ScanSource Reports $3.04 Billion in Net Sales for Fiscal Year Ending June 30, 2025

ScanSource, Inc. reported a net sales figure of $3.04 billion for the fiscal year ending June 30, 2025, reflecting a decrease of 6.7% from the previous year's total of $3.26 billion. The decline was primarily attributed to a cautious technology spending environment, particularly in the first half of the fiscal year. The company's gross profit increased to $408.6 million, up 2.4% from $399.1 million in the prior year, resulting in a gross margin of 13.4%, compared to 12.2% in 2024. Operating income for the year was $85.2 million, a decrease of 5.7% from $90.3 million in the previous year, maintaining an operating margin of 2.8%.

Significant changes in the company's operations included the realignment of its business segments effective July 1, 2024, into Specialty Technology Solutions and Intelisys & Advisory. This restructuring aimed to enhance the company's technology distribution growth strategy. Additionally, ScanSource completed two acquisitions in August 2024: Resourcive, a technology advisor, and Advantix, a managed connectivity provider, which contributed to the Intelisys & Advisory segment's revenue growth of 6.3% to $98.1 million.

Operationally, ScanSource served approximately 25,000 channel sales partners, with a notable decline in international sales, which fell by 29.1% to $240.1 million. The U.S. market also saw a decrease of 4.1% in sales, totaling $2.8 billion. The company reported an employee headcount of approximately 2,100 as of June 30, 2025, with no organized labor or trade unions in the U.S. The company’s cash and cash equivalents stood at $126.2 million, down from $185.5 million in the previous year, reflecting a decrease in cash provided by operating activities.

Looking ahead, ScanSource anticipates continued challenges due to macroeconomic factors, including inflation and tariffs, which may impact future performance. The company is actively monitoring these conditions and has implemented strategic planning to maintain financial flexibility. The effective tax rate for fiscal year 2026 is projected to be between 27.2% and 28.2%, influenced by recent changes in tax legislation. Overall, while the company faces headwinds, it remains focused on leveraging its acquisitions and operational efficiencies to drive future growth.