ScanSource Raises Fiscal 2027 Sales and Ebitda Outlook

The Tip Desk · November 11, 2026 · 3 min read

First-quarter net sales reached $962.3 million, up 30.1% from a year earlier, as the company lifted full-year adjusted EBITDA to $175 million–$185 million.

ScanSource, Inc. (SCSC), a technology distributor, reported first-quarter net sales of $962.3 million for the period ended September 30, 2026, up 30.1% from a year earlier, a faster pace than the 17.3% year-over-year increase in the immediately preceding quarter.

The company said top-line demand was strong and that it grew net sales and gross profit in both reportable segments. Non-GAAP sales growth, which excludes foreign-currency translation and acquisitions, was 26.8%. Products and services sales rose 30.8% year-over-year. Recurring revenue increased 15.7%.

Specialty Technology Solutions, the larger of the two segments, posted net sales of $917.3 million, up 28.2% year-over-year, which the company attributed to broad-based growth in North America. On a non-GAAP basis the segment rose 27.5%. United States and Canada sales were $914.0 million, up 34.0% reported and 30.7% excluding acquisitions. Brazil sales were $48.3 million, down 15.9% reported and 20.5% on a non-GAAP basis.

Intelisys & Solution Services net sales were $45.0 million, up 85.9% year-over-year including the MicroAge acquisition. Excluding acquisitions, the segment grew 3.2% on a non-GAAP basis. On September 1, 2026, ScanSource completed the purchase of MicroAge, an IT solutions integrator and managed-services provider with about 2,400 U.S. clients and more than 200 employees. Cash paid for acquisitions, net of cash acquired, was $217.8 million in the quarter.

Gross profit was $116.9 million, up 8.8% year-over-year. The gross profit margin was 12.2%, down 238 basis points from 14.5% a year earlier. The company said the margin decline reflected sales mix, strong hardware demand and a higher mix of lower-margin, large deals. Recurring revenue accounted for 32.8% of gross profit.

Operating income fell 52.2% year-over-year to $12.4 million from $25.9 million, reversing the 18.5% year-over-year increase to $31.7 million in the prior quarter. Results included about $4.5 million of higher bad-debt expense, primarily related to specific customer credit exposures in Brazil, which reduced diluted EPS by about $0.16. Non-GAAP operating income was $23.0 million.

GAAP net income declined 56.3% year-over-year to $8.7 million, or $0.42 a share, from $19.9 million, or $0.89 a share. Non-GAAP net income was $17.7 million, or $0.86 a share. Adjusted EBITDA decreased 18.9% year-over-year to $31.3 million, or 3.25% of sales, from $38.6 million, or 5.22% of sales.

Operating cash flow was a $42.3 million use, compared with $23.2 million provided a year earlier. Free cash flow was a $44.1 million use. The company said the cash outflows primarily reflected working-capital investments to support growth. Cash and cash equivalents ended at $45.9 million. Total debt was $332.4 million. Share repurchases were $4.8 million.

ScanSource raised its fiscal 2027 outlook to include MicroAge. It now expects net sales of $3.8 billion to $4.0 billion, or 6% to 10% year-over-year growth, and adjusted EBITDA of $175 million to $185 million, replacing prior adjusted EBITDA guidance of $158 million to $165 million. Free cash flow guidance remained at least $85 million.