PC Connection CNXN Form 10-Q filing Q2 FY2026

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PART I ― FINANCIAL INFORMATION

Item 1. Unaudited Condensed Consolidated Financial Statements:

Item 1. Financial Statements

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PC CONNECTION, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET****S

(Unaudited)

(amounts in thousands)

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See notes to unaudited condensed consolidated financial statements.

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See notes to unaudited condensed consolidated financial statements.

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See notes to unaudited condensed consolidated financial statements.

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PC CONNECTION, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)

(amounts in thousands)

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See notes to unaudited condensed consolidated financial statements.

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See notes to unaudited condensed consolidated financial statements.

PC CONNECTION, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW****S

(Unaudited)

(amounts in thousands)

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See notes to unaudited condensed consolidated financial statements.

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

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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, 2025, 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, 2025.

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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 six months ended June 30, 2026 may not be indicative of the results expected for any succeeding quarter or the entire year ending December 31, 2026.

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Use of Estimates in the Preparation of Financial Statements

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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.

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Cash and Cash Equivalents and Investments

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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.

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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 (loss) income on the condensed consolidated balance sheets.

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Included in interest income, net on the condensed consolidated statements of income is interest income on cash equivalents and short-term investments of $2,487 and $5,664 for the three and six months ended June 30, 2026, respectively, and $3,217 and $7,018 for the three and six months ended June 30, 2025, respectively.

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Treasury Stock, at Cost

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The total repurchases for the six months ended June 30, 2026 and 2025 were recorded as treasury stock of $2,423 and $60,863, 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

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The severance expenses recorded for the six months ended June 30, 2026 and 2025 were related to voluntary and involuntary reductions in the Company’s workforce to lower the Company’s cost structure. Both the voluntary and involuntary reductions included cash severance and other related termination benefits. The majority of each of these costs are expected to be paid within a year of the applicable termination. Included in accrued payroll on the condensed consolidated balance sheets as of June 30, 2026 was $606 related to unpaid severance expenses.

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Recently Issued Financial Accounting Standards

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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.

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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.

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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.

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In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements. This guidance is intended to improve the navigability of required interim disclosures and clarify when the guidance is applicable, as well as provide additional guidance on what disclosures should be provided in interim reporting periods. This ASU is effective for the Company’s 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 condensed consolidated financial statement disclosures.

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Note 2–Revenue

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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.

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The following tables represent a disaggregation of revenue from arrangements with customers for the three months ended June 30, 2026 and 2025, along with the segment for each category (in thousands).

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The following tables represent a disaggregation of revenue from arrangements with customers for the six months ended June 30, 2026 and 2025, along with the segment for each category (in thousands).

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Contract Balances

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The following table provides information about contract liabilities from arrangements with customers as of June 30, 2026 and December 31, 2025 (in thousands).

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Changes in the contract liability balances during the six months ended June 30, 2026 and 2025 are as follows (in thousands):

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Note 3–Fair Value Measurements

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Cash equivalents and short-term investments as of June 30, 2026 and December 31, 2025 consist of the following (in thousands):

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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 (loss) 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.

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Fair Value

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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:

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• Level 1 inputs: Quoted prices for identical assets or liabilities in active markets;

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• Level 2 inputs: Observable inputs other than those described as Level 1; and

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• Level 3 inputs: Unobservable inputs that are supported by little or no market activities and are based on significant assumptions and estimates.

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As of June 30, 2026 and December 31, 2025, the fair values of the Company’s investments were all measured using level 1 inputs.

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Note 4–Earnings Per Share

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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.

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The following table sets forth the computation of basic and diluted earnings per share for the three and six months ended June 30, 2026 and 2025 (in thousands, except per share data):

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For the three and six months ended June 30, 2026 and 2025, 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.

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Note 5**–**Leases

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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.

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As of June 30, 2026, 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 six months ended June 30, 2026 and 2025 (dollars in thousands):

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As of June 30, 2026, future lease payments over the remaining term of capitalized operating leases were as follows (in thousands):

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As of June 30, 2026, the right-of-use, or ROU, asset had a balance of $7,315. The long-term lease liability was $6,677 and the short-term lease liability, which is included in accrued expenses and other liabilities on the condensed consolidated balance sheets, was $869. As of December 31, 2025, the ROU asset had a balance of $1,569. The long-term lease liability was $498 and the short-term lease liability, which is included in accrued expenses and other liabilities on the condensed consolidated balance sheets, was $1,290.

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Note 6–Accumulated Other Comprehensive (Loss) Income

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Accumulated other comprehensive (loss) 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 (loss) income were as follows (in thousands):

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Included in amounts reclassified from accumulated other comprehensive (loss) income, net of tax for the six months ended June 30, 2025 is $76 of realized gain, which is included in “Other income” on the unaudited condensed consolidated statements of income.

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Note 7–Segment Information

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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

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.

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The Company’s CODM is its Chief Executive Officer, and he assesses the segments’ performance by using each segment’s 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.

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Segment information applicable to the Company’s operating segments and the related reconciliations to consolidated amounts for the three and six months ended June 30, 2026 and 2025 are shown below (in thousands):

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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.

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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 June 30, 2026 and 2025, total assets for the Headquarters/Other were presented net of intercompany balance eliminations of $64,232 and $46,339, 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.

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Note 8–Commitments and Contingencies

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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.

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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.

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Note 9–Bank Borrowings

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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).

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Cash receipts were automatically applied against any outstanding borrowings. During the three months ended March 31, 2025, the Company borrowed incremental amounts that were each repaid in full. These borrowings for the three months ended March 31, 2025 totaled $732; 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.

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Note 10–Supplier Finance Programs

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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 $65,657 and $58,563 at June 30, 2026 and December 31, 2025, respectively.

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Note 11–Supplemental Cash Flow Information

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Income taxes paid, net of refunds received for the six months ended June 30, 2026 was $13,781. Income taxes paid for the six months ended June 30, 2025 was $18,171.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

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OVERVIEW

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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, security, artificial intelligence, 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 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. These services are performed by our personnel and by third-party providers. Our GlobalServe offering ensures worldwide coverage for our multinational customers, delivering global procurement solutions through our network of in-country suppliers in over 150 countries.

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The “Connection” brand includes Connection Enterprise Solutions, Connection Business Solutions, and Connection Public Sector Solutions, which provide IT solutions and services to enterprise, small- to medium-sized businesses, and public sector markets.

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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., 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.

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As a value-added reseller in the IT supply chain, we do not manufacture IT hardware or software products. We are dependent on our suppliers—manufacturers and distributors that historically have only sold to resellers rather than directly to end users. However, certain manufacturers have, on multiple occasions, sold or attempted to sell directly to our customers, and in some cases, have restricted our ability to sell their products directly to certain customers, thereby attempting to and, in some cases successfully, eliminate our role. We believe that the success of these direct sales efforts by manufacturers will depend on their ability to meet our customers’ ongoing demands and provide solutions to meet their needs. We believe more of our customers are seeking out comprehensive and integrated IT solutions, rather than the ability to acquire specific IT products on a one-off basis. Our advantage is our ability to be product-neutral and provide a broader combination of products, services, and advice tailored to our customers’ individual needs. By providing customers with customized solutions from a variety of manufacturers, we believe we can mitigate the negative impact of continued direct sales initiatives from individual manufacturers. Through the formation of our TSSO, we are able to provide customers complete IT solutions, from identifying their needs, to designing, developing, and managing the integration of products and services to implement their IT projects. Such service offerings carry higher margins than traditional product sales. Additionally, the technical certifications of our service engineers permit us to offer higher-end, more complex products that generally carry higher gross margins. We expect these service offerings and technical certifications to continue to play a role in sales generation and gross margin improvements in this competitive environment.

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The primary challenges we continue to face in effectively managing our business are (1) increasing our product and service revenues while at the same time improving our gross margin in all three segments, (2) recruiting, retaining, and improving the productivity of our sales and technical support personnel, and (3) effectively controlling our selling, general and administrative, or SG&A, expenses while making major investments in our IT systems and solution selling personnel, especially in relation to changing revenue levels.

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To support future growth, we have invested and expect to continue to invest in our IT solutions business, which requires the addition of highly skilled service engineers. Although we expect to realize the ultimate benefit of higher-margin service revenues under this multi-year initiative, we believe that our cost of services will increase as we add additional service engineers. If our service revenues do not grow enough to offset the cost of these headcount additions, our operating results may be negatively impacted.

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Market conditions and technology advances significantly affect the demand for our products and services. Virtual delivery of software products and advanced Internet technology providing customers enhanced functionality have substantially increased customer expectations, requiring us to invest on an ongoing basis in our own IT infrastructure to meet these new demands.

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Our investments in IT infrastructure are designed to enable us to operate more efficiently and provide our customers enhanced functionality.

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The ongoing global memory shortage (DRAM and NAND) could result in increased inventory costs, which may reduce our margins or require us to raise prices. The memory shortage could additionally result in a lack of availability of products, which could negatively impact our results of operations. As a result of these ongoing and anticipated shortages, we may purchase product in advance of customer orders, while customers may accelerate or delay purchasing depending on their capital resources.

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The U.S. administration has announced or imposed a series of tariffs on U.S. trading partners. In response, several countries have threatened or imposed retaliatory measures. The imposition of new tariffs or increases in existing tariffs on goods imported from countries where our suppliers operate could result in increased inventory costs. These cost increases may reduce our margins or require us to raise prices. We continue to assess the impact of the tariffs on our supply chain. In addition, these actions and threatened actions and increased volatility in financial markets may affect customer decisions about the timing or size of IT investments.

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KEY OPERATING METRIC

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Gross Billings

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We utilize key operating metrics to track and assess the performance of our business, including gross billings. Gross billings is the total dollar value of goods and services billed during the period, net of customer returns, credit memos, and any applicable sales or other taxes and includes agency fees, and freight. As certain transactions are recognized on a net basis, gross billings include amounts not recognized in net sales.

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We use the gross billings operating metric for planning, forecasting, and evaluating the sales performance of our operating segments by providing insight into the total value of our business transactions. We believe that gross billings provides the same insight to investors.

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The following table sets forth the gross billings for each of our operating segments and our consolidated entity (in millions):

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RESULTS OF OPERATIONS

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The following table sets forth information derived from our statements of income expressed as a percentage of net sales for the periods indicated (dollars in millions):

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Net sales of $854.0 million for the second quarter of 2026 reflect an increase of $94.3 million, or 12.4% compared to the second quarter of 2025. The increase was primarily driven by increases in net sales of notebooks/mobility, software, displays and sound, accessories, net/com products, and other hardware/services of $77.7 million, $10.3 million, $9.1 million, $8.2 million, $6.3 million, and $2.5 million, respectively, as shown in the table in Note 2, “Revenue,” in the Notes to our Unaudited Condensed Consolidated Financial Statements. These increases were partially offset by decreases in net sales of servers/storage and desktops of $13.0 million and $6.7 million, respectively. Gross profit for the second quarter of 2026 increased year-over-year by $19.7 million, or 14.3%, to $157.5 million as illustrated in the table and the discussion beginning on page 22 of this Quarterly Report on Form 10-Q. Gross margin increased to 18.4% from 18.1% a year ago. The increase in gross margin was primarily driven by improved invoice margins in accessories and other hardware/services primarily due to changes in customer mix, as well as an increase in the amount of software sales recognized on a net basis as these sales are recognized in the financial statements at 100% margin. SG&A expenses as a percentage of net sales decreased to 13.4% compared to 14.1% a year ago, primarily due to the increase in net sales as discussed above. Operating income as a percentage of net sales increased to 5.0% compared to 4.1% a year ago, primarily due to the increases in net sales and gross profit as discussed above.

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Net Sales Distribution

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The following table sets forth our percentage of net sales by segment and product mix for the periods indicated:

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Gross Profit Margin

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The following table summarizes our gross margin, as a percentage of net sales, for the periods indicated:

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Operating Expenses

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The following table reflects our SG&A expenses for the periods indicated (dollars in millions):

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Severance Expenses

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There were no severance expenses incurred during the three months ended June 30, 2026 and 2025. During the six months ended June 30, 2026 and 2025, we undertook actions to lower our cost structure. In connection with these initiatives, we incurred severance expenses of $3.1 million and $2.9 million for the six months ended June 30, 2026 and 2025, respectively. The severance expenses were related to voluntary and involuntary reductions in our workforce. Both the voluntary and involuntary reductions included cash severance and other related termination benefits. The majority of each of these costs are expected to be paid within a year of the applicable termination and any unpaid balances are included in accrued payroll on the condensed consolidated balance sheets as of June 30, 2026.

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Year-Over-Year Comparisons

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In this section and elsewhere in this Quarterly Report on Form 10-Q we refer to changes in year-over-year results. Unless context otherwise requires, such references refer to changes between the three months ended June 30, 2026 and the three months ended June 30, 2025, and changes between the six months ended June 30, 2026 and the six months ended June 30, 2025.

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Three Months Ended June 30, 2026 Compared to Three Months Ended June 30, 2025

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Changes in net sales and gross profit by segment are shown in the following table (dollars in millions):

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Net sales increased for the second quarter of 2026 compared to the second quarter of 2025, as explained by the year-over-year changes discussed below:

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• Net sales of $369.6 million for the Enterprise Solutions segment reflect an increase of $43.6 million, or 13.4%. The increase in net sales is primarily due to increases in net sales of notebooks/mobility, displays and sound, software, accessories, other hardware/services, and servers/storage of $25.3 million, $8.5 million, $8.0 million, $4.2 million, $1.8 million, and $1.5 million, respectively. These increases were partially offset by decreases in net sales of desktops and net/com products of $4.5 million and $1.3 million, respectively.

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• Net sales of $343.9 million for the Business Solutions segment reflect an increase of $50.7 million, or 17.3%. The increase in net sales is primarily due to increases in net sales of notebooks/mobility, net/com products, accessories, and other hardware/services of $48.6 million, $7.9 million, $2.4 million, and $1.1 million, respectively. These increases were partially offset by decreases in net sales of servers/storage and desktops of $8.2 million and $1.7 million, respectively.

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• Net sales of $140.5 million for the Public Sector Solutions segment were substantially the same as in the second quarter of 2025. Sales to the federal government decreased by $6.8 million, or 24.7%, compared to the prior year quarter, while sales to state and local government and educational institutions increased by $6.8 million, or 6.0%. Increases in net sales of notebooks/mobility, software, accessories, and displays and sound of $3.8 million, $1.9 million, $1.5 million, and $0.3 million, respectively, were offset by decreases in net sales of servers/storage, desktops, other hardware/services, and net/com products of $6.3 million, $0.5 million, $0.5 million, and $0.3 million, respectively.

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Gross profit for the second quarter of 2026 increased year-over-year, as explained by the year-over-year changes discussed below:

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• Gross profit for the Enterprise Solutions segment increased by $7.6 million year-over-year primarily due to the increase in net sales as discussed in the preceding paragraph.

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• Gross profit for the Business Solutions segment increased by $10.2 million year-over-year primarily due to the increase in net sales as discussed in the preceding paragraph.

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• Gross profit for the Public Sector Solutions segment increased by $1.9 million primarily as a result of improved invoice margins in notebooks/mobility primarily due to changes in customer mix.

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Gross margin for the second quarter of 2026 increased year-over-year, as explained by the year-over-year changes discussed below:

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• Gross margin for the Enterprise Solutions segment increased by 30 basis points primarily as a result of an increase in the amount of software sales recognized on a net basis, as well as improved invoice margins in other hardware/services primarily due to changes in customer mix.

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• Gross margin for the Business Solutions segment decreased by 50 basis points primarily as a result of a shift in product mix to sales of lower-margin notebooks/mobility.

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• Gross margin for the Public Sector Solutions segment increased by 130 basis points primarily as a result of improved invoice margins in notebooks/mobility primarily due to changes in customer mix, as well as an increase in the amount of software sales recognized on a net basis.

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Selling, general and administrative expenses for the second quarter of 2026 increased in dollars but decreased as a percentage of net sales compared to the second quarter of 2025. SG&A expenses attributable to our three segments and the remaining unallocated Headquarters/Other expenses are summarized in the table below (dollars in millions):

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• SG&A expenses for the Enterprise Solutions segment increased year-over-year in dollars but decreased as a percentage of net sales. The year-over-year change in SG&A dollars was primarily attributable to increases in personnel costs, use of shared Headquarter services, and marketing of $1.0 million, $0.9 million, and $0.8 million, respectively. SG&A expenses as a percentage of net sales were 10.8% for the Enterprise Solutions segment for the second quarter of 2026, which reflects a decrease of 60 basis points and is primarily due to the increase in net sales as discussed above.

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• SG&A expenses for the Business Solutions segment increased year-over-year in dollars but decreased as a percentage of net sales. The year-over-year change in SG&A dollars was primarily attributable to increases in marketing, use of shared Headquarter services, and other expenses of $2.0 million, $1.3 million, and $0.5 million, respectively. SG&A expenses as a percentage of net sales were 13.8% for the Business Solutions segment for the second quarter of 2026, which reflects a decrease of 100 basis points and is primarily due to the increase in net sales as discussed above.

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• SG&A expenses for the Public Sector Solutions segment remained substantially the same year-over-year both in dollars and as a percentage of net sales. A decrease in professional fees of $1.5 million was substantially offset by increases in marketing and use of shared Headquarter services of $0.7 million and $0.6 million, respectively.

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• SG&A expenses for the Headquarters/Other increased year-over-year by $0.8 million primarily due to an increase in personnel costs of $3.3 million, partially offset by an increase in the allocated amounts to the operating segments of $2.8 million. The Headquarters/Other provides services to the three segments in areas such as finance, distribution center, human resources, IT, marketing, and product management. Most of the operating costs associated with such corporate Headquarters/Other services are charged to the segments based on their estimated allocation usage of the underlying services.

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Income from operations for the second quarter of 2026 was $43.0 million, compared to $30.9 million for the second quarter of 2025. Income from operations as a percentage of net sales increased to 5.0% for the second quarter of 2026, compared to 4.1% for the prior year quarter. The increase in income from operations both in dollars and as a percentage of net sales is primarily due to the increases in net sales and gross profit as discussed above.

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Interest income, net for the second quarter of 2026 decreased to $2.5 million, compared to $3.2 million for the second quarter of 2025, primarily due to a decrease in interest income of $0.7 million. The decrease in interest income is primarily a result of lower cash equivalent balances in the current period combined with lower realized interest rates in the current period.

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Income taxes. Our provision for income taxes for the second quarter of 2026 increased to $12.4 million, compared to $9.3 million for the second quarter of 2025. The increase in our provision for income taxes was primarily due to the increase in income before taxes. Our effective tax rate was 27.2% for the quarter ended June 30, 2026, compared to 27.3% for the quarter ended June 30, 2025.

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Net income for the second quarter of 2026 increased to $33.2 million, compared to $24.8 million for the second quarter of 2025, primarily due to the increase in income from operations, partially offset by the decrease in interest income, net and the increase in our provision for income taxes, as discussed above.

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Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025

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Changes in net sales and gross profit by segment are shown in the following table (dollars in millions):

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Net sales increased for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, as explained by the year-over-year changes discussed below:

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• Net sales of $716.1 million for the Enterprise Solutions segment reflect an increase of $92.1 million, or 14.8%. The increase in net sales is primarily due to increases in net sales of notebooks/mobility, displays and sound, accessories, other hardware/services, software, net/com products, and servers/storage of $62.4 million, $12.5 million, $11.0 million, $5.5 million, $3.3 million, $2.2 million, and $1.4 million, respectively. These increases were partially offset by a decrease in net sales of desktops of $6.3 million.

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• Net sales of $619.4 million for the Business Solutions segment reflect an increase of $67.9 million, or 12.3%. The increase in net sales is primarily due to increases in net sales of notebooks/mobility, net/com products, software, other hardware/services, and accessories of $50.8 million, $10.5 million, $7.9 million, $3.6 million, and $2.6 million, respectively. These increases were partially offset by a decrease in net sales of servers/storage of $8.1 million.

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• Net sales of $240.4 million for the Public Sector Solutions segment reflect a decrease of $44.8 million, or 15.7%. Sales to the federal government decreased by $48.9 million, or 57.4%, compared to the prior year period, primarily due to a few large orders in the prior period that did not repeat. Sales to state and local

government and educational institutions increased by $4.1 million, or 2.0%. The decrease in net sales is primarily due to decreases in net sales of notebooks/mobility, servers/storage, accessories, desktops, and net/com products of $28.1 million, $11.3 million, $4.6 million, $3.2 million, and $2.6 million, respectively. These decreases were partially offset by increases in net sales of software and other hardware/services of $3.1 million and $1.4 million, respectively.

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Gross profit for the six months ended June 30, 2026 increased year-over-year, as explained by the year-over-year changes discussed below:

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• Gross profit for the Enterprise Solutions segment increased by $15.5 million year-over-year primarily due to the increase in net sales as discussed in the preceding paragraph.

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• Gross profit for the Business Solutions segment increased by $12.3 million year-over-year primarily due to the increase in net sales as discussed in the preceding paragraph.

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• Gross profit for the Public Sector Solutions segment decreased by $2.7 million year-over-year primarily due to the decrease in net sales as discussed in the preceding paragraph.

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Gross margin for the six months ended June 30, 2026 increased year-over-year, as explained by the year-over-year changes discussed below:

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• Gross margin for the Enterprise Solutions segment increased by 30 basis points primarily as a result of improved invoice margins in other hardware/services primarily due to changes in customer mix.

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• Gross margin for the Business Solutions segment decreased by 60 basis points primarily as a result of decreases in invoice margins in desktops and notebooks/mobility primarily due to changes in customer mix.

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• Gross margin for the Public Sector Solutions segment increased by 160 basis points primarily due to an increase in the amount of software sales recognized on a net basis, as well as a few low-margin deals in the prior period that did not repeat.

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Selling, general and administrative expenses for the six months ended June 30, 2026 increased in dollars but decreased as a percentage of net sales compared to the six months ended June 30, 2025. SG&A expenses attributable to our three segments and the remaining unallocated Headquarters/Other expenses are summarized in the table below (dollars in millions):

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• SG&A expenses for the Enterprise Solutions segment increased year-over-year in dollars but decreased as a percentage of net sales. The year-over-year change in SG&A dollars was primarily attributable to increases in personnel costs and use of shared Headquarter services of $2.8 million and $1.4 million, respectively. SG&A expenses as a percentage of net sales were 11.1% for the Enterprise Solutions segment for the six months ended June 30, 2026, which reflects a decrease of 90 basis points and is primarily due to the increase in net sales as discussed above.

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• SG&A expenses for the Business Solutions segment increased year-over-year in dollars but decreased as a percentage of net sales. The year-over-year change in SG&A dollars was primarily attributable to increases in use of shared Headquarter services, other expenses, personnel costs, and marketing of $2.4 million, $0.7

million, $0.4 million, and $0.4 million, respectively. SG&A expenses as a percentage of net sales were 15.0% for the Business Solutions segment for the six months ended June 30, 2026, which reflects a decrease of 110 basis points and is primarily due to the increase in net sales as discussed above.

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• SG&A expenses for the Public Sector Solutions segment decreased year-over-year in dollars but increased as a percentage of net sales. The year-over-year change in SG&A dollars was primarily attributable to decreases in professional fees and personnel costs of $2.2 million and $1.8 million, respectively, partially offset by an increase in use of shared Headquarter services of $1.2 million. SG&A expenses as a percentage of net sales were 18.2% for the Public Sector Solutions segment for the six months ended June 30, 2026, which reflects an increase of 190 basis points and is primarily due to the decrease in net sales as discussed above.

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• SG&A expenses for the Headquarters/Other increased year-over-year by $1.4 million primarily due to increases in personnel costs, service contracts/subscriptions, and marketing of $4.9 million, $0.8 million, and $0.4 million, respectively, partially offset by an increase in the allocated amounts to the operating segments of $4.9 million. The Headquarters/Other provides services to the three segments in areas such as finance, distribution center, human resources, IT, marketing, and product management. Most of the operating costs associated with such corporate Headquarters/Other services are charged to the segments based on their estimated allocation usage of the underlying services.

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Severance expenses for the six months ended June 30, 2026 were $3.1 million, compared to $2.9 million for the six months ended June 30, 2025. The severance expenses were related to voluntary and involuntary reductions in our workforce to lower our cost structure and included cash severance and other related termination benefits.

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Income from operations for the six months ended June 30, 2026 was $63.2 million, compared to $45.4 million for the six months ended June 30, 2025. Income from operations as a percentage of net sales increased to 4.0% for the six months ended June 30, 2026, compared to 3.1% for the prior year period. The increase in income from operations both in dollars and as a percentage of net sales is primarily due to the increases in net sales and gross profit as discussed above.

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Interest income, net for the six months ended June 30, 2026 decreased to $5.9 million, compared to $7.1 million for the six months ended June 30, 2025, primarily due to a decrease in interest income of $1.2 million. The decrease in interest income is primarily a result of lower cash equivalent balances in the current period combined with lower realized interest rates in the current period.

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Income taxes. Our provision for income taxes for the six months ended June 30, 2026 increased to $18.7 million, compared to $14.3 million for the six months ended June 30, 2025. The increase in our provision for income taxes was primarily due to the increase in income before taxes. Our effective tax rate was 27.1% for the six months ended June 30, 2026, compared to 27.3% for the six months ended June 30, 2025.

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Net income for the six months ended June 30, 2026 increased to $50.4 million, compared to $38.3 million for the six months ended June 30, 2025, primarily due to the increase in income from operations, partially offset by the decrease in interest income, net and the increase in our provision for income taxes, as discussed above.

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Liquidity and Capital Resources

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Our primary sources of liquidity are internally generated funds from operations and short-term investments. We have historically used and expect to use in the future those funds to meet our capital requirements, which consist primarily of working capital for operational needs, capital expenditures for computer equipment and software used in our business, repurchases of our common stock for treasury, dividend payments, and as opportunities arise, possible acquisitions of new businesses.

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We believe that funds generated from operations and short-term investments will be sufficient to finance our working capital, capital expenditures, and other requirements for at least the next twelve calendar months and beyond such twelve calendar month period. Our investments in IT systems and infrastructure are designed to enable us to operate more efficiently and to provide our customers enhanced functionality.

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We expect to meet our cash requirements for the next twelve months and beyond through a combination of cash on hand, short-term investments, and cash generated from operations, as follows:

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• Cash and Cash Equivalents. As of June 30, 2026, we had $123.7 million in cash and cash equivalents.

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• Short-term Investments. As of June 30, 2026, we had $217.0 million in short-term investments.

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• Cash Generated from Operations. We expect to generate cash flows from operations in excess of operating cash needs by generating earnings and managing net changes in inventories and receivables with changes in payables to generate positive cash flow.

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Our ability to continue funding our planned growth, both internally and externally, is dependent upon our ability to generate sufficient cash flow from operations or to obtain additional funds through equity or debt financing, or from other sources of financing, as may be required. While we do not anticipate needing any additional sources of financing to fund our operations at this time, if demand for IT products declines, or our customers are materially adversely impacted by the developing macroeconomic trends characterized by inflation and increased interest rates, our cash flows from operations may be substantially affected.

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Dividends

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A summary of 2026 dividend activity for our common stock is as follows:

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On July 29, 2026, we announced that our Board of Directors declared a quarterly cash dividend on our common stock of $0.20 per share. The dividend will be paid on August 28, 2026 to all stockholders of record as of the close of business on August 11, 2026. The declaration and payment of any future dividends is at the discretion of our Board of Directors and will depend upon our financial position, strategic plans, general business conditions and any other factors deemed relevant by our Board of Directors.

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Summary of Sources and Uses of Cash

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Cash flows from operating, investing and financing activities for the six months ended June 30, 2026 and 2025, as reflected in our Unaudited Condensed Consolidated Statements of Cash Flows included in Item 1 of this Quarterly Report on Form 10-Q, are summarized in the following table (in millions):

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Cash used in operating activities is summarized as follows (in millions):

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The decrease in net cash from operating activities of $23.3 million for the six months ended June 30, 2026 was primarily attributable to changes in accounts receivable, accounts payable, and inventories of $53.9 million, $35.9 million, and $23.1 million, respectively. The change in cash from operating activities attributable to accounts receivable is primarily driven by the timing of collections. The change in cash from operating activities attributable to accounts payable is primarily due to the timing of payments. The change in cash from operating activities attributable to inventories is primarily due to an increase in inventory purchases related to customer rollouts and management’s decision to secure supply.

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In order to manage our working capital and operating cash needs, we monitor our cash conversion cycle, defined as days of sales outstanding in accounts receivable plus days of supply in inventory minus days of purchases outstanding in accounts payable, based on a rolling three-month average. Components of our cash conversion cycle are as follows:

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(1) Represents the trade receivable at the end of the quarter divided by average daily net sales for the same three-month period.

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(2) Represents the inventory balance at the end of the quarter divided by average daily cost of sales for the same three-month period.

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(3) Represents the accounts payable balance at the end of the quarter divided by average daily cost of sales for the same three-month period.

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The cash conversion cycle increased to 49 days at June 30, 2026, compared to 44 days at June 30, 2025, as evidenced in the above cash conversion table. The increase in DSO is primarily due to the increase in trade receivables as of June 30, 2026 compared to June 30, 2025. The increase in DIO is primarily due to the increase in inventory as of June 30, 2026 compared to June 30, 2025. The increase in DPO is primarily due to the increase in accounts payable as of June 30, 2026 compared to June 30, 2025.

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Cash (used in) provided by investing activities for the six months ended June 30, 2026 consisted of $105.7 million of purchases of U.S. Government treasury securities, $103.2 million of maturities of U.S. Government treasury

securities, and $3.9 million of purchases of property and equipment. The property and equipment expenditures were primarily for computer equipment and capitalized internally developed software in connection with investments in our IT infrastructure. In the prior year period, investing activities consisted of $52.4 million of purchases of U.S. Government treasury securities, $108.8 million of sales of U.S. Government treasury securities, $50.0 million of maturities of U.S. Government treasury securities, and $3.3 million of purchases of property and equipment.

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Cash used in financing activities for the six months ended June 30, 2026 consisted of $10.1 million of dividend payments, $2.5 million of treasury purchases, $0.7 million of excise tax payments on treasury purchases, $0.6 million of issuances of stock under the Employee Stock Purchase Plan, and $1.0 million of payments of payroll taxes on stock-based compensation through shares withheld. In the prior year period, financing activities consisted of $0.7 million of aggregate borrowings and repayments, $60.5 million of treasury purchases, $7.7 million of dividend payments, $0.6 million of issuances of stock under the Employee Stock Purchase Plan, and $0.9 million of payments of payroll taxes on stock-based compensation through shares withheld.

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Contractual Agreements

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Below is a summary of our contractual obligations. For more information about our obligations, commitments, and contingencies, see our condensed consolidated financial statements and the accompanying notes included in this Quarterly Report on Form 10-Q.

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Supplier Finance Programs. We have entered into agreements with financial institutions to facilitate the purchase of inventory from designated suppliers under certain terms and conditions to enhance liquidity. We do not incur any interest or other incremental expenses associated with these agreements as balances are paid when they are due. See Note 10, “Supplier Finance Programs,” of our Unaudited Condensed Consolidated Financial Statements for additional information.

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Operating Leases. We lease facilities, including our corporate headquarters and a facility adjacent to our corporate headquarters, from a related party, which is a company affiliated with us through common ownership. The lease agreements of these two Merrimack, New Hampshire facilities have expired. We continue to occupy the facilities on a month-to-month basis under the terms of the prior written lease agreements. It is our intention to enter into a written, long-term lease for our corporate headquarters. We do not expect to occupy the adjacent facility long term, and accordingly we do not intend to enter into a written, long-term lease for the adjacent facility. We also lease facilities from third parties under non-cancelable operating leases. Certain leases require us to pay real estate taxes, insurance, and common area maintenance charges. See “Item 2. Properties” in our Annual Report on Form 10-K for the year ended December 31, 2025 for additional information regarding our operating leases.

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Factors Affecting Sources of Liquidity

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Internally Generated Funds. The key factors affecting our internally generated funds are our ability to manage costs and fully achieve our operating efficiencies, timely collection of our customer receivables, and management of our inventory levels.

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Capital Markets. Our ability to raise additional funds in the capital market depends upon, among other things, general economic conditions, the condition of the IT industry, our financial performance and stock price, and the state of the capital markets. In addition, market volatility, inflation and interest rate fluctuations may increase our cost of financing or restrict our access to potential sources of future liquidity.

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APPLICATION OF CRITICAL ACCOUNTING POLICIES AND ESTIMATES

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Our critical accounting policies and estimates have not materially changed from those discussed in our Annual Report on Form 10-K for the year ended December 31, 2025.

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RECENTLY ISSUED FINANCIAL ACCOUNTING STANDARDS

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Recently issued financial accounting standards are detailed in Note 1, “Basis of Presentation,” in the Notes to our Unaudited Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

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For a description of our market risks, see Item 7A. “Quantitative and Qualitative Disclosures About Market Risk” in our Annual Report on Form 10-K for the year ended December 31, 2025. No material changes related to our market risks have occurred since December 31, 2025.

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Item 4. Controls and Procedures

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Disclosure Controls and Procedures

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Our management, with the participation of our Chief Executive Officer (our principal executive officer) and Chief Financial Officer (our principal financial officer), evaluated the effectiveness of our disclosure controls and procedures as of June 30, 2026. The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) promulgated under the Exchange Act, means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized, and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure. Our management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Our disclosure controls and procedures are designed to provide reasonable assurance of achieving their objectives as described above. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were effective at the reasonable assurance level.

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Changes in Internal Control over Financial Reporting

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There were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the fiscal quarter ended June 30, 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II ― OTHER INFORMATIO****N

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Item 1. Legal Proceedings

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For information related to legal proceedings, see the discussion in Note 8, “Commitments and Contingencies,” in the Notes to our Unaudited Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q, which information is incorporated by reference into this Part II, Item 1.

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Item 1A. Risk Factors

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In addition to the other information set forth in this Quarterly Report on Form 10-Q, you should carefully consider Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, which could materially affect our business, financial position, and results of operations. Risk factors which could cause actual results to differ materially from those suggested by forward-looking statements include but are not limited to those discussed or identified in this document, in our other public filings with the SEC, and those contained in Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025.

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Item 5. Other Information

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Director and Officer Trading Arrangements

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None of our directors or officers (as defined in Exchange Act Rule 16a-1(f)) adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement (as each term is defined in Item 408(c) of Regulation S-K) during the second quarter of 2026.

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Item 6. Exhibits

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Exhibit Number Description

3.1 Amended and Restated Certificate of Incorporation of PC Connection, Inc., as amended (incorporated by reference to Exhibit 3.1 to the Company’s registration statement on Form S-4 (333-63272) filed on June 19, 2001). 3.2 Amended and Restated Bylaws of PC Connection, Inc. (incorporated by reference to Exhibit 3.1 to the Company’s current report on Form 8-K, filed on January 9, 2008). 31.1 Certification of the Company’s President and Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. 31.2 Certification of the Company’s Senior Vice President and Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. 32.1 Certification of the Company’s President and Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. 32.2 Certification of the Company’s Senior Vice President and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. 101.INS Inline XBRL Instance Document* - The Instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document. 101.SCH Inline XBRL Taxonomy Extension Schema Document. 101.CAL Inline XBRL Taxonomy Calculation Linkbase Document. 101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document 101.LAB Inline XBRL Taxonomy Label Linkbase Document. 101.PRE Inline XBRL Taxonomy Presentation Linkbase Document. (104) Cover Page Interactive Data File (formatted as Inline XBRL with applicable taxonomy extension information contained in Exhibits 101).

* Submitted electronically herewith.

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Attached as Exhibit 101 to this report are the following formatted in XBRL (Extensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets at June 30, 2026 and December 31, 2025, (ii) Condensed Consolidated Statements of Income for the three and six months ended June 30, 2026 and 2025, (iii) Condensed Consolidated Statements of Other Comprehensive Income for the three and six months ended June 30, 2026 and 2025, (iv) Condensed Consolidated Statements of Stockholders’ Equity for the three and six months ended June 30, 2026 and 2025, (v) Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2026 and 2025, and (vi) Notes to Unaudited Condensed Consolidated Financial Statements.

SIGNATURE****S

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​ ​ ​ ​ ​

Date: July 29, 2026 ​ By: /s/ TIMOTHY J. MCGRATH

​ ​ ​ ​ Timothy J. McGrath

​ ​ ​ ​ President and Chief Executive Officer (Duly Authorized Officer)

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Date: July 29, 2026 ​ By: /s/ THOMAS C. BAKER

​ ​ ​ ​ Thomas C. Baker

​ ​ ​ ​ Senior Vice President, Chief Financial Officer and Treasurer (Principal Financial and Accounting Officer)

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