ScanSource(SCSC) - 2025 Q4 - Annual Results

Company Overview & Performance Highlights ScanSource, Inc. reported strong Q4 FY25 results, achieving its full-year outlook with significant profitability growth, and outlined strategic investments for FY26 Company Introduction ScanSource, Inc. (NASDAQ: SCSC) announced its financial results for the fourth quarter and fiscal year ended June 30, 2025, highlighting strong Q4 performance that helped achieve its full-year outlook - ScanSource, Inc. (NASDAQ: SCSC) is a leading technology distributor focused on complex, converging technologies[1] - The company announced financial results for the fourth quarter and fiscal year ended June 30, 2025, achieving its full-year outlook with strong Q4 performance[1] CEO Commentary CEO Mike Baur highlighted strong free cash flow and excellent profitability growth for fiscal year 2025, with plans for strategic investments in FY26 to accelerate growth and expand margins - CEO Mike Baur noted strong free cash flow and excellent profitability growth across the board for fiscal year 2025[4] - For fiscal year 2026, ScanSource plans strategic investments to accelerate growth and expand margins[4] Consolidated Financial Highlights (Q4 & FY25 Summary) ScanSource reported an 8.9% increase in Q4 FY25 net sales to $812.9 million, with GAAP diluted EPS up 37.5% to $0.88. For the full fiscal year 2025, net sales decreased by 6.7% to $3.04 billion, while non-GAAP diluted EPS increased by 15.9% to $3.57 Select Reported and Non-GAAP Measures (Q4 FY25 vs Q4 FY24) | Measure | Q4 FY25 (in thousands) | Q4 FY24 (in thousands) | Change | | :---------------------- | :--------------------- | :--------------------- | :----- | | Net sales | $812,886 | $746,113 | 8.9% | | Gross profit | $105,102 | $97,315 | 8.0% | | Gross profit margin % | 12.9% | 13.0% | -11bp | | Operating income | $26,787 | $21,871 | 22.5% | | GAAP net income | $20,089 | $16,097 | 24.8% | | GAAP diluted EPS | $0.88 | $0.64 | 37.5% | | Adjusted EBITDA | $38,639 | $34,181 | 13.0% | | Adjusted EBITDA margin % | 4.75% | 4.58% | 17bp | | Non-GAAP net income | $23,322 | $19,921 | 17.1% | | Non-GAAP diluted EPS | $1.02 | $0.80 | 27.5% | Select Reported and Non-GAAP Measures (FY25 vs FY24) | Measure | FY25 (in thousands) | FY24 (in thousands) | Change | | :---------------------- | :------------------ | :------------------ | :----- | | Net sales | $3,040,810 | $3,259,809 | -6.7% | | Gross profit | $408,646 | $399,052 | 2.4% | | Gross profit margin % | 13.4% | 12.2% | 120bp | | Operating income | $85,200 | $90,324 | -5.7% | | GAAP net income | $71,548 | $77,060 | -7.2% | | GAAP diluted EPS | $3.00 | $3.06 | -2.0% | | Adjusted EBITDA | $144,660 | $140,654 | 2.8% | | Adjusted EBITDA margin % | 4.76% | 4.31% | 45bp | | Non-GAAP net income | $85,144 | $77,670 | 9.6% | | Non-GAAP diluted EPS | $3.57 | $3.08 | 15.9% | Fourth Quarter Fiscal Year 2025 Results ScanSource's Q4 FY25 saw significant increases in net sales, gross profit, operating income, and diluted EPS, driven by broad-based growth and acquisitions Net Sales Fourth quarter net sales increased 8.9% year-over-year to $812.9 million, driven by broad-based growth in North America for Specialty Technology Solutions and an acquisition for Intelisys & Advisory. Recurring revenue saw significant growth of 30.0% Q4 FY25 Net Sales Performance | Category | Q4 FY25 Net Sales (in millions) | YoY Change | | :-------------------------- | :------------------------------ | :--------- | | Total Net Sales | $812.9 | 8.9% | | Products and Services | $776.3 | 8.1% | | Recurring Revenue | $36.5 | 30.0% | | Specialty Technology Solutions | $788.7 | 9.2% | | Intelisys & Advisory | $24.2 | 1.3% | - Specialty Technology Solutions' growth was driven by broad-based growth in North America[4] - Intelisys & Advisory net sales growth reflected the addition of an acquisition[4] Gross Profit Gross profit for Q4 FY25 increased 8.0% year-over-year to $105.1 million, with the gross profit margin slightly decreasing to 12.9%. The contribution of gross profit from recurring revenue increased to 31.6% Q4 FY25 Gross Profit Performance | Metric | Q4 FY25 (in millions) | Q4 FY24 (in millions) | YoY Change | | :---------------------------------- | :-------------------- | :-------------------- | :--------- | | Gross Profit | $105.1 | $97.3 | 8.0% | | Gross Profit Margin | 12.9% | 13.0% | -11bp | | % Gross Profit from Recurring Revenue | 31.6% | 28.5% | +3.1pp | Operating Income GAAP operating income for Q4 FY25 rose to $26.8 million from $21.9 million in the prior-year quarter, while non-GAAP operating income increased to $31.3 million from $26.0 million Q4 FY25 Operating Income Performance | Metric | Q4 FY25 (in millions) | Q4 FY24 (in millions) | | :-------------------- | :-------------------- | :-------------------- | | GAAP Operating Income | $26.8 | $21.9 | | Non-GAAP Operating Income | $31.3 | $26.0 | - GAAP operating income increased by 22.5% year-over-year[2] Net Income and Diluted EPS GAAP net income for Q4 FY25 was $20.1 million, or $0.88 per diluted share, a significant increase from the prior year. Non-GAAP net income also grew to $23.3 million, or $1.02 per diluted share Q4 FY25 Net Income and Diluted EPS Performance | Metric | Q4 FY25 (in millions/per share) | Q4 FY24 (in millions/per share) | YoY Change | | :-------------------- | :------------------------------ | :------------------------------ | :--------- | | GAAP Net Income | $20.1 | $16.1 | 24.8% | | GAAP Diluted EPS | $0.88 | $0.64 | 37.5% | | Non-GAAP Net Income | $23.3 | $19.9 | 17.1% | | Non-GAAP Diluted EPS | $1.02 | $0.80 | 27.5% | Adjusted EBITDA Adjusted EBITDA for Q4 FY25 increased 13.0% to $38.6 million, representing 4.75% of net sales, up from 4.58% in the prior-year quarter Q4 FY25 Adjusted EBITDA Performance | Metric | Q4 FY25 (in millions) | Q4 FY24 (in millions) | YoY Change | | :-------------- | :-------------------- | :-------------------- | :--------- | | Adjusted EBITDA | $38.6 | $34.2 | 13.0% | | Adjusted EBITDA Margin % | 4.75% | 4.58% | +17bp | Full Fiscal Year 2025 Results For FY25, net sales decreased due to a cautious spending environment, but gross profit and non-GAAP diluted EPS increased, reflecting improved margins and recurring revenue Net Sales Full fiscal year 2025 net sales decreased 6.7% to $3.04 billion, primarily due to a cautious technology spending environment in the first half. Recurring revenue, however, grew significantly by 31.8% including acquisitions FY25 Net Sales Performance | Category | FY25 Net Sales (in billions) | YoY Change | | :-------------------------- | :--------------------------- | :--------- | | Total Net Sales | $3.04 | -6.7% | | Products and Services | $2.895 | -8.1% | | Recurring Revenue | $0.146 | 31.8% | | Specialty Technology Solutions | $2.94 | -7.1% | | Intelisys & Advisory | $0.098 | 6.3% | - The decrease in Specialty Technology Solutions' net sales was primarily due to a more cautious technology spending environment in the first half of the fiscal year[8] - Intelisys & Advisory net sales growth reflected the addition of an acquisition[8] Gross Profit Gross profit for FY25 increased 2.4% year-over-year to $408.6 million, with the gross profit margin improving to 13.4% from 12.2% in the prior year. This improvement was attributed to a higher contribution from recurring revenue and increased vendor program recognition FY25 Gross Profit Performance | Metric | FY25 (in millions) | FY24 (in millions) | YoY Change | | :---------------------------------- | :----------------- | :----------------- | :--------- | | Gross Profit | $408.6 | $399.1 | 2.4% | | Gross Profit Margin | 13.4% | 12.2% | +120bp | | % Gross Profit from Recurring Revenue | 32.8% | 27.5% | +5.3pp | - The higher gross profit margin reflects a higher contribution of recurring revenue and higher vendor program recognition[9] Operating Income GAAP operating income for FY25 was $85.2 million, a decrease from $90.3 million in the prior year. Conversely, non-GAAP operating income increased to $111.3 million from $110.4 million FY25 Operating Income Performance | Metric | FY25 (in millions) | FY24 (in millions) | | :-------------------- | :----------------- | :----------------- | | GAAP Operating Income | $85.2 | $90.3 | | Non-GAAP Operating Income | $111.3 | $110.4 | - GAAP operating income decreased by 5.7% year-over-year[2] Net Income and Diluted EPS GAAP net income for FY25 totaled $71.5 million, or $3.00 per diluted share, down from the prior year. Non-GAAP net income, however, increased to $85.1 million, or $3.57 per diluted share FY25 Net Income and Diluted EPS Performance | Metric | FY25 (in millions/per share) | FY24 (in millions/per share) | YoY Change | | :-------------------- | :--------------------------- | :--------------------------- | :--------- | | GAAP Net Income | $71.5 | $77.1 | -7.2% | | GAAP Diluted EPS | $3.00 | $3.06 | -2.0% | | Non-GAAP Net Income | $85.1 | $77.7 | 9.6% | | Non-GAAP Diluted EPS | $3.57 | $3.08 | 15.9% | Adjusted EBITDA Adjusted EBITDA for FY25 increased 2.8% to $144.7 million, representing 4.76% of net sales, an improvement from 4.31% in the prior year FY25 Adjusted EBITDA Performance | Metric | FY25 (in millions) | FY24 (in millions) | YoY Change | | :-------------- | :----------------- | :----------------- | :--------- | | Adjusted EBITDA | $144.7 | $140.7 | 2.8% | | Adjusted EBITDA Margin % | 4.76% | 4.31% | +45bp | Balance Sheet and Cash Flow ScanSource maintained a healthy balance sheet with $126.2 million in cash and generated strong operating and free cash flow for fiscal year 2025 Balance Sheet Summary As of June 30, 2025, ScanSource reported $126.2 million in cash and cash equivalents and $136.1 million in total debt Balance Sheet Snapshot (June 30, 2025) | Metric | Amount (in millions) | | :---------------------- | :------------------- | | Cash and Cash Equivalents | $126.2 | | Total Debt | $136.1 | - The company had cash and cash equivalents of $126.2 million and total debt of $136.1 million as of June 30, 2025[12] Cash Flow Summary For fiscal year 2025, ScanSource generated $112.3 million in operating cash flow and $104.1 million in free cash flow, alongside $106.5 million in share repurchases FY25 Cash Flow Summary | Metric | Amount (in millions) | | :---------------------- | :------------------- | | Operating Cash Flow | $112.3 | | Free Cash Flow (non-GAAP) | $104.1 | | Share Repurchases | $106.5 | - ScanSource generated $112.3 million of operating cash flow and $104.1 million of free cash flow (non-GAAP) for fiscal year 2025[12] - The company also had share repurchases of $106.5 million for fiscal year 2025[12] Fiscal Year 2026 Financial Outlook ScanSource provided its annual financial outlook for fiscal year 2026, projecting net sales between $3.1 billion and $3.3 billion, Adjusted EBITDA of $150 million to $160 million, and at least $80 million in free cash flow FY26 Annual Outlook | Metric | 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 | - The guidance is based on ScanSource's current expectations for the full fiscal year ended June 30, 2026[13] - A quantitative reconciliation of forward-looking non-GAAP measures to GAAP cannot be made without unreasonable efforts due to the unpredictability of future non-operating items[15] Non-GAAP Financial Information ScanSource utilizes non-GAAP financial measures to provide clearer insights into performance, excluding specific non-operating items for enhanced comparability Purpose and Exclusions ScanSource uses non-GAAP financial measures to evaluate performance and enhance comparability between periods, excluding items such as amortization of intangible assets, acquisition/divestiture costs, and restructuring costs. These measures have limitations and should be considered supplementary to GAAP results - Non-GAAP financial measures are used to understand and evaluate performance, including period-to-period comparisons[18] - 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[18] - Non-GAAP financial measures have limitations as analytical tools and may not be comparable to similarly titled amounts reported by other companies[25] Key Non-GAAP Metric Definitions This section defines key non-GAAP metrics used by ScanSource, including non-GAAP net sales (organic growth), Adjusted EBITDA (profitability from operations), Adjusted ROIC (performance consistency), Free Cash Flow (liquidity), Net Debt (borrowing capacity), and other adjusted metrics like SG&A and EPS - Non-GAAP net sales: Percentage change in net sales excluding foreign currency exchange rate impacts and net sales from acquisitions and divestitures to analyze underlying organic trends[19] - Adjusted EBITDA: Starts with net income and adds back interest expense, income tax expense, depreciation, amortization, change in fair value of contingent consideration, and other non-GAAP adjustments to show profitability from business operations more clearly[20] - Adjusted return on invested capital (Adjusted ROIC): Calculated as Adjusted EBITDA over invested capital, used to compare performance consistently by removing non-core operating impacts[21] - Free cash flow: Defined as net cash provided by operating activities less capital expenditures, used to measure liquidity and capital resources[22] - Net debt: Total balance sheet debt less cash and cash equivalents, useful for assessing borrowing capacity[23] - Additional Non-GAAP Metrics: Includes non-GAAP SG&A expenses, operating income, pre-tax income, net income, and diluted EPS, which exclude specific acquisition-related and restructuring costs for consistent performance assessment[24] Supplementary Financial Information (Unaudited) Unaudited supplementary financial statements provide detailed balance sheets, income statements, cash flows, and reconciliations for Q4 and full fiscal year 2025 Condensed Consolidated Balance Sheets The condensed consolidated balance sheets provide a snapshot of ScanSource's financial position as of June 30, 2025, compared to June 30, 2024, detailing assets, liabilities, and shareholders' equity Condensed Consolidated Balance Sheets (Unaudited) - Key Figures | Metric | June 30, 2025 (in thousands) | June 30, 2024 (in thousands) | | :-------------------------------- | :--------------------------- | :--------------------------- | | Total current assets | $1,370,452 | $1,404,699 | | Total assets | $1,785,606 | $1,779,032 | | Total current liabilities | $682,964 | $669,352 | | Total liabilities | $879,197 | $854,777 | | Total shareholders' equity | $906,409 | $924,255 | Condensed Consolidated Income Statements The condensed consolidated income statements present the financial performance for the fourth quarter and full fiscal year ended June 30, 2025, compared to the prior year, showing revenues, expenses, and net income Condensed Consolidated Income Statements (Unaudited) - Q4 Key Figures | Metric | Q4 FY25 (in thousands) | Q4 FY24 (in thousands) | | :-------------------------- | :--------------------- | :--------------------- | | Net sales | $812,886 | $746,113 | | Gross profit | $105,102 | $97,315 | | Operating income | $26,787 | $21,871 | | Net income | $20,089 | $16,097 | | Diluted EPS | $0.88 | $0.64 | Condensed Consolidated Income Statements (Unaudited) - FY Key Figures | Metric | FY25 (in thousands) | FY24 (in thousands) | | :-------------------------- | :------------------ | :------------------ | | Net sales | $3,040,810 | $3,259,809 | | Gross profit | $408,646 | $399,052 | | Operating income | $85,200 | $90,324 | | Net income | $71,548 | $77,060 | | Diluted EPS | $3.00 | $3.06 | Condensed Consolidated Statements of Cash Flows The condensed consolidated statements of cash flows detail the cash generated and used across operating, investing, and financing activities for fiscal year 2025 compared to 2024 Condensed Consolidated Statements of Cash Flows (Unaudited) - FY Key Figures | Metric | FY25 (in thousands) | FY24 (in thousands) | | :-------------------------------------- | :------------------ | :------------------ | | Net cash provided by operating activities | $112,349 | $371,647 | | Net cash (used in) provided by investing activities | $(62,390) | $9,045 | | Net cash used in financing activities | $(110,905) | $(227,767) | | Cash and cash equivalents at period end | $126,157 | $185,460 | Reconciliation of Net Income to Adjusted EBITDA This section provides a reconciliation of GAAP net income to non-GAAP Adjusted EBITDA for both the fourth quarter and full fiscal year 2025, detailing the adjustments made Reconciliation of Net Income to Adjusted EBITDA (Q4) | Metric | Q4 FY25 (in thousands) | Q4 FY24 (in thousands) | | :-------------------------------- | :--------------------- | :--------------------- | | Net income (GAAP) | $20,089 | $16,097 | | Plus: Interest expense | $2,099 | $2,084 | | Plus: Income taxes | $7,408 | $6,600 | | Plus: Depreciation and amortization | $7,101 | $6,792 | | EBITDA (non-GAAP) | $36,697 | $31,573 | | Adjusted EBITDA (non-GAAP) | $38,639 | $34,181 | Reconciliation of Net Income to Adjusted EBITDA (FY) | Metric | FY25 (in thousands) | FY24 (in thousands) | | :-------------------------------- | :------------------ | :------------------ | | Net income (GAAP) | $71,548 | $77,060 | | Plus: Interest expense | $8,013 | $13,031 | | Plus: Income taxes | $22,848 | $22,781 | | Plus: Depreciation and amortization | $30,195 | $28,009 | | EBITDA (non-GAAP) | $132,604 | $140,881 | | Adjusted EBITDA (non-GAAP) | $144,660 | $140,654 | Adjusted Return on Invested Capital (Adjusted ROIC) | Metric | Q4 FY25 | Q4 FY24 | FY25 | FY24 | | :-------------------------------- | :------ | :------ | :--- | :--- | | Adjusted ROIC, annualized | 14.9% | 12.7% | 13.6% | 12.4% | Net Sales by Segment Detailed net sales by segment for both the fourth quarter and full fiscal year 2025, showing performance for Specialty Technology Solutions and Intelisys & Advisory, including non-GAAP adjustments for foreign exchange and acquisitions/divestitures Net Sales by Segment (Q4 FY25 vs Q4 FY24) | Segment | Q4 FY25 Reported (in thousands) | Q4 FY24 Reported (in thousands) | % Change | Q4 FY25 Non-GAAP (in thousands) | Q4 FY24 Non-GAAP (in thousands) | % Change (Non-GAAP) | | :-------------------------- | :------------------------------ | :------------------------------ | :--------- | :------------------------------ | :------------------------------ | :------------------ | | Specialty Technology Solutions | $788,708 | $722,251 | 9.2% | $786,251 | $722,251 | 8.9% | | Intelisys & Advisory | $24,178 | $23,862 | 1.3% | $23,110 | $23,862 | (3.2)% | | Consolidated | $812,886 | $746,113 | 8.9% | $809,361 | $746,113 | 8.5% | Net Sales by Segment (FY25 vs FY24) | Segment | FY25 Reported (in thousands) | FY24 Reported (in thousands) | % Change | FY25 Non-GAAP (in thousands) | FY24 Non-GAAP (in thousands) | % Change (Non-GAAP) | | :-------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------------------------- | :--------------------------- | :------------------ | | Specialty Technology Solutions | $2,942,717 | $3,167,549 | (7.1)% | $2,951,272 | $3,163,530 | (6.7)% | | Intelisys & Advisory | $98,093 | $92,260 | 6.3% | $92,096 | $92,260 | (0.2)% | | Consolidated | $3,040,810 | $3,259,809 | (6.7)% | $3,043,368 | $3,255,790 | (6.5)% | Net Sales by Revenue Type This section breaks down net sales into products and services versus recurring revenue for both the fourth quarter and full fiscal year 2025, highlighting the significant growth in recurring revenue Net Sales by Revenue Type (Q4 FY25 vs Q4 FY24) | Revenue Type | Q4 FY25 (in thousands) | Q4 FY24 (in thousands) | % Change | | :------------------ | :--------------------- | :--------------------- | :--------- | | Products and services | $776,349 | $718,003 | 8.1% | | Recurring revenue | $36,537 | $28,110 | 30.0% | | Total Net Sales | $812,886 | $746,113 | 8.9% | Net Sales by Revenue Type (FY25 vs FY24) | Revenue Type | FY25 (in thousands) | FY24 (in thousands) | % Change | | :------------------ | :------------------ | :------------------ | :--------- | | Products and services | $2,895,110 | $3,149,234 | (8.1)% | | Recurring revenue | $145,700 | $110,575 | 31.8% | | Total Net Sales | $3,040,810 | $3,259,809 | (6.7)% | - Recurring revenue primarily represents agency commissions, managed connectivity, SaaS, subscriptions, and hardware rentals[44][45] Net Sales by Geography This section provides a geographical breakdown of net sales for the fourth quarter and full fiscal year 2025, distinguishing between the United States & Canada, Brazil, and International regions, with non-GAAP adjustments for foreign exchange and acquisitions/divestitures Net Sales by Geography (Q4 FY25 vs Q4 FY24) | Region | Q4 FY25 Reported (in thousands) | Q4 FY24 Reported (in thousands) | % Change | Q4 FY25 Non-GAAP (in thousands) | Q4 FY24 Non-GAAP (in thousands) | % Change (Non-GAAP) | | :-------------------- | :------------------------------ | :------------------------------ | :--------- | :------------------------------ | :------------------------------ | :------------------ | | United States and Canada | $744,644 | $663,542 | 12.2% | $736,450 | $663,542 | 11.0% | | Brazil | $68,242 | $82,571 | (17.4)% | $72,911 | $82,571 | (11.7)% | | Consolidated | $812,886 | $746,113 | 8.9% | $809,361 | $746,113 | 8.5% | Net Sales by Geography (FY25 vs FY24) | Region | FY25 Reported (in thousands) | FY24 Reported (in thousands) | % Change | FY25 Non-GAAP (in thousands) | FY24 Non-GAAP (in thousands) | % Change (Non-GAAP) | | :-------------------- | :--------------------------- | :--------------------------- | :--------- | :--------------------------- | :--------------------------- | :------------------ | | United States and Canada | $2,800,739 | $2,921,172 | (4.1)% | $2,770,562 | $2,921,172 | (5.2)% | | International | $240,071 | $338,637 | (29.1)% | $272,806 | $334,618 | (18.5)% | | Consolidated | $3,040,810 | $3,259,809 | (6.7)% | $3,043,368 | $3,255,790 | (6.5)% | Free Cash Flow Reconciliation This section reconciles GAAP operating cash flow to non-GAAP free cash flow for both the fourth quarter and full fiscal year 2025 Free Cash Flow Reconciliation (Q4 & FY) | Metric | Q4 FY25 (in thousands) | Q4 FY24 (in thousands) | FY25 (in thousands) | FY24 (in thousands) | | :------------------------ | :--------------------- | :--------------------- | :------------------ | :------------------ | | GAAP operating cash flow | $7,644 | $54,738 | $112,349 | $371,647 | | Less: Capital expenditures | $(2,518) | $(1,270) | $(8,286) | $(8,555) | | Free cash flow (non-GAAP) | $5,126 | $53,468 | $104,063 | $363,092 | Reconciliation of Other Non-GAAP Financial Information This section provides detailed reconciliations of GAAP to non-GAAP measures for SG&A expenses, operating income, pre-tax income, net income, and diluted EPS for both the fourth quarter and full fiscal year 2025, outlining specific adjustments - Detailed reconciliations are provided for SG&A expenses, operating income, pre-tax income, net income, and diluted EPS for Q4 FY25 and FY25, showing adjustments for intangible amortization, contingent consideration, acquisition/divestiture costs, restructuring costs, tax recovery, insurance recovery, cyberattack restoration costs, and legal settlement[54][56] Additional Company Information ScanSource provides webcast details for earnings calls, includes a safe harbor statement for forward-looking information, and highlights its role as a leading technology distributor Webcast Details ScanSource provided details for accessing its Earnings Infographic and a webcast of the earnings conference call on its investor relations website - An Earnings Infographic and a webcast of the earnings conference call are available on ScanSource's website (www.scansource.com, Investor Relations section)[16] - The webcast will be available for replay for 60 days[16] Safe Harbor Statement The press release includes a safe harbor statement regarding forward-looking statements, cautioning that actual results may differ materially due to various risks and uncertainties, including macroeconomic conditions, growth strategy implementation, credit risks, and cyberattacks - The press release contains forward-looking statements, including the FY26 annual outlook, which involve risks and uncertainties beyond ScanSource's control[17] - Factors that could cause actual results to differ include macroeconomic conditions, failure to manage growth strategy, acquisition synergies, credit risks, changes in interest/exchange rates, cyberattacks, and loss of key partners/suppliers[17] - ScanSource disclaims any obligation to update these forward-looking statements[17] About ScanSource, Inc. ScanSource, Inc. is a leading technology distributor founded in 1992, headquartered in Greenville, South Carolina. It enables channel sales partners to deliver converging solutions across hardware, SaaS, connectivity, and cloud services, and has been recognized as a 'Best Place to Work' and 'World's Most Admired Company' - ScanSource, Inc. (NASDAQ: SCSC) is a leading technology distributor that addresses complex, converging technologies and accelerates growth for channel sales partners[26] - The company enables partners to deliver solutions across hardware, software as a service (SaaS), connectivity, and cloud services[26] - 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, ranking 875 on the Fortune 1000[26]