ScanSource Q4 Earnings Surpass Estimates, Revenues Increase Y/Y

Core Insights - ScanSource, Inc. (SCSC) reported adjusted earnings of $1.02 per share for Q4 fiscal 2025, exceeding the Zacks Consensus Estimate of 91 cents, marking a 28% increase from the previous year's earnings of 80 cents [1][8] - The company achieved net revenues of $813 million in the quarter, an 8.9% increase year-over-year, surpassing the Zacks Consensus Estimate of $773 million [2][8] - For fiscal 2026, ScanSource projects net revenues between $3.1 billion and $3.3 billion, with adjusted EBITDA expected to be between $150 million and $160 million [9] Revenue Performance - Net revenues in the United States and Canada rose by 12.2% to $745 million, while international sales decreased by 17.4% to $68.2 million [2] - Specialty Technology Solutions' revenues increased by 9.2% to $789 million in Q4 fiscal 2025, driven by growth in North America [2] Profitability Metrics - The cost of sales for Q4 was $708 million, up 9.1% year-over-year, with gross profit totaling $105 million, an 8% increase from $97 million in the prior year [4] - Adjusted EBITDA rose by 13% year-over-year to $38.6 million, with an adjusted EBITDA margin of 4.7%, slightly up from 4.6% in the previous year [5] Cash Flow and Balance Sheet - As of June 30, 2025, the company reported cash and cash equivalents of $126 million, down from $185 million a year earlier [6] - Operating activities generated $112 million in cash for fiscal 2025, a decrease from $372 million in the prior year [6] Fiscal Year Performance - For fiscal 2025, adjusted earnings per share were $3.57, compared to $3.08 in the prior year, beating the Zacks Consensus Estimate of $3.47 [7] - Total revenues for fiscal 2025 were $3.04 billion, down 6.7% year-over-year, but still exceeding the Zacks Consensus Estimate of $3.01 billion [7] Share Price Performance - The company's shares have declined by 8.7% over the past year, contrasting with an 18% growth in the industry [10]