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

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

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 Up 6.0%

SCSC traded up $2.61 on Friday, reaching $45.90. 395,896 shares of the company traded hands, compared to its average volume of 222,256. The company has a market cap of $985.93 million, a price-to-earnings ratio of 14.08, a PEG ratio of 0.69 and a beta of 1.28. The company has a debt-to-equity ratio of 0.11, a current ratio of 1.96 and a quick ratio of 1.22. The stock’s 50 day moving average price is $37.77 and its 200-day moving average price is $39.47. ScanSource has a 52-week low of $33.76 and a 52-week high of $46.25.

Insiders Place Their Bets

In other news, CEO Michael L. Baur sold 3,827 shares of the business’s stock in a transaction 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 directly owned 157,512 shares in the company, valued at $5,653,105.68. The trade was a 2.37% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Charles Alexander Mathis acquired 6,000 shares of the business’s stock in a transaction that occurred on Wednesday, February 11th. The shares were purchased at an average price of $35.20 per share, with a total value of $211,200.00. Following the completion of the acquisition, the director owned 24,793 shares of the company’s stock, valued at $872,713.60. This 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

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Amundi lifted its stake in ScanSource by 35.1% in the first quarter. Amundi now owns 26,464 shares of the industrial products company’s stock valued at $836,000 after acquiring an additional 6,880 shares during the last quarter. AQR Capital Management LLC boosted its holdings in ScanSource by 3.8% in the first quarter. AQR Capital Management LLC now owns 128,574 shares of the industrial products company’s stock worth $4,373,000 after purchasing an additional 4,693 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in ScanSource by 2.2% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 13,859 shares of the industrial products company’s stock worth $471,000 after buying an additional 295 shares during the last quarter. Millennium Management LLC increased its position in ScanSource by 8.4% during the first quarter. Millennium Management LLC now owns 259,808 shares of the industrial products company’s stock worth $8,836,000 after buying an additional 20,086 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in ScanSource by 35.3% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 61,513 shares of the industrial products company’s stock worth $2,092,000 after buying an additional 16,044 shares during the last quarter. Institutional investors own 97.91% of the company’s stock.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on SCSC. Wall Street Zen downgraded ScanSource from a “buy” rating to a “hold” rating in a research report on Saturday, January 17th. Zacks Research upgraded ScanSource from a “strong sell” rating to a “hold” rating in a report on Tuesday, April 7th. Three research analysts have rated the stock with a Hold rating, According to MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $43.00.

ScanSource Company Profile

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.