8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 3, 2022

 ScanSource, Inc.

(Exact name of registrant as specified in its charter)

SC	00-26926	57-0965380
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

6 Logue Court, Greenville, SC 29615

(Address of principal executive offices, including zip code)

864-288-2432

(Registrant’s telephone number, including area code)

Title of Each Class	Trading Symbol	Name of Each Exchange on Which Registered
Common Stock, no par value	SCSC	NASDAQ Global Select Market

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   ☐   

Item 2.02. Results of Operations and Financial Condition

On November 8, 2022, ScanSource, Inc. (the "Company") issued a press release announcing its financial results for its first quarter ended September 30, 2022. A copy of the press release and accompanying Earnings Infographic are attached as Exhibits 99.1 and 99.2 hereto and incorporated herein by reference and also made available through the Company’s website at www.scansource.com. An updated investor presentation will be made available on the Company's website within approximately two weeks.

The information in Item 2.02 of this Report, including the exhibits, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any other filing under the Securities Act of 1933 or the Exchange Act.

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

On November 3, 2022, Michael Grainger, who has served on the Board since 2004, notified the Board that he plans to retire from the Board when his current term of office expires at the next Annual Meeting of Shareholders. The Board expects that the Board will be decreased in size to eight at that time. This transition is not a result of any disagreement between Mr. Grainger and the Company.

The full text of the press release announcing Mr. Grainger's retirement is furnished as Exhibit 99.3 to this report and shall not be deemed "filed" for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any other filing under the Securities Act of 1933 or the Exchange Act.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits

99.1 – Press release issued by ScanSource, Inc. on November 8, 2022. The information contained in the attached exhibit is unaudited and should be read in conjunction with the Company’s annual and quarterly reports filed with the Securities and Exchange Commission.

99.2 – Earnings Infographic for the financial results conference call held on November 8, 2022.  The information contained in the attached exhibit is unaudited and should be read in conjunction with the Company’s annual and quarterly reports filed with the Securities and Exchange Commission.

99.3 – Press release issued by ScanSource, Inc. on November 8, 2022.

Exhibit Number	Description
99.1	Press release
99.2	Earnings Infographic
99.3	Press release
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		ScanSource, Inc.
Date:	November 8, 2022	/s/ STEVE JONES
		Steve Jones
		Senior Executive Vice President and Chief Financial Officer

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

Contact:
Steve Jones	Mary M. Gentry
Senior EVP, Chief Financial Officer	SVP, Treasurer and Investor Relations
ScanSource, Inc.	ScanSource, Inc.
(864) 286-4302	(864) 286-4892

SCANSOURCE DELIVERS OUTSTANDING FIRST QUARTER PERFORMANCE

10% net sales growth drove record earnings per share

GREENVILLE, SC -- November 8, 2022 -- ScanSource, Inc. (NASDAQ: SCSC), a leading hybrid distributor connecting devices to the cloud, today announced financial results for the first quarter ended September 30, 2022.

	First Quarter Summary
	Q1 FY23			Q1 FY22			Change
	(in thousands, except per share data)
Select reported measures:
Net sales	$	943,813		$	857,583		10.1%
Gross profit	$	113,485		$	101,572		11.7%
Gross profit margin %	12.02		%	11.84		%	18bp
Operating income	$	34,888		$	30,328		15.0%
GAAP net income	$	24,042		$	22,073		8.9%
GAAP diluted EPS	$	0.94		$	0.86		9.3%
Select Non-GAAP measures:
Adjusted EBITDA	$	45,275		$	41,394		9.4%
Adjusted EBITDA margin %	4.80		%	4.83		%	-3bp
Non-GAAP net income	$	27,203		$	25,550		6.5%
Non-GAAP diluted EPS	$	1.07		$	0.99		8.1%

"We had an outstanding start to our fiscal year, delivering 10% net sales growth and record earnings per share. This exceptional performance is a result of strong demand and working capital investments to meet the needs of our channel partners," said Mike Baur, Chairman and CEO, ScanSource, Inc. "We are winning with our channel partners because of our differentiated hybrid distribution strategy."

Quarterly Results

Net sales for the first quarter of fiscal year 2023 totaled $943.8 million, up 10.1% year-over-year, with strong growth in North America. First quarter fiscal year 2023 net sales in the Specialty Technology Solutions segment increased 14.9% year-over-year to $576.3 million, driven by broad-based demand across technologies and execution by our people. First quarter fiscal year 2023 net sales in Modern Communications & Cloud increased 3.3% year-over-year to $367.5 million, primarily due to increased demand for our communications solutions.

Gross profit for the first quarter of fiscal year 2023 totaled $113.5 million, up 11.7% year-over-year. The increase is primarily due to higher sales volume and higher vendor program recognition compared to the prior-year quarter. Gross profit margin increased to 12.02% for the first quarter of fiscal year 2023, up from 11.84% in the prior-year quarter.

For the first quarter of fiscal year 2023, operating income increased to $34.9 million from $30.3 million in the prior-year quarter. First quarter fiscal year 2023 non-GAAP operating income increased to $39.1 million for a 4.15% non-GAAP operating income margin, compared to $34.9 million and a 4.07% non-GAAP operating margin for the prior-year quarter.

1

Exhibit 99.1

On a GAAP basis, net income for the first quarter of fiscal year 2023 totaled $24.0 million, or $0.94 per diluted share, compared to net income of $22.1 million, or $0.86 per diluted share, for the prior-year quarter. First quarter fiscal year 2023 non-GAAP net income totaled $27.2 million, or $1.07 per diluted share. These results compare to first quarter fiscal year 2022 non-GAAP net income of $25.6 million, or $0.99 per diluted share.

Adjusted EBITDA for the first quarter of fiscal year 2023 increased 9.4% to $45.3 million, or 4.80% of net sales, compared to $41.4 million, or 4.83% of net sales in the prior-year quarter. Adjusted return on invested capital totaled 15.6% for first quarter fiscal year 2023, compared to 17.5% in the prior-year quarter, primarily from increased average invested capital for the current year quarter.

Annual Financial Outlook for Fiscal Year 2023

ScanSource reaffirms previously provided guidance set forth below for the full fiscal year ended June 30, 2023.

	FY23 Annual Outlook
Net sales growth, year-over-year	At least 5.5%
Adjusted EBITDA (non-GAAP)	At least $174 million

Adjusted EBITDA is a non-GAAP measure, which excludes estimates for amortization of intangible assets, depreciation expense, and non-cash share-based compensation expense. ScanSource’s outlook does not include the potential impact of any business combinations, asset acquisitions, divestitures, strategic investments, or other significant transactions that may be completed after the date hereof. These statements are forward-looking, and actual results may differ materially.

Webcast Details and Earnings Infographic

At approximately 8:45 a.m. ET today, an Earnings Infographic, as a supplement to this press release and the Company's conference call, will be available on ScanSource's website, www.scansource.com (Investor Relations section). ScanSource will present additional information about its financial results and business in a conference call today, November 8, 2022, at 10:30 a.m. ET. A webcast of the call will be available for all interested parties and can be accessed at www.scansource.com (Investor Relations section). The webcast will be available for replay for 60 days.

Safe Harbor Statement

This press release contains “forward-looking” statements, including the Company's FY23 outlook, which involve risks and uncertainties. Any number of factors could cause actual results to differ materially from anticipated results, including, but not limited to, failure to hire and retain quality employees, risk to the Company's business from a cyber-security attack, supply chain challenges, the failure to manage and implement the Company's organic growth strategy, economic weakness and inflation, a failure of the Company's IT systems, a failure to acquire new businesses, changes in interest and exchange rates and regulatory regimes impacting the Company's international operations, credit risks involving the Company's larger customers and suppliers, loss of the Company's major customers, termination of the Company's relationship with key suppliers or a significant modification of the terms under which it operates with a key supplier, changes in the Company's operating strategy, and other factors set forth in the "Risk Factors" contained in the Company's annual report on Form 10-K for the year ended June 30, 2022, filed with the Securities and Exchange Commission. Except as may be required by law, the Company expressly disclaims any obligation to update these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.

Non-GAAP Financial Information

In addition to disclosing results that are determined in accordance with United States Generally Accepted Accounting Principles ("GAAP"), the Company also discloses certain non-GAAP financial measures, which are summarized below. Non-GAAP financial measures are used to understand and evaluate performance, including comparisons from period to period. Non-GAAP results exclude amortization of intangible assets related to acquisitions, change in fair value of contingent consideration, acquisition costs, restructuring costs and other non-GAAP adjustments.

Net sales on a constant currency basis, excluding acquisitions (organic growth): The Company discloses the percentage change in net sales excluding the translation impact from changes in foreign currency exchange rates between reporting periods

2

and excluding the net sales from acquisitions prior to the first full year from the acquisition date. This measure enhances the comparability between periods to help analyze underlying trends on an organic basis.

Additional Non-GAAP Metrics: To evaluate current period performance on a more consistent basis with prior periods, the Company discloses non-GAAP SG&A expenses, non-GAAP operating income, non-GAAP net income and non-GAAP diluted earnings per share (non-GAAP diluted "EPS"). Non-GAAP results exclude amortization of intangible assets related to acquisitions, changes in fair value of contingent consideration, acquisition and divestiture costs, impairment charges, restructuring costs, and other non-GAAP adjustments. These year-over-year metrics include the translation impact of changes in foreign currency exchange rates. Non-GAAP metrics are useful in assessing and understanding the Company's operating performance, especially when comparing results with previous periods or forecasting performance for future periods.

Adjusted earnings before interest expense, income taxes, depreciation, and amortization (“Adjusted EBITDA”): Adjusted EBITDA starts with net income and adds back interest expense, income tax expense, depreciation expense, amortization of intangible assets, changes in fair value of contingent considerations, and other non-GAAP adjustments, including acquisition and divestiture costs, impairment charges, restructuring costs and non-cash share-based compensation expense. Since Adjusted EBITDA excludes some non-cash costs of investing in our business and people, management believes that Adjusted EBITDA shows the profitability from our business operations more clearly. The presentation for Adjusted EBITDA for all periods presented has been recast to reflect this change to enhance comparability between periods.

Adjusted return on invested capital ("Adjusted ROIC"): Adjusted ROIC assists management in comparing the Company's performance over various reporting periods on a consistent basis because it removes from our operating results the impact of items that do not reflect our core operating performance. We believe the calculation of Adjusted ROIC provides useful information to investors and is an additional relevant comparison of our performance. Adjusted ROIC is calculated as Adjusted EBITDA over invested capital. Invested capital is defined as average equity plus average daily funded interest-bearing debt for the period. Management believes the calculation of Adjusted ROIC provides useful information to investors and is an additional relevant comparison of the Company's performance during the year.

These non-GAAP financial measures have limitations as analytical tools, and the non-GAAP financial measures that the Company reports may not be comparable to similarly titled amounts reported by other companies. Analysis of results and outlook on a non-GAAP basis should be considered in addition to, and not in substitution for or as superior to, measurements of financial performance prepared in accordance with GAAP. A reconciliation of the Company's non-GAAP financial information to GAAP is set forth in the Supplementary Information (Unaudited) below.

About ScanSource, Inc.

ScanSource, Inc. (NASDAQ: SCSC) is a leading hybrid distributor connecting devices to the cloud and accelerating growth for partners across hardware, SaaS, connectivity and cloud. ScanSource enables partners to deliver solutions for their customers to address changing end-user buying and consumption patterns. ScanSource sells through multiple, specialized routes-to-market with hardware, SaaS, connectivity and cloud services offerings from the world’s leading suppliers of point-of-sale (POS), payments, barcode, physical security, unified communications and collaboration, telecom and cloud services. Founded in 1992 and headquartered in Greenville, South Carolina, ScanSource was named one of the 2022 Best Places to Work in South Carolina and on FORTUNE magazine’s 2022 List of World’s Most Admired Companies. ScanSource ranks #773 on the Fortune 1000. For more information, visit www.scansource.com.

3

ScanSource Delivers Outstanding First Quarter Performance

ScanSource, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands)
	September 30, 2022		June 30, 2022*
Assets
Current assets:
Cash and cash equivalents	$	40,472	$	37,987
Accounts receivable, less allowance of $13,942 at September 30, 2022 and $16,806 at June 30, 2022	744,946		729,442
Inventories	675,798		614,814
Prepaid expenses and other current assets	126,484		141,562
Total current assets	1,587,700		1,523,805
Property and equipment, net	36,853		37,477
Goodwill	211,736		214,435
Identifiable intangible assets, net	78,724		84,427
Deferred income taxes	13,381		15,668
Other non-current assets	71,918		61,616
Total assets	$	2,000,312	$	1,937,428
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	710,919	$	714,177
Accrued expenses and other current liabilities	73,760		88,455
Income taxes payable	5,274		34
Current portion of long-term debt	4,102		11,598
Total current liabilities	794,055		814,264
Deferred income taxes	2,882		3,144
Long-term debt, net of current portion	149,631		123,733
Borrowings under revolving credit facility	172,702		135,839
Other long-term liabilities	54,038		53,920
Total liabilities	1,173,308		1,130,900
Commitments and contingencies
Shareholders’ equity:
Preferred stock, no par value; 3,000,000 shares authorized, none issued	—		—
Common stock, no par value; 45,000,000 shares authorized, 25,225,902 and 25,187,351 shares issued and outstanding at September 30, 2022 and June 30, 2022, respectively	66,069		64,297
Retained earnings	870,911		846,869
Accumulated other comprehensive loss	(109,976)		(104,638)
Total shareholders’ equity	827,004		806,528
Total liabilities and shareholders’ equity	$	2,000,312	$	1,937,428

*Derived from audited financial statements.

4

ScanSource Delivers Outstanding First Quarter Performance

ScanSource, Inc. and Subsidiaries
Condensed Consolidated Income Statements (Unaudited)
(in thousands, except per share data)
	Quarter ended September 30,
	2022		2021
Net sales	$	943,813	$	857,583
Cost of goods sold	830,328		756,011
Gross profit	113,485		101,572
Selling, general and administrative expenses	71,593		63,854
Depreciation expense	2,763		2,880
Intangible amortization expense	4,241		4,510
Operating income	34,888		30,328
Interest expense	3,448		1,660
Interest income	(1,589)		(1,026)
Other expense, net	746		263
Income before income taxes	32,283		29,431
Provision for income taxes	8,241		7,358
Net income	$	24,042	$	22,073
Per share data:
Net income per common share, basic	$	0.95	$	0.87
Weighted-average shares outstanding, basic	25,201		25,512
Net income per common share, diluted	$	0.94	$	0.86
Weighted-average shares outstanding, diluted	25,451		25,696

5

ScanSource Delivers Outstanding First Quarter Performance

ScanSource, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in thousands)
	Quarter ended September 30,
	2022		2021
Cash flows from operating activities:
Net income	$	24,042	$	22,073
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	7,228		7,650
Amortization of debt issue costs	289		104
Provision for doubtful accounts	125		(1,027)
Share-based compensation	2,316		2,570
Deferred income taxes	2,274		(183)
Finance lease interest	2		17
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	(18,799)		(26,714)
Inventories	(62,192)		(25,879)
Prepaid expenses and other assets	14,690		(1,174)
Other non-current assets	(9,469)		691
Accounts payable	(1,053)		(26,962)
Accrued expenses and other liabilities	(13,168)		(14,683)
Income taxes payable	5,256		6,558
Net cash used in operating activities	(48,459)		(56,959)
Cash flows from investing activities:
Capital expenditures	(1,758)		(1,090)
Net cash used in investing activities	(1,758)		(1,090)
Cash flows from financing activities:
Borrowings on revolving credit, net of expenses	579,011		526,637
Repayments on revolving credit, net of expenses	(542,147)		(470,237)
Borrowings on long-term debt, net	18,402		(2,218)
Finance lease obligations	771		(316)
Debt issuance costs	(1,407)		—
Exercise of stock options	10		994
Taxes paid on settlement of equity awards	(596)		—
Net cash provided by financing activities	54,044		54,860
Effect of exchange rate changes on cash and cash equivalents	(1,342)		(4,038)
Increase (decrease) in cash and cash equivalents	2,485		(7,227)
Cash and cash equivalents at beginning of period	37,987		62,718
Cash and cash equivalents at period end	$	40,472	$	55,491

6

ScanSource Delivers Outstanding First Quarter Performance

ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
(in thousands, except percentages)
Non-GAAP Financial Information:
	Quarter ended September 30,
	2022			2021
Adjusted return on invested capital ratio (Adjusted ROIC), annualized(a)	15.6		%	17.5		%
Reconciliation of Net Income to Adjusted EBITDA:
Net income (GAAP)	$	24,042		$	22,073
Plus: Interest expense	3,448			1,660
Plus: Income taxes	8,241			7,358
Plus: Depreciation and amortization	7,228			7,650
EBITDA (non-GAAP)	42,959			38,741
Plus: Share-based compensation	2,316			2,570
Plus: Acquisition and divestiture costs(b)	—			83
Adjusted EBITDA (numerator for Adjusted ROIC) (non-GAAP)	$	45,275		$	41,394
Invested Capital Calculations:
Equity – beginning of the quarter	$	806,528		$	731,191
Equity – end of the quarter	827,004			746,094
Plus: Share-based compensation, net	1,718			1,922
Plus: Acquisition and divestiture costs(b)	—			83
Average equity	817,625			739,645
Average funded debt (c)	336,428			197,406
Invested capital (denominator for Adjusted ROIC) (non-GAAP)	$	1,154,053		$	937,051
(a) The annualized adjusted EBITDA amount is divided by days in the quarter times 365 days per year, or 366 days for leap year. There were 92 days in the current and prior-year quarter.
(b) Acquisition and divestiture costs are generally nondeductible for tax purposes.
(c) Average funded debt is calculated as the average daily amounts outstanding on short-term and long-term interest-bearing debt.

7

ScanSource Delivers Outstanding First Quarter Performance

ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
Net Sales by Segment:
	Quarter ended September 30,
	2022		2021		% Change
Specialty Technology Solutions:	(in thousands)
Net sales, reported	$	576,329	$	501,711	14.9	%
Foreign exchange impact (a)	60		—
Non-GAAP net sales, constant currency	$	576,389	$	501,711	14.9	%
Modern Communications & Cloud:
Net sales, reported	$	367,484	$	355,872	3.3	%
Foreign exchange impact (a)	613		—
Non-GAAP net sales, constant currency	$	368,097	$	355,872	3.4	%
Consolidated:
Net sales, reported	$	943,813	$	857,583	10.1	%
Foreign exchange impact (a)	673		—
Non-GAAP net sales, constant currency	$	944,486	$	857,583	10.1	%
(a)Year-over-year net sales growth rate excluding the translation impact of changes in foreign currency exchange rates. Calculated by translating the net sales for the quarter ended September 30, 2022 into U.S. dollars using the average foreign exchange rates for the quarter ended September 30, 2021.

ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
Net Sales by Geography:
	Quarter ended September 30,
	2022		2021		% Change
United States and Canada:	(in thousands)
Net sales, as reported	$	859,538	$	769,771	11.7	%
International:
Net sales, reported	$	84,275	$	87,812	(4.0)	%
Foreign exchange impact(a)	673		—
Non-GAAP net sales, constant currency	$	84,948	$	87,812	(3.3)	%
Consolidated:
Net sales, reported	$	943,813	$	857,583	10.1	%
Foreign exchange impact(a)	673		—
Non-GAAP net sales, constant currency	$	944,486	$	857,583	10.1	%
(a)Year-over-year net sales growth rate excluding the translation impact of changes in foreign currency exchange rates. Calculated by translating the net sales for the quarter ended September 30, 2022 into U.S. dollars using the average foreign exchange rates for the quarter ended September 30, 2021.

8

ScanSource Delivers Outstanding First Quarter Performance

	Quarter ended September 30, 2022
	GAAP Measure	Intangible amortization expense	Acquisition and divestiture costs	Non-GAAP measure
	(in thousands, except per share data)
SG&A expenses	$71,593	—	—	$71,593
Operating income	34,888	4,241	—	39,129
Net income	24,042	3,161	—	27,203
Diluted EPS	$0.94	$0.12	—	$1.07
	Quarter ended September 30, 2021
	GAAP Measure	Intangible amortization expense	Acquisition and divestiture costs	Non-GAAP measure
	(in thousands, except per share data)
SG&A expense	$63,854	—	$(83)	$63,771
Operating income	30,328	4,510	83	34,921
Net income	22,073	3,394	83	25,550
Diluted EPS	$0.86	$0.13	—	$0.99

9

ScanSource Delivers Outstanding First Quarter Performance

ScanSource, Inc. and Subsidiaries
Supplementary Forward-Looking Information (Unaudited)
Annual Financial Outlook for Fiscal Year 2023:
		FY23 Outlook
GAAP, Operating income	At least $132 million
Intangible amortization	$17 million
Depreciation expense	$12 million
Share-based compensation expense	$12 million
Interest income and other income (expense), net		$1 million
Adjusted EBITDA (non-GAAP)	At least $174 million

10

EX-99.2

Fiscal First Quarter 2023 Earnings We had an outstanding start to our fiscal year, delivering 10% net sales growth and record earnings per share. This exceptional performance is a result of strong demand and working capital investments to meet the needs of our channel partners.” Mike Baur Chairman and CEO, ScanSource, Inc. Key Highlights 10% Net Sales Growth and 12% Gross Profit Growth Winning with our Differentiated Hybrid Distribution Strategy Investments in Working Capital to Meet Demand and Deliver Strong Adj. ROIC Net Sales +10% Y/Y $943.8M 10% Net Sales Growth Drove Record EPS © ScanSource 2022 Consolidated Specialty Technology Solutions Segment Gross Profit +12% Y/Y $113.5M, 12.0% margin Modern Communications & Cloud Segment STS, Net Sales +15% Y/Y $576.3M MC&C, Net Sales +3% Y/Y $367.5M STS, Gross Profit +28% Y/Y $58.4M, 10.1% margin MC&C, Gross Profit -1% Y/Y $55.1M, 15.0% margin Exhibit 99.2

* Non-GAAP measure; adjusted ROIC represents return on invested capital For further financial data, non-GAAP financial disclosures and cautionary language regarding forward-looking statements, please refer to the following pages and ScanSource’s first quarter fiscal year 2023 news release issued on November 8, 2022, which accompanies this presentation and is available at www.scansource.com in the Investor Relations section. First Quarter Metrics Reflect Operational Excellence Focused Execution of Value Creation Strategy Solid Financial Foundation for Growth Fiscal Year 2023 Outlook updated as of November 8, 2022 $0.94 per share +9% Y/Y GAAP Diluted EPS All-time Company record $1.07 per share +8% Y/Y Non-GAAP Diluted EPS* All-time Company record $45.3M +9% Y/Y Adjusted EBITDA* All-time Company record $(116)M TTM Operating Cash Flow Working capital for growth 15.6% Adjusted ROIC* No Q1 share repurchases 4.80% Adjusted EBITDA Margin* 1.7x net debt to TTM adjusted EBITDA Target range: 1x to 2x 5.1x inventory turns 5-qtr range: 5.1x to 6.3x Paid for inventory days of 7.2 5-qtr range: (3.2) to 7.2 71 days sales outstanding 5-qtr range: 62 to 71 A repositioned company – Innovative hybrid distributor Attractive financial profile Delivering long-term sustainable growth Differentiated market position © ScanSource 2022 At Least 5.5% Net Sales Growth At Least $174M +4% Y/Y Adjusted EBITDA* 2 Building on specialized technologies

Forward-Looking Statements This Earnings Infographic and supporting materials contain certain comments that are “forward- looking” statements, including statements about our FY23 outlook, growth opportunities and our operating strategies that involve plans, strategies, economic performance and trends, projections, expectations, costs or beliefs about future events and other statements that are not descriptions of historical facts. Forward-looking information is inherently subject to risks and uncertainties. Any number of factors could cause actual results to differ materially from anticipated or forecasted results, including but not limited to, the failure to hire and retain quality employees, risk to our business from a cyber-security attack, the failure to manage and implement our organic growth strategy, economic weakness and inflation, a failure of our IT systems, a failure to acquire new businesses, changes in interest and exchange rates and regulatory regimes impacting our international operations, loss of our major customers, termination of our relationship with key suppliers or a significant modification of the terms under which we operate with a key supplier, changes in our operating strategy, and other factors set forth in the “Risk Factors” contained in our annual report on Form 10-K for the year ended June 30, 2022, and subsequent reports on Form 10-Q, filed with the Securities and Exchange Commission (“SEC”). Although ScanSource believes the expectations in its forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievement. ScanSource disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required by law. Non-GAAP Financial Information In addition to disclosing results that are determined in accordance with United States Generally Accepted Accounting Principles (“GAAP”), the Company also discloses certain non-GAAP measures, including non-GAAP operating income, non-GAAP operating income margin, non-GAAP net income, non-GAAP diluted EPS, non-GAAP net sales, non-GAAP SG&A expenses, adjusted EBITDA, adjusted ROIC and net sales less impacts from foreign currency translation and acquisitions (organic growth). A reconciliation of the Company's non-GAAP financial information to GAAP financial information is provided in the following supporting materials and in the Company’s Form 8-K, filed with the SEC, with the quarterly earnings press release for the period indicated. 3

Consolidated, 5-Quarter Financial Summary - for continuing operations ($ in thousands, except per share data) Q1 FY23 Q4 FY22 Q3 FY22 Q2 FY22 Q1 FY22 Q/Q Y/Y Select reported GAAP measures: Net sales $ 943,813 $ 962,283 $ 845,990 $ 864,351 $ 857,583 (2)% 10% Gross profit $ 113,485 $ 110,792 $ 106,508 $ 107,925 $ 101,572 2% 12% Gross profit margin % 12.0 % 11.5 % 12.6 % 12.5 % 11.8 % 51 bp 18 bp SG&A expenses $ 71,593 $ 75,905 $ 66,522 $ 69,433 $ 63,854 (6)% 12% Operating income $ 34,888 $ 27,424 $ 32,917 $ 31,498 $ 30,328 27% 15% Operating income % 3.70 % 2.85 % 3.89 % 3.64 % 3.54 % 85 bp 16 bp Net income $ 24,042 $ 19,947 $ 23,526 $ 23,152 $ 22,073 21% 9% Diluted EPS $ 0.94 $ 0.78 $ 0.91 $ 0.89 $ 0.86 21% 9% Select reported Non-GAAP measures: (a) Non-GAAP operating income $ 39,129 $ 31,864 $ 37,374 $ 35,892 $ 34,921 23% 12% Non-GAAP operating income % 4.15 % 3.31 % 4.42 % 4.15 % 4.07 % 84 bp 7 bp Non-GAAP net income $ 27,203 $ 23,266 $ 26,879 $ 26,446 $ 25,550 17% 6% Non-GAAP diluted EPS $ 1.07 $ 0.91 $ 1.04 $ 1.02 $ 0.99 18% 8% Adjusted EBITDA $ 45,275 $ 38,672 $ 44,115 $ 42,542 $ 41,394 17% 9% Adjusted EBITDA % 4.80 % 4.02 % 5.21 % 4.92 % 4.83 % 78 bp (3) bp Adjusted ROIC 15.6 % 14.9 % 18.0 % 17.6 % 17.5 % 70 bp (190) bp Operating cash flow (QTR) $ (48,459) $ (78,684) $ 29,707 $ (18,419) $ (56,959) 38% (15)% Operating cash flow (TTM) $ (115,855) $ (124,355) $ 15,674 $ (74,285) $ (11,417) (7)% 915% (a) See pages 11 through 12 for the calculation of non-GAAP measures and reconciliations to GAAP measures. ScanSource, Inc. Earnings Infographic Q1 FY2023 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 4 November 8, 2022

Specialty Technology Solutions, 5-Quarter Financial Summary ($ in thousands) Q1 FY23 Q4 FY22 Q3 FY22 Q2 FY22 Q1 FY22 Q/Q Y/Y Net sales $ 576,329 $ 580,619 $ 503,072 $ 496,920 $ 501,711 (1)% 15% Gross profit $ 58,404 $ 53,994 $ 54,021 $ 52,048 $ 45,694 8% 28% Gross profit margin % 10.1 % 9.3 % 10.7 % 10.5 % 9.1 % 84 bp 103 bp GAAP operating income $ 21,852 $ 15,408 $ 20,623 $ 16,551 $ 14,104 42% 55% GAAP operating income % 3.79 % 2.65 % 4.10 % 3.33 % 2.81 % 114 bp 98 bp Add: Intangible amortization expense $ 1,341 $ 1,491 $ 1,491 $ 1,491 $ 1,531 (10)% (12)% Non-GAAP operating income $ 23,193 $ 16,899 $ 22,114 $ 18,042 $ 15,635 37% 48% Non-GAAP operating income % 4.02 % 2.91 % 4.40 % 3.63 % 3.12 % 111 bp 91 bp Reconciliation of Operating Income to Adjusted EBITDA GAAP operating income $ 21,852 $ 15,408 $ 20,623 $ 16,551 $ 14,104 42% 55% Plus: Depreciation expense 1,941 2,089 1,833 1,867 1,868 (7)% 4% Intangible amortization expense 1,341 1,491 1,491 1,491 1,531 (10)% (12)% Interest income 321 325 265 299 305 (1)% 5% Other income/(expense), net (125) (141) 165 (169) 13 *nm *nm EBITDA 25,330 19,172 24,377 20,039 17,821 32% 42% Adjustments: Share-based compensation expense 1,556 1,710 1,659 2,038 1,398 (9)% 11% Adjusted EBITDA (non-GAAP) $ 26,886 $ 20,882 $ 26,036 $ 22,077 $ 19,219 29% 40% Adjusted EBITDA (non-GAAP) % 4.67 % 3.60 % 5.18 % 4.44 % 3.83 % 107 bp 83 bp *nm - percentages are not meaningful ScanSource, Inc. Earnings Infographic Q1 FY2023 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 5 November 8, 2022

Modern Communications & Cloud, 5-Quarter Financial Summary ($ in thousands) Q1 FY23 Q4 FY22 Q3 FY22 Q2 FY22 Q1 FY22 Q/Q Y/Y Net sales $ 367,484 $ 381,664 $ 342,918 $ 367,431 $ 355,872 (4)% 3% Gross profit $ 55,081 $ 56,798 $ 52,487 $ 55,877 $ 55,878 (3)% (1)% Gross profit margin % 15.0 % 14.9 % 15.3 % 15.2 % 15.7 % 11 bp (71) bp GAAP operating income $ 13,036 $ 12,016 $ 12,294 $ 14,894 $ 16,307 8% (20)% GAAP operating income % 3.55 % 3.15 % 3.59 % 4.05 % 4.58 % 40 bp (104) bp Add: Intangible amortization expense $ 2,900 $ 2,949 $ 2,966 $ 2,956 $ 2,978 (2)% (3)% Non-GAAP operating income $ 15,936 $ 14,965 $ 15,260 $ 17,850 $ 19,285 6% (17)% Non-GAAP operating income % 4.34 % 3.92 % 4.45 % 4.86 % 5.42 % 42 bp (108) bp Reconciliation of Operating Income to Adjusted EBITDA GAAP operating income $ 13,036 $ 12,016 $ 12,294 $ 14,894 $ 16,307 8% (20)% Plus: Depreciation expense 1,046 1,172 1,015 916 1,273 (11)% (18)% Intangible amortization expense 2,900 2,948 2,966 2,955 2,978 (2)% (3)% Interest income 1,269 1,035 735 648 721 23% 76% Other income/(expense), net (623) (542) (28) (374) (276) *nm *nm EBITDA 17,628 16,629 16,982 19,039 21,003 6% (16)% Adjustments: Share-based compensation expense 760 1,162 1,098 1,426 1,173 (35)% (35)% Adjusted EBITDA (non-GAAP) $ 18,388 $ 17,791 $ 18,080 $ 20,465 $ 22,176 3% (17)% Adjusted EBITDA (non-GAAP) % 5.00 % 4.66 % 5.27 % 5.57 % 6.23 % 34 bp (123) bp *nm - percentages are not meaningful ScanSource, Inc. Earnings Infographic Q1 FY2023 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 6 November 8, 2022

Net Sales, Constant Currency (Organic Growth) - QTR Net Sales by Segment: ($ In thousands) Q1 FY23 Q1 FY22 % Change Specialty Technology Solutions: Net sales, as reported $ 576,329 $ 501,711 14.9 % Foreign exchange impact (a) 60 — Net sales, constant currency (non-GAAP) $ 576,389 $ 501,711 14.9 % Modern Communications & Cloud: Net sales, as reported $ 367,484 $ 355,872 3.3 % Foreign exchange impact (a) 613 — Net sales, constant currency (non-GAAP) $ 368,097 $ 355,872 3.4 % Consolidated: Net sales, as reported $ 943,813 $ 857,583 10.1 % Foreign exchange impact (a) 673 — Net sales, constant currency (non-GAAP) $ 944,486 $ 857,583 10.1 % Net Sales by Geography: ($ in thousands) Q1 FY23 Q1 FY22 % Change United States and Canada: Net sales, as reported $ 859,538 $ 769,771 11.7 % International: Net sales, as reported $ 84,275 $ 87,812 (4.0) % Foreign exchange impact (a) 673 — Net sales, constant currency (non-GAAP) $ 84,948 $ 87,812 (3.3) % Consolidated: Net sales, as reported $ 943,813 $ 857,583 10.1 % Foreign exchange impact (a) 673 — Net sales, constant currency (non-GAAP) $ 944,486 $ 857,583 10.1 % (a) Year-over-year sales growth excluding the translation impact of changes in foreign currency rates. Calculated by translating net sales for the quarter ended September 30, 2022 into U.S. dollars using the weighted-average foreign exchange rates for the quarter ended September 30, 2021. ScanSource, Inc. Earnings Infographic Q1 FY2023 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 7 November 8, 2022

Average Adjusted Return on Invested Capital - QTR ($ in thousands) Q1 FY23 Q4 FY22 Q3 FY22 Q2 FY22 Q1 FY22 Adjusted return on invested capital (ROIC), annualized (a) 15.6 % 14.9 % 18.0 % 17.6 % 17.5 % Reconciliation of Net Income to Adjusted EBITDA Net income from continuing operations - GAAP $ 24,042 $ 19,947 $ 23,526 $ 23,152 $ 22,073 Plus: Interest expense 3,448 1,886 1,483 1,493 1,660 Income taxes 8,241 6,267 9,044 7,257 7,358 Depreciation and amortization 7,228 7,700 7,305 7,229 7,650 EBITDA 42,959 35,800 41,358 39,131 38,741 Adjustments: Acquisition and divestiture costs — — — (53) 83 Share-based compensation 2,316 2,872 2,757 3,464 2,570 Adjusted EBITDA (numerator for Adjusted ROIC) (non-GAAP) $ 45,275 $ 38,672 $ 44,115 $ 42,542 $ 41,394 Invested Capital Calculation Equity - beginning of the quarter $ 806,528 $ 806,654 $ 768,525 $ 746,094 $ 731,191 Equity - end of quarter 827,004 806,528 806,654 768,525 746,094 Adjustments: Share-based compensation, net 1,718 2,134 2,063 2,590 1,922 Acquisition and divestiture costs — — — (53) 83 Discontinued operations net income — — — (100) — Average equity 817,625 807,658 788,621 758,528 739,645 Average funded debt (b) 336,428 233,445 205,073 200,708 197,406 Invested capital (denominator for Adjusted ROIC) (non-GAAP) $ 1,154,053 $ 1,041,103 $ 993,694 $ 959,236 $ 937,051 (a) Calculated as net income plus interest expense, income taxes, depreciation and amortization (EBITDA), annualized divided by invested capital for the period. Adjusted EBITDA reflects other adjustments for non-GAAP measures. (b) Average funded debt, which includes both continuing and discontinued operations, is calculated as the daily average amounts outstanding on our short-term and long-term interest-bearing debt. ScanSource, Inc. Earnings Infographic Q1 FY2023 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 8 November 8, 2022

Net Debt and Adjusted EBITDA Metrics ($ in thousands) Q1 FY23 Q4 FY22 Q3 FY22 Q2 FY22 Q1 FY22 Consolidated debt (Q/E) $ 326,435 $ 271,170 $ 181,500 $ 196,866 $ 197,356 Less: Consolidated cash and cash equivalents (Q/E) (40,472) (37,987) (43,539) (34,123) (55,491) Net debt (Q/E) $ 285,963 $ 233,183 $ 137,961 $ 162,743 $ 141,865 Reconciliation of Net Income to Adjusted EBITDA Net income from continuing operations - GAAP $ 24,042 $ 19,947 $ 23,526 $ 23,152 $ 22,073 Plus: Interest expense 3,448 1,886 1,483 1,493 1,660 Income taxes 8,241 6,267 9,044 7,257 7,358 Depreciation and amortization 7,228 7,700 7,305 7,229 7,650 EBITDA 42,959 35,800 41,358 39,131 38,741 Adjustments: Acquisition and divestiture costs — — — (53) 83 Share-based compensation 2,316 2,872 2,757 3,464 2,570 Adjusted EBITDA (non-GAAP) $ 45,275 $ 38,672 $ 44,115 $ 42,542 $ 41,394 Adjusted EBITDA, TTM (a) $ 170,604 $ 166,723 $ 163,350 $ 151,234 $ 138,431 Net Debt / Adjusted EBITDA, TTM (a) 1.7x 1.4x 0.8x 1.1x 1.0x (a) Adjusted EBITDA for the trailing 12-month period ScanSource, Inc. Earnings Infographic Q1 FY2023 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 9 November 8, 2022

Working Capital, 5-Quarter Summary ($ in thousands) Q1 FY23 Q4 FY22 Q3 FY22 Q2 FY22 Q1 FY22 Accounts Receivable (Q/E) $ 744,946 $ 729,442 $ 642,384 $ 613,186 $ 589,532 Days sales outstanding in receivables 71 68 69 64 62 Inventory (Q/E) $ 675,798 $ 614,814 $ 591,396 $ 562,397 $ 493,541 Inventory turns 5.1 5.6 5.1 5.7 6.3 Accounts payable (Q/E) $ 710,919 $ 714,177 $ 706,359 $ 653,190 $ 602,229 Paid for inventory days* 7.2 (0.8) (2.9) (0.5) (3.2) Working Capital (Q/E) (AR+INV-AP) $ 709,825 $ 630,079 $ 527,421 $ 522,393 $ 480,844 Cash conversion cycle 80 68 66 64 59 *Paid for inventory days represent Q/E inventory days less Q/E accounts payable days ScanSource, Inc. Earnings Infographic Q1 FY2023 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 10 November 8, 2022

Operating Income, Net Income & EPS - QTR ($ in thousands) Quarter ended September 30, 2022 Reported GAAP measure Intangible amortization expense Acquisition, divestiture and restructuring costs Non-GAAP measure SG&A expenses $71,593 — — $71,593 Operating income 34,888 4,241 — 39,129 Net income 24,042 3,161 — 27,203 Diluted EPS $0.94 $0.12 — $1.07 ($ in thousands) Quarter ended June 30, 2022 Reported GAAP measure Intangible amortization expense Acquisition, divestiture and restructuring cost Non-GAAP measure SG&A expenses $75,905 — — $75,905 Operating income 27,424 4,440 — 31,864 Net income 19,947 3,319 — 23,266 Diluted EPS $0.78 $0.13 — $0.91 ScanSource, Inc. Earnings Infographic Q1 FY2023 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 11 November 8, 2022

Operating Income, Net Income & EPS - QTR, continued ($ in thousands) Quarter ended March 31, 2022 Reported GAAP measure Intangible amortization expense Acquisition, divestiture and restructuring costs(a) Non-GAAP measure SG&A expenses $66,522 — — $66,522 Operating income 32,917 4,457 — 37,374 Net income 23,526 3,353 — 26,879 Diluted EPS $0.91 $0.13 — $1.04 ($ in thousands) Quarter ended December 31, 2021 Reported GAAP measure Intangible amortization expense Acquisition, divestiture and restructuring costs(a) Non-GAAP measure SG&A expenses $69,433 — $53 $69,486 Operating income 31,498 4,447 (53) 35,892 Net income 23,152 3,347 (53) 26,446 Diluted EPS $0.89 $0.13 — $1.02 (a) Acquisition and divestiture costs totaled less than $(0.1) million for the quarter ended December 31, 2021 and are generally nondeductible for tax purposes. ($ in thousands) Quarter ended September 30, 2021 Reported GAAP measure Intangible amortization expense Acquisition, divestiture and restructuring costs(a) Non-GAAP measure SG&A expenses $63,854 — $(83) $63,771 Operating income 30,328 4,510 83 34,921 Net income 22,073 3,394 83 25,550 Diluted EPS $0.86 $0.13 — $0.99 (a) Acquisition and divestiture costs totaled $0.1 million for the quarter ended September 30, 2021 and are generally nondeductible for tax purposes. ScanSource, Inc. Earnings Infographic Q1 FY2023 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 12 November 8, 2022

FY23 Annual Financial Outlook Reconciliation FY23 Outlook GAAP, operating income At least $132 million Intangible amortization $17 million Depreciation expense $12 million Share-based compensation expense $12 million Interest income and other income (expense), net $1 million Adjusted EBITDA (non-GAAP) At least $174 million ScanSource, Inc. Earnings Infographic Q1 FY2023 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 13 November 8, 2022

EX-99.3

Exhibit 99.3

For Immediate Release	Contact: Melissa Andrews
November 8, 2022	864.286.4425
	melissa.andrews@scansource.com

SCANSOURCE ANNOUNCES RETIREMENT OF MIKE GRAINGER FROM BOARD OF DIRECTORS

GREENVILLE, SC — ScanSource, Inc. (NASDAQ: SCSC), a leading hybrid distributor connecting devices to the cloud, today announced the upcoming retirement of Mike Grainger from its Board of Directors. Mr. Grainger, who has served as a Director of ScanSource since 2004, will retire from the Board when his current term of office expires effective at ScanSource’s next Annual Meeting of Shareholders on January 26, 2023.

“Mike has been an invaluable member of our Board for nearly 20 years. His in-depth knowledge of the distribution industry, as well as his strong financial and accounting acumen have served ScanSource well,” said Mike Baur, Chairman and CEO, ScanSource, Inc. “I personally want to thank him for his insight, support, leadership and humor. We all wish him well in his retirement.”

With Mr. Grainger’s retirement, the ScanSource Board of Directors will consist of eight members.

About ScanSource, Inc.

ScanSource, Inc. (NASDAQ: SCSC) is a leading hybrid distributor connecting devices to the cloud and accelerating growth for partners across hardware, software, connectivity and cloud. ScanSource enables partners to deliver solutions for their customers to address changing end-user buying and consumption patterns. ScanSource sells through multiple, specialized routes-to-market with hardware, software, connectivity and cloud services offerings from the world’s leading suppliers of point-of-sale (POS), payments, barcode, physical security, unified communications and collaboration, telecom and cloud services. Founded in 1992 and headquartered in Greenville, South Carolina, ScanSource was named one of the 2022 Best Places to Work in South Carolina and on FORTUNE magazine’s 2022 List of World’s Most Admired Companies. ScanSource ranks #773 on the Fortune 1000. For more information, visit www.scansource.com.

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Cover Page	Nov. 03, 2022
Cover [Abstract]
Document Type	8-K
Document Period End Date	Nov. 03, 2022
Entity Registrant Name	ScanSource, Inc.
Entity Incorporation, State or Country Code	SC
Entity File Number	00-26926
Entity Tax Identification Number	57-0965380
Entity Address, Address Line One	6 Logue Court
Entity Address, City or Town	Greenville
Entity Address, State or Province	SC
Entity Address, Postal Zip Code	29615
City Area Code	864
Local Phone Number	288-2432
Title of 12(b) Security	Common Stock, no par value
Trading Symbol	SCSC
Security Exchange Name	NASDAQ
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Entity Central Index Key	0000918965
Amendment Flag	false