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NEW YORK - On Thursday, ScanSource , Inc. (NASDAQ:SCSC) reported fourth-quarter results that exceeded analyst expectations and provided an optimistic outlook for fiscal year 2026.
The technology distributor’s shares gained 3.36% in pre-market trading after the announcement.
The Greenville, South Carolina-based company posted adjusted earnings of $1.02 per share for the fourth quarter ended June 30, 2025, surpassing the analyst consensus of $0.93. Revenue reached $812.9 million, significantly above the $776.21 million analysts had expected and up 8.9% from $746.1 million in the same quarter last year.
"We delivered strong free cash flow for our fiscal year and achieved excellent profitability growth across the board," said Mike Baur, Chair and CEO of ScanSource. "As we enter fiscal year 2026, we plan to make strategic investments in our business to accelerate growth and expand margins."
The company’s Specialty Technology Solutions segment, which accounts for the bulk of its business, saw net sales increase 9.2% YoY to $788.7 million, driven by broad-based growth in North America. Recurring revenue jumped 30% YoY, including contributions from acquisitions.
Adjusted EBITDA for the quarter rose 13% to $38.6 million, representing 4.75% of net sales compared to 4.58% in the prior-year period.
Looking ahead, ScanSource provided an upbeat outlook for fiscal 2026, projecting revenue between $3.1 billion and $3.3 billion, above the analyst consensus of $3.01 billion. The company also expects adjusted EBITDA of $150-160 million and free cash flow of at least $80 million.
For the full fiscal year 2025, ScanSource reported a 6.7% decline in net sales to $3.04 billion, though adjusted earnings per share increased 15.9% to $3.57.
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