ScanSource (NASDAQ:SCSC) Announces Quarterly Earnings Results, Beats Expectations By $0.03 EPS

ScanSource (NASDAQ:SCSC) released its quarterly earnings data on Thursday. The industrial products company reported $0.94 earnings per share for the quarter, beating analysts’ consensus estimates of $0.91 by $0.03, FiscalAI reports. The business had revenue of $758.59 million during the quarter, compared to analyst estimates of $738.55 million. ScanSource had a net margin of 2.44% and a return on equity of 9.35%. ScanSource’s revenue was up 8.8% compared to the same quarter last year. During the same period last year, the business earned $0.86 EPS.

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

• ScanSource delivered a strong Q3—adjusted EBITDA, EPS, free cash flow and ROIC all increased, with net sales up 9% driven by improved hardware demand (notably networking and security).
• Management launched a new Converged Communications business unit combining Specialty Communications and Intelisys CX to create a unified “One ScanSource” partner experience and dedicated sales resources to drive cross‑sell of cloud recurring revenue and hardware.
• Intelisys & Advisory net sales declined 1% year‑over‑year and executives said new order growth is not accelerating as desired, prompting additional investments and a 6–18 month timeline to see improved results.
• Financial position is strong—$120M cash, net debt leverage roughly 0, $69M free cash flow in the quarter ($119M YTD), $33M of share repurchases this quarter, and raised FY2026 free cash flow guidance to at least $90M.
• Recurring revenue progress continues—approximately 15% of Specialty segment gross profit now comes from recurring offerings (helped by Advantix and DataXoom), supporting the company’s multi‑year goal to grow recurring contributions.

ScanSource Stock Performance

NASDAQ:SCSC traded up $2.61 during mid-day trading on Friday, reaching $45.90. The company’s stock had a trading volume of 395,896 shares, compared to its average volume of 222,256. The company has a current ratio of 1.96, a quick ratio of 1.22 and a debt-to-equity ratio of 0.11. The stock has a market cap of $985.93 million, a P/E ratio of 14.08, a PEG ratio of 0.69 and a beta of 1.28. The firm’s fifty day moving average price is $37.77 and its two-hundred day moving average price is $39.47. ScanSource has a 12-month low of $33.76 and a 12-month high of $46.25.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on SCSC shares. Zacks Research raised shares of ScanSource from a “strong sell” rating to a “hold” rating in a research report on Tuesday, April 7th. Wall Street Zen cut ScanSource from a “buy” rating to a “hold” rating in a research report on Saturday, January 17th. Three equities research analysts have rated the stock with a Hold rating, According to MarketBeat.com, ScanSource has a consensus rating of “Hold” and an average target price of $43.00.

Insider Transactions at ScanSource

In related news, CEO Michael L. Baur sold 3,827 shares of the stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $35.89, for a total transaction of $137,351.03. Following the transaction, the chief executive officer owned 157,512 shares in the company, valued at $5,653,105.68. This represents a 2.37% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Charles Alexander Mathis bought 6,000 shares of the business’s stock in a transaction on Wednesday, February 11th. The stock was bought at an average cost of $35.20 per share, with a total value of $211,200.00. Following the transaction, the director owned 24,793 shares in the company, valued at $872,713.60. This trade represents a 31.93% increase in their position. The disclosure for this purchase is available in the SEC filing. Company insiders own 3.18% of the company’s stock.

Hedge Funds Weigh In On ScanSource

Institutional investors and hedge funds have recently modified their holdings of the company. Wasatch Advisors LP grew its holdings in shares of ScanSource by 34.9% in the third 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 period. Geode Capital Management LLC lifted its holdings in ScanSource by 2.4% in the fourth quarter. Geode Capital Management LLC now owns 562,109 shares of the industrial products company’s stock valued at $21,960,000 after acquiring an additional 13,318 shares during the period. Charles Schwab Investment Management Inc. boosted its position in ScanSource by 18.0% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 538,021 shares of the industrial products company’s stock worth $21,015,000 after purchasing an additional 81,909 shares during the last quarter. Invesco Ltd. grew its stake in shares of ScanSource by 56.5% during the 4th quarter. Invesco Ltd. now owns 439,442 shares of the industrial products company’s stock valued at $17,165,000 after purchasing an additional 158,722 shares during the period. Finally, Jacobs Levy Equity Management Inc. grew its stake in shares of ScanSource by 65.6% during 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 during the period. 97.91% of the stock is currently owned by hedge funds and other institutional investors.

About ScanSource

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.