SCSC
SCANSOURCE, INC.
Next earnings Aug 19, 2026 · consensus $1.16 EPS, $818M rev
Last earnings +5.8% on 2026-05-07
$50.87
▼ -0.80%$50.87▲ +21.67%
over 1Y
L $34.27H $51.28
Earnings Dividend Split Congress buy Congress sellGrouped by date · hover a pin to expand
Today-0.8%
1W+0.7%
1M+5.8%
3M+39.4%
YTD+30.2%
1Y+21.7%
Hold
Conviction
Horizon
Medium (3–12mo)
12-mo target
$•••
Street · 9 analysts
Buy
Cheap, shareholder-friendly distributor with shrinking revenue but expanding gross margin — a fair hold, not a table-pounder.
P/E (trailing) 16.8x · FY2025
The read
Middling fundamentals and a rich price (~57% above fair value) leave little margin of safety — a wait-and-see.
ScanSource is a low-margin tech distributor in transition. The headline is ugly: FY2025 revenue fell 6.7% to $3.04B, the second straight annual decline from the FY2023 peak of $3.79B, and net income slipped 7.2% to $71.5M. Operating cash flow collapsed 69.8% to $112M, signaling working-capital release is no longer the tailwind it was. Yet underneath, the mix is quietly improving — gross margin expanded to 13.4% from 12.2% the prior year (per MD&A), reflecting the deliberate pivot from hardware reselling toward higher-margin SaaS, connectivity and cloud services through the Intelisys & Advisory segment and the Resourcive/Advantix acquisitions completed in August 2024.
Valuation is undemanding: 16.8x trailing P/E and just 0.4x sales for a profitable, free-cash-flow-generative distributor with a clean balance sheet ($906M equity vs. $128M long-term debt, liabilities/equity 0.97x). Management is leaning hard into capital return — $107M in buybacks (up 148%) shrank the share count 8.9% to 21.9M, which mechanically supports EPS even as the top line erodes. Two restructuring rounds (Sept 2024 + Jan 2025) lock in roughly $20.5M of annualized SG&A savings, which should partially offset the revenue drag in FY2026.
Is SCSC a buy? The one-page verdict, explained →
The options angle
model · matches our verdictCovered call~60d expiry
- Long 100 shares @ ~50.87
- Short call 53 @ ~1.60 est
debit $4,927max +$373max −$4,926BE 49.27
HOLD means own it, don't chase it — harvesting premium against the position matches the verdict.
Educational template, not a trade recommendation. Strikes and premiums are Black-Scholes model estimates from the last close and 30-day realized volatility — real chains, spreads and IV will differ. Options involve substantial risk.
Financials · annual, by fiscal year
| Line item | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue | $3.15B | $3.53B | $3.79B | $3.26B | $3.04B |
| Gross profit | $351M | $427M | $449M | $399M | $409M |
| Operating income | $61.5M | $122M | $136M | $90.3M | $85.2M |
| Net income | $10.8M | $88.8M | $89.8M | $77.1M | $71.5M |
| Diluted EPS | $0.42 | $3.45 | $3.54 | $3.06 | $3.00 |
| Net margin | 0.3% | 2.5% | 2.4% | 2.4% | 2.4% |
10-year statements — income, cash flow, balance sheet & CSV export →
Annual figures from SEC 10-K XBRL filings. Open the filing links below for full statement detail.
Key statistics
Valuation
Enterprise value$1.04B
EV / EBITDA9.0
EV / Sales0.3
EV / FCF10.0
P / FCF9.9
PEG (trailing)—
Earnings yield6.9%
FCF yield10.1%
Quality & risk
ROIC (est.)6.5%
Free cash flow$104M
Total debt$136M
Net cash-$9.99M
Altman Z-Score3.83 safe
Piotroski F-Score6/9
Capital returns
Buyback yield10.3%
Dividend yield (est.)—
Shareholder yield10.3%
Shares Δ YoY-8.9%
Computed from SEC XBRL annual figures + the current quote. EV and ROIC use long-term + current debt where filed; estimates, not investment advice.
Disclosure timeline
SEC · 8-Ks + reportsRecent disclosure tone has been improving.
- 8-K Officer / director change2026-05-29
Executive/director change disclosed; transition risk pending details on role/successor.
- 8-K Earnings results2026-05-07
FY3Q26 quarterly filing; continued revenue pressure consistent with -6.7% FY trend.
- 10-Q Quarterly report2026-05-07
FY3Q26 quarterly filing; continued revenue pressure consistent with -6.7% FY trend.
- 8-K Officer / director change2026-03-12
Officer/director change reported; standard governance update with limited impact.
- 8-K Earnings results2026-02-05
FY2Q26 results filed amid macro/tariff headwinds on distribution volumes.
- 10-Q Quarterly report2026-02-05
FY2Q26 results filed amid macro/tariff headwinds on distribution volumes.
- 8-K Agreement terminated2025-12-19
Entered new credit agreement, terminated prior facility — debt refinanced/extended.
- 8-K Shareholder vote2025-12-09
Annual meeting vote results disclosed; routine governance, no surprises.
- 8-K/A Amended 8-K2025-11-06
FY1Q26 results — first quarter post-restructuring with ~$20M annualized SG&A savings.
Recent filings
all on EDGAR ↗4Period ending 2026-06-012026-06-03open ↗8-KPeriod ending 2026-05-222026-05-29open ↗10-QPeriod ending 2026-03-312026-05-07open ↗8-KPeriod ending 2026-05-072026-05-07open ↗SCHEDULE 13GFiling2026-04-29open ↗SCHEDULE 13G/AFiling2026-03-27open ↗3Period ending 2026-03-162026-03-20open ↗4Period ending 2026-03-132026-03-17open ↗144Filing2026-03-13open ↗8-KPeriod ending 2026-03-062026-03-12open ↗4Period ending 2026-02-112026-02-13open ↗10-QPeriod ending 2025-12-312026-02-05open ↗
Frequently asked
- Is SCANSOURCE, INC. (SCSC) a buy?
- SCSC currently carries a Hold rating with 3/5 conviction, derived from its latest SEC filings. Cheap, shareholder-friendly distributor with shrinking revenue but expanding gross margin — a fair hold, not a table-pounder.
- What is SCSC's fair value?
- A Modified-Graham model based on SCSC's SEC fundamentals estimates a fair value of about $21.80. It is an estimate from reported earnings, not a price target.
- Is SCSC overvalued or undervalued?
- Against a Modified-Graham fair-value estimate, SCSC currently appears overvalued relative to its SEC-grounded earnings power.
- What is SCANSOURCE, INC.'s quality score?
- SCSC scores 65.09856108174675/100 (grade B-) on a SEC-grounded quality model spanning value, growth, profitability, financial health and momentum.
Sources: SEC EDGAR (CIK 0000918965, latest 10-Q filed 2026-05-07) · EODHD · Proprietary analysis · as of 6/25/2026, 2:21:22 PM.
About this recommendation — produced by TENK/calls (tenkcalls.com), Luxembourg · not investment advice
AI-generated analysis, produced by our proprietary engine from SEC filing data.
Investment recommendation produced by TENK/calls (tenkcalls.com), Luxembourg. Completed Jun 25, 2026, 10:21 AM ET. Ratings & methodology: definitions · All recommendations to date: track record · Conflicts: disclosures. Not investment advice.
Research and education only — not financial advice. TENKis not a registered investment adviser or broker-dealer and gives no personalized advice. Every call is impersonal — identical for all users, generated on a schedule from SEC filings plus a delayed/third-party price feed — may be wrong or out of date, and is not a recommendation to buy or sell any security. The operator and an affiliated trading operation may hold or trade the securities TENK rates; see Disclosures. Past performance does not guarantee future results. Do your own research.