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ScanSource (SCSC) to buy MicroAge for $220M after 17% Q4 sales gain

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

ScanSource, Inc. (SCSC) reported strong results for the quarter and fiscal year ended June 30, 2026 and announced a definitive agreement to acquire MicroAge. For Q4 FY26, net sales were $953.1 million, up 17.3% year-over-year, with GAAP net income of $25.6 million and diluted EPS of $1.24, up 40.9%. Q4 non-GAAP diluted EPS was $1.46, up 43.1%, and adjusted EBITDA rose to $46.1 million (4.84% margin). Full-year FY26 net sales reached $3.23 billion, up 6.1%, with GAAP diluted EPS of $3.64 (up 21.3%) and non-GAAP diluted EPS of $4.24 (up 18.8%). Adjusted EBITDA for FY26 was $151.5 million, up 4.8%.

ScanSource generated FY26 operating cash flow of $123.1 million and free cash flow of $113.8 million, repurchasing $97.9 million of stock and ending June 30, 2026 with cash of $88.4 million and total debt of $101.4 million (net debt about $13.0 million). The company agreed to acquire MicroAge for $220.5 million in cash, funded via its credit facility; the deal is expected to be accretive to gross margin, adjusted EBITDA margin, and non-GAAP EPS and to close in the quarter ending September 30, 2026, subject to customary conditions. For FY27, excluding MicroAge, ScanSource guides to net sales growth of 6%–10%, adjusted EBITDA of $158–$165 million, and free cash flow of at least $85 million.

Positive

  • Q4 FY26 net sales grew 17.3% year-over-year to $953.1 million, with full-year FY26 sales up 6.1% to $3.23 billion, showing broad top-line expansion.
  • Q4 FY26 GAAP diluted EPS rose 40.9% to $1.24 and non-GAAP diluted EPS rose 43.1% to $1.46; full-year GAAP EPS increased 21.3% and non-GAAP EPS 18.8%.
  • FY26 adjusted EBITDA increased to $151.5 million and adjusted ROIC reached 14.7%, indicating solid profitability and capital efficiency.
  • FY26 operating cash flow was $123.1 million and free cash flow was $113.8 million, supporting $97.9 million of share repurchases while keeping net debt modest at about $13.0 million.
  • ScanSource agreed to acquire MicroAge for $220.5 million cash; the deal is expected to be accretive to gross margin, adjusted EBITDA margin, and non-GAAP EPS and to add higher-margin IT solutions capabilities.
  • FY27 outlook (excluding MicroAge) targets net sales growth of 6%–10%, adjusted EBITDA of $158–$165 million, and free cash flow of at least $85 million, implying continued growth and strong cash generation.

Negative

  • Brazil revenue declined, with FY26 net sales down 5.6% to $226.6 million and Q4 FY26 net sales down 21.6% year-over-year, or 30.2% on a constant-currency, ex-acquisition basis.

Filing Explained

The acquisition remains unclosed; two escrows protect against purchase-price adjustments and seller indemnification claims if the cash deal closes.

ScanSource has signed, but not completed, the MicroAge acquisition; if it closes, the agreement calls for $220.5 million in cash at closing and separately places $3 million and $6.8 million into escrows for specified post-closing obligations.

Closing remains subject to expiration or termination of the Hart-Scott-Rodino waiting period and certain third-party consents, and the sellers may terminate after 5:00 p.m. Eastern Time on September 1, 2026 if closing has not occurred and they are not in material breach.

The filing assigns the first escrow to purchase-price adjustments and the second to post-closing indemnification claims, so those amounts support contractual protections rather than being stated as additional purchase consideration payable at closing.

Item 1.01 Entry into a Material Definitive Agreement Business
The company signed a significant contract such as a merger agreement, credit facility, or major partnership.
Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Q4 FY26 Net Sales $953,109,000 Quarter ended June 30, 2026; up 17.3% year-over-year
FY26 Net Sales $3,226,062,000 Fiscal year ended June 30, 2026; up 6.1% year-over-year
FY26 GAAP Diluted EPS $3.64 Fiscal year ended June 30, 2026; up 21.3% from $3.00
FY26 Adjusted EBITDA $151,548,000 Non-GAAP adjusted EBITDA for fiscal year 2026; up 4.8%
FY26 Free Cash Flow $113,845,000 Non-GAAP free cash flow for fiscal year ended June 30, 2026
Share Repurchases FY26 $97,900,000 Common stock repurchased during fiscal year 2026
MicroAge Purchase Price $220,500,000 All-cash consideration payable at closing for MicroAge acquisition
FY27 Adjusted EBITDA Outlook $158,000,000 to $165,000,000 Guidance for fiscal year 2027, excluding MicroAge
Adjusted EBITDA financial
"On a non-GAAP basis, adjusted EBITDA for the fourth quarter of fiscal year 2026 increased to 46.1 million"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
free cash flow financial
"For fiscal year 2026, ScanSource generated 123.1 million of operating cash flow and 113.8 million of free cash flow"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
Adjusted ROIC financial
"Adjusted return on invested capital ratio (Adjusted ROIC), annualized (c) 18.2 %"
Adjusted ROIC measures how effectively a company turns the money it has invested in its business into profit, but after removing one-time items and accounting tweaks so the result shows the recurring operating performance. Think of it like checking a car’s fuel efficiency after unloading temporary extra weight: it gives investors a clearer view of the business’s true efficiency and helps compare companies or track whether management is improving returns on the capital used to run and grow the business.
Hart-Scott Rodino Antitrust Improvements Act of 1976 regulatory
"including the expiration or termination of the waiting period under the Hart-Scott Rodino Antitrust Improvements Act of 1976"
A U.S. law that requires companies planning large mergers or acquisitions to notify federal antitrust regulators and observe a waiting period so authorities can review the deal for competition concerns. Think of it like asking a neighborhood committee for permission and time to check before two households combine: the review can delay, modify, or block a transaction, so investors watch HSR filings closely because they affect deal timing, completion risk, and potential value changes.
non-GAAP net income financial
"Fourth quarter fiscal year 2026 non-GAAP net income increased to 30.3 million"
Non-GAAP net income is a company's profit figure that excludes certain costs or income that are included in standard accounting methods. Companies often use it to show what their earnings might look like without one-time expenses or other unusual items, helping investors see the company's core performance more clearly.
Offering Type other

FAQ

How did ScanSource (SCSC) perform financially in Q4 FY2026?
ScanSource delivered strong Q4 FY26 results with net sales of $953.1 million, up 17.3% year-over-year, and GAAP diluted EPS of $1.24, up 40.9%. Non-GAAP diluted EPS rose 43.1% to $1.46, and adjusted EBITDA increased 19.4% to $46.1 million.

What were ScanSource’s full-year FY2026 results?
For FY26, ScanSource reported net sales of $3.23 billion, up 6.1%, and GAAP net income of $78.9 million or $3.64 per diluted share. Non-GAAP net income was $91.9 million or $4.24 per diluted share, and adjusted EBITDA reached $151.5 million.

What are the key details of ScanSource’s acquisition of MicroAge?
ScanSource agreed to acquire MicroAge for $220.5 million in an all-cash transaction, funded through its existing credit facility. The deal is expected to close in the quarter ending September 30, 2026, and to be accretive to gross margin, adjusted EBITDA margin, and non-GAAP EPS in the first year.

What guidance did ScanSource (SCSC) provide for fiscal year 2027?
For FY27, excluding the pending MicroAge acquisition, ScanSource expects net sales growth of 6%–10%, adjusted EBITDA of $158–$165 million, and free cash flow of at least $85 million. This outlook reflects management’s current expectations for continued growth and cash generation.

How strong was ScanSource’s cash flow and balance sheet in FY2026?
ScanSource generated $123.1 million of operating cash flow and $113.8 million of free cash flow in FY26. The company ended June 30, 2026 with $88.4 million in cash, $101.4 million of total debt, and net debt of about $13.0 million.

How did ScanSource’s segments perform in FY2026?
In FY26, Specialty Technology Solutions net sales were $3.12 billion, up 6.2%, while Intelisys & Advisory net sales were $101.1 million, up 3.1%. Both segments delivered gross profit growth, with consolidated gross profit rising 7.0% to $437.4 million.

What is happening with ScanSource’s Brazil business?
ScanSource’s Brazil operations experienced revenue pressure, with FY26 net sales declining 5.6% to $226.6 million. In Q4 FY26, Brazil net sales fell 21.6% year-over-year, or 30.2% on a constant-currency, ex-acquisition basis, contrasting with strong U.S. growth.

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Understanding 8-K Material Events →
8/19/20260000918965false00009189652026-08-192026-08-19

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): August 19, 2026

 ScanSource, Inc.
(Exact name of registrant as specified in its charter)
SC00-2692657-0965380
(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 1.01. Entry into a Material Definitive Agreement

Stock Purchase Agreement

On August 19, 2026, ScanSource, Inc. (the “Company”) entered into a stock purchase agreement (the “MicroAge Purchase Agreement”), by and among the Company, MicroAge Acquisition Corp. (“MicroAge”), the shareholders of MicroAge, as sellers (each a “Seller” and, collectively, the “Sellers”), and MAAC Group, as seller representative (the “Seller Representative”), pursuant to which the Company agreed to acquire all of the issued and outstanding capital stock of MicroAge (the “Acquisition”). MicroAge is a technology provider offering solutions in managed cloud, data center, cybersecurity, IT, help desk and other similar technologies.

Subject to customary post-closing working capital and other adjustments, the purchase price consists of $220.5 million to be paid in cash at closing. $3 million and $6.8 million will be held in escrow to support the post-closing obligations of the Sellers to satisfy any purchase price adjustments and cover any post-closing indemnification claims, respectively.

The MicroAge Purchase Agreement contains customary representations and warranties and covenants from the Sellers for a transaction of this type. The Sellers have agreed to indemnify the Company against certain liabilities, subject to amount limits and other exceptions. The Sellers also have agreed to certain post-closing covenants relating to the confidentiality and employee non-solicitation obligations of certain Sellers, and the agreement of each Seller not to compete with certain aspects of the business of MicroAge following the closing of the transaction.

The Acquisition is expected to close in September 2026 following the satisfaction of, and subject to, customary conditions, including the expiration or termination of the waiting period under the Hart-Scott Rodino Antitrust Improvements Act of 1976, as amended, and the receipt of certain third-party consents.

The MicroAge Purchase Agreement may be terminated (i) by mutual written consent of the Company and the Seller Representative, (ii) by the Seller Representative after 5:00 p.m. EST on September 1, 2026 if the closing has not occurred and the Sellers are not in material breach of the MicroAge Purchase Agreement, (iii) by either the Company or the Seller Representative in the event of a material breach by the Sellers or the Company, respectively, of the MicroAge Purchase Agreement or (iv) by any final non-appealable order prohibiting consummation of the Acquisition.

The foregoing description is qualified by reference to the MicroAge Purchase Agreement, which is filed as Exhibit 2.1 to this Current Report on Form 8-K and incorporated herein by reference.

The MicroAge Purchase Agreement and the foregoing description of the MicroAge Purchase Agreement has been included to provide investors and shareholders with information regarding the terms of the MicroAge Purchase Agreement. It is not intended to provide any other factual information about the Company or any of its subsidiaries. The representations, warranties and covenants contained in the MicroAge Purchase Agreement were made by the parties thereto only for purposes of the MicroAge Purchase Agreement and as of specific dates; were made solely for the benefit of the parties to the MicroAge Purchase Agreement; may be subject to limitations agreed upon by the contracting parties, including being qualified by confidential disclosures exchanged between the parties in connection with the execution of the MicroAge Purchase Agreement (such disclosures include information that has been included in the Company’s public disclosures, as well as additional non-public information); may have been made for the purposes of allocating contractual risk between the parties to the MicroAge Purchase Agreement instead of establishing these matters as facts; and may be subject to standards of materiality applicable to the contracting parties that differ from those applicable to investors and reports and documents filed with the Securities and Exchange Commission. Accordingly, investors should not rely on the representations, warranties and covenants or any descriptions thereof as characterizations of the actual state of facts or condition of the Company or any of its subsidiaries. Additionally, the representations, warranties, covenants, conditions and other terms of the MicroAge Purchase Agreement may be subject to subsequent waiver or modification. Moreover, information concerning the subject matter of the representations, warranties, covenants, conditions and other terms may change after the date of the MicroAge Purchase Agreement, which subsequent information may or may not be fully reflected in the Company’s public disclosures.

Forward-Looking Statements

This report contains, or may be deemed to contain, “forward-looking statements” (as defined in the U.S. Private Securities Litigation Reform Act of 1995, as amended). In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “could,” “should,” “forecasts,” “expects,” “intends,” “plans,” “anticipates,” “projects,” “outlook,” “believes,”


“estimates,” “predicts,” “potential,” “continue,” “preliminary,” or the negative of these terms or other comparable terminology. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it can give you no assurance these expectations will prove to have been correct. These forward-looking statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to differ materially from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. These risks and other factors include the risks and uncertainties inherent in the transactions contemplated by the MicroAge Purchase Agreement and in the Company’s business, including, without limitation: the occurrence of any event, change or other circumstances that could give rise to the termination of the MicroAge Purchase Agreement; the risk that the conditions to the closing are not satisfied; and the risk that the Acquisition will not be consummated within the expected time period or at all. Other important factors that could cause actual results to differ materially from the Company’s expectations are set forth under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2026. In light of these risks, uncertainties, and other factors, the forward-looking statements might not prove to be accurate and you should not place undue reliance upon them. All forward-looking statements speak only as of the date made and the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.


Item 2.02. Results of Operations and Financial Condition

On August 20, 2026, ScanSource, Inc. (the "Company") issued a press release announcing its financial results for its fourth quarter and fiscal year ended June 30, 2026. A copy of the press release and accompanying Earnings Infographic are attached as Exhibits 99.1 and 99.2 hereto, 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 (the “Securities Act”), or the Exchange Act.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits
Exhibit
Number		Description
2.1
Stock Purchase Agreement by and among ScanSource, Inc., MicroAge Acquisition Corp., the shareholders thereof and MAAC Group, LLC dated as of August 19, 2026
99.1
Press release
99.2
Earnings Infographic
99.3
Press release
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:August 20, 2026/s/ STEVE JONES
Steve Jones
Senior Executive Vice President and Chief Financial Officer


Exhibit 99.1

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

SCANSOURCE DELIVERS STRONG FOURTH QUARTER AND FULL-YEAR RESULTS
Hardware Demand Drove 17% Net Sales Growth for Q4
Announces Agreement to Acquire MicroAge, a Leading IT Solutions Integrator
GREENVILLE, SC -- August 20, 2026 -- ScanSource, Inc. (NASDAQ: SCSC), a leading technology distributor uniquely positioned to address complex technologies, today announced financial results for the fourth quarter and fiscal year ended June 30, 2026.

Fourth Quarter SummaryFiscal Year Summary
Q4 FY26Q4 FY25ChangeFY26FY25Change
(in thousands, except percentages and per share data)
Select reported measures:
Net sales$953,109 $812,886 17.3%$3,226,062 $3,040,810 6.1%
Gross profit$119,849 $105,102 14.0%$437,355 $408,646 7.0%
Gross profit margin %12.6 %12.9 %-35bp13.6 %13.4 %20bp
Operating income$31,737 $26,787 18.5%$98,627 $85,200 15.8%
GAAP net income$25,618 $20,089 27.5%$78,873 $71,548 10.2%
GAAP diluted EPS$1.24 $0.88 40.9%$3.64 $3.00 21.3%
Select Non-GAAP measures*:
Adjusted EBITDA$46,148 $38,639 19.4%$151,548 $144,660 4.8%
Adjusted EBITDA margin %4.84 %4.75 %9bp4.70 %4.76 %-6bp
Non-GAAP net income$30,280 $23,322 29.8%$91,945 $85,144 8.0%
Non-GAAP diluted EPS$1.46 $1.02 43.1%$4.24 $3.57 18.8%
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.

“I’m proud of our team’s excellent fourth quarter performance, with 17% sales growth and even stronger EPS growth,” said Mike Baur, Chair and CEO, ScanSource, Inc. “We're also excited about our agreement to acquire MicroAge, which we believe will accelerate growth, expand margins, and adds new services capabilities.”

Quarterly Results

Net sales for the fourth quarter of fiscal year 2026 totaled $953.1 million, an increase of 17.3% year-over-year, or an increase of 16.2% on a non-GAAP basis. Net sales for products and services increased 17.4% year-over-year, and recurring revenue increased 13.5% year-over-year including acquisitions. For Specialty Technology Solutions, fourth quarter net sales of $927.2 million increased 17.6% year-over-year, driven by broad-based growth in North America. Intelisys & Advisory net sales for the fourth quarter increased 7.2% year-over-year to $25.9 million primarily from higher Resourcive sales.

Gross profit for the fourth quarter of fiscal year 2026 increased 14.0% year-over-year to $119.8 million, with a gross profit margin of 12.6% versus 12.9% in the prior-year quarter. For the fourth quarter of fiscal year 2026, the percentage of gross profit from recurring revenue totaled 31.5% comparable to 31.6% for the prior-year period.

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For the fourth quarter of fiscal year 2026, operating income increased to $31.7 million from $26.8 million in the prior-year quarter. Fourth quarter fiscal year 2026 non-GAAP operating income increased to $37.9 million from $31.3 million in the prior-year quarter.

On a GAAP basis, net income for the fourth quarter of fiscal year 2026 increased to $25.6 million, or $1.24 per diluted share, from net income of $20.1 million, or $0.88 per diluted share, for the prior-year quarter. Fourth quarter fiscal year 2026 non-GAAP net income increased to $30.3 million, or $1.46 per diluted share, from $23.3 million, or $1.02 per diluted share, for the prior-year quarter. On a non-GAAP basis, adjusted EBITDA for the fourth quarter of fiscal year 2026 increased to $46.1 million, or 4.84% of net sales, from $38.6 million, or 4.75% of net sales, for the prior-year quarter.

Full-Year Results

For fiscal year 2026, net sales increased 6.1% to $3.23 billion. Net sales for products and services increased 5.9% year-over-year, while recurring revenue increased 10.6% year-over-year including acquisitions. For Specialty Technology Solutions, fiscal year net sales of $3.12 billion increased 6.2% year-over-year, primarily due to growth across most technologies in North America. Intelisys & Advisory net sales for the fiscal year 2026 increased 3.1% year-over-year to $101.1 million reflecting higher Intelisys sales and full-year results for the Resourcive acquisition.

Gross profit for fiscal year 2026 increased 7.0% year-over-year to $437.4 million with a gross profit margin of 13.6%, up from 13.4% in the prior year. The higher gross profit margin reflects a higher contribution of recurring revenue, which is netted-down revenue, in our overall revenue mix and higher vendor program recognition. For fiscal year 2026, the percentage of gross profit from recurring revenue increased to 33.7% from 32.8% for the prior year.

For the fiscal year ended June 30, 2026, operating income increased to $98.6 million from $85.2 million in the prior year. Fiscal year 2026 non-GAAP operating income increased to $119.7 million from $111.3 million in the prior year.

On a GAAP basis, net income for the fiscal year 2026 increased to $78.9 million, or $3.64 per diluted share, compared to net income of $71.5 million, or $3.00 per diluted share, for the prior year. Fiscal year 2026 non-GAAP net income increased to $91.9 million, or $4.24 per diluted share, from $85.1 million, or $3.57 per diluted share, for the prior year. On a non-GAAP basis, adjusted EBITDA for the fiscal year 2026 increased 4.8% to $151.5 million, or 4.70% of net sales, from $144.7 million, or 4.76% of net sales, for the prior year.

Balance Sheet and Cash Flow

As of June 30, 2026, ScanSource had cash and cash equivalents of $88.4 million and total debt of $101.4 million.

For fiscal year 2026, ScanSource generated $123.1 million of operating cash flow and $113.8 million of free cash flow (non-GAAP). ScanSource also had share repurchases of $97.9 million for fiscal year 2026.

Agreement to Acquire MicroAge

In a separate press release issued today, ScanSource announced an agreement to acquire MicroAge, a leading IT solutions integrator, managed services provider (MSP), and digital transformation partner, helping businesses design, implement, secure, manage, and optimize their IT environments. The acquisition is expected to add higher-margin technology solutions capabilities and expand ScanSource’s reach in strategic growth technologies, including cloud, cybersecurity, data center and AI. MicroAge serves a diversified U.S. client base of approximately 2,400 clients and has more than 200 employees. Under the agreement, ScanSource will acquire MicroAge in an all-cash transaction for a purchase price of $220.5 million, payable at closing. The transaction is expected to close in the quarter ending September 30, 2026, subject to regulatory approval and other customary closing conditions.

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Annual Financial Outlook for Fiscal Year 2027

The following guidance is based on ScanSource’s current expectations for the full fiscal year ended June 30, 2027. Fiscal year 2027 guidance excludes the pending acquisition of MicroAge and related purchase accounting impacts.

FY27 Annual Outlook
Net sales growth, Y/Y6% to 10%
Adjusted EBITDA (non-GAAP)$158 million to $165 million
Free cash flow (non-GAAP)At least $85 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.

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, August 20, 2026, 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 FY27 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, tariffs and changes in trade policy, 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 channel sales partners and suppliers, changes in interest and exchange rates and regulatory regimes impacting ScanSource's international operations, including new or increased tariffs, risk to the business from a cyberattack, a failure of IT systems, failure to hire and retain quality employees, loss of ScanSource's major channel sales partners, relationships with key suppliers and channel sales partners or a termination or a modification of the terms under which it operates with these key suppliers and channel sales partners, 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, 2026. 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/loss 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
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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, change in fair value of contingent consideration, and other non-GAAP adjustments, including acquisition and divestiture costs, restructuring costs, cyberattack restoration costs, tax recovery, 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 net cash provided by 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, change in fair value of contingent consideration, acquisition and divestiture costs, 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 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 technology distributor uniquely positioned to address complex technologies and to accelerate growth for channel sales partners across hardware, software as a service (SaaS), connectivity and cloud services. ScanSource enables channel sales partners to deliver converging solutions for their end users. ScanSource uses multiple sales models to offer technology solutions from leading suppliers of specialty technologies, connectivity and cloud services. Founded in 1992 and headquartered in Greenville, South Carolina, ScanSource was named one of the 2025 Best Places to Work in South Carolina and on the Fortune World’s Most Admired Companies 2026 list. ScanSource ranks #923 on the Fortune 1000. For more information, visit www.scansource.com.

4
SCANSOURCE DELIVERS STRONG FOURTH QUARTER AND FULL-YEAR RESULTS

ScanSource, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands, except share data)
June 30, 2026 *June 30, 2025 *
Assets
Current assets:
Cash and cash equivalents$88,374 $126,157 
Accounts receivable, less allowance of $26,568 at June 30, 2026
and $27,821 at June 30, 2025
769,750 635,521 
Inventories522,350 483,815 
Prepaid income tax expense10,704 2,821 
Prepaid expenses and other current assets116,816 122,138 
Total current assets1,507,994 1,370,452 
Property and equipment, net34,856 31,169 
Goodwill244,902 230,820 
Identifiable intangible assets, net64,391 62,909 
Deferred income taxes10,590 18,769 
Other non-current assets69,696 71,487 
Total assets$1,932,429 $1,785,606 
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable$753,275 $598,595 
Accrued expenses and other current liabilities86,538 71,263 
Current portion of contingent consideration15,988 1,318 
Income taxes payable474 3,927 
Current portion of long-term debt2,866 7,861 
Total current liabilities859,141 682,964 
Long-term debt, net of current portion98,547 128,288 
Long-term portion of contingent consideration12,162 17,782 
Other long-term liabilities51,787 50,163 
Total liabilities1,021,637 879,197 
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, 20,161,911 and 22,217,421 shares issued and outstanding at June 30, 2026 and June 30, 2025, respectively
— — 
Retained earnings1,018,144 1,020,833 
Accumulated other comprehensive loss(107,352)(114,424)
Total shareholders’ equity910,792 906,409 
Total liabilities and shareholders’ equity$1,932,429 $1,785,606 
*Derived from audited financial statements.

5
SCANSOURCE DELIVERS STRONG FOURTH QUARTER AND FULL-YEAR RESULTS
ScanSource, Inc. and Subsidiaries
Condensed Consolidated Income Statements (Unaudited)
(in thousands, except per share data)
Quarter ended June 30,Fiscal Year Ended June 30,
202620252026 *2025 *
Net sales$953,109 $812,886 $3,226,062 $3,040,810 
Cost of goods sold833,260 707,784 2,788,707 2,632,164 
Gross profit119,849 105,102 437,355 408,646 
Selling, general and administrative expenses81,722 71,610 313,176 286,934 
Depreciation expense1,483 1,925 5,992 10,004 
Intangible amortization expense4,031 4,927 16,721 19,227 
Restructuring and other charges1,766 — 1,766 5,381 
Change in fair value of contingent consideration(890)(147)1,073 1,900 
Operating income31,737 26,787 98,627 85,200 
Interest expense1,430 2,099 6,593 8,013 
Interest income(3,270)(3,054)(12,264)(11,247)
Other expense (income), net303 245 555 (5,962)
Income before income taxes33,274 27,497 103,743 94,396 
Provision for income taxes7,656 7,408 24,870 22,848 
Net income$25,618 $20,089 $78,873 $71,548 
Per share data:
Net income per common share, basic$1.26 $0.89 $3.69 $3.05 
Weighted-average shares outstanding, basic20,334 22,526 21,384 23,442 
Net income per common share, diluted$1.24 $0.88 $3.64 $3.00 
Weighted-average shares outstanding, diluted20,710 22,858 21,692 23,839 
*Derived from audited financial statements.


6
SCANSOURCE DELIVERS STRONG FOURTH QUARTER AND FULL-YEAR RESULTS
ScanSource, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in thousands)
Fiscal Year Ended June 30,
2026 *2025 *
Cash flows from operating activities:
Net income$78,873 $71,548 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization23,633 30,195 
Amortization of debt issue costs615 386 
Provision for doubtful accounts5,956 8,351 
Share-based compensation14,063 11,062 
Deferred income taxes4,565 1,128 
Change in fair value of contingent consideration1,073 1,900 
Finance lease interest49 86 
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable(133,226)(55,011)
Inventories(36,659)28,874 
Prepaid expenses and other assets(1,884)7,303 
Other non-current assets2,864 3,974 
Accounts payable150,881 3,673 
Accrued expenses and other liabilities15,749 2,846 
Income taxes payable(3,421)(3,966)
Net cash provided by operating activities123,131 112,349 
Cash flows from investing activities:
Capital expenditures(9,286)(8,286)
Cash paid for business acquisitions, net of cash acquired(18,220)(56,673)
Proceeds from sale of business, net of cash transferred— 2,569 
Net cash used in investing activities(27,506)(62,390)
Cash flows from financing activities:
Borrowings on revolving credit293,264 51,954 
Repayments on revolving credit(293,266)(52,004)
Borrowings on long-term debt100,000 — 
Repayments on long-term debt(134,736)(7,857)
Repayments on finance lease obligation(998)(1,090)
Debt issuance costs(1,394)— 
Contingent consideration payments(1,375)— 
Exercise of stock options4,959 9,511 
Taxes paid on settlement of equity awards(3,032)(4,895)
Common stock repurchased(97,900)(106,524)
Net cash used in financing activities(134,478)(110,905)
Effect of exchange rate changes on cash and cash equivalents1,070 1,643 
Decrease in cash and cash equivalents(37,783)(59,303)
Cash and cash equivalents at beginning of period126,157 185,460 
Cash and cash equivalents at period end$88,374 $126,157 
*Derived from audited financial statements.

7
SCANSOURCE DELIVERS STRONG FOURTH QUARTER AND FULL-YEAR RESULTS

ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
(in thousands, except percentages)
Non-GAAP Financial Information:
Quarter ended June 30,Fiscal year ended June 30,
2026202520262025
Reconciliation of Net Income to Adjusted EBITDA:
Net income (GAAP)$25,618$20,089$78,873$71,548
Plus: Interest expense1,4302,0996,5938,013
Plus: Income taxes7,6567,40824,87022,848
Plus: Depreciation and amortization5,7827,10123,63330,195
EBITDA (non-GAAP)40,48636,697133,969132,604
Plus: Change in fair value of contingent consideration(890)(147)1,0731,900
Plus: Share-based compensation3,5722,67314,06311,062
Plus: Acquisition costs (a)
2701911,264926
Plus: Cyberattack restoration costs23—119177
Plus: Restructuring costs1,766—1,7665,381
Plus: Legal settlement921—9211,579
Plus: Tax recovery—(470)(789)(3,041)
Plus: Insurance recovery, net of payments—(305)(838)(5,928)
Adjusted EBITDA (numerator for Adjusted ROIC) (non-GAAP)$46,148$38,639$151,548$144,660
Invested Capital Calculations:
Equity – beginning of the period$906,261$901,746$906,409$924,255
Equity – end of the period910,792906,393910,792906,409
Plus: Change in fair value of contingent consideration, net (668)(110)8061,432
Plus: Share-based compensation, net2,6742,00710,5308,310
Plus: Acquisition costs (a)
2701911,265926
Plus: Cyberattack restoration costs, net17—89133
Plus: Restructuring costs, net 1,326—1,3264,054
Plus: Insurance recovery, net—(229)(629)(4,466)
Plus: Legal settlement, net691—6911,189
Plus: Tax recovery, net—(310)(2,991)(4,072)
Average equity910,682904,844914,144919,085
Average funded debt (b)
106,622138,270119,729141,173
Invested capital (denominator for Adjusted ROIC) (non-GAAP)$1,017,304$1,043,114$1,033,873$1,060,258
Adjusted return on invested capital ratio (Adjusted ROIC), annualized (c)
18.2 %14.9 %14.7 %13.6 %
(a) Acquisition costs are generally non-deductible for tax purposes.
(b) Average funded debt is calculated as the average daily amounts outstanding on short-term and long-term interest-bearing debt.
(c) 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 91 days each in the current quarter and prior-year quarter.

8
SCANSOURCE DELIVERS STRONG FOURTH QUARTER AND FULL-YEAR RESULTS

ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
Net Sales by Segment:
Quarter ended June 30,
20262025% Change
Specialty Technology Solutions:(in thousands)
Net sales, reported$927,179 $788,708 17.6 %
Foreign exchange impact (a)
(5,849)— 
Less: Acquisitions(2,396)— 
Non-GAAP net sales$918,934 $788,708 16.5 %
Intelisys & Advisory:
Net sales, reported$25,930 $24,178 7.2 %
Consolidated:
Net sales, reported$953,109 $812,886 17.3 %
Foreign exchange impact (a)
(5,849)— 
Less: Acquisitions(2,396)— 
Non-GAAP net sales$944,864 $812,886 16.2 %
(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 June 30, 2026 into U.S. dollars using the average foreign exchange rates for the quarter ended June 30, 2025.

Net Sales by Segment:
Fiscal year ended June 30,
20262025% Change
Specialty Technology Solutions:(in thousands)
Net sales, reported$3,124,932 $2,942,717 6.2 %
Foreign exchange impact (a)
(17,025)— 
Less: Acquisitions(14,119)(3,512)
Non-GAAP net sales$3,093,788 $2,939,205 5.3 %
Intelisys & Advisory:
Net sales, reported$101,130 $98,093 3.1 %
Less: Acquisitions(1,336)(577)
Non-GAAP net sales$99,794 $97,516 2.3 %
Consolidated:
Net sales, reported$3,226,062 $3,040,810 6.1 %
Foreign exchange impact (a)
(17,025)— 
Less: Acquisitions(15,455)(4,089)
Non-GAAP net sales$3,193,582 $3,036,721 5.2 %
(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 twelve months ended June 30, 2026 into U.S. dollars using the average foreign exchange rates for the twelve months ended June 30, 2025.

9
SCANSOURCE DELIVERS STRONG FOURTH QUARTER AND FULL-YEAR RESULTS

ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
Net Sales by Geography:
Quarter ended June 30,
20262025% Change
United States:(in thousands)
Net sales, reported (a)
$899,594 $744,644 20.8 %
Less: Acquisitions(2,396)— 
Non-GAAP net sales$897,198 $744,644 20.5 %
Brazil:
Net sales, reported (b)
$53,515 $68,242 (21.6)%
Foreign exchange impact (c)
(5,849)— 
Non-GAAP net sales$47,666 $68,242 (30.2)%
Consolidated:
Net sales, reported $953,109 $812,886 17.3 %
Foreign exchange impact (c)
(5,849)— 
Less: Acquisitions(2,396)— 
Non-GAAP net sales$944,864 $812,886 16.2 %
(a) Includes net sales in Canada that are supported by U.S. operations and represent less than 5% of United States net sales for the quarters ended June 30, 2026 and 2025.
(b) Includes net sales from outside of the United States, Canada and Brazil, which represent less than 0.1% of Brazil net sales for the quarters ended June 30, 2026 and 2025.
(c) 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 June 30, 2026 into U.S. dollars using the average foreign exchange rates for the quarter ended June 30, 2025.
10
SCANSOURCE DELIVERS STRONG FOURTH QUARTER AND FULL-YEAR RESULTS
ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
Net Sales by Geography:
Fiscal year ended June 30,
20262025% Change
United States:(in thousands)
Net sales, reported (a)
$2,999,458 $2,800,739 7.1 %
Less: Acquisitions(15,455)(4,089)
Non-GAAP net sales, excluding acquisitions$2,984,003 $2,796,650 6.7 %
Brazil:
Net sales, reported (b)
$226,604 $240,071 (5.6)%
Foreign exchange impact (b)
(17,025)— 
Non-GAAP net sales$209,579 $240,071 (12.7)%
Consolidated:
Net sales, reported$3,226,062 $3,040,810 6.1 %
Foreign exchange impact (c)
(17,025)— 
Less: Acquisitions(15,455)(4,089)
Non-GAAP net sales$3,193,582 $3,036,721 5.2 %
(a) Includes net sales in Canada that are supported by U.S. operations and represent less than 5% of United Sates sales for the fiscal years ended June 30, 2026 and 2025.
(b) Includes net sales from outside of the United States, Canada and Brazil, which represent less than 0.1% of Brazil net sales for the fiscal years ended June 30, 2026 and 2025.
(c) 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 fiscal year ended June 30, 2026 into U.S. dollars using the average foreign exchange rates for the fiscal year ended June 30, 2025.

Free Cash Flow:
Quarter ended June 30,Fiscal year ended June 30,
2026202520262025
GAAP operating cash flow$(2,272)$7,644 $123,131 $112,349 
Less: Capital expenditures(2,517)(2,518)(9,286)(8,286)
Free cash flow (non-GAAP)$(4,789)$5,126 $113,845 $104,063 















11
SCANSOURCE DELIVERS STRONG FOURTH QUARTER AND FULL-YEAR RESULTS

ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
Net Sales by Revenue Type:
Quarter ended June 30,
20262025% Change
(in thousands)
Net sales by product/service:
Products and services$911,640 $776,349 17.4 %
Recurring revenue(a)
41,469 36,537 13.5 %
$953,109 $812,886 17.3 %
Fiscal year ended June 30,
20262025% Change
(in thousands)
Net sales by product/service:
Products and services$3,064,853 $2,895,110 5.9 %
Recurring revenue(a)
161,209 145,700 10.6 %
$3,226,062 $3,040,810 6.1 %
(a) Recurring revenue represents primarily agency commissions, managed connectivity, SaaS, subscriptions, and hardware rentals.
12
SCANSOURCE DELIVERS STRONG FOURTH QUARTER AND FULL-YEAR RESULTS
ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
(in thousands, except per share data)
Reconciliation of Other Non-GAAP Financial Information:
Quarter ended June 30, 2026
GAAP MeasureIntangible amortization expenseChange in fair value of contingent consideration
Acquisition costs (a)
Restructuring costsTax recoveryCyberattack restoration costsLegal settlementInsurance recoveryNon-GAAP measure
(in thousands, except per share data)
SG&A expenses$81,722 $— $— $(270)$— $— $(23)$(921)$— $80,508 
Operating income31,737 4,031 (890)270 1,766 — 23 921 — 37,858 
Pre-tax income33,274 4,031 (890)270 1,766 — 23 921 — 39,395 
Net income25,618 3,026 (668)270 1,326 — 17 691 — 30,280 
Diluted EPS$1.24 $0.15 $(0.03)$0.01 $0.06 $— $— $0.03 $— $1.46 
Quarter ended June 30, 2025
GAAP MeasureIntangible amortization expenseChange in fair value of contingent consideration
Acquisition costs (a)
Restructuring costsTax recoveryCyberattack restoration costsLegal settlementInsurance recoveryNon-GAAP measure
(in thousands, except per share data)
SG&A expense$71,610 $— $— $(191)$— $470 $— $— $— $71,889 
Operating income26,787 4,927 (147)191 — (470)— — — 31,288 
Pre-tax income27,497 4,927 (147)191 — (470)— — (305)31,693 
Net income20,089 3,691 (110)191 — (310)— — (229)23,322 
Diluted EPS$0.88 $0.16 $— $0.01 $— $(0.01)$— $— $(0.01)$1.02 
(a) Acquisition costs are generally nondeductible for tax purposes.









13
SCANSOURCE DELIVERS STRONG FOURTH QUARTER AND FULL-YEAR RESULTS
ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
(in thousands, except per share data)
Reconciliation of Other Non-GAAP Financial Information:
Year ended June 30, 2026
GAAP MeasureIntangible amortization expenseChange in fair value of contingent consideration
Acquisition costs (a)
Restructuring costsTax recoveryCyberattack restoration costsLegal SettlementInsurance recoveryNon-GAAP measure
(in thousands, except per share data)
SG&A expenses$313,176 $— $— $(1,264)$— $789 $(119)$(921)$— $311,661 
Operating income98,627 16,721 1,073 1,264 1,766 (789)119 921 — 119,702 
Pre-tax income103,743 16,721 1,073 1,264 1,766 (789)119 921 (838)123,980 
Net income78,873 12,516 806 1,264 1,326 (2,991)89 691 (629)91,945 
Diluted EPS$3.64 $0.58 $0.04 $0.06 $0.06 $(0.14)$— $0.03 $(0.03)$4.24 
Year ended June 30, 2025
GAAP MeasureIntangible amortization expenseChange in fair value of contingent consideration
Acquisition costs (a)
Restructuring costsTax recoveryCyberattack restoration costsLegal SettlementInsurance recoveryNon-GAAP measure
(in thousands, except per share data)
SG&A expense$286,934 $— $— $(926)$— $3,041 $(177)$(1,579)$— $287,293 
Operating income85,200 19,227 1,900 926 5,381 (3,041)177 1,579 — 111,349 
Pre-tax income94,396 19,227 1,900 926 5,381 (3,041)177 1,579 (5,928)114,617 
Net income71,548 14,400 1,432 926 4,054 (4,072)133 1,189 (4,466)85,144 
Diluted EPS$3.00 $0.60 $0.06 $0.04 $0.17 $(0.17)$0.01 $0.05 $(0.19)$3.57 

(a) Acquisition costs are generally nondeductible for tax purposes.

14
Fiscal Fourth Quarter and Full Year 2026 Earnings Key Highlights © ScanSource 2026 Consolidated I’m proud of our team’s excellent fourth quarter performance, with 17% sales growth and even stronger EPS growth. We’re also excited about our agreement to acquire MicroAge, which we believe will accelerate growth, expand margins, and add new services capabilities.” Mike Baur Chair and CEO, ScanSource, Inc. Hardware Demand Drove 17% Sales Growth in Q4 Strong Cash Flow; Exceeded FY26 Outlook for All Measures Announces Agreement to Acquire IT Solutions Integrator, MicroAge Net Sales and Gross Profit Growth in Both Segments Specialty Technology Solutions Segment Intelisys & Advisory Segment Net Sales +17% Y/Y $953M Gross Profit +14% Y/Y $120M, 12.6% margin STS, Net Sales +18% Y/Y $927M STS, Gross Profit +16% Y/Y $94M, 10.1% margin I&A, Net Sales +7% Y/Y $26M I&A, Gross Profit +8% Y/Y $26M, 99.3% 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 fourth quarter fiscal year 2026 news release issued on August 20, 2026, which accompanies this presentation and is available at www.scansource.com in the Investor Relations section [click here]. Fourth Quarter Metrics Reflect Operational Excellence 3-Year Strategic Goals Fiscal Year 2027 Annual Outlook As of August 20, 2026, and excludes the pending acquisition of MicroAge © ScanSource 2026 2 Net Sales Growth, Y/Y 6% to 10% Adjusted EBITDA* $158 million to $165 million Free Cash Flow* At least $85 million Gross Profit Growth CAGR Recurring Revenue GP as % Gross Profit Adjusted EBITDA Margin* Free Cash Flow Conversion as % Non-GAAP Net Income* Adjusted ROIC* 5%-7% Build to 50% ~6% Consistent 80%+ annual basis Mid-Teens $1.24 per share Q4, +41% Y/Y $3.64 per share FY26, +21% Y/Y GAAP Diluted EPS 4.84% Q4 4.70% FY26 Adjusted EBITDA Margin* $123M FY26 Operating Cash Flow $114M FY26 Free Cash Flow* $1.46 per share Q4, +43% Y/Y $4.24 per share FY26, +19% Y/Y Non-GAAP Diluted EPS* Q4 and FY all-time Company record $46.1M Q4, +19% Y/Y $151.5M FY26, +5% Y/Y Adjusted EBITDA* 18.2% Q4, 14.7% FY26 Adjusted ROIC* $98M share repurchases in FY26

 

Forward-Looking Statements This Earnings Infographic and supporting materials contain “forward-looking” statements, including ScanSource's FY27 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, tariffs and changes in trade policy, 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 channel sales partners and suppliers, changes in interest and exchange rates and regulatory regimes impacting ScanSource's international operations, including new or increased tariffs, risk to the business from a cyberattack, a failure of IT systems, failure to hire and retain quality employees, loss of ScanSource's major channel sales partners, relationships with key suppliers and channel sales partners or a termination or a modification of the terms under which it operates with these key suppliers and channel sales partners, 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, 2026, 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 (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) Q4 FY26 Q3 FY26 Q2 FY26 Q1 FY26 Q4 FY25 Q/Q Y/Y Select reported GAAP measures: Net sales $ 953,109 $ 766,790 $ 766,512 $ 739,650 $ 812,886 24% 17% Gross profit $ 119,849 $ 107,124 $ 102,910 $ 107,473 $ 105,102 12% 14% Gross profit margin % 12.6 % 14.0 % 13.4 % 14.5 % 12.9 % (140) bp (35) bp SG&A expenses $ 81,722 $ 78,066 $ 78,114 $ 75,275 $ 71,610 5% 14% Operating income $ 31,737 $ 23,120 $ 17,868 $ 25,903 $ 26,787 37% 18% Operating income margin % 3.33 % 3.02 % 2.33 % 3.50 % 3.30 % 32 bp 4 bp Net income $ 25,618 $ 16,885 $ 16,493 $ 19,878 $ 20,089 52% 28% Diluted EPS $ 1.24 $ 0.78 $ 0.75 $ 0.89 $ 0.88 59% 41% Select reported non-GAAP measures: Non-GAAP operating income $ 37,858 $ 27,719 $ 23,219 $ 30,911 $ 31,288 37% 21% Non-GAAP operating income margin % 3.97 % 3.61 % 3.03 % 4.18 % 3.85 % 36 bp 12 bp Non-GAAP net income $ 30,280 $ 20,372 $ 17,611 $ 23,685 $ 23,322 49% 30% Non-GAAP diluted EPS $ 1.46 $ 0.94 $ 0.80 $ 1.06 $ 1.02 55% 43% Adjusted EBITDA (non-GAAP) $ 46,148 $ 35,621 $ 31,193 $ 38,590 $ 38,639 30% 19% Adjusted EBITDA margin % (non-GAAP) 4.84 % 4.65 % 4.07 % 5.22 % 4.75 % 20 bp 9 bp Adjusted ROIC (non-GAAP) 18.2 % 14.3 % 11.9 % 14.6 % 14.9 % 390 bp 330 bp Operating cash flow (QTR) $ (2,272) $ 71,353 $ 30,838 $ 23,211 $ 7,644 Less: Capital expenditures (QTR) $ (2,517) $ (2,399) $ (1,975) $ (2,395) $ (2,517) Free cash flow (QTR) (Non-GAAP) $ (4,789) $ 68,954 $ 28,863 $ 20,816 $ 5,127 Operating cash flow (TTM) $ 123,130 $ 133,046 $ 127,751 $ 90,723 $ 112,342 Less: Capital expenditures (TTM) $ (9,286) $ (9,286) $ (8,307) $ (8,306) $ (8,286) Free cash flow (TTM) (Non-GAAP) $ 113,844 $ 123,760 $ 119,444 $ 82,417 $ 104,056 Note: Margin % reflects measure as a percentage of net sales. ScanSource, Inc. Earnings Infographic Q4 FY2026 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 4 August 20, 2026

 

Specialty Technology Solutions, 5-Quarter Financial Summary ($ in thousands) Q4 FY26 Q3 FY26 Q2 FY26 Q1 FY26 Q4 FY25 Q/Q Y/Y Net sales $ 927,179 $ 740,765 $ 741,540 $ 715,447 $ 788,708 25% 18% Gross profit $ 94,093 $ 81,421 $ 78,228 $ 83,903 $ 81,187 16% 16% Gross profit margin % 10.1 % 11.0 % 10.5 % 11.7 % 10.3 % (84) bp (15) bp GAAP operating income $ 27,604 $ 15,133 $ 11,001 $ 20,375 $ 20,937 82% 32% GAAP operating income margin % 2.98 % 2.04 % 1.48 % 2.85 % 2.65 % 93 bp 32 bp Add: Intangible amortization expense $ 1,843 $ 1,812 $ 2,097 $ 2,216 $ 2,739 Add: Change in fair value $ (440) $ 410 $ 1,128 $ 145 $ (1,407) Add: Tax recovery(a) $ — $ — $ (789) $ — $ (470) Non-GAAP operating income $ 29,007 $ 17,355 $ 13,437 $ 22,736 $ 21,799 67% 33% Non-GAAP operating income margin % 3.13 % 2.34 % 1.81 % 3.18 % 2.76 % 79 bp 37 bp Reconciliation of Operating Income to Adjusted EBITDA GAAP operating income $ 27,604 $ 15,133 $ 11,001 $ 20,375 $ 20,937 82% 32% Plus: Depreciation expense 1,695 1,658 1,606 1,753 2,134 Intangible amortization expense 1,843 1,812 2,097 2,216 2,739 Interest income 3,077 2,246 3,132 2,926 2,744 Other income/(expense), net (308) (223) (650) (186) (491) EBITDA (non-GAAP) 33,911 20,626 17,186 27,084 28,063 64% 21% Adjustments: Share-based compensation expense 3,240 3,641 3,347 2,551 2,419 (11)% 34% Change in fair value (440) 410 1,128 145 (1,407) Tax recovery(a) — — (789) — (470) Adjusted EBITDA (non-GAAP) $ 36,711 $ 24,677 $ 20,872 $ 29,780 $ 28,605 49% 28% Adjusted EBITDA margin % (non-GAAP) 3.96 % 3.33 % 2.81 % 4.16 % 3.63 % 63 bp 33 bp (a) Recovery of prior period indirect taxes in Brazil ScanSource, Inc. Earnings Infographic Q4 FY2026 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 5 August 20, 2026

 

Intelisys & Advisory, 5-Quarter Financial Summary ($ in thousands) Q4 FY26 Q3 FY26 Q2 FY26 Q1 FY26 Q4 FY25 Q/Q Y/Y Net sales $ 25,930 $ 26,025 $ 24,972 $ 24,203 $ 24,178 —% 7% Gross profit $ 25,756 $ 25,703 $ 24,682 $ 23,570 $ 23,915 —% 8% Gross profit margin % 99.3 % 98.8 % 98.8 % 97.4 % 98.9 % 50 bp 40 bp GAAP operating income $ 7,106 $ 8,145 $ 7,513 $ 5,818 $ 6,041 (13)% 18% GAAP operating income margin % 27.40 % 31.30 % 30.09 % 24.04 % 24.99 % (390) bp 241 bp Add: Intangible amortization expense $ 2,188 $ 2,188 $ 2,188 $ 2,188 $ 2,188 Add: Change in fair value $ (450) $ 30 $ 81 $ 169 $ 1,260 Non-GAAP operating income $ 8,844 $ 10,363 $ 9,782 $ 8,175 $ 9,489 (15)% (7)% Non-GAAP operating income margin % 34.11 % 39.82 % 39.17 % 33.78 % 39.25 % (571) bp (514) bp Reconciliation of Operating Income to Adjusted EBITDA GAAP operating income $ 7,106 $ 8,145 $ 7,513 $ 5,818 $ 6,041 (13)% 18% Plus: Depreciation expense 56 55 47 42 40 Intangible amortization expense 2,188 2,188 2,188 2,188 2,188 Interest income 193 206 231 255 310 Other income/(expense), net 12 6 (51) 13 (59) EBITDA (non-GAAP) 9,555 10,600 9,928 8,316 8,520 (10)% 12% Adjustments: Share-based compensation expense 332 314 312 325 254 Change in fair value (450) 30 81 169 1,260 Adjusted EBITDA (non-GAAP) $ 9,437 $ 10,944 $ 10,321 $ 8,810 $ 10,034 (14)% (6)% Adjusted EBITDA margin % (non-GAAP) 36.39 % 42.05 % 41.33 % 36.40 % 41.50 % (566) bp (511) bp ScanSource, Inc. Earnings Infographic Q4 FY2026 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 6 August 20, 2026

 

Net Sales, Constant Currency Excluding Acquisitions (Organic Growth) - QTR ($ in thousands) Net Sales by Segment: Q4 FY26 Q4 FY25 % Change Specialty Technology Solutions: Net sales, as reported $ 927,179 $ 788,708 17.6 % Foreign exchange impact (a) (5,849) — Less: Acquisitions (2,396) — Non-GAAP net sales $ 918,934 $ 788,708 16.5 % Intelisys & Advisory: Non-GAAP net sales $ 25,930 $ 24,178 7.2 % Consolidated: Net sales, as reported $ 953,109 $ 812,886 17.3 % Foreign exchange impact (a) (5,849) — Less: Acquisitions (2,396) — Non-GAAP net sales $ 944,864 $ 812,886 16.2 % Net Sales by Geography: Q4 FY26 Q4 FY25 % Change United States: Net sales, as reported (b) $ 899,594 $ 744,644 20.8 % Less: Acquisitions (2,396) — Non-GAAP net sales $ 897,198 $ 744,644 20.5 % Brazil: Net sales, as reported (c) $ 53,515 $ 68,242 (21.6) % Foreign exchange impact (a) (5,849) — Non-GAAP net sales $ 47,666 $ 68,242 (30.2) % Consolidated: Net sales, as reported $ 953,109 $ 812,886 17.3 % Foreign exchange impact (a) (5,849) — Less: Acquisitions (2,396) — Non-GAAP net sales $ 944,864 $ 812,886 16.2 % (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 June 30, 2026 into U.S. dollars using the weighted-average foreign exchange rates for the quarter ended June 30, 2025. (b) Includes net sales in Canada that are supported by U.S. operations and represent less than 5% of United States net sales for the quarters ended June 30, 2026 and 2025. (c) Includes net sales from outside of the United States, Canada and Brazil, which represent less than 0.1% of Brazil net sales for the quarters ended June 30, 2026 and 2025. ScanSource, Inc. Earnings Infographic Q4 FY2026 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 7 August 20, 2026

 

Net Sales, Constant Currency Excluding Acquisitions and Divestitures (Organic Growth) - FY ($ in thousands) Net Sales by Segment: Fiscal year ended June 30, 2026 2025 % Change Specialty Technology Solutions: Net sales, as reported $ 3,124,932 $ 2,942,717 6.2 % Foreign exchange impact (a) (17,025) — Less: Acquisitions (14,119) (3,512) Non-GAAP net sales $ 3,093,788 $ 2,939,205 5.3 % Intelisys & Advisory Net sales, as reported $ 101,130 $ 98,093 3.1 % Less: Acquisitions (1,336) (577) Non-GAAP net sales $ 99,794 $ 97,516 2.3 % Consolidated: Net sales, as reported $ 3,226,062 $ 3,040,810 6.1 % Foreign exchange impact (a) (17,025) — Less: Acquisitions (15,455) (4,089) Non-GAAP net sales $ 3,193,582 $ 3,036,721 5.2 % Net Sales by Geography: Fiscal year ended June 30, 2026 2025 % Change United States: Net sales, as reported (b) $ 2,999,458 $ 2,800,739 7.1 % Less: Acquisitions (15,455) (4,089) Non-GAAP net sales $ 2,984,003 $ 2,796,650 6.7 % Brazil: Net sales, as reported $ 226,604 $ 240,071 (5.6) % Foreign exchange impact (a) (17,025) — Non-GAAP net sales $ 209,579 $ 240,071 (12.7) % Consolidated: Net sales, as reported (c) $ 3,226,062 $ 3,040,810 6.1 % Foreign exchange impact (a) (17,025) — Less: Acquisitions (15,455) (4,089) Non-GAAP net sales $ 3,193,582 $ 3,036,721 5.2 % (a) Year-over-year sales growth excluding the translation impact of changes in foreign currency rates. Calculated by translating net sales for the fiscal year ended June 30, 2026 into U.S. dollars using the weighted-average foreign exchange rates for the fiscal year ended June 30, 2025. (b) Includes net sales in Canada that are supported by U.S. operations and represent less than 5% of United States net sales for the quarters ended June 30, 2026 and 2025. (c) Includes net sales from outside of the United States, Canada and Brazil, which represent less than 0.1% of Brazil net sales for the quarters ended June 30, 2026 and 2025. ScanSource, Inc. Earnings Infographic Q4 FY2026 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 8 August 20, 2026

 

Recurring Revenue Gross Profit as a % of Gross Profit - QTR ($ in thousands) Q4 FY26 Q3 FY26 Q2 FY26 Q1 FY26 Q4 FY25 Q/Q Y/Y Net sales by product/services: Products and services $ 911,568 $ 725,739 $ 724,489 $ 702,984 $ 776,349 25.6 % 17.4 % Recurring revenue (a) 41,541 41,051 42,023 36,666 36,537 1.2 % 13.7 % Consolidated $ 953,109 $ 766,790 $ 766,512 $ 739,650 $ 812,886 24.3 % 17.3 % Recurring revenue by segment: Specialty Technology Solutions $ 16,600 $ 16,018 $ 18,152 $ 13,816 $ 12,341 3.6 % 34.5 % Intelisys & Advisory 24,941 25,033 23,871 22,850 24,196 (0.4) % 3.1 % Consolidated $ 41,541 $ 41,051 $ 42,023 $ 36,666 $ 36,537 1.2 % 13.7 % Recurring revenue gross profit by segment: Specialty Technology Solutions $ 12,753 $ 12,146 $ 14,373 $ 11,232 $ 8,979 5.0 % 42.0 % Intelisys & Advisory 24,941 25,033 23,871 22,850 24,196 (0.4) % 3.1 % Consolidated $ 37,694 $ 37,179 $ 38,244 $ 34,082 $ 33,175 1.4 % 13.6 % Gross profit by segment: Specialty Technology Solutions $ 94,093 $ 81,421 $ 78,228 $ 83,903 $ 81,187 15.6 % 15.9 % Intelisys & Advisory 25,756 25,703 24,682 23,570 23,915 0.2 % 7.7 % Consolidated $ 119,849 $ 107,124 $ 102,910 $ 107,473 $ 105,102 11.9 % 14.0 % Recurring revenue gross profit as % of gross profit: Specialty Technology Solutions 13.6 % 14.9 % 18.4 % 13.4 % 11.1 % Intelisys & Advisory 96.8 % 97.4 % 96.7 % 96.9 % 101.2 % Consolidated 31.5 % 34.7 % 37.2 % 31.7 % 31.6 % (a) Recurring revenue represents revenue primarily agency commissions, managed connectivity, SaaS, subscription, and hardware rentals. ScanSource, Inc. Earnings Infographic Q4 FY2026 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 9 August 20, 2026

 

Recurring Revenue Gross Profit as a % of Gross Profit - FY ($ in thousands) FY 26 FY 25 $ Change % Change Net sales by product/services: Products and services $ 3,064,853 $ 2,895,110 $ 169,743 5.9 % Recurring revenue (a) 161,209 145,700 15,509 10.6 % Consolidated $ 3,226,062 $ 3,040,810 $ 185,252 6.1 % Recurring revenue by segment: Specialty Technology Solutions $ 64,515 $ 50,674 $ 13,841 27.3 % Intelisys & Advisory 96,694 95,026 1,668 1.8 % Consolidated $ 161,209 $ 145,700 $ 15,509 10.6 % Recurring revenue gross profit by segment: Specialty Technology Solutions $ 50,505 $ 39,037 $ 11,468 29.4 % Intelisys & Advisory 96,694 95,026 1,668 1.8 % Consolidated $ 147,199 $ 134,063 $ 13,136 9.8 % Gross profit by segment: Specialty Technology Solutions $ 337,644 $ 311,402 $ 26,242 8.4 % Intelisys & Advisory 99,711 97,244 2,467 2.5 % Consolidated $ 437,355 $ 408,646 $ 28,709 7.0 % Recurring revenue gross profit as % of gross profit: Specialty Technology Solutions 15.0 % 12.5 % Intelisys & Advisory 97.0 % 97.7 % Consolidated 33.7 % 32.8 % (a) Recurring revenue represents primarily agency commissions, managed connectivity, SaaS, subscription, and hardware rentals. ScanSource, Inc. Earnings Infographic Q4 FY2026 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 10 August 20, 2026

 

Average Adjusted Return on Invested Capital - QTR ($ in thousands) Q4 FY26 Q3 FY26 Q2 FY26 Q1 FY26 Q4 FY25 Reconciliation of Net Income to Adjusted EBITDA Net income - GAAP $ 25,618 $ 16,885 $ 16,493 $ 19,878 $ 20,089 Plus: Interest expense 1,430 1,303 1,946 1,914 2,099 Income taxes 7,656 7,167 2,928 7,118 7,408 Depreciation and amortization 5,782 5,713 5,938 6,200 7,101 EBITDA (non-GAAP) 40,486 31,068 27,305 35,110 36,697 Adjustments: Change in fair value of contingent consideration (890) 440 1,209 314 (147) Share-based compensation 3,572 3,955 3,660 2,876 2,673 Tax recovery (a) — — (789) — (470) Acquisition costs 270 142 593 261 191 Restructuring costs 1,766 — — — — Cyberattack restoration costs 23 16 53 29 — Insurance recovery, net of payments — — (838) — (305) Legal settlement 921 — — — — Adjusted EBITDA (numerator for Adjusted ROIC) (non-GAAP) $ 46,148 $ 35,621 $ 31,193 $ 38,590 $ 38,639 Invested Capital Calculation Equity - beginning of quarter $ 906,261 $ 910,886 $ 914,032 $ 906,393 $ 901,746 Equity - end of quarter 910,792 906,261 910,886 914,032 906,393 Adjustments: Change in fair value of contingent consideration, net (668) 330 907 236 (110) Share-based compensation, net 2,674 2,963 2,741 2,152 2,007 Tax recovery, net — — (2,991) — (310) Acquisition costs 270 141 593 261 191 Restructuring costs, net 1,326 — — — — Cyberattack restoration costs, net 17 12 39 21 — Insurance recovery, net — — (629) — (229) Legal settlement, net 691 — — — — Average equity 910,682 910,297 912,789 911,548 904,844 Average funded debt (b) 106,622 103,210 131,470 137,113 138,270 Invested capital (denominator for Adjusted ROIC) (non-GAAP) $ 1,017,304 $ 1,013,507 $ 1,044,259 $ 1,048,661 $ 1,043,114 Adjusted return on invested capital (ROIC), annualized (c) 18.2 % 14.3 % 11.9 % 14.6 % 14.9 % (a) Recovery of prior period indirect 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 Q4 FY2026 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 11 August 20, 2026

 

Average Adjusted Return on Invested Capital - FY ($ in thousands) Fiscal Year Ended June 30, 2026 2025 Reconciliation of Net Income to Adjusted EBITDA Net income from continuing operations - GAAP $ 78,873 $ 71,548 Plus: Interest expense 6,593 8,013 Income taxes 24,870 22,848 Depreciation and amortization 23,633 30,195 EBITDA (non-GAAP) 133,969 132,604 Adjustments: Change in fair value of contingent consideration 1,073 1,900 Share-based compensation 14,063 11,062 Tax recovery (a) (789) (3,041) Acquisition and divestiture costs 1,264 926 Restructuring costs 1,766 5,381 Cyberattack restoration costs 119 177 Insurance recovery, net of payments (838) (5,928) Legal settlement 921 1,579 Adjusted EBITDA (numerator for Adjusted ROIC) (non-GAAP) $ 151,548 $ 144,660 Invested Capital Calculation Equity - beginning of year 906,409 924,255 Equity - end of year 910,792 906,409 Adjustments: Change in fair value of contingent consideration, net 806 1,432 Share-based compensation, net 10,530 8,310 Tax recovery, net (2,991) (4,072) Acquisition and divestiture costs 1,265 926 Restructuring costs, net 1,326 4,054 Cyberattack restoration costs, net 89 133 Insurance recovery, net (629) (4,466) Legal settlement, net 691 1,189 Average equity 914,144 919,085 Average funded debt (b) 119,729 141,173 Invested capital (denominator for Adjusted ROIC) (non-GAAP) $ 1,033,873 $ 1,060,258 Adjusted return on invested capital (ROIC), annualized (c) 14.7 % 13.6 % (a) Recovery of prior period indirect 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) divided by invested capital for the period. ScanSource, Inc. Earnings Infographic Q4 FY2026 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 12 August 20, 2026

 

Net Debt and Adjusted EBITDA Metrics ($ in thousands) Q4 FY26 Q3 FY26 Q2 FY26 Q1 FY26 Q4 FY25 Consolidated debt (Q/E) $ 101,413 $ 102,038 $ 102,663 $ 133,913 $ 136,149 Less: Cash and cash equivalents of continuing operations (Q/E) (88,374) (120,295) (83,466) (124,924) (126,157) Net debt (Q/E) (non-GAAP) $ 13,039 $ (18,257) $ 19,197 $ 8,989 $ 9,992 Reconciliation of Net Income to Adjusted EBITDA Net income - GAAP $ 25,618 $ 16,885 $ 16,493 $ 19,878 $ 20,089 Plus: Interest expense 1,430 1,303 1,946 1,914 2,099 Income taxes 7,656 7,167 2,928 7,118 7,408 Depreciation and amortization 5,782 5,713 5,938 6,200 7,101 EBITDA (non-GAAP) 40,486 31,068 27,305 35,110 36,697 Adjustments: Change in fair value of contingent consideration (890) 440 1,209 314 (147) Share-based compensation 3,572 3,955 3,660 2,876 2,673 Tax recovery (a) — — (789) — (470) Acquisition costs 270 142 593 261 191 Restructuring costs 1,766 — — — — Cyberattack restoration costs 23 16 53 29 — Insurance recovery, net of payments — — (838) — (305) Legal settlement 921 — — — — Adjusted EBITDA (non-GAAP) $ 46,148 $ 35,621 $ 31,193 $ 38,590 $ 38,639 Adjusted EBITDA, TTM (non-GAAP) (b) $ 151,552 Net Debt / Adjusted EBITDA, TTM (non-GAAP) 0.1 x (a) Recovery of prior period indirect taxes in Brazil (b) Adjusted EBITDA for the trailing 12-month period ScanSource, Inc. Earnings Infographic Q4 FY2026 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 13 August 20, 2026

 

Working Capital, 5-Quarter Summary ($ in thousands) Q4 FY26 Q3 FY26 Q2 FY26 Q1 FY26 Q4 FY25 Accounts receivable (Q/E) $ 769,750 $ 628,442 $ 605,411 $ 557,071 $ 635,521 Days sales outstanding in receivables 73 74 71 68 70 Inventory (Q/E) $ 522,350 $ 486,628 $ 490,259 $ 505,339 $ 483,815 Inventory turns 6.6 5.4 5.3 5.1 5.9 Accounts payable (Q/E) $ 753,275 $ 646,650 $ 576,662 $ 529,578 $ 598,595 Paid for inventory days (a) (12.0) (6.6) 3.1 12.4 (1.1) Working capital (Q/E) (AR+INV-AP) $ 538,825 $ 468,420 $ 519,008 $ 532,832 $ 520,741 Cash conversion cycle 61 67 74 80 69 (a) Paid for inventory days represent Q/E inventory days less Q/E accounts payable days. ScanSource, Inc. Earnings Infographic Q4 FY2026 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 14 August 20, 2026

 

Operating Income, Net Income, EPS & Other - QTR ($ in thousands, except for share data) Quarter ended June 30, 2026 Reported GAAP measure Intangible amortization expense Acquisition costs (a) Restructuring costs Change in fair value of contingent consideration Cyberattack restoration costs Legal settlement Non-GAAP measure SG&A expenses $ 81,722 $ — $ (270) $ — $ — $ (23) $ (921) $ 80,508 Operating income 31,737 4,031 270 1,766 (890) 23 921 37,858 Pre-tax income 33,274 4,031 270 1,766 (890) 23 921 39,395 Net income 25,618 3,026 270 1,326 (668) 17 691 30,280 Diluted EPS $ 1.24 $ 0.15 $ 0.01 $ 0.06 $ (0.03) $ — $ 0.03 $ 1.46 Quarter ended March 31, 2026 Reported GAAP measure Intangible amortization expense Acquisition costs (a) Restructuring costs Change in fair value of contingent consideration Cyberattack restoration costs Legal settlement Non-GAAP measure SG&A expenses $ 78,066 $ — $ (142) $ — $ — $ (16) $ — $ 77,908 Operating income 23,120 4,001 142 — 440 16 — 27,719 Pre-tax income 24,052 4,001 142 — 440 16 — 28,651 Net income 16,885 3,003 142 — 330 12 — 20,372 Diluted EPS $ 0.78 $ 0.14 $ 0.01 $ — $ 0.02 $ — $ — $ 0.94 (a) Acquisition costs are generally nondeductible for tax purposes. ScanSource, Inc. Earnings Infographic Q4 FY2026 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 15 August 20, 2026

 

Operating Income, Net Income, EPS & Other - QTR, continued ($ in thousands, except for share data) Quarter ended December 31, 2025 Reported GAAP measure Intangible amortization expense Acquisition costs (a) Change in fair value of contingent consideration Tax recovery Cyberattack restoration costs Insurance recovery Non-GAAP measure SG&A expenses $ 78,114 $ — $ (593) $ — $ 789 $ (53) $ — $ 78,257 Operating income 17,868 4,285 593 1,209 (789) 53 — 23,219 Pre-tax income 19,421 4,285 593 1,209 (789) 53 (838) 23,934 Net income 16,493 3,199 593 907 (2,991) 39 (629) 17,611 Diluted EPS $ 0.75 $ 0.14 $ 0.03 $ 0.04 $ (0.14) $ — $ (0.03) $ 0.80 Quarter ended September 30, 2025 Reported GAAP measure Intangible amortization expense Acquisition costs (a) Change in fair value of contingent consideration Tax recovery Cyberattack restoration costs Insurance recovery Non-GAAP measure SG&A expenses $ 75,275 $ — $ (261) $ — $ — $ (29) $ — $ 74,985 Operating income 25,903 4,404 261 314 — 29 — 30,911 Pre-tax income 26,996 4,404 261 314 — 29 — 32,004 Net income 19,878 3,289 261 236 — 21 — 23,685 Diluted EPS $ 0.89 $ 0.15 $ 0.01 $ 0.01 $ — $ — $ — $ 1.06 (a) Acquisition costs are generally nondeductible for tax purposes. ScanSource, Inc. Earnings Infographic Q4 FY2026 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 16 August 20, 2026

 

Operating Income, Net Income, EPS & Other - QTR, continued ($ in thousands, except for share data) Quarter ended June 30, 2025 Reported GAAP measure Intangible amortization expense Acquisition costs (a) Change in fair value of contingent consideration Tax recovery Cyberattack restoration costs Insurance recovery Non-GAAP measure SG&A expenses $ 71,610 $ — $ (191) $ — $ 470 $ — $ — $ 71,889 Operating income 26,787 4,927 191 (147) (470) — — 31,288 Pre-tax income 27,497 4,927 191 (147) (470) — (305) 31,693 Net income 20,089 3,691 191 (110) (310) — (229) 23,322 Diluted EPS $ 0.88 $ 0.16 $ 0.01 $ — $ (0.01) $ — $ (0.01) $ 1.02 (a) Acquisition costs are generally nondeductible for tax purposes. ScanSource, Inc. Earnings Infographic Q4 FY2026 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 17 August 20, 2026

 

Operating Income, Net Income, EPS & Other - FY ($ in thousands, except for share data) Year ended June 30, 2026 Reported GAAP measure Intangible amortization expense Change in fair value of contingent consideration Acquisition costs (a) Restructuring costs Tax recovery Cyberattack restoration costs Legal Settlement Insurance Recovery Non-GAAP measure SG&A expenses $ 313,176 $ — $ — $ (1,264) $ — $ 789 $ (119) $ (921) $ — $ 311,661 Operating income 98,627 16,721 1,073 1,264 1,766 (789) 119 921 — 119,702 Pre-tax income 103,743 16,721 1,073 1,264 1,766 (789) 119 921 (838) 123,980 Net income 78,873 12,516 806 1,264 1,326 (2,991) 89 691 (629) 91,945 Diluted EPS $ 3.64 $ 0.58 $ 0.04 $ 0.06 $ 0.06 $ (0.14) $ — $ 0.03 $ (0.03) $ 4.24 Year ended June 30, 2025 Reported GAAP measure Intangible amortization expense Change in fair value of contingent consideration Acquisition costs (a) Restructuring costs Tax recovery Cyberattack restoration costs Legal Settlement Insurance Recovery Non-GAAP measure SG&A expenses $ 286,934 $ — $ — $ (926) $ — $ 3,041 $ (177) $ (1,579) $ — $ 287,293 Operating income 85,200 19,227 1,900 926 5,381 (3,041) 177 1,579 — 111,349 Pre-tax income 94,396 19,227 1,900 926 5,381 (3,041) 177 1,579 (5,928) 114,617 Net income 71,548 14,400 1,432 926 4,054 (4,072) 133 1,189 (4,466) 85,144 Diluted EPS $ 3.00 $ 0.60 $ 0.06 $ 0.04 $ 0.17 $ (0.17) $ 0.01 $ 0.05 $ (0.19) $ 3.57 (a) Acquisition costs are generally nondeductible for tax purposes. ScanSource, Inc. Earnings Infographic Q4 FY2026 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 18 August 20, 2026

 

image_0a.jpg
Exhibit 99.3
For Release:
August 20, 2026
Press Contact:
Natalyn Klump
Natalyn.Klump@scansource.com
ScanSource to Acquire MicroAge, a Leading IT Solutions Integrator
Adds higher-margin capabilities and expands ScanSource’s reach in strategic growth technologies, including cloud, cybersecurity, data center, and AI
GREENVILLE, SC —ScanSource, Inc. (NASDAQ: SCSC), a leading technology distributor uniquely positioned to address complex technologies, today announced a definitive agreement to acquire MicroAge. MicroAge is a leading IT solutions integrator, managed services provider (MSP), and digital transformation partner, helping businesses design, implement, secure, manage, and optimize their IT environments. The acquisition strengthens ScanSource’s reach into strategic growth technologies. MicroAge is expected to accelerate ScanSource’s revenue growth and margin expansion opportunities.
MicroAge serves a diversified U.S. client base of approximately 2,400 clients and has more than 200 associates. MicroAge brings deep customer relationships, a highly certified team of specialized solutions architects, and established partnerships with leading suppliers including Microsoft, Dell, Sophos, HPE, CrowdStrike, and VMware. MicroAge’s professional services and MSP offerings are available to support channel partners in unlocking new growth opportunities.
“MicroAge is an amazing, legendary company that has had tremendous brand recognition for more than 50 years,” said Mike Baur, Chair and CEO, ScanSource, Inc. “The acquisition expands ScanSource’s total addressable market, adds new services capabilities, and provides greater visibility into end-user needs.”
“We are proud of what the MicroAge team has built, and we see ScanSource as the right partner for our next phase of growth,” said Larry Gentry, CEO of MicroAge. “With ScanSource’s greater reach, resources, and channel expertise, we will be better positioned to scale our services-led model in high-growth markets, while continuing to deliver the customer-first experience that has defined MicroAge.”
Under the agreement, ScanSource will acquire MicroAge in an all-cash transaction for a purchase price of $220.5 million, payable at closing. ScanSource expects to fund the acquisition through borrowings under its existing credit facility. The transaction is expected to be accretive to gross profit margin, adjusted EBITDA margin, and non-GAAP EPS in the first year following close, and is also expected to be free cash flow positive for ScanSource. The acquisition is

        

expected to close in the quarter ending September 30, 2026, subject to regulatory approval and other customary closing conditions.
The acquisition brings together two “best places to work” with similar values, strong cultural fit, and a shared commitment to long-term customer relationships and exceptional customer experience. MicroAge has been recognized as one of the industry’s top performers on multiple CRN lists, including the Solution Provider 500, MSP 500, Tech Elite 250, and Fast Growth 150 lists.
About ScanSource, Inc.
ScanSource, Inc. (NASDAQ: SCSC) is a leading technology distributor uniquely positioned to address complex technologies and to accelerate growth for channel sales partners across hardware, software as a service (SaaS), connectivity and cloud services. ScanSource enables channel sales partners to deliver converging solutions for their end users. ScanSource uses multiple sales models to offer technology solutions from leading suppliers of specialty technologies, connectivity and cloud services. Founded in 1992 and headquartered in Greenville, South Carolina, ScanSource was named one of the 2025 Best Places to Work in South Carolina and on the Fortune World’s Most Admired Companies 2026 List. ScanSource ranks #923 on the Fortune 1000. For more information, visit www.scansource.com.
About MicroAge
MicroAge is an award-winning full-service solutions integrator. For 50 years, MicroAge has empowered businesses to advance, secure, accelerate, and transform—moving quickly with technology changes across the channel to drive business forward. Our elite, highly certified team of specialized consultants brings unique expertise to our clients in cybersecurity, data intelligence, technology implementations, managed IT services, and more. Visit www.microage.com to learn more.
Forward-Looking Statements
This press release contains, or may be deemed to contain, “forward-looking statements” (as defined in the U.S. Private Securities Litigation Reform Act of 1995, as amended). These forward-looking statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to differ materially from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. These risks and other factors include the risks and uncertainties inherent in the transactions contemplated by the MicroAge Purchase Agreement and in the Company’s business, including, without limitation: the occurrence of any event, change or other circumstances that could give rise to the termination of the MicroAge Purchase

        

Agreement; the risk that the conditions to the closing are not satisfied; and the risk that the Acquisition will not be consummated within the expected time period or at all. Other important factors that could cause actual results to differ materially from the Company’s expectations are set forth under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2026. In light of these risks, uncertainties, and other factors, the forward-looking statements might not prove to be accurate and you should not place undue reliance upon them. All forward-looking statements speak only as of the date made and the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.



Source: View Original Filing on SEC EDGAR

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