Overview

* ScanSource ( SCSC ) fiscal Q1 net sales decline 4.6%, missing analyst expectations

* Non-GAAP diluted EPS for fiscal Q1 beats consensus, growing 26.2% yr/yr

* Gross profit margin improved to 14.5% from 13.1% due to favorable sales mix

Outlook

* ScanSource ( SCSC ) reaffirms FY26 net sales guidance of $3.1 bln to $3.3 bln

* Company expects FY26 adjusted EBITDA between $150 mln and $160 mln

* ScanSource ( SCSC ) anticipates FY26 free cash flow of at least $80 mln

Result Drivers

* SALES DECLINE - Net sales decreased 4.6% due to lower large deals in Specialty Technology Solutions

* GROSS PROFIT MARGIN - Improved to 14.5% from 13.1% due to favorable supplier program recognition and sales mix

* ACQUISITION IMPACT - Intelisys & Advisory net sales increased 4.0% due to the addition of an acquisition

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q1 Sales Miss $739.65 $787.37

mln mln (3

Analysts

)

Q1 Beat $1.06 $0.93 (4

Adjusted Analysts

EPS )

Q1 $23.69

Adjusted mln

Net

Income

Q1 $38.59

Adjusted mln

EBITDA

Q1 Gross $107.47

Profit mln

Q1 $25.90

Operatin mln

g Income

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)