0000918965false00009189652024-06-302024-06-30

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
Form 8-K
 
CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 30, 2025

 ScanSource, Inc.
(Exact name of registrant as specified in its charter)
SC00-26926 57-0965380
(State or other jurisdiction
of incorporation)		(Commission File Number) (IRS Employer
Identification No.)

6 Logue Court, Greenville, SC 29615
(Address of principal executive offices, including zip code)
864-288-2432
(Registrant’s telephone number, including area code)
Title of Each ClassTrading SymbolName of Each Exchange on Which Registered
Common Stock, no par valueSCSCNASDAQ Global Select Market
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.
Emerging growth company☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   ☐   


Item 2.02. Results of Operations and Financial Condition

On January 30, 2025, ScanSource, Inc. (the "Company") issued a press release announcing its financial results for its second quarter ended December 31, 2024. A copy of the press release and accompanying Earnings Infographic are attached as Exhibits 99.1 and 99.2 hereto and incorporated herein by reference and also made available through the Company’s website at www.scansource.com. An updated investor presentation will be made available on the Company's website within approximately two weeks.

The information in Item 2.02 of this Report, including the Exhibits 99.1 and 99.2 hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any other filing under the Securities Act of 1933, as amended, or the Exchange Act.




Item 5.02. Departure of Director or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On January 22, 2025, as announced in a press release issued by the Company on January 30, 2025, the Company appointed Michael L. Baur, who currently serves as Chair and Chief Executive Officer of the Company, to also serve as President of the Company, effective January 27, 2025. Mr. Baur has served as the Company’s President and/or Chief Executive Officer since the Company’s inception in December 1992, as a director since December 1995, and as the Chair of the Company’s Board of Directors since February 2019. Mr. Baur will continue to serve as the Company’s Chair and Chief Executive Officer, and his compensation will not change in connection with the appointment.




Item 9.01. Financial Statements and Exhibits

(d) Exhibits

99.1 – Press release issued by ScanSource, Inc. on January 30, 2025. The information contained in the attached exhibit is unaudited and should be read in conjunction with the Company’s annual and quarterly reports filed with the Securities and Exchange Commission.

99.2 – Earnings Infographic for the financial results conference call held on January 30, 2025.  The information contained in the attached exhibit is unaudited and should be read in conjunction with the Company’s annual and quarterly reports filed with the Securities and Exchange Commission.

Exhibit
Number		Description
99.1
99.2
104Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
    ScanSource, Inc.
    
Date:January 30, 2025    /s/ STEVE JONES
     Steve Jones
     Senior Executive Vice President and Chief Financial Officer


Exhibit 99.1

FOR IMMEDIATE RELEASE
Contact:  
Steve Jones Mary M. Gentry
Senior EVP, Chief Financial OfficerSVP, Finance and Treasurer
ScanSource, Inc. ScanSource, Inc.
(864) 286-4302 (864) 286-4892

SCANSOURCE REPORTS SECOND QUARTER RESULTS
Recurring Revenue Growth Opportunities Fueled by Recent Acquisitions

GREENVILLE, SC -- January 30, 2025 -- ScanSource, Inc. (NASDAQ: SCSC), a leading hybrid distributor connecting devices to the cloud, today announced financial results for the second quarter ended December 31, 2024.

Second Quarter Summary
Q2 FY25Q2 FY24Change
(in thousands, except percentages and per share data)
Select reported measures:
Net sales$747,497 $884,792 -15.5%
Gross profit$101,723 $100,748 1.0%
Gross profit margin %13.6 %11.4 %222bp
Operating income$18,444 $26,826 -31.2%
GAAP net income$17,053 $32,726 -47.9%
GAAP diluted EPS$0.70 $1.29 -45.7%
Select Non-GAAP measures*:
Adjusted EBITDA$35,299 $38,459 -8.2%
Adjusted EBITDA margin %4.72 %4.35 %37bp
Non-GAAP net income$20,698 $21,587 -4.1%
Non-GAAP diluted EPS$0.85 $0.85 —%
Note: Margin % reflects measure as a percentage of sales.
* Represents non-GAAP financial measures. For more information and a reconciliation to the most directly comparable GAAP financial measure, see "Non-GAAP Financial Information" below as well as the accompanying Supplementary Information.

“In a soft demand environment, our team delivered second quarter gross profit growth and a strong gross profit margin,” said Mike Baur, Chair and CEO, ScanSource, Inc. “Our recent acquisitions are expanding recurring revenue opportunities for our channel partners.”

Quarterly Results

Net sales for the second quarter of fiscal year 2025 totaled $747.5 million, down 15.5% year-over-year, or down 15.1% for non-GAAP net sales. Net sales for products and services decreased 17.0% year-over-year, while recurring revenue increased 31.2% year-over-year. Specialty Technology Solutions net sales for the second quarter decreased 16.0% year-over-year to $723.3 million primarily due to lower large deals and continued soft demand in a more cautious technology spending environment. Intelisys & Advisory net sales for the second quarter increased 4.0% year-over-year to $24.2 million reflecting the addition of an acquisition.

Gross profit for the second quarter of fiscal year 2025 increased 1.0% year-over-year to $101.7 million with a gross profit margin of 13.6% versus 11.4% in the prior-year quarter. Increased gross profit margin reflects a higher contribution of recurring revenue in our overall revenue mix, which is recorded on a net basis and therefore contributes to a higher gross profit margin. For the second quarter of fiscal year 2025, the percentage of gross profit from recurring revenue increased to 32.4% from 27.1% for the prior-year period.

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For the second quarter of fiscal year 2025, operating income was $18.4 million compared to $26.8 million in the prior-year quarter. Second quarter fiscal year 2025 non-GAAP operating income decreased to $25.9 million from $30.6 million in the prior-year quarter.

On a GAAP basis, net income for the second quarter of fiscal year 2025 totaled $17.1 million, or $0.70 per diluted share, compared to net income of $32.7 million, or $1.29 per diluted share, for the prior-year quarter. Second quarter fiscal year 2025 non-GAAP net income totaled $20.7 million, or $0.85 per diluted share, compared to $21.6 million, or $0.85 per diluted share, for the prior-year quarter. On a non-GAAP basis, adjusted EBITDA for the second quarter of fiscal year 2025 decreased 8.2% to $35.3 million, or 4.72% of net sales, compared to $38.5 million, or 4.35% of net sales, for the prior-year quarter.

Balance Sheet and Cash Flow

As of December 31, 2024, ScanSource had cash and cash equivalents of $110.5 million and total debt of $139.9 million.

For the first six months of fiscal year 2025, ScanSource generated $38.6 million of operating cash flow and $34.3 million of free cash flow (non-GAAP). ScanSource also had share repurchases of $52.3 million for the first six months of fiscal year 2025.

Annual Financial Outlook for Fiscal Year 2025

ScanSource reaffirms previously provided guidance set forth below for the full fiscal year ended June 30, 2025.

FY25 Annual Outlook
Net sales $3.1 billion to $3.5 billion
Adjusted EBITDA (non-GAAP)$140 million to $160 million
Free cash flow (non-GAAP)At least $70 million

Adjusted EBITDA is a non-GAAP measure, which excludes estimates for amortization of intangible assets, depreciation expense, and non-cash shared-based compensation expense. Free cash flow is a non-GAAP measure, which excludes the effect of estimated capital expenditures from estimated operating cash flow. These measures are forward-looking, and actual results may differ materially.

ScanSource believes that a quantitative reconciliation of such forward-looking information to the most directly comparable GAAP financial measures cannot be made without unreasonable efforts, because a reconciliation of these non-GAAP financial measures would require an estimate of future non-operating items such as acquisitions and divestitures, restructuring costs, impairment charges and other unusual or non-recurring items. Neither the timing nor likelihood of these events, nor their probable significance, can be quantified with a reasonable degree of accuracy. Accordingly, a reconciliation of such forward-looking information to the most directly comparable GAAP financial measures is not provided.

Mike Baur Appointed to Additional Role of President

Effective January 27, 2025, ScanSource appointed Chair and Chief Executive Officer Mike Baur to the additional role of President of ScanSource.

Webcast Details and Earnings Infographic
At approximately 8:45 a.m. ET today, an Earnings Infographic, as a supplement to this press release and the earnings conference call, will be available on ScanSource's website, www.scansource.com (Investor Relations section). ScanSource will present additional information about its financial results and business in a conference call today, January 30, 2025, at 10:30 a.m. ET. A webcast of the call will be available for all interested parties and can be accessed at www.scansource.com (Investor Relations section). The webcast will be available for replay for 60 days.

Safe Harbor Statement

This press release contains “forward-looking” statements, including ScanSource's FY25 annual outlook, which involve risks and uncertainties, many of which are beyond ScanSource's control. No undue reliance should be placed on such statements, as any number of factors could cause actual results to differ materially from anticipated or forecasted results, including, but not limited to, the following factors, which are neither presented in order of importance nor weighted: macroeconomic conditions, including potential prolonged economic weakness, inflation, the failure to manage and implement ScanSource's growth
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strategy, the ability for ScanSource to realize the synergies or other benefits from acquisitions, credit risks involving ScanSource's larger customers and suppliers, changes in interest and exchange rates and regulatory regimes impacting ScanSource's international operations, risk to the business from a cyberattack, a failure of IT systems, failure to hire and retain quality employees, loss of ScanSource's major customers, relationships with key suppliers and customers or a termination or a modification of the terms under which it operates with these key suppliers and customers, changes in ScanSource's operating strategy, and other factors set forth in the "Risk Factors" contained in ScanSource's annual report on Form 10-K for the year ended June 30, 2024. Except as may be required by law, ScanSource expressly disclaims any obligation to update these forward-looking statements to reflect events or circumstances after the date of this press release or otherwise.

Non-GAAP Financial Information

In addition to disclosing results that are determined in accordance with United States Generally Accepted Accounting Principles ("GAAP"), ScanSource also discloses certain non-GAAP financial measures, which are summarized below. Non-GAAP financial measures are used to understand and evaluate performance, including comparisons from period to period. Non-GAAP results exclude items such as amortization of intangible assets related to acquisitions, acquisition and divestiture costs, gain on sale of business, and restructuring costs and include other non-GAAP adjustments.

Net sales on a constant currency basis excluding acquisitions and divestitures to calculate organic growth ("non-GAAP net sales"): ScanSource discloses the percentage change in net sales excluding the translation impact from changes in foreign currency exchange rates between reporting periods and excluding the net sales from acquisitions and divestitures prior to the first full year from the transaction date. This measure enhances the comparability between periods to help analyze underlying trends on an organic basis.

Adjusted earnings before interest expense, income taxes, depreciation, and amortization (“Adjusted EBITDA”): Adjusted EBITDA starts with net income and adds back interest expense, income tax expense, depreciation expense, amortization of intangible assets, changes in fair value of contingent considerations, and other non-GAAP adjustments, including acquisition and divestiture costs, gain/loss on sale of business, restructuring costs, cyberattack restoration costs, tax recovery, legal settlement, and non-cash share-based compensation expense. Since Adjusted EBITDA excludes some non-cash costs of investing in ScanSource’s business and people, management believes that Adjusted EBITDA shows the profitability from the business operations more clearly. The Adjusted EBITDA margin is calculated as Adjusted EBITDA as a percentage of net sales.

Adjusted return on invested capital ("Adjusted ROIC"): Adjusted ROIC assists management in comparing ScanSource's performance over various reporting periods on a consistent basis because it removes from operating results the impact of items that do not reflect core operating performance. Management believes the calculation of Adjusted ROIC provides useful information to investors and is an additional relevant comparison of its performance. Adjusted ROIC is calculated as Adjusted EBITDA over invested capital. Invested capital is defined as average equity plus average daily funded interest-bearing debt for the period. Management believes the calculation of Adjusted ROIC provides useful information to investors and is an additional relevant comparison of ScanSource's performance during the year.

Free cash flow: ScanSource presents free cash flow as it is a measure used by management to measure our business. ScanSource believes this measure provides more information regarding liquidity and capital resources. Free cash flow is defined as cash flows from operating activities less capital expenditures.

Net debt: Net debt includes total balance sheet debt less cash and cash equivalents. ScanSource believes this measure is useful in assessing its borrowing capacity.

Additional Non-GAAP Metrics: To evaluate current period performance on a more consistent basis with prior periods, ScanSource discloses non-GAAP SG&A expenses, non-GAAP operating income, non-GAAP pre-tax income, non-GAAP net income, and non-GAAP diluted earnings per share (non-GAAP diluted EPS). These non-GAAP results exclude amortization of intangible assets related to acquisitions, acquisition and divestiture costs, gain on sale of business, restructuring costs, and other non-GAAP adjustments. These metrics include the translation impact of changes in foreign currency exchange rates. Non-GAAP metrics are useful in assessing and understanding ScanSource's performance especially when comparing results with previous periods or forecasting performance for future periods.

These non-GAAP financial measures have limitations as analytical tools, and the non-GAAP financial measures that ScanSource reports may not be comparable to similarly titled amounts reported by other companies. Analysis of results and outlook on a non-GAAP basis should be considered in addition to, and not in substitution for or as superior to, measurements of
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financial performance prepared in accordance with GAAP. A reconciliation of ScanSource's non-GAAP financial information to GAAP is set forth in the Supplementary Information (Unaudited) below.

About ScanSource, Inc.

ScanSource, Inc. (NASDAQ: SCSC) is a leading hybrid distributor connecting devices to the cloud and accelerating growth for channel partners across hardware, software as a service (SaaS), connectivity and cloud. ScanSource enables channel partners to deliver solutions for their end customers to address changing buying and consumption patterns. ScanSource uses multiple sales models to offer hybrid distribution solutions from leading suppliers of specialty technologies, connectivity and cloud. Founded in 1992 and headquartered in Greenville, South Carolina, ScanSource was named one of the 2024 Best Places to Work in South Carolina and on FORTUNE magazine’s 2025 List of World’s Most Admired Companies. ScanSource ranks #776 on the Fortune 1000. For more information, visit www.scansource.com.

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SCANSOURCE REPORTS SECOND QUARTER RESULTS

ScanSource, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands, except share data)
December 31, 2024June 30, 2024*
Assets
Current assets:
Cash and cash equivalents$110,520 $185,460 
Accounts receivable, less allowance of $25,670 at December 31, 2024
and $20,684 at June 30, 2024
549,112 581,523 
Inventories491,978 512,634 
Prepaid expenses and other current assets132,155 125,082 
Total current assets1,283,765 1,404,699 
Property and equipment, net30,152 33,501 
Goodwill227,932 206,301 
Identifiable intangible assets, net72,691 37,634 
Deferred income taxes17,541 19,902 
Other non-current assets70,448 76,995 
Total assets$1,702,529 $1,779,032 
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable$520,408 $587,984 
Accrued expenses and other current liabilities70,985 65,616 
Current portion of contingent consideration2,039 — 
Income taxes payable8,330 7,895 
Current portion of long-term debt7,861 7,857 
Total current liabilities609,623 669,352 
Long-term debt, net of current portion132,038 136,149 
Borrowings under revolving credit facility— 50 
Long-term portion of contingent consideration16,304 — 
Other long-term liabilities43,902 49,226 
Total liabilities801,867 854,777 
Commitments and contingencies
Shareholders’ equity:
Preferred stock, no par value; 3,000,000 shares authorized, none issued
— — 
Common stock, no par value; 45,000,000 shares authorized, 23,612,543 and 24,243,848 shares issued and outstanding at December 31, 2024 and June 30, 2024, respectively
— 26,370 
Retained earnings1,031,934 1,013,738 
Accumulated other comprehensive loss(131,272)(115,853)
Total shareholders’ equity900,662 924,255 
Total liabilities and shareholders’ equity$1,702,529 $1,779,032 
*Derived from audited financial statements.

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SCANSOURCE REPORTS SECOND QUARTER RESULTS
ScanSource, Inc. and Subsidiaries
Condensed Consolidated Income Statements (Unaudited)
(in thousands, except per share data)
 Quarter ended December 31, 2024Six months ended December 31,
 2024202320242023
Net sales$747,497 $884,792 $1,523,077 $1,761,098 
Cost of goods sold645,774 784,044 1,319,735 1,553,842 
Gross profit101,723 100,748 203,342 207,256 
Selling, general and administrative expenses73,920 66,921 145,626 142,356 
Depreciation expense2,902 2,964 5,759 5,759 
Intangible amortization expense5,001 4,037 9,359 8,230 
Restructuring and other charges313 — 5,381 — 
Change in fair value of contingent consideration1,143 — 1,143 — 
Operating income18,444 26,826 36,074 50,911 
Interest expense1,970 3,359 4,078 8,945 
Interest income(2,693)(2,119)(5,352)(3,444)
Loss (gain) on sale of business— (14,533)— (14,533)
Other (income) expense, net(543)73 (5,325)750 
Income before income taxes19,710 40,046 42,673 59,193 
Provision for income taxes2,657 7,320 8,645 11,035 
Net income$17,053 $32,726 $34,028 $48,158 
Per share data:
Net income per common share, basic$0.72 $1.31 $1.42 $1.93 
Weighted-average shares outstanding, basic23,806 25,035 23,976 24,961 
Net income per common share, diluted$0.70 $1.29 $1.39 $1.91 
Weighted-average shares outstanding, diluted24,217 25,334 24,450 25,235 


6
SCANSOURCE REPORTS SECOND QUARTER RESULTS
ScanSource, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in thousands)
Six months ended December 31,
20242023
Cash flows from operating activities:
Net income$34,028 $48,158 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Gain on sale of business— (14,533)
Depreciation and amortization15,603 14,475 
Amortization of debt issue costs193 193 
Provision for doubtful accounts5,925 4,472 
Share-based compensation5,492 5,340 
Deferred income taxes2,306 (1,703)
Change in fair value of contingent consideration1,143 — 
Finance lease interest48 46 
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable21,110 75,579 
Inventories16,316 182,168 
Prepaid expenses and other assets(380)(11,576)
Other non-current assets3,145 3,208 
Accounts payable(64,915)(135,138)
Accrued expenses and other liabilities(1,834)(7,678)
Income taxes payable462 (6,254)
Net cash provided by (used in) operating activities38,642 156,757 
Cash flows from investing activities:
Capital expenditures(4,348)(4,865)
Cash paid for business acquisitions, net of cash acquired(56,673)— 
Proceeds from sale of business, net of cash transferred2,569 17,978 
Net cash provided by (used in) investing activities(58,452)13,113 
Cash flows from financing activities:
Borrowings on revolving credit26,587 1,134,629 
Repayments on revolving credit(26,636)(1,292,729)
Repayments on long-term debt, net(4,107)(3,165)
Borrowings (repayments) on finance lease obligation(547)(442)
Exercise of stock options9,489 4,309 
Taxes paid on settlement of equity awards(4,805)(2,657)
Common stock repurchased(52,342)(1,251)
Net cash (used in) provided by financing activities(52,361)(161,306)
Effect of exchange rate changes on cash and cash equivalents(2,769)245 
Increase in cash and cash equivalents(74,940)8,809 
Cash and cash equivalents at beginning of period185,460 36,178 
Cash and cash equivalents at period end$110,520 $44,987 




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SCANSOURCE REPORTS SECOND QUARTER RESULTS
ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
(in thousands, except percentages)
Non-GAAP Financial Information:
Quarter ended December 31,
20242023
Reconciliation of Net Income to Adjusted EBITDA:
Net income (GAAP)$17,053$32,726
Plus: Interest expense1,9703,359
Plus: Income taxes2,6577,320
Plus: Depreciation and amortization8,1327,258
EBITDA (non-GAAP)29,81250,663
Plus: Change in fair value of contingent consideration1,143— 
Plus: Share-based compensation3,0212,571
Plus: Acquisition and divestiture costs151703
Plus: Cyberattack restoration costs30441
Plus: Restructuring costs313—
Plus: Legal settlement1,579—
Plus: Tax recovery(750)(1,386)
Plus: Gain on sale of business—(14,533)
Adjusted EBITDA (numerator for Adjusted ROIC) (non-GAAP)$35,299$38,459
Invested Capital Calculations:
Equity – beginning of the period$920,893$915,253
Equity – end of the period900,662953,601
Plus: Change in fair value of contingent consideration, net 861—
Plus: Share-based compensation, net2,2711,919
Plus: Acquisition and divestiture costs151703
Plus: Cyberattack restoration costs, net23329
Plus: Restructuring costs, net 236—
Plus: Legal settlement, net1,189—
Plus: Tax recovery, net(2,560)(640)
Plus: Gain on sale of business—(14,533)
Average equity911,863928,316
Average funded debt (a)
142,143227,688
Invested capital (denominator for Adjusted ROIC) (non-GAAP)$1,054,006$1,156,004
Adjusted return on invested capital ratio (Adjusted ROIC), annualized(b)
13.3%13.2%
(a) Average funded debt is calculated as the average daily amounts outstanding on short-term and long-term interest-bearing debt.
(b) The annualized adjusted EBITDA amount is divided by days in the quarter times 365 days per year, or 366 days for leap year. There were 92 days in the current and prior-year quarter.


8
SCANSOURCE REPORTS SECOND QUARTER RESULTS
ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
Net Sales by Segment:
Quarter ended December 31,
20242023% Change
Specialty Technology Solutions:(in thousands)
Net sales, reported$723,277 $861,514 (16.0)%
Foreign exchange impact (a)
10,723 — 
Less: Divestitures— (1,737)
Less: Acquisitions(6,888)— 
Non-GAAP net sales$727,112 $859,777 (15.4)%
Intelisys & Advisory:
Net sales, reported$24,220 $23,278 4.0 %
Foreign exchange impact (a)
(5)— 
Less: Acquisitions(1,685)— 
Non-GAAP net sales$22,530 $23,278 (3.2)%
Consolidated:
Net sales, reported$747,497 $884,792 (15.5)%
Foreign exchange impact (a)
10,718 — 
Less: Divestitures— (1,737)
Less: Acquisitions(8,573)— 
Non-GAAP net sales$749,642 $883,055 (15.1)%
(a) Year-over-year net sales growth rate excluding the translation impact of changes in foreign currency exchange rates. Calculated by translating the net sales for the quarter ended December 31, 2024 into U.S. dollars using the average foreign exchange rates for the quarter ended December 31, 2023.

ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
Net Sales by Revenue Type:
Quarter ended December 31,
20242023% Change
(in thousands)
Revenue by product/service:
Products and services$711,235 $857,154 (17.0)%
Recurring revenue(a)
36,262 27,638 31.2 %
$747,497 $884,792 (15.5)%
(a) Recurring revenue represents primarily agency commissions, SaaS, subscriptions, and hardware rentals.






9
SCANSOURCE REPORTS SECOND QUARTER RESULTS
ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
Net Sales by Geography:
Quarter ended December 31,
20242023% Change
United States and Canada:(in thousands)
Net sales, as reported$687,111 $795,382 (13.6)%
Less: Acquisitions(8,573)— 
Non-GAAP net sales$678,538 $795,382 (14.7)%
Brazil:
Net sales, reported(a)
$60,386 $89,410 (32.5)%
Foreign exchange impact(b)
10,718 — 
Less: Divestitures— (1,737)
Non-GAAP net sales$71,104 $87,673 (18.9)%
Consolidated:
Net sales, reported$747,497 $884,792 (15.5)%
Foreign exchange impact(b)
10,718 — 
Less: Divestitures— (1,737)
Less: Acquisitions(8,573)— 
Non-GAAP net sales$749,642 $883,055 (15.1)%
(a) Countries outside of the United States, Canada and Brazil represent $0.1 million, or 0.2% of sales, for the quarter ended December 31, 2024 and $1.8 million, or 2.0% of sales, for the quarter ended December 31, 2023.
(b) Year-over-year net sales growth rate excluding the translation impact of changes in foreign currency exchange rates. Calculated by translating the net sales for the quarter ended December 31, 2024 into U.S. dollars using the average foreign exchange rates for the quarter ended December 31, 2023.
Free Cash Flow:
Quarter ended December 31,Six months ended December 31,
2024202320242023
GAAP operating cash flow$(6,190)$63,224 $38,642 $156,757 
Less: Capital expenditures(1,974)(2,549)(4,348)(4,865)
Free cash flow (non-GAAP)$(8,164)$60,675 $34,294 $151,892 












10
SCANSOURCE REPORTS SECOND QUARTER RESULTS
ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
(in thousands, except per share data)
Reconciliation of Other Non-GAAP Financial Information:
Quarter ended December 31, 2024
GAAP MeasureIntangible amortization expenseChange in fair value of contingent consideration
Acquisition & divestiture costs (a)
Restructuring costsTax recoveryCyberattack restoration costsLegal SettlementNon-GAAP measure
(in thousands, except per share data)
SG&A expenses$73,920$—$—$(151)$—$750$(30)$(1,579)$72,910
Operating income18,4445,0011,143151313(750)301,57925,911
Pre-tax income19,7105,0011,143151313(750)301,57927,177
Net income17,0533,745861151236(2,560)231,18920,698
Diluted EPS$0.70$0.15$0.04$0.01$0.01$(0.11)$—$0.05$0.85
Quarter ended December 31, 2023
GAAP MeasureIntangible amortization expenseChange in fair value of contingent consideration
Acquisition & divestiture costs (a)
Restructuring costsTax recoveryCyberattack restoration costs
Gain on sale of business (b)
Non-GAAP measure
(in thousands, except per share data)
SG&A expense$66,921$—$—$(703)$—$1,386$(441)$—$67,163
Operating income26,8264,037—703—(1,386)441—30,621
Pre-tax income40,0464,037—703—(1,386)441(14,533)29,308
Net income32,7263,002—703—(640)329(14,533)21,587
Diluted EPS$1.29$0.12$—$0.03$—$(0.03)$0.01$(0.57)$0.85
 
(a) Acquisition and divestiture costs for the quarters ended December 31, 2024 and December 31, 2023 are generally nondeductible for tax purposes.
(b) Reflects gain on the sale of UK-based intY business. This transaction resulted in a capital loss for tax purposes. ScanSource did not record a tax provision on the capital loss since there were no offsetting capital gains.






11
Fiscal Second Quarter 2025 Earnings Key Highlights © ScanSource 2025 Consolidated In a soft demand environment, our team delivered second quarter gross profit growth and a strong gross profit margin. Our recent acquisitions are expanding recurring revenue opportunities for our channel partners.” Mike Baur Chair and CEO, ScanSource, Inc. Q2 Recurring Revenue as % of Gross Profit Increased to 32% Higher Margins Reflect Sales Mix and Recurring Revenue Growth Expanding Recurring Revenue Opportunities for Channel Partners Gross Profit Growth in a Soft Demand Environment Specialty Technology Solutions Segment Intelisys & Advisory Segment Net Sales -15.5% Y/Y $747M Gross Profit +1% Y/Y $102M, 13.6% margin STS, Net Sales -16% Y/Y $723M STS, Gross Profit +0.2% Y/Y $78M, 10.8% margin I&A, Net Sales +4% Y/Y $24M I&A, Gross Profit +3% Y/Y $24M, 98.9% margin

 
* Non-GAAP measure For further financial data, non-GAAP financial disclosures and cautionary language regarding forward-looking statements, please refer to the following pages and ScanSource’s second quarter fiscal year 2025 news release issued on January 30, 2025, which accompanies this presentation and is available at www.scansource.com in the Investor Relations section [click here]. Second Quarter Operating Metrics Mid-Term Goals Mid-term: 3-to-4-year time frame Fiscal Year 2025 Annual Outlook reaffirmed as of January 30, 2025 © ScanSource 2025 2 Net Sales $3.1 billion to $3.5 billion Adjusted EBITDA* $140 million to $160 million Free Cash Flow* At least $70 million Recurring Revenue as % of Gross Profit Adjusted ROIC* Adjusted EBITDA Margin* Net Sales Growth per year Building to 30%+ Mid Teens4.5%-5%5%-7.5% Focus on Working Capital Efficiency Improvements $0.70 per share GAAP Diluted EPS -46% Y/Y $35.3M, -8%Y/Y Adjusted EBITDA* 4.72% Adjusted EBITDA Margin* $39M YTD Operating Cash Flow $34M YTD Free Cash Flow* $0.85 per share Non-GAAP Diluted EPS* Unchanged Y/Y 0.2x Net Debt* to TTM Adjusted EBITDA* 13.3% Adjusted ROIC* $24M in Q2 share repurchases

 
Forward-Looking Statements This Earnings Infographic and supporting materials contain “forward-looking” statements, including ScanSource's FY25 annual outlook and mid-term goals, which involve risks and uncertainties, many of which are beyond ScanSource’s control. No undue reliance should be placed on such statements, as any number of factors could cause actual results to differ materially from anticipated or forecasted results, including, but not limited to, the following factors, which are neither presented in order of importance nor weighted: macroeconomic conditions, including potential prolonged economic weakness, inflation, the failure to manage and implement ScanSource's growth strategy, the ability for ScanSource to realize the synergies or other benefits from acquisitions, credit risks involving ScanSource's larger customers and suppliers, changes in interest and exchange rates and regulatory regimes impacting ScanSource's international operations, risk to the business from a cyberattack, a failure of IT systems, failure to hire and retain quality employees, loss of ScanSource's major customers, relationships with key suppliers and customers or a termination or a modification of the terms under which it operates with these key suppliers and customers, changes in ScanSource's operating strategy, and other factors set forth in the "Risk Factors" contained in ScanSource's annual report on Form 10-K for the year ended June 30, 2024, and subsequent reports on Form 10-Q, filed with the Securities and Exchange Commission. Except as may be required by law, ScanSource expressly disclaims any obligation to update these forward-looking statements to reflect events or circumstances after the date of this Earnings Infographic or otherwise. Non-GAAP Financial Information In addition to disclosing results that are determined in accordance with United States Generally Accepted Accounting Principles (“GAAP”), ScanSource also discloses certain non-GAAP measures, including non-GAAP SG&A expenses, non-GAAP operating income, non-GAAP operating income margin, non-GAAP pre-tax income, non-GAAP net income, non-GAAP diluted EPS, adjusted EBITDA, adjusted EBITDA margin, net debt, adjusted ROIC, free cash flow and net sales in constant currency excluding acquisitions and divestitures (organic growth). A reconciliation of the Company's non-GAAP financial information to GAAP financial information is provided in the following supporting materials and in the Company’s Form 8-K, filed with the SEC, with the quarterly earnings press release for the period indicated. Please see the “Non-GAAP Financial Information” section in the quarterly earnings press release for additional description of ScanSource’s non-GAAP measures. ScanSource discloses forward-looking information that is not presented in accordance with GAAP with respect to adjusted EBITDA, adjusted EBITDA margin, adjusted ROIC, and free cash flow. ScanSource believes that a quantitative reconciliation of such forward-looking information to the most directly comparable GAAP financial measure cannot be made without unreasonable efforts, because a reconciliation of these non-GAAP financial measures would require an estimate of future non-operating items such as acquisitions and divestitures, restructuring costs, impairment charges and other unusual or non-recurring items. Neither the timing nor likelihood of these events, nor their probable significance, can be quantified with a reasonable degree of accuracy. Accordingly, a reconciliation of such forward- looking information to the most directly comparable GAAP financial measure is not provided. 3

 
Consolidated, 5-Quarter Financial Summary ($ in thousands, except per share data) Q2 FY25 Q1 FY25 Q4 FY24 Q3 FY24 Q2 FY24 Q/Q Y/Y Select reported GAAP measures: Net sales $ 747,497 $ 775,580 $ 746,113 $ 752,599 $ 884,792 (4)% (16)% Gross profit $ 101,723 $ 101,619 $ 97,315 $ 94,481 $ 100,748 —% 1% Gross profit margin % 13.6 % 13.1 % 13.0 % 12.6 % 11.4 % 51 bp 222 bp SG&A expenses $ 73,920 $ 71,706 $ 68,498 $ 66,574 $ 66,921 3% 10% Operating income $ 18,444 $ 17,630 $ 21,871 $ 17,542 $ 26,826 5% (31)% Operating income margin % 2.47 % 2.27 % 2.93 % 2.33 % 3.03 % 19 bp (57) bp Net income $ 17,053 $ 16,974 $ 16,097 $ 12,806 $ 32,726 —% (48)% Diluted EPS $ 0.70 $ 0.69 $ 0.64 $ 0.50 $ 1.29 1% (46)% Select reported non-GAAP measures: Non-GAAP operating income $ 25,911 $ 27,509 $ 26,034 $ 25,306 $ 30,621 (6)% (15)% Non-GAAP operating income margin % 3.47 % 3.55 % 3.49 % 3.36 % 3.46 % (8) bp — bp Non-GAAP net income $ 20,698 $ 20,823 $ 19,921 $ 17,461 $ 21,587 (1)% (4)% Non-GAAP diluted EPS $ 0.85 $ 0.84 $ 0.80 $ 0.69 $ 0.85 1% —% Adjusted EBITDA (non-GAAP) $ 35,299 $ 35,666 $ 34,181 $ 33,095 $ 38,459 (1)% (8)% Adjusted EBITDA margin % (non-GAAP) 4.72 % 4.60 % 4.58 % 4.40 % 4.35 % 12 bp 37 bp Adjusted ROIC (non-GAAP) 13.3 % 13.3 % 12.7 % 12.1 % 13.2 % — bp 10 bp Operating cash flow (QTR) $ (6,190) $ 44,830 $ 54,738 $ 160,152 $ 63,224 Less: Capital expenditures (QTR) $ (1,974) $ (2,375) $ (1,270) $ (2,420) $ (2,549) Free cash flow (QTR) (Non-GAAP) $ (8,164) $ 42,455 $ 53,468 $ 157,732 $ 60,675 Operating cash flow (TTM) $ 253,530 $ 322,944 $ 371,647 $ 301,647 $ 196,333 Less: Capital expenditures (TTM) $ (8,039) $ (8,614) $ (8,555) $ (10,715) $ (10,581) Free cash flow (TTM) (Non-GAAP) $ 245,491 $ 314,330 $ 363,092 $ 290,932 $ 185,752 Noted: Margin % reflects measure as a percentage of net sales. ScanSource, Inc. Earnings Infographic Q2 FY2025 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 4 January 30, 2025

 
Specialty Technology Solutions, 5-Quarter Financial Summary ($ in thousands) Q2 FY25 Q1 FY25 Q4 FY24 Q3 FY24 Q2 FY24 Q/Q Y/Y Net sales $ 723,277 $ 752,299 $ 722,251 $ 729,834 $ 861,514 (4)% (16)% Gross profit $ 77,764 $ 78,457 $ 73,562 $ 71,840 $ 77,591 (1)% —% Gross profit margin % 10.8 % 10.4 % 10.2 % 9.8 % 9.0 % 32 bp 175 bp GAAP operating income $ 14,077 $ 16,738 $ 14,764 $ 14,581 $ 19,696 (16)% (29)% GAAP operating income margin % 1.95 % 2.22 % 2.04 % 2.00 % 2.29 % (28) bp (34) bp Add: Intangible amortization expense $ 2,741 $ 2,276 $ 1,817 $ 1,828 $ 2,119 Add: Change in fair value $ 473 $ — $ — $ — $ — Add: Tax recovery(a) $ (750) $ — $ (657) $ (515) $ (1,386) Non-GAAP operating income $ 16,541 $ 19,014 $ 15,924 $ 15,894 $ 20,429 (13)% (19)% Non-GAAP operating income margin % 2.29 % 2.53 % 2.20 % 2.18 % 2.37 % (24) bp (8) bp Reconciliation of Operating Income to Adjusted EBITDA GAAP operating income $ 14,077 $ 16,738 $ 14,764 $ 14,581 $ 19,696 (16)% (29)% Plus: Depreciation expense 3,095 3,069 3,012 2,849 3,181 Intangible amortization expense 2,741 2,276 1,817 1,828 2,119 Interest income 2,430 2,457 3,088 2,458 1,869 Other income/(expense), net 482 (75) (377) (233) 14,202 EBITDA (non-GAAP) 22,825 24,465 22,304 21,483 41,067 (7)% (44)% Adjustments: Share-based compensation expense 2,787 2,286 1,680 2,284 2,431 22% 15% Change in fair value 473 — — — — Tax recovery(a) (750) — (657) (515) (1,386) Loss (gain) on sale of a business — — 378 — (14,533) Adjusted EBITDA (non-GAAP) $ 25,335 $ 26,751 $ 23,705 $ 23,252 $ 27,579 (5)% (8)% Adjusted EBITDA margin % (non-GAAP) 3.50 % 3.56 % 3.28 % 3.19 % 3.20 % (5) bp 30 bp (a) Recovery of prior period withholding taxes in Brazil ScanSource, Inc. Earnings Infographic Q2 FY2025 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 5 January 30, 2025

 
Intelisys & Advisory, 5-Quarter Financial Summary ($ in thousands) Q2 FY25 Q1 FY25 Q4 FY24 Q3 FY24 Q2 FY24 Q/Q Y/Y Net sales $ 24,220 $ 23,281 $ 23,862 $ 22,765 $ 23,278 4% 4% Gross profit $ 23,959 $ 23,162 $ 23,752 $ 22,641 $ 23,157 3% 3% Gross profit margin % 98.9 % 99.5 % 99.5 % 99.5 % 99.5 % (60) bp (60) bp GAAP operating income $ 6,440 $ 6,413 $ 8,184 $ 7,489 $ 8,273 —% (22)% GAAP operating income margin % 26.59 % 27.55 % 34.30 % 32.90 % 35.54 % (96) bp (895) bp Add: Intangible amortization expense $ 2,260 $ 2,082 $ 1,924 $ 1,924 $ 1,918 Add: Change in fair value $ 670 $ — $ — $ — $ — Non-GAAP operating income $ 9,370 $ 8,495 $ 10,108 $ 9,413 $ 10,191 10% (8)% Non-GAAP operating income margin % 38.69 % 36.49 % 42.36 % 41.35 % 43.78 % 220 bp (510) bp Reconciliation of Operating Income to Adjusted EBITDA GAAP operating income $ 6,440 $ 6,413 $ 8,184 $ 7,489 $ 8,273 —% (22)% Plus: Depreciation expense 36 43 38 141 40 Intangible amortization expense 2,260 2,082 1,924 1,924 1,918 Interest income 263 202 197 194 250 Other income/(expense), net 61 (10) 5 (9) 260 EBITDA (non-GAAP) 9,060 8,730 10,348 9,739 10,741 4% (16)% Adjustments: Share-based compensation expense 234 185 128 104 139 Change in fair value 670 — — — — Adjusted EBITDA (non-GAAP) $ 9,964 $ 8,915 $ 10,476 $ 9,843 $ 10,880 12% (8)% Adjusted EBITDA margin % (non-GAAP) 41.14 % 38.29 % 43.90 % 43.24 % 46.74 % 285 bp (560) bp ScanSource, Inc. Earnings Infographic Q2 FY2025 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 6 January 30, 2025

 
Net Sales, Constant Currency Excluding Acquisitions and Divestitures (Organic Growth) - QTR ($ in thousands) Net Sales by Segment: Q2 FY25 Q2 FY24 % Change Specialty Technology Solutions: Net sales, as reported $ 723,277 $ 861,514 (16.0) % Foreign exchange impact (a) 10,723 — Less: Acquisitions (6,888) — Less: Divestitures — (1,737) Non-GAAP net sales $ 727,112 $ 859,777 (15.4) % Intelisys & Advisory: Net sales, as reported $ 24,220 $ 23,278 4.0 % Foreign exchange impact (a) (5) — Less: Acquisitions (1,685) — Non-GAAP net sales $ 22,530 $ 23,278 (3.2) % Consolidated: Net sales, as reported $ 747,497 $ 884,792 (15.5) % Foreign exchange impact (a) 10,718 — Less: Acquisitions (8,573) — Less: Divestitures — (1,737) Non-GAAP net sales $ 749,642 $ 883,055 (15.1) % Net Sales by Geography: Q2 FY25 Q2 FY24 % Change United States and Canada: Net sales, as reported $ 687,111 $ 795,382 (13.6) % Less: Acquisitions (8,573) — Non-GAAP net sales $ 678,538 $ 795,382 (14.7) % Brazil: Net sales, as reported (b) $ 60,386 $ 89,410 (32.5) % Foreign exchange impact (a) 10,718 — Less: Divestitures — (1,737) Non-GAAP net sales $ 71,104 $ 87,673 (18.9) % Consolidated: Net sales, as reported $ 747,497 $ 884,792 (15.5) % Foreign exchange impact (a) 10,718 — Less: Acquisitions (8,573) — Less: Divestitures — (1,737) Non-GAAP net sales $ 749,642 $ 883,055 (15.1) % (a) Year-over-year sales growth excluding the translation impact of changes in foreign currency rates. Calculated by translating net sales for the quarter ended December 31, 2024 into U.S. dollars using the weighted-average foreign exchange rates for the quarter ended December 31, 2023. (b) Countries outside of the United States, Canada and Brazil represent $0.1 million, or 0.2% of sales, for the quarter ended December 31, 2024 and $1.8 million, or 2.0% of sales, for the quarter ended December 31, 2023. ScanSource, Inc. Earnings Infographic Q2 FY2025 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 7 January 30, 2025

 
Average Adjusted Return on Invested Capital - QTR ($ in thousands) Q2 FY25 Q1 FY25 Q4 FY24 Q3 FY24 Q2 FY24 Reconciliation of Net Income to Adjusted EBITDA Net income - GAAP $ 17,053 $ 16,974 $ 16,097 $ 12,806 $ 32,726 Plus: Interest expense 1,970 2,109 2,084 2,001 3,359 Income taxes 2,657 5,988 6,600 5,146 7,320 Depreciation and amortization 8,132 7,471 6,792 6,742 7,258 EBITDA (non-GAAP) 29,812 32,542 31,573 26,695 50,663 Adjustments: Change in fair value of contingent consideration 1,143 — — — — Share-based compensation 3,021 2,471 1,808 2,388 2,571 Tax recovery (a) (750) — (657) (515) (1,386) Acquisition and divestiture costs 151 377 503 511 703 Restructuring costs 313 5,068 435 3,923 — Cyberattack restoration costs 30 76 141 93 441 Insurance recovery, net of payments — (4,868) — — — Loss (gain) on sale of business — — 378 — (14,533) Legal settlement 1,579 — — — — Adjusted EBITDA (numerator for Adjusted ROIC) (non-GAAP) $ 35,299 $ 35,666 $ 34,181 $ 33,095 $ 38,459 Invested Capital Calculation Equity - beginning of quarter $ 920,893 $ 924,254 $ 944,053 $ 953,601 $ 915,253 Equity - end of quarter 900,662 920,893 924,254 944,053 953,601 Adjustments: Change in fair value of contingent consideration, net 861 — — — — Share-based compensation, net 2,271 1,856 1,350 1,784 1,919 Tax recovery, net (2,560) — (278) (1,648) (640) Acquisition and divestiture costs 151 377 503 511 703 Restructuring costs, net 236 3,818 327 2,935 — Cyberattack restoration costs, net 23 57 106 69 329 Insurance recovery, net — (3,667) — — — Loss (gain) on sale of business — — 378 — (14,533) Legal settlement, net 1,189 — — — — Average equity 911,863 923,794 935,347 950,653 928,316 Average funded debt (b) 142,143 144,020 146,121 153,131 227,688 Invested capital (denominator for Adjusted ROIC) (non-GAAP) $ 1,054,006 $ 1,067,814 $ 1,081,468 $ 1,103,784 $ 1,156,004 Adjusted return on invested capital (ROIC), annualized (c) 13.3 % 13.3 % 12.7 % 12.1 % 13.2 % (a) Recovery of prior period withholding taxes in Brazil. (b) Average funded debt is calculated as the daily average amounts outstanding on our short-term and long-term interest-bearing debt. (c) Calculated as net income plus interest expense, income taxes, depreciation and amortization (EBITDA) with other non-GAAP adjustments (Adjusted EBITDA), annualized, divided by invested capital for the period. The annualized Adjusted EBITDA amount is divided by days in the quarter times 365 days per year, or 366 days for a leap year. ScanSource, Inc. Earnings Infographic Q2 FY2025 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 8 January 30, 2025

 
Net Debt and Adjusted EBITDA Metrics ($ in thousands) Q2 FY25 Q1 FY25 Q4 FY24 Q3 FY24 Q2 FY24 Consolidated debt (Q/E) $ 139,899 $ 143,649 $ 144,056 $ 145,881 $ 168,634 Less: Cash and cash equivalents of continuing operations (Q/E) (110,520) (145,044) (185,460) (159,050) (44,987) Net debt (Q/E) (non-GAAP) $ 29,379 $ (1,395) $ (41,404) $ (13,169) $ 123,647 Reconciliation of Net Income to Adjusted EBITDA Net income - GAAP $ 17,053 $ 16,974 $ 16,097 $ 12,806 $ 32,726 Plus: Interest expense 1,970 2,109 2,084 2,001 3,359 Income taxes 2,657 5,988 6,600 5,146 7,320 Depreciation and amortization 8,132 7,471 6,792 6,742 7,258 EBITDA (non-GAAP) 29,812 32,542 31,573 26,695 50,663 Adjustments: Share-based compensation 3,021 2,471 1,808 2,388 2,571 Change in fair value of contingent consideration 1,143 — — — — Tax recovery (a) (750) — (657) (515) (1,386) Acquisition and divestiture costs 151 377 503 511 703 Restructuring costs 313 5,068 435 3,923 — Cyberattack restoration costs 30 76 141 93 441 Insurance recovery, net of payments — (4,868) — — — Loss (gain) on sale of business — — 378 — (14,533) Legal settlement 1,579 — — — — Adjusted EBITDA (non-GAAP) $ 35,299 $ 35,666 $ 34,181 $ 33,095 $ 38,459 Adjusted EBITDA, TTM (non-GAAP) (b) $ 138,241 Net Debt / Adjusted EBITDA, TTM (non-GAAP) 0.2 x (a) Recovery of prior period withholding taxes in Brazil (b) Adjusted EBITDA for the trailing 12-month period ScanSource, Inc. Earnings Infographic Q2 FY2025 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 9 January 30, 2025

 
Working Capital, 5-Quarter Summary ($ in thousands) Q2 FY25 Q1 FY25 Q4 FY24 Q3 FY24 Q2 FY24 Accounts receivable (Q/E) $ 549,112 $ 567,127 $ 581,523 $ 589,847 $ 662,799 Days sales outstanding in receivables 66 66 71 71 68 Inventory (Q/E) $ 491,978 $ 504,078 $ 512,634 $ 529,163 $ 575,137 Inventory turns 5.2 5.3 5.0 4.8 5.1 Accounts payable (Q/E) $ 520,408 $ 578,657 $ 587,984 $ 555,733 $ 540,642 Paid for inventory days* 11.1 4.4 4.2 11.2 15.7 Working capital (Q/E) (AR+INV-AP) $ 520,682 $ 492,548 $ 506,173 $ 563,277 $ 697,294 Cash conversion cycle 77 70 75 82 84 *Paid for inventory days represent Q/E inventory days less Q/E accounts payable days ScanSource, Inc. Earnings Infographic Q2 FY2025 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 10 January 30, 2025

 
Operating Income, Net Income, EPS & Other - QTR ($ in thousands) Quarter ended December 31, 2024 Reported GAAP measure Intangible amortization expense Acquisition & divestiture costs Restructuring costs Change in fair value of contingent consideration Tax recovery, net Cyberattack restoration costs Legal Settlement Non-GAAP measure SG&A expenses $73,920 $— $(151) $— $— $750 $(30) $(1,579) $72,910 Operating income 18,444 5,001 151 313 1,143 (750) 30 1,579 25,911 Pre-tax income 19,710 5,001 151 313 1,143 (750) 30 1,579 27,177 Net income 17,053 3,745 151 236 861 (2,560) 23 1,189 20,698 Diluted EPS $0.70 $0.15 $0.01 $0.01 $0.04 $(0.11) $— $0.05 $0.85 ($ in thousands) Quarter ended September 30, 2024 Reported GAAP measure Intangible amortization expense Acquisition & divestiture costs Restructuring costs Insurance recovery, net Tax recovery, net Cyberattack restoration costs Legal Settlement Non-GAAP measure SG&A expenses $71,706 $— $(377) $— $— $— $(76) $— $71,253 Operating income 17,630 4,358 377 5,068 — — 76 — 27,509 Pre-tax income 22,962 4,358 377 5,068 (4,868) — 76 — 27,973 Net income 16,974 3,264 377 3,818 (3,667) — 57 — 20,823 Diluted EPS $0.69 $0.13 $0.02 $0.15 $(0.15) $— $— $— $0.84 (a) Reflects adjustment to the gain on the sale of the UK-based intY business. ScanSource, Inc. Earnings Infographic Q2 FY2025 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 11 January 30, 2025

 
Operating Income, Net Income, EPS & Other - QTR, continued ($ in thousands) Quarter ended June 30, 2024 Reported GAAP measure Intangible amortization expense Acquisition & divestiture costs Restructuring costs Insurance recovery, net Tax recovery, net Loss (gain) on sale of business(a) Cyberattack restoration costs Non-GAAP measure SG&A expenses $68,498 $— $(503) $(435) $— $657 $— $(141) $68,076 Operating income 21,871 3,741 503 435 — (657) — 141 26,034 Pre-tax income 22,697 3,741 503 435 — (657) 378 141 27,238 Net income 16,097 2,788 503 327 — (278) 378 106 19,921 Diluted EPS $0.64 $0.11 $0.02 $0.01 $— $(0.01) $0.02 $— $0.80 (a) Reflects adjustment to the gain on the sale of the UK-based intY business. ($ in thousands) Quarter ended March 31, 2024 Reported GAAP measure Intangible amortization expense Acquisition & divestiture costs Restructuring costs Insurance recovery, net Tax recovery, net Loss (gain) on sale of business Cyberattack restoration costs Non-GAAP measure SG&A expenses $66,574 $— $(511) $— $— $515 $— $(93) $66,485 Operating income 17,542 3,752 511 3,923 — (515) — 93 25,306 Pre-tax income 17,952 3,752 511 3,923 — (515) — 93 25,716 Net income 12,806 2,788 511 2,935 — (1,648) — 69 17,461 Diluted EPS $0.50 $0.11 $0.02 $0.12 $— $(0.06) $— $— $0.69 ScanSource, Inc. Earnings Infographic Q2 FY2025 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 12 January 30, 2025

 
Operating Income, Net Income, EPS & Other - QTR, continued ($ in thousands) Quarter ended December 31, 2023 Reported GAAP measure Intangible amortization expense Acquisition & divestiture costs Restructuring costs Insurance recovery, net Tax recovery, net Loss (gain) on sale of business(b) Cyberattack restoration costs Non-GAAP measure SG&A expenses $66,921 $— $(703) $— $— $1,386 $— $(441) $67,163 Operating income 26,826 4,037 703 — — (1,386) — 441 30,621 Pre-tax income 40,046 4,037 703 — — (1,386) (14,533) 441 29,308 Net income 32,726 3,002 703 — — (640) (14,533) 329 21,587 Diluted EPS $1.29 $0.12 $0.03 $— $— $(0.03) $(0.57) $0.01 $0.85 (b) Reflects gain on the sale of UK-based intY business. This transaction resulted in a capital loss for tax purposes. ScanSource did not record a tax provision on the capital loss since there were no offsetting capital gains. ScanSource, Inc. Earnings Infographic Q2 FY2025 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 13 January 30, 2025

 
v3.24.4
Cover Page
Jun. 30, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Jan. 30, 2025
Entity Registrant Name ScanSource, Inc.
Entity Incorporation, State or Country Code SC
Entity File Number 00-26926
Entity Tax Identification Number 57-0965380
Entity Address, Address Line One 6 Logue Court
Entity Address, City or Town Greenville
Entity Address, State or Province SC
Entity Address, Postal Zip Code 29615
City Area Code 864
Local Phone Number 288-2432
Title of 12(b) Security Common Stock, no par value
Trading Symbol SCSC
Security Exchange Name NASDAQ
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Entity Central Index Key 0000918965
Amendment Flag false
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