ScanSource Reports Q4 2025 Earnings: Net Sales Up 9%, Adjusted EBITDA Up 13%, Non-GAAP EPS Rises 27.5%

ScanSource reported Q4 2025 results with a 9% YoY increase in net sales, 13% YoY growth in adjusted EBITDA, and 27.5% YoY rise in non-GAAP EPS to $1.02. The company introduced new three-year strategic goals, including increasing recurring gross profit, pursuing strategic acquisitions, and maintaining disciplined capital allocation. ScanSource guided for FY26 net sales of $3.1-$3.13 billion and adjusted EBITDA of $150-$160 million. The company's recurring revenue mix boosted its margin, and it invested in Intellisys and growth platforms.

ScanSource Inc. (SCSC), a technology distributor with a market capitalization of $921 million, reported a robust fourth quarter performance for 2025, exceeding market expectations. The company's earnings per share (EPS) of $1.02 surpassed the forecast of $0.93, resulting in a positive surprise of 9.68% [1]. Revenue also exceeded expectations, reaching $812.88 million compared to the anticipated $776.21 million, a 4.72% increase.

Key financial highlights for the quarter include:
- Revenue: $812.88 million, up 4.72% from forecasts.
- Earnings per share: $1.02, up 27.5% year-over-year.
- Gross profit: $408.6 million, a 2.8% increase.
- Adjusted EBITDA: $144.7 million, a 13% growth.

The company's strategic focus on converged solutions and new product launches appears to be paying off. Despite a 6.7% decline in full-year net sales, the company achieved a 9% increase in Q4 net sales compared to the previous year [1].

In response to the earnings announcement, ScanSource's stock saw a 4.07% increase in pre-market trading, reaching $44.26. This positive movement reflects investor confidence in the company's ability to surpass earnings expectations and its strategic direction [1].

Looking ahead, ScanSource has set ambitious targets for fiscal year 2026, with net sales guidance ranging from $3.1 to $3.3 billion and adjusted EBITDA projected between $150 and $160 million. The company aims to increase recurring revenue to 50% of gross profits and improve return on invested capital, which currently stands at 6% [1].

During the earnings call, CEO Mike Bauer emphasized the company's strategic position in a connected cloud-driven world, while CFO Steve Jones highlighted the company’s financial strategy and the importance of building a cash culture [1].

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-scansource-q4-2025-beats-earnings-expectations-93CH-4205102