Open the filing on EDGARSCANSOURCE REPORTS FIRST QUARTER RESULTS
Strong Demand Drives Net Sales and Gross Profit Growth in Both Segments
GREENVILLE, SC -- November 5, 2026 -- ScanSource, Inc. (NASDAQ: SCSC), a leading technology distributor uniquely positioned to address complex technologies, today announced financial results for the first quarter ended September 30, 2026.
| First Quarter Summary |
|---|
| Q1 FY27 | Q1 FY26 | Change |
|---|
| (in thousands, except percentages and per share data) |
|---|
| Select reported measures: | | | |
| Net sales | $962,294 | $739,650 | 30.1% |
| Gross profit | $116,944 | $107,473 | 8.8% |
| Gross profit margin % | 12.2% | 14.5% | -238bp |
| Operating income | $12,393 | $25,903 | -52.2% |
| GAAP net income | $8,691 | $19,878 | -56.3% |
| GAAP diluted EPS | $0.42 | $0.89 | -52.8% |
| Select Non-GAAP measures: | | | |
| Adjusted EBITDA | $31,298 | $38,590 | -18.9% |
| Adjusted EBITDA margin % | 3.25% | 5.22% | -197bp |
| Non-GAAP net income | $17,710 | $23,685 | -25.2% |
| Non-GAAP diluted EPS | $0.86 | $1.06 | -18.9% |
| 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. |
“Top-line demand was strong this quarter, and we grew net sales and gross profit in both segments,” said Mike Baur, Chair and CEO, ScanSource, Inc. “We’re executing our strategy and expanding our total addressable market. In September, we closed the MicroAge acquisition, which enhances our solution capabilities and aligns with our 3-year strategic goals.”
Quarterly Results
Net sales for the first quarter of fiscal year 2027 totaled $962.3 million, an increase of 30.1% year-over-year, or an increase of 26.8% on a non-GAAP basis. Net sales for products and services increased 30.8% year-over-year, and recurring revenue increased 15.7% year-over-year. For Specialty Technology Solutions, first quarter net sales of $917.3 million increased 28.2% year-over-year, driven by broad-based growth in North America. Intelisys & Solution Services net sales for the first quarter increased 85.9% year-over-year to $45.0 million including the MicroAge acquisition, or an increase of 3.2% on a non-GAAP basis reflecting Intelisys business growth.
Gross profit for the first quarter of fiscal year 2027 increased 8.8% year-over-year to $116.9 million, with a gross profit margin of 12.2% versus 14.5% in the prior-year quarter. The gross profit margin declined primarily due to sales mix, reflecting strong hardware demand and a higher mix of lower-margin, large deals. For the first quarter of fiscal year 2027, the percentage of gross profit from recurring revenue totaled 32.8%, compared to 31.7% for the prior-year period.
For the first quarter of fiscal year 2027, operating income decreased to $12.4 million from $25.9 million in the prior-year quarter. First quarter fiscal year 2027 non-GAAP operating income decreased to $23.0 million from $30.9 million in the prior- year quarter. Operating results include approximately $4.5 million of higher bad debt expense, primarily related to specific customer credit exposures in Brazil, which reduced diluted EPS by approximately $0.16.
On a GAAP basis, net income for the first quarter of fiscal year 2027 decreased to $8.7 million, or $0.42 per diluted share, from net income of $19.9 million, or $0.89 per diluted share, for the prior-year quarter. First quarter fiscal year 2027 non-GAAP net income decreased to $17.7 million, or $0.86 per diluted share, from $23.7 million, or $1.06 per diluted share, for the prior-year quarter. On a non-GAAP basis, adjusted EBITDA for the first quarter of fiscal year 2027 decreased to $31.3 million, or 3.25% of net sales, from $38.6 million, or 5.22% of net sales, for the prior-year quarter.
Balance Sheet and Cash Flow
As of September 30, 2026, ScanSource had cash and cash equivalents of $45.9 million and total debt of $332.4 million.
For the first quarter of fiscal year 2027, ScanSource used $42.3 million of operating cash flow and used $44.1 million of free cash flow (non-GAAP), primarily reflecting working capital investments to support strong growth. ScanSource also had share repurchases of $4.8 million for the first quarter of fiscal year 2027.
Acquisition of MicroAge
On September 1, 2026, ScanSource completed the acquisition of MicroAge, a leading IT solutions integrator, managed services provider (MSP), and digital transformation partner, helping businesses design, implement, secure, manage, and optimize their IT environments. The acquisition adds higher-margin technology solutions capabilities and expands ScanSource's reach in strategic growth technologies, including cloud, cybersecurity, data center and AI. MicroAge serves a diversified U.S. base of approximately 2,400 clients and has more than 200 employees. MicroAge is included in the Intelisys & Solution Services segment.
Annual Financial Outlook for Fiscal Year 2027
ScanSource raises its expectations for net sales and adjusted EBITDA for the full fiscal year ended June 30, 2027 to include the acquisition of MicroAge, which closed on September 1, 2026. This update replaces previously provided guidance.
| FY27 Annual Outlook | Prior FY27 Annual Outlook |
|---|
| Net sales | $3.8 billion to $4.0 billion | Growth, Y/Y: 6% to 10% |
| Adjusted EBITDA (non-GAAP) | $175 million to $185 million | $158 million to $165 million |
| Free cash flow (non-GAAP) | At least $85 million | At least $85 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 5, 2026, 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 FY27 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, 2026. 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.
About ScanSource, Inc.
ScanSource, Inc. (NASDAQ: SCSC) is a leading technology distributor uniquely positioned to address complex technologies and to accelerate growth for channel sales partners across hardware, software as a service (SaaS), connectivity, cloud, and services. ScanSource enables channel sales partners to deliver innovative 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 Best Places to Work in South Carolina and on the Fortune World’s Most Admired Companies list. ScanSource ranks #923 on the Fortune 1000. For more information, visit www.scansource.com.
SCANSOURCE REPORTS FIRST QUARTER RESULTS
| September 30, 2026 | June 30, 2026 * |
|---|
| ScanSource, Inc. and Subsidiaries |
| Condensed Consolidated Balance Sheets (Unaudited) |
| (in thousands, except share data) |
| Assets | | |
| Current assets: | | |
| Cash and cash equivalents | $45,866 | $88,374 |
| Accounts receivable, less allowance of $33,401 at September 30, 2026and $26,568 at June 30, 2026 | 815,297 | 769,750 |
| Inventories | 547,834 | 522,350 |
| Prepaid income tax expense | 9,745 | 10,704 |
| Prepaid expenses and other current assets | 125,419 | 116,816 |
| Total current assets | 1,544,161 | 1,507,994 |
| Property and equipment, net | 34,959 | 34,856 |
| Goodwill | 343,884 | 244,902 |
| Identifiable intangible assets, net | 237,029 | 64,391 |
| Deferred income taxes | 3,220 | 10,590 |
| Other non-current assets | 69,822 | 69,696 |
| Total assets | $2,233,075 | $1,932,429 |
| Liabilities and Shareholders’ Equity | | |
| Current liabilities: | | |
| Accounts payable | $774,677 | $753,275 |
| Accrued expenses and other current liabilities | 91,250 | 86,538 |
| Current portion of contingent consideration | 13,769 | 15,988 |
| Income taxes payable | 480 | 474 |
| Current portion of long-term debt | 2,871 | 2,866 |
| Total current liabilities | 883,047 | 859,141 |
| Deferred income taxes | 39,164 | - |
| Long-term debt, net of current portion | 97,551 | 98,547 |
| Borrowings under revolving credit facility | 231,948 | - |
| Long-term portion of contingent consideration | 10,451 | 12,162 |
| Other long-term liabilities | 55,259 | 51,787 |
| Total liabilities | 1,317,420 | 1,021,637 |
| 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, 20,357,128 and 20,161,911 shares issued and outstanding at September 30, 2026 and June 30, 2026, respectively | - | - |
| Retained earnings | 1,022,966 | 1,018,144 |
| Accumulated other comprehensive loss | (107,311) | (107,352) |
| Total shareholders’ equity | 915,655 | 910,792 |
| Total liabilities and shareholders’ equity | $2,233,075 | $1,932,429 |
| *Derived from audited financial statements. | | |
SCANSOURCE REPORTS FIRST QUARTER RESULTS
| Quarter ended September 30, |
|---|
| 2026 | 2025 |
|---|
| ScanSource, Inc. and Subsidiaries |
| Condensed Consolidated Income Statements (Unaudited) |
| (in thousands, except per share data) |
| Net sales | $962,294 | | $739,650 | |
| Cost of goods sold | 845,350 | | 632,177 | |
| Gross profit | 116,944 | | 107,473 | |
| Selling, general and administrative expenses | 96,509 | | 75,275 | |
| Depreciation expense | 1,874 | | 1,577 | |
| Intangible amortization expense | 4,662 | | 4,404 | |
| Restructuring and other charges | 1,653 | | - | |
| Change in fair value of contingent consideration | (147) | | 314 | |
| Operating income | 12,393 | | 25,903 | |
| Interest expense | 3,091 | | 1,914 | |
| Interest income | (2,664) | | (3,180) | |
| Other expense (income), net | 47 | | 173 | |
| Income before income taxes | 11,919 | | 26,996 | |
| Provision for income taxes | 3,228 | | 7,118 | |
| Net income | $8,691 | | $19,878 | |
| Per share data: | | |
| Net income per common share, basic | $0.43 | | $0.90 | |
| Weighted-average shares outstanding, basic | 20,215 | | 22,018 | |
| Net income per common share, diluted | $0.42 | | $0.89 | |
| Weighted-average shares outstanding, diluted | 20,685 | | 22,405 | |
| *Derived from audited financial statements. | | |
SCANSOURCE REPORTS FIRST QUARTER RESULTS
| Quarter Ended September 30, |
|---|
| 2026 | 2025 |
|---|
| ScanSource, Inc. and Subsidiaries |
| Condensed Consolidated Statements of Cash Flows (Unaudited) |
| (in thousands) |
| Cash flows from operating activities: | | |
| Net income | $8,691 | | $19,878 | |
| Adjustments to reconcile net income to net cash provided by operating activities: | | |
| Depreciation and amortization | 6,734 | | 6,200 | |
| Amortization of debt issue costs | 90 | | 96 | |
| Provision for doubtful accounts | 6,395 | | 1,928 | |
| Share-based compensation | 3,659 | | 2,876 | |
| Deferred income taxes | (2,627) | | 2,079 | |
| Change in fair value of contingent consideration | (147) | | 314 | |
| Finance lease interest | 5 | | 15 | |
| Changes in operating assets and liabilities, net of acquisitions: | | |
| Accounts receivable | (8,006) | | 79,010 | |
| Inventories | (25,614) | | (20,574) | |
| Prepaid expenses and other assets | (5,788) | | 5,262 | |
| Other non-current assets | 7,576 | | 552 | |
| Accounts payable | (17,732) | | (70,297) | |
| Accrued expenses and other liabilities | (15,548) | | (3,758) | |
| Income taxes payable | 8 | | (370) | |
| Net cash (used in) provided by operating activities | (42,304) | | 23,211 | |
| Cash flows from investing activities: | | |
| Capital expenditures | (1,842) | | (2,395) | |
| Cash paid for business acquisitions, net of cash acquired | (217,772) | | - | |
| Net cash used in investing activities | (219,614) | | (2,395) | |
| Cash flows from financing activities: | | |
| Borrowings on revolving credit | 749,488 | | 49,210 | |
| Repayments on revolving credit | (517,540) | | (49,210) | |
| Repayments on long-term debt | (991) | | (2,236) | |
| Repayments on finance lease obligation | (216) | | (271) | |
| Contingent consideration payments | (3,783) | | (1,375) | |
| Exercise of stock options | 3,061 | | 4,834 | |
| Taxes paid on settlement of equity awards | (5,768) | | (2,617) | |
| Common stock repurchased | (4,795) | | (21,285) | |
| Net cash provided by (used in) financing activities | 219,456 | | (22,950) | |
| Effect of exchange rate changes on cash and cash equivalents | (46) | | 901 | |
| Decrease in cash and cash equivalents | (42,508) | | (1,233) | |
| Cash and cash equivalents at beginning of period | 88,374 | | 126,157 | |
| Cash and cash equivalents at period end | $45,866 | | $124,924 | |
| *Derived from audited financial statements. | | |
SCANSOURCE REPORTS FIRST QUARTER RESULTS
| Quarter ended September 30, |
|---|
| 2026 | 2025 |
|---|
| ScanSource, Inc. and Subsidiaries |
| Supplementary Information (Unaudited) |
| (in thousands, except percentages) |
| Non-GAAP Financial Information: |
| Reconciliation of Net Income to Adjusted EBITDA: | | |
| Net income (GAAP) | | $8,691 | | $19,878 |
| Plus: Interest expense | | 3,091 | | 1,914 |
| Plus: Income taxes | | 3,228 | | 7,118 |
| Plus: Depreciation and amortization | | 6,734 | | 6,200 |
| EBITDA (non-GAAP) | | 21,744 | | 35,110 |
| Plus: Change in fair value of contingent consideration | | (147) | | 314 |
| Plus: Share-based compensation | | 3,659 | | 2,876 |
| Plus: Acquisition costs | | 4,389 | | 261 |
| Plus: Cyberattack restoration costs | | - | | 29 |
| Plus: Restructuring costs | | 1,653 | | - |
| Adjusted EBITDA (numerator for Adjusted ROIC) (non-GAAP) | | $31,298 | | $38,590 |
| Invested Capital Calculations: | | |
| Equity - beginning of the period | | $910,792 | | $906,409 |
| Equity - end of the period | | 915,655 | | 914,032 |
| Plus: Change in fair value of contingent consideration, net | | (110) | | 236 |
| Plus: Share-based compensation, net | | 2,739 | | 2,152 |
| Plus: Acquisition costs | | 4,389 | | 261 |
| Plus: Cyberattack restoration costs, net | | - | | 21 |
| Plus: Restructuring costs, net | | 1,241 | | - |
| Average equity | | 917,353 | | 911,556 |
| Average funded debt | | 242,334 | | 137,113 |
| Invested capital (denominator for Adjusted ROIC) (non-GAAP) | | $1,159,687 | | $1,048,669 |
| Adjusted return on invested capital ratio (Adjusted ROIC), annualized | 10.7% | | 14.6% | |
| (a) Acquisition costs are generally non-deductible for tax purposes. | | |
| (b) Average funded debt is calculated as the average daily amounts outstanding on short-term and long-term interest-bearing debt. |
| (c) 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 each in the current quarter and prior-year quarter. |
SCANSOURCE REPORTS FIRST QUARTER RESULTS
| Quarter ended September 30, | |
|---|
| 2026 | 2025 | % Change |
|---|
| ScanSource, Inc. and Subsidiaries |
| Supplementary Information (Unaudited) |
| Net Sales by Segment: | | |
| Specialty Technology Solutions: | (in thousands) | |
| Net sales, reported | $917,299 | | $715,447 | | 28.2% |
| Foreign exchange impact | (2,650) | | - | | |
| Less: Acquisitions | (2,119) | | - | | |
| Non-GAAP net sales | $912,530 | | $715,447 | | 27.5% |
| Intelisys & Solution Services: | | | |
| Net sales, reported | $44,995 | | $24,203 | | 85.9% |
| Less: Acquisitions | (20,006) | | - | | |
| Non-GAAP net sales | $24,989 | | $24,203 | | 3.2% |
| Consolidated: | | | |
| Net sales, reported | $962,294 | | $739,650 | | 30.1% |
| Foreign exchange impact | (2,650) | | - | | |
| Less: Acquisitions | (22,125) | | - | | |
| Non-GAAP net sales | $937,519 | | $739,650 | | 26.8% |
| 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, 2026 into U.S. dollars using the average foreign exchange rates for the quarter ended September 30, 2025. |
| Quarter ended September 30, | |
|---|
| 2026 | 2025 | % Change |
|---|
| (in thousands) | |
|---|
| Net Sales by Revenue Type: | | | |
| Net sales by category: | | | |
| Products and services | $919,854 | | $702,984 | | 30.8% |
| Recurring revenue | 42,440 | | 36,666 | | 15.7% |
| $962,294 | | $739,650 | | 30.1% |
| Recurring revenue represents primarily agency commissions, managed connectivity, SaaS, subscriptions, managed services, and hardware rentals. |
SCANSOURCE REPORTS FIRST QUARTER RESULTS
| Quarter ended September 30, | |
|---|
| 2026 | 2025 | % Change |
|---|
| ScanSource, Inc. and Subsidiaries |
| Supplementary Information (Unaudited) |
| Net Sales by Geography: | | |
| United States & Canada: | (in thousands) | |
| Net sales, reported | $913,975 | | $682,217 | | 34.0% |
| Less: Acquisitions | (22,125) | | - | | |
| Non-GAAP net sales | $891,850 | | $682,217 | | 30.7% |
| Brazil: | | | |
| Net sales, reported | $48,319 | | $57,433 | | (15.9)% |
| Foreign exchange impact | (2,650) | | - | | |
| Non-GAAP net sales | $45,669 | | $57,433 | | (20.5)% |
| Consolidated: | | | |
| Net sales, reported | $962,294 | | $739,650 | | 30.1% |
| Foreign exchange impact | (2,650) | | - | | |
| Less: Acquisitions | (22,125) | | - | | |
| Non-GAAP net sales | $937,519 | | $739,650 | | 26.8% |
| Net sales in Canada are supported by U.S. operations and represent less than 5% of United States net sales for the quarters ended September 30, 2026 and 2025. |
| Includes net sales from outside of the United States, Canada and Brazil, which represent less than 0.1% of Brazil net sales for the quarters ended September 30, 2026 and 2025. |
| 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, 2026 into U.S. dollars using the average foreign exchange rates for the quarter ended September 30, 2025. |
| Quarter ended September 30, |
|---|
| 2026 | 2025 |
|---|
| Free Cash Flow: | |
| GAAP operating cash flow | $(42,304) | | $23,211 | |
| Less: Capital expenditures | (1,842) | | (2,395) | |
| Free cash flow (non-GAAP) | $(44,146) | | $20,816 | |
SCANSOURCE REPORTS FIRST QUARTER RESULTS
| Quarter ended September 30, 2026 | |
|---|
| GAAP Measure | Intangible amortization expense | Change in fair value of contingent consideration | Acquisition costs | Restructuring costs | Cyberattack restoration costs | Non-GAAP measure |
|---|
| (in thousands, except per share data) | |
|---|
| ScanSource, Inc. and Subsidiaries | |
| Supplementary Information (Unaudited) | |
| (in thousands, except per share data) | |
| Reconciliation of Other Non-GAAP Financial Information: | |
| SG&A expenses | $96,509 | $ - | $ - | $(4,389) | $ - | $ - | $92,120 |
| Operating income | 12,393 | 4,662 | (147) | 4,389 | 1,653 | - | 22,950 |
| Pre-tax income | 11,919 | 4,662 | (147) | 4,389 | 1,653 | - | 22,476 |
| Net income | 8,691 | 3,499 | (110) | 4,389 | 1,241 | - | 17,710 |
| Diluted EPS | $0.42 | $0.17 | $(0.01) | $0.21 | $0.06 | $ - | $0.86 |
| Quarter ended September 30, 2025 | |
| GAAP Measure | Intangible amortization expense | Change in fair value of contingent consideration | Acquisition costs | Restructuring costs | Cyberattack restoration costs | Non-GAAP measure |
| (in thousands, except per share data) | |
| SG&A expense | $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 |
Acquisition costs are generally nondeductible for tax purposes.
Contacts
Steve Jones · Senior EVP, Chief Financial Officer · ScanSource, Inc. · (864) 286-4302
Mary M. Gentry · SVP, Finance and Treasurer · ScanSource, Inc. · (864) 286-4892