ScanSource, Inc. (NASDAQ:SCSC) saw its stock rise 3.36% in pre-market trading Thursday after reporting fourth-quarter results that exceeded analyst expectations and providing a positive outlook for fiscal 2026.
For the quarter ended June 30, 2025, the Greenville, South Carolina-based technology distributor posted adjusted earnings of $1.02 per share, above the consensus of $0.93. Revenue reached $812.9 million, well above analysts’ $776.21 million estimate and up 8.9% from $746.1 million a year earlier.
Mike Baur, Chair and CEO, highlighted the company’s performance: “We delivered strong free cash flow for our fiscal year and achieved excellent profitability growth across the board. As we enter fiscal 2026, we plan to make strategic investments to accelerate growth and expand margins.”
ScanSource’s Specialty Technology Solutions segment, the core of its business, saw net sales climb 9.2% YoY to $788.7 million, fueled by broad growth across North America. Recurring revenue jumped 30% YoY, including contributions from acquisitions. Adjusted EBITDA rose 13% to $38.6 million, representing 4.75% of net sales, up from 4.58% in the prior year.
Looking forward, the company projected fiscal 2026 revenue between $3.1 billion and $3.3 billion, above the $3.01 billion analyst consensus. Adjusted EBITDA is expected at $150-160 million, with free cash flow of at least $80 million.
For the full fiscal year 2025, ScanSource reported a 6.7% decline in net sales to $3.04 billion, while adjusted EPS rose 15.9% to $3.57.
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