ScanSource Inc
🔔 Watch stock
Assessment
Our Rating
A journalistic assessment by our editorial team at the time of the deep dive — it rates the company, not the entry point. Not investment advice and not a solicitation to buy or sell.
The business works in principle, but one material question is open. As long as it stays open, our findings do not carry a quality verdict.
Why this colour
We rate the underlying business quality Yellow — not because of the balance sheet, which is healthy with $910.8 million of equity against just roughly $101.4 million of debt, but because of two open operating questions. First: in the segment carrying 97% of revenue, estimated fair value covers $173.9 million of goodwill by just 2% at the latest annual test — the auditor itself names it a critical audit matter. Second: the highest-margin segment, Intelisys & Advisory, is not yet delivering the promised acceleration in new orders, by management's own admission — the countermeasure is fresh and unproven. In fairness: management demonstrably cleared its own, February 2026-cut guidance within six months, which speaks to reporting discipline, and the MicroAge acquisition looks well-fundable on the balance sheet. Whether and how quickly the thin goodwill cushion and the Intelisys promise resolve will only show up in coming quarterly reports. The decision is yours.
What the thesis turns on
Assessment: Opportunities & Risks
ScanSource cut its full-year guidance in February 2026 as large deals slipped, then clearly beat it on August 20, 2026 — revenue of $3,226.1 million, adjusted EBITDA of $151.5 million and, above all, free cash flow of $113.8 million against promised floors of $80 million and $90 million. On the same day, the company agreed to acquire MicroAge for $220.5 million, the largest deal in its history. Roughly half of the EPS growth comes from buybacks, not additional operating profit, and in the largest segment, fair value covers $173.9 million of goodwill by just 2%. Not investment advice.
Guidance discipline
February 2026's cut guidance was beaten on August 20, 2026 for revenue ($3,226.1M vs. $3,000-3,100M) and adjusted EBITDA ($151.5M vs. $140-150M), and clearly exceeded for free cash flow ($113.8M vs. promised at least $80M and later $90M).
Earnings quality
Net income rose 10.2% in fiscal 2026, EPS rose 21.3% — the gap comes almost entirely from a 9.0% decline in share count (buybacks of $97.9M), not additional operating profit.
Goodwill balance-sheet risk
In the largest segment (Specialty Technology Solutions, $173.9M goodwill), the fair-value cushion was just 2% at the latest impairment test — flagged by the auditor as a critical audit matter. No impairment yet, but little reserve.
Intelisys & Advisory growth mix
The high-margin commission business (roughly 40% EBITDA margin) is growing slower than management wants, by its own admission in May 2026; the countermeasure (a new sales unit) remains unproven.
Balance sheet & funding capacity
Equity of $910.8M against just roughly $101.4M of debt and $88.4M of cash (June 30, 2026); the MicroAge acquisition ($220.5M cash) and ongoing buybacks appear fundable from internal resources.
Concentration risk
Cisco and Zebra Technologies each accounted for more than 10% of net sales in fiscal 2026 per the 10-K — normal for a technology distributor, but a real dependency on two supplier relationships.
Worth Noting
The trigger for this analysis was the fiscal 2026 annual report (Form 10-K) filed 2026-08-20, released the same day as the MicroAge acquisition — not a hit in our in-house stock scanner.
Data date: fiscal 2026 Form 10-K (filed 2026-08-20) fully reviewed; all filings from the prior 10-Q through the 10-K and afterward (including SCHEDULE 13G/A, SCHEDULE 13G, Form 4) reviewed with no change to the picture; fundamental data and prices as of 2026-08-20.
A full transcript of the August 20, 2026 earnings call was not yet available at research time; the same-day, SEC-mandated results release was used instead, which matches the call's content.
The fiscal 2027 outlook (6-10% revenue growth, $158-165M adjusted EBITDA) does not yet include the MicroAge acquisition — it will likely be revised after closing, expected in the quarter ending September 30, 2026.
Stock Watch
This analysis is as of August 26, 2026. Stock Watch will tell you what's changed at SCSC since then.
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Price history
Chart
Interactive price chart (TradingView).
52-week range: 34.30 $ to 58.90 $ · Last price: 57.70 $ (As of: September 17, 2026)
Key figures
Key figures at a glance
Every figure we hold for this stock, grouped by topic. The question mark next to a label explains what the number means.
Basics
Performance
Technical Indicators
Calculated from the price history · as of 09/18/2026
Valuation
Profitability
Balance Sheet & Safety
Growth
Dividend
This stock currently pays no dividend.
Quality & Screener
Highlighted are things our editorial team noticed: green = stands out as strong, red = deserves a closer look. No single metric is a verdict on its own — always read it in context.
Comparison
Industry comparison
The stock alongside the largest companies in the same group. The median row is the middle value of the companies shown above — not of the whole industry.
Industry: Electronics & Computer Distribution
| Company | Market cap ($B) | P/E | EV/EBITDA | Gross Margin % | EBIT Margin % | Sales Growth (Year) % | Perf. 1Y % |
|---|---|---|---|---|---|---|---|
| ScanSource Inc SCSC | 1.2 | 17.1 | 8.9 | 13.6 | 3.1 | -6.7 | 31.2 |
| Synnex Corporation SNX | 21.4 | 17.9 | 11.0 | 7.0 | 2.7 | 6.9 | 79.9 |
| Arrow Electronics Inc ARW | 11.5 | 14.3 | 9.4 | 11.3 | 4.2 | 10.5 | 80.6 |
| Avnet Inc AVT | 7.6 | 33.7 | 12.8 | 10.4 | 3.1 | -6.6 | 81.7 |
| Insight Enterprises Inc NSIT | 4.5 | – | 12.1 | 22.1 | 5.2 | -5.2 | 29.5 |
| PC Connection Inc CNXN | 2.1 | – | 12.9 | 18.9 | – | 2.5 | 39.1 |
| Climb Global Solutions CLMB | 0.5 | – | 12.3 | 15.8 | – | 40.1 | -14.6 |
| Median of companies shown | 4.5 | 17.5 | 12.1 | 13.6 | 3.1 | 2.5 | 39.1 |
Based on the most recently reported figures. Only stocks from the same trading venue are lined up, so the market caps are counted in one currency. Compare in a chart →
Fiscal years
Annual Figures
Fiscal years from the audited annual reports, oldest first. EBIT is the operating profit before interest and taxes; total assets are everything the company owns.
Revenue, operating income and net income per fiscal year $M
Revenue Operating income Net income
| Fiscal Year | Revenue ($M) | EBIT ($M) | Net Income ($M) | EPS ($) | Operating Cash Flow ($M) | Equity ($M) | Total Assets ($M) |
|---|---|---|---|---|---|---|---|
| 2017 | 3,568 | 88 | 69 | 2.71 | 95 | 837 | 1,718 |
| 2018 | 3,846 | 68 | 33 | 1.29 | 28 | 866 | 1,945 |
| 2019 | 3,873 | 90 | 58 | 2.24 | -27 | 914 | 2,067 |
| 2020 | 3,048 | -65 | -193 | -7.59 | 226 | 678 | 1,692 |
| 2021 | 3,151 | 61 | 11 | 0.42 | 141 | 731 | 1,672 |
| 2022 | 3,530 | 122 | 89 | 3.45 | -124 | 807 | 1,937 |
| 2023 | 3,788 | 136 | 90 | 3.54 | -36 | 905 | 2,068 |
| 2024 | 3,260 | 90 | 77 | 3.06 | 372 | 924 | 1,779 |
| 2025 | 3,041 | 85 | 72 | 3.00 | 112 | 906 | 1,786 |
| 2026 | 3,226 | 99 | 79 | 3.64 | 123 | 911 | 1,932 |
Quarters
Quarterly Figures
Each bar is one quarter, the last one is the most recent. Use the switch to step through the individual figures.
Revenue & Profit
Cash Flow
Balance Sheet
Margins
Per Share
Click the chart or tab into it, then use ← and → to step through the periods.
None of the selected stocks reports this metric. Pick another metric or switch between annual and quarterly.
· Total · per year
These companies report in different currencies — switch on “Indexed” or pick a margin for a fair comparison.
The figures could not be loaded right now.
Source: fundamental data
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2024: Q4 | 0.70 | -45.50 | 748 | -15.50 | 2.30 | -6 | -8 |
| 2025: Q1 | 0.74 | 46.70 | 705 | -6.30 | 2.50 | 66 | 65 |
| 2025: Q2 | 0.85 | 31.80 | 813 | 8.90 | 2.50 | 8 | 5 |
| 2025: Q3 | 0.89 | 28.80 | 740 | -4.60 | 2.70 | 23 | 21 |
| 2025: Q4 | 0.75 | 5.90 | 767 | 2.50 | 2.20 | 31 | 29 |
| 2026: Q1 | 0.78 | 6.00 | 767 | 8.80 | 2.20 | 71 | 69 |
| 2026: Q2 | 1.22 | 43.50 | 953 | 17.20 | 2.70 | -2 | -2 |
What Do These Terms Mean?
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Screening
Appears in These Scanners
This stock currently matches 9 of our scanner strategies — each hit links to the scanner.
Growth
Quality & Balance Sheet
Momentum & Trend
Research
Only genuine hits from verified scanners count; pure ranking metrics (P/E, P/S, and similar, which just sort the whole universe) don't count as a hit. View all scanners
Outlook
Analysts & Price Target
Combined picture of the price targets and recommendations of every analyst covering the stock. Price targets are expectations for the next 12 months, not promises — and they often follow the price rather than predict it.
Distribution of Recommendations
Estimates by Fiscal Year
| Fiscal Year | EPS Estimate ($) | EPS Range ($) | Revenue Estimate ($M) | Expected Growth | Analysts |
|---|---|---|---|---|---|
| 06/30/2027 | 4.84 | 4.56 – 5.17 | 3,561 | 14.1% | 4 |
| 06/30/2028 | 5.69 | 4.78 – 7.11 | 3,756 | 17.7% | 4 |
Average of the analyst estimates for the coming fiscal years. The range shows how far the most optimistic and the most cautious estimate sit apart — the wider it is, the less certain the expectation.
Valuation
What is priced in?
Instead of guessing what the stock is worth, we turn the question around: what free cash flow growth has to happen for today’s market value to add up? The assumptions behind it can be moved.
Today’s market value implies roughly -1.4% growth in free cash flow per year over ten years (assumptions: discount rate 10.0%, terminal growth 2.5%).
| Free cash flow (last twelve months) | $113.8M |
|---|---|
| Market cap | $1.18B |
| Free cash flow in year ten | $98.9M |
| Terminal value as a share of market value | 44.3% |
For comparison: over the past five years free cash flow shrank by 3.9% per year.
It shows which assumption is built into today’s price, not whether that assumption will hold. Every assumption can be changed with the sliders; the figures move with them.
A simplified model calculation — not a forecast and not a recommendation.
AI classification
AI Rating
ScanSource fuehrt Infrastrukturprodukte fuer kuenstliche Intelligenz explizit als eigene Produktkategorie im Networking-Portfolio und listet „Managed AI“ als eigenen Technologiebereich im Intelisys & Advisory-Segment — beides laut Geschaeftsbeschreibung im 10-K nachweisliche Umsatzquellen des Vertriebsgeschaefts.
View the full file — quotes, sources, reviewed filings
„Our networking products include wireless, networking and artificial intelligence (“AI”) infrastructure products."
Unsere Netzwerkprodukte umfassen WLAN-, Netzwerk- und Infrastrukturprodukte für künstliche Intelligenz (KI).
10-K · 2026-08-20 · View SEC filing
„In addition to traditional telecom services, key technology areas include: Connectivity & SDN (Software-Defined Networking); CX (Unified Communications as a Service and Contact Center as a Service); Cloud/Data Center; Security; Managed AI; Wireless & IoT."
Neben klassischen Telekom-Diensten gehören zu den zentralen Technologiebereichen: Connectivity & SDN (Software-Defined Networking); CX (Unified Communications als Service und Contact-Center als Service); Cloud/Rechenzentrum; Sicherheit; Managed AI; WLAN & IoT.
10-K · 2026-08-20 · View SEC filing
„We are currently evaluating the development and use of artificial intelligence (“AI”) and the effect on the business environment. While we recognize the rapid development of AI and the potential impacts to the Company, any failure to properly implement AI and related practices and procedures with respect to the use of AI could harm our business, damage our reputation, or give rise to legal or regulatory action."
Wir prüfen derzeit die Entwicklung und Nutzung künstlicher Intelligenz („KI“) und deren Auswirkung auf das Geschäftsumfeld. Auch wenn wir die rasante Entwicklung der KI und die möglichen Folgen für das Unternehmen anerkennen, könnte eine fehlerhafte Umsetzung von KI und den zugehörigen Praktiken und Verfahren unserem Geschäft schaden, unserem Ruf schaden oder rechtliche bzw. regulatorische Schritte nach sich ziehen.
10-K · 2026-08-20 · View SEC filing
Filings Reviewed: 10-Q 2026-05-07 · 10-Q 2026-02-05 · 10-Q 2025-11-06 · 10-Q 2025-05-08 · 10-K 2026-08-20 · 10-K 2025-08-21
Rated on August 21, 2026 · How the Rating Is Built
Growth
Growth Score
Ten checks against the annual reports — each one passed counts a point.
- Revenue grows by more than 15% a year over three years -5.2%
- More than 10% revenue growth is expected for the coming year 4.0%
- Share count grows by less than 3% a year -5.1%
- Revenue growth plus cash-flow margin add up to at least 40 ("Rule of 40") 9.6%
- Gross margin at 40% or higher and without meaningful erosion 13.6%
- Goodwill from acquisitions does not grow faster than revenue 12.7%
- Net debt below twice EBITDA 0.2 x EBITDA
- Operating cash flow covers the profits of the last three years 380 m
- Return on capital at 15% or higher, or up versus two years ago 9.2%
- Insiders hold at least 10% or are net buyers 1.8%
A criterion without figures counts neither as passed nor as failed; a score is only produced from 7 judgeable criteria upwards. Source: fundamental data. All ten criteria in detail
Quality check
AAQS
4/10The AAQS (AlleAktien Quality Score) checks 10 quality criteria on growth, profitability, and balance-sheet strength — per the methodology developed and published by AlleAktien, calculated by us from our own fundamental data. A stock counts as a quality stock from 9 out of 10 points. Where a company has a shorter listing history, we calculate over the fiscal years available (at least five).
- Sales growth 10Y > 5% -1.1%
- Exp. sales growth 3Y > 5% 7.9%
- EBIT growth 10Y > 5% 1.2%
- Exp. EBIT growth 3Y > 5% 25.1%
- Net debt < 4x EBIT 0.2x
- EBIT positive, 10Y straight 9
- Max. EBIT decline < 50% 100.0%
- Return on equity > 15% 13.1%
- ROCE > 15% 9.2%
- Expected return > 10% 37.2%
View stocks with the full AAQS score · Read the methodology at AlleAktien
Source: fundamental data
Insiders
Insider Transactions
Reportable transactions by officers and major shareholders from SEC Form 4 filings. "Other" includes things like stock grants and option exercises without a buy/sell character.
| Date | Person | Role | Type | Shares | Price | Value |
|---|---|---|---|---|---|---|
| Sep 11, 2026 | Mathis Charles Alexander | Director | Sell | 3,000 | 58.00 | 174,000 |
| Sep 11, 2026 | Baur Michael L | CEO, President, BOD Chair | Sell | 48,816 | 58.14 | 2,838,162 |
| Sep 11, 2026 | Baur Michael L | CEO, President, BOD Chair | Sell | 6,692 | 57.71 | 386,195 |
| Sep 11, 2026 | Baur Michael L | CEO, President, BOD Chair | Sell | 1,851 | 56.50 | 104,582 |
| Sep 11, 2026 | Baur Michael L | CEO, President, BOD Chair | Other | 57,359 | 37.00 | 2,122,283 |
| Sep 10, 2026 | Baur Michael L | CEO, President, BOD Chair | Sell | 1,900 | 57.03 | 108,357 |
| Sep 10, 2026 | Baur Michael L | CEO, President, BOD Chair | Sell | 18,080 | 55.39 | 1,001,451 |
| Sep 10, 2026 | Baur Michael L | CEO, President, BOD Chair | Other | 19,980 | 37.00 | 739,260 |
| Sep 4, 2026 | Ford Brandy | SVP & Chief Accounting Officer | Sell | 34 | 58.04 | 1,973 |
| Sep 4, 2026 | Ford Brandy | SVP & Chief Accounting Officer | Sell | 5,259 | 57.43 | 302,024 |
The company
About the Company
ScanSource, Inc. beschäftigt sich mit dem Vertrieb von Technologieprodukten und -lösungen in den USA und international.
- CEO Insider Trades (12 Mo.)
- selling own stock
- Employees
- 2,100
- Headquarters
- Greenville, SC
- Address
- 6 Logue Court, 29615 Greenville, United States
- Phone
- 800 944 2432
- Website
- scansource.com
- IPO Date
- 03/18/1994
- ISIN
- US8060371072
- Stock Split
- 2:1 on 06/06/2006
- Stock Split
- 2:1 on 01/29/2003
Management
| Name | Title | Birth Year |
|---|---|---|
| Michael L. Baur | Founder, Chairman, CEO & President | 1957 |
| Stephen T. Jones | Senior EVP & CFO | 1972 |
| Shana Cochrane Smith | Senior EVP, Chief Legal Officer & Corporate Secretary | 1973 |
| Alexandre M. Conde | Senior Executive Vice President of Strategy | – |
| Brandy Ford | Senior VP, Chief Accounting Officer & Corporate Controller | 1980 |
| Mary M. Gentry | Vice President of Investor Relations & Treasurer | – |
| Michael Reed Webb B.Sc. | Senior Executive VP & Chief Human Resources Officer | 1968 |
| Mark Morgan | President of Specialty Technologies | – |
| Tony Sorrentino | President of North America Hardware Business | – |
| Rich Long | President of Communications for US & Canada | – |
Executives per the latest required filings; titles kept in their original language. Source: fundamental data.
Filings
Company Filings (8-K)
An 8-K is the filing a US company must use to disclose material events immediately — takeovers, changes at the top, major contracts or payment troubles, for instance. The links open the original document at the US Securities and Exchange Commission (SEC).
- 09/02/2026 SCANSOURCE, INC. (SCSC): Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant; Regulation FD Disclosure; Financial Statements and Exhibits SEC ↗
- 08/20/2026 SCANSOURCE, INC. (SCSC): Entry into a Material Definitive Agreement; Results of Operations and Financial Condition; Financial Statements and Exhibits SEC ↗
- 08/17/2026 SCANSOURCE, INC. (SCSC): Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers; Financial Statements and Exhibits SEC ↗
Data as of: September 17, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.