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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
Form 8-K
 
CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 8, 2025

 ScanSource, Inc.
(Exact name of registrant as specified in its charter)
SC 00-26926   57-0965380
(State or other jurisdiction
of incorporation)		 (Commission File Number)   (IRS Employer
Identification No.)

6 Logue Court, Greenville, SC 29615
(Address of principal executive offices, including zip code)
864-288-2432
(Registrant’s telephone number, including area code)
Title of Each Class Trading Symbol Name of Each Exchange on Which Registered
Common Stock, no par value SCSC NASDAQ Global Select Market
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   ☐   


Item 2.02. Results of Operations and Financial Condition

On May 8, 2025, ScanSource, Inc. (the "Company") issued a press release announcing its financial results for its third quarter ended March 31, 2025. A copy of the press release and accompanying Earnings Infographic are attached as Exhibits 99.1 and 99.2 hereto, incorporated herein by reference and also made available through the Company’s website at www.scansource.com. An updated investor presentation will be made available on the Company's website within approximately two weeks.

The information in Item 2.02 of this Report, including the Exhibits 99.1 and 99.2 hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any other filing under the Securities Act of 1933, as amended, or the Exchange Act.


Item 9.01. Financial Statements and Exhibits

(d) Exhibits

99.1 – Press release issued by ScanSource, Inc. on May 8, 2025. The information contained in the attached exhibit is unaudited and should be read in conjunction with the Company’s annual and quarterly reports filed with the Securities and Exchange Commission.

99.2 – Earnings Infographic for the financial results conference call held on May 8, 2025.  The information contained in the attached exhibit is unaudited and should be read in conjunction with the Company’s annual and quarterly reports filed with the Securities and Exchange Commission.

Exhibit
Number		 Description
99.1
99.2
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
        ScanSource, Inc.
       
Date: May 8, 2025         /s/ STEVE JONES
          Steve Jones
          Senior Executive Vice President and Chief Financial Officer

EX-99.1 2 scscexhibit9913312025.htm EX-99.1 Document

Exhibit 99.1

FOR IMMEDIATE RELEASE
Contact:    
Steve Jones   Mary M. Gentry
Senior EVP, Chief Financial Officer SVP, Finance and Treasurer
ScanSource, Inc.   ScanSource, Inc.
(864) 286-4302   (864) 286-4892

SCANSOURCE REPORTS THIRD QUARTER RESULTS
Announces New $200M Share Repurchase Authorization

GREENVILLE, SC -- May 8, 2025 -- ScanSource, Inc. (NASDAQ: SCSC), a leading hybrid distributor connecting devices to the cloud, today announced financial results for the third quarter ended March 31, 2025.

Third Quarter Summary
Q3 FY25 Q3 FY24 Change
(in thousands, except percentages and per share data)
Select reported measures:
Net sales $ 704,847  $ 752,599  -6.3%
Gross profit $ 100,202  $ 94,481  6.1%
Gross profit margin % 14.2  % 12.6  % 166bp
Operating income $ 22,339  $ 17,542  27.3%
GAAP net income $ 17,431  $ 12,806  36.1%
GAAP diluted EPS $ 0.74  $ 0.50  48.0%
Select Non-GAAP measures*:
Adjusted EBITDA $ 35,053  $ 33,095  5.9%
Adjusted EBITDA margin % 4.97  % 4.40  % 57bp
Non-GAAP net income $ 20,298  $ 17,461  16.2%
Non-GAAP diluted EPS $ 0.86  $ 0.69  24.6%
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.

“Our business performed well this quarter with both segments achieving year-over-year gross profit growth and higher EBITDA margins,” said Mike Baur, Chair and CEO of ScanSource, Inc. “For our third quarter, we delivered strong free cash flow and EPS growth including the benefit from our acquisitions. Hardware demand improved late in the quarter, along with a return of large deals.”

Quarterly Results

Net sales for the third quarter of fiscal year 2025 totaled $704.8 million, down 6.3% year-over-year, or down 6.4% for non-GAAP net sales. Net sales for products and services decreased 8.2% year-over-year, while recurring revenue increased 41.0% year-over-year including acquisitions. For Specialty Technology Solutions, third quarter net sales of $678.4 million decreased 7.0% year-over-year primarily due to lower net sales in Brazil. In North America, most of the technologies in this segment had year-over-year net sales growth. Intelisys & Advisory net sales for the third quarter increased 16.0% year-over-year to $26.4 million reflecting the addition of an acquisition and Intelisys net sales growth.

Gross profit for the third quarter of fiscal year 2025 increased 6.1% year-over-year to $100.2 million with a gross profit margin of 14.2% versus 12.6% in the prior-year quarter. The higher gross profit margin reflects a higher contribution of recurring revenue in our overall revenue mix, which is recorded on a net basis and therefore contributes to a higher gross profit margin, and higher vendor program recognition. For the third quarter of fiscal year 2025, the percentage of gross profit from recurring revenue increased to 36.0% from 29.3% for the prior-year period.

1

For the third quarter of fiscal year 2025, operating income was $22.3 million compared to $17.5 million in the prior-year quarter. Third quarter fiscal year 2025 non-GAAP operating income increased to $26.6 million from $25.3 million in the prior-year quarter.

On a GAAP basis, net income for the third quarter of fiscal year 2025 totaled $17.4 million, or $0.74 per diluted share, compared to net income of $12.8 million, or $0.50 per diluted share, for the prior-year quarter. Third quarter fiscal year 2025 non-GAAP net income totaled $20.3 million, or $0.86 per diluted share, compared to $17.5 million, or $0.69 per diluted share, for the prior-year quarter. On a non-GAAP basis, adjusted EBITDA for the third quarter of fiscal year 2025 increased 5.9% to $35.1 million, or 4.97% of net sales, compared to $33.1 million, or 4.40% of net sales, for the prior-year quarter.

Balance Sheet and Cash Flow

As of March 31, 2025, ScanSource had cash and cash equivalents of $146.3 million and total debt of $138.0 million.

For the first nine months of fiscal year 2025, ScanSource generated $104.7 million of operating cash flow and $98.9 million of free cash flow (non-GAAP). ScanSource also had share repurchases of $81.3 million for the first nine months of fiscal year 2025.

Annual Financial Outlook for Fiscal Year 2025

ScanSource updates its expectations for net sales and adjusted EBITDA for the full fiscal year ended June 30, 2025 and replaces previously provided guidance.

FY25 Annual Outlook Prior FY25 Annual Outlook
Net sales Approximately $3 billion $3.1 billion to $3.5 billion
Adjusted EBITDA (non-GAAP) $140 million to $145 million $140 million to $160 million
Free cash flow (non-GAAP) At least $70 million At least $70 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.

Share Repurchase Authorization

ScanSource announces a new $200 million authorization by its Board of Directors to purchase shares of its common stock. This supplements the existing authorization of which approximately $42 million remained outstanding as of March 31, 2025. Repurchases may be made at management's discretion through open market or privately negotiated transactions, including pursuant to one or more Rule 10b5-1 trading plans. This share repurchase authorization does not obligate ScanSource to purchase any particular amount of common stock, does not include a time limit on purchases, and may be suspended at any time.

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, May 8, 2025, 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
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This press release contains “forward-looking” statements, including ScanSource's FY25 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 customers and suppliers, changes in interest and exchange rates and regulatory regimes impacting ScanSource's international operations, risk to the business from a cyberattack, a failure of IT systems, failure to hire and retain quality employees, loss of ScanSource's major customers, relationships with key suppliers and customers or a termination or a modification of the terms under which it operates with these key suppliers and customers, 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, 2024. 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, changes in fair value of contingent considerations, 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 cash flows from 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, 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.
3


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 hybrid distributor connecting devices to the cloud and accelerating growth for channel partners across hardware, software as a service (SaaS), connectivity and cloud. ScanSource enables channel partners to deliver solutions for their end customers to address changing buying and consumption patterns. ScanSource uses multiple sales models to offer hybrid distribution solutions from leading suppliers of specialty technologies, connectivity and cloud. Founded in 1992 and headquartered in Greenville, South Carolina, ScanSource was named one of the 2024 Best Places to Work in South Carolina and on FORTUNE magazine’s 2025 List of World’s Most Admired Companies. ScanSource ranks #776 on the Fortune 1000. For more information, visit www.scansource.com.

4
SCANSOURCE REPORTS THIRD QUARTER RESULTS

ScanSource, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands, except share data)
March 31, 2025 June 30, 2024*
Assets
Current assets:
Cash and cash equivalents $ 146,287  $ 185,460 
Accounts receivable, less allowance of $27,032 at March 31, 2025
and $20,684 at June 30, 2024
 562,820  581,523 
Inventories 476,206  512,634 
Prepaid expenses and other current assets 124,955  125,082 
Total current assets 1,310,268  1,404,699 
Property and equipment, net 29,997  33,501 
Goodwill 228,835  206,301 
Identifiable intangible assets, net 67,815  37,634 
Deferred income taxes 17,947  19,902 
Other non-current assets 70,346  76,995 
Total assets $ 1,725,208  $ 1,779,032 
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable $ 540,765  $ 587,984 
Accrued expenses and other current liabilities 68,263  65,616 
Current portion of contingent consideration 1,737  — 
Income taxes payable 13,224  7,895 
Current portion of long-term debt 7,861  7,857 
Total current liabilities 631,850  669,352 
Long-term debt, net of current portion 130,163  136,149 
Borrowings under revolving credit facility —  50 
Long-term portion of contingent consideration 17,510  — 
Other long-term liabilities 43,939  49,226 
Total liabilities 823,462  854,777 
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, 22,894,413 and 24,243,848 shares issued and outstanding at March 31, 2025 and June 30, 2024, respectively
 —  26,370 
Retained earnings 1,023,399  1,013,738 
Accumulated other comprehensive loss (121,653) (115,853)
Total shareholders’ equity 901,746  924,255 
Total liabilities and shareholders’ equity $ 1,725,208  $ 1,779,032 
*Derived from audited financial statements.

5
SCANSOURCE REPORTS THIRD QUARTER RESULTS
ScanSource, Inc. and Subsidiaries
Condensed Consolidated Income Statements (Unaudited)
(in thousands, except per share data)
  Quarter ended March 31, Nine months ended March 31,
  2025 2024 2025 2024
Net sales $ 704,847  $ 752,599  $ 2,227,924  $ 2,513,696 
Cost of goods sold 604,645  658,118  1,924,380  2,211,958 
Gross profit 100,202  94,481  303,544  301,738 
Selling, general and administrative expenses 69,698  66,574  215,324  208,930 
Depreciation expense 2,320  2,690  8,079  8,449 
Intangible amortization expense 4,941  3,752  14,300  11,982 
Restructuring and other charges —  3,923  5,381  3,923 
Change in fair value of contingent consideration 904  —  2,047  — 
Operating income 22,339  17,542  58,413  68,454 
Interest expense 1,836  2,001  5,914  10,947 
Interest income (2,841) (2,652) (8,193) (6,096)
Gain on sale of business —  —  —  (14,533)
Other (income) expense, net (882) 241  (6,206) 991 
Income before income taxes 24,226  17,952  66,898  77,145 
Provision for income taxes 6,795  5,146  15,440  16,181 
Net income $ 17,431  $ 12,806  $ 51,458  $ 60,964 
Per share data:
Net income per common share, basic $ 0.75  $ 0.51  $ 2.17  $ 2.44 
Weighted-average shares outstanding, basic 23,275  25,025  23,746  24,982 
Net income per common share, diluted $ 0.74  $ 0.50  $ 2.13  $ 2.41 
Weighted-average shares outstanding, diluted 23,604  25,437  24,165  25,291 


6
SCANSOURCE REPORTS THIRD QUARTER RESULTS
ScanSource, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in thousands)
Nine months ended March 31,
2025 2024
Cash flows from operating activities:
Net income $ 51,458  $ 60,964 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Gain on sale of business —  (14,533)
Depreciation and amortization 23,095  21,217 
Amortization of debt issue costs 289  289 
Provision for doubtful accounts 7,699  5,863 
Share-based compensation 8,388  7,729 
Deferred income taxes 1,938  (1,565)
Change in fair value of contingent consideration 2,047  — 
Finance lease interest 69  70 
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable 13,441  143,774 
Inventories 34,576  226,878 
Prepaid expenses and other assets 8,013  (28,163)
Other non-current assets 4,344  6,022 
Accounts payable (50,359) (117,860)
Accrued expenses and other liabilities (5,632) 11,338 
Income taxes payable 5,338  (5,115)
Net cash provided by operating activities 104,704  316,908 
Cash flows from investing activities:
Capital expenditures (5,769) (7,285)
Cash paid for business acquisitions, net of cash acquired (56,673) — 
Proceeds from sale of business, net of cash transferred 2,569  17,978 
Net cash (used in) provided by investing activities (59,873) 10,693 
Cash flows from financing activities:
Borrowings on revolving credit 38,336  1,242,915 
Repayments on revolving credit (38,386) (1,421,895)
Repayments on long-term debt, net (5,982) (5,040)
Borrowings (repayments) on finance lease obligation (818) (585)
Exercise of stock options 9,504  4,626 
Taxes paid on settlement of equity awards (4,819) (2,794)
Common stock repurchased (81,259) (21,168)
Net cash used in financing activities (83,424) (203,941)
Effect of exchange rate changes on cash and cash equivalents (580) (788)
(Decrease) increase in cash and cash equivalents (39,173) 122,872 
Cash and cash equivalents at beginning of period 185,460  36,178 
Cash and cash equivalents at period end $ 146,287  $ 159,050 




7
SCANSOURCE REPORTS THIRD QUARTER RESULTS
ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
(in thousands, except percentages)
Non-GAAP Financial Information:
Quarter ended March 31,
2025 2024
Reconciliation of Net Income to Adjusted EBITDA:
Net income (GAAP) $ 17,431 $ 12,806
Plus: Interest expense 1,836 2,001
Plus: Income taxes 6,795 5,146
Plus: Depreciation and amortization 7,492 6,742
EBITDA (non-GAAP) 33,554 26,695
Plus: Change in fair value of contingent consideration 904 — 
Plus: Share-based compensation 2,896 2,388
Plus: Acquisition and divestiture costs 204 511
Plus: Cyberattack restoration costs 71 93
Plus: Restructuring costs — 3,923
Plus: Tax recovery (1,820) (515)
Plus: Insurance recovery, net of payments (756) —
Adjusted EBITDA (numerator for Adjusted ROIC) (non-GAAP) $ 35,053 $ 33,095
Invested Capital Calculations:
Equity – beginning of the period $ 900,662 $ 953,601
Equity – end of the period 901,746 944,051
Plus: Change in fair value of contingent consideration, net 681 —
Plus: Share-based compensation, net 2,176 1,784
Plus: Acquisition and divestiture costs 204 511
Plus: Cyberattack restoration costs, net 54 69
Plus: Restructuring costs, net — 2,935
Plus: Insurance recovery, net (570) —
Plus: Tax recovery, net (1,201) (1,648)
Average equity 901,876 950,652
Average funded debt (a)
 140,207 153,131
Invested capital (denominator for Adjusted ROIC) (non-GAAP) $ 1,042,083 $ 1,103,783
Adjusted return on invested capital ratio (Adjusted ROIC), annualized(b)
 13.6% 12.1%
(a) Average funded debt is calculated as the average daily amounts outstanding on short-term and long-term interest-bearing debt.
(b) 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 90 days in the current quarter and 91 days in the prior-year quarter.


8
SCANSOURCE REPORTS THIRD QUARTER RESULTS
ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
Net Sales by Segment:
Quarter ended March 31,
2025 2024 % Change
Specialty Technology Solutions: (in thousands)
Net sales, reported $ 678,433  $ 729,834  (7.0) %
Foreign exchange impact (a)
 8,702  — 
Less: Acquisitions (6,660) — 
Non-GAAP net sales $ 680,475  $ 729,834  (6.8) %
Intelisys & Advisory:
Net sales, reported $ 26,414  $ 22,765  16.0  %
Foreign exchange impact (a)
 3  — 
Less: Acquisitions (2,662) — 
Non-GAAP net sales $ 23,755  $ 22,765  4.3  %
Consolidated:
Net sales, reported $ 704,847  $ 752,599  (6.3) %
Foreign exchange impact (a)
 8,705  — 
Less: Acquisitions (9,322) — 
Non-GAAP net sales $ 704,230  $ 752,599  (6.4) %
(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 March 31, 2025 into U.S. dollars using the average foreign exchange rates for the quarter ended March 31, 2024.

ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
Net Sales by Revenue Type:
Quarter ended March 31,
2025 2024 % Change
(in thousands)
Revenue by product/service:
Products and services $ 665,229  $ 724,505  (8.2) %
Recurring revenue(a)
 39,618  28,094  41.0  %
$ 704,847  $ 752,599  (6.3) %
(a) Recurring revenue represents primarily agency commissions, SaaS, subscriptions, and hardware rentals.






9
SCANSOURCE REPORTS THIRD QUARTER RESULTS
ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
Net Sales by Geography:
Quarter ended March 31,
2025 2024 % Change
United States and Canada: (in thousands)
Net sales, as reported $ 656,964  $ 671,246  (2.1) %
Less: Acquisitions (9,322) — 
Non-GAAP net sales $ 647,642  $ 671,246  (3.5) %
Brazil:
Net sales, reported(a)
 $ 47,883  $ 81,353  (41.1) %
Foreign exchange impact(b)
 8,705  — 
Non-GAAP net sales $ 56,588  $ 81,353  (30.4) %
Consolidated:
Net sales, reported $ 704,847  $ 752,599  (6.3) %
Foreign exchange impact(b)
 8,705  — 
Less: Acquisitions (9,322) — 
Non-GAAP net sales $ 704,230  $ 752,599  (6.4) %
(a) Countries outside of the United States, Canada and Brazil represent $0.1 million, or 0.2% of sales, for the quarter ended March 31, 2025 and $0.1 million, or 0.2% of sales, for the quarter ended March 31, 2024.
(b) 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 March 31, 2025 into U.S. dollars using the average foreign exchange rates for the quarter ended March 31, 2024.
Free Cash Flow:
Quarter ended March 31, Nine months ended March 31,
2025 2024 2025 2024
GAAP operating cash flow $ 66,058  $ 160,152  $ 104,704  $ 316,908 
Less: Capital expenditures (1,420) (2,420) (5,769) (7,285)
Free cash flow (non-GAAP) $ 64,638  $ 157,732  $ 98,935  $ 309,623 












10
SCANSOURCE REPORTS THIRD QUARTER RESULTS
ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
(in thousands, except per share data)
Reconciliation of Other Non-GAAP Financial Information:
Quarter ended March 31, 2025
GAAP Measure Intangible amortization expense Change in fair value of contingent consideration
Acquisition & divestiture costs (a)
 Restructuring costs Insurance recovery, net Tax recovery Cyberattack restoration costs Non-GAAP measure
(in thousands, except per share data)
SG&A expenses $69,698 $— $— $(204) $— $— $1,820 $(71) $71,243
Operating income 22,339 4,941 904 204 — — (1,820) 71 26,639
Pre-tax income 24,226 4,941 904 204 — (756) (1,820) 71 27,770
Net income 17,431 3,699 681 204 — (570) (1,201) 54 20,298
Diluted EPS $0.74 $0.16 $0.03 $0.01 $— $(0.02) $(0.05) $— $0.86
Quarter ended March 31, 2024
GAAP Measure Intangible amortization expense Change in fair value of contingent consideration
Acquisition & divestiture costs (a)
 Restructuring costs Insurance recovery, net Tax recovery Cyberattack restoration costs Non-GAAP measure
(in thousands, except per share data)
SG&A expense $66,574 $— $— $(511) $(3,923) $— $515 $(93) $66,485
Operating income 17,542 3,752 — 511 3,923 — (515) 93 25,306
Pre-tax income 17,952 3,752 — 511 3,923 — (515) 93 25,716
Net income 12,806 2,788 — 511 2,935 — (1,648) 69 17,461
Diluted EPS $0.50 $0.11 $— $0.02 $0.12 $— $(0.06) $— $0.69
 
(a) Acquisition and divestiture costs for the quarters ended March 31, 2025 and March 31, 2024 are generally nondeductible for tax purposes.
(b) Reflects gain on the sale of UK-based intY business. This transaction resulted in a capital loss for tax purposes. ScanSource did not record a tax provision on the capital loss since there were no offsetting capital gains.






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EX-99.2 3 scansourceearningsinfogr.htm EX-99.2 scansourceearningsinfogr
Fiscal Third Quarter 2025 Earnings Key Highlights © ScanSource 2025 Consolidated Our business performed well this quarter with both segments achieving year-over-year gross profit growth and higher EBITDA margins. For our third quarter, we delivered strong free cash flow and EPS growth including the benefit from our acquisitions. Hardware demand improved late in the quarter, along with a return of large deals.” Mike Baur Chair and CEO, ScanSource, Inc. Gross Profit Growth in Both Segments and Strong EPS Growth Resourcive and Advantix Acquisitions Added to Profitable Growth Hardware Demand Improved, Along with a Return of Large Deals Gross Profit Growing Faster Than Sales Specialty Technology Solutions Segment Intelisys & Advisory Segment Net Sales -6% Y/Y $705M Gross Profit +6% Y/Y $100M, 14.2% margin STS, Net Sales -7% Y/Y $678M STS, Gross Profit +3% Y/Y $74M, 10.9% margin I&A, Net Sales +16% Y/Y $26M I&A, Gross Profit +16% Y/Y $26M, 99.2% margin

 
* Non-GAAP measure For further financial data, non-GAAP financial disclosures and cautionary language regarding forward-looking statements, please refer to the following pages and ScanSource’s third quarter fiscal year 2025 news release issued on May 8, 2025, which accompanies this presentation and is available at www.scansource.com in the Investor Relations section [click here]. Third Quarter Operating Metrics Mid-Term Goals Mid-term: 3-to-4-year time frame Fiscal Year 2025 Annual Outlook updated May 8, 2025 © ScanSource 2025 2 Net Sales Approximately $3 billion Adjusted EBITDA* $140 million to $145 million Free Cash Flow* At least $70 million Recurring Revenue as % of Gross Profit Adjusted ROIC* Adjusted EBITDA Margin* Net Sales Growth per year Building to 30%+ Mid Teens4.5%-5%5%-7.5% $0.74 per share GAAP Diluted EPS +48% Y/Y $35.1M, +6%Y/Y Adjusted EBITDA* 4.97% Adjusted EBITDA Margin* $105M YTD Operating Cash Flow $99M YTD Free Cash Flow* $0.86 per share Non-GAAP Diluted EPS* +25% Y/Y (0.1)x Net Debt* to TTM Adjusted EBITDA* 13.6% Adjusted ROIC* $29M in Q3 share repurchases Well-Positioned with Resilient Business Model and Strong Balance Sheet

 
Forward-Looking Statements This Earnings Infographic and supporting materials contain “forward-looking” statements, including ScanSource's FY25 annual outlook and mid-term goals, 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 customers and suppliers, changes in interest and exchange rates and regulatory regimes impacting ScanSource's international operations, risk to the business from a cyberattack, a failure of IT systems, failure to hire and retain quality employees, loss of ScanSource's major customers, relationships with key suppliers and customers or a termination or a modification of the terms under which it operates with these key suppliers and customers, 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, 2024, and subsequent reports on Form 10-Q, filed with the Securities and Exchange Commission. 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 Earnings Infographic 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 measures, including non-GAAP SG&A expenses, non-GAAP operating income, non-GAAP operating income margin, non-GAAP pre-tax income, non-GAAP net income, non-GAAP diluted EPS, adjusted EBITDA, adjusted EBITDA margin, net debt, adjusted ROIC, free cash flow and net sales in constant currency excluding acquisitions and divestitures (organic growth). A reconciliation of the Company's non-GAAP financial information to GAAP financial information is provided in the following supporting materials and in the Company’s Form 8-K, filed with the SEC, with the quarterly earnings press release for the period indicated. Please see the “Non-GAAP Financial Information” section in the quarterly earnings press release for additional description of ScanSource’s non-GAAP measures. ScanSource discloses forward-looking information that is not presented in accordance with GAAP with respect to adjusted EBITDA, adjusted EBITDA margin, adjusted ROIC, and free cash flow. ScanSource believes that a quantitative reconciliation of such forward-looking information to the most directly comparable GAAP financial measure 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 measure is not provided. 3