ScanSource, Inc. (SCSC)

In the past six months, ScanSource, Inc. stock has been impacted by several earnings reports and related market reactions. On May 8, 2025, ScanSource announced its Q3 FY2025 results, reporting strong profitability and free cash flow despite a 6.3% year-over-year decline in net sales. On August 21, 2025, ScanSource reported its Q4 and full-year results for fiscal year 2025, with a revenue decrease of 6.72% and earnings decrease of 7.15% for the full fiscal year. On November 6, 2025, ScanSource reported its Q1 FY2026 results, announcing an EPS of $1.06, exceeding analyst estimates, but revenue fell short, leading to a stock tumble.

Demand for ScanSource's products and services exhibits some seasonality, and forecasting demand can be challenging due to the absence of backlogs and bookings. The second quarter has historically experienced softer demand. Demand can improve in the third quarter. If improved demand continues from Q3, ScanSource anticipates a more typical quarter-over-quarter increase for the June quarter. Overall, the company has observed periods of softer demand, particularly in the second fiscal quarter, with expectations for improvement in subsequent quarters.

ScanSource, Inc. is a global distributor of technology products and solutions, operating in the Technology sector and the Electronics & Computer Distribution industry. The company operates through two segments: Specialty Technology Solutions and Intelisys & Advisory. The Specialty Technology Solutions segment offers mobility and barcode solutions, POS systems, payment terminals, physical security, networking, and communications, serving diverse industries. The Intelisys & Advisory segment focuses on connectivity, software-defined networking, CX, cloud/data center, security, managed AI, and wireless and IoT solutions. ScanSource connects devices to the cloud and accelerates growth for channel sales partners across hardware, SaaS, connectivity, and cloud services.

ScanSource, Inc. has a significant international presence, distributing technology products and solutions in the United States and globally. The company maintains 43 offices across North America, South America, and Europe. Key locations include its headquarters in Greenville, South Carolina, and warehouses in Louisville, Kentucky, and Sacramento, California, within the United States. In South America, ScanSource has offices and warehouses in various Brazilian states, including Paraná (Curitiba), Santa Catarina (Itajai), Pernambuco (Recife), São Paulo, and Espirito Santo (Serra).

ScanSource has maintained a strong brand reputation in the past year. As of January 31, 2025, the company was named to Fortune Magazine's 2025 list of World's Most Admired Companies for the ninth consecutive year. In September 2024, ScanSource released its annual Corporate Citizenship Report for fiscal year 2024, highlighting its ESG strategy and progress, emphasizing its commitment to business ethics, DE&I, data security and privacy, and employee engagement, training, and development.

ScanSource, Inc. is predominantly owned by institutional shareholders, who hold 96.70% of the company's stock. Major institutional owners include BlackRock, Inc., Vanguard Group Inc, Dimensional Fund Advisors Lp, State Street Corp, Pzena Investment Management Llc, Wasatch Advisors Inc, and American Century Companies Inc. Individual investors hold a smaller portion, with company insiders owning 4.87%. Michael L. Baur, the founder, Chairman, and CEO, is the largest individual shareholder, holding 222,512 shares, representing 1.01% of the company.