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ScanSource Posts Modest Q2 Growth and Governance Refresh

Story Highlights
  • ScanSource delivered modest Q2 2026 sales growth, higher recurring revenue, but softer non-GAAP profitability.
  • Board leadership roles were realigned, with new committee chairs appointed while maintaining continuity on the board.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
ScanSource Posts Modest Q2 Growth and Governance Refresh

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ScanSource ( (SCSC) ) has issued an update.

On February 5, 2026, ScanSource reported results for the second quarter ended December 31, 2025, posting a 2.5% year-over-year increase in net sales to $766.5 million and a 1.2% rise in gross profit to $102.9 million, even as gross margin, operating income and non-GAAP profitability declined modestly. Recurring revenue grew 15.9% year-over-year and accounted for a larger share of gross profit, while adjusted EBITDA and non-GAAP net income fell compared with the prior-year period; the company generated strong operating and free cash flow, held modest net debt, and repurchased $38.7 million of shares during the first half of fiscal 2026. In a parallel move to refine its governance structure, the board appointed Charles A. Mathis as lead independent director and chair of the nominating and corporate governance committee, with Vernon J. Nagel taking over as audit committee chair, while longtime director Peter C. Browning remained on the board and all committees, signaling continuity alongside refreshed oversight for investors and other stakeholders.

The most recent analyst rating on (SCSC) stock is a Hold with a $43.00 price target. To see the full list of analyst forecasts on ScanSource stock, see the SCSC Stock Forecast page.

Spark’s Take on SCSC Stock

According to Spark, TipRanks’ AI Analyst, SCSC is a Neutral.

ScanSource’s overall stock score reflects a stable financial position with low leverage and reasonable valuation. However, the bearish technical indicators and revenue challenges weigh on the score. The earnings call provided some positive insights, but top-line growth remains a concern.

To see Spark’s full report on SCSC stock, click here.

More about ScanSource

ScanSource, Inc. (NASDAQ: SCSC) is a leading technology distributor focused on complex, converging technologies, with operations spanning specialty technology solutions and the Intelisys & Advisory segment. The company’s offerings encompass products and services as well as a growing base of recurring revenue, with particular strength in North America.

Average Trading Volume: 184,708

Technical Sentiment Signal: Strong Buy

Current Market Cap: $972.7M

Find detailed analytics on SCSC stock on TipRanks’ Stock Analysis page.

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