ScanSource's Q1 net sales rose 30% year over year to $962.29 million, above the $859.50 million estimate, while adjusted EPS of $0.86 missed the $1.12 estimate. The company raised its FY27 net sales outlook to $3.8 billion-$4.0 billion and adjusted EBITDA forecast to $175 million-$185 million.
ScanSource reported Q1 net sales of $962.29 million, up 30% year over year and above the $859.50 million estimate. Adjusted EPS was $0.86, below the $1.12 estimate; adjusted net income was $17.71 million and adjusted EBITDA was $31.30 million.
Gross profit margin fell as strong hardware demand and a higher proportion of lower-margin, large deals weighed on the sales mix. Higher bad debt expense, mainly from customer credit exposures in Brazil, weighed on operating income and EPS.
ScanSource raised its FY27 net sales outlook to $3.8 billion-$4.0 billion and adjusted EBITDA forecast to $175 million-$185 million. It maintained its free cash flow forecast at at least $85 million. The company completed its acquisition of MicroAge, which contributed to segment growth and expanded technology solutions.
