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- **New Sales Team Launch**: Unified communications team to drive UCaaS/CX growth, aligning hardware and cloud solutions.
- **Financial Guidance Update**: FY26 revenue $3.0-$3.1B, EBITDA $140-$150M, reflecting STS challenges and Intelisys investments.
- **Key Risks**: Period costs (60bp EBITDA impact), large deal timing delays, Brazil market weakness.
- **Positive Trends**: Intelisys new orders +30% YoY, recurring revenue mix expanding, free cash flow resilience.
- **Strategic Focus**: Recurring revenue growth, margin improvement, disciplined capital deployment.

**【CEO Summary Section】**
- Q2 net sales grew 3% YoY across both segments, but profitability was impacted by unexpected expenses in the Specialty Technology Solutions (STS) segment.
- Launched a new converged communication sales team to unify hardware and Intelisys cloud-based solutions, aiming to capture growth in UCaaS and CX platforms.
- Intelisys & Advisory segment saw new order growth outpacing billings, driven by investments in sales teams and recurring revenue streams.
- Emphasized strategic focus on profitable growth, free cash flow, and 3-year goals of expanding recurring revenue contributions and profitability.

**【CFO Financial Commentary】**
- Q2 GAAP net sales: $765 million (3% YoY growth); adjusted EBITDA: $34 million (down 22% YoY due to STS margin pressure).
- STS segment: 3% YoY net sales growth, 1% gross profit growth; 30bp margin impact from freight, mix, and bad debt.
- Intelisys & Advisory: 3% YoY net sales growth, 3% gross profit growth; adjusted EBITDA margin: 41%.
- Full-year guidance updated to $3.0-$3.1 billion revenue and $140-$150 million adjusted EBITDA, reflecting slower STS growth and higher Intelisys investments.
- Free cash flow maintained at $80 million+ target, supported by strong balance sheet ($83M cash, 0x net debt).

**【Q&A Highlights】**
- **Period Costs**: One-time freight, mix, and bad debt expenses (60bp EBITDA impact) expected to normalize in H2.
- **STS Slowdown**: Large deal timing delays (e.g., broken into smaller invoices) caused Q2 underperformance; H2 recovery expected.
- **Memory Shortages**: Suppliers facing pricing/availability challenges, but no near-term impact on guidance.
- **Intelisys Growth**: New order growth (faster than billings) driven by restructured sales teams; 2026 billings to reflect 2025 investments.
- **Brazil Decline**: 9% YoY organic drop due to market conditions; high-margin segment contributing to profitability pressure.
- **Capital Allocation**: $179M remaining under $200M share repurchase authorization; prioritizing 3-year strategic goals over M&A.


ScanSource, Inc. (SCSC) Q2 2026 Earnings Call Transcript

- **Strong Financial Performance**: Q1 FY26 saw 26% YoY growth in non-GAAP EPS and 6% YoY gross profit expansion, driven by supplier price actions and recurring revenue.
- **Strategic Acquisitions**: DataXoom acquisition enhances mobile connectivity capabilities, complementing the 5G and IoT solutions strategy.
- **Guidance Reaffirmation**: Despite Q1 net sales decline, FY26 outlook remains unchanged, reflecting confidence in delayed large deals and pipeline strength.
- **Focus on Gross Profit**: Management prioritizes profitable growth, with 13% of STS gross profits from recurring revenue and double-digit new order growth in Intelisys.
- **Market Positioning**: Emphasizes role as a converged solutions provider, supporting channel partners' transition to technology architects.

**【CEO Summary Section】**
- Emphasized the convergence of hardware, software, and services, positioning ScanSource as a provider of integrated solutions for channel partners.
- Intelisys & Advisory segment investments include new tools like Tech Checks (AI-powered sales support) and Smart Series solutions (e.g., Smart Warehouse, Smart Retail) leveraging 5G connectivity.
- Acquired DataXoom to expand mobile data connectivity capabilities, complementing the August 2024 Advantix acquisition and enabling coverage across all major U.S. carriers.
- Highlighted the transition of channel partners from VARs to technology architects, with ScanSource supporting this evolution through strategic investments.

**【CFO Financial Commentary】**
- Q1 FY26: Gross profits +6% YoY, non-GAAP EPS +26% YoY, 5.2% adjusted EBITDA margin, $88M cash conversion of net income.
- Specialty Technology Solutions (STS): Net sales -5% YoY due to large deal delays, but gross profits +7% YoY driven by supplier price actions and recurring revenue mix (13%).
- Intelisys & Advisory (IAS): Net sales +4% YoY, gross profits +2% YoY, with EBITDA margin decline due to SG&A investments for future growth.
- Strong balance sheet ($125M cash, 0x net debt leverage), $21M share repurchases, and reaffirmed FY26 outlook: $3.1-3.3B net sales, $150-160M EBITDA, $80M+ free cash flow.
- Active M&A pipeline targeting capability expansion, with DataXoom as a margin-accretive tuck-in acquisition.

**【Q&A Key Highlights】**
- **Revenue Decline**: Mike Baur emphasized focus on gross profit growth (+6% YoY) over net sales, attributing Q1 decline to delayed large deals rather than market share loss. Steve Jones noted 30 basis points of margin improvement from sustainable supplier rebates.
- **DataXoom Acquisition**: Adds 17 employees and higher-margin capabilities, aligning with mobile device connectivity strategy to drive recurring revenue.
- **Guidance Confidence**: Despite Q1 net sales -9% QoQ, reaffirmed FY26 outlook due to pipeline visibility and timing of large deals, not weakness in demand.
- **Intelisys Pipeline**: Double-digit new order growth YoY and QoQ, with 6-18 month lag to revenue realization.


ScanSource, Inc. (SCSC) Q1 2026 Earnings Call Transcript

- **Strategic Growth Engine**: 9% Q4 revenue growth driven by mobility tech and late-quarter deals; 3-year goals target 50% recurring revenue and >10% EBITDA margin.
- **New Initiatives**: Launch Point team secures $30M+ smart warehouse deals; Intelisys reorganizes to focus on growth partners with co-investment programs.
- **Financial Strength**: $104M free cash flow (122% of net income); 2026 outlook includes $150-160M EBITDA with H2 acceleration.
- **Market Expansion**: Brazil's recurring revenue model replicated in U.S.; Zebra/Elo deal seen as catalyst for retail tech innovation.

**【CEO Summary Section】**
- Emphasized convergence of IT, connectivity, and cloud computing as key growth drivers.
- Launched new 'Launch Point' team to partner with emerging tech companies, securing deals in smart warehouse solutions (e.g., private cellular networks, robotics).
- Highlighted a successful converged solution deal with a channel partner for a major auto retailer, combining hardware, software, and connectivity.
- Announced 3-year strategic goals focused on expanding recurring revenue, EBITDA margin, and ROIC.

**【CFO Financial Commentary】**
- Q4 2025: Net sales +9% YoY, Adjusted EBITDA +13%, Non-GAAP EPS $1.02 (+27.5% YoY).
- Specialty Tech Segment: 9% YoY growth driven by mobility, security, and large deals ($30-40M pull-ins).
- Intelisys Segment: 1% YoY growth despite investments in AI capabilities; annualized end-user billings $2.8B (+4.5% YoY).
- Full Year 2025: Net sales $3.0B (-6.7% YoY), Adjusted EBITDA $144.7M (+2.8%), Free Cash Flow $104M (122% of Net Income).
- Introduced 3-year goals: Adjusted EBITDA margin >10%, Recurring Revenue 50% of GP, ROIC >15%.

**【Q&A Key Highlights】**
- **Capital Allocation**: Prioritize M&A for recurring revenue growth, with share buybacks if no accretive deals; target net debt 1-2x EBITDA.
- **Intelisys Strategy**: Reorganize sales teams to focus on growth partners, launch 'Revenue Accelerator' program to co-invest with partners.
- **Brazil Outlook**: Local currency growth offset by FX headwinds; model seen as blueprint for U.S. recurring revenue strategy.
- **Zebra/Elo Acquisition**: Potential for new converged solutions; ScanSource benefits from multi-vendor ecosystems.
- **2026 Guidance**: Net Sales $3.1-3.3B, Adjusted EBITDA $150-160M; expect low single-digit growth H1, accelerating H2 with investments in Intelisys and emerging tech.

ScanSource, Inc. (SCSC) Q4 2025 Earnings Conference Call Transcript

- **Q3 Growth Drivers**: All segments delivered YoY gross profit growth, with North America up across key tech categories. 
- **Strategic Wins**: 
  - ISG's new business dev team to accelerate emerging tech growth. 
  - AI Master Class expanded Intelisys' supplier base by 9x. 
  - Acquisitions (Advantix, Resourcive) added $65M free cash flow. 
- **Q4 Outlook**: Sequential sales growth expected (vs. flat last year) driven by: 
  - Large deal pipeline (April bookings up). 
  - ISG program launches. 
  - Brazil recovery. 
- **Capital Allocation**: $200M buyback + strategic M&A (e.g., ISG partners) to drive 1-2x leverage. 
- **Financial Strength**: 13.6% ROIC (2-year high), $146M cash, no debt. 


**【CEO Opening Remarks】**
- **Q3 Performance Highlights**: All segments achieved year-over-year gross profit growth and higher EBITDA margins. North America saw growth in mobility, networking, and wireless connectivity. Large deals returned, with Q3 sales declining 6% QoQ (better than seasonal trend). 
- **Strategic Initiatives**: 
  - Expanded business presidents' roles to include strategy and acquisitions. 
  - Launched AI Master Class for channel partners, with 9 new suppliers added to Intelisys. 
  - Integrated Solutions Group (ISG) launched a new business development team to accelerate growth for emerging tech companies. 
- **Acquisition Momentum**: Recent acquisitions (Advantix, Resourcive) are accretive to EPS and ROIC. Q4 will see more details on innovative programs targeting channel-agnostic tech companies. 

**【CFO Financial Summary】**
- **Q3 Financials**: 
  - Net sales: $732M (-6% YoY) 
  - Gross profit: $104M (+6% YoY) 
  - Adjusted EBITDA: $36M (+6% YoY) 
  - Non-GAAP EPS: $1.08 (vs. $0.94 prior year) 
  - Free cash flow: $65M (year-to-date: $99M) 
- **Segment Breakdown**: 
  - Specialty Tech: 14% recurring revenue mix, 10.9% gross margin. 
  - Intelisys: 16% YoY sales growth, $2.86B annualized end-user billings. 
- **Balance Sheet Strength**: $146M cash, 0x net debt leverage, 13.6% ROIC (2-year high). 
- **FY25 Outlook**: $3B net sales, $140-145M EBITDA, $70M+ free cash flow. 

**【Q&A Key Takeaways】**
- **Q4 Growth Expectation**: Sequential improvement driven by: 
  - Return of large deals (April bookings up vs. Q3). 
  - ISG program launches. 
  - Brazil recovery. 
- **Capital Allocation**: 
  - $200M new share buyback authorization (total $242M available). 
  - Acquisitions (e.g., ISG partners) will be prioritized for margin accretion. 
  - Target leverage: 1-2x EBITDA. 
- **Acquisition Strategy**: Business presidents leading M&A in their segments. Recent wins (Advantix, Resourcive) validate model. 


ScanSource (SCSC)-8 May 25-2025 Q3 Earnings call transcript

- **Q2 Results**: 15.5% YoY sales decline but 13.6% gross margin driven by 32% recurring revenue mix
- **Strategic Wins**: Advantix solution growth, Channel Exchange SaaS platform launch, and 5% CX billings growth
- **Guidance Confidence**: Maintaining FY25 targets despite Q2 miss, citing recurring revenue resilience and channel optimism
- **Cash Management**: $34M YTD free cash flow with disciplined share buybacks


**【CEO Opening Remarks】**
- Q2 net sales declined 4% sequentially, missing expectations due to a 15.5% YoY decline in Specialty Technology Solutions segment. However, gross profit margin improved to 13.6% driven by recurring revenue mix (32% of gross profit). 
- Hybrid distribution strategy emphasizes flexibility across hardware, SaaS, connectivity, and cloud. Key investments include:
  - **Resourcive acquisition**: Expanding advisory services and next-gen tech offerings (CX, AI)
  - **Advantix solution**: High-margin managed connectivity product with 4% Q2 sequential growth
  - **Channel Exchange platform**: New SaaS tool for Intelisys partners

**【CFO Financial Highlights】**
- Q2 financials:
  - GAAP net income: $420M
  - Non-GAAP EPS: $1.08 (flat YoY)
  - Adjusted EBITDA: $140M (down 8% YoY)
  - Free cash flow: -$8M (Q2) / $34M (YTD)
- Segment performance:
  - **Specialty Tech Solutions**: 16% YoY sales decline, but 12% recurring revenue contribution to gross profit
  - **Intelisys & Advisory**: 4% YoY sales growth (including Resourcive), 99% gross margin
- Balance sheet remains strong with $111M cash and 0.2x net debt leverage

**【Q&A Key Takeaways】**
1. **Demand Environment**: 
   - Sequential weakness in Q2 driven by large deal underperformance (double-digit decline)
   - Management maintains FY25 guidance ($3.1-3.5B net sales, $140-160M EBITDA) despite Q2 miss
   - Cautious optimism for H2 recovery, citing channel partner sentiment and recurring revenue visibility

2. **Intelisys Strategy**:
   - New Channel Exchange platform to attract exclusive SaaS partners
   - Partner segmentation to optimize commission splits
   - 5% YoY end-user billings growth in CX solutions

3. **Acquisition Strategy**:
   - Focused on building channel model of future vs. rolling up EBITDA
   - Resourcive and Advantix integration driving recurring revenue opportunities

4. **Cash Flow Discipline**:
   - $24M Q2 share buybacks
   - Free cash flow target of $70M+ for FY25


Actual												0.37	0.19	0.42	0.65	0.71	0.96	0.99	1.02	1.04	0.91	1.07	1.06	0.96	0.76	0.74	0.85	0.69	0.8	0.84	0.85	0.86	1.02	1.06	0.8
Forecast												0.42	0.2133	0.3467	0.5267	0.4833	0.5733	0.72	0.84	0.67	0.97	1.0467	1.0367	0.9	0.75	0.9033	0.97	0.8367	0.9333	0.78	0.9067	0.775	0.9233	0.93	1.01
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	-11.90%	-10.92%	+21.14%	+23.41%	+46.91%	+67.45%	+37.50%	+21.43%	+55.22%	-6.19%	+2.23%	+2.25%	+6.67%	+1.33%	-18.08%	-12.37%	-17.53%	-14.28%	+7.69%	-6.25%	+10.97%	+10.47%	+13.98%	-20.79%

SCSC

SCSC fundamentals

SCSC Q2 2026 Earnings

Earnings Call

You can ask Aime

SCSC

SCSC fundamentals

SCSC Q2 2026 Earnings

Earnings Call

SCSC Earnings Call Summary for Q2/202610:30 AM on Feb 5, 2026

SCSC Earnings Call Summary for Q1/202610:30 AM on Nov 6, 2025

SCSC Earnings Call Summary for Q4/202510:30 AM on Aug 21, 2025

SCSC Earnings Call Summary for Q3/202510:30 AM on May 8, 2025

SCSC Earnings Call Summary for Q2/202510:30 AM on Jan 30, 2025

You can ask Aime