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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): November 6, 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 November 6, 2025, ScanSource, Inc. (the "Company") issued a press release announcing its financial results for its first quarter ended September 30, 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 November 6, 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 November 6, 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: November 6, 2025         /s/ STEVE JONES
          Steve Jones
          Senior Executive Vice President and Chief Financial Officer

EX-99.1 2 scscexhibit9919302025.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 FIRST QUARTER RESULTS
Achieves Double-Digit EPS Growth and Strong Q1 Free Cash Flow

GREENVILLE, SC -- November 6, 2025 -- ScanSource, Inc. (NASDAQ: SCSC), a leading technology distributor uniquely positioned to address complex, converging technologies, today announced financial results for the first quarter ended September 30, 2025.

First Quarter Summary
Q1 FY26 Q1 FY25 Change
(in thousands, except percentages and per share data)
Select reported measures:
Net sales $ 739,650  $ 775,580  -4.6%
Gross profit $ 107,473  $ 101,619  5.8%
Gross profit margin % 14.5  % 13.1  % 143bp
Operating income $ 25,903  $ 17,630  46.9%
GAAP net income $ 19,878  $ 16,974  17.1%
GAAP diluted EPS $ 0.89  $ 0.69  29.0%
Select Non-GAAP measures*:
Adjusted EBITDA $ 38,590  $ 35,666  8.2%
Adjusted EBITDA margin % 5.22  % 4.60  % 62bp
Non-GAAP net income $ 23,685  $ 20,823  13.7%
Non-GAAP diluted EPS $ 1.06  $ 0.84  26.2%
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 team delivered double-digit EPS growth and strong free cash flow in the first quarter,” said Mike Baur, Chair and CEO, ScanSource, Inc. “With our new three-year strategic goals as our guide, we are executing our strategic plan.”

Quarterly Results

Net sales for the first quarter of fiscal year 2026 totaled $739.7 million, down 4.6% year-over-year. Net sales for products and services decreased 5.2% year-over-year, and recurring revenue increased 8.0% year-over-year including acquisitions. For Specialty Technology Solutions, first quarter net sales of $715.4 million decreased 4.9% year-over-year, driven primarily by lower large deals. Intelisys & Advisory net sales for the first quarter increased 4.0% year-over-year to $24.2 million reflecting the addition of an acquisition.

Gross profit for the first quarter of fiscal year 2026 increased 5.8% year-over-year to $107.5 million, with a gross profit margin of 14.5% versus 13.1% in the prior-year quarter. The higher gross profit margin reflects favorable supplier program recognition and sales mix. For the first quarter of fiscal year 2026, the percentage of gross profit from recurring revenue totaled to 31.7%, compared to 31.9% for the prior-year period.

For the first quarter of fiscal year 2026, operating income was $25.9 million, compared to $17.6 million in the prior-year quarter. First quarter fiscal year 2026 non-GAAP operating income increased to $30.9 million from $27.5 million in the prior-year quarter.

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On a GAAP basis, net income for the first quarter of fiscal year 2026 totaled $19.9 million, or $0.89 per diluted share, up from net income of $17.0 million, or $0.69 per diluted share, for the prior-year quarter. First quarter fiscal year 2026 non-GAAP net income increased to $23.7 million, or $1.06 per diluted share, from $20.8 million, or $0.84 per diluted share, for the prior-year quarter. On a non-GAAP basis, adjusted EBITDA for the first quarter of fiscal year 2026 increased 8.2% to $38.6 million, or 5.22% of net sales, compared to $35.7 million, or 4.60% of net sales, for the prior-year quarter.

Balance Sheet and Cash Flow

As of September 30, 2025, ScanSource had cash and cash equivalents of $124.9 million and total debt of $133.9 million.

For fiscal year 2026, ScanSource generated $23.2 million of operating cash flow and $20.8 million of free cash flow (non-GAAP). ScanSource also had share repurchases of $21.3 million for the first quarter of fiscal 2026.

Acquisition of DataXoom

On October 20, 2025, ScanSource completed the acquisition of DataXoom, a leading connectivity provider dedicated to supporting purpose-built mobile deployments across our current supplier line card and beyond. DataXoom complements our Advantix investment and adds 17 employees through the acquisition.

Annual Financial Outlook for Fiscal Year 2026

ScanSource reaffirms previously provided guidance set forth below for the full fiscal year ended June 30, 2026.

FY26 Annual Outlook
Net sales $3.1 billion to $3.3 billion
Adjusted EBITDA (non-GAAP) $150 million to $160 million
Free cash flow (non-GAAP) 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.

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, November 6, 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

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.
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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.

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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 FORTUNE magazine’s 2025 List of World’s Most Admired Companies. ScanSource ranks #875 on the Fortune 1000. For more information, visit www.scansource.com.

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SCANSOURCE REPORTS FIRST QUARTER RESULTS

ScanSource, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands, except share data)
September 30, 2025 June 30, 2025*
Assets
Current assets:
Cash and cash equivalents $ 124,924  $ 126,157 
Accounts receivable, less allowance of $29,226 at September 30, 2025
and $27,821 at June 30, 2025
 557,071  635,521 
Inventories 505,339  483,815 
Prepaid expenses and other current assets 120,001  124,959 
Total current assets 1,307,335  1,370,452 
Property and equipment, net 32,221  31,169 
Goodwill 231,132  230,820 
Identifiable intangible assets, net 58,510  62,909 
Deferred income taxes 16,715  18,769 
Other non-current assets 71,063  71,487 
Total assets $ 1,716,976  $ 1,785,606 
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable $ 529,578  $ 598,595 
Accrued expenses and other current liabilities 63,373  71,263 
Current portion of contingent consideration 1,784  1,318 
Income taxes payable 3,557  3,927 
Current portion of long-term debt 7,866  7,861 
Total current liabilities 606,158  682,964 
Long-term debt, net of current portion 126,047  128,288 
Long-term portion of contingent consideration 16,255  17,782 
Other long-term liabilities 54,484  50,163 
Total liabilities 802,944  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, 22,067,128 and 22,217,421 shares issued and outstanding at September 30, 2025 and June 30, 2025, respectively
 —  — 
Retained earnings 1,024,720  1,020,833 
Accumulated other comprehensive loss (110,688) (114,424)
Total shareholders’ equity 914,032  906,409 
Total liabilities and shareholders’ equity $ 1,716,976  $ 1,785,606 
*Derived from audited financial statements.

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SCANSOURCE REPORTS FIRST QUARTER RESULTS
ScanSource, Inc. and Subsidiaries
Condensed Consolidated Income Statements (Unaudited)
(in thousands, except per share data)
  Quarter ended September 30,
  2025 2024
Net sales $ 739,650  $ 775,580 
Cost of goods sold 632,177  673,961 
Gross profit 107,473  101,619 
Selling, general and administrative expenses 75,275  71,706 
Depreciation expense 1,577  2,857 
Intangible amortization expense 4,404  4,358 
Restructuring and other charges —  5,068 
Change in fair value of contingent consideration 314  — 
Operating income 25,903  17,630 
Interest expense 1,914  2,109 
Interest income (3,180) (2,659)
Other (income) expense, net 173  (4,782)
Income before income taxes 26,996  22,962 
Provision for income taxes 7,118  5,988 
Net income $ 19,878  $ 16,974 
Per share data:
Net income per common share, basic $ 0.90  $ 0.70 
Weighted-average shares outstanding, basic 22,018  24,147 
Net income per common share, diluted $ 0.89  $ 0.69 
Weighted-average shares outstanding, diluted 22,405  24,646 


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SCANSOURCE REPORTS FIRST QUARTER RESULTS
ScanSource, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in thousands)
Quarter ended September 30,
2025 2024
Cash flows from operating activities:
Net income $ 19,878  $ 16,974 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization 6,200  7,471 
Amortization of debt issue costs 96  96 
Provision for doubtful accounts 1,928  1,678 
Share-based compensation 2,876  2,471 
Deferred income taxes 2,079  2,433 
Change in fair value of contingent consideration 314  — 
Finance lease interest 15  25 
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable 79,010  20,606 
Inventories (20,574) 9,524 
Prepaid expenses and other assets 5,262  (1,952)
Other non-current assets 552  3,285 
Accounts payable (70,297) (17,002)
Accrued expenses and other liabilities (3,758) 744 
Income taxes payable (370) (1,523)
Net cash provided by operating activities 23,211  44,830 
Cash flows from investing activities:
Capital expenditures (2,395) (2,375)
Cash paid for business acquisitions, net of cash acquired —  (56,849)
Net cash (used in) provided by investing activities (2,395) (59,224)
Cash flows from financing activities:
Borrowings on revolving credit 49,210  8,381 
Repayments on revolving credit (49,210) (8,430)
Repayments on long-term debt, net (2,236) (357)
Borrowings (repayments) on finance lease obligation (271) (275)
Exercise of stock options 4,834  6,971 
Taxes paid on settlement of equity awards (2,617) (4,794)
Common stock repurchased (21,285) (28,126)
Net cash used in financing activities (22,950) (26,630)
Effect of exchange rate changes on cash and cash equivalents 901  608 
(Decrease) increase in cash and cash equivalents (1,233) (40,416)
Cash and cash equivalents at beginning of period 126,157  185,460 
Cash and cash equivalents at period end $ 124,924  $ 145,044 



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SCANSOURCE REPORTS FIRST QUARTER RESULTS
ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
(in thousands, except percentages)
Non-GAAP Financial Information:
Quarter ended September 30,
2025 2024
Reconciliation of Net Income to Adjusted EBITDA:
Net income (GAAP) $ 19,878 $ 16,974
Plus: Interest expense 1,914 2,109
Plus: Income taxes 7,118 5,988
Plus: Depreciation and amortization 6,200 7,471
EBITDA (non-GAAP) 35,110 32,542
Plus: Change in fair value of contingent consideration 314 — 
Plus: Share-based compensation 2,876 2,471
Plus: Acquisition and divestiture costs 261 377
Plus: Cyberattack restoration costs 29 76
Plus: Restructuring costs — 5,068
Plus: Insurance recovery, net of payments — (4,868)
Adjusted EBITDA (numerator for Adjusted ROIC) (non-GAAP) $ 38,590 $ 35,666
Invested Capital Calculations:
Equity – beginning of the period $ 906,409 $ 924,254
Equity – end of the period 914,032 920,893
Plus: Change in fair value of contingent consideration, net 236 —
Plus: Share-based compensation, net 2,152 1,856
Plus: Acquisition and divestiture costs 261 377
Plus: Cyberattack restoration costs, net 21 57
Plus: Restructuring costs, net — 3,818
Plus: Insurance recovery, net — (3,667)
Average equity 911,556 923,794
Average funded debt (a)
 137,113 144,020
Invested capital (denominator for Adjusted ROIC) (non-GAAP) $ 1,048,669 $ 1,067,814
Adjusted return on invested capital ratio (Adjusted ROIC), annualized(b)
 14.6  % 13.3  %
(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 92 days in the current quarter and prior-year quarter.


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SCANSOURCE REPORTS FIRST QUARTER RESULTS
ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
Net Sales by Segment:
Quarter ended September 30,
2025 2024 % Change
Specialty Technology Solutions: (in thousands)
Net sales, reported $ 715,447  $ 752,299  (4.9) %
Foreign exchange impact (a)
 (1,085) — 
Less: Acquisitions (7,171) (3,512)
Non-GAAP net sales $ 707,191  $ 748,787  (5.6) %
Intelisys & Advisory:
Net sales, reported $ 24,203  $ 23,281  4.0  %
Foreign exchange impact (a)
 (3) — 
Less: Acquisitions (1,336) (577)
Non-GAAP net sales $ 22,864  $ 22,704  0.7  %
Consolidated:
Net sales, reported $ 739,650  $ 775,580  (4.6) %
Foreign exchange impact (a)
 (1,088) — 
Less: Acquisitions (8,507) (4,089)
Non-GAAP net sales $ 730,055  $ 771,491  (5.4) %
(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 September 30, 2025 into U.S. dollars using the average foreign exchange rates for the quarter ended September 30, 2024.

Net Sales by Revenue Type:
Quarter ended September 30,
2025 2024 % Change
(in thousands)
Net sales by product/service:
Products and services $ 702,984  $ 741,618  (5.2) %
Recurring revenue(a)
 36,666  33,962  8.0  %
$ 739,650  $ 775,580  (4.6) %
(a) Recurring revenue represents primarily agency commissions, managed connectivity, SaaS, subscriptions, and hardware rentals.
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SCANSOURCE REPORTS FIRST QUARTER RESULTS
ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
Net Sales by Geography:
Quarter ended September 30,
2025 2024 % Change
United States: (in thousands)
Net sales, reported (a)
 $ 682,217  $ 712,019  (4.2) %
Less: Acquisitions (8,507) (4,089)
Non-GAAP net sales $ 673,710  $ 707,930  (4.8) %
Brazil:
Net sales, reported (b)
 $ 57,433  $ 63,561  (9.6) %
Foreign exchange impact (c)
 (1,088) — 
Non-GAAP net sales $ 56,345  $ 63,561  (11.4) %
Consolidated:
Net sales, reported $ 739,650  $ 775,580  (4.6) %
Foreign exchange impact (c)
 (1,088) — 
Less: Acquisitions (8,507) (4,089)
Non-GAAP net sales $ 730,055  $ 771,491  (5.4) %
(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 September 30, 2025 and 2024.
(b) Includes net sales from outside of the United States, Canada and Brazil, which represent less than 0.2% of Brazil net sales for the quarters ended September 30, 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 September 30, 2025 into U.S. dollars using the average foreign exchange rates for the quarter ended September 30, 2024.
Free Cash Flow:
Quarter ended September 30,
2025 2024
GAAP operating cash flow $ 23,211  $ 44,830 
Less: Capital expenditures (2,395) (2,375)
Free cash flow (non-GAAP) $ 20,816  $ 42,455 












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SCANSOURCE REPORTS FIRST QUARTER RESULTS
ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
(in thousands, except per share data)
Reconciliation of Other Non-GAAP Financial Information:
Quarter ended September 30, 2025
GAAP Measure Intangible amortization expense Change in fair value of contingent consideration
Acquisition & divestiture costs (a)
 Restructuring costs Insurance recovery, net Cyberattack restoration costs Non-GAAP measure
(in thousands, except per share data)
SG&A expenses $ 75,275  $ —  $ —  $ (261) $ —  $ —  $ (29) $ 74,985 
Operating income 25,903  4,404  314  261  —  —  29  30,911 
Pre-tax income 26,996  4,404  314  261  —  —  29  32,004 
Net income 19,878  3,289  236  261  —  —  21  23,685 
Diluted EPS $ 0.89  $ 0.15  $ 0.01  $ 0.01  $ —  $ —  $ —  $ 1.06 
Quarter ended September 30, 2024
GAAP Measure Intangible amortization expense Change in fair value of contingent consideration
Acquisition & divestiture costs (a)
 Restructuring costs Insurance recovery, net Cyberattack restoration costs Non-GAAP measure
(in thousands, except per share data)
SG&A expense $ 71,706  $ —  $ —  $ (377) $ —  $ —  $ (76) $ 71,253 
Operating income 17,630  4,358  —  377  5,068  —  76  27,509 
Pre-tax income 22,962  4,358  —  377  5,068  (4,868) 76  27,973 
Net income 16,974  3,264  —  377  3,818  (3,667) 57  20,823 
Diluted EPS $ 0.69  $ 0.13  $ —  $ 0.02  $ 0.15  $ (0.15) $ —  $ 0.84 
(a) Acquisition and divestiture costs for the quarters ended September 30, 2025 and September 30, 2024 are generally nondeductible for tax purposes.


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EX-99.2 3 ex992q1fy26infographics.htm EX-99.2 ex992q1fy26infographics
Fiscal First Quarter 2026 Earnings Key Highlights © ScanSource 2025 Consolidated Our team delivered double-digit EPS growth and strong free cash flow in the first quarter. With our new three-year strategic goals as our guide, we are executing our strategic plan.” Mike Baur Chair and CEO, ScanSource, Inc. Reaffirmed FY26 Annual Outlook, Executing Strategic Plan Higher Margins and Recurring Revenue Growth Strong Adjusted ROIC and Free Cash Flow Conversion Gross Profit Growing Faster Than Sales Specialty Technology Solutions Segment Intelisys & Advisory Segment Net Sales -5% Y/Y $740M Gross Profit +6% Y/Y $107M, 14.5% margin STS, Net Sales -5% Y/Y $715M STS, Gross Profit +7% Y/Y $84M, 11.7% margin I&A, Net Sales +4% Y/Y $24M I&A, Gross Profit +2% Y/Y $24M, 97.4% 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 first quarter fiscal year 2026 news release issued on November 6, 2025, which accompanies this presentation and is available at www.scansource.com in the Investor Relations section [click here]. First Quarter Operating Metrics New 3-Year Strategic Goals Fiscal Year 2026 Annual Outlook as of November 6, 2025 © ScanSource 2025 2 Net Sales $3.1 billion to $3.3 billion Adjusted EBITDA* $150 million to $160 million Free Cash Flow* At least $80 million Adjusted ROIC* Free Cash Flow Conversion as % Non-GAAP Net Income* Adjusted EBITDA Margin* Recurring Revenue GP as % Gross Profit Gross Profit Growth CAGR Mid-Teens Consistent 80%+ annual basis ~6% Build to 50%5%-7% $0.89 per share GAAP Diluted EPS +29% Y/Y $38.6M, +8% Y/Y Adjusted EBITDA* 5.22% Adjusted EBITDA Margin* $23M QTR Operating Cash Flow $21M QTR Free Cash Flow* $1.06 per share Non-GAAP Diluted EPS* +26% Y/Y 0.1x Net Debt* to TTM Adjusted EBITDA* 14.6% Adjusted ROIC* $21M in share repurchases

 
* Reflects estimated mix of FY25 gross sales for the United States/Canada business. The geographic mix for FY25 STS net sales is approximately 92% for United States/Canada and 8% for Brazil. ** Management estimates Specialty Technology Solutions: Key Technologies and Growth Drivers 3 POS, Payment Terminals Physical SecurityCommunicationsNetworking Mobility and Barcode % of Sales* Low Single-Digit ▲ Upper Single-Digit ▲▲▲ Low Single-Digit ▲ Mid Single-Digit ▲▲ Mid Single-Digit ▲▲ Market Growth** - Customer experience - Self-service - Omni-channel commerce - Video surveillance - Advances in AI, high-res imaging - Cloud security - Cloud growth & shift to subscriptions - Remote/hybrid work - Integrated platforms - Connected devices - AI smart networking - Enhanced network security - Automation & worker productivity - Digitizing workflows - Asset visibility Growth Drivers

 
* Reflects estimated mix of FY25 net billings for Intelisys. Intelisys represents approximately 87% of Intelisys & Advisory segment FY25 net sales. ** Management estimates. Intelisys & Advisory Segment: Key Technologies and Growth Drivers 4 Wireless & IoTSecurityCloud/Data CenterCX (UCaaS/CCaaS)Connectivity & SDN % of Net Billings* ~10%+ ▲▲▲ ~10%+ ▲▲▲ ~10%+ ▲▲▲ ~10%+ ▲▲▲ Low Single-Digit ▲ Market Growth** - 5G, hybrid & private cellular networks - Rapid expansion of applications & connected devices - Advanced cybersecurity - Managed services - Cloud adoption - Digital transformation - Adoption of AI and machine learning - Edge computing - AI, automation & analytics - Collaborative tools for mobile workforce - Demand for high- bandwidth / low latency - 5G rollouts & IoT - Automation Growth Drivers

 
Forward-Looking Statements This Earnings Infographic and supporting materials contain “forward-looking” statements, including ScanSource's FY26 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 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, 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. 5