ScanSource, Inc. is a leading technology distributor uniquely positioned to address complex, converging technologies and to accelerate growth for channel sales partners across hardware, software as a service, connectivity and cloud services. The company operates primarily in the United States and Brazil, providing technology solutions and services from more than 500 leading suppliers of mobility and barcode, point-of-sale, payment terminals, physical security, networking, communications, connectivity and cloud services. The market for technology products and solutions is highly competitive, both in the United States and internationally, with competitive factors including price, product availability, speed and accuracy of delivery, effectiveness of sales and marketing programs, credit availability, ability to tailor specific solutions to channel sales partner needs, quality and breadth of product lines and services and availability of technical and product information. Competition has increased over the last several years as broad-line and other value-added distributors have entered the specialty technology markets.

ScanSource believes it is a leader in the specialty technology markets it serves. In the Specialty Technology Solutions segment, the company competes with broad-line distributors such as Ingram Micro and TD Synnex in most geographic areas, and more specialized security distributors such as ADI and Wesco, as well as other more specialized AIDC and POS distributors such as BlueStar. In the Intelisys & Advisory segment, the company competes against other technology service distributors including Avant and Telarus. The company's channel sales partner and supplier relationships serve as competitive advantages, and the company's real competitive advantage is its people. No single channel sales partner accounted for more than 10% of total net sales for the fiscal year ended June 30, 2026.

ScanSource generates revenue through multiple sales models, offering technology solutions from leading suppliers of specialty technologies, connectivity and cloud services. The company's two operating segments, Specialty Technology Solutions and Intelisys & Advisory, represent the different sales models used in executing its technology growth strategy. Both segments include recurring revenue. The company serves approximately 25,000 channel sales partners, which include value-added resellers, advisors, independent sales organizations, independent software vendors, and managed service providers. Net sales for the fiscal year ended June 30, 2026 totaled $3.23 billion.

The Specialty Technology Solutions segment operates primarily in the United States and Brazil and includes specialty technology solutions distributed through a wholesale/resale sales model, encompassing hardware, SaaS and subscription services. This segment includes mobility and barcode, point-of-sale systems, payment terminals, physical security, networking, communications, and connectivity solutions. The Intelisys & Advisory segment operates in the United States and consists of sales and services to both channel sales partners (Intelisys) and end users (Advisory), including the Intelisys and technology advisors businesses, Channel Exchange, RPM Software and Resourcive. As a technology services distributor, Intelisys distributes connectivity, cloud and next-generation technologies through an agency sales model, with key technology areas including Connectivity & SDN, CX, Cloud/Data Center, Security, Managed AI, and Wireless & IoT.

The company markets over 65,000 products from approximately 500 hardware, software and service suppliers to approximately 25,000 channel sales partners. Products from two suppliers, Cisco and Zebra, each constituted more than 10% of net sales for the fiscal year ended June 30, 2026. The company has three non-exclusive agreements with Cisco covering distribution in the United States, Brazil, and an agency contract for North America, each with two-year terms. The company has three non-exclusive agreements with Zebra covering sales of Enterprise Visibility & Mobility products in North America and Brazil and Asset Intelligence & Tracking products in North America and Brazil, each with one-year terms that automatically renew. The company offers technology solutions and services including mobility and barcode, networking, physical security, POS, payment terminals, communications, and connectivity and cloud services, with contracts with more than 200 of the world's leading telecom carriers and cloud services providers.

In fiscal year 2025, the Company was named one of the Best Places to Work in South Carolina for the twelfth consecutive year. As of June 30, 2026, the company has approximately 2,100 employees, including approximately 1,400 in the United States, with most international employees located in Brazil. The company has created a new shared services model, SourceHub, to enhance efficiencies across North America and Brazil through scale, reduce administrative workloads and enable greater focus on core business activities. The company operates a 741,000 square foot distribution center in Southaven, Mississippi, which primarily serves North America, and also operates warehouses in California and Kentucky, with principal warehouses for Brazil operations located in the Brazilian states of Paraná, Espírito Santo and Santa Catarina.

Net sales for the fiscal year ended June 30, 2026 totaled $3.23 billion. The company's consolidated balance sheet reflects financial strength, with a strong balance sheet and cash generated from the business providing the ability to execute the capital allocation plan, which includes organic growth and strategic acquisitions. The company has the financial flexibility to invest in its business and in future growth.

The company's strategy is to drive sustainable, profitable growth by orchestrating complex, converging technology solutions through growing an ecosystem of channel sales partners leveraging people, processes, and tools. The company's differentiated technology distribution strategy utilizes multiple sales models to offer hardware, SaaS, connectivity and cloud services from leading technology suppliers to channel sales partners that solve end users' challenges. ScanSource enables channel sales partners to deliver solutions for their end users to address changing buying and consumption patterns, with solutions that may include a combination of offerings from multiple suppliers or give channel sales partners access to additional services.

The company's converged communications business unit supports specialty communications VARs and Intelisys CX advisors, helping VARs sell more cloud recurring revenue and helping Intelisys advisors attach more hardware. The company offers technology solutions and services including connectivity and cloud services, focusing on empowering and educating channel sales partners so they can advise end users in making informed choices about services, technology and cost savings. Through digital tools and platforms, the company offers channel sales partners another way to grow their recurring revenue practices and take the friction out of acquiring, provisioning and managing SaaS offerings.

The filing does not contain specific margin or cost outlook figures for the upcoming period.

The company has created a new shared services model, SourceHub, to allow the company to enhance efficiencies across North America and Brazil through scale, reduce administrative workloads and enable greater focus on core business activities. The company's information systems are scalable and capable of supporting numerous operational functions including purchasing, receiving, order processing, shipping, inventory management and accounting. The company's warehouse operations use bar code technology for receiving and shipping and automated systems for freight processing and shipment tracking, each integrated with multiple information systems.

The filing does not contain specific R&D spending levels, capital expenditure plans, share repurchase authorization amounts, or dividend policy figures for the upcoming period.

Macroeconomic conditions, including potential prolonged economic weakness, inflation and supply chain challenges, tariffs and changes in trade policy, represent headwinds. The failure to manage and implement the company's growth strategy, the company's ability to realize the synergies or other benefits from acquisitions, credit risks involving the company's larger channel sales partners and suppliers, changes in interest and exchange rates and regulatory regimes impacting the company's international operations, including new or increased tariffs, risk to the company's business from a cyberattack, a failure of the company's IT systems, failure to hire and retain quality employees, loss of the company's major channel sales partners, relationships with the company's key suppliers and channel sales partners or a termination or a significant modification of the terms under which it operates with such suppliers and channel sales partners, and changes in the company's operating strategy are all identified as factors that could cause actual results to differ materially from forward-looking statements.

The company operates primarily in the United States and Brazil, and certain suppliers only allow distribution to specific geographies. The company sells products and services to the United States from facilities located in Mississippi, California and Kentucky, and into Brazil from facilities located within the Brazilian states of Paraná, Espírito Santo and Santa Catarina. The company's supplier agreements often include territorial restrictions that limit the countries in which the company can sell their products and services.

Management's message emphasizes the company's strategy to drive sustainable, profitable growth by orchestrating complex, converging technology solutions through growing an ecosystem of channel sales partners leveraging people, processes, and tools. The goal is to provide exceptional experiences for channel sales partners, suppliers, and people through operational excellence. Management highlights the company's differentiated technology distribution strategy utilizing multiple sales models to offer hardware, SaaS, connectivity and cloud services from leading technology suppliers. The company's strong balance sheet and cash generated from the business provide the ability to execute the capital allocation plan, which includes organic growth and strategic acquisitions, with the financial flexibility to invest in the business and in future growth.

Net sales for the fiscal year ended June 30, 2026 totaled $3.23 billion. The company's consolidated balance sheet reflects financial strength, with a strong balance sheet and cash generated from the business providing the ability to execute the capital allocation plan, which includes organic growth and strategic acquisitions. The company has the financial flexibility to invest in its business and in future growth. The aggregate market value of the common stock held by non-affiliates at December 31, 2025 was $821,623,038, as computed by reference to the closing price of such stock on such date. As of August 17, 2026, there were 20,142,812 shares of common stock outstanding. The company's common stock trades on the NASDAQ Global Select Market under the symbol SCSC.

The company faces significant risks from its dependence on key suppliers, as products from two suppliers, Cisco and Zebra, each constituted more than 10% of net sales for the fiscal year ended June 30, 2026, and the company has non-exclusive agreements with these suppliers that can be terminated by either party upon 30 to 90 days' notice. The highly competitive nature of the technology distribution market, with competitors including Ingram Micro, TD Synnex, ADI, Wesco, BlueStar, Avant, and Telarus, could result in price reductions, reduced margins and loss of market share. Macroeconomic conditions, including potential prolonged economic weakness, inflation, supply chain challenges, tariffs and changes in trade policy, pose risks to the business. The company's international operations, particularly in Brazil, are subject to changes in interest and exchange rates and regulatory regimes, including new or increased tariffs. A failure to hire and retain quality employees, particularly in key roles, could negatively affect business and financial results, as the company had approximately 2,100 employees as of June 30, 2026.