Hardware Demand Drove 17% Net Sales Growth for Q4

Announces Agreement to Acquire MicroAge, a Leading IT Solutions Integrator

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 Summary								Fiscal Year Summary
	Q4 FY26			Q4 FY25			Change		FY26			FY25			Change
	*(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	%	-35bp			13.6	%		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	%	9bp			4.70	%		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.

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 ended June 30, 2026, operating income increased to $98.6 million from $85.2 million in the prior year. Fiscal year 2026 non-GAAP operating income increased to $119.7 million from $111.3 million in the prior year.

On a GAAP basis, net income for the fiscal year 2026 increased to $78.9 million, or $3.64 per diluted share, compared to net income of $71.5 million, or $3.00 per diluted share, for the prior year. Fiscal year 2026 non-GAAP net income increased to $91.9 million, or $4.24 per diluted share, from $85.1 million, or $3.57 per diluted share, for the prior year. On a non-GAAP basis, adjusted EBITDA for the fiscal year 2026 increased 4.8% to $151.5 million, or 4.70% of net sales, from $144.7 million, or 4.76% of net sales, for the prior year.

Balance Sheet and Cash Flow

As of June 30, 2026, ScanSource had cash and cash equivalents of $88.4 million and total debt of $101.4 million.

For fiscal year 2026, ScanSource generated $123.1 million of operating cash flow and $113.8 million of free cash flow (non-GAAP). ScanSource also had share repurchases of $97.9 million for fiscal year 2026.

Agreement to Acquire MicroAge

In a separate press release issued today, ScanSource announced an agreement to acquire 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 is expected to add higher-margin technology solutions capabilities and expand ScanSource’s reach in strategic growth technologies, including cloud, cybersecurity, data center and AI. MicroAge serves a diversified U.S. client base of approximately 2,400 clients and has more than 200 employees. Under the agreement, ScanSource will acquire MicroAge in an all-cash transaction for a purchase price of $220.5 million, payable at closing. The transaction is expected to close in the quarter ending September 30, 2026, subject to regulatory approval and other customary closing conditions.

Annual Financial Outlook for Fiscal Year 2027

The following guidance is based on ScanSource’s current expectations for the full fiscal year ended June 30, 2027. Fiscal year 2027 guidance excludes the pending acquisition of MicroAge and related purchase accounting impacts.

		FY27 Annual Outlook
Net sales growth, Y/Y		6% to 10%
Adjusted EBITDA (non-GAAP)		$158 million to $165 million
Free cash flow (non-GAAP)		At least $85 million

Adjusted EBITDA is a non-GAAP measure, which excludes estimates for amortization of intangible assets, depreciation expense, and non-cash shared-based compensation expense. Free cash flow is a non-GAAP measure, which excludes the effect of estimated capital expenditures from estimated operating cash flow. These measures are forward-looking, and actual results may differ materially.

ScanSource believes that a quantitative reconciliation of such forward-looking information to the most directly comparable GAAP financial measures cannot be made without unreasonable efforts, because a reconciliation of these non-GAAP financial measures would require an estimate of future non-operating items such as acquisitions and divestitures, restructuring costs, impairment charges and other unusual or non-recurring items. Neither the timing nor likelihood of these events, nor their probable significance, can be quantified with a reasonable degree of accuracy. Accordingly, a reconciliation of such forward-looking information to the most directly comparable GAAP financial measures is not provided.

Webcast Details and Earnings Infographic

At approximately 8:45 a.m. ET today, an Earnings Infographic, as a supplement to this press release and the earnings conference call, will be available on ScanSource's website, www.scansource.com (Investor Relations section). ScanSource will present additional information about its financial results and business in a conference call today, August 20, 2026, at 10:30 a.m. ET. A webcast of the call will be available for all interested parties and can be accessed at www.scansource.com (Investor Relations section). The webcast will be available for replay for 60 days.

Safe Harbor Statement

This press release contains "forward-looking" statements, including ScanSource's FY27 annual outlook, which involve risks and uncertainties, many of which are beyond ScanSource's control. No undue reliance should be placed on such statements, as any number of factors could cause actual results to differ materially from anticipated or forecasted results, including, but not limited to, the following factors, which are neither presented in order of importance nor weighted: macroeconomic conditions, including potential prolonged economic weakness, inflation, tariffs and changes in trade policy, the failure to manage and implement ScanSource's growth strategy, the ability for ScanSource to realize the synergies or other benefits from acquisitions, credit risks involving ScanSource's larger channel sales partners and suppliers, changes in interest and exchange rates and regulatory regimes impacting ScanSource's international operations, including new or increased tariffs, risk to the business from a cyberattack, a failure of IT systems, failure to hire and retain quality employees, loss of ScanSource's major channel sales partners, relationships with key suppliers and channel sales partners or a termination or a modification of the terms under which it operates with these key suppliers and channel sales partners, changes in ScanSource's operating strategy, and other factors set forth in the "Risk Factors" contained in ScanSource's annual report on Form 10-K for the year ended June 30, 2026. Except as may be required by law, ScanSource expressly disclaims any obligation to update these forward-looking statements to reflect events or circumstances after the date of this press release or otherwise.

Non-GAAP Financial Information

In addition to disclosing results that are determined in accordance with United States Generally Accepted Accounting Principles ("GAAP"), ScanSource also discloses certain non-GAAP financial measures, which are summarized below. Non-GAAP financial measures are used to understand and evaluate performance, including comparisons from period to period. Non-GAAP results exclude items such as amortization of intangible assets related to acquisitions, acquisition and divestiture costs, gain/loss on sale of business, and restructuring costs and include other non-GAAP adjustments.

Net sales on a constant currency basis excluding acquisitions and divestitures to calculate organic growth ("non-GAAP net sales"): ScanSource discloses the percentage change in net sales excluding the translation impact from changes in foreign currency exchange rates between reporting periods and excluding the net sales from acquisitions and divestitures prior to the first full year from the transaction date. This measure enhances the comparability between periods to help analyze underlying trends on an organic basis.

Adjusted earnings before interest expense, income taxes, depreciation, and amortization ("Adjusted EBITDA"): Adjusted EBITDA starts with net income and adds back interest expense, income tax expense, depreciation expense, amortization of intangible assets, change in fair value of contingent consideration, and other non-GAAP adjustments, including acquisition and divestiture costs, restructuring costs, cyberattack restoration costs, tax recovery, and non-cash share-based compensation expense. Since Adjusted EBITDA excludes some non-cash costs of investing in ScanSource’s business and people, management believes that Adjusted EBITDA shows the profitability from the business operations more clearly. The Adjusted EBITDA margin is calculated as Adjusted EBITDA as a percentage of net sales.

Adjusted return on invested capital ("Adjusted ROIC"): Adjusted ROIC assists management in comparing ScanSource's performance over various reporting periods on a consistent basis because it removes from operating results the impact of items that do not reflect core operating performance. Management believes the calculation of Adjusted ROIC provides useful information to investors and is an additional relevant comparison of its performance. Adjusted ROIC is calculated as Adjusted EBITDA over invested capital. Invested capital is defined as average equity plus average daily funded interest-bearing debt for the period. Management believes the calculation of Adjusted ROIC provides useful information to investors and is an additional relevant comparison of ScanSource's performance during the year.

Free cash flow: ScanSource presents free cash flow as it is a measure used by management to measure our business. ScanSource believes this measure provides more information regarding liquidity and capital resources. Free cash flow is defined as net cash provided by operating activities less capital expenditures.

Net debt: Net debt includes total balance sheet debt less cash and cash equivalents. ScanSource believes this measure is useful in assessing its borrowing capacity.

Additional Non-GAAP Metrics: To evaluate current period performance on a more consistent basis with prior periods, ScanSource discloses non-GAAP SG&A expenses, non-GAAP operating income, non-GAAP pre-tax income, non-GAAP net income, and non-GAAP diluted earnings per share (non-GAAP diluted EPS). These non-GAAP results exclude amortization of intangible assets related to acquisitions, change in fair value of contingent consideration, acquisition and divestiture costs, restructuring costs, and other non-GAAP adjustments. These metrics include the translation impact of changes in foreign currency exchange rates. Non-GAAP metrics are useful in assessing and understanding ScanSource's performance especially when comparing results with previous periods or forecasting performance for future periods.

These non-GAAP financial measures have limitations as analytical tools, and the non-GAAP financial measures that ScanSource reports may not be comparable to similarly titled amounts reported by other companies. Analysis of results and outlook on a non-GAAP basis should be considered in addition to, and not in substitution for or as superior to, measurements of financial performance prepared in accordance with GAAP. A reconciliation of ScanSource's non-GAAP financial information to GAAP is set forth in the Supplementary Information (Unaudited) below.

About ScanSource, Inc.

ScanSource, Inc. (NASDAQ:SCSC) is a leading technology distributor uniquely positioned to address complex technologies and to accelerate growth for channel sales partners across hardware, software as a service (SaaS), connectivity and cloud services. ScanSource enables channel sales partners to deliver converging solutions for their end users. ScanSource uses multiple sales models to offer technology solutions from leading suppliers of specialty technologies, connectivity and cloud services. Founded in 1992 and headquartered in Greenville, South Carolina, ScanSource was named one of the 2025 Best Places to Work in South Carolina and on the Fortune World’s Most Admired Companies 2026 list. ScanSource ranks #923 on the Fortune 1000. For more information, visit www.scansource.com.

ScanSource, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands, except share data)
	June 30, 2026 *			June 30, 2025 *
Assets
Current assets:
Cash and cash equivalents	$	88,374		$	126,157
Accounts receivable, less allowance of $26,568 at June 30, 2026 and $27,821 at June 30, 2025		769,750			635,521
Inventories		522,350			483,815
Prepaid income tax expense		10,704			2,821
Prepaid expenses and other current assets		116,816			122,138
Total current assets		1,507,994			1,370,452
Property and equipment, net		34,856			31,169
Goodwill		244,902			230,820
Identifiable intangible assets, net		64,391			62,909
Deferred income taxes		10,590			18,769
Other non-current assets		69,696			71,487
Total assets	$	1,932,429		$	1,785,606
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	753,275		$	598,595
Accrued expenses and other current liabilities		86,538			71,263
Current portion of contingent consideration		15,988			1,318
Income taxes payable		474			3,927
Current portion of long-term debt		2,866			7,861
Total current liabilities		859,141			682,964
Long-term debt, net of current portion		98,547			128,288
Long-term portion of contingent consideration		12,162			17,782
Other long-term liabilities		51,787			50,163
Total liabilities		1,021,637			879,197
Commitments and contingencies
Shareholders’ equity:
Preferred stock, no par value; 3,000,000 shares authorized, none issued		—			—
Common stock, no par value; 45,000,000 shares authorized, 20,161,911 and 22,217,421 shares issued and outstanding at June 30, 2026 and June 30, 2025, respectively		—			—
Retained earnings		1,018,144			1,020,833
Accumulated other comprehensive loss		(107,352	)		(114,424	)
Total shareholders’ equity		910,792			906,409
Total liabilities and shareholders’ equity	$	1,932,429		$	1,785,606

*Derived from audited financial statements.

ScanSource, Inc. and Subsidiaries
Condensed Consolidated Income Statements (Unaudited)
(in thousands, except per share data)

	Quarter ended June 30,						Fiscal Year Ended June 30,
		2026			2025		2026 *			2025 *
Net sales	$	953,109		$	812,886		$	3,226,062		$	3,040,810
Cost of goods sold		833,260			707,784			2,788,707			2,632,164
Gross profit		119,849			105,102			437,355			408,646
Selling, general and administrative expenses		81,722			71,610			313,176			286,934
Depreciation expense		1,483			1,925			5,992			10,004
Intangible amortization expense		4,031			4,927			16,721			19,227
Restructuring and other charges		1,766			—			1,766			5,381
Change in fair value of contingent consideration		(890	)		(147	)		1,073			1,900
Operating income		31,737			26,787			98,627			85,200
Interest expense		1,430			2,099			6,593			8,013
Interest income		(3,270	)		(3,054	)		(12,264	)		(11,247	)
Other expense (income), net		303			245			555			(5,962	)
Income before income taxes		33,274			27,497			103,743			94,396
Provision for income taxes		7,656			7,408			24,870			22,848
Net income	$	25,618		$	20,089		$	78,873		$	71,548

Per share data:
Net income per common share, basic	$	1.26		$	0.89		$	3.69		$	3.05
Weighted-average shares outstanding, basic		20,334			22,526			21,384			23,442

Net income per common share, diluted	$	1.24		$	0.88		$	3.64		$	3.00
Weighted-average shares outstanding, diluted		20,710			22,858			21,692			23,839

*Derived from audited financial statements.

ScanSource, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in thousands)
	Fiscal Year Ended June 30,
	2026 *			2025 *
Cash flows from operating activities:
Net income	$	78,873		$	71,548
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		23,633			30,195
Amortization of debt issue costs		615			386
Provision for doubtful accounts		5,956			8,351
Share-based compensation		14,063			11,062
Deferred income taxes		4,565			1,128
Change in fair value of contingent consideration		1,073			1,900
Finance lease interest		49			86
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable		(133,226	)		(55,011	)
Inventories		(36,659	)		28,874
Prepaid expenses and other assets		(1,884	)		7,303
Other non-current assets		2,864			3,974
Accounts payable		150,881			3,673
Accrued expenses and other liabilities		15,749			2,846
Income taxes payable		(3,421	)		(3,966	)
Net cash provided by operating activities		123,131			112,349
Cash flows from investing activities:
Capital expenditures		(9,286	)		(8,286	)
Cash paid for business acquisitions, net of cash acquired		(18,220	)		(56,673	)
Proceeds from sale of business, net of cash transferred		—			2,569
Net cash used in investing activities		(27,506	)		(62,390	)
Cash flows from financing activities:
Borrowings on revolving credit		293,264			51,954
Repayments on revolving credit		(293,266	)		(52,004	)
Borrowings on long-term debt		100,000			—
Repayments on long-term debt		(134,736	)		(7,857	)
Repayments on finance lease obligation		(998	)		(1,090	)
Debt issuance costs		(1,394	)		—
Contingent consideration payments		(1,375	)		—
Exercise of stock options		4,959			9,511
Taxes paid on settlement of equity awards		(3,032	)		(4,895	)
Common stock repurchased		(97,900	)		(106,524	)
Net cash used in financing activities		(134,478	)		(110,905	)
Effect of exchange rate changes on cash and cash equivalents		1,070			1,643
Decrease in cash and cash equivalents		(37,783	)		(59,303	)
Cash and cash equivalents at beginning of period		126,157			185,460
Cash and cash equivalents at period end	$	88,374		$	126,157

*Derived from audited financial statements.

ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
(in thousands, except percentages)

Non-GAAP Financial Information:
	Quarter ended June 30,						Fiscal year ended June 30,
		2026			2025			2026			2025
*Reconciliation of Net Income to Adjusted EBITDA:*
Net income (GAAP)	$	25,618		$	20,089		$	78,873		$	71,548
Plus: Interest expense		1,430			2,099			6,593			8,013
Plus: Income taxes		7,656			7,408			24,870			22,848
Plus: Depreciation and amortization		5,782			7,101			23,633			30,195
EBITDA (non-GAAP)		40,486			36,697			133,969			132,604
Plus: Change in fair value of contingent consideration		(890	)		(147	)		1,073			1,900
Plus: Share-based compensation		3,572			2,673			14,063			11,062
Plus: Acquisition costs ^(a)		270			191			1,264			926
Plus: Cyberattack restoration costs		23			—			119			177
Plus: Restructuring costs		1,766			—			1,766			5,381
Plus: Legal settlement		921			—			921			1,579
Plus: Tax recovery		—			(470	)		(789	)		(3,041	)
Plus: Insurance recovery, net of payments		—			(305	)		(838	)		(5,928	)
Adjusted EBITDA (numerator for Adjusted ROIC) (non-GAAP)	$	46,148		$	38,639		$	151,548		$	144,660

*Invested Capital Calculations:*
Equity – beginning of the period	$	906,261		$	901,746		$	906,409		$	924,255
Equity – end of the period		910,792			906,393			910,792			906,409
Plus: Change in fair value of contingent consideration, net		(668	)		(110	)		806			1,432
Plus: Share-based compensation, net		2,674			2,007			10,530			8,310
Plus: Acquisition costs ^(a)		270			191			1,265			926
Plus: Cyberattack restoration costs, net		17			—			89			133
Plus: Restructuring costs, net		1,326			—			1,326			4,054
Plus: Insurance recovery, net		—			(229	)		(629	)		(4,466	)
Plus: Legal settlement, net		691			—			691			1,189
Plus: Tax recovery, net		—			(310	)		(2,991	)		(4,072	)
Average equity		910,682			904,844			914,144			919,085
Average funded debt ^(b)		106,622			138,270			119,729			141,173
Invested capital (denominator for Adjusted ROIC) (non-GAAP)	$	1,017,304		$	1,043,114		$	1,033,873		$	1,060,258

Adjusted return on invested capital ratio (Adjusted ROIC), annualized ^(c)		18.2	%		14.9	%		14.7	%		13.6	%

(a) Acquisition costs are generally non-deductible for tax purposes.
(b) Average funded debt is calculated as the average daily amounts outstanding on short-term and long-term interest-bearing debt.
(c) The annualized adjusted EBITDA amount is divided by days in the quarter times 365 days per year, or 366 days for leap year. There were 91 days each in the current quarter and prior-year quarter.

ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)

Net Sales by Segment:
	Quarter ended June 30,
	2026			2025		% Change
Specialty Technology Solutions:	*(in thousands)*
Net sales, reported	$	927,179		$	788,708	17.6	%
Foreign exchange impact ^(a)		(5,849	)		—
Less: Acquisitions		(2,396	)		—
Non-GAAP net sales	$	918,934		$	788,708	16.5	%

Intelisys & Advisory:
Net sales, reported	$	25,930		$	24,178	7.2	%

Consolidated:
Net sales, reported	$	953,109		$	812,886	17.3	%
Foreign exchange impact ^(a)		(5,849	)		—
Less: Acquisitions		(2,396	)		—
Non-GAAP net sales	$	944,864		$	812,886	16.2	%

^(a) Year-over-year net sales growth rate excluding the translation impact of changes in foreign currency exchange rates. Calculated by translating the net sales for the quarter ended June 30, 2026 into U.S. dollars using the average foreign exchange rates for the quarter ended June 30, 2025.

Net Sales by Segment:
	Fiscal year ended June 30,
	2026			2025			% Change
Specialty Technology Solutions:	*(in thousands)*
Net sales, reported	$	3,124,932		$	2,942,717		6.2	%
Foreign exchange impact ^(a)		(17,025	)		—
Less: Acquisitions		(14,119	)		(3,512	)
Non-GAAP net sales	$	3,093,788		$	2,939,205		5.3	%

Intelisys & Advisory:
Net sales, reported	$	101,130		$	98,093		3.1	%
Less: Acquisitions		(1,336	)		(577	)
Non-GAAP net sales	$	99,794		$	97,516		2.3	%

Consolidated:
Net sales, reported	$	3,226,062		$	3,040,810		6.1	%
Foreign exchange impact ^(a)		(17,025	)		—
Less: Acquisitions		(15,455	)		(4,089	)
Non-GAAP net sales	$	3,193,582		$	3,036,721		5.2	%

^(a) Year-over-year net sales growth rate excluding the translation impact of changes in foreign currency exchange rates. Calculated by translating the net sales for the twelve months ended June 30, 2026 into U.S. dollars using the average foreign exchange rates for the twelve months ended June 30, 2025.

ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
Net Sales by Geography:
	Quarter ended June 30,
	2026			2025		% Change
United States:	*(in thousands)*
Net sales, reported ^(a)	$	899,594		$	744,644	20.8	%
Less: Acquisitions		(2,396	)		—
Non-GAAP net sales	$	897,198		$	744,644	20.5	%

Brazil:
Net sales, reported ^(b)	$	53,515		$	68,242	(21.6	)%
Foreign exchange impact ^(c)		(5,849	)		—
Non-GAAP net sales	$	47,666		$	68,242	(30.2	)%

Consolidated:
Net sales, reported	$	953,109		$	812,886	17.3	%
Foreign exchange impact ^(c)		(5,849	)		—
Less: Acquisitions		(2,396	)		—
Non-GAAP net sales	$	944,864		$	812,886	16.2	%

^(a) Includes net sales in Canada that are supported by U.S. operations and represent less than 5% of United States net sales for the quarters ended June 30, 2026 and 2025.
^(b) Includes net sales from outside of the United States, Canada and Brazil, which represent less than 0.1% of Brazil net sales for the quarters ended June 30, 2026 and 2025.
^(c) Year-over-year net sales growth rate excluding the translation impact of changes in foreign currency exchange rates. Calculated by translating the net sales for the quarter ended June 30, 2026 into U.S. dollars using the average foreign exchange rates for the quarter ended June 30, 2025.

ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
Net Sales by Geography:

	Fiscal year ended June 30,
		2026			2025		% Change
United States:	*(in thousands)*
Net sales, reported ^(a)	$	2,999,458		$	2,800,739		7.1	%
Less: Acquisitions		(15,455	)		(4,089	)
Non-GAAP net sales, excluding acquisitions	$	2,984,003		$	2,796,650		6.7	%

Brazil:
Net sales, reported^(b)	$	226,604		$	240,071		(5.6	)%
Foreign exchange impact ^(b)		(17,025	)		—
Non-GAAP net sales	$	209,579		$	240,071		(12.7	)%

Consolidated:
Net sales, reported	$	3,226,062		$	3,040,810		6.1	%
Foreign exchange impact ^(c)		(17,025	)		—
Less: Acquisitions		(15,455	)		(4,089	)
Non-GAAP net sales	$	3,193,582		$	3,036,721		5.2	%

^(a) Includes net sales in Canada that are supported by U.S. operations and represent less than 5% of United Sates sales for the fiscal years ended June 30, 2026 and 2025.
^(b) Includes net sales from outside of the United States, Canada and Brazil, which represent less than 0.1% of Brazil net sales for the fiscal years ended June 30, 2026 and 2025.
^(c) Year-over-year net sales growth rate excluding the translation impact of changes in foreign currency exchange rates. Calculated by translating the net sales for the fiscal year ended June 30, 2026 into U.S. dollars using the average foreign exchange rates for the fiscal year ended June 30, 2025.

Free Cash Flow:
	Quarter ended June 30,						Fiscal year ended June 30,
		2026			2025			2026			2025
GAAP operating cash flow	$	(2,272	)	$	7,644		$	123,131		$	112,349
Less: Capital expenditures		(2,517	)		(2,518	)		(9,286	)		(8,286	)
Free cash flow (non-GAAP)	$	(4,789	)	$	5,126		$	113,845		$	104,063

ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
Net Sales by Revenue Type:

	Quarter ended June 30,
	2026		2025		% Change
	*(in thousands)*
Net sales by product/service:
Products and services	$	911,640	$	776,349	17.4	%
Recurring revenue^(a)		41,469		36,537	13.5	%
	$	953,109	$	812,886	17.3	%

	Fiscal year ended June 30,
	2026		2025		% Change
	*(in thousands)*
Net sales by product/service:
Products and services	$	3,064,853	$	2,895,110	5.9	%
Recurring revenue^(a)		161,209		145,700	10.6	%
	$	3,226,062	$	3,040,810	6.1	%

^(a) Recurring revenue represents primarily agency commissions, managed connectivity, SaaS, subscriptions, and hardware rentals.

ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
(in thousands, except per share data)

Reconciliation of Other Non-GAAP Financial Information:

	Quarter ended June 30, 2026
		GAAP Measure		Intangible amortization expense		Change in fair value of contingent consideration			Acquisition costs ^(a)			Restructuring costs		Tax recovery			Cyberattack restoration costs			Legal settlement			Insurance recovery			Non-GAAP measure
	*(in thousands, except per share data)*
SG&A expenses		$	81,722	$	—	$	—		$	(270	)	$	—	$	—		$	(23	)	$	(921	)	$	—		$	80,508
Operating income			31,737		4,031		(890	)		270			1,766		—			23			921			—			37,858
Pre-tax income			33,274		4,031		(890	)		270			1,766		—			23			921			—			39,395
Net income			25,618		3,026		(668	)		270			1,326		—			17			691			—			30,280
Diluted EPS		$	1.24	$	0.15	$	(0.03	)	$	0.01		$	0.06	$	—		$	—		$	0.03		$	—		$	1.46

	Quarter ended June 30, 2025
		GAAP Measure		Intangible amortization expense		Change in fair value of contingent consideration			Acquisition costs ^(a)			Restructuring costs		Tax recovery			Cyberattack restoration costs			Legal settlement			Insurance recovery			Non-GAAP measure
	*(in thousands, except per share data)*
SG&A expense		$	71,610	$	—	$	—		$	(191	)	$	—	$	470		$	—		$	—		$	—		$	71,889
Operating income			26,787		4,927		(147	)		191			—		(470	)		—			—			—			31,288
Pre-tax income			27,497		4,927		(147	)		191			—		(470	)		—			—			(305	)		31,693
Net income			20,089		3,691		(110	)		191			—		(310	)		—			—			(229	)		23,322
Diluted EPS		$	0.88	$	0.16	$	—		$	0.01		$	—	$	(0.01	)	$	—		$	—		$	(0.01	)	$	1.02

^(a) Acquisition costs are generally nondeductible for tax purposes.

ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
(in thousands, except per share data)

Reconciliation of Other Non-GAAP Financial Information:

	Year ended June 30, 2026
		GAAP Measure		Intangible amortization expense		Change in fair value of contingent consideration		Acquisition costs ^(a)			Restructuring costs		Tax recovery			Cyberattack restoration costs			Legal Settlement			Insurance recovery			Non-GAAP measure
	*(in thousands, except per share data)*
SG&A expenses		$	313,176	$	—	$	—	$	(1,264	)	$	—	$	789		$	(119	)	$	(921	)	$	—		$	311,661
Operating income			98,627		16,721		1,073		1,264			1,766		(789	)		119			921			—			119,702
Pre-tax income			103,743		16,721		1,073		1,264			1,766		(789	)		119			921			(838	)		123,980
Net income			78,873		12,516		806		1,264			1,326		(2,991	)		89			691			(629	)		91,945
Diluted EPS		$	3.64	$	0.58	$	0.04	$	0.06		$	0.06	$	(0.14	)	$	—		$	0.03		$	(0.03	)	$	4.24

	Year ended June 30, 2025
		GAAP Measure		Intangible amortization expense		Change in fair value of contingent consideration		Acquisition costs ^(a)			Restructuring costs		Tax recovery			Cyberattack restoration costs			Legal Settlement			Insurance recovery			Non-GAAP measure
	*(in thousands, except per share data)*
SG&A expense		$	286,934	$	—	$	—	$	(926	)	$	—	$	3,041		$	(177	)	$	(1,579	)	$	—		$	287,293
Operating income			85,200		19,227		1,900		926			5,381		(3,041	)		177			1,579			—			111,349
Pre-tax income			94,396		19,227		1,900		926			5,381		(3,041	)		177			1,579			(5,928	)		114,617
Net income			71,548		14,400		1,432		926			4,054		(4,072	)		133			1,189			(4,466	)		85,144
Diluted EPS		$	3.00	$	0.60	$	0.06	$	0.04		$	0.17	$	(0.17	)	$	0.01		$	0.05		$	(0.19	)	$	3.57

^(a) Acquisition costs are generally nondeductible for tax purposes.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260820637702/en/

Steve Jones

Senior EVP, Chief Financial Officer

ScanSource, Inc.

(864) 286-4302

Mary M. Gentry

SVP, Finance and Treasurer

ScanSource, Inc.

(864) 286-4892