ScanSource reported net sales of $766.5 million for Q2 of fiscal 2026, representing a 2.5% year-over-year increase. Gross profit rose 1.2% to $102.9 million, with a margin contraction of 18 basis points to 13.4%. On a GAAP basis, net income was $16.5 million, or $0.75 per diluted share, compared with $17.1 million, or $0.70 per diluted share, a year ago. Non-GAAP net income decreased 14.9% to $17.6 million, or $0.80 per diluted share, reflecting a 65-basis-point decline in adjusted EBITDA margin to 4.07%.

Specialty Technology Solutions generated $741.5 million in Q2 sales, up 2.5%, driven primarily by North American growth and a 15.9% increase in recurring revenue that included recent acquisitions. Intelisys & Advisory contributed $25.0 million, marking a 3.1% year-over-year improvement led by organic cloud and mobility services contracts. The share of gross profit derived from recurring revenue climbed to 37.2%, compared with 32.5% in the prior-year quarter.

At December 31, 2025, the company held $83.5 million in cash and cash equivalents against total debt of $102.7 million. During the first half of fiscal 2026, operating cash flow reached $54.1 million, while non-GAAP free cash flow was $49.7 million. The company deployed $38.7 million to repurchase shares in the six-month period, underscoring management’s commitment to capital returns.

ScanSource narrowed its full-year net sales outlook to $3.0 billion–$3.1 billion, down from a prior range of $3.1 billion–$3.3 billion, and adjusted EBITDA guidance to $140 million–$150 million from $150 million–$160 million, while maintaining free cash flow expectations of at least $80 million. The board appointed Charles A. Mathis as Lead Independent Director and Nominating Committee Chair, and Vernon J. Nagel as Audit Committee Chair, both effective January 29, 2026, signaling strategic oversight realignment ahead of execution on the three-year growth plan.