Short answer
SCANSOURCE, INC. (SCSC) filed its fiscal 2026 10-K annual report with the SEC on Aug 20, 2026. It reported revenue of $3.2B (+6.1% year over year) and net income of $79M.
- Top risk flagged: Regulatory risk U.S. Foreign Corrupt Practices Act and Iran Threat Reduction and Syria Human Rights Act compliance risks in Brazil’s complex market
FY2026 key financial metrics · XBRL
- Revenue
- $3.2B
- +6.1% YoY
- Net income
- $79M
- +10.2% YoY
- Operating margin
- 3.1%
- +0.3 pp YoY
- Gross margin
- 13.6%
- +0.1 pp YoY
- EPS (diluted)
- $3.64
- +21.3% YoY
- ROE
- 8.7%
- +0.8 pp YoY
- Operating cash flow
- $123M
- +9.6% YoY
Source: XBRL data from the SCANSOURCE, INC. (SCSC) FY2026 10-K on SEC EDGAR. USD.
SCANSOURCE, INC. FY2026 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Technology distributor offering converged hardware, SaaS, connectivity, cloud services primarily in US and Brazil; net sales $3.23B FY2026
- Emphasized expansion of Intelisys & Advisory segment including Managed AI, connectivity, cloud, and security services with recurring revenue
- Strategic focus on converging complex technologies via multiple sales models to enable channel partners growth and operational excellence
- Workforce of approximately 2,100 employees, with ongoing investments in employee development programs like ScanSource Leadership Institute
- Introduced SourceHub shared services model to enhance operational efficiencies across North America and Brazil in FY2026
Management Discussion & Analysis
- Revenue $3.23B, up 6.1% YoY ($185.3M); Specialty Technology Solutions best performing segment, up 6.2% ($182.2M); Intelisys & Advisory up 3.1% ($3.0M); international sales down 5.6% ($13.5M)
- Operating margin 3.1% vs 2.8%; Specialty Technology Solutions operating margin 2.4% vs 2.2%; Intelisys & Advisory margin 28.3% vs 27.7%; gross margin 13.6% vs 13.4%
- Net income margin stable at 2.4%; adjusted EBITDA $151.5M vs $144.7M; adjusted ROIC increased to 14.7% from 13.6%
- Operating cash flow $123.1M vs $112.3M; capital expenditures $27.5M vs $62.4M; share repurchases $97.5M in fiscal 2026 with $120.8M remaining authorization; cash $88.4M vs $126.2M year-end
- Management notes macroeconomic uncertainty, tariffs, and geopolitical risks; expects capital expenditures $8-$12M in 2027 for IT and warehouses; credit facility of $400M revolving and $100M term loan with financial covenant compliance
Risk Factors
- Regulatory risk U.S. Foreign Corrupt Practices Act and Iran Threat Reduction and Syria Human Rights Act compliance risks in Brazil’s complex market
- Macroeconomic threat 7% revenue exposure in Brazil with risks from political volatility, inflation, and tariff impacts on supply chain and demand
- Supply chain vulnerability reliance on few suppliers like Cisco and Zebra, shortages of computer chips causing product constraints and potential delays
- Competitive risk intense competition from broad-line distributors and technology solutions firms could reduce margins and erode market share
- Financial risk multi-currency senior secured credit facility with leverage and interest coverage covenants subject to risks of default and higher borrowing costs
Generated from the filing text; verify against the original. How to read a 10-K
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