Earnings Releases·Nov 5, 2026, 8:30 AM ET

ScanSource — Q1 FY27 Earnings Summary

Net sales rose 30.1% year-over-year to $962.3 million, though gross profit margin contracted to 12.2% from 14.5% due to a higher mix of lower-margin hardware deals; GAAP net income fell to $8.7 million ($0.42 EPS) and non-GAAP net income to $17.7 million ($0.86 EPS), with a $4.5 million bad debt expense in Brazil reducing diluted EPS by $0.16.
The company raised full-year fiscal 2027 net sales guidance to $3.8–$4.0 billion and adjusted EBITDA guidance to $175–$185 million, while maintaining free cash flow guidance at a minimum of $85 million, reflecting the impact of the MicroAge acquisition closed September 1, 2026.
Strategic growth was driven by the MicroAge acquisition, which added higher-margin cloud, cybersecurity, and AI capabilities to the Intelisys & Solution Services segment (up 85.9% year-over-year including acquisition), while the Specialty Technology Solutions segment grew 28.2% year-over-year.
Capital allocation included $4.8 million in share repurchases, while operating and free cash flow were uses of $42.3 million and $44.1 million respectively, primarily driven by working capital investments and increased provisions for doubtful accounts.