SCSC SCANSOURCE, INC.

Overview and Growth

In fiscal 2026, SCANSOURCE, INC. recorded $3.23B of revenue, net income of $78.87M, and an operating cash inflow of $123.13M. Revenue of $3.23B sets the scale for evaluating how effectively sales translated into profit and cash during the year. Revenue was 6.1% above fiscal 2025 revenue of $3.04B, marking a year-over-year increase. The company reported diluted EPS of $3.64, adding a shareholder-level measure to the absolute income figures considered below. Against diluted EPS of $3.00 in fiscal 2025, the current result was 21.3% higher. The revenue-to-assets relationship was 1.67x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

The first profit layer was $437.36M of gross profit, the amount available after reported direct revenue costs to absorb operating expenses. Gross profit represented 13.6% of revenue, showing how much of the top line remained after direct costs. Operations produced $98.63M of income after the reported operating expense base, before the remaining non-operating and tax effects. Relative to revenue, operating income represented 3.1%, showing how efficiently sales converted into operating profit. Net income came to $78.87M, completing the progression from revenue through gross and operating profitability to the final reported result. Net margin was 2.4%, meaning that this portion of revenue remained as net income after all recognized expenses. Before income taxes, the company reported $103.74M of earnings, providing a bridge between the operating result and final net income. Measured against revenue, pretax income equaled 3.2%, adding a pre-tax profitability layer between revenue and net income. Income tax expense totaled $24.87M, providing the reported tax component that separates pretax and after-tax earnings. The effective relationship between income tax and positive pretax income was 24.0%, without assuming a statutory-rate comparison.

Liquidity and Capital Structure

At period end, the $1.93B asset base was financed through $1.02B of liabilities and $910.79M of equity. The near-term balance sheet paired $1.51B of current assets with $859.14M of current liabilities at the reporting date. At 1.76x, the current ratio shows that short-term assets were greater than short-term liabilities at period end. Cash and equivalents totaled $88.37M, identifying the most liquid reported component available within the broader current-asset balance. The cash balance equaled 10.3% of current liabilities, showing how much near-term coverage came from cash alone. Borrowings totaled $101.41M, adding a fixed financing obligation alongside the company’s equity capital. Debt equaled 0.11x of book equity, describing the relative scale of borrowing and shareholder capital. Relative to total assets, debt measured 5.2%, showing how much of the asset base was matched by borrowing. Relative to total assets, liabilities measured 52.9%, complementing the separate equity-based view of the company’s capital structure. Measured against total assets, cash and equivalents represented 4.6%, a balance-sheet composition measure rather than a liquidity forecast. The asset base changed 8.2% from $1.79B in fiscal 2025, leaving current total assets higher year over year.

Cash Flow and Earnings Quality

Operating activities produced a cash inflow of $123.13M, giving the cash-flow counterpart to the accrual-based profit measures reported for the year. Against net income, operating cash flow measured 1.56x, showing the relationship between accrual earnings and operating cash. The cash-flow statement records $9.29M of capital expenditures, the investment amount considered after operating cash generation. Capital expenditures represented 7.5% of operating cash flow, leaving the remainder available as free cash flow. Free cash flow came to $113.84M, leaving a positive amount after capital expenditures. The free-cash-flow margin was 3.5%, measuring cash remaining after capital spending against revenue. Measured against total assets, free cash flow represented 5.9%, showing the cash productivity of the company’s assets.

Based on the annual report for the fiscal year ending Jun 30, 2026. Analysis generated Oct 21, 2026.