What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2026-02-24 compared with 2025-02-24 · 57 added, 62 removed, 325 unchanged (27% of the section changed)

We are a Fortune 1000 Global Solutions Provider that simplifies the IT customer experience, guiding the connection between people and technology.

We are a Fortune 1000 Global Solutions Provider that simplifies IT, guiding the connection between people and technology.

Our dedicated account managers partner with customers to design, deploy, and support cutting-edge IT environments using the latest hardware, software, and services.

We provide a wide range of IT solutions, from the desktop to the cloud—including computer systems, data center solutions, software and peripheral equipment, networking communications, and other products and accessories that we purchase from manufacturers, distributors, and other suppliers.

Our Technology Solutions Organization, or TSO, and state-of-the-art Technology Integration and Distribution Center, or TIDC, with ISO 9001:2015 certified technical configuration lab, offer end-to-end services related to the design, configuration, and implementation of IT solutions.

We provide a wide range of IT solutions, from the desktop to the cloud—including computer systems, data center solutions, security, artificial intelligence, or AI, software and peripheral equipment, networking communications, and other products and accessories that we develop internally and secure from manufacturers, distributors, and other suppliers.

Our Technology Solutions and Services Organization, or TSSO, and state-of-the-art ISO 9001:2015 SOC 2 Type 2 certified Technology Integration and Distribution Center, or TIDC, offer end-to-end services related to the design, configuration, and implementation of IT solutions.

Our team also provides a comprehensive portfolio of managed services and professional services.

8 unchanged sentences

Financial results for each of our segments are included in the financial statements attached hereto.

We generate sales through (i) outbound inside sales and field sales contacts by sales representatives focused on the business, educational, healthcare, retail, manufacturing, and government markets, (ii) our websites, and (iii) direct responses from customers responding to our advertising media.

We offer a broad selection of over 460,000 products at competitive prices, including products from vendors like Apple, Cisco, Dell Inc., Hewlett-Packard Inc., Hewlett-Packard Enterprise, Intel, Lenovo, Microsoft Corporation, and VMware, and we partner with more than 2,500 suppliers.

We offer a broad selection of over 460,000 products at competitive prices, including products from vendors like Apple, Cisco, Dell Inc., HP Inc., Hewlett-Packard Enterprise, Intel, Lenovo, Microsoft Corporation, and VMware by Broadcom, and we partner with more than 1,600 suppliers.

We are able to leverage our state-of-the art logistic capabilities to rapidly ship product to customers.

Since our founding in 1982, we have consistently served our customers’ needs by providing innovative, reliable, and timely service and technical support, and by offering an extensive assortment of industry-leading products through knowledgeable, well-trained sales and support teams.

Our strategy’s effectiveness is reflected in the recognition we have received, including being named to the Fortune 1000 and the CRN Solution Provider 500 for twenty-four straight years.

In recent years, we have received numerous awards, including HP U.S.

Personal Systems 2024 National Solutions Provider Partner of the Year;

Dell Technologies 2024 Federal Rising Star Partner of the Year;

and ServiceNow 2024 Americas Reseller Partner of the Year.

In addition to being named to the CRN Tech Elite 250, Connection has twice been recognized as one of “America’s Best-in-State Employers” by Forbes, honored as a Gold NH Veteran Friendly Business by the Department of Military Affairs & Veterans Services and NH Employment Security, and earned distinction as one of the “Most Trustworthy Companies in America” by Newsweek for the past three years.

Connection made its debut on Newsweek’s ranking of “World’s Most Trustworthy Companies” in 2024.

Our technical experts hold more than 5,000 professional certifications, and we have been awarded industry-leading partner authorizations, including Microsoft Azure Expert Managed Service Provider status.

We believe this pursuit of excellence and our ability to understand our customers’ needs and provide comprehensive and effective IT solutions has earned us strong brand name recognition and a broad and loyal customer base.

We also believe that through our strong vendor relationships we can provide an efficient supply chain and be an effective IT solution provider for our diverse customer base.

We strive to identify the unique needs of our corporate, government, educational, and small business customers, and have designed our business processes to enable our customers to effectively manage their IT systems.

2 unchanged sentences

Sales representatives are responsible for managing enterprise, commercial, and public sector accounts, as specialization and a deep understanding of unique customer environments are more important than ever.

These sales representatives focus on current and prospective customers and are supported by an increasing number of engineering, technical, and administrative staff through our TSO.

These sales representatives focus on current and prospective customers and are supported by an increasing number of engineering, technical, and administrative staff through our TSSO.

Our Industry Solutions Group, or ISG, provides our sales team and customers with insights and guidance customized to the unique needs of our vertical markets, including healthcare, retail, finance, and manufacturing.

We believe that increasing our sales force productivity is important to our future success, and we have increased our headcount and investments in our sales and sales support teams accordingly.

We believe that increasing our sales force productivity is important to our future success.

We market our products and services through our websites:

www.connection.com, www.connection.com/enterprise , www.connection.com /publicsector, www.cnxnhelix.com , and www.macconnection.com .

www.connection.com, www.connection.com/enterprise , www.connection.com /publicsector, and www.cnxnhelix.com .

Our websites provide extensive product information, customized pricing, rich content, and a digital platform for online orders.

14 unchanged sentences

BUSINESS STRATEGIES

productivity, mobility, virtualization, and security needs in a continuously evolving IT environment.

We believe that we have become our customers’ IT provider of choice by calming the confusion surrounding IT procurement and solving complex business challenges with innovative IT solutions designed to meet their increased productivity, mobility, virtualization, and security needs in a continuously evolving IT environment.

We offer our customers enhanced value by assisting them with both the design and implementation of IT solutions directed at cost-effectively maximizing the business opportunities created by new technologies and advanced service solutions.

6 unchanged sentences

● Offering a broad product selection at competitive prices .

We offer a broad range of IT products and solutions, including personal computers and related peripheral products, servers, storage, managed services, cloud solutions, and networking infrastructure, at costs that are designed to allow our customers to be more productive while maximizing their IT budgets.

We offer a broad range of IT products and solutions, including personal computers and related peripheral products, servers, storage, managed services, cloud

solutions, and networking infrastructure, at costs that are designed to allow our customers to be more productive while maximizing their IT budgets.

Our integrated and advanced solution offerings include network, server, storage, and mission-critical onsite installation and support using proprietary cloud-based service management software.

7 unchanged sentences

data and automation, workplace transformation, cloud, cybersecurity, and technology services.

Our TSO is responsible for understanding the infrastructure needs of our customers, and for designing cost-effective technology solutions to address them.

Our TSSO is responsible for understanding the infrastructure needs of our customers, and for designing cost-effective technology solutions to address them.

We have also partnered with third-party providers to make available a range of IT support services, including asset assessment, implementation, maintenance, and disposal services.

2 unchanged sentences

Since our founding in 1982, we have built a strong brand name and customer awareness.

We have been named to the Fortune 1000 and the CRN Solution Provider 500 for each of the last twenty-four years.

We have been named to the Fortune 1000 and the CRN Solution Provider 500 for each of the last twenty-five years.

We actively work with our existing customers to become their IT provider of choice for products and enhanced solution services, while seeking to ensure our reputation of high-quality support, tailored marketing programs, and competitive pricing that lead the way to expanding our share of the overall IT market we serve.

15 unchanged sentences

Our cloud, cybersecurity, data center, workplace transformation, and technology services teams consist of industry-certified and product-certified engineers, as well as highly specialized third-party providers.

We believe our investment in these areas may increase our share of our existing customers’ annual IT expenditures by broadening the range of products and services they purchase from us.

● Delivering artificial intelligence, or AI, and automation solutions.

We believe our

investment in these areas may increase our share of our existing customers’ annual IT expenditures by broadening the range of products and services they purchase from us.

● Delivering AI and automation solutions.

We believe that the AI services we offer can be deployed in tailored, efficient, and cost-effective manners to drive our clients’ success.

17 unchanged sentences

We plan to expand our cloud-based solution sales and assist our customers in navigating the complex and growing field of multicloud-solution offerings.

This focus on cloud includes investing in the training and certification resources required to help our customers adopt and

optimize cloud technologies.

This focus on cloud includes investing in the training and certification resources required to help our customers adopt and optimize cloud technologies.

Connection is a Microsoft Azure Expert Managed Service Provider—an exclusive designation that requires an intensive auditing process and a proven record of delivering exceptional customer service and in-depth technical expertise around core cloud competencies.

5 unchanged sentences

We invest in training programs for our service and support personnel, with an emphasis on putting customer needs and service first.

Supplementing our sales force, our TSO offers in-depth technical support across a wide range of advanced technology solutions.

Supplementing our sales force, our TSSO offers in-depth technical support across a wide range of advanced technology solutions.

These teams of engineers and solution architects design end-to-end IT solutions tailored to our customers’ unique environments and serve as technology consultants.

10 unchanged sentences

MARKETING AND SALES

We sell our products through our direct marketing channels to (i) SMBs including small office/home office customers, (ii) government and educational institutions, and (iii) medium-to-large businesses.

We sell our solutions through our direct marketing channels to (i) SMBs including small office/home office customers, (ii) government and educational institutions, and (iii) medium-to-large businesses.

We strive to be the primary supplier of IT products and solutions to our customers by providing exemplary customer service.

1 unchanged sentence

● outbound inside sales and field sales;

● digital, web, and print media advertising;

● targeted marketing programs to specific customer populations.

All of our marketing approaches emphasize our broad product offerings, fast delivery, customer support, competitive pricing, and our wide range of service solutions.

● digital and web advertising;

● targeted marketing programs to specific market segments.

All of our marketing approaches emphasize our innovative solution offerings, fast delivery, customer support, competitive pricing, and our wide range of services.

Sales Channels.

9 unchanged sentences

We generally provide product descriptions and prices for all of the products we offer through the e-commerce websites we maintain and operate.

Our Connection website also provides updated information for more than 460,000 items.

Our Connection website also provides updated information for more

than 460,000 items.

We offer, and continuously update, selected product offerings and other special buys.

17 unchanged sentences

Business Solutions Segment .

Our principal target markets in this segment are small to medium-sized business customers.

Our principal target markets in this segment are SMB customers.

We use a combination of outbound inside sales, including some on-site sales solicitation by business development managers, and Internet sales through customized Internet Business Accounts, to reach these customers.

Public Sector Solutions Segment .

We use a combination of outbound inside sales, including some on-site sales solicitation by business development managers, and Internet sales through customized Internet Business Accounts, to

reach these customers.

We target each of the four distinct market sectors within this segment—federal government, higher educational institutions, school grades K-12, and state and local governments.

6 unchanged sentences

Our ISG works across all operating segments to service the unique needs of healthcare, retail, finance, and manufacturing customers.

Within each of these vertical markets, our ISG experts offer technology solutions and guidance backed by real-world experience.

Within each of these vertical markets, our ISG experts offer technology solutions and

guidance backed by real-world experience.

Our ISG combines extensive knowledge of the latest technologies, brands, and trends with industry experience that reassures our customers that we understand their businesses and their technology challenges.

14 unchanged sentences

These products consist of hardware, including devices, peripherals, accessories, servers, storage, and networking products, along with cloud solutions, software and services.

We select the products and solutions we sell based upon their technology and

effectiveness, market demand, product features, quality, price, margins, and warranties.

We select the products and solutions we sell based upon their technology and effectiveness, market demand, product features, quality, price, margins, and warranties.

The following table sets forth our percentage of net sales for major product categories for the periods presented:

10 unchanged sentences

PURCHASING AND VENDOR RELATIONS

Product purchases from TD Synnex Corporation, Ingram Micro, Inc., and Microsoft Corporation accounted for approximately 25%, 21%, and 13%, respectively, of our total product purchases in 2025.

Product purchases from Ingram Micro, Inc., TD Synnex Corporation, and Dell Inc.

1 unchanged sentence

Product purchases from Ingram Micro, Inc., TD Synnex Corporation, and Microsoft Corporation accounted for approximately 21%, 19%, and 11%, respectively, of our total product purchases in 2023.

Product purchases from Ingram Micro, Inc., TD Synnex Corporation, and Dell Inc.

accounted for approximately 23%, 22%, and 15%, respectively, of our total product purchases in 2022.

No other singular vendor supplied more than 10% of our total product purchases in 2025, 2024, and 2023, as applicable.

We believe that, while we may experience some short-term disruption if products from Ingram Micro, Inc., TD Synnex Corporation, Dell Inc., Microsoft Corporation, or any of these vendors become unavailable to us, alternative sources are available.

believe that, while we may experience some short-term disruption if products from TD Synnex Corporation, Ingram Micro, Inc., Microsoft Corporation, Dell Inc., or any of these vendors become unavailable to us, alternative sources are available.

Products manufactured by Microsoft Corporation, HP Inc., and Dell Inc.

2 unchanged sentences

represented approximately 15%, 12%, and 12%, respectively, of our total product purchases in 2024.

Products manufactured by HP Inc., Dell Inc., Microsoft Corporation, and Lenovo represented approximately 14%, 13%, 12%, and 11% of our total product purchases in 2022.

Products manufactured by Microsoft Corporation, HP Inc., and Dell Inc.

represented approximately 15%, 13%, and 11%, respectively, of our total product purchases in 2023.

No other singular product manufacturer produced more than 10% of our total product purchases in 2025, 2024, and 2023, as applicable.

1 unchanged sentence

products, such disruption would likely have a material adverse effect on our results of operations and cash flows.

Throughout the year, we did not experience any significant challenges or disruptions in the supply chain and products were generally available in adequate supply.

Throughout the majority of the year, we did not experience any significant challenges or disruptions in the supply chain and products were generally available in adequate supply.

Towards the end of the year, a global memory (DRAM and NAND) shortage developed throughout the industry due to high demand from AI solutions.

This is expected to extend into 2026.

The business impact is yet to be determined.

Many product suppliers reimburse us for advertisements or other cooperative marketing programs through various marketing vehicles.

9 unchanged sentences

At our 268,000 square foot technology TIDC in Wilmington, Ohio, we receive and ship inventory, configure and integrate technology solutions, provide depot maintenance and services, and process returned products.

The TIDC features a state-of-the-art ISO 9001:2015-certified Configuration Lab that completed more than 550,000 custom configurations in 2024—including personal computing devices, servers, mobile devices, and networking hardware.

The ISO 9001:2015 SOC 2 Type 2 certified TIDC features a state-of-the-art Configuration Lab that completed more than 550,000 custom configurations in 2025—including personal computing devices, servers, mobile devices, and networking hardware.

Our technicians maintain extensive certifications and authorizations from all major manufacturers, with more than 90% of the TIDC technicians holding one or more CompTIA certifications.

6 unchanged sentences

Our subsidiaries utilize management information systems which have been significantly customized for our use.

These systems permit centralized management of key functions, including order taking and processing, inventory and accounts receivable management, purchasing, sales, and distribution, and the preparation of daily operating control reports on key aspects of the business.

reports on key aspects of the business.

We also operate advanced telecommunications equipment to support our sales and customer service operations.

7 unchanged sentences

● certain product manufacturers that sell directly to customers as well as some of our own suppliers, such as Apple, Dell Inc., HP Inc., and Lenovo;

● software publishers, such as Microsoft Corporation, VMware, and Adobe;

● software publishers, such as Microsoft Corporation, VMware by Broadcom, and Adobe;

● companies that develop and deliver on bespoke AI projects, such as Palantir and Scale.ai;

11 unchanged sentences

INTELLECTUAL PROPERTY RIGHTS

Our trademarks include, among others, Connection®, PC Connection®, GovConnection®, MacConnection®, we solve IT®, Everything Overnight®, Mobile Connection®, Cloud Connection®, Education Connection®, MoreDirect™, CNXN Helix™, WebSPOC®, Softmart®, GlobalServe®, Raccoon Character, Connection Cloud MarkITplace™, ConnectOne™, QaaM™, and their related logos and all iterations thereof.

CNXN Helix™, WebSPOC®, Softmart®, GlobalServe®, Raccoon Character, Connection Cloud MarkITplace™, ConnectONE™, ConnectNOW™, OneSource™, Quality-as-a-Mindset™, QaaM™, WE SOLVE AI™, and their related logos and all iterations thereof.

We intend to use and protect these and our other marks, as we deem necessary.

34 unchanged sentences

Our Public Sector Solutions is also subject to oversight by the U.S.

Office of Federal Contract Compliance Programs, or OFCCP, for federal contract and affirmative action compliance, including the following areas:

● affirmative action plans;

Office of Federal Contract Compliance Programs, or OFCCP, for federal contract compliance, including the following areas:

● applicant tracking;

● compliance training;

● customized affirmative action databases and forms;

● customized databases and forms;

● glass ceiling and compensation audits;

2 unchanged sentences

● disability accessibility for applicants and employees;

● diversity initiatives;

● equal employment opportunity compliance;

● employment eligibility verification (known as “E-Verify”);

● internal affirmative action audits;

● internet recruiting and hiring processes;

9 unchanged sentences

federal government generally has the ability to terminate contracts, in whole or in part, with little or no prior notice, for convenience or for default based upon performance.

In the event of termination of a contract for convenience, a contractor is normally able to recover costs already incurred on the contract and profit on those costs up to the amount authorized under the contract, but not the remaining profit that would have been earned had the contract been completed.

been completed.

Such a termination could also result in the cancellation of future work on a related contract.

8 unchanged sentences

In the United States, numerous federal and state laws and regulations, including data breach notification laws and federal and state consumer protection laws and regulations, that govern the collection, use, disclosure, and protection of personal information could apply to our operations or the operations of our partners.

In addition, certain state and non-US laws, such as the California Consumer Privacy Act and the California Privacy Rights Act govern the privacy and security of personal information, many of which differ from each other in significant ways and may not have the same effect, thus

complicating compliance efforts.

Failure to comply with these laws, where applicable, can result in the imposition of significant civil and/or criminal penalties and private litigation.

2 unchanged sentences

Our culture is reflected through our employees, who are driven to serve our customers, our partners, our communities and all of our stakeholders.

We provide our employees with support, training, and engagement opportunities to build stronger and more diverse teams.

We provide our employees with support, training, and engagement opportunities to build stronger and more inclusive teams.

Our culture—and the employees who share that culture with our customers and communities—are essential to our success and our ability to attract and retain top talent.

Our Connection Cares initiative, launched in 2021, builds on the company’s long history of inclusivity and social responsibility with working groups focused on key areas:

employee recognition, charitable giving, sustainability, and diversity, equity, and inclusion.

employee recognition;

charitable giving;

sustainability;

and cultivating a welcoming, accepting, and fair workplace.

Employees volunteer within these groups to share their ideas, conduct company-wide campaigns, and make a positive impact throughout the company and our wider community.

7 unchanged sentences

We further align our sales representatives’ compensation to their individual performance by providing excellent commission opportunities.

We provide a comprehensive benefits package to our employees, including medical coverage, retirement plans with matching contributions, tuition assistance, inclusive parental leave policies, adoption assistance, paid time off, paid volunteer hours, and wellness hours.

We provide a comprehensive benefits package to our employees, including medical

coverage, retirement plans with matching contributions, tuition assistance, inclusive parental leave policies, adoption assistance, paid time off, paid volunteer hours, and wellness hours.

● Oversight and Management.

Our Board of Directors understands the importance of our inclusive, performance-driven culture to our ongoing success and is actively engaged with our President and Chief Executive Officer and our Senior Vice President of Human Resources across a broad range of human capital management topics.

Our Board of Directors understands the importance of our inclusive, performance-driven culture to our ongoing success and is actively engaged with our President and Chief Executive Officer and our Vice President of Legal Services & Administration across a broad range of human capital management topics.

As of December 31, 2025, we employed 2,525 persons (full-time equivalent), of whom 999 (including 320 management and support personnel) were engaged in sales-related activities, 444 were engaged in providing IT services and customer service and support, 665 were engaged in purchasing, marketing, and distribution-related activities, 210 were engaged in the operation and development of management information systems, and 207 were engaged in administrative and finance functions.

2 unchanged sentences

AVAILABLE INFORMATION

We are subject to the informational requirements of the Securities Exchange Act of 1934 (the “Exchange Act”), and accordingly, we file reports, proxy and information statements, and other information with the Securities and Exchange Commission, or SEC.

We are subject to the informational requirements of the Securities Exchange Act of 1934, or the Exchange Act, and accordingly, we file reports, proxy and information statements, and other information with the Securities and Exchange Commission, or SEC.

The SEC maintains a website ( http://www.sec.gov ) that contains such reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC.

6 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business