- ScanSource, Inc. (SCSC, Financial) reports a 6.3% drop in Q3 net sales, totaling $704.8 million.
- Despite the decrease in sales, GAAP net income rose 36.1% year-over-year to $17.4 million.
- The company announces a new $200 million share repurchase authorization.
ScanSource, Inc. (SCSC), a leading hybrid distributor connecting devices to the cloud, announced its financial results for the third quarter ending March 31, 2025, reporting a decline in net sales but a significant increase in net income. Net sales for the quarter reached $704.8 million, a 6.3% decrease from the previous year’s $752.6 million. The decline was attributed primarily to lower net sales in Brazil, despite positive growth in North America's technology sectors.
In contrast, the company's GAAP net income rose to $17.4 million, or $0.74 per diluted share, reflecting a 36.1% increase from the prior year’s $12.8 million, or $0.50 per diluted share. This increase was credited to improved gross profit margins and higher vendor program recognition. Gross profit for the quarter increased by 6.1% year-over-year to $100.2 million, with a gross margin of 14.2% compared to 12.6% last year.
The company also reported strong cash flow performance, generating $104.7 million of operating cash flow and $98.9 million of free cash flow over the first nine months of fiscal 2025. ScanSource continues to expand its strategic initiatives with a newly authorized $200 million share repurchase program, adding to the approximately $42 million remaining from an existing authorization.
Looking ahead, ScanSource has adjusted its annual financial outlook for fiscal year 2025, projecting net sales of approximately $3 billion and adjusted EBITDA between $140 million and $145 million. The company remains committed to maintaining its strategic growth plans and maximizing shareholder value through continued investments and share repurchases.
