ScanSource, Inc. Reports Strong Q4 Results

ScanSource Inc ( (SCSC) ) has released its Q4 earnings. Here is a breakdown of the information ScanSource Inc presented to its investors.

ScanSource, Inc. is a prominent technology distributor that specializes in providing complex, converging technology solutions across hardware, software as a service (SaaS), connectivity, and cloud services. The company is headquartered in Greenville, South Carolina, and is recognized for its ability to accelerate growth for channel sales partners.

ScanSource, Inc. recently announced its financial results for the fourth quarter and full fiscal year ending June 30, 2025. The company reported strong fourth-quarter performance, which helped it achieve its full-year outlook despite a challenging start to the fiscal year.

In the fourth quarter, ScanSource’s net sales increased by 8.9% year-over-year to $812.9 million, driven by significant growth in North America and a notable rise in recurring revenue. The company’s gross profit rose by 8.0% to $105.1 million, with a gross profit margin of 12.9%. Operating income saw a substantial increase of 22.5% from the previous year, while GAAP net income rose by 24.8% to $20.1 million. For the full fiscal year, however, net sales declined by 6.7% to $3.04 billion, reflecting a cautious technology spending environment earlier in the year. Nonetheless, the company managed to increase its gross profit margin to 13.4% and saw a 9.6% rise in non-GAAP net income.

Looking ahead, ScanSource plans to make strategic investments to accelerate growth and expand margins in fiscal year 2026. The company has set an optimistic annual outlook, projecting net sales between $3.1 billion to $3.3 billion and adjusted EBITDA in the range of $150 million to $160 million. ScanSource’s management remains focused on leveraging its unique position in the market to drive future success.