ScanSource, Inc. Reports Strong Q1 Earnings Growth

ScanSource Inc ( (SCSC) ) has released its Q1 earnings. Here is a breakdown of the information ScanSource Inc presented to its investors.

ScanSource, Inc. is a prominent technology distributor that specializes in providing complex, converging technologies to channel sales partners across hardware, software as a service (SaaS), connectivity, and cloud services. Based in Greenville, South Carolina, the company is recognized for its unique position in the technology distribution sector.

In its latest earnings report for the first quarter of fiscal year 2026, ScanSource, Inc. announced a notable increase in earnings per share (EPS) and strong free cash flow, despite a slight decline in net sales. The company continues to execute its strategic plan, guided by its new three-year strategic goals.

Key financial highlights from the report include a 5.8% increase in gross profit to $107.5 million and a 46.9% rise in operating income to $25.9 million. The gross profit margin improved to 14.5%, up from 13.1% in the previous year. On a GAAP basis, net income rose by 17.1% to $19.9 million, with a diluted EPS of $0.89, marking a 29.0% increase. Non-GAAP net income also saw a 13.7% increase to $23.7 million, with a diluted EPS of $1.06.

ScanSource’s acquisition of DataXoom, a connectivity provider, is expected to complement its existing Advantix investment and enhance its service offerings. The company also reported a healthy balance sheet with cash and cash equivalents of $124.9 million and total debt of $133.9 million.

Looking ahead, ScanSource reaffirms its annual financial outlook for fiscal year 2026, projecting net sales between $3.1 billion and $3.3 billion and adjusted EBITDA between $150 million and $160 million. The company remains focused on executing its strategic plan to drive growth and deliver value to its stakeholders.