Overview

• U.S. technology distributor's fiscal Q3 net sales rose 8.8%, beating analyst expectations

• Adjusted EPS for fiscal Q3 beat analyst expectations

• Company raised full-year free cash flow outlook, reaffirmed net sales and adjusted EBITDA guidance

Outlook

• ScanSource sees FY26 net sales of $3.0 bln to $3.1 bln

• Company expects FY26 adjusted EBITDA of $140 mln to $150 mln

• ScanSource raises FY26 free cash flow outlook to at least $90 mln from at least $80 mln

Result Drivers

• SPECIALTY TECHNOLOGY SOLUTIONS - Growth across most technologies in North America drove higher segment sales

• PRODUCTS AND SERVICES - Net sales for products and services rose 9.1% year-over-year

• RECURRING REVENUE - Recurring revenue increased 3.6% year-over-year, including acquisitions

Company press release: ID:nBw8YxB6Ra

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q3 Sales	Beat	$766.79 mln	$722.91 mln (3 Analysts)
Q3 Adjusted EPS	Beat	$0.94	$0.92 (4 Analysts)
Q3 Adjusted Net Income		$20.37 mln

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

• Wall Street's median 12-month price target for Scansource Inc is $50.00, about 22.2% above its May 6 closing price of $40.93

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

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