ScanSource Reports 8.8% Increase in Net Sales to $766.8 Million for Quarter Ended March 31, 2026

ScanSource, Inc. reported its financial results for the quarter and nine months ended March 31, 2026, revealing a net sales increase of 8.8% to $766.8 million compared to $704.8 million in the same period last year. The company’s gross profit also rose by 6.9% to $107.1 million, with a gross margin of 14.0%. Operating income for the quarter was $23.1 million, reflecting a 3.5% increase from $22.3 million in the prior year. For the nine months, net sales reached $2.27 billion, up 2.0% from $2.23 billion, while net income for the period was $53.3 million, compared to $51.5 million in the previous year.

The company experienced notable changes in its financial performance, particularly in its Specialty Technology Solutions segment, which saw a 9.2% increase in net sales to $740.8 million. This growth was attributed to increased demand across various technologies in North America. Conversely, the Intelisys & Advisory segment reported a slight decline in quarterly sales, down 1.5% to $26.0 million, primarily due to lower sales from Resourcive. The overall increase in net sales was also supported by a favorable foreign exchange impact, particularly in Brazil, where sales increased by 18.0%.

In terms of strategic developments, ScanSource completed the acquisition of DataXoom in October 2025, which contributed to the increase in goodwill and identifiable intangible assets. The company reported goodwill of $244.9 million as of March 31, 2026, up from $230.8 million at the end of the previous fiscal year. The acquisition aligns with ScanSource's strategy to enhance its technology distribution capabilities and expand its service offerings to channel partners.

Operationally, ScanSource reported a decrease in its employee headcount, with 20.8 million shares outstanding as of March 31, 2026, down from 22.2 million shares a year earlier. The company’s cash and cash equivalents totaled $120.3 million, a decrease from $126.2 million at the end of June 2025. The company also noted a decrease in its net investment in working capital, which fell to $468.4 million, reflecting improved management of accounts receivable and inventory levels.

Looking ahead, ScanSource remains cautious about the macroeconomic environment, including inflation and potential tariffs, which could impact its operations and financial performance. The company plans to continue monitoring these conditions and expects to pass through supplier price increases to its channel partners. Management anticipates that its existing liquidity, including cash flows from operations and access to credit facilities, will be sufficient to meet its working capital needs for the foreseeable future.