ScanSource, Inc.
- Open
- 54.06
- Day high
- 55.84
- Day low
- 53.41
- Prev close
- 54.35
- Volume
- 0
- Mkt cap
- $1.1B
- P/E (TTM)
- 14.7
- EPS (TTM)
- $3.69
- P/B
- 1.2
- P/S
- 0.3
- Yield
- —
- Per share
- —
ScanSource, Inc. (SCSC) is a Technology company listed on NASDAQ. The stock is up 23% over the past year. Drillr has 1 published research article covering SCSC.
ScanSource, Inc. (SCSC) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
SCSC earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 20, 2026 | $1.14 | $1.46 | +28.1% | $953M | +17.0% |
| May 7, 2026 | $0.91 | $0.94 | +3.3% | $767M | +3.8% |
| Feb 5, 2026 | $1.00 | $0.80 | -20.0% | $767M | +6.0% |
| Nov 6, 2025 | $0.91 | $1.06 | +16.5% | $740M | -6.1% |
| Aug 21, 2025 | $0.91 | $1.02 | +12.1% | $813M | +2.4% |
| May 8, 2025 | $0.77 | $0.86 | +11.7% | $705M | -9.2% |
| Jan 30, 2025 | $0.89 | $0.85 | -4.5% | $747M | -7.6% |
| Nov 7, 2024 | $0.78 | $0.84 | +7.7% | $776M | -1.0% |
| Nov 9, 2023 | $0.90 | $0.74 | -17.8% | $876M | -5.5% |
| Aug 22, 2023 | $0.75 | $0.76 | +1.3% | $947M | +5.6% |
| Feb 7, 2023 | $1.04 | $1.06 | +1.9% | $1.0B | +8.6% |
| Aug 23, 2022 | $0.97 | $0.91 | -6.2% | $962M | +5.8% |
SCSC insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Aug 21, 2026 | Jones Stephenofficer: SEVP & CFO | Grant | 10,106 | — |
| Aug 21, 2026 | Smith Shana Cofficer: Sr. EVP & Chief Legal Officer | Grant | 3,434 | — |
| Aug 21, 2026 | BAUR MICHAEL Ldirector, officer: CEO, President, BOD Chair | Grant | 30,662 | — |
| Mar 17, 2026 | BAUR MICHAEL Ldirector, officer: CEO, President, BOD Chair | Sell | 3,827 | $35.89 |
| Mar 17, 2026 | BAUR MICHAEL Ldirector, officer: CEO, President, BOD Chair | Sell | 21,104 | $35.76 |
| Mar 17, 2026 | BAUR MICHAEL Ldirector, officer: CEO, President, BOD Chair | Sell | 69 | $36.40 |
| Feb 13, 2026 | Mathis Charles Alexanderdirector | Buy | 5,000 | $35.32 |
| Feb 13, 2026 | Mathis Charles Alexanderdirector | Buy | 1,000 | $34.63 |
| Dec 16, 2025 | BAUR MICHAEL Ldirector, officer: CEO, President, BOD Chair | Sell | 100 | $42.05 |
| Dec 16, 2025 | BAUR MICHAEL Ldirector, officer: CEO, President, BOD Chair | Sell | 7,281 | $41.53 |
| Dec 16, 2025 | BAUR MICHAEL Ldirector, officer: CEO, President, BOD Chair | Sell | 2,178 | $41.06 |
| Dec 16, 2025 | BAUR MICHAEL Ldirector, officer: CEO, President, BOD Chair | Sell | 982 | $42.09 |
| Dec 16, 2025 | BAUR MICHAEL Ldirector, officer: CEO, President, BOD Chair | Sell | 9,459 | $40.81 |
| Dec 12, 2025 | Jones Stephenofficer: SEVP & CFO | Sell | 5,020 | $42.30 |
| Sep 19, 2025 | BAUR MICHAEL Ldirector, officer: CEO, President, BOD Chair | Option | 22,969 | $38.19 |
Source: SCSC SEC Form 4 filings, latest Aug 21, 2026. For informational purposes only — not investment advice.
See the full SCSC insider & 13F page →SCSC research & analysis
ScanSource, Inc. company profile
Overview
ScanSource, Inc. (NASDAQ:SCSC) is a technology distribution company founded in 1992 and headquartered in Greenville, South Carolina. The company went public in 1994 and has evolved from a traditional hardware distributor into what it calls a "hybrid distributor," combining traditional product distribution with cloud-based services and recurring revenue solutions. ScanSource operates across the United States, Canada, and internationally, serving as an intermediary between technology manufacturers and reseller partners who ultimately serve end customers.
Business
ScanSource operates in the technology distribution industry, which sits between technology manufacturers and the channel partners (resellers, integrators, and service providers) who sell to end customers. The company functions as a wholesale distributor, purchasing technology products from manufacturers and reselling them to channel partners, while also providing value-added services, financing, and technical support. The company operates through two primary business segments: 1. Specialty Technology Solutions Segment (approximately 85-90% of revenue): This segment distributes hardware-focused technology products including enterprise mobile computing devices, data capture equipment (barcode scanners), point-of-sale (POS) systems, payment processing equipment, networking infrastructure, electronic physical security systems (access control, video surveillance), and cybersecurity solutions. These products are used across various industries including retail, warehousing, healthcare, and manufacturing for applications like inventory management, payment processing, and facility security. 2. Intelisys & Advisory Segment (approximately 10-15% of revenue): This segment operates as a technology advisor and master agent, helping channel partners sell cloud-based communications services. Rather than distributing physical products, this segment facilitates the sale of services like unified communications (UCaaS), contact center solutions (CCaaS), video conferencing, and other cloud-based communication technologies. The segment generates nearly 100% gross margins as it primarily earns commissions and fees rather than handling physical inventory. The company has been transitioning toward what it calls a "hybrid distribution" model, combining traditional hardware distribution with recurring revenue services and cloud solutions to capture higher margins and more predictable revenue streams.
Revenue model
ScanSource generates revenue through multiple business models depending on the segment: Product Sales Model: The core business involves purchasing technology products from manufacturers at wholesale prices and reselling them to channel partners at marked-up prices. The company typically earns gross margins of 10-11% on these hardware sales. Revenue is recognized when products are shipped to customers. Commission and Fee Model: Through the Intelisys segment, ScanSource earns ongoing commissions from telecommunications and cloud service providers when their channel partners successfully sell services to end customers. This creates recurring revenue streams with gross margins approaching 100% since there are no physical goods involved. Value-Added Services: The company provides additional services like financing, technical support, training, and logistics services, which command higher margins than basic product distribution. Paying customers are primarily channel partners including value-added resellers (VARs), systems integrators, independent software vendors, and managed service providers who serve various vertical markets such as retail, healthcare, education, government, and manufacturing. Several factors influence the company's margins and profitability. Positive margin drivers include the growth of recurring revenue services, expansion into higher-margin cybersecurity and AI solutions, successful cost management initiatives, and the company's focus on specialized vertical markets where it can command premium pricing. Negative margin pressures come from competitive pricing in commodity hardware products, macroeconomic uncertainty affecting customer spending, supply chain disruptions that can impact inventory costs, foreign exchange fluctuations in international markets like Brazil, and the ongoing shift from hardware to software solutions in the technology industry.
Competitive moat
ScanSource's competitive moat is moderate and primarily based on relationships and operational scale rather than strong structural advantages. The company's main defensive characteristics include established relationships with both technology vendors and channel partners built over decades, specialized expertise in vertical markets that creates switching costs, and operational scale that allows for competitive pricing and comprehensive service offerings. The company benefits from being a trusted intermediary in complex technology ecosystems, where manufacturers prefer working with established distributors rather than managing thousands of small reseller relationships directly. ScanSource's technical expertise and training programs create some partner stickiness, particularly in specialized areas like enterprise mobility and physical security. However, the moat is not particularly strong. The technology distribution industry faces structural challenges including disintermediation as manufacturers increasingly sell direct to customers, margin compression from competitive pressures, and the ongoing shift from hardware to software/cloud solutions that reduces the need for traditional distribution. Large competitors like Ingram Micro, Tech Data (now part of TD SYNNEX), and Amazon Business have significant scale advantages, while cloud-native companies can bypass traditional distribution channels entirely. The company's strategic pivot toward recurring revenue services through Intelisys represents an attempt to build a stronger moat in the higher-margin services space, but this segment remains relatively small and faces competition from other master agents and direct sales efforts by service providers.
Risks & safety
ScanSource demonstrates a reasonable margin of safety with solid financial fundamentals, though working capital intensity creates some cash flow volatility. • Liquidity and Solvency: Strong current ratio of 2.07x, quick ratio of 1.32x, and $146 million in cash provides adequate liquidity. Debt-to-equity ratio of 15% indicates conservative leverage. • Valuation Metrics: Trading at attractive valuations with P/E ratio of 11.4x, EV/EBITDA of 5.8x, and price-to-book ratio of 0.88x, suggesting potential undervaluation. • Cash Generation: Positive free cash flow of $65 million in Q3 2025, though historically volatile due to working capital fluctuations tied to inventory cycles. • Other Considerations: Return on equity of 1.9% is relatively low, indicating modest profitability efficiency. The business model's dependence on working capital creates earnings volatility, and the company operates in a structurally challenging industry facing disintermediation pressures.
Recent development
Over the past few years, ScanSource has undergone significant strategic transformation from a traditional hardware distributor to a "hybrid distributor" focused on recurring revenue and higher-margin services. Key developments include the launch of the Integrated Solutions Group (ISG) to provide comprehensive technology solutions rather than just product distribution, and strategic acquisitions of Resourcive (a technology advisory business) and Advantix (a 5G mobility connectivity provider) to expand capabilities in high-margin, recurring revenue services. The company has made substantial investments in its Intelisys segment, appointing new leadership and launching the Channel Exchange SaaS platform to better serve technology advisors and master agents. Management has also focused on expanding into emerging technology areas, adding nine new suppliers in AI and cybersecurity, developing an AI master class for channel partners, and creating a dedicated business development team to attract emerging technology companies. Operationally, ScanSource has restructured its organization by expanding the roles of business presidents to include strategy and acquisitions, implemented cost reduction initiatives including headcount reductions for $10.5 million in annual savings, and shifted toward partner segmentation strategies to improve margins. The company has also been actively managing working capital efficiency while maintaining its acquisition pipeline focused on working capital-light, margin-accretive opportunities that support growth initiatives.
SCSC company profile · for informational purposes only — not investment advice.
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