Tech distributor ScanSource Q1 sales miss estimates on  lower large deals in specialty tech business

ScanSource

06/11/2025 13:38

Overview

ScanSource fiscal Q1 net sales decline 4.6%, missing analyst expectations

Non-GAAP diluted EPS for fiscal Q1 beats consensus, growing 26.2% yr/yr

Gross profit margin improved to 14.5% from 13.1% due to favorable sales mix

Outlook

ScanSource reaffirms FY26 net sales guidance of $3.1 bln to $3.3 bln

Company expects FY26 adjusted EBITDA between $150 mln and $160 mln

ScanSource anticipates FY26 free cash flow of at least $80 mln

Result Drivers

SALES DECLINE - Net sales decreased 4.6% due to lower large deals in Specialty Technology Solutions

GROSS PROFIT MARGIN - Improved to 14.5% from 13.1% due to favorable supplier program recognition and sales mix

ACQUISITION IMPACT - Intelisys & Advisory net sales increased 4.0% due to the addition of an acquisition

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Miss
$739.65 mln
$787.37 mln (3 Analysts)
Q1 Adjusted EPS
Beat
$1.06
$0.93 (4 Analysts)
Q1 Adjusted Net Income
$23.69 mln
Q1 Adjusted EBITDA
$38.59 mln
Q1 Gross Profit
$107.47 mln
Q1 Operating Income
$25.90 mln


Press Release: ID:nBw6ff4yZa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)