ScanSource, Inc. Reports Q3 Results and Share Buyback

ScanSource Inc ( (SCSC) ) has released its Q3 earnings. Here is a breakdown of the information ScanSource Inc presented to its investors.

ScanSource, Inc. is a leading hybrid distributor that connects devices to the cloud, specializing in hardware, software as a service (SaaS), connectivity, and cloud solutions. The company, headquartered in Greenville, South Carolina, serves channel partners by offering hybrid distribution solutions from leading suppliers of specialty technologies.

In its latest earnings report for the third quarter of fiscal year 2025, ScanSource, Inc. announced a new $200 million share repurchase authorization. Despite a decline in net sales, the company reported an increase in gross profit and operating income, highlighting improved hardware demand and successful acquisitions.

Key financial metrics for the quarter included a 6.3% decrease in net sales to $704.8 million, while gross profit rose by 6.1% to $100.2 million. The gross profit margin improved to 14.2% from 12.6% in the previous year. Operating income increased by 27.3% to $22.3 million, and GAAP net income rose by 36.1% to $17.4 million. The company also reported a 5.9% increase in adjusted EBITDA to $35.1 million.

Looking ahead, ScanSource has updated its annual financial outlook for fiscal year 2025, expecting net sales of approximately $3 billion and adjusted EBITDA between $140 million and $145 million. The company remains focused on leveraging its acquisitions and enhancing its recurring revenue streams to drive future growth.