ScanSource, Inc. (SCSC) SEC Filings & Earnings Calls

Integration risk: ability to successfully integrate MicroAge and realize expected benefits.

“the ability of the Company to successfully integrate MicroAge into its business and the risk that the Company will fail to realize the expected benefits of the acquisition” · word for word

Supplier concentration risk

“A significant percentage of our net sales relates to products we purchase from relatively few suppliers, including Cisco and Zebra.”

Supply chain disruption risk

“Specifically, shortages of computer chips may lead to product constraints and adversely affect our sales volumes and product availability.” · word for word

International operations risk

“International net sales, reported ... (13,467) ... (5.6)% ... constant currency ... (12.7)%”

Credit risk from channel sales partners

“We have credit exposure to our channel sales partners. Any adverse trends or significant adverse incidents in their businesses could cause us to suffer credit losses.” · word for word

Goodwill impairment risk

“The fair value of the reporting units exceeded its carrying value by 2% and more than 100%, respectively, as of the annual goodwill impairment testing date.” · word for word

Macroeconomic risks including tariffs and trade policy changes

“macroeconomic conditions, including potential prolonged economic weakness, inflation, tariffs and changes in trade policy” · word for word

Integration risk from MicroAge acquisition

“the ability for ScanSource to realize the synergies or other benefits from acquisitions” · word for word

Credit risk from channel partners

“credit risks involving ScanSource's larger channel sales partners and suppliers” · word for word

Cybersecurity and IT system failure risk

“risk to the business from a cyberattack, a failure of IT systems” · word for word

Minimal risk; routine board retirement

“no disagreement”

Loss of CIO may disrupt IT strategy and transformation initiatives.

“Role elimination of Senior EVP and Chief Information Officer.”

Tariff and Trade Policy Uncertainty

“The macroeconomic environment, including the economic impacts of growth outlook, inflationary pressures, tariffs and evolving geopolitical conflicts and trade relationships, continues to create significant uncertainty and may adversely affect our financial condition and results of operations.” · word for word

Customer Concentration

“credit risks involving the Company's larger channel sales partners and suppliers” · word for word

Macroeconomic risks including tariffs and trade policy changes; net income slightly down.

“Forward-looking statements mention tariffs and trade policy risks.”

Guidance cut for both net sales and Adjusted EBITDA indicates weaker-than-expected demand and margin pressure.

“Net sales $3.0 billion to $3.1 billion (prior $3.1 billion to $3.3 billion)... Adjusted EBITDA (non-GAAP) $140 million to $150 million (prior $150 million to $160 million)” · word for word

Gross profit margin declined 18 bps YoY, indicating competitive pressure.

“Gross profit margin % 13.4% vs 13.6% prior year, -18bp”

Tariff and Trade Policy Uncertainty

“The macroeconomic environment, including the economic impacts of growth outlook, inflationary pressures, tariffs and evolving geopolitical and trade relationships, continues to create significant uncertainty and may adversely affect our financial condition and results of operations.” · word for word

Freight Cost Pressure on Gross Margin

“Higher freight costs reduced gross profit by $2.1 million for the quarter.” · word for word

Brazil Revenue Decline

“Brazil net sales decreased 2.1% for the quarter and 5.9% for the six months; constant currency decline of 9.4% and 10.4% respectively.”

Customer Bad Debt in Brazil

“SG&A includes customer specific bad debt expenses in Brazil for the quarter and six months ended December 31, 2025.” · word for word

Leverage ratio covenant: must be ≤ 3.50x; interest coverage ≥ 3.00x.

“Leverage ratio must be less than or equal to 3.50 to 1.00; Interest Coverage Ratio at least 3.00:1.00.” · word for word

Tariff and Trade Policy Uncertainty

“The macroeconomic environment, including the economic impacts of growth outlook, inflation, tariffs and shifting relations between the U.S. and other countries, continues to create significant uncertainty and may adversely affect our financial condition and results of operations.” · word for word

Demand Weakness in Specialty Technology Solutions

“For the quarter ended September 30, 2025, net sales decreased primarily due to lower large deals.” · word for word

STS sales decline of 5% Y/Y indicates potential demand weakness in core technology distribution.

“STS, Net Sales -5% Y/Y $715M” · word for word

Macroeconomic risks including inflation, tariffs, and trade policy changes could impact future results.

“macroeconomic conditions, including potential prolonged economic weakness, inflation, tariffs and changes in trade policy” · word for word