Did ScanSource beat or miss consensus estimates last quarter?

What is ScanSource's latest dividend and current dividend yield?

What factors drove the changes in ScanSource's revenue and profit?

What guidance did ScanSource's management provide for the next earnings period?

What is the revenue and EPS growth rate for ScanSource year over year?

What does ScanSource do and what are its main business segments?

What were the key takeaways from ScanSource’s earnings call?

What is the market's earnings forecast for ScanSource next quarter?

- **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.


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