Q3 2025 Scansource Inc Earnings Call Transcript
Key Points
- ScanSource Inc (SCSC) achieved year-over-year gross profit growth and higher EBITDA margins across all segments.
- The company expanded roles for business presidents to include strategy, acquisitions, and setting IT and finance priorities, supporting accelerated profitable growth.
- Hardware demand improved with the return of large deals, and most technologies in North America grew year-over-year.
- The Integrated Solutions Group, launched with the acquisition of Advantix, continued to grow, particularly in wireless connectivity solutions.
- The company announced a new share repurchase authorization of $200 million, indicating confidence in its financial position and future growth prospects.
- Net sales declined 6% year-over-year, primarily due to lower sales in Brazil and FX headwinds.
- The Specialty Technology Solutions segment saw a 7% year-over-year decline in net sales.
- Brazil's performance was impacted by macroeconomic issues, FX challenges, and netted down revenue, affecting overall sales.
- Despite optimism, North America's year-over-year performance showed a substantial decrease, with some technologies still in decline.
- The company did not raise its free cash flow guidance, indicating potential challenges in cash flow management for Q4.
Welcome to the ScanSource quarterly earnings conference call. (Operator Instructions) Today's call is being recorded.
(Operator Instructions) I would now like to turn the call over to Mary Gentry, Senior Vice President, Finance and Treasurer. Ma'am, you may begin.
Good morning, and thank you for joining us. Our call will include prepared remarks from Mike Baur, our Chair and CEO; and Steve Jones, our Chief Financial Officer. We will review our operating results for the quarter and then take your questions.
We posted an earnings infographic that accompanies our comments and webcast in the investor relations section of our website. As you know, certain statements in our press release, infographic and on this call are forward-looking statements and subject to risks and uncertainties that could cause actual results to differ materially from expectations.
These risks and uncertainties include the factors identified in our earnings release and in our Form 10-K for
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