ScanSource (NASDAQ:SCSC) Posts Earnings Results, Misses Estimates By $0.20 EPS

ScanSource (NASDAQ:SCSC) posted its earnings results on Thursday. The industrial products company reported $0.80 earnings per share for the quarter, missing the consensus estimate of $1.00 by ($0.20), FiscalAI reports. ScanSource had a return on equity of 9.35% and a net margin of 2.44%.The business had revenue of $766.51 million for the quarter, compared to analysts’ expectations of $782.46 million. During the same quarter in the previous year, the firm earned $0.85 EPS. ScanSource’s revenue for the quarter was up 2.5% compared to the same quarter last year.

Here are the key takeaways from ScanSource’s conference call:

• Profitability was hit this quarter by unexpected period costs — primarily freight/mix increases and a customer-specific bad-debt reserve — which reduced gross profit and Adjusted EBITDA margins in the Specialty Technology Solutions segment.
• The company launched a new converged communications sales team that combines Specialty hardware and Intelisys cloud/CX capabilities to strengthen partner alignment and expand share-of-wallet.
• Intelisys new orders are growing faster than billings as management continues to invest ahead of revenue, and they expect many of those orders to convert into billings over roughly a one-year horizon.
• Management lowered FY2026 revenue guidance to $3.0–3.1 billion and Adjusted EBITDA to $140–150 million, attributing the change mainly to timing/slowdown of large deals, though they maintained an annual free cash flow target of at least $80 million.
• The company emphasizes a strong balance sheet and capital flexibility — ~ $83 million cash, net debt leverage ~0, $18 million of share repurchases this quarter and $179 million remaining under the buyback authorization — supporting buybacks and selective M&A.

ScanSource Price Performance

NASDAQ:SCSC opened at $38.39 on Friday. The firm has a market cap of $842.28 million, a PE ratio of 11.78, a price-to-earnings-growth ratio of 0.59 and a beta of 1.28. The company has a quick ratio of 1.32, a current ratio of 1.96 and a debt-to-equity ratio of 0.11. ScanSource has a 12 month low of $28.75 and a 12 month high of $46.25. The company’s 50-day moving average price is $40.90 and its two-hundred day moving average price is $41.77.

Insider Transactions at ScanSource

In other news, CFO Stephen Jones sold 5,020 shares of the company’s stock in a transaction dated Thursday, December 11th. The stock was sold at an average price of $42.30, for a total transaction of $212,346.00. Following the completion of the transaction, the chief financial officer directly owned 83,326 shares of the company’s stock, valued at $3,524,689.80. This represents a 5.68% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Michael L. Baur sold 9,459 shares of ScanSource stock in a transaction that occurred on Tuesday, December 16th. The stock was sold at an average price of $41.42, for a total value of $391,791.78. Following the sale, the chief executive officer directly owned 182,512 shares of the company’s stock, valued at approximately $7,559,647.04. The trade was a 4.93% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 25,020 shares of company stock worth $1,035,669. 3.18% of the stock is currently owned by insiders.

Institutional Trading of ScanSource

A number of large investors have recently bought and sold shares of the company. Jacobs Levy Equity Management Inc. boosted its stake in shares of ScanSource by 65.6% in the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 389,915 shares of the industrial products company’s stock valued at $17,152,000 after purchasing an additional 154,518 shares in the last quarter. CANADA LIFE ASSURANCE Co raised its holdings in ScanSource by 7.2% during the third quarter. CANADA LIFE ASSURANCE Co now owns 19,168 shares of the industrial products company’s stock valued at $845,000 after acquiring an additional 1,291 shares during the period. Wasatch Advisors LP increased its stake in ScanSource by 34.9% in the 3rd quarter. Wasatch Advisors LP now owns 1,139,573 shares of the industrial products company’s stock worth $50,130,000 after acquiring an additional 294,624 shares during the last quarter. Verition Fund Management LLC increased its position in shares of ScanSource by 37.4% during the 3rd quarter. Verition Fund Management LLC now owns 41,725 shares of the industrial products company’s stock valued at $1,835,000 after purchasing an additional 11,368 shares during the last quarter. Finally, Polymer Capital Management US LLC bought a new position in shares of ScanSource in the third quarter worth about $356,000. 97.91% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several research firms recently commented on SCSC. Wall Street Zen downgraded shares of ScanSource from a “buy” rating to a “hold” rating in a research report on Saturday, January 17th. Zacks Research downgraded shares of ScanSource from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, October 21st. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of ScanSource in a report on Monday, December 29th. One equities research analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $42.50.

Key Stories Impacting ScanSource

Here are the key news stories impacting ScanSource this week:

• Positive Sentiment: Management launched a dedicated unified‑communications go‑to‑market team and emphasized strategic initiatives intended to drive future growth — a potential catalyst for higher‑margin sales and deal conversion over time. Article Title
• Positive Sentiment: Board/governance refresh announced alongside results — typically viewed positively by investors focused on execution and oversight. Article Title
• Neutral Sentiment: Company characterized Q2 as steady/modest growth (revenue +2.5% YoY), and management framed the quarter in the context of strategic investments and pipeline development. Conference call transcripts provide more color on execution plans. Article Title
• Negative Sentiment: Q2 EPS of $0.80 missed consensus ($1.00) and declined from $0.85 a year ago — a clear near‑term disappointment for earnings‑focused investors. Article Title
• Negative Sentiment: Revenue of $766.5M missed estimates (~$782.5M), and management trimmed FY26 revenue guidance to $3.0B–$3.1B (below Street ~ $3.2B), citing softer large‑deal activity — the primary driver of downward pressure on the stock. Article Title
• Negative Sentiment: Multiple outlets note the company “missed” quarterly revenue/earnings expectations, which explains headline weakness and intraday selling pressure before the rebound. Article Title

ScanSource Company Profile

ScanSource, Inc is a global provider of technology products and solutions designed to help businesses enhance operational efficiency and customer engagement. The company specializes in the distribution of point-of-sale (POS) systems, barcode and data capture devices, networking and communications equipment, and value-added software and cloud services. By combining hardware, software and professional services, ScanSource supports channel partners in delivering end-to-end solutions across multiple industries, including retail, hospitality, healthcare and logistics.

Founded in 1992 and headquartered in Greenville, South Carolina, ScanSource has built a broad international footprint, serving customers throughout North, Central and South America as well as Europe, the Middle East and Africa.