PC Connection, Inc.

Good afternoon and welcome to the third quarter 2026 Connection Earnings Conference Call. My name is Marvin and I'll be the coordinator for today. At this time, all participants are in listen-only mode. Following the prepared remarks, there will be a question and answer session. As a reminder, this conference call is the property of Connection. It may not be recorded or repodcast without specific permissions from the company. On the call today are Tim McGrath, President and Chief Executive Officer, and Tom Baker, Senior Vice President and Chief Financial Officer. I'll now turn the call over to the company.

Thanks, operator, and good afternoon, everyone. I will now read our cautionary note regarding forward-looking statements. Any statements or references made during the conference call that are not statements of historical fact may be deemed to be forward-looking statements. Various remarks that management may make about the company's future expectations, plans, and prospects constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those discussed in the risk factor section of the company's annual report on Form 10-K for the year ended December 31st, 2025, which is on file with the Securities and Exchange Commission as well as in other documents that the company files with the Commission from time to time. In addition, any forward-looking statements represent management's views as of today and should not be relied upon as representing views as of any subsequent date. While the company may elect to update forward-looking statements at some point in the future, the company specifically disclaims any obligation to do so other than is required by law, even if estimates change. And therefore, you should not rely on forward-looking statements as representing management's views as of any date subsequent to today. During this call, non-GAAP financial measures will be discussed. A reconciliation between any non-GAAP financial measure discussed and its most directly comparable GAAP measure is available in today's earnings release and on the company's website at www.connection.com. Please note that unless otherwise stated, all references to third quarter 2026 comparisons are being made against the third quarter 2025. Today's call is being webcast and will be available on Connection's website. The earnings release will be available on the SEC website at www.sec.gov and in the investor relations section of our website at www.connection.com. I would now like to turn the call over to our host, Tim McGrath, CEO. Tim?

Thank you, Samantha. Good afternoon, everyone, and thank you for joining us today for Connection's Q3 2026 conference call. I'll begin this afternoon with an overview of our third quarter results and highlights of our performance. Tom will then walk us through a more detailed look at our financials. Our team delivered outstanding results in the third quarter, highlighted by record net sales, record gross billings, and record gross profit. Our performance reflects strong execution within our three strategic pillars, digital workspace, modern infrastructure and multi-cloud, and supply chain and lifecycle. We believe our strategy will become even more relevant as AI continues to reshape enterprise technology investment. It's becoming central to business operations, and customers are seeking greater control over their data, applications, and technology infrastructure, while preserving the flexibility to adapt as their needs evolve. This shift is driving demand for the solutions and the expertise Connection provides. helping customers innovate with confidence and optimize the value of their technology investments. In Q3, net sales were 874.3 million, representing a 23.3% increase year over year. The increase in net sales was driven across all product categories as notebooks, mobility, and desktops grew 26.6%, software increased 23.2%, Server storage was up 45.1% and networking improved by 43.3% in the quarter. Gross billings increased 19.4% to 1.3 billion compared to 1.1 billion in the prior year quarter. Gross profit grew 16.7% to a record 161.9 million and gross margin declined by 110 basis points to 18.5%. The margin change was driven by customer mix, including large project rollouts in the quarter and a low contribution of netted down revenue. Pricing pressures and supply chain conditions continued to influence customer spending during the quarter. Some customers accelerated purchases ahead of further price increases, while others delayed investments or extended the life of existing assets. Our supply chain and lifecycle capabilities enable customers to effectively manage their costs, protect their technology investments, and maintain business continuity, reinforcing our role as a trusted partner in an increasingly complex market. With that, let's turn to our segment performance. Our business solution segment delivered an outstanding quarter. Net sales increased 27.8% to 328.2 million, while gross profit rose 14.9% to 78.2 million. Gross billings grew 22.1% to a record 522.7 million, and gross margin was 23.8% compared with 26.5% in the prior year quarter, reflecting changes in customer mix and a lower contribution from software sales recognized on a net basis. Demand remained broad-based across the portfolio with double-digit growth across endpoint devices, servers, netcom, and software. Within public sector solutions, net sales increased 4.6% to $138.6 million. Growth billings increased 6.8% to $233.3 million. Gross margins declined 30 basis points to 16.9%, reflecting an increase in sales of lower margin endpoint devices and changes in customer mix. Our enterprise solution segment delivered strong growth, reflecting continued customer investment in technology modernization and a growing demand for enterprise AI-ready infrastructure. Net sales increased 27.4% to a record $407.5 million, driven by strong demand for endpoint devices, software, servers, Netcom, and services. Gross profits grew 26% to a record $60.2 million, while gross billings increased 23.1% to a record $521.2 million. Gross margin declined slightly by 10 basis points to 14.8%. Importantly, Enterprise Solutions ended the quarter with a record backlog. We believe this positions us well for continued momentum into the fourth quarter. With that, I'll turn the call over to Tom to review our financial results in greater detail. Tom?