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ScanSource, Inc.

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ScanSource, Inc. • NASDAQ
$41.12 ▼ -0.51% (-0.21)
Market Cap $902.28 M
52w High $53.90
52w Low $28.75
Dividend Yield 0%
P/E 12.85
Volume 73.95K
Outstanding Shares 21.94M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q1-2026 $739.65M ▼ $81.57M ▲ $19.878M ▼ 2.687% ▲ $0.9 ▲ $35.11M ▼
Q4-2025 $812.886M ▲ $78.315M ▲ $20.09M ▲ 2.471% ▼ $0.86 ▲ $36.697M ▲
Q3-2025 $704.847M ▼ $77.863M ▼ $17.431M ▲ 2.473% ▲ $0.75 ▲ $33.554M ▲
Q2-2025 $747.497M ▼ $83.279M ▼ $17.053M ▲ 2.281% ▲ $0.72 ▲ $29.812M ▼
Q1-2025 $775.58M $83.989M $16.974M 2.189% $0.7 $32.542M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q1-2026 $124.924M ▼ $1.717B ▼ $802.944M ▼ $914.032M ▲
Q4-2025 $126.157M ▼ $1.786B ▲ $879.197M ▲ $906.409M ▲
Q3-2025 $146.287M ▲ $1.725B ▲ $823.462M ▲ $901.746M ▲
Q2-2025 $110.52M ▼ $1.703B ▼ $801.867M ▼ $900.662M ▼
Q1-2025 $145.044M $1.787B $865.616M $920.893M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q1-2026 $19.878M ▼ $23.211M ▲ $-2.395M ▲ $-22.95M ▲ $-1.233M ▲ $20.816M ▲
Q4-2025 $20.09M ▲ $7.645M ▼ $-2.517M ▼ $-27.481M ▲ $-20.13M ▼ $5.128M ▼
Q3-2025 $17.43M ▲ $66.062M ▲ $-1.421M ▼ $-31.063M ▼ $35.767M ▲ $64.641M ▲
Q2-2025 $17.054M ▲ $-6.188M ▼ $772K ▲ $-25.731M ▲ $-34.524M ▲ $-8.161M ▼
Q1-2025 $16.974M $44.83M $-59.224M $-26.63M $-40.416M $42.455M

Revenue by Products

Product Q2-2025Q3-2025Q4-2025Q1-2026
Products and Services
Products and Services
 $710.00M ▲$670.00M ▼$1.52Bn ▲$700.00M ▼
Recurring Revenue
Recurring Revenue
 $40.00M ▲$40.00M ▲$70.00M ▲$40.00M ▼

Five-Year Company Overview

Income Statement

Income Statement Revenue grew nicely through the earlier years of this period but has stepped down over the last two, suggesting a cooler demand environment or portfolio mix shift. Despite that, profitability has held up reasonably well: gross margins are slightly better than a few years ago, and operating profits remain solidly positive, though below their recent peak. Earnings per share are roughly double what they were at the start of the period, even if they have come off the highs, which points to a business that has improved its underlying efficiency but is now operating in a more modest growth phase.

Balance Sheet

Balance Sheet The balance sheet looks generally sound. The company has grown its equity base steadily, which gives it a thicker financial cushion. Total debt has been brought down meaningfully from prior highs, reducing financial risk, while cash levels are higher than they were a few years ago, even after easing back from a recent spike. Overall assets have shrunk slightly from their peak, implying some balance-sheet tightening, but the combination of lower debt and stronger equity support a conservative financial profile.

Cash Flow

Cash Flow Cash generation has been volatile. A couple of years ago, operations consumed cash, likely tied to working capital swings, but this flipped to very strong cash inflows more recently, before normalizing to a more modest positive level in the latest year. Free cash flow closely tracks operating cash flow because investment spending is relatively light, which suggests a capital-light model but also means that cash performance is heavily driven by how well inventory and receivables are managed in any given year.

Competitive Edge

Competitive Edge ScanSource operates in a crowded tech distribution space but competes by focusing on specialized areas like point-of-sale, payments, security, and communications, rather than trying to be a broad, one-stop distributor. Its strength lies in deep, long-standing relationships with value-added resellers and agents, backed by training, financing help, and tailored services. This creates switching costs for partners and makes ScanSource more of a strategic collaborator than a simple box mover, though it still faces pressure from much larger distributors and ongoing vendor consolidation.

Innovation and R&D

Innovation and R&D Instead of heavy traditional R&D, ScanSource invests in digital platforms, partner tools, and service capabilities. The CASCADE platform, subscription and analytics tools, and cloud-focused training programs are examples of software-like investments aimed at making partners more productive and sticky. The shift toward a “hybrid distribution” model—combining devices with software, cloud, and connectivity services—plus acquisitions in managed services and advisory work, shows a clear intent to move up the value chain and grow recurring, higher-margin revenue streams.

Summary

Overall, ScanSource looks like a mature distributor that has upgraded its profitability and balance sheet while navigating a tougher top-line environment. Revenue is no longer in a strong growth phase, but margins are healthier than several years ago and leverage is much lower, which reduces financial risk. Cash flow has improved but remains somewhat lumpy, reflecting the nature of distribution businesses. Strategically, the company is leaning into hybrid hardware–software solutions, cloud, and recurring services, and is using digital platforms and partner enablement as its main differentiators. The key watch points are whether it can reignite more durable growth, continue building recurring revenue, and integrate acquisitions smoothly while managing competitive pressure from larger, more generalized distributors.

NEWS

November 6, 2025 · 8:30 AM UTC

ScanSource Reports First Quarter Results

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October 21, 2025 · 8:30 AM UTC

ScanSource to Announce First Quarter Fiscal Year 2026 Results November 6, 2025

Read more