At a glance
ScanSource Inc is worth $1.20B, about 16 times its fiscal 2026 earnings. Revenue grew 6.1% to $3.23B in fiscal 2026, with 2.4% kept as profit; over 5 years it has grown 0.5% a year. It pays no dividend; it spent $281.2M buying back its shares over FY2022–FY2026. The stock returned +40.5% over the past year with dividends reinvested and +10.4% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 54.4% in the 2020 crash (S&P 500: 33.7%) and 35.8% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 12 months and 17 months after the lows.
The business in plain English
ScanSource is a middleman for business technology. It offers hardware, software and services from about 500 suppliers, including Cisco, Zebra Technologies, Honeywell, Microsoft and AT&T, to about 25,000 “channel sales partners.” These are resellers, consultants and IT service firms that deliver technology to businesses in retail, warehousing, healthcare, government and other industries. It works mainly in the United States and Brazil. Net sales for the fiscal year ended June 30, 2026 were $3.23 billion.
It reports two segments. Specialty Technology Solutions operates in the United States and Brazil. It is a wholesale business: ScanSource purchases and stocks products, then resells them. The products include barcode scanners and mobile computers, point-of-sale (checkout) systems, payment terminals, security cameras, and networking and communications gear. Intelisys & Advisory operates in the United States only and uses an agency model. Rather than reselling, it links technology advisors (consultants to businesses) with providers of internet connectivity, cloud, contact-center, security and managed AI services. The advisors earn monthly commissions on the contracts they sign.
Distribution earns thin margins. In fiscal 2026, gross margin (the share of sales left after paying for the products) was 13.6%. Net margin, the share kept as profit, was 2.4%. Products from Cisco and Zebra each made up more than 10% of net sales. No single partner did.
Price history
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SCSC +40.5% over the year to Oct 28, 2026, total return with dividends reinvested.
Latest results
- In Q4 FY2026 (ended Jun 30, 2026), revenue was $953.1M, up 17.3% from a year earlier, and net income was $25.6M (+27.5%).
- For fiscal 2026, revenue was $3.23B (+6.1% year over year; +0.5% a year from FY2021 to FY2026) with a 2.4% net margin.
Financial health check
| Revenue growth a year (FY2021–FY2026) | +0.5% watch |
|---|---|
| Operating margin | 3.1% weak |
| Free cash flow margin | 3.5% watch |
| Return on equity (FY2026) | 8.7% watch |
| Return on assets (FY2026) | 4.1% watch |
| Net cash (cash minus debt) | $-13.0M watch |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $3.15B | $10.8M | $114.4M |
| FY2022 | $3.53B | $88.8M | $-131.2M |
| FY2023 | $3.79B | $89.8M | $-45.7M |
| FY2024 | $3.26B | $77.1M | $363.1M |
| FY2025 | $3.04B | $71.5M | $104.1M |
| FY2026 | $3.23B | $78.9M | $113.8M |
Valuation snapshot
| Market value | $1.20B |
|---|---|
| P/E ratio | 16.3 |
| Dividend yield | None |
Rank among 1514 US companies
Market value at each year end
ScanSource’s market value went from $1.01B at the end of 2016 to $1.20B on Oct 28, 2026, up 18%; since the end of 2025 it is up 40%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $1.20B | +39.7% |
| 2025 | $857.1M | -24.8% |
| 2024 | $1.14B | +15.3% |
| 2023 | $988.9M | +34.1% |
| 2022 | $737.7M | -17.6% |
| 2021 | $895.6M | +33.9% |
| 2020 | $669.1M | -28.3% |
| 2019 | $933.6M | +6.0% |
| 2018 | $880.4M | -3.5% |
| 2017 | $912.6M | -10.1% |
| 2016 | $1.01B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| SCSC price data to Oct 28, 2026 | +52.2% | +40.5% | +25.8% | +10.4% | +5.4% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +52.2% |
| 2025 | -17.7% |
| 2024 | +19.8% |
| 2023 | +35.6% |
| 2022 | -16.7% |
| 2021 | +33.0% |
| 2020 | -28.6% |
| 2019 | +7.5% |
| 2018 | -4.0% |
| 2017 | -11.3% |
| 2016 | +25.2% |
| 2015 | -19.8% |
| 2014 | -5.3% |
| 2013 | +33.5% |
| 2012 | -11.8% |
| 2011 | +12.8% |
| 2010 | +19.5% |
| 2009 | +38.6% |
| 2008 | -40.4% |
| 2007 | +6.4% |
| 2006 | +11.2% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 56.4% over that stretch · deepest drop along the way 62.3%, back to its old high 27 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 42.3% over that stretch · deepest drop along the way 54.4%, back to its old high 11.8 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 24.6% over that stretch · deepest drop along the way 35.8%, back to its old high 16.6 months after the low |
Insider activity
Form 4 filings from 2025-10-31 to 2026-10-31 (25 read): 0 open-market purchases and 10 sales ($5.5M).
| Date | Insider | Type | Value |
|---|---|---|---|
| Sep 11, 2026 | Michael L Baur CEO, President, BOD Chair, Director | sell | $2.8M |
| Sep 10, 2026 | Michael L Baur CEO, President, BOD Chair, Director | sell | $1.0M |
| Sep 3, 2026 | Stephen Jones SEVP & CFO | sell | $493K |
| Sep 11, 2026 | Michael L Baur CEO, President, BOD Chair, Director | sell | $386K |
| Sep 4, 2026 | Brandy Ford SVP & Chief Accounting Officer | sell | $302K |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 16.3% | Jun 30, 2026 |
| Vanguard Portfolio Management | 8.37% | Mar 31, 2026 |
| Vanguard Capital Management | 5.03% | Sep 30, 2026 |
| PZENA INVESTMENT MANAGEMENT LLC | 4.7% | Sep 30, 2026 |
| Wasatch Advisors LP | 4.2% | Sep 30, 2026 |
| Pacer US Small Cap Cash Cows ETF | 1.18% | Mar 31, 2025 |
| Victory Capital Management, Inc. | 0.2% | Sep 30, 2024 |
ETFs with the most weight in SCSC
| SIXS ETC 6 Meridian Small Cap Equity ETF | 1.07% |
| JPSV JPMorgan Active Small Cap Value ETF | 1.02% |
| MYLD Cambria Micro and SmallCap Shareholder Yield ETF | 0.95% |
| PSCT Invesco S&P SmallCap Information Technology ETF | 0.49% |
| DSMC Distillate Small/Mid Cash Flow ETF | 0.46% |
| SCDS JPMorgan Fundamental Data Science Small Core ETF | 0.39% |
| BSVO EA Bridgeway Omni Small-Cap Value ETF | 0.35% |
| SQLV Royce Quant Small‑Cap Quality Value ETF | 0.34% |
What could go wrong
- Two suppliers drive a large share of sales. Products from Cisco and Zebra each made up more than 10% of fiscal 2026 net sales. Their agreements are not exclusive, and either side can end them on 30 to 90 days' notice.
- Thin margins leave little room for error. ScanSource kept 3.1 cents of operating profit per dollar of sales in fiscal 2026. Price competition or smaller supplier rebates, which depend largely on sales volume, could shrink that quickly.
- Partners may fail to pay. ScanSource extends credit to thousands of resellers and other partners. If their businesses weaken, especially in a downturn, some may not pay, which would mean losses for ScanSource.
- Inventory can lose value. Holding inventory exposes ScanSource to supplier price cuts, slow-moving items and products going out of date. Supplier price protection and return rights reduce this risk, but they have limits.
- Brazil and currency swings add risk. Its Brazil operations carry risks that may be greater than those at home. Exchange-rate swings can also shrink results when Brazilian sales and profits are converted into dollars.
- Acquisitions may not pay off. Buying companies is part of its growth plan, sometimes outside its experience. Deals can underperform or bring unexpected costs. Weak results could force write-downs of the premium paid for them (goodwill).
Recent events
- New debt or financial obligation; Investor presentation or announcement
- Major agreement signed; Quarterly results released
- Executive or board change
- Executive or board change
- Quarterly results released
- Executive or board change
- Quarterly results released; Investor presentation or announcement
- Major agreement signed; Major agreement ended; New debt or financial obligation
- Shareholder vote results
- Quarterly results released
For income and retirement investors
ScanSource does not pay a dividend, so the stock provides no regular income. Anyone counting on it for spending money would have to give up shares. The company returns cash through buybacks instead. It spent about $281 million repurchasing shares from fiscal 2022 to fiscal 2026, including $97.9 million in fiscal 2026. Free cash flow (cash left after running and investing in the business) was $113.8 million that year. The share count fell about 21% between August 2021 and August 2026.
The stock has fallen sharply in past downturns. It dropped about 62% from its October 2007 peak to its December 2008 low, then took about 27 months to recover. It fell about 54% in the 2020 COVID crash and recovered in about 12 months. In the 2022 market downturn it fell about 36% and took about 17 months to recover. A single stock carries more risk than a diversified fund that holds many companies.
Questions investors ask
How does ScanSource make money?
ScanSource makes money as a technology distributor, a middleman between about 500 suppliers and about 25,000 resellers, advisors and service firms. Its Specialty Technology Solutions segment purchases products such as barcode scanners, checkout systems, payment terminals and networking gear, then resells them at a markup. Its Intelisys & Advisory segment acts as an agent for connectivity, cloud and communications services in the United States. Net sales were $3.23 billion in the fiscal year ended June 30, 2026. It kept 2.4 cents of profit per dollar of sales.
Does ScanSource pay a dividend?
No. ScanSource does not pay a dividend and paid none from fiscal 2022 through fiscal 2026, so it offers no regular income. It returns cash through share buybacks instead. It spent about $281 million over those five years, including $97.9 million in fiscal 2026. Its share count fell from about 25.5 million in August 2021 to about 20.1 million in August 2026. Buybacks give each remaining share a bigger slice of profits, but they put no cash in shareholders' pockets.
How has ScanSource stock performed?
It did well over the year to October 28, 2026, and less well over longer periods. On that date the share price was up 40.5% over one year, though it fell as much as 22.7% from a high along the way. Over five years it averaged 10.4% a year, and over 10 years 5.4% a year. Calendar years swung widely: down 17.7% in 2025, up 19.8% in 2024 and up 35.6% in 2023. With no dividend, the price change is the whole return.
What is ScanSource's P/E ratio?
ScanSource's price-to-earnings (P/E) ratio was 16.3 as of October 28, 2026. It is based on earnings of $3.64 per share for the fiscal year ended June 30, 2026. The P/E shows how many dollars investors pay for each dollar of yearly profit. The company's market value was about $1.2 billion on that date. Earnings per share have moved around: $0.42 in fiscal 2021, $3.54 in fiscal 2023 and $3.00 in fiscal 2025. One year's P/E gives only a partial picture.
Does ScanSource have a lot of debt?
Not much, as of June 30, 2026. ScanSource had about $101.4 million of total debt and $88.4 million of cash and investments. Its net debt (debt minus cash) was therefore about $13 million. That is small next to $910.8 million of shareholders' equity, the accounting value of what owners hold. A distributor's borrowing needs can rise quickly because it must fund inventory and customer credit. The company also reported a new debt obligation in a filing dated September 2, 2026, after that balance-sheet date.