net value of certain stock repurchases made after December 31, 2022. ​ Severance Expenses ​ The severance expenses recorded for the nine months ended September 30, 2025 and 2024 were related to involuntary reductions in the Company’s workforce to lower the Company’s cost structure and included cash severance and other related termination benefits. The majority of these costs are expected to be paid within a year of the applicable termination. Included in accrued expenses and other liabilities on the condensed consolidated balance sheets as of September 30, 2025 was $ 1,001 related to unpaid severance expenses. ​ Recently Issued Financial Accounting Standards ​ In December 2023, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This guidance is intended to improve the transparency of income tax disclosures through, among other things, enhancement of the disclosure requirements within the rate reconciliation, as well as increased income tax disaggregation disclosures. This ASU is effective for the Company’s annual reporting periods beginning January 1, 2025, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statement disclosures. ​ In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses . This guidance is intended to provide more detailed disclosure about certain costs and expenses presented in the income statement, including inventory purchases, employee compensation, selling expenses, and depreciation expense. This ASU is effective for the Company’s annual reporting periods beginning January 1, 2027, and for interim reporting periods beginning January 1, 2028, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements. ​ In July 2025, the FASB issued ASU 2025-05, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets . This guidance provides a practical expedient related to estimating expected credit losses for accounts receivable and contract assets by assuming that current conditions remain unchanged over the life of the asset. This ASU is effective for the Company’s annual reporting periods beginning January 1, 2026, and for interim reporting periods beginning January 1, 2027, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements. ​ In September 2025, the FASB issued ASU 2025-06, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software . This guidance was issued to establish new criteria to be considered for capitalization of software costs under Subtopic 350-40, as well as link the disclosure requirements of Subtopic 360-10 to capitalized costs accounted for under Subtopic 350-40. This ASU is effective for the Company’s annual reporting periods beginning January 1, 2028, and for interim reporting periods beginning January 1, 2029, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements. ​ Note 2–Revenue ​ The Company disaggregates revenue from its arrangements with customers by type of products and services, as it believes this method best depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. ​ 8 Table of Contents The following tables represent a disaggregation of revenue from arrangements with customers for the three months ended September 30, 2025 and 2024, along with the segment for each category (in thousands). ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, 2025 ​ Enterprise Solutions Business Solutions ​ Public Sector Solutions Total Notebooks/Mobility ​ $ 101,460 ​ $ 87,488 ​ $ 49,843 ​ $ 238,791 Desktops ​ ​ 42,120 ​ ​ 23,331 ​ ​ 14,735 ​ ​ 80,186 Software ​ ​ 35,183 ​ ​ 41,456 ​ ​ 18,490 ​ ​ 95,129 Servers/Storage ​ ​ 17,724 ​ ​ 23,139 ​ ​ 10,413 ​ ​ 51,276 Net/Com Products ​ ​ 19,825 ​ ​ 17,489 ​ ​ 9,449 ​ ​ 46,763 Displays and Sound ​ 29,748 ​ 21,191 ​ 11,885 ​ 62,824 Accessories ​ 48,693 ​ 24,385 ​ 9,334 ​ 82,412 Other Hardware/Services ​ 24,991 ​ 18,362 ​ 8,334 ​ 51,687 Total Net sales ​ $ 319,744 ​ $ 256,841 ​ $ 132,483 ​ $ 709,068 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, 2024 ​ Enterprise Solutions Business Solutions ​ Public Sector Solutions Total Notebooks/Mobility ​ $ 90,233 ​ $ 91,757 ​ $ 77,264 ​ $ 259,254 Desktops ​ ​ 44,846 ​ ​ 17,543 ​ ​ 15,193 ​ ​ 77,582 Software ​ ​ 29,847 ​ ​ 34,478 ​ ​ 21,706 ​ ​ 86,031 Servers/Storage ​ ​ 11,866 ​ ​ 23,106 ​ ​ 8,696 ​ ​ 43,668 Net/Com Products ​ ​ 24,530 ​ ​ 21,186 ​ ​ 10,340 ​ ​ 56,056 Displays and Sound ​ 38,316 ​ 20,682 ​ 15,981 ​ 74,979 Accessories ​ 35,962 ​ 27,020 ​ 16,978 ​ 79,960 Other Hardware/Services ​ 21,370 ​ 16,859 ​ 8,958 ​ 47,187 Total Net sales ​ $ 296,970 ​ $ 252,631 ​ $ 175,116 ​ $ 724,717 ​ The following tables represent a disaggregation of revenue from arrangements with customers for the nine months ended September 30, 2025 and 2024, along with the segment for each category (in thousands). ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, 2025 ​ Enterprise Solutions Business Solutions ​ Public Sector Solutions Total Notebooks/Mobility ​ $ 286,685 ​ $ 295,909 ​ $ 174,881 ​ $ 757,475 Desktops ​ ​ 153,305 ​ ​ 75,683 ​ ​ 44,614 ​ ​ 273,602 Software ​ ​ 92,017 ​ ​ 111,218 ​ ​ 34,863 ​ ​ 238,098 Servers/Storage ​ ​ 57,350 ​ ​ 77,556 ​ ​ 37,780 ​ ​ 172,686 Net/Com Products ​ ​ 61,612 ​ 55,000 ​ ​ 30,669 ​ 147,281 Displays and Sound ​ 82,812 ​ ​ 64,094 ​ 36,084 ​ ​ 182,990 Accessories ​ 132,642 ​ 72,560 ​ 35,067 ​ 240,269 Other Hardware/Services ​ 77,335 ​ 56,374 ​ 23,697 ​ 157,406 Total Net sales ​ $ 943,758 ​ $ 808,394 ​ $ 417,655 ​ $ 2,169,807 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, 2024 ​ Enterprise Solutions Business Solutions ​ Public Sector Solutions Total Notebooks/Mobility ​ $ 270,266 ​ $ 281,754 ​ $ 185,962 ​ $ 737,982 Desktops ​ ​ 135,563 ​ ​ 55,766 ​ ​ 36,732 ​ ​ 228,061 Software ​ ​ 78,595 ​ ​ 102,905 ​ ​ 36,827 ​ ​ 218,327 Servers/Storage ​ ​ 39,924 ​ ​ 78,773 ​ ​ 30,842 ​ 149,539 Net/Com Products ​ ​ 63,599 ​ ​ 62,876 ​ ​ 30,257 ​ 156,732 Displays and Sound ​ 106,845 ​ 62,415 ​ 43,329 ​ ​ 212,589 Accessories ​ 116,139 ​ 86,056 ​ 36,044 ​ ​ 238,239 Other Hardware/Services ​ 67,506 ​ 56,153 ​ 28,093 ​ 151,752 Total Net sales ​ $ 878,437 ​ $ 786,698 ​ $ 428,086 ​ $ 2,093,221 9 Table of Contents ​ Contract Balances ​ The following table provides information about contract liabilities from arrangements with customers as of September 30, 2025 and December 31, 2024 (in thousands). ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2025 December 31, 2024 Contract liabilities, which are included in accrued expenses and other liabilities ​ $ 7,803 ​ $ 10,290 ​ Changes in the contract liability balances during the nine months ended September 30, 2025 and 2024 are as follows (in thousands): ​ ​ ​ ​ ​ 2025 Balance at December 31, 2024 ​ $ 10,290 Cash received in advance and not recognized as revenue ​ 27,290 Amounts recognized as revenue as performance obligations satisfied ​ ( 29,777 ) Balance at September 30, 2025 ​ $ 7,803 ​ ​ ​ ​ ​ ​ 2024 Balance at December 31, 2023 ​ $ 4,206 Cash received in advance and not recognized as revenue ​ 18,544 Amounts recognized as revenue as performance obligations satisfied ​ ( 14,230 ) Balance at September 30, 2024 ​ $ 8,520 ​ ​ Note 3–Fair Value Measurements ​ Cash equivalents and short-term investments as of September 30, 2025 and December 31, 2024 consist of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2025 ​ Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash equivalents: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Money market funds ​ $ 166,318 ​ $ — ​ $ — ​ $ 166,318 Short-term investments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. Government treasury securities ​ ​ 211,245 ​ ​ 109 ​ ​ — ​ ​ 211,354 Total ​ $ 377,563 ​ $ 109 ​ $ — ​ $ 377,672 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2024 ​ Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash equivalents: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Money market funds ​ $ 161,094 ​ $ — ​ $ — ​ $ 161,094 Short-term investments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. Government treasury securities ​ ​ 264,074 ​ ​ 309 ​ ​ ( 88 ) ​ ​ 264,295 Total ​ $ 425,168 ​ $ 309 ​ $ ( 88 ) ​ $ 425,389 ​ Investments with maturities of 90 days or less from the date of purchase are classified as cash equivalents; investments with maturities of greater than 90 days from the date of purchase but less than one year are generally classified as short-term investments; and investments with maturities of one year or greater from the date of purchase are generally classified as long-term investments. All short-term investments had stated maturity dates of less than one year. The Company has recorded the securities at fair value on its condensed consolidated balance sheets and unrealized gains and losses are reported as a component of accumulated other comprehensive income. The amount of realized gains and losses reclassified into earnings and the related adjustments to deferred taxes are based on the specific identification of the securities sold or securities that reached maturity date. ​ 10 Table of Contents Fair Value ​ The Company measures certain financial assets at fair value. Fair value is determined based upon the exit price that would be received to sell an asset in an orderly transaction between market participants, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques are classified based on a three-level hierarchy, as follows: ​ ● Level 1 inputs: Quoted prices for identical assets or liabilities in active markets; ​ ● Level 2 inputs: Observable inputs other than those described as Level 1; and ​ ● Level 3 inputs: Unobservable inputs that are supported by little or no market activities and are based on significant assumptions and estimates. ​ As of September 30, 2025 and December 31, 2024, the fair values of the Company’s investments were all measured using level 1 inputs. ​ ​ Note 4–Earnings Per Share ​ Basic earnings per common share is computed using the weighted average number of shares outstanding. Diluted earnings per share is computed using the weighted average number of shares outstanding adjusted for the incremental shares attributable to non-vested stock units and stock options outstanding, if dilutive. ​ The following table sets forth the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2025 and 2024 (in thousands, except per share data): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ Nine Months Ended September 30, ​ 2025 2024 2025 2024 Numerator: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ​ $ 24,740 ​ $ 27,059 ​ $ 63,010 ​ $ 66,374 Denominator: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Denominator for basic earnings per share ​ $ 25,354 ​ $ 26,292 ​ $ 25,609 ​ $ 26,334 Dilutive effect of employee stock awards ​ 135 ​ 209 ​ 125 ​ 184 Denominator for diluted earnings per share ​ $ 25,489 ​ $ 26,501 ​ $ 25,734 ​ $ 26,518 Earnings per share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ $ 0.98 ​ $ 1.03 ​ $ 2.46 ​ $ 2.52 Diluted ​ $ 0.97 ​ $ 1.02 ​ $ 2.45 ​ $ 2.50 ​ For the three and nine months ended September 30, 2025 and 2024, the Company had no outstanding non-vested stock units that were excluded from the computation of diluted earnings per share because including them would have had an anti-dilutive effect. ​ 11 Table of Contents Note 5 – Leases ​ The Company leases certain facilities from a related party, which is a company affiliated with it through common ownership. The costs for these leases are presented within short-term lease cost in the below table. ​ As of September 30, 2025, there were no additional significant operating leases that have not yet commenced. Refer to the following table for quantitative information related to the Company’s leases for the three and nine months ended September 30, 2025 and 2024 (dollars in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, 2025 Nine Months Ended September 30, 2025 ​ Related Parties ​ Others ​ Total Related Parties ​ Others ​ Total Lease Cost ​ ​ ​ ​ ​ ​ ​ Capitalized operating lease cost ​ $ — ​ $ 461 ​ $ 461 ​ $ — ​ $ 1,383 ​ $ 1,383 ​ Short-term lease cost ​ 420 ​ 148 ​ 568 ​ 1,260 ​ 444 ​ 1,704 ​ Total lease cost ​ $ 420 ​ $ 609 ​ $ 1,029 ​ $ 1,260 ​ $ 1,827 ​ $ 3,087 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other Information ​ ​ ​ ​ ​ ​ ​ Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating cash flows ​ $ — ​ $ 516 ​ $ 516 ​ $ — ​ $ 1,541 ​ $ 1,541 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average remaining lease term (in years): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capitalized operating leases ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ — ​ ​ 1.47 ​ ​ 1.47 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average discount rate: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capitalized operating leases ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ — % ​ 4.33 % ​ 4.33 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, 2024 Nine Months Ended September 30, 2024 ​ ​ Related Parties ​ Others ​ Total Related Parties ​ Others ​ Total ​ Lease Cost ​ ​ ​ ​ ​ ​ ​ Capitalized operating lease cost ​ $ — ​ $ 501 ​ $ 501 ​ $ — ​ $ 1,445 ​ $ 1,445 ​ Short-term lease cost ​ 420 ​ 140 ​ 560 ​ 1,261 ​ 421 ​ 1,682 ​ Total lease cost ​ $ 420 ​ $ 641 ​ $ 1,061 ​ $ 1,261 ​ $ 1,866 ​ $ 3,127 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other Information ​ ​ ​ ​ ​ ​ ​ Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating cash flows ​ $ — ​ $ 550 ​ $ 550 ​ $ — ​ $ 1,527 ​ $ 1,527 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average remaining lease term (in years): ​ ​ ​ ​ ​ ​ ​ Capitalized operating leases ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ — ​ ​ 2.22 ​ ​ 2.22 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average discount rate: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capitalized operating leases ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ — % ​ 4.27 % ​ 4.27 % 12 Table of Contents ​ As of September 30, 2025, future lease payments over the remaining term of capitalized operating leases were as follows (in thousands): ​ ​ ​ ​ ​ For the Years Ended December 31, ​ ​ ​ 2025, excluding the nine months ended September 30, 2025 ​ $ 521 2026 ​ 1,205 2027 ​ 237 2028 ​ 161 2029 ​ ​ — Thereafter ​ ​ — ​ ​ ​ 2,124 Imputed interest ​ ​ ( 63 ) Lease liability balance at September 30, 2025 ​ $ 2,061 ​ As of September 30, 2025, the right-of-use, or ROU, asset had a balance of $ 1,781 . The long-term lease liability was $ 437 and the short-term lease liability, which is included in accrued expenses and other liabilities on the condensed consolidated balance sheets, was $ 1,624 . As of December 31, 2024, the ROU asset had a balance of $ 3,077 . The long-term lease liability was $ 1,552 and the short-term lease liability, which is included in accrued expenses and other liabilities on the condensed consolidated balance sheets, was $ 1,805 . ​ Note 6–Accumulated Other Comprehensive Income ​ Accumulated other comprehensive income, which is included as a component of stockholders’ equity, is comprised of unrealized gains and losses on short-term investments, net of tax. The changes in accumulated other comprehensive income were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ Nine Months Ended ​ ​ September 30, 2025 Balance - December 31, 2024 ​ $ 174 Other comprehensive income before reclassifications, net of tax ​ ​ 12 Less amounts reclassified from accumulated other comprehensive income, net of tax ​ 101 Net other comprehensive loss ​ ​ ( 89 ) Balance - September 30, 2025 ​ $ 85 ​ ​ ​ ​ ​ ​ Nine Months Ended ​ ​ September 30, 2024 Balance - December 31, 2023 ​ $ 81 Other comprehensive income before reclassifications, net of tax ​ ​ 477 Less amounts reclassified from accumulated other comprehensive income, net of tax ​ 81 Net other comprehensive income ​ ​ 396 Balance - September 30, 2024 ​ $ 477 ​ Included in amounts reclassified from accumulated other comprehensive income, net of tax for the nine months ended September 30, 2025 is $ 76 of realized gain, which is included in “Other income” on the unaudited condensed consolidated statements of income. ​ Note 7–Segment Information ​ The internal reporting structure used by the Company’s chief operating decision maker, or CODM, to assess performance and allocate resources determines the basis for the Company’s operating segments. The Company’s operations are organized under three reporting segments—the Enterprise Solutions segment, which serves primarily medium-to-large corporations; the Business Solutions segment, which serves primarily small- to medium-sized businesses; and the Public Sector Solutions segment, which serves primarily federal, state, and local government and educational institutions. In addition, the Headquarters/Other provides services in areas such as finance, human resources, IT, marketing, and product management. Most of the operating costs associated with the Headquarters/Other functions are charged to the operating segments based on their estimated usage of the underlying functions. The Company reports 13 Table of Contents these charges to the operating segments as “Allocations”. Headquarters/Other amounts that are not allocated to the operating segments are shown as reconciling items in the tables below. ​ The Company’s CODM is its Chief Executive Officer, and he assesses the segments’ performance by using each segments’ operating income (which includes certain corporate overhead allocations attributable to each of the segments). Net sales presented below exclude inter-segment product revenues. The CODM uses operating income for each segment in the annual budget, periodic forecasting, and quarterly results processes. ​ Segment information applicable to the Company’s operating segments and the related reconciliations to consolidated amounts for the three and nine months ended September 30, 2025 and 2024 are shown below (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, 2025 ​ ​ Enterprise Solutions Business Solutions ​ Public Sector Solutions Total Net sales $ 319,744 ​ $ 256,841 ​ $ 132,483 ​ $ 709,068 Cost of sales ​ 271,976 ​ 188,779 ​ 109,668 ​ ​ ​ Personnel costs ​ 16,626 ​ 17,490 ​ 9,603 ​ ​ ​ Marketing ​ ​ 895 ​ ​ 2,724 ​ ​ 675 ​ ​ ​ Allocated corporate overhead ​ ​ 18,999 ​ ​ 22,822 ​ ​ 11,410 ​ ​ ​ Depreciation and amortization ​ ​ 195 ​ ​ 155 ​ ​ 22 ​ ​ ​ Other segment expenses 1 ​ ​ 670 ​ ​ 1,165 ​ ​ 1,730 ​ ​ ​ Operating income (loss) ​ $ 10,383 ​ $ 23,706 ​ $ ( 625 ) ​ $ 33,464 Unallocated Headquarters/Other expenses ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ( 3,198 ) Interest income, net ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 3,689 Income before taxes ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 33,955 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, 2024 ​ ​ Enterprise Solutions Business Solutions ​ Public Sector Solutions Total Net sales $ 296,970 ​ $ 252,631 ​ $ 175,116 ​ $ 724,717 Cost of sales ​ 250,753 ​ 189,498 ​ 149,060 ​ ​ ​ Personnel costs ​ 15,781 ​ 17,343 ​ 9,794 ​ ​ ​ Marketing ​ ​ 1,228 ​ ​ 4,178 ​ ​ 739 ​ ​ ​ Allocated corporate overhead ​ ​ 17,767 ​ ​ 20,003 ​ ​ 10,001 ​ ​ ​ Depreciation and amortization ​ ​ 215 ​ ​ 155 ​ ​ 22 ​ ​ ​ Other segment expenses 1 ​ ​ 946 ​ ​ 1,389 ​ ​ 1,158 ​ ​ ​ Operating income ​ $ 10,280 ​ $ 20,065 ​ $ 4,342 ​ $ 34,687 Unallocated Headquarters/Other expenses ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ( 4,646 ) Interest income, net ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 4,837 Other income ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1,700 Income before taxes ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 36,578 ​ 1) Other segment expenses for each of the reportable segments include service contracts/subscriptions, professional fees, facilities operations, credit card fees, and other miscellaneous expenses. 14 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, 2025 ​ ​ Enterprise Solutions Business Solutions ​ Public Sector Solutions Total Net sales $ 943,758 ​ $ 808,394 ​ $ 417,655 ​ $ 2,169,807 Cost of sales ​ 806,070 ​ 606,076 ​ 353,939 ​ ​ ​ Personnel costs ​ 49,791 ​ 52,927 ​ 28,462 ​ ​ ​ Marketing ​ ​ 3,779 ​ ​ 10,127 ​ ​ 2,334 ​ ​ ​ Allocated corporate overhead ​ ​ 55,358 ​ ​ 65,819 ​ ​ 32,909 ​ ​ ​ Depreciation and amortization ​ ​ 582 ​ ​ 465 ​ ​ 67 ​ ​ ​ Other segment expenses 1 ​ ​ 2,947 ​ ​ 5,293 ​ ​ 6,043 ​ ​ ​ Operating income (loss) ​ $ 25,231 ​ $ 67,687 ​ $ ( 6,099 ) ​ $ 86,819 Unallocated Headquarters/Other expenses ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ( 11,134 ) Interest income, net ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 10,805 Other income ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 76 Income before taxes ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 86,566 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Segment assets ​ $ 743,554 ​ $ 620,098 ​ $ 94,832 ​ $ 1,458,484 Headquarters/Other assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ( 152,964 ) Consolidated assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 1,305,520 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, 2024 ​ ​ Enterprise Solutions Business Solutions ​ Public Sector Solutions Total Net sales $ 878,437 ​ $ 786,698 ​ $ 428,086 ​ $ 2,093,221 Cost of sales ​ 743,441 ​ 596,875 ​ 362,885 ​ ​ ​ Personnel costs ​ 46,596 ​ 53,430 ​ 27,455 ​ ​ ​ Marketing ​ ​ 3,872 ​ ​ 12,180 ​ ​ 2,734 ​ ​ ​ Allocated corporate overhead ​ ​ 54,582 ​ ​ 61,200 ​ ​ 30,600 ​ ​ ​ Depreciation and amortization ​ ​ 641 ​ ​ 465 ​ ​ 68 ​ ​ ​ Other segment expenses 1 ​ ​ 2,948 ​ ​ 4,465 ​ ​ 2,638 ​ ​ ​ Operating income ​ $ 26,357 ​ $ 58,083 ​ $ 1,706 ​ $ 86,146 Unallocated Headquarters/Other expenses ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ( 11,722 ) Interest income, net ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 14,053 Other income ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1,700 Income before taxes ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 90,177 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Segment assets ​ $ 717,143 ​ $ 553,881 ​ $ 117,728 ​ $ 1,388,752 Headquarters/Other assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ( 103,007 ) Consolidated assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 1,285,745 ​ 1) Other segment expenses for each of the reportable segments include service contracts/subscriptions, professional fees, facilities operations, credit card fees, and other miscellaneous expenses . ​ The assets of the Company’s three operating segments presented above consist primarily of accounts receivable, net intercompany receivables, goodwill, and other intangibles, net. Assets reported under the Headquarters/Other are managed by corporate headquarters, including cash and cash equivalents, short-term investments, inventories, property and equipment, ROU assets, and intercompany balance, net. As of September 30, 2025 and 2024, total assets for the Headquarters/Other were presented net of intercompany balance eliminations of $ 51,204 and $64,994 , respectively. The Company’s capital expenditures consist largely of IT hardware and software purchased to maintain or upgrade its management information systems. These information systems serve all of the Company’s segments, to varying degrees, and accordingly, the CODM does not evaluate capital expenditures on a segment-by-segment basis. ​ 15 Table of Contents Note 8–Commitments and Contingencies ​ The Company is subject to various legal proceedings and claims, which have arisen during the ordinary course of business. The outcomes of such matters are not expected to have a material, adverse effect on the Company’s financial position, results of operations, and/or cash flows. ​ The Company is subject to audits by states on sales and income taxes, employment matters, and other assessments. Additional liabilities for these and other audits could be assessed, but such outcomes are not expected to have a material, adverse impact on the Company’s financial position, results of operations, and/or cash flows. ​ Note 9–Bank Borrowings ​ The Company previously had a $ 50,000 credit facility collateralized by its account receivables that expired March 31, 2025 that the Company elected not to renew or replace. Amounts outstanding under the credit facility bore interest at the daily Bloomberg Short-Term Bank Yield Index, or BSBY Rate, plus a spread based on the Company’s funded debt ratio, or in the absence of BSBY Rate, the prime rate ( 7.50 % at March 31, 2025). ​ Cash receipts were automatically applied against any outstanding borrowings. During the nine months ended September 30, 2025 and 2024, the Company borrowed incremental amounts that were each repaid in full. These borrowings for the nine months ended September 30, 2025 and 2024 totaled $ 732 and $ 25,204 , respectively; however, at no time were the outstanding borrowings greater than the $ 50,000 limit under the credit facility. The Company had no outstanding borrowings under the credit facility immediately prior to the expiration of the credit facility, or as of September 30, 2024. ​ Note 10–Supplier Finance Programs ​ The Company has agreements with third-party financial institutions, instituted by request of participating suppliers, that allow for the ability to finance payment obligations from the Company. The third-party financial institutions have separate arrangements with the Company’s suppliers and provide them with the option to request early payment for invoices confirmed by the Company. The Company does not determine the terms or conditions of the arrangements between the third-parties and its suppliers and receives no compensation from the third-party financial institutions. The Company’s obligation to its suppliers, including amounts due and scheduled payment dates, are not impacted by the suppliers’ decisions to finance amounts under the arrangements. The payment terms under these arrangements are typical with industry standards and range from 30 to 50 days . The agreements with the financial institutions are collateralized by the inventory purchased through the financing agreements. The Company’s outstanding payment obligations under the supplier finance programs, which are included in accounts payable on the condensed consolidated balance sheets, were $ 59,981 and $ 47,763 at September 30, 2025 and December 31, 2024, respectively. The rollforward of the Company’s outstanding obligations confirmed as valid under the supplier finance programs for the nine months ended September 30, 2025 is as follows (in thousands): ​ ​ ​ ​ ​ ​ 2025 Confirmed obligations outstanding at December 31, 2024 ​ $ 47,763 Invoices confirmed ​ 366,871 Confirmed invoices paid ​ ( 354,653 ) Confirmed obligations outstanding at September 30, 2025 ​ $ 59,981 ​ ​ ​ ​ ​ 16 Table of Contents