Financial Data and Key Metrics Changes - In Q2, net sales grew 3% year-over-year in both segments, while gross profits increased by 1% year-over-year [7] - Profitability was negatively impacted by unexpected expenses, leading to declines in both gross profit and EBITDA margins compared to Q1 [4] - The company ended Q2 with approximately $83 million in cash and a net debt leverage ratio of approximately 0 on a trailing 12-month Adjusted EBITDA basis [8] - Adjusted ROIC was 11.9% for the quarter and 13.3% for the first half of FY 2026 [9] Business Line Data and Key Metrics Changes - Specialty Technology Solutions segment saw net sales increase by 3% year-over-year and 4% quarter-over-quarter, with gross profits also increasing by 1% year-over-year [7] - The Intelisys and Advisory segment reported a 3% year-over-year increase in net sales, with annual net billings rising to approximately $2.85 billion [8] Market Data and Key Metrics Changes - The percentage of gross profits from recurring revenues in the Specialty Technology Solutions segment grew to approximately 18%, aided by acquisitions [8] - Brazil's organic sales were down 9% year-over-year, attributed to challenging market conditions [28][30] Company Strategy and Development Direction - The company is launching a new converged communication sales team to unify communications products and services, aiming to capitalize on the convergence of hardware, cloud, and customer experience technologies [4][5] - The strategy focuses on helping channel partners deliver innovative, converged solutions, driving organic net sales and free cash flow [6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for growth in the second half of the fiscal year, despite a reduction in guidance due to slower-than-expected large deal closures [10][51] - The company is confident in its business model and expects to maintain at least $80 million in free cash flow for the year [11][58] Other Important Information - The company is exploring acquisition opportunities to expand its technology stack and capabilities [9] - Share repurchases for the quarter totaled $18 million, with $179 million remaining under the share repurchase authorization [9] Q&A Session Summary Question: Could you provide more details on the period costs mentioned? - Management indicated that higher costs were related to mix and freight expenses, which are expected to be more period-related [14] Question: What caused the slower growth in the technology segment? - Management noted that large deals were being broken into smaller pieces, affecting invoicing and revenue recognition [15] Question: Are there concerns about pricing increases due to supply shortages? - Management acknowledged potential challenges from memory supply issues but indicated that current guidance does not reflect significant impacts from shortages [24] Question: What is the outlook for Intelisys sales in the second half of 2026? - Management believes that new order growth will accelerate, driven by additional sales capabilities and a focus on acquiring new customers [25][26] Question: How does the company view the competitive environment in the TSD market? - Management noted that the TSD space remains competitive, with a shift towards organic growth among competitors [44][45] Question: What are the priorities around capital allocation following the guidance reduction? - Management emphasized maintaining focus on three-year strategic goals, including share repurchases and growth in gross profit contributions [60][62]

ScanSource (NasdaqGS:SCSC) Q2 2026 Earnings call February 05, 2026 10:30 AM ET Company ParticipantsAdam Tindle - Managing DirectorGuy Hardwick - DirectorMary Gentry - Senior VP, Finance and TreasurerMike Baur - CEOSteve Jones - Senior EVP and CFOConference Call ParticipantsGreg Burns - Senior AnalystKeith Housum - Managing Director and Research AnalystOperatorWelcome to the ScanSource quarterly earnings conference call. All lines have been placed in a listen-only mode until the question-and-answer session. ...

ScanSource (NasdaqGS:SCSC) Q2 2026 Earnings call February 05, 2026 10:30 AM ET Speaker6Welcome to the ScanSource quarterly earnings conference call. All lines have been placed in a listen-only mode until the question-and-answer session. Today's call is being recorded. If anyone has any objections, you may disconnect at this time. I would now like to turn the call over to Mary Gentry, Senior Vice President, Finance and Treasurer. Please go ahead.Speaker4Good morning, and thank you for joining us. Our call wi ...

ScanSource (SCSC) came out with quarterly earnings of $0.8 per share, missing the Zacks Consensus Estimate of $1 per share. This compares to earnings of $0.85 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -20.00%. A quarter ago, it was expected that this technology products distributor would post earnings of $0.91 per share when it actually produced earnings of $1.06, delivering a surprise of +16.48%.Over the last four quart ...

Financial Performance - Net sales for the quarter ended December 31, 2025, were $766.5 million, an increase from $747.5 million in the same quarter of 2024, representing a growth of 1.4%[18] - Gross profit for the quarter was $102.9 million, slightly up from $101.7 million year-over-year, indicating a gross margin of approximately 13.4%[18] - Net income for the quarter was $16.5 million, compared to $17.1 million in the prior year, reflecting a decrease of 3.3%[18] - Total revenue for the quarter ended December 31, 2025, was $766,512 thousand, an increase from $747,497 thousand in the same quarter of 2024, representing a year-over-year growth of approximately 2.0%[48][49] - Recurring revenue for the quarter ended December 31, 2025, was $42,023 thousand, compared to $36,262 thousand for the same quarter in 2024, indicating a growth of about 15.0%[48][49] - Net income for the quarter ended December 31, 2025, was $16,493 thousand, compared to $17,053 thousand for the same quarter in 2024, reflecting a decrease of approximately 3.3%[52] - Basic earnings per share for the quarter ended December 31, 2025, was $0.75, compared to $0.72 for the same quarter in 2024, showing an increase of about 4.2%[52] Assets and Liabilities - The company reported total current assets of $1.3 billion as of December 31, 2025, down from $1.37 billion at June 30, 2025[15] - Total liabilities decreased to $830.8 million from $879.2 million, showing a reduction of approximately 5.5%[15] - The Company recorded total debt of $102,663 thousand as of December 31, 2025, down from $136,149 thousand as of June 30, 2025, representing a reduction of approximately 24.5%[58] - The Company reported accumulated other comprehensive loss of $(116,414) thousand as of December 31, 2025, compared to $(114,424) thousand at June 30, 2025[53] - As of December 31, 2025, total assets were $1,741,671, a decrease from $1,785,606 as of June 30, 2025[98] Cash Flow and Investments - Cash provided by operating activities increased to $54,052,000 for the six months ended December 31, 2025, up from $38,642,000 in 2024, marking a 39.8% increase[27] - The company reported a decrease in cash and cash equivalents, ending the period at $83,466,000, down from $126,157,000 at the beginning of the period, a decline of 33.8%[27] - Total capital expenditures for the six months ended December 31, 2025, were $4,370,000, slightly higher than $4,348,000 in the same period of 2024[27] - The company repurchased common stock totaling $38,687,000 during the six months ended December 31, 2025, compared to $52,342,000 in the same period of 2024, a reduction of 26.2%[27] - The company’s depreciation and amortization expenses for the six months ended December 31, 2025, were $12,138,000, down from $15,603,000 in 2024, a decrease of 22.5%[27] Foreign Currency and Derivatives - The company experienced a foreign currency translation adjustment loss of $5.6 million for the quarter, compared to a loss of $18.7 million in the same quarter of 2024[20] - The company recorded net foreign currency exchange losses of $658,000 for the quarter ended December 31, 2025, compared to gains of $252,000 for the same quarter in 2024[70] - The notional amounts of outstanding foreign currency derivatives were $32.2 million as of December 31, 2025, up from $26.2 million as of June 30, 2025[70] Segment Performance - The Specialty Technology Solutions segment generated net sales of $741.5 million for the quarter ended December 31, 2025, up from $723.3 million in the same quarter of 2024, marking an increase of approximately 2.9%[95] - The Intelisys & Advisory segment reported net sales of $25.0 million for the quarter ended December 31, 2025, compared to $24.2 million in the same quarter of 2024, reflecting a growth of about 3.2%[95] Acquisitions and Goodwill - ScanSource acquired Resourcive for approximately $56.7 million on August 8, 2024, and Advantix for $18.4 million on October 20, 2025, with contingent consideration valued at $13.4 million[14][15][16] - Goodwill increased to $244,178 thousand as of December 31, 2025, from $230,820 thousand at June 30, 2025, due to recent acquisitions[56] Tax and Lease Obligations - The effective tax rate for the quarter ended December 31, 2025, was 15.1%, down from 21.6% for the six months ended December 31, 2024[108] - The weighted-average remaining lease term at December 31, 2025, was 2.87 years, with a weighted-average discount rate of 6.39%[103] - Operating lease costs for the six months ended December 31, 2025, were $3,255, an increase from $2,889 in 2024[103] Future Commitments - The company plans to continue earnout payments to sellers based on performance results through fiscal year 2028 for Advantix and through fiscal years 2026 to 2028 for DataXoom[83][84]

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 SECOND QUARTER RESULTS GREENVILLE, SC -- February 5, 2026 -- ScanSource, Inc. (NASDAQ: SCSC), a leading technology distributor uniquely positioned to address complex, converging technologies, today announced financial results for the second quarter ended December 31, 2025. | | | | | Second Quar ...

智通财经APP获悉，Omdia研究显示，2024年技术服务分销(TSD)市场在IT和电信渠道的总账单额达到166亿美元，同比增长14.5%。前六大TSD占据72.3% 市场份额，并实现13.4%的同比增长。连接性销售依然占主导，但其增长速度低于云/托管、网络安全及 UC/CCaaS 解决方案。随着市场成熟，TSD 必须优 化合作伙伴组合、扩大与 MSP(托管服务提供商)和 VAR(增值经销商)的合作，以提升平均合同价值(ACV)；并通过提升赋能支持来提高技术顾问的留存 率。风险投资和私募股权投资正在重塑执行策略，推动合作伙伴分级、供应商优化以及更完善的数据/AI 内部工具。 TSD市场正在经历由创新、战略性投资和不断演变的合作伙伴动态驱动的变革性增长。对于IT和电信供应商及渠道合作伙伴而言，理解市场的发展轨迹和 关键参与者，对抓住未来机遇至关重要。 市场概览：增长、规模与主导地位 2024年，TSD市场表现亮眼，总账单额达到166亿美元，同比增长14.5%。这一增长体现了市场的韧性，以及对持续性收入模式的长期需求。 前六大TSD ——Telarus、Intelisys、AVANT Communications ...

Core Viewpoint - ScanSource, Inc. plans to release its second quarter fiscal year 2026 results on February 5, 2026, at approximately 8:30 a.m. ET, followed by an earnings conference call at 10:30 a.m. ET on the same day [1] Company Information - ScanSource, Inc. is a leading technology distributor that focuses on addressing complex, converging technologies [1]

Core Viewpoint - Investors are evaluating the attractiveness of ScanSource (SCSC) and Symbotic Inc. (SYM) for value investment opportunities, with SCSC currently appearing more favorable based on various financial metrics [1][3]. Valuation Metrics - SCSC has a forward P/E ratio of 9.66, significantly lower than SYM's forward P/E of 148.62, indicating that SCSC may be undervalued compared to SYM [5]. - The PEG ratio for SCSC is 0.64, while SYM's PEG ratio is 4.95, suggesting that SCSC has a better balance between its price and expected earnings growth [5]. - SCSC's P/B ratio stands at 0.96, contrasting sharply with SYM's P/B ratio of 73.15, further indicating SCSC's relative undervaluation [6]. Value Grades - SCSC has received a Value grade of A, reflecting its strong valuation metrics, while SYM has been assigned a Value grade of F, highlighting its poor valuation performance [6]. - The stronger estimate revision activity for SCSC compared to SYM suggests a more favorable earnings outlook for SCSC, making it a more attractive option for value investors [7].

Core Viewpoint - Investors in the Technology Services sector may find value in either ScanSource (SCSC) or Symbotic Inc. (SYM), with a closer examination needed to determine which stock is more appealing to value investors [1] Valuation Metrics - SCSC has a forward P/E ratio of 10.36, while SYM has a significantly higher forward P/E of 153.30 [5] - The PEG ratio for SCSC is 0.69, indicating a more favorable valuation compared to SYM's PEG ratio of 5.11 [5] - SCSC's P/B ratio stands at 1.03, contrasting sharply with SYM's P/B ratio of 77.8, suggesting SCSC is more aligned with traditional valuation metrics [6] Earnings Outlook - SCSC currently holds a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while SYM has a Zacks Rank of 4 (Sell), suggesting a less favorable earnings outlook [3] - The solid earnings outlook for SCSC, combined with its favorable valuation metrics, positions it as the superior value option compared to SYM [7]