ScanSource, Inc. (NASDAQ: SCSC), a leading technology distributor uniquely positioned to address complex, converging technologies, today announced financial results for the second quarter ended December 31, 2025.
|
Second Quarter Summary |
|
|||||||||
|
Q2 FY26 |
|
Q2 FY25 |
|
Change |
|
|||||
|
(in thousands, except percentages and per share data) |
||||||||||
Select reported measures: |
|
|
|
|
|
|
|||||
Net sales |
$ |
766,512 |
|
|
$ |
747,497 |
|
|
2.5 |
% |
|
Gross profit |
$ |
102,910 |
|
|
$ |
101,723 |
|
|
1.2 |
% |
|
Gross profit margin % |
|
13.4 |
% |
|
|
13.6 |
% |
|
-18bp |
|
|
Operating income |
$ |
17,868 |
|
|
$ |
18,444 |
|
|
-3.1 |
% |
|
GAAP net income |
$ |
16,493 |
|
|
$ |
17,053 |
|
|
-3.3 |
% |
|
GAAP diluted EPS |
$ |
0.75 |
|
|
$ |
0.70 |
|
|
7.1 |
% |
|
Select Non-GAAP measures*: |
|
|
|
|
|
|
|||||
Adjusted EBITDA |
$ |
31,193 |
|
|
$ |
35,299 |
|
|
-11.6 |
% |
|
Adjusted EBITDA margin % |
|
4.07 |
% |
|
|
4.72 |
% |
|
-65bp |
|
|
Non-GAAP net income |
$ |
17,611 |
|
|
$ |
20,698 |
|
|
-14.9 |
% |
|
Non-GAAP diluted EPS |
$ |
0.80 |
|
|
$ |
0.85 |
|
|
-5.9 |
% |
|
Note: Margin % reflects measure as a percentage of sales. |
|
|
|
||||||||
* Represents non-GAAP financial measures. For more information and a reconciliation to the most directly comparable GAAP financial measure, see "Non-GAAP Financial Information" below as well as the accompanying Supplementary Information. |
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“For the quarter, our team delivered net sales and gross profit growth in both segments, along with strong free cash flow,” said Mike Baur, Chair and CEO, ScanSource, Inc. “We are committed to our three-year goals that align with our strategic plan.”
Quarterly Results
Net sales for the second quarter of fiscal year 2026 totaled $766.5 million, an increase of 2.5% year-over-year, or an increase of 1.7% on a non-GAAP basis. Net sales for products and services increased 1.9% year-over-year, and recurring revenue increased 15.9% year-over-year including acquisitions. For Specialty Technology Solutions, second quarter net sales of $741.5 million increased 2.5% year-over-year, driven by growth in North America. Intelisys & Advisory net sales for the second quarter increased 3.1% year-over-year to $25.0 million led by Intelisys organic net sales growth.
Gross profit for the second quarter of fiscal year 2026 increased 1.2% year-over-year to $102.9 million, with a gross profit margin of 13.4% versus 13.6% in the prior-year quarter. For the second quarter of fiscal year 2026, the percentage of gross profit from recurring revenue increased to 37.2%, from 32.5% for the prior-year period.
For the second quarter of fiscal year 2026, operating income was $17.9 million, compared to $18.4 million in the prior-year quarter. Second quarter fiscal year 2026 non-GAAP operating income decreased to $23.2 million from $25.9 million in the prior-year quarter.
On a GAAP basis, net income for the second quarter of fiscal year 2026 totaled $16.5 million, or $0.75 per diluted share, compared to net income of $17.1 million, or $0.70 per diluted share, for the prior-year quarter. Second quarter fiscal year 2026 non-GAAP net income decreased to $17.6 million, or $0.80 per diluted share, from $20.7 million, or $0.85 per diluted share, for the prior-year quarter. On a non-GAAP basis, adjusted EBITDA for the second quarter of fiscal year 2026 totaled $31.2 million, or 4.07% of net sales, compared to $35.3 million, or 4.72% of net sales, for the prior-year quarter.
Balance Sheet and Cash Flow
As of December 31, 2025, ScanSource had cash and cash equivalents of $83.5 million and total debt of $102.7 million.
For fiscal year 2026, ScanSource generated $54.1 million of operating cash flow and $49.7 million of free cash flow (non-GAAP). ScanSource also had share repurchases of $38.7 million for the six months of fiscal 2026.
Annual Financial Outlook for Fiscal Year 2026
ScanSource updates its expectations for net sales and adjusted EBITDA for the full fiscal year ended June 30, 2026 and replaces previously provided guidance.
|
|
FY26 Annual Outlook |
|
Prior FY26 Annual Outlook |
Net sales |
|
$3.0 billion to $3.1 billion |
|
$3.1 billion to $3.3 billion |
Adjusted EBITDA (non-GAAP) |
|
$140 million to $150 million |
|
$150 million to $160 million |
Free cash flow (non-GAAP) |
|
At least $80 million |
|
At least $80 million |
Adjusted EBITDA is a non-GAAP measure, which excludes estimates for amortization of intangible assets, depreciation expense, and non-cash shared-based compensation expense. Free cash flow is a non-GAAP measure, which excludes the effect of estimated capital expenditures from estimated operating cash flow. These measures are forward-looking, and actual results may differ materially.
ScanSource believes that a quantitative reconciliation of such forward-looking information to the most directly comparable GAAP financial measures cannot be made without unreasonable efforts, because a reconciliation of these non-GAAP financial measures would require an estimate of future non-operating items such as acquisitions and divestitures, restructuring costs, impairment charges and other unusual or non-recurring items. Neither the timing nor likelihood of these events, nor their probable significance, can be quantified with a reasonable degree of accuracy. Accordingly, a reconciliation of such forward-looking information to the most directly comparable GAAP financial measures is not provided.
Governance Changes
ScanSource's Board of Directors has appointed Charles A. Mathis to succeed Peter C. Browning as the Lead Independent Director of the Board and Chair of the Nominating and Corporate Governance Committee of the Board, effective January 29, 2026. Peter Browning will continue to serve on the Board as an independent director and on each of the committees. The Board appointed Vernon J. Nagel to succeed Charles Mathis as the Chair of the Audit Committee of the Board, also effective January 29, 2026.
Webcast Details and Earnings Infographic
At approximately 8:45 a.m. ET today, an Earnings Infographic, as a supplement to this press release and the earnings conference call, will be available on ScanSource's website, www.scansource.com (Investor Relations section). ScanSource will present additional information about its financial results and business in a conference call today, February 5, 2026, at 10:30 a.m. ET. A webcast of the call will be available for all interested parties and can be accessed at www.scansource.com (Investor Relations section). The webcast will be available for replay for 60 days.
Safe Harbor Statement
This press release contains “forward-looking” statements, including ScanSource's FY26 annual outlook, which involve risks and uncertainties, many of which are beyond ScanSource's control. No undue reliance should be placed on such statements, as any number of factors could cause actual results to differ materially from anticipated or forecasted results, including, but not limited to, the following factors, which are neither presented in order of importance nor weighted: macroeconomic conditions, including potential prolonged economic weakness, inflation, tariffs and changes in trade policy, the failure to manage and implement ScanSource's growth strategy, the ability for ScanSource to realize the synergies or other benefits from acquisitions, credit risks involving ScanSource's larger channel sales partners and suppliers, changes in interest and exchange rates and regulatory regimes impacting ScanSource's international operations, including new or increased tariffs, risk to the business from a cyberattack, a failure of IT systems, failure to hire and retain quality employees, loss of ScanSource's major channel sales partners, relationships with key suppliers and channel sales partners or a termination or a modification of the terms under which it operates with these key suppliers and channel sales partners, changes in ScanSource's operating strategy, and other factors set forth in the "Risk Factors" contained in ScanSource's annual report on Form 10-K for the year ended June 30, 2025. Except as may be required by law, ScanSource expressly disclaims any obligation to update these forward-looking statements to reflect events or circumstances after the date of this press release or otherwise.
Non-GAAP Financial Information
In addition to disclosing results that are determined in accordance with United States Generally Accepted Accounting Principles ("GAAP"), ScanSource also discloses certain non-GAAP financial measures, which are summarized below. Non-GAAP financial measures are used to understand and evaluate performance, including comparisons from period to period. Non-GAAP results exclude items such as amortization of intangible assets related to acquisitions, acquisition and divestiture costs, gain/loss on sale of business, and restructuring costs and include other non-GAAP adjustments.
Net sales on a constant currency basis excluding acquisitions and divestitures to calculate organic growth ("non-GAAP net sales"): ScanSource discloses the percentage change in net sales excluding the translation impact from changes in foreign currency exchange rates between reporting periods and excluding the net sales from acquisitions and divestitures prior to the first full year from the transaction date. This measure enhances the comparability between periods to help analyze underlying trends on an organic basis.
Adjusted earnings before interest expense, income taxes, depreciation, and amortization (“Adjusted EBITDA”): Adjusted EBITDA starts with net income and adds back interest expense, income tax expense, depreciation expense, amortization of intangible assets, change in fair value of contingent consideration, and other non-GAAP adjustments, including acquisition and divestiture costs, restructuring costs, cyberattack restoration costs, tax recovery, and non-cash share-based compensation expense. Since Adjusted EBITDA excludes some non-cash costs of investing in ScanSource’s business and people, management believes that Adjusted EBITDA shows the profitability from the business operations more clearly. The Adjusted EBITDA margin is calculated as Adjusted EBITDA as a percentage of net sales.
Adjusted return on invested capital ("Adjusted ROIC"): Adjusted ROIC assists management in comparing ScanSource's performance over various reporting periods on a consistent basis because it removes from operating results the impact of items that do not reflect core operating performance. Management believes the calculation of Adjusted ROIC provides useful information to investors and is an additional relevant comparison of its performance. Adjusted ROIC is calculated as Adjusted EBITDA over invested capital. Invested capital is defined as average equity plus average daily funded interest-bearing debt for the period. Management believes the calculation of Adjusted ROIC provides useful information to investors and is an additional relevant comparison of ScanSource's performance during the year.
Free cash flow: ScanSource presents free cash flow as it is a measure used by management to measure our business. ScanSource believes this measure provides more information regarding liquidity and capital resources. Free cash flow is defined as net cash provided by operating activities less capital expenditures.
Net debt: Net debt includes total balance sheet debt less cash and cash equivalents. ScanSource believes this measure is useful in assessing its borrowing capacity.
Additional Non-GAAP Metrics: To evaluate current period performance on a more consistent basis with prior periods, ScanSource discloses non-GAAP SG&A expenses, non-GAAP operating income, non-GAAP pre-tax income, non-GAAP net income, and non-GAAP diluted earnings per share (non-GAAP diluted EPS). These non-GAAP results exclude amortization of intangible assets related to acquisitions, change in fair value of contingent consideration, acquisition and divestiture costs, restructuring costs, and other non-GAAP adjustments. These metrics include the translation impact of changes in foreign currency exchange rates. Non-GAAP metrics are useful in assessing and understanding ScanSource's performance especially when comparing results with previous periods or forecasting performance for future periods.
These non-GAAP financial measures have limitations as analytical tools, and the non-GAAP financial measures that ScanSource reports may not be comparable to similarly titled amounts reported by other companies. Analysis of results and outlook on a non-GAAP basis should be considered in addition to, and not in substitution for or as superior to, measurements of financial performance prepared in accordance with GAAP. A reconciliation of ScanSource's non-GAAP financial information to GAAP is set forth in the Supplementary Information (Unaudited) below.
About ScanSource, Inc.
ScanSource, Inc. (NASDAQ: SCSC) is a leading technology distributor uniquely positioned to address complex, converging technologies and to accelerate growth for channel sales partners across hardware, software as a service (SaaS), connectivity and cloud services. ScanSource enables channel sales partners to deliver converging solutions for their end users. ScanSource uses multiple sales models to offer technology solutions from leading suppliers of specialty technologies, connectivity and cloud services. Founded in 1992 and headquartered in Greenville, South Carolina, ScanSource was named one of the 2025 Best Places to Work in South Carolina and on the Fortune World’s Most Admired Companies 2026 list. ScanSource ranks #875 on the Fortune 1000. For more information, visit www.scansource.com.
ScanSource, Inc. and Subsidiaries |
|||||||
Condensed Consolidated Balance Sheets (Unaudited) |
|||||||
(in thousands, except share data) |
|||||||
|
December 31, 2025 |
|
June 30, 2025* |
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
83,466 |
|
|
$ |
126,157 |
|
Accounts receivable, less allowance of $31,534 at December 31, 2025 and $27,821 at June 30, 2025 |
|
605,411 |
|
|
|
635,521 |
|
Inventories |
|
490,259 |
|
|
|
483,815 |
|
Prepaid income tax expense |
|
11,208 |
|
|
|
2,821 |
|
Prepaid expenses and other current assets |
|
112,727 |
|
|
|
122,138 |
|
Total current assets |
|
1,303,071 |
|
|
|
1,370,452 |
|
Property and equipment, net |
|
32,158 |
|
|
|
31,169 |
|
Goodwill |
|
244,178 |
|
|
|
230,820 |
|
Identifiable intangible assets, net |
|
72,423 |
|
|
|
62,909 |
|
Deferred income taxes |
|
14,172 |
|
|
|
18,769 |
|
Other non-current assets |
|
75,669 |
|
|
|
71,487 |
|
Total assets |
$ |
1,741,671 |
|
|
$ |
1,785,606 |
|
Liabilities and Shareholders’ Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
576,662 |
|
|
$ |
598,595 |
|
Accrued expenses and other current liabilities |
|
67,982 |
|
|
|
71,263 |
|
Current portion of contingent consideration |
|
16,447 |
|
|
|
1,318 |
|
Income taxes payable |
|
274 |
|
|
|
3,927 |
|
Current portion of long-term debt |
|
2,866 |
|
|
|
7,861 |
|
Total current liabilities |
|
664,231 |
|
|
|
682,964 |
|
Long-term debt, net of current portion |
|
99,797 |
|
|
|
128,288 |
|
Long-term portion of contingent consideration |
|
12,153 |
|
|
|
17,782 |
|
Other long-term liabilities |
|
54,604 |
|
|
|
50,163 |
|
Total liabilities |
|
830,785 |
|
|
|
879,197 |
|
Commitments and contingencies |
|
|
|
||||
Shareholders’ equity: |
|
|
|
||||
Preferred stock, no par value; 3,000,000 shares authorized, none issued |
|
— |
|
|
|
— |
|
Common stock, no par value; 45,000,000 shares authorized, 21,645,381 and 22,217,421 shares issued and outstanding at December 31, 2025 and June 30, 2025, respectively |
|
— |
|
|
|
— |
|
Retained earnings |
|
1,027,300 |
|
|
|
1,020,833 |
|
Accumulated other comprehensive loss |
|
(116,414 |
) |
|
|
(114,424 |
) |
Total shareholders’ equity |
|
910,886 |
|
|
|
906,409 |
|
Total liabilities and shareholders’ equity |
$ |
1,741,671 |
|
|
$ |
1,785,606 |
|
|
|
|
|
||||
*Derived from audited financial statements. |
|
|
|
||||
ScanSource, Inc. and Subsidiaries |
|||||||||||||||
Condensed Consolidated Income Statements (Unaudited) |
|||||||||||||||
(in thousands, except per share data) |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Quarter ended December 31, |
|
Six months ended December 31, |
||||||||||||
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
Net sales |
$ |
766,512 |
|
|
$ |
747,497 |
|
|
$ |
1,506,162 |
|
|
$ |
1,523,077 |
|
Cost of goods sold |
|
663,602 |
|
|
|
645,774 |
|
|
|
1,295,779 |
|
|
|
1,319,735 |
|
Gross profit |
|
102,910 |
|
|
|
101,723 |
|
|
|
210,383 |
|
|
|
203,342 |
|
Selling, general and administrative expenses |
|
78,114 |
|
|
|
73,920 |
|
|
|
153,388 |
|
|
|
145,626 |
|
Depreciation expense |
|
1,434 |
|
|
|
2,902 |
|
|
|
3,011 |
|
|
|
5,759 |
|
Intangible amortization expense |
|
4,285 |
|
|
|
5,001 |
|
|
|
8,689 |
|
|
|
9,359 |
|
Restructuring and other charges |
|
— |
|
|
|
313 |
|
|
|
— |
|
|
|
5,381 |
|
Change in fair value of contingent consideration |
|
1,209 |
|
|
|
1,143 |
|
|
|
1,523 |
|
|
|
1,143 |
|
Operating income |
|
17,868 |
|
|
|
18,444 |
|
|
|
43,772 |
|
|
|
36,074 |
|
Interest expense |
|
1,946 |
|
|
|
1,970 |
|
|
|
3,859 |
|
|
|
4,078 |
|
Interest income |
|
(3,363 |
) |
|
|
(2,693 |
) |
|
|
(6,543 |
) |
|
|
(5,352 |
) |
Other (income) expense, net |
|
(136 |
) |
|
|
(543 |
) |
|
|
37 |
|
|
|
(5,325 |
) |
Income before income taxes |
|
19,421 |
|
|
|
19,710 |
|
|
|
46,419 |
|
|
|
42,673 |
|
Provision for income taxes |
|
2,928 |
|
|
|
2,657 |
|
|
|
10,047 |
|
|
|
8,645 |
|
Net income |
$ |
16,493 |
|
|
$ |
17,053 |
|
|
$ |
36,372 |
|
|
$ |
34,028 |
|
|
|
|
|
|
|
|
|
||||||||
Per share data: |
|
|
|
|
|
|
|
||||||||
Net income per common share, basic |
$ |
0.75 |
|
|
$ |
0.72 |
|
|
$ |
1.66 |
|
|
$ |
1.42 |
|
Weighted-average shares outstanding, basic |
|
21,865 |
|
|
|
23,806 |
|
|
|
21,942 |
|
|
|
23,976 |
|
|
|
|
|
|
|
|
|
||||||||
Net income per common share, diluted |
$ |
0.75 |
|
|
$ |
0.70 |
|
|
$ |
1.63 |
|
|
$ |
1.39 |
|
Weighted-average shares outstanding, diluted |
|
22,110 |
|
|
|
24,217 |
|
|
|
22,248 |
|
|
|
24,450 |
|
ScanSource, Inc. and Subsidiaries |
|||||||
Condensed Consolidated Statements of Cash Flows (Unaudited) |
|||||||
(in thousands) |
|||||||
|
Six months ended December 31, |
||||||
|
|
2025 |
|
|
|
2024 |
|
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
36,372 |
|
|
$ |
34,028 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
12,138 |
|
|
|
15,603 |
|
Amortization of debt issue costs |
|
434 |
|
|
|
193 |
|
Provision for doubtful accounts |
|
5,580 |
|
|
|
5,925 |
|
Share-based compensation |
|
6,536 |
|
|
|
5,492 |
|
Deferred income taxes |
|
32 |
|
|
|
2,306 |
|
Change in fair value of contingent consideration |
|
1,523 |
|
|
|
1,143 |
|
Finance lease interest |
|
28 |
|
|
|
48 |
|
Changes in operating assets and liabilities, net of acquisitions: |
|
|
|
||||
Accounts receivable |
|
24,077 |
|
|
|
21,110 |
|
Inventories |
|
(6,618 |
) |
|
|
16,316 |
|
Prepaid expenses and other assets |
|
945 |
|
|
|
(380 |
) |
Other non-current assets |
|
(3,861 |
) |
|
|
3,145 |
|
Accounts payable |
|
(21,383 |
) |
|
|
(64,915 |
) |
Accrued expenses and other liabilities |
|
1,872 |
|
|
|
(1,834 |
) |
Income taxes payable |
|
(3,623 |
) |
|
|
462 |
|
Net cash provided by operating activities |
|
54,052 |
|
|
|
38,642 |
|
Cash flows from investing activities: |
|
|
|
||||
Capital expenditures |
|
(4,370 |
) |
|
|
(4,348 |
) |
Cash paid for business acquisitions, net of cash acquired |
|
(18,358 |
) |
|
|
(56,673 |
) |
Proceeds from sale of business, net of cash transferred |
|
— |
|
|
|
2,569 |
|
Net cash used in investing activities |
|
(22,728 |
) |
|
|
(58,452 |
) |
Cash flows from financing activities: |
|
|
|
||||
Borrowings on revolving credit |
|
141,738 |
|
|
|
26,587 |
|
Repayments on revolving credit |
|
(141,738 |
) |
|
|
(26,636 |
) |
Borrowings on long-term debt |
|
100,000 |
|
|
|
— |
|
Repayments on long-term debt |
|
(133,486 |
) |
|
|
(4,107 |
) |
Repayments on finance lease obligation |
|
(523 |
) |
|
|
(547 |
) |
Debt issuance costs |
|
(1,417 |
) |
|
|
— |
|
Contingent consideration payments |
|
(1,375 |
) |
|
|
— |
|
Exercise of stock options |
|
4,854 |
|
|
|
9,489 |
|
Taxes paid on settlement of equity awards |
|
(2,634 |
) |
|
|
(4,805 |
) |
Common stock repurchased |
|
(38,687 |
) |
|
|
(52,342 |
) |
Net cash used in financing activities |
|
(73,268 |
) |
|
|
(52,361 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
(747 |
) |
|
|
(2,769 |
) |
Decrease in cash and cash equivalents |
|
(42,691 |
) |
|
|
(74,940 |
) |
Cash and cash equivalents at beginning of period |
|
126,157 |
|
|
|
185,460 |
|
Cash and cash equivalents at period end |
$ |
83,466 |
|
|
$ |
110,520 |
|
ScanSource, Inc. and Subsidiaries |
|||||||
Supplementary Information (Unaudited) |
|||||||
(in thousands, except percentages) |
|||||||
|
|
|
|
||||
Non-GAAP Financial Information: |
|||||||
|
Quarter ended December 31, |
||||||
|
|
2025 |
|
|
|
2024 |
|
Reconciliation of Net Income to Adjusted EBITDA: |
|
|
|
||||
Net income (GAAP) |
$ |
16,493 |
|
|
$ |
17,053 |
|
Plus: Interest expense |
|
1,946 |
|
|
|
1,970 |
|
Plus: Income taxes |
|
2,928 |
|
|
|
2,657 |
|
Plus: Depreciation and amortization |
|
5,938 |
|
|
|
8,132 |
|
EBITDA (non-GAAP) |
|
27,305 |
|
|
|
29,812 |
|
Plus: Change in fair value of contingent consideration |
|
1,209 |
|
|
|
1,143 |
|
Plus: Share-based compensation |
|
3,660 |
|
|
|
3,021 |
|
Plus: Acquisition costs (a) |
|
593 |
|
|
|
151 |
|
Plus: Cyberattack restoration costs |
|
53 |
|
|
|
30 |
|
Plus: Restructuring costs |
|
— |
|
|
|
313 |
|
Plus: Legal settlement |
|
— |
|
|
|
1,579 |
|
Plus: Tax recovery |
|
(789 |
) |
|
|
(750 |
) |
Plus: Insurance recovery, net of payments |
|
(838 |
) |
|
|
— |
|
Adjusted EBITDA (numerator for Adjusted ROIC) (non-GAAP) |
$ |
31,193 |
|
|
$ |
35,299 |
|
|
|
|
|
||||
Invested Capital Calculations: |
|
|
|
||||
Equity – beginning of the period |
$ |
914,032 |
|
|
$ |
920,893 |
|
Equity – end of the period |
|
910,886 |
|
|
|
900,662 |
|
Plus: Change in fair value of contingent consideration, net |
|
907 |
|
|
|
861 |
|
Plus: Share-based compensation, net |
|
2,741 |
|
|
|
2,271 |
|
Plus: Acquisition costs (a) |
|
593 |
|
|
|
151 |
|
Plus: Cyberattack restoration costs, net |
|
39 |
|
|
|
23 |
|
Plus: Restructuring costs, net |
|
— |
|
|
|
236 |
|
Plus: Insurance recovery, net |
|
(629 |
) |
|
|
— |
|
Plus: Legal settlement, net |
|
— |
|
|
|
1,189 |
|
Plus: Tax recovery, net |
|
(2,991 |
) |
|
|
(2,560 |
) |
Average equity |
|
912,789 |
|
|
|
911,863 |
|
Average funded debt (b) |
|
131,470 |
|
|
|
142,143 |
|
Invested capital (denominator for Adjusted ROIC) (non-GAAP) |
$ |
1,044,259 |
|
|
$ |
1,054,006 |
|
|
|
|
|
||||
Adjusted return on invested capital ratio (Adjusted ROIC), annualized (c) |
|
11.9 |
% |
|
|
13.3 |
% |
|
|
|
|
||||
(a) Acquisition costs are generally non-deductible for tax purposes. |
|
|
|
||||
(b) Average funded debt is calculated as the average daily amounts outstanding on short-term and long-term interest-bearing debt. |
|||||||
(c) The annualized adjusted EBITDA amount is divided by days in the quarter times 365 days per year, or 366 days for leap year. There were 92 days in the current quarter and prior-year quarter. |
|||||||
ScanSource, Inc. and Subsidiaries |
|||||||||
Supplementary Information (Unaudited) |
|||||||||
|
|
|
|
||||||
Net Sales by Segment: |
|
|
|
||||||
|
Quarter ended December 31, |
|
|
||||||
|
|
2025 |
|
|
2024 |
|
% Change |
||
Specialty Technology Solutions: |
(in thousands) |
|
|
||||||
Net sales, reported |
$ |
741,540 |
|
|
$ |
723,277 |
|
2.5 |
% |
Foreign exchange impact (a) |
|
(4,412 |
) |
|
|
— |
|
|
|
Less: Acquisitions |
|
(2,034 |
) |
|
|
— |
|
|
|
Non-GAAP net sales |
$ |
735,094 |
|
|
$ |
723,277 |
|
1.6 |
% |
|
|
|
|
|
|
||||
Intelisys & Advisory: |
|
|
|
|
|
||||
Non-GAAP net sales |
$ |
24,972 |
|
|
$ |
24,220 |
|
3.1 |
% |
|
|
|
|
|
|
||||
Consolidated: |
|
|
|
|
|
||||
Net sales, reported |
$ |
766,512 |
|
|
$ |
747,497 |
|
2.5 |
% |
Foreign exchange impact (a) |
|
(4,412 |
) |
|
|
— |
|
|
|
Less: Acquisitions |
|
(2,034 |
) |
|
|
— |
|
|
|
Non-GAAP net sales |
$ |
760,066 |
|
|
$ |
747,497 |
|
1.7 |
% |
|
|
|
|
|
|
||||
(a) Year-over-year net sales growth rate excluding the translation impact of changes in foreign currency exchange rates. Calculated by translating the net sales for the quarter ended December 31, 2025 into U.S. dollars using the average foreign exchange rates for the quarter ended December 31, 2024. |
|||||||||
| Net Sales by Revenue Type: |
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|||
|
|
Quarter ended December 31, |
|
|
|||||
|
|
2025 |
|
2024 |
|
% Change |
|||
|
|
(in thousands) |
|
|
|||||
Net sales by product/service: |
|
|
|
|
|
|
|||
Products and services |
|
$ |
724,489 |
|
$ |
711,235 |
|
1.9 |
% |
Recurring revenue(a) |
|
|
42,023 |
|
|
36,262 |
|
15.9 |
% |
|
|
$ |
766,512 |
|
$ |
747,497 |
|
2.5 |
% |
(a) Recurring revenue represents primarily agency commissions, managed connectivity, SaaS, subscriptions, and hardware rentals. |
|||||||||
|
|
|
|
|
|
|
|||
ScanSource, Inc. and Subsidiaries |
|||||||||
Supplementary Information (Unaudited) |
|||||||||
Net Sales by Geography: |
|
|
|
||||||
|
Quarter ended December 31, |
|
|
||||||
|
|
2025 |
|
|
2024 |
|
% Change |
||
United States: |
(in thousands) |
|
|
||||||
Net sales, reported (a) |
$ |
707,366 |
|
|
$ |
687,111 |
|
2.9 |
% |
Less: Acquisitions |
|
(2,034 |
) |
|
|
— |
|
|
|
Non-GAAP net sales |
$ |
705,332 |
|
|
$ |
687,111 |
|
2.7 |
% |
|
|
|
|
|
|
||||
Brazil: |
|
|
|
|
|
||||
Net sales, reported (b) |
$ |
59,146 |
|
|
$ |
60,386 |
|
(2.1 |
)% |
Foreign exchange impact (c) |
|
(4,412 |
) |
|
|
— |
|
|
|
Non-GAAP net sales |
$ |
54,734 |
|
|
$ |
60,386 |
|
(9.4 |
)% |
|
|
|
|
|
|
||||
Consolidated: |
|
|
|
|
|
||||
Net sales, reported |
$ |
766,512 |
|
|
$ |
747,497 |
|
2.5 |
% |
Foreign exchange impact (c) |
|
(4,412 |
) |
|
|
— |
|
|
|
Less: Acquisitions |
|
(2,034 |
) |
|
|
— |
|
|
|
Non-GAAP net sales |
$ |
760,066 |
|
|
$ |
747,497 |
|
1.7 |
% |
|
|
|
|
|
|
||||
(a) Includes net sales in Canada that are supported by U.S. operations and represent less than 5.0% of United States net sales for the quarters ended December 31, 2025 and 2024. |
|||||||||
(b) Includes net sales from outside of the United States, Canada and Brazil, which represent less than 0.1% of Brazil net sales for the quarters ended December 31, 2025 and 2024. |
|||||||||
(c) Year-over-year net sales growth rate excluding the translation impact of changes in foreign currency exchange rates. Calculated by translating the net sales for the quarter ended December 31, 2025 into U.S. dollars using the average foreign exchange rates for the quarter ended December 31, 2024. |
|||||||||
| Free Cash Flow: |
|
|
|
|
|
||||||||||
|
Quarter ended December 31, |
|
Six months ended December 31, |
||||||||||||
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
GAAP operating cash flow |
$ |
30,838 |
|
|
$ |
(6,190 |
) |
|
$ |
54,052 |
|
|
$ |
38,642 |
|
Less: Capital expenditures |
|
(1,975 |
) |
|
|
(1,974 |
) |
|
|
(4,370 |
) |
|
|
(4,348 |
) |
Free cash flow (non-GAAP) |
$ |
28,863 |
|
|
$ |
(8,164 |
) |
|
$ |
49,682 |
|
|
$ |
34,294 |
|
|
|
|
|
|
|
|
|
||||||||
ScanSource, Inc. and Subsidiaries |
|||||||||||||||||||||||||||||||
Supplementary Information (Unaudited) |
|||||||||||||||||||||||||||||||
(in thousands, except per share data) |
|||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Reconciliation of Other Non-GAAP Financial Information: |
|||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Quarter ended December 31, 2025 |
||||||||||||||||||||||||||||||
|
|
GAAP Measure |
|
Intangible amortization expense |
|
Change in fair value of contingent consideration |
|
Acquisition costs (a) |
|
Restructuring costs |
|
Tax recovery |
|
Cyberattack restoration costs |
|
Insurance Recovery |
|
Non-GAAP measure |
|||||||||||||
|
(in thousands, except per share data) |
||||||||||||||||||||||||||||||
SG&A expenses |
|
$ |
78,114 |
|
$ |
— |
|
$ |
— |
|
$ |
(593 |
) |
|
$ |
— |
|
$ |
789 |
|
|
$ |
(53 |
) |
|
$ |
— |
|
|
$ |
78,257 |
Operating income |
|
|
17,868 |
|
|
4,285 |
|
|
1,209 |
|
|
593 |
|
|
|
— |
|
|
(789 |
) |
|
|
53 |
|
|
|
— |
|
|
|
23,219 |
Pre-tax income |
|
|
19,421 |
|
|
4,285 |
|
|
1,209 |
|
|
593 |
|
|
|
— |
|
|
(789 |
) |
|
|
53 |
|
|
|
(838 |
) |
|
|
23,934 |
Net income |
|
|
16,493 |
|
|
3,199 |
|
|
907 |
|
|
593 |
|
|
|
— |
|
|
(2,991 |
) |
|
|
39 |
|
|
|
(629 |
) |
|
|
17,611 |
Diluted EPS |
|
$ |
0.75 |
|
$ |
0.14 |
|
$ |
0.04 |
|
$ |
0.03 |
|
|
$ |
— |
|
$ |
(0.14 |
) |
|
$ |
— |
|
|
$ |
(0.03 |
) |
|
$ |
0.80 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Quarter ended December 31, 2024 |
||||||||||||||||||||||||||||||
|
|
GAAP Measure |
|
Intangible amortization expense |
|
Change in fair value of contingent consideration |
|
Acquisition costs (a) |
|
Restructuring costs |
|
Tax recovery |
|
Cyberattack restoration costs |
|
Legal Settlement |
|
Non-GAAP measure |
|||||||||||||
|
(in thousands, except per share data) |
||||||||||||||||||||||||||||||
SG&A expense |
|
$ |
73,920 |
|
$ |
— |
|
$ |
— |
|
$ |
(151 |
) |
|
$ |
— |
|
$ |
750 |
|
|
$ |
(30 |
) |
|
$ |
(1,579 |
) |
|
$ |
72,910 |
Operating income |
|
|
18,444 |
|
|
5,001 |
|
|
1,143 |
|
|
151 |
|
|
|
313 |
|
|
(750 |
) |
|
|
30 |
|
|
|
1,579 |
|
|
|
25,911 |
Pre-tax income |
|
|
19,710 |
|
|
5,001 |
|
|
1,143 |
|
|
151 |
|
|
|
313 |
|
|
(750 |
) |
|
|
30 |
|
|
|
1,579 |
|
|
|
27,177 |
Net income |
|
|
17,053 |
|
|
3,745 |
|
|
861 |
|
|
151 |
|
|
|
236 |
|
|
(2,560 |
) |
|
|
23 |
|
|
|
1,189 |
|
|
|
20,698 |
Diluted EPS |
|
$ |
0.70 |
|
$ |
0.15 |
|
$ |
0.04 |
|
$ |
0.01 |
|
|
$ |
0.01 |
|
$ |
(0.11 |
) |
|
$ |
— |
|
|
$ |
0.05 |
|
|
$ |
0.85 |
(a) Acquisition costs for the quarters ended December 31, 2025 and December 31, 2024 are generally nondeductible for tax purposes. |
|||||||||||||||||||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20260205634051/en/
Contacts
Steve Jones
Senior EVP, Chief Financial Officer
ScanSource, Inc.
(864) 286-4302
Mary M. Gentry
SVP, Finance and Treasurer
ScanSource, Inc.
(864) 286-4892