olivLaw · US equity research
ScanSource, Inc. SCSC
Wholesale-Computers & Peripheral Equipment & Software · SIC 5045 · Vertical: Wholesale-Computers & Peripheral Equipment & Software (SIC 5045)
ScanSource distributes hardware, SaaS, connectivity and cloud services from more than 500 suppliers to a channel of sales partners, mainly in the United States and Brazil. Net sales reached 3.23 billion USD in fiscal 2026, and the August 2026 agreement to acquire MicroAge could change the company's margin and services profile if the deal closes.
At the close of 04 Nov 2026, ScanSource, Inc. (SCSC) stock was 56.98 USD (+0.42% on the day), with market capitalisation 1.1 bn USD, P/E 15.7 on diluted EPS of 3.64 USD over the last 12 months, beta 1.09, 52-week range 34.27–62.22 USD. Latest reported quarter (Q4 2026): revenue of 953.1 m USD (+17.3% YoY), net income of 25.6 m USD (+27.5% YoY), diluted EPS 1.24 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 40.3
- weak (30–45)
- Bollinger (20, 2)
- 56.58 – 62.81
- in the lower half of the band · %B 0.06 · band width 10.4%
- SMA 50 / 200
- 58.73 / 48.08
- mixed trend
- MACD (12, 26, 9)
- -0.41 / 0.16
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −6.6% | −1.1% | −5.5 pp | — |
| 3 months | −0.7% | −0.5% | −0.2 pp | — |
| 6 months | +39.2% | +4.4% | +34.8 pp | — |
| Year to date | +45.9% | +12.3% | +33.6 pp | — |
| 1 year | +38.7% | +13.5% | +25.2 pp | +22.0% |
| 3 years | +77.9% | +76.4% | +1.5 pp | +90.4% |
| 5 years | +43.3% | +63.7% | −20.3 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q4 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | Q4 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 775.6 m | 747.5 m | 704.8 m | 812.9 m | 739.7 m | 766.5 m | 766.8 m | 953.1 m |
| Cost of revenue | 674.0 m | 645.8 m | 604.6 m | 707.8 m | 632.2 m | 663.6 m | 659.7 m | 833.3 m |
| Gross profit | 101.6 m | 101.7 m | 100.2 m | 105.1 m | 107.5 m | 102.9 m | 107.1 m | 119.8 m |
| SG&A | 71.7 m | 73.9 m | 69.7 m | 71.6 m | 75.3 m | 78.1 m | 78.1 m | 81.7 m |
| Operating income | 17.6 m | 18.4 m | 22.3 m | 26.8 m | 25.9 m | 17.9 m | 23.1 m | 31.7 m |
| Depreciation & amortisation | 7.5 m | 8.1 m | 7.5 m | 7.1 m | 6.2 m | 5.9 m | 5.7 m | 5.8 m |
| Interest expense | 2.1 m | 2.0 m | 1.8 m | 2.1 m | 1.9 m | 1.9 m | 1.3 m | 1.4 m |
| Pre-tax income | 23.0 m | 19.7 m | 24.2 m | 27.5 m | 27.0 m | 19.4 m | 24.1 m | 33.3 m |
| Income tax | 6.0 m | 2.7 m | 6.8 m | 7.4 m | 7.1 m | 2.9 m | 7.2 m | 7.7 m |
| Net income | 17.0 m | 17.1 m | 17.4 m | 20.1 m | 19.9 m | 16.5 m | 16.9 m | 25.6 m |
| Diluted EPS | 0.69 | 0.70 | 0.74 | 0.88 ≈ | 0.89 | 0.75 | 0.78 | 1.24 ≈ |
| Operating cash flow | 44.8 m | -6.2 m ≈ | 66.1 m ≈ | 7.6 m | 23.2 m | 30.8 m ≈ | 71.4 m ≈ | -2.3 m |
| Capex | 2.4 m | 2.0 m | 1.4 m | 2.5 m | 2.4 m | 2.0 m | 2.4 m | 2.5 m |
| Share repurchases | 28.1 m | 24.2 m ≈ | 28.9 m ≈ | 25.3 m | 21.3 m | 17.4 m ≈ | 32.7 m ≈ | 26.5 m |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 63 percentile of its own 35-quarter history (min 7.5, median 14.5, max 69.4; quarters with earnings only).
Fiscal years
| Fiscal year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 3.2 bn | 3.0 bn | 3.2 bn | 3.5 bn | 3.8 bn | 3.3 bn | 3.0 bn | 3.2 bn |
| Revenue YoY | −15.5% | −6.2% | +3.4% | +12.0% | +7.3% | −13.9% | −6.7% | +6.1% |
| Net income | 57.6 m | -192.7 m | 10.8 m | 88.8 m | 89.8 m | 77.1 m | 71.5 m | 78.9 m |
| Net income YoY | +73.7% | −434.5% | unavailable | +722.6% | +1.1% | −14.2% | −7.2% | +10.2% |
| Diluted EPS | 2.24 | -7.59 | 0.42 | 3.45 | 3.54 | 3.06 | 3.00 | 3.64 |
| Diluted EPS YoY | +73.6% | −438.8% | unavailable | +721.4% | +2.6% | −13.6% | −2.0% | +21.3% |
| net % | 1.8% | -6.3% | 0.3% | 2.5% | 2.4% | 2.4% | 2.4% | 2.4% |
| Free cash flow | -32.9 m | unavailable | unavailable | unavailable | unavailable | 363.1 m | 104.1 m | 113.8 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2026 · 30 Jun 2026
- Cash
- 88.4 m USD
- Financial debt
- 101.4 m USD
- Net debt
- 13.0 m USD
- Equity
- 910.8 m USD
- Total assets
- 1.9 bn USD
- Debt / equity
- 0.11x
- Current ratio
- 1.76x
- ROE
- 8.7%
- ROA
- 4.2%
- FCF margin
- 3.5%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 3.2 bn | 3.5 bn | 3.8 bn | 3.3 bn | 3.0 bn | 3.2 bn | SEC (XBRL)· 20 Aug 2026verified |
| Cost of revenue | 2.8 bn | 3.1 bn | 3.3 bn | 2.9 bn | 2.6 bn | 2.8 bn | SEC (XBRL)· 20 Aug 2026verified |
| Gross profit | 350.7 m | 426.5 m | 449.2 m | 399.1 m | 408.6 m | 437.4 m | SEC (XBRL)· 20 Aug 2026verified |
| SG&A | 247.4 m | 275.4 m | 285.7 m | 277.4 m | 286.9 m | 313.2 m | SEC (XBRL)· 20 Aug 2026verified |
| Operating income | 61.5 m | 122.2 m | 135.9 m | 90.3 m | 85.2 m | 98.6 m | SEC (XBRL)· 20 Aug 2026verified |
| Depreciation & amortisation | 33.5 m | 29.9 m | 28.6 m | 28.0 m | 30.2 m | 23.6 m | SEC (XBRL)· 20 Aug 2026verified |
| EBITDA | 95.0 m ≈ | 152.1 m ≈ | 164.5 m ≈ | 118.3 m ≈ | 115.4 m ≈ | 122.3 m ≈ | SEC (XBRL)· 20 Aug 2026derived |
| Interest expense | 6.9 m | 6.5 m | 19.8 m | 13.0 m | 8.0 m | 6.6 m | SEC (XBRL)· 20 Aug 2026verified |
| Pre-tax income | 57.5 m | 118.6 m | 121.9 m | 99.8 m | 94.4 m | 103.7 m | SEC (XBRL)· 20 Aug 2026verified |
| Income tax | 12.1 m | 29.9 m | 33.8 m | 22.8 m | 22.8 m | 24.9 m | SEC (XBRL)· 20 Aug 2026verified |
| Net income | 10.8 m | 88.8 m | 89.8 m | 77.1 m | 71.5 m | 78.9 m | SEC (XBRL)· 20 Aug 2026verified |
| Diluted EPS | 0.42 | 3.45 | 3.54 | 3.06 | 3.00 | 3.64 | SEC (XBRL)· 20 Aug 2026verified |
| Weighted average diluted shares | 25.5 m | 25.8 m | 25.4 m | 25.2 m | 23.8 m | 21.7 m | SEC (XBRL)· 20 Aug 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 62.7 m | 38.0 m | 36.2 m | 185.5 m | 126.2 m | 88.4 m | SEC (XBRL)· 20 Aug 2026verified |
| Receivables | 569.0 m | 729.4 m | 753.2 m | 581.5 m | 635.5 m | 769.8 m | SEC (XBRL)· 20 Aug 2026verified |
| Inventories | 470.1 m | 614.8 m | 757.6 m | 512.6 m | 483.8 m | 522.4 m | SEC (XBRL)· 20 Aug 2026verified |
| Current assets | 1.2 bn | 1.5 bn | 1.7 bn | 1.4 bn | 1.4 bn | 1.5 bn | SEC (XBRL)· 20 Aug 2026verified |
| Property, plant & equipment, net | 42.8 m | 37.5 m | 37.4 m | 33.5 m | 31.2 m | 34.9 m | SEC (XBRL)· 20 Aug 2026verified |
| Goodwill | 218.9 m | 214.4 m | 216.7 m | 206.3 m | 230.8 m | 244.9 m | SEC (XBRL)· 20 Aug 2026verified |
| Intangibles (excl. goodwill) | 104.9 m | 84.4 m | 68.5 m | 37.6 m | 62.9 m | 64.4 m | SEC (XBRL)· 20 Aug 2026verified |
| Total assets | 1.7 bn | 1.9 bn | 2.1 bn | 1.8 bn | 1.8 bn | 1.9 bn | SEC (XBRL)· 20 Aug 2026verified |
| Accounts payable | 634.8 m | 714.2 m | 691.1 m | 588.0 m | 598.6 m | 753.3 m | SEC (XBRL)· 20 Aug 2026verified |
| Short-term debt | 7.8 m | 11.6 m | 6.9 m | 7.9 m | 7.9 m | 2.9 m | SEC (XBRL)· 20 Aug 2026verified |
| Long-term debt | 135.3 m | 123.7 m | 144.0 m | 136.1 m | 128.3 m | 98.5 m | SEC (XBRL)· 20 Aug 2026verified |
| Current liabilities | 732.9 m | 814.3 m | 786.8 m | 669.4 m | 683.0 m | 859.1 m | SEC (XBRL)· 20 Aug 2026verified |
| Total liabilities | 940.5 m | 1.1 bn | 1.2 bn | 854.8 m | 879.2 m | 1.0 bn | SEC (XBRL)· 20 Aug 2026verified |
| Equity | 731.2 m † | 806.5 m † | 905.3 m † | 924.3 m † | 906.4 m † | 910.8 m † | SEC (XBRL)· 20 Aug 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | — | — | — | 371.6 m | 112.3 m | 123.1 m | SEC (XBRL)· 20 Aug 2026verified |
| Capex | 2.4 m | 6.8 m | 10.0 m | 8.6 m | 8.3 m | 9.3 m | SEC (XBRL)· 20 Aug 2026verified |
| Free cash flow | — | — | — | 363.1 m ≈ | 104.1 m ≈ | 113.8 m ≈ | SEC (XBRL)· 20 Aug 2026derived |
| Investing cash flow | — | — | — | 9.0 m | -62.4 m | -27.5 m | SEC (XBRL)· 20 Aug 2026verified |
| Financing cash flow | — | — | — | -227.8 m | -110.9 m | -134.5 m | SEC (XBRL)· 20 Aug 2026verified |
| Share repurchases | 0 | 18.2 m | 15.7 m | 42.9 m | 106.5 m | 97.9 m | SEC (XBRL)· 20 Aug 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 64 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 1.1 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation68
- Returns100
- Quality64
- Balance sheet96
- Growth3
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 44.77 – 100.43 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)64.56 – 100.43 (Mid 78.33)WACC 8.9% · starting FCFF 118.9 m USD · terminal value share of EV 73%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): -17.4%
- Peers: EV/EBITDA44.77 – 80.80 (Mid 47.38)3 companies used · median multiple 7.9x · quartiles 7.5x – 13.4xCLMB, INGM, SNX
- Peers: P/E50.24 – 71.62 (Mid 60.09)4 companies used · median multiple 16.5x · quartiles 13.8x – 19.7xCNXN, INGM, PLUS, SNX
- Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 64/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 8.1% | 47 (on a fixed band) | 11% |
| Net margin · Quality | 2.4% | 57 (vs peers) | 7% |
| FCF conversion · Quality | 144.3% | 100 (on a fixed band) | 7% |
| Revenue CAGR 3Y · Growth | -5.2% | 0 (on a fixed band) | 9% |
| EPS CAGR 3Y · Growth | 0.9% | 6 (on a fixed band) | 9% |
| Net debt / EBITDA · Balance sheet | 0.1x | 100 (on a fixed band) | 11% |
| Interest coverage · Balance sheet | 15.0x | 100 (on a fixed band) | 7% |
| Current ratio · Balance sheet | 1.8x | 80 (on a fixed band) | 4% |
| P/E (TTM) · Valuation | 15.7x | 60 (vs peers) | 11% |
| EV/EBITDA · Valuation | 9.5x | 50 (on a fixed band) | 11% |
| FCF yield · Valuation | 9.9% | 100 (on a fixed band) | 9% |
| Shareholder yield (distributions) · Returns | 8.5% | 100 (on a fixed band) | 7% |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet96/100 · 3/3 factors with a value
- Growth3/100 · 2/2 factors with a value
- Quality64/100 · 3/3 factors with a value
- Returns· partial100/100 · 1/2 factors with a value
- Valuation68/100 · 3/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
ScanSource, Inc. (SCSC). Latest full fiscal year: 2026; data up to 2026-06-30.
Figures computed from the financial statements: revenue 3.2 bn USD in 2026; YoY growth 6.1%; net margin 2.4%; ROE 8.7%; net debt/EBITDA 0.1x.
The estimated value range is 50.24–80.80 USD per share (median of 3 methods, agreement: medium); assumptions are illustrative. Against the central value of 60.09 USD, the price of 56.98 USD leaves a potential of 5.5% (value / price − 1) and a margin of safety of 5.2% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 64/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: returns. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 144.3%
- Net debt / EBITDA: 0.1x
- Interest coverage: 15.0x
- Current ratio: 1.8x
- FCF yield: 9.9%
- Shareholder yield (distributions): 8.5%
What contradicts it
- Revenue CAGR 3Y: -5.2%
- EPS CAGR 3Y: 0.9%
Not assessed (insufficient data or a ratio without meaning): Payout ratio (FCF).
Versus the vertical median
Wholesale-Computers & Peripheral Equipment & Software (SIC 5045) · same industry (4-digit SIC) · compared with 7 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| SNXTd Synnex Corporation | 18.4 bn | 14.0 | 14.9% | 1.8% | +6.9% | +51% / +134% |
| INGMIngram Micro Holding Corp | 6.0 bn | 13.2 | 10.9% | 0.8% | +9.5% | +22% / unavailable |
| PLUSePlus inc. | 2.4 bn | 19.0 | 12.0% | 5.1% | +22.1% | +1% / +43% |
| CNXNPc Connection, Inc. | 2.2 bn | 21.7 | 10.9% | 3.3% | +2.5% | +51% / +47% |
| SCSCScanSource, Inc. | 1.1 bn | 15.7 | 8.7% | 2.4% | +6.1% | +39% / +78% |
| CLMBClimb Global Solutions, Inc. | 803.2 m | 33.8 | 19.5% | 3.1% | +40.1% | +70% / +261% |
| CGTLCreative Global Technology Holdings Limited | 56.2 m | — | -84.9% | -63.2% | −40.6% | −79% / unavailable |
| PNSkycorp Solar Group Limited | — | — | -14.9% | -4.3% | +27.0% | −85% / unavailable |
1- and 3-year price returns: for SCSC from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 32.77 Total return -42% · Per year -42% | 58.23 Total return 2% · Per year 2% | 88.11 Total return 55% · Per year 55% |
| 3 years | 26.02 Total return -54% · Per year -23% | 52.55 Total return -8% · Per year -3% | 88.11 Total return 55% · Per year 16% |
| 5 years | 20.66 Total return -64% · Per year -18% | 47.43 Total return -17% · Per year -4% | 88.11 Total return 55% · Per year 9% |
- Exit P/E± 13.14
- Net margin± 9.20
- Annual revenue growth± 8.31
- Annual dilution± 0.77
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
ScanSource distributes hardware, SaaS, connectivity and cloud services from more than 500 suppliers to a channel of sales partners, mainly in the United States and Brazil. Net sales reached 3.23 billion USD in fiscal 2026, and the August 2026 agreement to acquire MicroAge could change the company's margin and services profile if the deal closes.
SWOT
Strengths
- The company has a broad channel partner base and a supplier roster of more than 500, giving it a diversified product base. Its multiple sales models let it adapt the offer to each type of partner.
- Recurring revenue has grown and makes up a rising share of gross profit, which could stabilize results over the long term.
- The company describes its balance sheet as strong, with capacity to fund organic growth and acquisitions.
Weaknesses
- Operating margin remains small, which leaves little room for cost or pricing errors.
- Dependence on a few key suppliers means changes in terms or supply interruptions can have a major effect on results.
- Information systems were disrupted by a past ransomware incident, and the risk of interruption remains a sensitive point.
Opportunities
- The MicroAge acquisition could add higher-margin IT services and expand activity in cloud, cybersecurity and artificial intelligence.
- Growth in recurring services could reduce dependence on hardware sales cycles.
- If suppliers reduce their distributor count, the company could win additional distribution rights.
Threats
- Tariffs and shifts in trade policy could raise costs and slow demand.
- Competition for distribution rights may intensify, affecting commercial terms.
- Credit risk toward large channel partners could lead to losses if their businesses deteriorate.
Risks
- Dependence on key suppliershigh
A significant share of sales comes from a few suppliers. Changes in terms or termination of agreements could affect margins and revenue.
- Tariffs and international tradehigh
Tariffs and policy changes affecting Asia, where suppliers make part of the goods, could disrupt supply chains and raise costs.
- Acquisition integrationmedium
If the MicroAge acquisition does not close or is not integrated well, the company could fail to realize the expected synergies.
- Partner credit riskmedium
The company has credit exposure to channel partners. A deterioration in their businesses could lead to losses.
- IT systems and securitymedium
The company depends on IT systems for orders and reporting. A security incident, such as the one in 2023, could interrupt operations.
Investment thesis
What would need to be true (bull case)
- Rising recurring revenue and gross margin could make profit more stable, and the MicroAge acquisition could add higher-margin services.
- Fiscal 2027 guidance points to sales growth of 6% to 10%, which, if achieved, would show continued expansion.
- Its position in the channel and the diversity of its supplier base provide a solid basis for organic growth.
What would break the thesis
- Margins remain very thin, and a drop in volumes or price pressure could quickly reduce profitability.
- Dependence on a few suppliers and trade tariffs could hurt results, especially if conditions change abruptly.
- The MicroAge acquisition carries integration risks, and if synergies do not materialize the added value could be smaller than announced.
What to watch
- Closing of the MicroAge acquisition and regulatory approvalsQ3 2026
- Delivery of fiscal 2027 guidance for sales growth and adjusted EBITDA2027
- Trend in recurring revenue and its share of gross profitnext 10-K
- Effect of tariffs and trade policy on supplier prices and demandQ1 2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
ScanSource, Inc. is a technology distributor that connects suppliers of hardware, software as a service (SaaS), connectivity and cloud services with channel sales partners such as VARs, advisors, ISOs, ISVs and managed service providers. The company operates primarily in the United States and Brazil and serves about 25,000 partners, offering more than 65,000 products. Its model rests on two operating segments, Specialty Technology Solutions and Intelisys & Advisory, which reflect different sales approaches.
On 20 August 2026 the company announced an agreement to acquire MicroAge, an IT solutions integrator and managed services provider with about 2,400 US clients, for a purchase price of 220.5 million USD payable in cash at closing. The transaction is expected to close in the quarter ending 30 September 2026, subject to regulatory approval. Fiscal 2027 guidance excludes this acquisition.
Segments
Intelisys & Advisory
This segment operates primarily in the United States through an agency model for connectivity, cloud and next-generation technologies, and also includes advisory services for end users. Net sales rose 3.1% in fiscal 2026, and the gross margin is very high because revenue is recorded net. The key driver is recurring billings from suppliers, estimated at about 2.88 billion USD.
Market context
Technology distribution in the United States and Brazil acts as an intermediary between manufacturers and integrators, consultants and service providers. Demand depends on business investment in equipment for warehousing, retail, payments and security, as well as on adoption of cloud services and connectivity. The market is fragmented, and distributors add value through supplier breadth, partner financing and configuration and integration services.
Growth in recurring revenue from SaaS, connectivity and cloud services shifts the revenue model toward repeat contracts. If this trend continues, margins could become more stable even when hardware sales remain volatile. The MicroAge acquisition points toward managed IT services and cloud, where demand is supported by digitalization.
Trends
- Tariffs and trade uncertaintyheadwind
Tariffs remain a source of uncertainty: the company notes that some duties still apply and that the administration has indicated it will seek other legal bases for new tariffs. The company expects to pass supplier price increases to its partners, but cannot predict the final effect on demand.
- Shift toward recurring servicestailwind
Recurring revenue grew 10.6% in fiscal 2026 and its share of gross profit increased. If this continues, margins could depend less on the hardware sales cycle.
- Hardware demand in the fourth quartermixed
In the fourth quarter of fiscal 2026 sales rose 17.3%, driven by hardware demand in North America. Such momentum may not repeat if end-user demand slows.
- Supplier consolidationmixed
Suppliers are merging and reducing the number of distributors they work with, which could intensify competition for distribution rights. For the company this can be either an opportunity or a pressure, depending on contract terms.
Competitive position
The source does not identify competitors in detail, but describes competition as intense among distributors seeking the same suppliers. The company ties its advantage to its channel partner relationships and its ability to offer configuration, financing and technical support. Competition is likely to rise when suppliers cut the number of distributors.
In managed IT services, the MicroAge acquisition places the company in a space where integrators and managed service providers already operate. If the deal closes, its competitive position may depend on integrating these capabilities and retaining clients.
- US technology distributors competing for the same suppliers
The source does not name competitors with tickers; it refers only to competition for distribution rights.
- IT integrators and managed service providers
Companies in this category are the target of the MicroAge acquisition, but the source does not name them.
- Suppliers selling directly to resellers
The source says some suppliers may shift to direct distribution or their own dealer networks.
- Other regional distributors in Brazil
The source gives no detail on Brazilian competitors but mentions the presence of local operations.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- MicroAge Deal Signals Shift to Growth-Focused Strategy for ScanSource (SCSC)Yahoo Finance — News · 16 Sept 2026 · EN
- ScanSource (SCSC) Bets $220M On A Bigger IT FootprintYahoo Finance — News · 16 Sept 2026 · EN
- ScanSource (SCSC) Just Posted Record Earnings And A Big AcquisitionYahoo Finance — News · 28 Aug 2026 · EN
The latest news item in our archive is from 16 Sept 2026; the newest SEC filing is from 26 Oct 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Proxy statement26 Oct 2026
- Current report02 Sept 2026Creation of a direct financial obligation · Regulation FD disclosure · Financial statements and exhibits
- Annual report20 Aug 2026
- Current report20 Aug 2026Material agreement · Results of operations · Financial statements and exhibits
- Current report17 Aug 2026Departure or appointment of officers · Financial statements and exhibits
- Current report29 May 2026Departure or appointment of officers
- Quarterly report07 May 2026
- Current report07 May 2026Results of operations · Financial statements and exhibits
- Current report12 Mar 2026Departure or appointment of officers
- Quarterly report05 Feb 2026
Sources
- [1] Form 10-K, fiscal year ended 2026-06-30 · SEC / ScanSource, Inc. · 20 Aug 2026
- [2] Form 8-K, results release (exhibit 99.1) · SEC / ScanSource, Inc. · 20 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.