# SCANSOURCE, INC. (SCSC)

Informational only - not investment advice.

CIK: 0000918965
SIC: 5045 Wholesale-Computers & Peripheral Equipment & Software
SIC breadcrumb: [Wholesale Trade](/division/F/) > [SIC Major Group 50](/major-group/50/) > [SIC 5045 Wholesale-Computers & Peripheral Equipment & Software](/industry/5045/)
Latest 10-K filed: 2025-08-21
SEC page: https://www.sec.gov/edgar/browse/?CIK=918965
Filing source: https://www.sec.gov/Archives/edgar/data/918965/000091896525000029/scsc-20250630.htm

## At a glance

FY2025 · period end 2025-06-30 · filed 2025-08-21 · accession 0000918965-25-000029 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000918965.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 3,040,810,000 USD | 2025 | verified |
| Net income | 71,548,000 USD | 2025 | verified |
| Assets | 1,785,606,000 USD | 2025 | verified |
| Free cash flow | 104,063,000 USD | 2025 | computed |
| Net margin | 2.35% | 2025 | computed |
| Operating margin | 2.80% | 2025 | computed |
| Revenue YoY | -6.72% | 2025 | computed |
| ROE | 7.89% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | SCSC | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 2.4% | 2.8% | 42 | 39 |
| Operating margin | 2.8% | 5.0% | 28 | 37 |
| Revenue growth | -6.7% | 4.0% | 3 | 39 |
| FCF margin | 3.4% | 2.4% | 59 | 38 |
| ROE | 7.9% | 9.1% | 45 | 39 |
| ROA | 4.0% | 3.9% | 53 | 39 |
| Liabilities / equity | 0.97 | 1.51 | 39 | 39 |
| Current ratio | 2.01 | 2.21 | 46 | 38 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 50 SIC Major Group 50, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 3040810000 | USD | 2025 | 2025-08-21 |
| Net income | 71548000 | USD | 2025 | 2025-08-21 |
| Assets | 1785606000 | USD | 2025 | 2025-08-21 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2025-08-21. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000918965.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue |  | 3,568,186,000 | 3,164,709,000 | 3,249,799,000 | 3,047,734,000 | 3,150,806,000 | 3,529,935,000 | 3,787,721,000 | 3,259,809,000 | 3,040,810,000 |
| Net income | 63,619,000 | 69,246,000 | 33,153,000 | 57,597,000 | -192,654,000 | 10,795,000 | 88,798,000 | 89,809,000 | 77,060,000 | 71,548,000 |
| Operating income | 96,877,000 | 88,239,000 | 69,006,000 | 94,734,000 | -64,967,000 | 61,483,000 | 122,167,000 | 135,886,000 | 90,324,000 | 85,200,000 |
| Gross profit | 355,440,000 | 383,596,000 | 369,306,000 | 392,803,000 | 355,569,000 | 350,716,000 | 426,524,000 | 449,239,000 | 399,052,000 | 408,646,000 |
| Diluted EPS | 2.38 | 2.71 | 1.29 | 2.24 | -7.59 | 0.42 | 3.45 | 3.54 | 3.06 | 3.00 |
| Operating cash flow |  |  | 31,447,000 | 16,032,000 | 182,033,000 | 116,767,000 | -124,354,000 | -35,769,000 | 371,647,000 | 112,349,000 |
| Capital expenditures | 12,081,000 | 8,849,000 | 6,998,000 | 5,797,000 | 6,387,000 | 2,363,000 | 6,849,000 | 9,979,000 | 8,555,000 | 8,286,000 |
| Share buybacks | 100,206,000 | 20,882,000 | 0.00 | 9,483,000 | 6,078,000 | 0.00 | 18,203,000 | 15,651,000 | 42,895,000 | 106,524,000 |
| Assets | 1,491,185,000 | 1,718,303,000 | 1,945,295,000 | 2,067,261,000 | 1,692,094,000 | 1,671,684,000 | 1,937,428,000 | 2,068,169,000 | 1,779,032,000 | 1,785,606,000 |
| Liabilities | 716,689,000 | 881,158,000 | 1,078,919,000 | 1,153,132,000 | 1,013,848,000 | 940,493,000 | 1,130,900,000 | 1,162,871,000 | 854,777,000 | 879,197,000 |
| Stockholders' equity | 774,496,000 | 837,145,000 | 866,376,000 | 914,129,000 | 678,246,000 | 731,191,000 | 806,528,000 | 905,298,000 | 924,255,000 | 906,409,000 |
| Cash and cash equivalents | 61,400,000 | 56,094,000 | 25,530,000 | 19,305,000 | 29,485,000 | 62,718,000 | 37,987,000 | 36,178,000 | 185,460,000 | 126,157,000 |
| Free cash flow |  |  | 24,449,000 | 10,235,000 | 175,646,000 | 114,404,000 | -131,203,000 | -45,748,000 | 363,092,000 | 104,063,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  | 1.94% | 1.05% | 1.77% | -6.32% | 0.34% | 2.52% | 2.37% | 2.36% | 2.35% |
| Operating margin |  | 2.47% | 2.18% | 2.92% | -2.13% | 1.95% | 3.46% | 3.59% | 2.77% | 2.80% |
| Return on equity | 8.21% | 8.27% | 3.83% | 6.30% | -28.40% | 1.48% | 11.01% | 9.92% | 8.34% | 7.89% |
| Return on assets | 4.27% | 4.03% | 1.70% | 2.79% | -11.39% | 0.65% | 4.58% | 4.34% | 4.33% | 4.01% |
| Liabilities / equity | 0.93 | 1.05 | 1.25 | 1.26 | 1.49 | 1.29 | 1.40 | 1.28 | 0.92 | 0.97 |
| Current ratio | 2.10 | 1.95 | 1.92 | 2.11 | 1.67 | 1.66 | 1.87 | 2.11 | 2.10 | 2.01 |

## As-reported value updates

9 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/SCSC/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-07. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000918965.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2023-Q1 | 2022-09-30 |  |  | 0.94 | reported discrete quarter |
| 2023-Q2 | 2022-12-31 |  |  | 1.01 | reported discrete quarter |
| 2023-Q3 | 2023-03-31 |  |  | 0.83 | reported discrete quarter |
| 2023-Q4 | 2023-06-30 | 947,148,000 | 18,812,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2023-09-30 | 876,305,000 | 15,432,000 | 0.61 | reported discrete quarter |
| 2024-Q2 | 2023-09-30 |  | 15,432,000 |  | reported discrete quarter |
| 2024-Q2 | 2023-12-31 | 884,792,000 |  | 1.29 | reported discrete quarter |
| 2024-Q3 | 2023-12-31 |  | 32,726,000 |  | reported discrete quarter |
| 2024-Q3 | 2024-03-31 | 752,599,000 |  | 0.50 | reported discrete quarter |
| 2024-Q4 | 2024-06-30 | 746,113,000 | 16,096,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2024-09-30 | 775,580,000 | 16,974,000 | 0.69 | reported discrete quarter |
| 2025-Q2 | 2024-09-30 |  | 16,974,000 |  | reported discrete quarter |
| 2025-Q2 | 2024-12-31 | 747,497,000 |  | 0.70 | reported discrete quarter |
| 2025-Q3 | 2024-12-31 |  | 17,053,000 |  | reported discrete quarter |
| 2025-Q3 | 2025-03-31 | 704,847,000 |  | 0.74 | reported discrete quarter |
| 2025-Q4 | 2025-06-30 | 812,886,000 | 20,090,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2025-09-30 | 739,650,000 | 19,878,000 | 0.89 | reported discrete quarter |
| 2026-Q2 | 2025-09-30 |  | 19,878,000 |  | reported discrete quarter |
| 2026-Q2 | 2025-12-31 | 766,512,000 |  | 0.75 | reported discrete quarter |
| 2026-Q3 | 2025-12-31 |  | 16,493,000 |  | reported discrete quarter |
| 2026-Q3 | 2026-03-31 | 766,790,000 |  | 0.78 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from SCSC's latest 10-K: [/company/SCSC/business/](/company/SCSC/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from SCSC's latest 10-K: [/company/SCSC/risk-factors/](/company/SCSC/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/918965/000091896526000028/scsc-20260331.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-05-07
Report date: 2026-03-31

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Overview

ScanSource is a leading technology distributor uniquely positioned to address complex, converging technologies and to accelerate growth for channel sales partners across hardware, SaaS, connectivity and cloud. We provide technology solutions and services from approximately 500 leading suppliers of mobility and barcode, POS, payment terminals, physical security, networking, communications, connectivity and cloud services to our approximately 25,000 channel sales partners located primarily in the United States and Brazil.

We operate our business under a management structure that enhances our technology distribution growth strategy. Our segments operate primarily in the United States and Brazil:

•Specialty Technology Solutions

•Intelisys & Advisory

We sell hardware, SaaS, connectivity and cloud solutions and services to channel sales partners that are designed to solve end users’ challenges. We operate distribution facilities that primarily support our United States business in Mississippi, California and Kentucky. Brazil distribution facilities are located in the Brazilian states of Paraná, Espirito Santo and Santa Catarina. We provide some of our digital products, which include SaaS and subscriptions, through our digital tools and platforms.

Recent Developments

Impact of the Macroeconomic Environment, Including Growth Outlook, Inflation and Tariffs

The macroeconomic environment, including the economic impacts of growth outlook, inflationary pressures, tariffs and evolving geopolitical conflicts and trade relationships, continues to create significant uncertainty and may adversely affect our financial condition and results of operations. In 2026, the U.S. Supreme Court invalidated the tariffs imposed under the International Emergency Economic Powers Act (IEEPA); however, certain other tariffs remain in effect and the current administration has indicated that it will continue seeking to implement tariffs through other statutory authorities. Further, the ongoing conflict with Iran and geopolitical tensions has resulted in volatility in the global energy and commodity markets and increased uncertainty in the macroeconomic environment. International trade policy and diplomatic dynamics continue to shift, and the full implications remain uncertain. We remain mindful of the potential impact these conditions could have on our channel sales partners, suppliers and end-user demand. We are actively monitoring changes to the global macroeconomic environment and assessing the potential impacts these challenges may have on our financial condition, results of operations and liquidity. We expect to pass through to our channel sales partners any supplier price increases resulting from tariffs or other factors. We are also mitigating related risks through strategic planning and maintaining financial flexibility; however, we cannot predict the effectiveness of our mitigation strategies or the ultimate impact of tariffs and the global macroeconomic environment on our financial condition or results of operations.

Our Strategy

Our strategy is to drive sustainable, profitable growth by providing complex, converging technology solutions through a growing ecosystem of channel sales partners leveraging our people, processes and tools. Our goal is to provide exceptional experiences for our channel sales partners, suppliers and employees, and we strive for operational excellence. Our differentiated technology distribution strategy utilizes multiple sales models to offer hardware, SaaS, connectivity and cloud services from

29

Table of Contents

leading technology suppliers to channel sales partners that solve end users’ challenges. ScanSource enables channel sales partners to deliver solutions for their end users to address changing buying and consumption patterns. Our solutions may include a combination of offerings from multiple suppliers or give our channel sales partners access to additional services. As a trusted adviser to our channel sales partners, we provide converged solutions through our strong understanding of end-user needs.

30

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Results of Operations

Net Sales

We have two reportable segments, which are based on sales channels. The following tables summarize our net sales results by operating segment and by geographic location for the quarters and nine months ended March 31, 2026 and 2025:

[[GREPCENT_TABLE]]
[["","Quarter ended March 31,","","","","% Change, Constant Currency, Excluding Acquisitions (a)"],["Net Sales by Segment:","2026","","2025","","$ Change","","% Change"],["","(in thousands)"],["Specialty Technology Solutions","$","740,765","","","$","678,433","","","$","62,332","","","9.2","%","","8.0","%"],["Intelisys & Advisory","26,025","","","26,414","","","(389)","","","(1.5)","%","","(1.5)","%"],["Total net sales","$","766,790","","","$","704,847","","","$","61,943","","","8.8","%","","7.6","%"],["","Nine months ended March 31,","","","","% Change, Constant Currency, Excluding Acquisitions (a)"],["","2026","","2025","","$ Change","","% Change"],["","(in thousands)"],["Specialty Technology Solutions","$","2,197,752","","","$","2,154,009","","","$","43,743","","","2.0","%","","1.1","%"],["Intelisys & Advisory","75,201","","","73,915","","","1,286","","","1.7","%","","0.7","%"],["Total net sales","$","2,272,953","","","$","2,227,924","","","$","45,029","","","2.0","%","","1.1","%"]]
[[/GREPCENT_TABLE]]

(a) A reconciliation of non-GAAP net sales in constant currency, excluding acquisitions, is presented at the end of Results of Operations, under Non-GAAP Financial Information.

Specialty Technology Solutions

The Specialty Technology Solutions segment consists of sales to channel partners primarily in the United States and Brazil. For the quarter ended March 31, 2026, net sales increased $62.3 million, or 9.2%, compared to the prior-year period. Excluding the impact of acquisitions and the impact of foreign exchange rate fluctuations, adjusted net sales increased $54.1 million, or 8.0%, for the quarter ended March 31, 2026. The increase for the quarter is primarily a result of growth across most technologies in North America. For the nine months ended March 31, 2026, net sales increased $43.7 million, or 2.0%, compared to the prior-year period. Excluding the impact from acquisitions and the impact from foreign exchange rate fluctuations, adjusted net sales increased $24.4 million, or 1.1%, for the nine months ended March 31, 2026, compared to the prior-year period. The increase in net sales for the nine months ended March 31, 2026 is primarily due to growth across most technologies in North America.

Intelisys & Advisory

The Intelisys & Advisory segment consists of sales and services to both channel partners (Intelisys) and end users (Advisory) in the United States. For the quarter ended March 31, 2026, net sales decreased $0.4 million, or 1.5%, compared to the prior-year period. The decrease in net sales for the quarter ended March 31, 2026 primarily reflects lower Resourcive sales. For the nine months ended March 31, 2026, net sales increased $1.3 million, or 1.7%, compared to the prior-year periods. The increase in net sales for the nine months ended March 31, 2026 primarily reflects higher Intelisys sales. Excluding the impact of acquisitions, adjusted net sales increased $0.5 million, or 0.7%, for the nine months ended March 31, 2026. Quarterly annualized net billings for Intelisys totaled approximately $2.88 billion.

31

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[[GREPCENT_TABLE]]
[["","Quarter ended March 31,","","","","% Change, Constant Currency, Excluding Acquisitions (a)"],["Net Sales by Geography:","2026","","2025","","$ Change","","% Change"],["","(in thousands)"],["United States","$","710,281","","","$","656,964","","","$","53,317","","","8.1","%","","7.7","%"],["Brazil","56,509","","","47,883","","","8,626","","","18.0","%","","6.2","%"],["Total net sales (b)","$","766,790","","","$","704,847","","","$","61,943","","","8.8","%","","7.6","%"],["","Nine months ended March 31,","","","","% Change, Constant Currency, Excluding Acquisitions (a)"],["","2026","","2025","","$ Change","","% Change"],["","(in thousands)"],["United States","$","2,099,864","","","$","2,056,094","","","$","43,770","","","2.1","%","","1.7","%"],["Brazil","173,089","","","171,830","","","1,259","","","0.7","%","","(5.8)","%"],["Total net sales (b)","$","2,272,953","","","$","2,227,924","","","$","45,029","","","2.0","%","","1.1","%"]]
[[/GREPCENT_TABLE]]

(a) A reconciliation of non-GAAP net sales in constant currency is presented at the end of Results of Operations in the non-GAAP section.

(b) Countries outside of the United States and Brazil represent less than 5.0% of net sales for the quarters and nine months ended March 31, 2026 and 2025.

32

Table of Contents

Gross Profit

The following table summarizes our gross profit for the quarters and nine months ended March 31, 2026 and 2025:

[[GREPCENT_TABLE]]
[["","Quarter ended March 31,","","","","","","% of Net Sales March 31,"],["","2026","","2025","","$ Change","","% Change","","2026","","2025"],["","(in thousands)"],["Specialty Technology Solutions","$","81,421","","","$","73,994","","","$","7,427","","","10.0","%","","11.0","%","","10.9","%"],["Intelisys & Advisory","25,703","","","26,208","","","(505)","","","(1.9)","%","","98.8","%","","99.2","%"],["Gross profit","$","107,124","","","$","100,202","","","$","6,922","","","6.9","%","","14.0","%","","14.2","%"],["","Nine months ended March 31,","","","","","","% of Net Sales March 31,"],["","2026","","2025","","$ Change","","% Change","","2026","","2025"],["","(in thousands)"],["Specialty Technology Solutions","$","243,552","","","$","230,215","","","$","13,337","","","5.8","%","","11.1","%","","10.7","%"],["Intelisys & Advisory","73,955","","","73,329","","","626","","","0.9","%","","98.3","%","","99.2","%"],["Gross profit","$","317,507","","","$","303,544","","","$","13,963","","","4.6","%","","14.0","%","","13.6","%"]]
[[/GREPCENT_TABLE]]

Our gross profit is primarily affected by sales volume and gross margin mix. Gross margin mix is impacted by multiple factors, which include sales mix (proportion of sales of higher margin products or services relative to total sales), supplier program recognition (consisting of volume rebates, inventory price changes and purchase discounts) and freight costs. Increases in supplier program recognition decrease cost of goods sold, thereby increasing gross profit. Gross profit margin in our Intelisys & Advisory segment reflects a higher contribution of recurring revenue which is recorded on a net basis.

Specialty Technology Solutions

For the quarter ended March 31, 2026, gross profit dollars for the Specialty Technology Solutions segment increased $7.4 million, or 10.0%, compared to the prior-year quarter. Higher sales volumes, after considering cost of goods sold, increased gross profit by $6.8 million, and favorable supplier recognition program increased gross profit by $0.6 million. Gross profit margin increased slightly over the prior-year quarter to 11.0%.

For the nine months ended March 31, 2026, gross profit dollars increased $13.3 million, or 5.8%, compared to the prior-year period. Favorable supplier program recognition and sales mix increased gross profit by $8.7 million, and higher sales volumes, after considering cost of goods sold, increased gross profit by $4.7 million. Gross profit margin increased 39 basis points over the prior-year period to 11.1%.

Intelisys & Advisory

For the quarter ended March 31, 2026, gross profit dollars for the Intelisys & Advisory segment decreased $0.5 million, or 1.9%, compared to the prior-year quarter. Lower sales volumes, decreased gross profit for the quarter. Gross profit margin decreased 46 basis points compared to the prior-year quarter to 98.8%.

For the nine months ended March 31,

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/918965/000091896525000029/scsc-20250630.htm
Complete FY 2025 MD&A: /company/SCSC/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2025-08-21
Report date: 2025-06-30

ITEM 7.    Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Overview

ScanSource is a leading technology distributor connecting devices to the cloud and accelerating growth for channel sales partners across hardware, SaaS, connectivity and cloud. We provide technology solutions and services from approximately 500 leading suppliers of mobility and barcode, POS, payment terminals, physical security, networking, communications, connectivity and cloud services to our approximately 25,000 channel sales partners located primarily in the United States, Canada and Brazil.

We operate our business under a management structure that enhances our technology distribution growth strategy. Our segments operate primarily in the United States, Canada and Brazil:

•Specialty Technology Solutions

•Intelisys & Advisory

We sell hardware, SaaS, connectivity and cloud solutions and services to channel sales partners that are designed to solve end users’ challenges. We operate distribution facilities that support our United States and Canada business in Mississippi, California and Kentucky. Brazil distribution facilities are located in the Brazilian states of Paraná, Espirito Santo and Santa Catarina. We provide some of our digital products, which include SaaS and subscriptions, through our digital tools and platforms.

Our key suppliers include AT&T, Avaya, Axis, Cisco, Comcast Business, Dell, Elo, Extreme, Five9, Fortinet, Hanwha, Honeywell, HP Poly, HPE/Aruba, Ingenico, Lumen, Microsoft, NiCE, RingCentral, Ubiquiti, Verifone, Verizon, Zebra Technologies and Zoom.

Recent Developments

Impact of the Macroeconomic Environment, Including Forecasted Growth, Inflation and Tariffs

The macroeconomic environment, including the economic impacts of forecasted growth, inflation, tariffs and shifting relations between the U.S. and other countries, continues to create significant uncertainty and may adversely affect our financial condition and results of operations. In 2025, the U.S. announced a variety of additional tariffs on goods from multiple nations and trading blocks and has been targeted with reciprocal tariffs and other retaliatory actions in response. Although the U.S. has announced pauses on certain tariffs, negotiations and the state of international trade policy and relations continue to evolve. We are mindful of the potential impact these conditions could have on our channel sales partners, suppliers and end-user demand and we are actively monitoring changes to the global macroeconomic environment and assessing the potential impacts these challenges may have on our financial condition, results of operations and liquidity. We expect to pass price increases from our suppliers resulting from tariffs to our channel sales partners. We are also mitigating risks through strategic planning and maintaining financial flexibility, but we cannot predict the outcome of our mitigation strategies or the ultimate impact of tariffs and the global macroeconomic environment on our financial condition or results of operations.

On July 4, 2025, the One Big Beautiful Bill Act (“the Act”) was signed into law. The Act permanently extends key provisions of the Tax Cuts and Jobs Act, including 100% bonus depreciation, and introduces changes to the international tax framework. We are currently assessing the impact of the Act on our future effective tax rate, tax liabilities, and cash taxes.

Business Acquisitions

On August 8, 2024, we completed the acquisition of substantially all of the assets of Secure Path Networks, LLC doing business as Resourcive ("Resourcive"), a leading technology advisor. Resourcive delivers strategic IT sourcing solutions to mid-market and enterprise businesses.

On August 15, 2024, we completed the acquisition of substantially all of the assets of Advantix Solutions Group, Inc. ("Advantix"), a managed connectivity experience provider specializing in wireless enablement solutions.

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Index to Financial Statements

Cost Reduction and Restructuring Program

In September 2024, as part of a strategic review of organizational structure and operations, the Company executed a cost reduction and restructuring program to align our cost structure with demand expectations in our business. These actions are expected to result in approximately $10.5 million in annualized savings in selling, general and administrative expenses. In January 2025, we executed an additional cost reduction and restructuring plan. These actions resulted in approximately $10.0 million in annualized savings in selling, general and administrative expenses.

Our Strategy

Our strategy is to drive sustainable, profitable growth by orchestrating complex, converging technology solutions through a growing ecosystem of channel sales partners leveraging our people, processes and tools. Our goal is to provide exceptional experiences for our channel sales partners, suppliers and employees, and we strive for operational excellence. Our technology distribution strategy utilizes multiple sales models to offer hardware, SaaS, connectivity and cloud services from leading technology suppliers to channel sales partners that solve end users’ challenges. ScanSource enables channel sales partners to deliver solutions for their end users to address changing buying and consumption patterns. Our solutions may include a combination of offerings from multiple suppliers or give our channel sales partners access to additional services. As a trusted adviser to our channel sales partners, we provide customized solutions through our strong understanding of end-user needs.

Results of Operations from Continuing Operations

The following table sets forth for the periods indicated certain income and expense items as a percentage of net sales. Totals may not sum due to rounding.

[[GREPCENT_TABLE]]
[["","Fiscal Year Ended June 30,"],["","2025","","2024","","2023"],["Statement of income data:"],["Net sales","100.0","%","","100.0","%","","100.0","%"],["Cost of goods sold","86.6","","","87.8","","","88.1"],["Gross profit","13.4","","","12.2","","","11.9"],["Selling, general and administrative expenses","9.4","","","8.5","","","7.5"],["Depreciation expense","0.3","","","0.3","","","0.3"],["Intangible amortization expense","0.6","","","0.5","","","0.4"],["Restructuring and other charges","0.2","","","0.1","","","0.0"],["Change in fair value of contingent consideration","0.1","","","0.0","","","0.0"],["Operating income","2.8","","","2.8","","","3.6"],["Interest expense","0.3","","","0.4","","","0.5"],["Interest income","(0.4)","","","(0.3)","","","(0.2)"],["Gain on sale of business","0.0","","","(0.4)","","","0.0"],["Other (income) expense, net","(0.2)","","","0.0","","","0.0"],["Income from continuing operations before income taxes","3.1","","","3.1","","","3.2"],["Provision for income taxes","0.8","","","0.7","","","0.9"],["Net income from continuing operations","2.4","","","2.4","","","2.3"],["Net income from discontinued operations","0.0","","","0.0","","","0.0"],["Net income","2.4","%","","2.4","%","","2.4","%"]]
[[/GREPCENT_TABLE]]

Comparison of Fiscal Years Ended June 30, 2025 and 2024

Below is a discussion of fiscal years ended June 30, 2025 and 2024. Please refer to Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our form 10-K for the fiscal year ended June 30, 2024 for a discussion of fiscal year ended June 30, 2023.

24

Table of Contents

Index to Financial Statements

Net Sales

We have two reportable segments, which are based on sales model. The following table summarizes our net sales results by business segment and by geographic location for the comparable fiscal years ended June 30, 2025 and 2024.

[[GREPCENT_TABLE]]
[["","2025","","2024","","$ Change","","% Change","","% Change Constant Currency (a)"],["","(in thousands)"],["Sales by Segment:"],["Specialty Technology Solutions","$","2,942,717","","","$","3,167,549","","","$","(224,832)","","","(7.1)","%","","(6.7)","%"],["Intelisys & Advisory","98,093","","","92,260","","","5,833","","","6.3","%","","(0.2)","%"],["Total net sales","$","3,040,810","","","$","3,259,809","","","$","(218,999)","","","(6.7)","%","","(6.5)","%"],["Sales by Geography Category:"],["United States","$","2,800,739","","","$","2,921,172","","","$","(120,433)","","","(4.1)","%","","(5.2)","%"],["International","240,071","","","338,637","","","(98,566)","","","(29.1)","%","","(18.5)","%"],["Total net sales","$","3,040,810","","","$","3,259,809","","","$","(218,999)","","","(6.7)","%","","(6.5)","%"],["(a) A reconciliation of non-GAAP net sales in constant currency, excluding acquisitions and divestitures is presented at the end of Results of Operations, under Non-GAAP Financial Information."]]
[[/GREPCENT_TABLE]]

Specialty Technology Solutions

The Specialty Technology Solutions segment consists of sales to channel sales partners in the United States, Canada and Brazil. During fiscal year 2025, net sales for this segment decreased $224.8 million, or 7.1%, compared to fiscal year 2024. Excluding the impact from foreign exchange fluctuations and the impact of divestitures and acquisitions, adjusted net sales for fiscal year 2025 decreased $212.3 million, or 6.7%, compared to the prior fiscal year. The decrease in net sales and in adjusted net sales is primarily due to a more cautious technology spending environment in the first half of the fiscal year.

Intelisys & Advisory

The Intelisys & Advisory segment consists of sales and services to both channel sales partners (Intelisys) and end users (Advisory) in the United States. During fiscal year 2025, net sales for this segment increased $5.8 million, or 6.3%, compared to fiscal year 2024. The increase in net sales reflects the addition of an acquisition. Excluding the impact from foreign exchange rate fluctuations and the impact from acquisitions, adjusted net sales decreased $0.2 million, or 0.2%, compared to the prior year primarily due to a more cautious technology spending environment.

For fiscal year 2025, Intelisys net billings, which are amounts billed by suppliers to end users and represents annual recurring revenue, totaled approximately $2.79 billion, an increase of 4.5%. The fiscal year 2025 Intelisys net billings resulted in Intelisys net sales of approximately $85.6 million. For our Intelisys business, net sales reflect the net commissions received from suppliers after paying channel sales partner commissions.

25

Table of Contents

Index to Financial Statements

Gross Profit

The following table summarizes our gross profit for the fiscal years ended June 30, 2025 and 2024:

[[GREPCENT_TABLE]]
[["","","","","","","","","","% of Sales June 30,"],["","2025","","2024","","$ Change","","% Change","","2025","","2024"],["","(in thousands)"],["Specialty Technology Solutions","$","311,402","","","$","307,257","","","$","4,145","","","1.3","%","","10.6","%","","9.7","%"],["Intelisys & Advisory","97,244","","","91,795","","","5,449","","","5.9","%","","99.1","%","","99.5","%"],["Total gross profit","$","408,646","","","$","399,052","","","$","9,594","","","2.4","%","","13.4","%","","12.2","%"]]
[[/GREPCENT_TABLE]]

Our gross profit is primarily affected by sales volume and gross margin mix. Gross margin mix is impacted by multiple factors, which include sales mix (proportion of sales of higher margin products or services relative to total sales), supplier program recognition (consisting of volume rebates, inventory price changes and purchase discounts) and freight costs. Increases in supplier program recognition decrease cost of goods sold, thereby increasing gross profit. Net sales derived from our Intelisys business contribute 100% to our gross profit dollars and margin as they have no associated cost of goods sold.

Specialty Technology Solutions

For the Specialty Technology Solutions segment, gross profit dollars increased $4.1 million. Gross marg

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/SCSC/mda/fy2025/
All MD&A years: /company/SCSC/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/SCSC/mda/fy2024/): filed 2024-08-27; accession 0000918965-24-000029 (https://www.sec.gov/Archives/edgar/data/918965/000091896524000029/scsc-20240630.htm)
- [FY 2023 MD&A](/company/SCSC/mda/fy2023/): filed 2023-08-22; accession 0000918965-23-000023 (https://www.sec.gov/Archives/edgar/data/918965/000091896523000023/scsc-20230630.htm)
- [FY 2022 MD&A](/company/SCSC/mda/fy2022/): filed 2022-08-23; accession 0000918965-22-000018 (https://www.sec.gov/Archives/edgar/data/918965/000091896522000018/scsc-20220630.htm)
- [FY 2021 MD&A](/company/SCSC/mda/fy2021/): filed 2021-08-24; accession 0000918965-21-000022 (https://www.sec.gov/Archives/edgar/data/918965/000091896521000022/scsc-20210630.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 5045 Wholesale-Computers & Peripheral Equipment & Software) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [PCE](/indicator/PCE/): Personal Consumption Expenditures
- [RSAFS](/indicator/RSAFS/): Advance Retail Sales: Retail Trade
- [BOPGSTB](/indicator/BOPGSTB/): U.S. International Trade in Goods and Services: Balance
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity

Macro-to-micro threads including this sector: [Money & trade](/thread/money-trade/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/SCSC.md · JSON record: /company/SCSC.json · verified financials: /company/SCSC/financials.json / /company/SCSC/financials.csv · machine TOC for the whole site: /llms.txt