ScanSource Posts Strong Quarterly Finish Amid Annual Revenue Decline

Technology distributor ScanSource concluded its fiscal year 2025 with a surprisingly robust final quarter. Although annual revenue experienced a contraction, profitability saw significant improvement, driven by a strategic company-wide shift toward recurring revenue streams.

A review of the full fiscal year presents a nuanced financial picture. Total annual revenue declined by 6.7 percent, settling at $3.04 billion. Despite this top-line decrease, the company achieved a notable improvement in its bottom line. Gross profit for the year advanced by 2.4 percent to $408.6 million.

This enhanced profitability, reflected in a gross margin increase from 12.2% to 13.4%, is attributed to the strategic pivot toward more predictable, recurring income. This high-margin revenue stream surged by an impressive 31.8 percent year-over-year, making the company’s financial performance less dependent Read more...