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): August 16, 2023

 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 August 22, 2023, ScanSource, Inc. (the "Company") issued a press release announcing its financial results for its fourth quarter ended June 30, 2023. 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 August 16, 2023, the Board of Directors (the “Board”) of ScanSource, Inc. (the “Company”) increased the size of its Board to nine members and appointed Vernon J. Nagel as a director of the Company. Mr. Nagel was also appointed to serve on the Audit, Compensation, and Nominating and Corporate Governance Committees of the Board.

Mr. Nagel, age 65, served as Executive Chairman of the Board of Directors of Acuity Brands, Inc., an industrial technology company, from February 2020 until December 2020. Mr. Nagel previously served as Chairman and Chief Executive Officer of Acuity Brands from September 2004 through January 2020 and as President of Acuity Brands from August 2005 to August 2019. Mr. Nagel previously served as Vice Chairman and Chief Financial Officer of Acuity Brands from January 2004 through August 2004 and as Executive Vice President and Chief Financial Officer of Acuity Brands from December 2001 to January 2004. Mr. Nagel currently serves as a member of the Board of Directors of The AZEK Company, a provider of sustainable outdoor living products, and Southwire, a provider of wire, cable and other electrical products.

Upon his appointment to the Board, Mr. Nagel became entitled to receive benefits under the Company’s non-employee directors’ compensation plan, including an annual retainer of $85,000. Mr. Nagel will also be entitled to reimbursement of his expenses incurred in connection with the performance of his services as a director.

In addition, Mr. Nagel will receive annual awards of restricted stock units under the Company’s 2021 Omnibus Incentive Compensation Plan (the “2021 Plan”). Each non-employee director of the Company annually receives an award of restricted stock units with an aggregate value on the date of grant of $150,000. Restricted stock units granted under the 2021 Plan will vest in full upon the earlier of the twelve-month anniversary of the Grant Date (as defined in the 2021 Plan) or the Company’s next annual meeting of shareholders. Notwithstanding the foregoing, the restricted stock units will vest in full upon (i) Mr. Nagel’s termination of service as a director by reason of death, disability or retirement or (ii) a change in control of the Company. If Mr. Nagel terminates his service as a director for any other reason, he will forfeit all of his right, title and interest in and to the restricted stock as of the date of termination.

There are no transactions between Mr. Nagel or any member of his immediate family and the Company or any of its subsidiaries and there is no arrangement or understanding between Mr. Nagel and any other persons or entities pursuant to which Mr. Nagel was appointed as a director of the Company.

The full text of the press release announcing Mr. Nagel’s appointment is furnished as Exhibit 99.1 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 August 22, 2023. 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 August 22, 2023.  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 August 21, 2023.

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:	August 22, 2023	/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 REPORTS FOURTH QUARTER AND FULL-YEAR RESULTS

GREENVILLE, SC -- August 22, 2023 -- ScanSource, Inc. (NASDAQ: SCSC), a leading hybrid distributor connecting devices to the cloud, today announced financial results for the fourth quarter ended June 30, 2023.

	Fourth Quarter Summary							Fiscal Year Summary
	Q4 FY23			Q4 FY22			Change	FY23			FY22			Change
	(in thousands, except per share data)
Select reported measures:
Net sales	$	947,149		$	962,283		-1.6%	$	3,787,721		$	3,529,935		7.3%
Gross profit	$	108,659		$	110,792		-1.9%	$	449,239		$	426,524		5.3%
Gross profit margin %	11.47		%	11.51		%	-4bp	11.86		%	12.08		%	-22bp
Operating income	$	27,289		$	27,424		-0.5%	$	135,886		$	122,167		11.2%
GAAP net income	$	17,095		$	19,947		-14.3%	$	88,092		$	88,698		-0.7%
GAAP diluted EPS	$	0.68		$	0.78		-12.8%	$	3.47		$	3.44		0.9%
Select Non-GAAP measures:
Adjusted EBITDA	$	40,199		$	38,672		3.9%	$	179,943		$	166,723		7.9%
Adjusted EBITDA margin %	4.24		%	4.02		%	22bp	4.75		%	4.72		%	3bp
Non-GAAP net income	$	19,213		$	23,266		-17.4%	$	97,688		$	102,140		-4.4%
Non-GAAP diluted EPS	$	0.76		$	0.91		-16.5%	$	3.85		$	3.97		-3.0%

“As we enter our new fiscal year, strong free cash flow and focus on Intelisys are keys to our success,” said Mike Baur, Chairman and CEO, ScanSource, Inc. “Now that the supply chain challenges are behind us, we are normalizing our working capital to meet our margin expectations and market demand.”

Quarterly Results

Net sales for the fourth quarter of fiscal year 2023 totaled $947.1 million, down 1.6% year-over-year. Fourth quarter fiscal year 2023 sales and execution reinforce the resilience of ScanSource’s business amid a cyberattack that impacted the Company’s core systems for its hardware business. Specialty Technology Solutions net sales for the fourth quarter decreased 3.3% year-over-year to $561.5 million. Strength in networking and security partially offset the lost sales from the cyberattack and a slowdown in mobility and barcoding. Modern Communications & Cloud net sales for the fourth quarter increased 1.0% year-over-year to $385.6 million, led by growth in Cisco products. Intelisys net billings increased to approximately $2.47 billion annualized, and Intelisys net sales for fourth quarter increased 8% year-over-year.

Gross profit for the fourth quarter of fiscal year 2023 decreased 1.9% year-over-year to $108.7 million. Gross profit margin for the fourth quarter was 11.47% versus 11.51% in the prior-year quarter.

For the fourth quarter of fiscal year 2023, operating income was $27.3 million compared to $27.4 million in the prior-year quarter. Fourth quarter fiscal year 2023 non-GAAP operating income increased to $32.8 million for a 3.46% non-GAAP operating income margin, up from $31.9 million for the prior-year quarter.

On a GAAP basis, net income for the fourth quarter of fiscal year 2023 totaled $17.1 million, or $0.68 per diluted share, compared to net income of $19.9 million, or $0.78 per diluted share, for the prior-year quarter. Fourth quarter fiscal year 2023

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non-GAAP net income totaled $19.2 million, or $0.76 per diluted share, down from $23.3 million, or $0.91 per diluted share, for the prior-year quarter. Interest expense increased to $5.6 million, up significantly from $1.9 million for the prior-year quarter, reflecting higher interest rates and higher borrowings.

Adjusted EBITDA for the fourth quarter of fiscal year 2023 increased 3.9% to $40.2 million, or 4.24% of net sales, compared to $38.7 million, or 4.02% of net sales, for the prior-year quarter.

Full-Year Results

For fiscal year 2023, net sales increased 7.3% to $3.8 billion, or a 7.2% year-over-year increase on an organic basis. Fiscal year 2023 net sales in the Specialty Technology Solutions segment increased 11.9% to $2.3 billion, led by growth in networking, security, and barcoding. Fiscal year 2023 net sales in the Modern Communications & Cloud segment increased 0.6% year-over-year to $1.5 billion led by growth in Cisco products.

Gross profit for the fiscal year 2023 totaled $449.2 million, up 5.3% year-over-year. The increase is primarily due to higher sales volume compared to the prior year. Gross profit margin decreased to 11.9%, down from 12.1% in the prior year.

For the fiscal year ended June 30, 2023, operating income increased to $135.9 million from $122.2 million in the prior year. Fiscal year 2023 non-GAAP operating income increased to $151.1 million for a 3.99% non-GAAP operating income margin, up from $140.1 million for the prior year.

On a GAAP basis, net income for the fiscal year ended June 30, 2023 totaled $88.1 million, or $3.47 per diluted share, compared to net income of $88.7 million, or $3.44 per diluted share for the prior year. Fiscal year 2023 non-GAAP net income totaled $97.7 million, or $3.85 per diluted share, compared to $102.1 million, or $3.97 per diluted share for the prior year. Interest expense increased to $19.8 million, up significantly from $6.5 million for the prior year, reflecting higher interest rates and higher borrowings.

Adjusted EBITDA for the fiscal year ended June 30, 2023 increased to $179.9 million, or 4.75% of net sales, compared to $166.7 million, or 4.72%, of net sales for the prior-year.

Annual Financial Outlook for Fiscal Year 2024

The following guidance is based on ScanSource's current expectations for the full fiscal year ended June 30, 2024.

	FY24 Annual Outlook
Net sales growth, year-over-year	At least 3%
Adjusted EBITDA (Non-GAAP)	At least $180 million
Free cash flow	At least $150 million

Adjusted EBITDA is a non-GAAP measure, which excludes estimates for amortization of intangible assets, depreciation expense, and non-cash shared-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.

Fourth Quarter Cyberattack

On May 14, 2023, ScanSource discovered it was subject to a cyberattack that impacted some of its systems. Upon detection, the Company immediately launched its incident response plan. Thanks to the exceptional work of ScanSource’s employees, in conjunction with external cybersecurity experts, the Company’s core systems were restored, and operations resumed on May 26, 2023.

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, August 22, 2023, at 10:30 a.m.

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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 FY24 outlook, which involve 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 following factors, which are neither presented in order of importance nor weighted: macroeconomic conditions, including potential prolonged economic weakness, inflation, the failure to manage and implement the Company's organic growth strategy, credit risks involving the Company's larger customers and suppliers, changes in interest and exchange rates and regulatory regimes impacting the Company's international operations, economic weakness and inflation, risk to our business from a cyberattack, a failure of our IT systems, failure to hire and retain quality employees, loss of the Company's major customers, relationships with our key suppliers and customers or a termination or a modification of the terms under which it operates with these key suppliers, 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, 2023. 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 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 operating income margin, 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, cyberattack restoration costs, tax recovery, 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. The Adjusted EBITDA margin is calculated as Adjusted EBITDA as a percentage of net sales.

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.

Free cash flow: We present free cash flow as we believe this measure provides more information regarding our liquidity and capital resources. Free cash flow is defined as cash flows from operating activities less capital expenditures.

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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 customers across hardware, SaaS, connectivity and cloud. ScanSource enables customers to deliver solutions for their end users to address changing 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 2023 Best Places to Work in South Carolina and on FORTUNE magazine’s 2023 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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SCANSOURCE REPORTS FOURTH QUARTER AND FULL-YEAR RESULTS

ScanSource, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands)
	June 30, 2023		June 30, 2022*
Assets
Current assets:
Cash and cash equivalents	$	36,178	$	37,987
Accounts receivable, less allowance of $15,480 at June 30, 2023 and $16,806 at June 30, 2022	753,236		729,442
Inventories	757,574		614,814
Prepaid expenses and other current assets	110,087		141,562
Total current assets	1,657,075		1,523,805
Property and equipment, net	37,379		37,477
Goodwill	216,706		214,435
Identifiable intangible assets, net	68,495		84,427
Deferred income taxes	17,764		15,668
Other non-current assets	70,750		61,616
Total assets	$	2,068,169	$	1,937,428
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	691,119	$	714,177
Accrued expenses and other current liabilities	78,892		88,455
Income taxes payable	9,875		34
Current portion of long-term debt	6,915		11,598
Total current liabilities	786,801		814,264
Deferred income taxes	3,816		3,144
Long-term debt, net of current portion	144,006		123,733
Borrowings under revolving credit facility	178,980		135,839
Other long-term liabilities	49,268		53,920
Total liabilities	1,162,871		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, 24,844,203 and 25,187,351 shares issued and outstanding at June 30, 2023 and June 30, 2022, respectively	58,241		64,297
Retained earnings	936,678		846,869
Accumulated other comprehensive loss	(89,621)		(104,638)
Total shareholders’ equity	905,298		806,528
Total liabilities and shareholders’ equity	$	2,068,169	$	1,937,428

*Derived from audited financial statements.

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SCANSOURCE REPORTS FOURTH QUARTER AND FULL-YEAR RESULTS

ScanSource, Inc. and Subsidiaries
Condensed Consolidated Income Statements (Unaudited)
(in thousands, except per share data)
	Quarter ended June 30,				Fiscal year ended June 30,
	2023		2022		2023		2022
Net sales	$	947,149	$	962,283	$	3,787,721	$	3,529,935
Cost of goods sold	838,490		851,491		3,338,482		3,103,411
Gross profit	108,659		110,792		449,239		426,524
Selling, general and administrative expenses	74,358		75,905		285,695		275,442
Depreciation expense	2,827		3,023		10,912		11,062
Intangible amortization expense	4,185		4,440		16,746		17,853
Operating income	27,289		27,424		135,886		122,167
Interest expense	5,564		1,886		19,786		6,523
Interest income	(2,085)		(1,360)		(7,414)		(4,333)
Other expense, net	348		684		1,664		1,354
Income before income taxes	23,462		26,214		121,850		118,623
Provision for income taxes	6,367		6,267		33,758		29,925
Net income from continuing operations	17,095		19,947		88,092		88,698
Net income from discontinued operations	1,717		—		1,717		100
Net income	$	18,812	$	19,947	$	89,809	$	88,798
Per share data:
Net income from continuing operations per common share, basic	$	0.69	$	0.79	$	3.50	$	3.48
Net income from discontinued operations per common share, basic	0.07		—		0.07		—
Net income per common share, basic	$	0.76	$	0.79	$	3.57	$	3.48
Weighted-average shares outstanding, basic	24,883		25,286		25,142		25,504
Net income from continuing operations per common share, diluted	$	0.68	$	0.78	$	3.47	$	3.44
Net income from discontinued operations per common share, diluted	0.07		—		0.07		—
Net income per common share, diluted	$	0.75	$	0.78	$	3.54	$	3.45
Weighted-average shares outstanding, diluted	25,139		25,584		25,362		25,758

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SCANSOURCE REPORTS FOURTH QUARTER AND FULL-YEAR RESULTS

ScanSource, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in thousands)
	Quarter ended June 30,				Fiscal year ended June 30,
	2023		2022		2023		2022
Cash flows from operating activities:
Net income	$	18,812	$	19,947	$	89,809	$	88,798
Net income (loss) from discontinued operations	1,717		—		1,717		100
Net income from continuing operations	17,095		19,947		88,092		88,698
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	7,256		7,701		28,614		29,884
Amortization of debt issue costs	96		104		577		417
Provision for doubtful accounts	933		1,357		2,785		1,514
Share-based compensation	2,586		2,872		11,219		11,663
Deferred income taxes	(2,905)		3,742		(1,496)		5,737
Finance lease interest	12		1		44		34
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	(64,020)		(98,535)		(17,368)		(165,939)
Inventories	(2,057)		(27,613)		(138,313)		(145,962)
Prepaid expenses and other assets	(6,526)		(12,369)		32,653		(27,371)
Other non-current assets	(5,810)		3,914		(7,582)		1,123
Accounts payable	30,061		15,434		(30,656)		82,969
Accrued expenses and other liabilities	2,587		7,876		(14,195)		(4,869)
Income taxes payable	5,431		(3,115)		9,857		(2,252)
Net cash used in operating activities	(15,261)		(78,684)		(35,769)		(124,354)
Cash flows from investing activities:
Capital expenditures	(3,431)		(3,523)		(9,979)		(6,849)
Cash received for business disposal	1,717		—		1,717		3,125
Net cash used in investing activities	(1,714)		(3,523)		(8,262)		(3,724)
Cash flows from financing activities:
Borrowings on revolving credit, net of expenses	627,257		569,139		2,499,166		2,166,409
Repayments on revolving credit, net of expenses	(607,470)		(477,593)		(2,456,025)		(2,030,569)
Borrowings (repayments) on long-term debt, net	(938)		(1,875)		15,590		(7,843)
Repayments on finance lease obligation	23		(306)		(589)		(1,238)
Debt issuance costs	—		—		(1,407)		—
Exercise of stock options	57		712		910		2,304
Taxes paid on settlement of equity awards	(30)		(26)		(2,463)		(2,754)
Common stock repurchased	(4,933)		(9,676)		(15,651)		(18,203)
Net cash provided by financing activities	13,966		80,375		39,531		108,106
Effect of exchange rate changes on cash and cash equivalents	1,813		(3,721)		2,691		(4,759)
Decrease in cash and cash equivalents	(1,196)		(5,553)		(1,809)		(24,731)
Cash and cash equivalents at beginning of period	37,374		43,539		37,987		62,718
Cash and cash equivalents at period end	$	36,178	$	37,986	$	36,178	$	37,987

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SCANSOURCE REPORTS FOURTH QUARTER AND FULL-YEAR RESULTS

ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
(in thousands, except percentages)
Non-GAAP Financial Information:
	Quarter ended June 30,						Fiscal year ended June 30,
	2023			2022			2023			2022
Adjusted return on invested capital ratio (Adjusted ROIC), annualized(a)	12.9		%	14.9		%	14.6		%	17.0		%
Reconciliation of Net Income to Adjusted EBITDA:
Net income (GAAP)	$	17,095		$	19,947		$	88,092		$	88,698
Plus: Interest expense	5,564			1,886			19,786			6,523
Plus: Income taxes	6,367			6,267			33,758			29,925
Plus: Depreciation and amortization	7,255			7,700			28,614			29,884
EBITDA (non-GAAP)	36,281			35,800			170,250			155,030
Plus: Share-based compensation	2,586			2,872			11,219			11,663
Plus: Tax recovery	(128)			—			(2,986)			—
Plus: Cyberattack restoration costs	1,460			—			1,460			—
Plus: Acquisition and divestiture costs	—			—			—			30
Adjusted EBITDA (numerator for Adjusted ROIC) (non-GAAP)	$	40,199		$	38,672		$	179,943		$	166,723
Invested Capital Calculations:
Equity – beginning of the quarter	$	878,895		$	806,654		$	806,528		$	731,191
Equity – end of the quarter	905,298			806,528			905,298			806,528
Plus: Share-based compensation, net	1,921			2,134			8,326			8,709
Plus: Cyberattack restoration costs	1,092			—			1,092			—
Plus: Divestiture costs	—			—			—			30
Plus: Discontinued operations net income	(1,717)			—			(1,717)			(100)
Plus: Tax recovery, net	(2,100)			—			(3,985)			—
Average equity	891,695			807,658			857,771			773,179
Average funded debt (b)	361,792			233,445			372,235			209,114
Invested capital (denominator for Adjusted ROIC) (non-GAAP)	$	1,253,487		$	1,041,103		$	1,230,006		$	982,293
(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 91 days in the current and prior-year quarter.
(b) Average funded debt is calculated as the average daily amounts outstanding on short-term and long-term interest-bearing debt.

8

SCANSOURCE REPORTS FOURTH QUARTER AND FULL-YEAR RESULTS

ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
Net Sales by Segment:
	Quarter ended June 30,
	2023		2022		% Change
Specialty Technology Solutions:	(in thousands)
Net sales, reported	$	561,501	$	580,619	(3.3)	%
Foreign exchange impact (a)	76		—
Non-GAAP net sales, constant currency	$	561,577	$	580,619	(3.3)	%
Modern Communications & Cloud:
Net sales, reported	$	385,648	$	381,664	1.0	%
Foreign exchange impact (a)	139		—
Non-GAAP net sales, constant currency	$	385,787	$	381,664	1.1	%
Consolidated:
Net sales, reported	$	947,149	$	962,283	(1.6)	%
Foreign exchange impact (a)	215		—
Non-GAAP net sales, constant currency	$	947,364	$	962,283	(1.6)	%
(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 June 30, 2023 into U.S. dollars using the average foreign exchange rates for the quarter ended June 30, 2022.

ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
Net Sales by Segment:
	Fiscal year ended June 30,
	2023		2022		% Change
Specialty Technology Solutions	(in thousands)
Net sales, reported	$	2,331,030	$	2,082,321	11.9	%
Foreign exchange impact (a)	(923)		—
Non-GAAP net sales, constant currency	$	2,330,107	$	2,082,321	11.9	%
Modern Communications & Cloud
Net sales, reported	$	1,456,691	$	1,447,614	0.6	%
Foreign exchange impact (a)	(3,492)		—
Non-GAAP net sales, constant currency	$	1,453,199	$	1,447,614	0.4	%
Consolidated:
Net sales, reported	$	3,787,721	$	3,529,935	7.3	%
Foreign exchange impact (a)	(4,415)		—
Non-GAAP net sales, constant currency	$	3,783,306	$	3,529,935	7.2	%
(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 fiscal yearended June 30, 2023 into U.S. dollars using the average foreign exchange rates for the fiscal year ended June 30, 2022.

9

SCANSOURCE REPORTS FOURTH QUARTER AND FULL-YEAR RESULTS

ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
Net Sales by Geography:
	Quarter ended June 30,
	2023		2022		% Change
United States and Canada:	(in thousands)
Net sales, as reported	$	854,521	$	865,736	(1.3)	%
International:
Net sales, reported	$	92,628	$	96,547	(4.1)	%
Foreign exchange impact(a)	215		—
Non-GAAP net sales, constant currency	$	92,843	$	96,547	(3.8)	%
Consolidated:
Net sales, reported	$	947,149	$	962,283	(1.6)	%
Foreign exchange impact(a)	215		—
Non-GAAP net sales, constant currency	$	947,364	$	962,283	(1.6)	%
(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 June 30, 2023 into U.S. dollars using the average foreign exchange rates for the quarter ended June 30, 2022.

ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
Net Sales by Geography:
	Fiscal year ended June 30,
	2023		2022		% Change
United States and Canada:	(in thousands)
Net sales, as reported	$	3,432,074	$	3,173,694	8.1	%
International:
Net sales, reported	$	355,647	$	356,241	(0.2)	%
Foreign exchange impact(a)	(4,415)		—
Non-GAAP net sales, constant currency	$	351,232	$	356,241	(1.4)	%
Consolidated:
Net sales, reported	$	3,787,721	$	3,529,935	7.3	%
Foreign exchange impact(a)	(4,415)		—
Non-GAAP net sales, constant currency	$	3,783,306	$	3,529,935	7.2	%
(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 fiscal year ended June 30, 2023 into U.S. dollars using the average foreign exchange rates for the fiscal year ended June 30, 2022.

10

SCANSOURCE REPORTS FOURTH QUARTER AND FULL-YEAR RESULTS

ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
(in thousands, except per share data)
Non-GAAP Financial Information:
	Quarter ended June 30, 2023
		GAAP Measure	Intangible amortization expense	Tax recovery	Cyberattack restoration costs	Non-GAAP measure
	(in thousands, except per share data)
SG&A expenses		$74,358	—	$128	$(1,460)	$73,026
Operating income		27,289	4,185	(128)	1,460	32,806
Operating income margin		2.88%	0.44%	(0.01)%	0.15%	3.46%
Net income		17,095	3,126	(2,100)	1,092	19,213
Diluted EPS		$0.68	$0.12	$(0.08)	$0.04	$0.76
	Quarter ended June 30, 2022
		GAAP Measure	Intangible amortization expense	Tax recovery	Cyberattack restoration costs	Non-GAAP measure
	(in thousands, except per share data)
SG&A expense		$75,905	—	—	—	$75,905
Operating income		27,424	4,440	—	—	31,864
Operating income margin		2.85%	0.46%	—%	—%	3.31%
Net income		19,947	3,319	—	—	23,266
Diluted EPS		$0.78	$0.13	—	—	$0.91

11

SCANSOURCE REPORTS FOURTH QUARTER AND FULL-YEAR RESULTS

ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
(in thousands, except per share data)
Non-GAAP Financial Information:
	Year ended June 30, 2023
	Reported GAAP measure	Intangible amortization expense	Acquisition, divestiture and restructuring costs	Tax recovery, net	Cyberattack restoration costs	Non-GAAP measure
	(in thousands, except per share data)
SG&A expenses	$285,695	—	—	$2,986	$(1,460)	$287,221
Operating income	135,886	16,746	—	(2,986)	1,460	151,106
Operating income margin	3.59%	0.44%	—%	(0.08)%	0.04%	3.99%
Net income	88,092	12,489	—	(3,985)	1,092	97,688
Diluted EPS	$3.47	$0.49	—	$(0.16)	$0.04	$3.85
	Year ended June 30, 2022
	Reported GAAP measure	Intangible amortization expense	Acquisition, divestiture and restructuring costs(a)	Tax recovery, net	Cyberattack restoration costs	Non-GAAP measure
	(in thousands, except per share data)
SG&A expenses	$275,442	—	$(30)	—	—	$275,412
Operating income	122,167	17,853	30	—	—	140,050
Operating income margin	3.46%	0.51%	—%	—%	—%	3.97%
Net income	88,698	13,412	30	—	—	102,140
Diluted EPS	$3.44	$0.52	—	—	—	$3.97
(a) Divestiture costs totaled less than $0.1 million for the fiscal year ended June 30, 2022 and are generally nondeductible for tax purposes.

12

SCANSOURCE REPORTS FOURTH QUARTER AND FULL-YEAR RESULTS

Annual Financial Outlook for Fiscal Year 2024:

	FY 24 Outlook
GAAP operating income	At least $134 million
Intangible amortization	$17 million
Depreciation expense	$12 million
Share-based compensation expense	$12 million
Interest income and income (expense), net	$5 million
Adjusted EBITDA (non-GAAP)	At least $180 million

GAAP operating cash flow	At least $160 million
Less: Capital expenditures	$10 million
Free cash flow	At least $150 million

13

EX-99.2

Fiscal Fourth Quarter and Full Year 2023 Earnings As we enter our new fiscal year, strong free cash flow and focus on Intelisys are keys for our success. Now that the supply chain challenges are behind us, we are normalizing our working capital to meet our margin expectations and market demand.” Mike Baur Chairman and CEO, ScanSource, Inc. Key Highlights FY23 Net Sales and Gross Profit Opportunity with Hybrid Distribution Remains Compelling Navigated Well through Q4 Cyberattack Net Sales +7% Y/Y $3.8B Achieved Strategic Plan for FY23 © ScanSource 2022 Consolidated Specialty Technology Solutions Segment Gross Profit +5% Y/Y $449M, 11.9% margin Modern Communications & Cloud Segment STS, Net Sales +12% Y/Y $2.3B MC&C, Net Sales +1% Y/Y $1.5B STS, Gross Profit +9% Y/Y $224M, 9.6% margin MC&C, Gross Profit +2% Y/Y $225M, 15.4% 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 fourth quarter fiscal year 2024 news release issued  on August 22, 2023, which accompanies this presentation and is available at www.scansource.com in the Investor  Relations section. Operating Metrics Focused Execution of Value Creation Strategy Reiterating Mid-Term Goals Mid-term: 3-to-4-year time frame Fiscal Year 2024 Annual Outlook as of August 22, 2023 $0.68 per share Q4 -13% Y/Y $3.47 per share FY23 +1% Y/Y GAAP Diluted EPS $40.2M Q4 +4% Y/Y $179.9M FY23 +8% Y/Y Adjusted EBITDA* FY23 all-time Company record $(15)M Q4 $(36)M FY23 Operating Cash Flow 12.9% Q4 14.6% FY23 Adjusted ROIC* $16M share repurchases in FY23 4.24% Q4 4.75% FY23 Adjusted EBITDA Margin © ScanSource 2022 2 A repositioned company – Innovative hybrid distributor Attractive financial profile Delivering long-term sustainable growth Differentiated market position Building on specialized technologies $0.76 per share Q4 -16% Y/Y $3.85 per share FY23 -3% Y/Y Non-GAAP Diluted EPS* Net Sales Growth At least 3% Adjusted EBITDA At least $180 million Free Cash Flow At least $150 million Net Sales Growth per year Adjusted EBITDA Margin Adjusted ROIC Recurring Revenue as % of Gross Profits 5%-7.5% 4.5%-5% Mid Teens Building to 30%+

Forward-Looking Statements This Earnings Infographic and supporting materials contain certain comments that are “forward- looking” statements, including statements about our FY24 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 following factors, which are neither presented in order of importance nor weighted: macroeconomic conditions, including potential prolonged economic weakness, inflation and supply chain challenges, the failure to manage and implement our organic growth strategy, credit risks involving our larger customers and suppliers, changes in interest and exchange rates and regulatory regimes impacting our international operations, economic weakness and inflation, risk to our business from a cyberattack, a failure of our IT systems, failure to hire and retain quality employees, loss of our major customers, relationships with our key suppliers and customers or a termination or a modification of the terms under which we operate with these key suppliers and customers, 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, 2023 filed with the Securities and Exchange Commission. 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 EBITDA margin, net debt, adjusted ROIC, free cash flow 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) Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 Q4 FY22 Q/Q Y/Y Select reported GAAP measures: Net sales $ 947,149 $ 885,519 $ 1,011,241 $ 943,813 $ 962,283 7% (2)% Gross profit $ 108,659 $ 111,762 $ 115,334 $ 113,485 $ 110,792 (3)% (2)% Gross profit margin % 11.5 % 12.6 % 11.4 % 12.0 % 11.5 % (115) bp (4) bp SG&A expenses $ 74,358 $ 70,669 $ 69,074 $ 71,593 $ 75,905 5% (2)% Operating income $ 27,289 $ 34,279 $ 39,432 $ 34,888 $ 27,424 (20)% —% Operating income margin % 2.88 % 3.87 % 3.90 % 3.70 % 2.85 % (99) bp 3 bp Net income $ 17,095 $ 21,221 $ 25,734 $ 24,042 $ 19,947 (19)% (14)% Diluted EPS $ 0.68 $ 0.83 $ 1.01 $ 0.94 $ 0.78 (18)% (13)% Select reported Non-GAAP measures: (a) Non-GAAP operating income $ 32,806 $ 38,449 $ 40,724 $ 39,129 $ 31,864 (15)% 3% Non-GAAP operating income margin % 3.46 % 4.34 % 4.03 % 4.15 % 3.31 % (88) bp 15 bp Non-GAAP net income $ 19,213 $ 24,330 $ 26,941 $ 27,203 $ 23,266 (21)% (17)% Non-GAAP diluted EPS $ 0.76 $ 0.96 $ 1.06 $ 1.07 $ 0.91 (21)% (16)% Adjusted EBITDA $ 40,199 $ 45,656 $ 48,815 $ 45,275 $ 38,672 (12)% 4% Adjusted EBITDA margin % 4.24 % 5.16 % 4.83 % 4.80 % 4.02 % (91) bp 23 bp Adjusted ROIC 12.9 % 14.6 % 15.6 % 15.6 % 14.9 % (170) bp (200) bp Operating cash flow (QTR) $ (15,261) $ 54,837 $ (26,885) $ (48,459) $ (78,684) *nm *nm Operating cash flow (TTM) $ (35,768) $ (99,191) $ (124,321) $ (115,855) $ (124,355) *nm *nm (a) See pages 13 through 15 for the calculation of non-GAAP measures and reconciliations to GAAP measures. *nm - percentages are not meaningful ScanSource, Inc. Earnings Infographic Q4 FY2023 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 4 August 22, 2023

Specialty Technology Solutions, 5-Quarter Financial Summary ($ in thousands) Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 Q4 FY22 Q/Q Y/Y Net sales $ 561,501 $ 565,652 $ 627,548 $ 576,329 $ 580,619 (1)% (3)% Gross profit $ 51,440 $ 57,664 $ 56,732 $ 58,404 $ 53,994 (11)% (5)% Gross profit margin % 9.2 % 10.2 % 9.0 % 10.1 % 9.3 % (103) bp (14) bp GAAP operating income $ 14,343 $ 19,811 $ 19,682 $ 21,852 $ 15,408 (28)% (7)% GAAP operating income % 2.55 % 3.50 % 3.14 % 3.79 % 2.65 % (95) bp (10) bp Add: Intangible amortization expense $ 1,261 $ 1,266 $ 1,266 $ 1,341 $ 1,491 —% (15)% Non-GAAP operating income $ 15,604 $ 21,077 $ 20,948 $ 23,193 $ 16,899 (26)% (8)% Non-GAAP operating income % 2.78 % 3.73 % 3.34 % 4.02 % 2.91 % (95) bp (13) bp Reconciliation of Operating Income to Adjusted EBITDA GAAP operating income $ 14,343 $ 19,811 $ 19,682 $ 21,852 $ 15,408 (28)% (7)% Plus: Depreciation expense 1,954 1,862 1,873 1,941 2,089 5% (6)% Intangible amortization expense 1,261 1,266 1,266 1,341 1,491 —% (15)% Interest income 776 354 194 321 325 119% 139% Other income/(expense), net (40) (54) 71 (125) (141) *nm *nm EBITDA 18,294 23,239 23,086 25,330 19,172 (21)% (5)% Adjustments: Share-based compensation expense 1,586 1,867 2,203 1,556 1,710 (15)% (7)% Adjusted EBITDA (non-GAAP) $ 19,880 $ 25,106 $ 25,289 $ 26,886 $ 20,882 (21)% (5)% Adjusted EBITDA (non-GAAP) % 3.54 % 4.44 % 4.03 % 4.67 % 3.60 % (90) bp (6) bp *nm - percentages are not meaningful ScanSource, Inc. Earnings Infographic Q4 FY2023 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 5 August 22, 2023

Modern Communications & Cloud, 5-Quarter Financial Summary ($ in thousands) Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 Q4 FY22 Q/Q Y/Y Net sales $ 385,648 $ 319,867 $ 383,693 $ 367,484 $ 381,664 21% 1% Gross profit $ 57,219 $ 54,098 $ 58,602 $ 55,081 $ 56,798 6% 1% Gross profit margin % 14.8 % 16.9 % 15.3 % 15.0 % 14.9 % (210) bp (10) bp GAAP operating income $ 14,406 $ 14,468 $ 19,750 $ 13,036 $ 12,016 —% 20% GAAP operating income % 3.74 % 4.52 % 5.15 % 3.55 % 3.15 % (78) bp 59 bp Add: Intangible amortization expense $ 2,924 $ 2,904 $ 2,884 $ 2,900 $ 2,949 1% (1)% Add: Tax recovery(a) $ (128) $ — $ (2,858) $ — $ — *nm *nm Non-GAAP operating income $ 17,202 $ 17,372 $ 19,776 $ 15,936 $ 14,965 (1)% 15% Non-GAAP operating income % 4.46 % 5.43 % 5.15 % 4.34 % 3.92 % (90) bp 60 bp Reconciliation of Operating Income to Adjusted EBITDA GAAP operating income $ 14,406 $ 14,468 $ 19,750 $ 13,036 $ 12,016 —% 20% Plus: Depreciation expense 1,117 1,042 1,034 1,046 1,172 7% (5)% Intangible amortization expense 2,924 2,904 2,884 2,900 2,949 1% (1)% Interest income 1,309 1,356 1,834 1,269 1,035 (3)% 26% Other income/(expense), net (309) (307) (280) (623) (542) *nm *nm EBITDA 19,447 19,463 25,222 17,628 16,630 —% 17% Adjustments: Share-based compensation expense 1,000 1,087 1,161 760 1,162 (8)% (14)% Tax recovery(a) (128) — (2,858) — — *nm *nm Adjusted EBITDA (non-GAAP) $ 20,319 $ 20,550 $ 23,525 $ 18,388 $ 17,792 (1)% 14% Adjusted EBITDA (non-GAAP) % 5.27 % 6.42 % 6.13 % 5.00 % 4.66 % (116) bp 61 bp (a) Recovery of prior period withholding taxes in Brazil *nm - percentages are not meaningful ScanSource, Inc. Earnings Infographic Q4 FY2023 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 6 August 22, 2023

Net Sales, Constant Currency (Organic Growth) - QTR ($ in thousands) Net Sales by Segment: Q4 FY23 Q4 FY22 % Change Specialty Technology Solutions: Net sales, as reported $ 561,501 $ 580,619 (3.3) % Foreign exchange impact (a) 76 — Net sales, constant currency (non-GAAP) $ 561,577 $ 580,619 (3.3) % Modern Communications & Cloud: Net sales, as reported $ 385,648 $ 381,664 1.0 % Foreign exchange impact (a) 139 — Net sales, constant currency (non-GAAP) $ 385,787 $ 381,664 1.1 % Consolidated: Net sales, as reported $ 947,149 $ 962,283 (1.6) % Foreign exchange impact (a) 215 — Net sales, constant currency (non-GAAP) $ 947,364 $ 962,283 (1.6) % Net Sales by Geography: Q4 FY23 Q4 FY22 % Change United States and Canada: Net sales, as reported $ 854,521 $ 865,737 (1.3) % International: Net sales, as reported $ 92,628 $ 90,761 2.1 % Foreign exchange impact (a) 215 — Net sales, constant currency (non-GAAP) $ 92,843 $ 90,761 2.3 % Consolidated: Net sales, as reported $ 947,149 $ 962,283 (1.6) % Foreign exchange impact (a) 215 — Net sales, constant currency (non-GAAP) $ 947,364 $ 962,283 (1.6) % (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 June 30, 2023 into U.S. dollars using the weighted-average foreign exchange rates for the quarter ended June 30, 2022. ScanSource, Inc. Earnings Infographic Q4 FY2023 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 7 August 22, 2023

Net Sales, Constant Currency (Organic Growth) - FY Fiscal year ended June 30, ($ In thousands) 2023 2022 % Change Specialty Technology Solutions: Net sales, as reported $ 2,331,030 $ 2,082,321 11.9 % Foreign exchange impact (a) (923) — Net sales, constant currency (non-GAAP) $ 2,330,107 $ 2,082,321 11.9 % Modern Communications & Cloud: Net sales, as reported $ 1,456,691 $ 1,447,614 0.6 % Foreign exchange impact (a) (3,492) — Net sales, constant currency (non-GAAP) $ 1,453,199 $ 1,447,614 0.4 % Consolidated: Net sales, as reported $ 3,787,721 $ 3,529,935 7.3 % Foreign exchange impact (a) (4,415) — Net sales, constant currency (non-GAAP) $ 3,783,306 $ 3,529,935 7.2 % Net Sales by Geography: Fiscal year ended June 30, ($ in thousands) 2023 2022 % Change United States and Canada: Net sales, as reported $ 3,432,074 $ 3,173,694 8.1 % International: Net sales, as reported $ 355,647 $ 356,241 (0.2) % Foreign exchange impact (a) (4,415) — Net sales, constant currency (non-GAAP) $ 351,232 $ 356,241 (1.4) % Consolidated: Net sales, as reported $ 3,787,721 $ 3,529,935 7.3 % Foreign exchange impact (a) (4,415) — Net sales, constant currency (non-GAAP) $ 3,783,306 $ 3,529,935 7.2 % (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 June 30, 2023 into U.S. dollars using the weighted-average foreign exchange rates for the quarter ended June 30, 2022. ScanSource, Inc. Earnings Infographic Q4 FY2023 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 8 August 22, 2023

Average Adjusted Return on Invested Capital - QTR ($ in thousands) Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 Q4 FY22 Adjusted return on invested capital (ROIC), annualized (a) 12.9 % 14.6 % 15.6 % 15.6 % 14.9 % Reconciliation of Net Income to Adjusted EBITDA Net income from continuing operations - GAAP $ 17,095 $ 21,221 $ 25,734 $ 24,042 $ 19,947 Plus: Interest expense 5,564 5,715 5,060 3,448 1,886 Income taxes 6,367 8,692 10,458 8,241 6,267 Depreciation and amortization 7,255 7,074 7,057 7,228 7,700 EBITDA 36,281 42,702 48,309 42,959 35,800 Adjustments: Tax recovery (b) (128) — (2,858) — — Cyberattack restoration costs 1,460 — — — — Share-based compensation 2,586 2,954 3,364 2,316 2,872 Adjusted EBITDA (numerator for Adjusted ROIC) (non-GAAP) $ 40,199 $ 45,656 $ 48,815 $ 45,275 $ 38,672 Invested Capital Calculation Equity - beginning of the quarter $ 878,895 $ 862,386 $ 827,004 $ 806,528 $ 806,654 Equity - end of quarter 905,298 878,895 862,386 827,004 806,528 Adjustments: Tax recovery, net (2,100) — (1,886) — — Share-based compensation, net 1,921 2,191 2,496 1,718 2,134 Cyberattack restoration costs, net 1,092 — — — — Discontinued operations net income (1,717) — — — — Average equity 891,695 871,736 845,000 817,625 807,658 Average funded debt (c) 361,792 398,318 392,853 336,428 233,445 Invested capital (denominator for Adjusted ROIC) (non-GAAP) $ 1,253,487 $ 1,270,054 $ 1,237,853 $ 1,154,053 $ 1,041,103 (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) Recovery of prior period withholding taxes in Brazil (c) Average funded debt is calculated as the daily average amounts outstanding on our short-term and long-term interest-bearing debt. ScanSource, Inc. Earnings Infographic Q4 FY2023 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 9 August 22, 2023

Average Adjusted Return on Invested Capital - FY ($ in thousands) FY23 FY22 Adjusted return on invested capital (ROIC), annualized (a) 14.6 % 17.0 % Reconciliation of Net Income to Adjusted EBITDA Net income from continuing operations - GAAP $ 88,092 $ 88,698 Plus: Interest expense 19,786 6,523 Income taxes 33,758 29,925 Depreciation and amortization 28,614 29,884 EBITDA 170,250 155,030 Adjustments: Share-based compensation 11,219 11,663 Acquisition and divestiture costs — 30 Tax recovery (2,986) — Cyberattack restoration costs 1,460 — Adjusted EBITDA (numerator for Adjusted ROIC) (non-GAAP) $ 179,943 $ 166,723 Invested Capital Calculation Equity - beginning of the year $ 806,528 $ 731,191 Equity - end of the year 905,298 806,528 Adjustments: Share-based compensation, net 8,326 8,709 Cyberattack restoration costs, net 1,092 — Tax recovery, net (3,985) — Divestiture costs — 30 Impact of discontinued operations, net of tax (1,717) (100) Average equity 857,771 773,179 Average funded debt (b) 372,235 209,114 Invested capital (denominator for Adjusted ROIC) (non-GAAP) $ 1,230,006 $ 982,293 (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 is calculated as the daily average amounts outstanding on our short-term and long-term interest-bearing debt. ScanSource, Inc. Earnings Infographic Q4 FY2023 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 10 August 22, 2023

Net Debt and Adjusted EBITDA Metrics ($ in thousands) Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 Q4 FY22 Consolidated debt (Q/E) $ 329,901 $ 311,052 $ 382,796 $ 326,435 $ 271,170 Less: Consolidated cash and cash equivalents (Q/E) (36,178) (37,374) (66,445) (40,472) (37,987) Net debt (Q/E) $ 293,723 $ 273,678 $ 316,351 $ 285,963 $ 233,183 Reconciliation of Net Income to Adjusted EBITDA Net income from continuing operations - GAAP $ 17,095 $ 21,221 $ 25,734 $ 24,042 $ 19,947 Plus: Interest expense 5,564 5,715 5,060 3,448 1,886 Income taxes 6,367 8,692 10,458 8,241 6,267 Depreciation and amortization 7,255 7,074 7,057 7,228 7,700 EBITDA 36,281 42,702 48,309 42,959 35,800 Adjustments: Tax recovery (a) (128) — (2,858) — — Cyberattack restoration costs 1,460 — — — — Share-based compensation 2,586 2,954 3,364 2,316 2,872 Adjusted EBITDA (non-GAAP) $ 40,199 $ 45,656 $ 48,815 $ 45,275 $ 38,672 Adjusted EBITDA, TTM (b) $ 179,945 $ 178,418 $ 176,877 $ 170,604 $ 166,723 Net Debt / Adjusted EBITDA, TTM (b) 1.6 x 1.5 x 1.8 x 1.7 x 1.4 x (a) Recovery of prior period withholding taxes in Brazil (b) Adjusted EBITDA for the trailing 12-month period ScanSource, Inc. Earnings Infographic Q4 FY2023 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 11 August 22, 2023

Working Capital, 5-Quarter Summary ($ in thousands) Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 Q4 FY22 Accounts Receivable (Q/E) $ 753,236 $ 684,458 $ 779,562 $ 744,946 $ 729,442 Days sales outstanding in receivables 72 70 69 71 68 Inventory (Q/E) $ 757,574 $ 752,763 $ 761,936 $ 675,798 $ 614,814 Inventory turns 4.4 4.1 5.0 5.1 5.6 Accounts payable (Q/E) $ 691,119 $ 656,688 $ 748,662 $ 710,919 $ 714,177 Paid for inventory days* 17.5 22.7 10.9 7.2 (0.8) Working Capital (Q/E) (AR+INV-AP) $ 819,691 $ 780,533 $ 792,836 $ 709,825 $ 630,079 Cash conversion cycle 90 93 80 78 67 *Paid for inventory days represent Q/E inventory days less Q/E accounts payable days ScanSource, Inc. Earnings Infographic Q4 FY2023 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 12 August 22, 2023

Operating Income, Net Income & EPS - QTR ($ in thousands) Quarter ended June 30, 2023 Reported GAAP measure Intangible amortization expense Tax recovery, net Cyberattack restoration costs Non-GAAP measure SG&A expenses $74,358 — $128 $(1,460) $73,026 Operating income 27,289 4,185 (128) 1,460 32,806 Net income 17,095 3,126 (2,100) 1,092 19,213 Diluted EPS $0.68 $0.12 $(0.08) $0.04 $0.76 ($ in thousands) Quarter ended March 31, 2023 Reported GAAP measure Intangible amortization expense Tax recovery, net Cyberattack restoration costs Non-GAAP measure SG&A expenses $70,669 — — — $70,669 Operating income 34,279 4,170 — — 38,449 Net income 21,221 3,109 — — 24,330 Diluted EPS $0.83 $0.12 — — $0.96 ScanSource, Inc. Earnings Infographic Q4 FY2023 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 13 August 22, 2023

Operating Income, Net Income & EPS - QTR, continued ($ in thousands) Quarter ended December 31, 2022 Reported GAAP measure Intangible amortization expense Tax recovery, net Cyberattack restoration costs Non-GAAP measure SG&A expenses $69,074 — $2,858 — $71,932 Operating income 39,432 4,150 (2,858) — 40,724 Net income 25,734 3,093 (1,886) — 26,941 Diluted EPS $1.01 $0.12 $(0.07) — $1.06 ($ in thousands) Quarter ended September 30, 2022 Reported GAAP measure Intangible amortization expense Tax recovery, net Cyberattack restoration 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 Tax recovery, net Cyberattack restoration costs 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 Q4 FY2023 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 14 August 22, 2023

Operating Income, Net Income & EPS - FY ($ in thousands) Year ended June 30, 2023 Reported GAAP measure Intangible amortization expense Acquisition, divestiture and restructuring costs Tax recovery, net Cyberattack restoration costs Non-GAAP measure SG&A expenses $285,695 — — $2,986 $(1,460) $287,221 Operating income 135,886 16,746 — (2,986) 1,460 151,106 Net income 88,092 12,489 — (3,985) 1,092 97,688 Diluted EPS $3.47 $0.49 — $(0.16) $0.04 $3.85 Year ended June 30, 2022 Reported GAAP measure Intangible amortization expense Acquisition, divestiture and restructuring costs(a) Tax recovery, net Cyberattack restoration costs Non-GAAP measure SG&A expenses $275,442 — $(30) — — $275,412 Operating (loss) income 122,167 17,853 30 — — 140,050 Net (loss) income 88,698 13,412 30 — — 102,140 Diluted EPS $3.44 $0.52 — — — $3.97 (a) Divestiture costs totaled less than $0.1 million for the fiscal year ended June 30, 2022 and are generally nondeductible for tax purposes. ScanSource, Inc. Earnings Infographic Q4 FY2023 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 15 August 22, 2023

FY24 Annual Financial Outlook Reconciliation FY 24 Outlook GAAP operating income At least $134 million Intangible amortization $17 million Depreciation expense $12 million Share-based compensation expense $12 million Interest income and income (expense), net $5 million Adjusted EBITDA (non-GAAP) At least $180 million GAAP operating cash flow At least $160 million Less: Capital expenditures $10 million Free cash flow At least $150 million ScanSource, Inc. Earnings Infographic Q4 FY2023 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 16 August 22, 2023

EX-99.3

Exhibit 99.3

ScanSource Announces Appointment of New Board Member

Vernon Nagel brings extensive executive leadership experience and financial expertise to the ScanSource Board of Directors

GREENVILLE, SC — ScanSource, Inc. (NASDAQ: SCSC), a leading hybrid distributor connecting devices to the cloud, today announced the appointment of Vernon J. Nagel to its Board of Directors, effective August 16, 2023. Mr. Nagel’s appointment expands the Board to nine members.

Mr. Nagel brings extensive executive leadership, financial and accounting expertise to the ScanSource Board of Directors. Mr. Nagel served as Executive Chairman of Acuity Brands, Inc., a publicly traded industrial technology company from February 2020 until his retirement in December 2020. Mr. Nagel previously served as Chairman and Chief Executive Officer of Acuity Brands from September 2004 through January 2020 and was President from August 2005 through August 2019. He joined Acuity Brands in December 2001 as Executive Vice President and Chief Financial Officer. Mr. Nagel currently serves as a member of the Board of Directors of The AZEK Company, a provider of sustainable outdoor living products, and Southwire, a provider of wire, cable and other electrical solutions.

“We are pleased to have Vern join our Board, as he brings a wealth of knowledge working with a multi-national company whose customers span several industries. Vern was a highly successful CEO in the lighting sector for a significant period, which is a testament to his commitment to his profession. His proven leadership and expertise will be a tremendous asset to ScanSource,” said Mike Baur, Chairman and CEO, ScanSource. “We look forward to the valuable knowledge and perspective he will offer as the newest member of the ScanSource Board of Directors.”

“It is a privilege to join the ScanSource Board of Directors, and I look forward to contributing to the success and strength of the Company. ScanSource’s commitment to its partners and stakeholders is evident, and I am happy to be a part of it,” said Vern Nagel.

Mr. Nagel received a Bachelor of Business Administration from the University of Michigan.

About ScanSource, Inc.

ScanSource, Inc. (NASDAQ: SCSC) is a leading hybrid distributor connecting devices to the cloud and accelerating growth for customers across hardware, SaaS, connectivity and cloud. ScanSource enables customers to deliver solutions for their end users to address changing 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 2023 List of World’s Most Admired Companies. ScanSource ranks #817 on the Fortune 1000. For more information, visit www.scansource.com.

XML

Cover Page	Aug. 22, 2023
Cover [Abstract]
Document Type	8-K
Document Period End Date	Aug. 16, 2023
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