What changed in this filing

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Item 1. Business

2026-08-20 compared with 2025-08-21 · 46 added, 57 removed, 223 unchanged (32% of the section changed)

ScanSource, Inc.

(together with its subsidiaries referred to as the “Company,” “ScanSource,” “we,” “us,” or “our” ) is a leading technology distributor connecting devices to the cloud and accelerating growth for channel sales partners across hardware, software as a service (“SaaS”), connectivity and cloud services.

ScanSource enables channel sales partners to deliver solutions for their end users to address changing buying and consumption patterns.

(together with its subsidiaries referred to as the “Company,” “ScanSource,” “we,” “us,” or “our”) 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 (“SaaS”), connectivity and cloud services.

ScanSource uses multiple sales models to offer technology solutions from leading suppliers of specialty technologies, connectivity and cloud services.

The Company operates primarily in the United States and Brazil.

We provide technology solutions and services from more than 500 leading suppliers of mobility and barcode, point-of-sale (“POS”), payment terminals, physical security, networking, communications, connectivity and cloud services.

The Company's two operating segments, Specialty Technology Solutions and Intelisys & Advisory , represent the different sales models we use in executing our technology distribution growth strategy.

The Company's two operating segments, Specialty Technology Solutions and Intelisys & Advisory , represent the different sales models we use in executing our technology growth strategy.

ScanSource was incorporated in South Carolina in 1992 and serves approximately 25,000 channel sales partners.

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We align our teams, tools and processes around all of our channel sales partners to help them grow through providing specialized expertise, creating efficiencies and generating end-user demand for business solutions.

We enable our channel sales partners to create, deliver and grow technology offerings for end users across almost every vertical market in the United States, Canada, and Brazil.

Our strategy is to drive sustainable, profitable growth by orchestrating complex, converging technology solutions through a growing ecosystem of channel sales partners leveraging our people, processes, and tools.

We enable our channel sales partners to create, deliver and grow technology offerings for end users across almost every vertical market in the United States and Brazil.

Our strategy is to drive sustainable, profitable growth by orchestrating complex, converging technology solutions through growing an ecosystem of channel sales partners leveraging our people, processes, and tools.

Our goal is to provide exceptional experiences for our channel sales partners, suppliers, and people through operational excellence.

Our 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.

Our 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.

Sc anSource enables channel sales partners to deliver solutions for their end users to address changing buying and consumption patterns.

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Business Segments

We operate our business under a management structure that enhances our technology distribution growth strategy.

Effective July 1, 2024, the Company realigned its operating segments to represent the different sales models it uses in executing its technology distribution growth strategy.

The two realigned segments are Specialty Technology Solutions and Intelisys & Advisory.

The Specialty Technology Solutions segment combines the Company's former operating segments, with the exception of the Company's Intelisys business.

The Intelisys & Advisory segment includes the Intelisys and technology advisors businesses, including Channel Exchange (formerly known as intY USA), RPM Software and Resourcive.

We operate our business under a management structure that enhances our technology growth strategy.

We have two reportable segments based on sales model, Specialty Technology Solutions and Intelisys & Advisory.

Both segments include recurring revenue.

The Company has reclassified certain prior-year amounts in the segment results to conform with the current year presentation.

These reclassifications had no effect on the condensed consolidated financial results.

See Note 16 - Segment Information for descriptions of the Company's segments.

Specialty Technology Solutions Segment

The Specialty Technology Solutions segment operates in the United States, Canada and Brazil and includes specialty technology solutions distributed through a wholesale/resale sales model.

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.

This segment includes hardware, SaaS and subscription services.

The specialty technology solutions include the following:

• Mobility and barcode - mobile computing, barcode scanners and imagers, radio frequency identification devices, barcode printing and related services;

• Mobility and barcode - mobile computing, barcode scanners and imagers, RFID (radio frequency identification devices), barcode printing and related services;

• POS - Point of Sale systems, integrated POS software platforms;

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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).

The Intelisys & Advisory segment includes the Intelisys and technology advisors businesses, including Channel Exchange (formerly known as intY USA), RPM Software and Resourcive.

As a technology services distributor, or TSD, Intelisys distributes connectivity, cloud and next-generation technologies through an agency sales model.

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• Cloud/Data Center

Index to Financial Statements

• Wireless & IoT

By offering flexible routes to market and a robust solutions portfolio, this segment helps channel sales partners service a wide range of end users including businesses of all sizes from VSB (“Very Small Business”) to Enterprise size businesses.

By offering flexible routes to market and a robust solutions portfolio, this segment helps advisors service a wide range of end users including businesses of all sizes.

Index to Financial Statements

Channel Sales Partners

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ISOs focus on selling credit card processing and finding new merchant channel sales partners for credit card member banks.

They offer on-going customer service and support and look to bundle hardware, software and processing services.

They offer ongoing customer service and support and look to bundle hardware, software and processing services.

Independent Software Vendors

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They provide proactive monitoring, maintenance, and support, enabling businesses to reduce costs, improve efficiency, and focus on core operations.

We provide products and services from approximately 500 suppliers, including key suppliers AT&T, Avaya, Axis, Cisco, Comcast Business, Dell, Elo, Extreme, Five9, Fortinet, Hanwha, Honeywell, HP Poly, HPE/Aruba, Ingenico, Lumen, Microsoft, NiCE, RingCentral, Ubiquiti, Verifone, Verizon, Zebra Technologies and Zoom.

We provide products and services from approximately 500 suppliers, including key suppliers AT&T, Avaya, Axis, Cisco, Comcast Business, Dell, Elo, Extreme, Five9, Fortinet, Hanwha, Honeywell, HP Poly, HPE/Aruba, HPE/Juniper, Ingenico, Lumen, Microsoft, NiCE, RingCentral, Ubiquiti, Verifone, Verizon, Zebra Technologies and Zoom.

We provide products and services from many of our key suppliers in all of our geographic markets;

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We typically purchase products directly from the supplier and our supplier agreements generally do not restrict us from selling similar or competitive products or services.

We have the flexibility to

We have the flexibility to terminate or curtail sales of one product line in favor of another due to technological change, pricing considerations, product availability, channel sales partner demand or supplier distribution policies.

Products from two suppliers, Cisco and Zebra, each constituted more than 10% of our net sales for the fiscal year ended June 30, 2026.

Index to Financial Statements

terminate or curtail sales of one product line in favor of another due to technological change, pricing considerations, product availability, channel sales partner demand or supplier distribution policies.

Products from two suppliers, Cisco and Zebra, constituted more than 10%, of our net sales for the fiscal year ended June 30, 2025.

• We have three non-exclusive agreements with Cisco.

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Our suppliers generally warrant their products that we sell and allow returns of defective products, including those returned to us by our channel sales partners.

For certain of our product offerings, we offer a self-branded warranty program.

We purchase contracts from unrelated third parties, generally the original equipment manufacturers, to fulfill our obligations to service or replace defective products claimed on these warranty programs.

To maintain channel sales partner relations, we also facilitate returns of defective products from our channel sales partners by accepting for exchange, with our prior approval, most defective products within 30 days of invoicing.

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We currently market over 65,000 products from approximately 500 hardware, software and service suppliers to approximately 25,000 channel sales partners.

We sell products and services to the United States and Canada from our facilities located in Mississippi, California and Kentucky;

We sell products and services to the United States from our facilities located in Mississippi, California and Kentucky;

into Brazil from facilities located within the Brazilian states of Paraná, Espírito Santo and Santa Catarina.

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See “Risk Factors” for a discussion of the risks related to our foreign operations.

Index to Financial Statements

Our offerings to our channel sales partners include hardware, software, services and connectivity across premise, hybrid and cloud environments.

Our offerings to our channel sales partners include hardware, software, services and connectivity across on-premises, hybrid and cloud environments.

We believe that channel sales partners want to offer end users complete technology solutions that solve end-user challenges and deliver positive outcomes.

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We are able to provide a combination of offerings from multiple suppliers or give our channel sales partners access to additional services, including configuration, key injection, integration support and others to deliver solutions.

Our 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.

Index to Financial Statements

We provide our channel sales partners and suppliers with an array of pre-sale business tools and value-added services, including market and technology solution expertise, education and training, product configuration tools, technical support, logistics and channel financial services.

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• Networking:

Our networking products include wireless and networking infrastructure products.

Our networking products include wireless, networking and artificial intelligence (“AI”) infrastructure products.

Networking products are integral to our technology solutions, serving as the backbone that connects devices and applications.

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We have the resources to deliver secure payment devices that are preconfigured and ready for use.

In addition, we partner with ISVs to deliver to merchants integrated tablet POS hardware that a merchant may purchase outright or “as a service,” and offer merchant hardware support and next-day replacement of tablets, terminals and peripherals.

In addition, we offer merchant hardware support and next-day replacement of tablets, terminals and peripherals.

• Communications :

We offer communications solutions, delivered through the cloud, on-premise or via a hybrid approach, such as voice, video, integration of communication platforms and contact center solutions.

These offerings combine voice, video and data with computers, telecommunications and the internet to deliver communications solutions on-premise.

We offer communications solutions, delivered through the cloud, on-premises or via a hybrid approach, such as voice, video, integration of communication platforms and contact center solutions.

These offerings combine voice, video and data with computers, telecommunications and the internet to deliver communications solutions on-premises.

Software and hardware products include IP-based telephony platforms, Voice over Internet Protocol systems, private branch exchanges, call center applications, video conferencing, desk phones, headsets and cloud-enabled endpoints.

Cloud-delivered services, such as unified communications, contact center and video conferencing, enable end users to consume and pay for communications services, typically on a monthly subscription basis.

Index to Financial Statements

• Connectivity and Cloud Services:

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We have contracts with more than 200 of the world’s leading telecom carriers and cloud services providers.

Index to Financial Statements

People and Culture

As a people-first organization, respecting and protecting our people and our channel sales partners is among our top priorities.

From ensuring and supporting an inclusive and diverse workforce and partner base, providing a safe, healthy work environment, and working with suppliers and channel sales partners that share the same commitment, we are dedicated to doing what is right for our employees, channel sales partners and end users.

From supporting an inclusive workforce providing a safe, healthy work environment, to working with suppliers and channel sales partners that share the same commitment.

We have created a new shared services model, SourceHub, to allow us to enhance the Company's efficiencies across North American and Brazil through scale, reduce administrative workloads and enable greater focus on our core business activities.

Our real competitive advantage is our people, who strive to help our channel sales partners grow their businesses.

The foundation of ScanSource has always been based on strong values and a people-first culture and vision.

In 2025 , the Company was named one of the Best Places to Work in South Carolina for the eleventh consecutive year.

As of June 30, 2025, we have approximately 2,100 employees, of which approximately 1,400 are in the United States and 700 are located internationally in Canada and Brazil.

In 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, we have approximately 2,100 employees, including approximately 1,400 are in the United States, with most of our international employees located in Brazil.

We have no organized labor or trade unions in the United States.

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We want to help our employees succeed—both personally and professionally.

We focus heavily on the intellectual and professional development of our employees, and we strive to create an immersive working environment for them.

To promote personal and professional growth, we also encourage our employees to pursue ongoing training and career development opportunities, and we provide tuition assistance and reimbursement for certain pre-approved continuing education programs and professional certifications.

Our learning management system, The Hub, provides a modernized and engaging user experience for our employees at all levels.

We focus heavily on the intellectual and professional development of our employees, and we strive to create an engaging and collaborative work environment.

To promote personal and professional growth, we also encourage our employees to pursue ongoing training and career development opportunities, and we provide tuition assistance and reimbursement for pre-approved continuing education programs and professional certifications.

Our learning management system, The Hub, provides a modern and engaging user experience for our employees at all levels.

The ScanSource Management Academy is a program custom designed to develop all newly hired and promoted managers of people.

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Inclusion, participation, and appreciation are key components in retaining talent, maintaining our culture, and keeping employees engaged.

In support of that, in 2023, we launched a global digital workplace, The Bridge, as our corporate intranet.

We are excited to enhance global communication, increase employee recognition, and celebrate milestones through this engaging new platform.

In support of that, our global digital workplace and corporate intranet, The Bridge, is designed to enhance global communication, increase employee recognition, and celebrate milestones.

We foster opportunities for employee engagement and have multiple avenues for communication, which allows all full-time employees to anonymously give us feedback on our workplace culture, employee programs and more.

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We offer a comprehensive benefits package which includes traditional health insurance, as well as telemedicine alternatives, life insurance, disability insurance and work-life balance resources.

The financial futures of our employees are important to us, which is why we have a 401(k) program with a market-competitive employer match, a performance-based bonus program and employee ownership opportunities for our employees through our Employee Stock Purchase Plan, as well as our equity incentive grants.

The financial futures of our employees are important to us, which is why we have a 401(k) program with a market-competitive employer match, a performance-based bonus program and employee ownership opportunities for our employees through our equity incentive grants and Employee Stock Purchase Plan.

We also partner with Fidelity to provide employees access to knowledge and tools to help manage or plan for student loan debt.

To further expand our financial wellness offerings, we offer workshops and webinars focused on student debt and general debt-counselling services.

Index to Financial Statements

Health and Safety

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We continue to build our “360you” program, which provides employees with extensive education and training/coaching opportunities, wellness and fitness challenges, and other valuable resources.

Inclusion and Belonging

One of our core values is to promote an environment that respects and values the diverse backgrounds, interests and talents of our employees.

ScanSource is committed to a diverse and inclusive workplace with our comprehensive Inclusion & Belonging (I&B) program, led by our Vice President, People Development and Inclusion and an internal I&B Work Team.

The Work Team is an employee-led group focused on sharing insights, ideas, and opinions from our employee base to support our goal of fostering a workplace of inclusion and belonging.

Our I&B initiatives focus on awareness and education, employee network groups and community-focused events.

Index to Financial Statements

Board Role in People and Culture Management

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Our competitors include local, regional, national and international distributors, as well as suppliers that sell directly to resellers and to end users.

In addition, our competitors include resellers that sell to franchisees, third-party dealers and end users.

Competition has increased over the last several years as broad-line and other value-added distributors have entered the specialty technology markets.

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As we seek to expand our business into other areas closely related to our offerings, we may encounter increased competition from current competitors and/or from new competitors.

Our sales organization consists of inside and field sales representatives located in the United States, Canada and Brazil.

Our sales organization consists of inside and field sales representatives located in the United States and Brazil.

The majority of our channel sales partners are assigned to a dedicated sales representative or team whose main focus is developing relationships and providing our channel sales partners with solutions to meet their end-user’s needs.

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Our sales representatives receive comprehensive training with respect to the technical characteristics of suppliers’ products, supplemented by frequent product and service seminars conducted by supplier representatives and bi-weekly meetings among product, marketing and sales managers.

Index to Financial Statements

Our sales teams also provide channel sales partners with online ordering, API, EDI and other information systems, allowing channel sales partners to easily gain access to product specifications, availability and customized pricing, as well as the ability to place and follow the status of orders.

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e-commerce and email direct marketing, among others.

Our marketing practices are tailored to fit the specific needs of our channel sales partners and suppliers - ensuring we help our channel sales partners create, deliver and manage solutions for end users across our vertical markets.

We tailor our marketing practices to fit the specific needs of our channel sales partners and suppliers, and we help our channel sales partners create, deliver and manage solutions for end users across our vertical markets.

Our comprehensive marketing efforts include sales promotions, advertisements, management of sales leads, trade show design and event management, advertorials, content creation, partner events and training and certification courses with leading suppliers in an effort to recruit prospective channel sales partners.

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Information Technology Systems

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Trade and Service Marks

We conduct our business under the trade names “ScanSource POS and Barcode,” “ScanSource Catalyst,” “ScanSource Communications,” “ScanSource Services,” “ScanSource Networking and Security,” “ScanSource Brasil,” “Network1, a ScanSource company,” “Intelisys,” “POS Portal,” “RPM Software, a ScanSource company,” “Advantix,” “Resourcive,” “Channel Exchange,” and "SCSC Cascade."

We conduct our business under the trade names “ScanSource POS and Barcode,” “ScanSource Services,” “ScanSource Networking and Security,” “ScanSource Brasil,” “Intelisys,” “POS Portal,” “RPM Software, a ScanSource company,” “Advantix,” “Resourcive,” “DataXoom,” “Channel Exchange,” and "SCSC Cascade."

Certain of our tradenames, trademarks and service marks are registered, or are in the process of being registered, in the United States or various other countries.

We have been issued registrations for many of our marks including, among others, “ScanSource ,” “Catalyst Telecom,” and “Network1” in countries in our principal markets.

We have been issued registrations for many of our marks including, among others, “ScanSource ” in countries in our principal markets.

Even though our marks are not registered in every country where we conduct business, in many cases we have acquired rights in those marks because of our continued use of them.

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We do not believe that our operations are dependent upon any of our marks.

We also sell products and provide services under various third-party

Index to Financial Statements

tradenames, trademarks and service marks, some of which we reference in this report, and these tradenames, trademarks and service marks are the property of their respective owners.

We also sell products and provide services under various third-party tradenames, trademarks and service marks, some of which we reference in this report, and these tradenames, trademarks and service marks are the property of their respective owners.

Additional Information

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We provide our annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K, and all amendments to those reports, free of charge on www.scansource.com, as soon as reasonably practicable after they are electronically filed with, or furnished to, the Securities and Exchange Commission (“SEC”).

We use the investor relations portion of our website to distribute information, including as a means of disclosing material, non-public information, and for complying with our disclosure obligations under Regulation FD.

We routinely post and make accessible financial and other information regarding the Company on our website (https://www.scansource.com/about/

Index to Financial Statements

Accordingly, investors should monitor the investor relations portion of our website in addition to our press releases, SEC filings and other public communications.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business