AI Earnings Predictions for ScanSource Inc. (SCSC)

EX-99.1

2 scscexhibit9919302026.htm

EX-99.1

Document

Exhibit 99.1

FOR IMMEDIATE RELEASE

Contact:

Steve JonesMary M. Gentry

Senior EVP, Chief Financial OfficerSVP, Finance and Treasurer

ScanSource, Inc.ScanSource, Inc.

(864) 286-4302(864) 286-4892

SCANSOURCE 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 FY27Q1 FY26Change

(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-

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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

EX-99.1

3 scscexhibit9916302026.htm

EX-99.1

Document

Exhibit 99.1

FOR IMMEDIATE RELEASE

Contact:

Steve JonesMary M. Gentry

Senior EVP, Chief Financial OfficerSVP, Finance and Treasurer

ScanSource, Inc.ScanSource, Inc.

(864) 286-4302(864) 286-4892

SCANSOURCE DELIVERS STRONG FOURTH QUARTER AND FULL-YEAR RESULTS

Hardware Demand Drove 17% Net Sales Growth for Q4

Announces Agreement to Acquire MicroAge, a Leading IT Solutions Integrator

GREENVILLE, SC -- August 20, 2026 -- ScanSource, Inc. (NASDAQ: SCSC), a leading technology distributor uniquely positioned to address complex technologies, today announced financial results for the fourth quarter and fiscal year ended June 30, 2026.

Fourth Quarter SummaryFiscal Year Summary

Q4 FY26Q4 FY25ChangeFY26FY25Change

(in thousands, except percentages and per share data)

Select reported measures:

Net sales$953,109 $812,886 17.3%$3,226,062 $3,040,810 6.1%

Gross profit$119,849 $105,102 14.0%$437,355 $408,646 7.0%

Gross profit margin %12.6 %12.9 %-35bp13.6 %13.4 %20bp

Operating income$31,737 $26,787 18.5%$98,627 $85,200 15.8%

GAAP net income$25,618 $20,089 27.5%$78,873 $71,548 10.2%

GAAP diluted EPS$1.24 $0.88 40.9%$3.64 $3.00 21.3%

Select Non-GAAP measures*:

Adjusted EBITDA$46,148 $38,639 19.4%$151,548 $144,660 4.8%

Adjusted EBITDA margin %4.84 %4.75 %9bp4.70 %4.76 %-6bp

Non-GAAP net income$30,280 $23,322 29.8%$91,945 $85,144 8.0%

Non-GAAP diluted EPS$1.46 $1.02 43.1%$4.24 $3.57 18.8%

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.

“I’m proud of our team’s excellent fourth quarter performance, with 17% sales growth and even stronger EPS growth,” said Mike Baur, Chair and CEO, ScanSource, Inc. “We're also excited about our agreement to acquire MicroAge, which we believe will accelerate growth, expand margins, and adds new services capabilities.”

Quarterly Results

Net sales for the fourth quarter of fiscal year 2026 totaled $953.1 million, an increase of 17.3% year-over-year, or an increase of 16.2% on a non-GAAP basis. Net sales for products and services increased 17.4% year-over-year, and recurring revenue increased 13.5% year-over-year including acquisitions. For Specialty Technology Solutions, fourth quarter net sales of $927.2 million increased 17.6% year-over-year, driven by broad-based growth in North America. Intelisys & Advisory net sales for the fourth quarter increased 7.2% year-over-year to $25.9 million primarily from higher Resourcive sales.

Gross profit for the fourth quarter of fiscal year 2026 increased 14.0% year-over-year to $119.8 million, with a gross profit margin of 12.6% versus 12.9% in the prior-year quarter. For the fourth quarter of fiscal year 2026, the percentage of gross profit from recurring revenue totaled 31.5% comparable to 31.6% for the prior-year period.

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For the fourth quarter of fiscal year 2026, operating income increased to $31.7 million from $26.8 million in the prior-year quarter. Fourth quarter fiscal year 2026 non-GAAP operating income increased to $37.9 million from $31.3 million in the prior-year quarter.

On a GAAP basis, net income for the fourth quarter of fiscal year 2026 increased to $25.6 million, or $1.24 per diluted share, from net income of $20.1 million, or $0.88 per diluted share, for the prior-year quarter. Fourth quarter fiscal year 2026 non-GAAP net income increased to $30.3 million, or $1.46 per diluted share, from $23.3 million, or $1.02 per diluted share, for the prior-year quarter. On a non-GAAP basis, adjusted EBITDA for the fourth quarter of fiscal year 2026 increased to $46.1 million, or 4.84% of net sales, from $38.6 million, or 4.75% of net sales, for the prior-year quarter.

Full-Year Results

For fiscal year 2026, net sales increased 6.1% to $3.23 billion. Net sales for products and services increased 5.9% year-over-year, while recurring revenue increased 10.6% year-over-year including acquisitions. For Specialty Technology Solutions, fiscal year net sales of $3.12 billion increased 6.2% year-over-year, primarily due to growth across most technologies in North America. Intelisys & Advisory net sales for the fiscal year 2026 increased 3.1% year-over-year to $101.1 million reflecting higher Intelisys sales and full-year results for the Resourcive acquisition.

Gross profit for fiscal year 2026 increased 7.0% year-over-year to $437.4 million with a gross profit margin of 13.6%, up from 13.4% in the prior year. The higher gross profit margin reflects a higher contribution of recurring revenue, which is netted-down revenue, in our overall revenue mix and higher vendor program recognition. For fiscal year 2026, the percentage of gross profit from recurring revenue increased to 33.7% from 32.8% for the prior year.

For the fiscal year

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