CNXNPC CONNECTION INC

Wholesale-Computers & Peripheral Equipment & Software

Revenue: $2.9B; 2.5% YoY
Operating margin: 3.5%; 0.2% YoY
EBITDA: $110M; 0.9% YoY
Market cap: $2.2B
Employees: —
Net debt / EBITDA: —
AI in 10-K: 10.7; mentions per 10K words

Takeover score 4 of 13

Fixable underperformance 2 of 7

TSR below peersNo
—
3+ of last 5 years
High CEO pay despite TSRNo
—
Median CEO pay ≥ $15M while TSR trails
Earnings not backed by cashYes
78% of net income
Cash flow under 80% of net income
Dilutive SBCNo
0% of revenue
Over 10% of revenue
Payouts exceed cash flowYes
140% of cash flow
Buybacks + dividends over cash flow
Goodwill-heavyNo
5% of assets
Over 40% of assets
Shareholder dissentNo
85% lowest support
Any vote under 80% support

Buyer economics 1 of 4

Low revenue per employeeNo
—
Bottom quartile of its SIC industry
Quiet on AINo
10.7 per 10K words · 93rd pct
Bottom quartile of AI mentions in 10-Ks
Net cashNo
—
More cash than debt, positive EBITDA
Buyout-sizedYes
$2.2B market cap
Market cap $500M–$5B

Catalysts 1 of 2

Active 13DNo
0 filings
Active-intent 13D in 18 months
Net insider sellingYes
−$18M net
Net sales over $10M in 12 months

Financials

Metric	FY2021	FY2022	FY2023	FY2024	FY2025	YoY	Trend
Revenue	$2.9B	$3.1B	$2.9B	$2.8B	$2.9B	2.5%
Operating income	$97M	$121M	$103M	$97M	$99M	2.3%
Net income	$70M	$89M	$83M	$87M	$84M	3.9%
Operating cash flow	$58M	$35M	$198M	$174M	$65M	62%
Capex	—	—	$10M	$8M	$7M	2.5%
Stock-based comp	$4M	$6M	$7M	$8M	$9M	10%
Buybacks	—	—	$5M	$12M	$76M	516%
Dividends	$26M	$9M	$8M	$11M	$15M	45%

Deal filings

None.

13D filers

Filed	Filer	Form	Stake	Intent
Sep 17, 2025	GALLUP PATRICIA	SCHEDULE 13D/A	54.4%	Passive
Aug 25, 2025	GALLUP PATRICIA	SCHEDULE 13D/A	82.3%	Passive
Mar 24, 2025	GALLUP PATRICIA	SCHEDULE 13D/A	53.4%	Passive
Sep 18, 2024	GALLUP PATRICIA	SC 13D/A	52.4%	Passive
May 10, 2024	GALLUP PATRICIA	SC 13D/A	52.3%	Passive
Mar 15, 2023	GALLUP PATRICIA	SC 13D/A	54.8%	Passive
May 12, 2022	GALLUP PATRICIA	SC 13D/A	55.5%	Passive
Dec 22, 2021	GALLUP PATRICIA	SC 13D/A	55.9%	Passive
Sep 27, 2021	GALLUP PATRICIA	SC 13D/A	56.3%	Passive

Insider trading

Open-market buys, 12 mo: $0 · 0
Open-market sells, 12 mo: $18M · 53
Net: −$18M

Pay vs performance

No pay-versus-performance disclosure yet.