SCANSOURCE, INC.SCSC
SCANSOURCE, INC. Revenue Disclosure
Revenue Recognition
The Company provides technology solutions and services from the world's leading suppliers of mobility, barcode, POS, payments, networking, physical security, unified communications, collaboration, telecom and cloud services. This includes hardware, related accessories and device configuration as well as software licenses, professional services and hardware support programs.
Significant Judgments:
Principal versus Agent Considerations
The Company is the principal for sales of hardware, and certain software services. The Company considers itself the principal in those transactions where it has control of the product or service before it is transferred to the customer. The Company recognizes the principal-associated revenue and cost of goods sold on a gross basis.
The Company is the agent for third-party service contracts, including product warranties and supplier-hosted software. These service contracts are sold separately from the products, and the Company often serves as the agent for the contract on behalf of the original equipment manufacturer. The Company's responsibility is to arrange for the provision of the specified service by the original equipment manufacturer, and the Company does not control the specified service before it is transferred to the customer. Because the Company acts as an agent, revenue is recognized net of cost at the time of sale. The Intelisys business operates under an agency model.
Variable Considerations
For certain transactions, products are sold with a right of return, and the Company may also provide other rebates or incentives, which are accounted for as variable consideration. The Company estimates the amount of variable consideration for rebates and incentives by using the expected value to be given to the customer and reduces the revenue by those estimated amounts. These estimates are reviewed and updated as necessary at the end of each reporting period. The Company estimates returns allowance based on historical experience and reduces revenue accordingly.
Contract Balances
The Company records contract assets and liabilities for payments received from customers in advance of services performed. These assets and liabilities are the result of the sales of the Company's self-branded warranty programs and other transactions where control has not yet passed to the customer. These amounts are immaterial to the consolidated financial statements for the periods presented.
Practical Expedients & Accounting Policy Elections
•Incremental costs of obtaining a contract - These costs are included in selling, general and administrative expenses as the amortization period is generally one year or less. The Company expenses costs associated with obtaining and fulfilling contracts as incurred.
•Shipping costs - The Company accounts for certain shipping and handling activities as fulfillment costs and expenses them as incurred.
•Significant financing components - The Company has elected not to adjust the promised amount of consideration for the effects of a significant financing component as the Company expects, at contract inception, that the period between when the entity transfers a promised good or service to a customer and when the customer pays for that good or service will generally be one year or less.
•Sales tax and other related taxes - Sales and other tax amounts collected from customers for remittance to governmental authorities are excluded from revenue.
Disaggregation of Revenue
The following tables represent the Company's disaggregation of revenue:
| Fiscal Year Ended June 30, 2025 | ||||||||||||||||||||
| Specialty Technology Solutions | Intelisys & Advisory | Total | ||||||||||||||||||
| Revenue by product/service type: | (in thousands) | |||||||||||||||||||
| Products and non-recurring services | $ | 2,892,043 | $ | 3,067 | $ | 2,895,110 | ||||||||||||||
Recurring revenue(a) | 50,674 | 95,026 | 145,700 | |||||||||||||||||
| $ | 2,942,717 | $ | 98,093 | $ | 3,040,810 | |||||||||||||||
(a) Recurring revenue represents revenue primarily from agency commissions, managed connectivity, SaaS, subscriptions, and hardware rentals. | ||||||||||||||||||||
| Fiscal year ended June 30, 2024 | ||||||||||||||||||||
| Specialty Technology Solutions | Intelisys & Advisory | Total | ||||||||||||||||||
| Revenue by product/service type: | (in thousands) | |||||||||||||||||||
| Products and non-recurring services | $ | 3,144,768 | $ | 4,466 | $ | 3,149,234 | ||||||||||||||
Recurring revenue(a) | 22,781 | 87,794 | 110,575 | |||||||||||||||||
| $ | 3,167,549 | $ | 92,260 | $ | 3,259,809 | |||||||||||||||
(a) Recurring revenue represents revenue primarily from agency commissions, SaaS, subscriptions, and hardware rentals. | ||||||||||||||||||||
| Fiscal year ended June 30, 2023 | ||||||||||||||||||||
| Specialty Technology Solutions | Intelisys & Advisory | Total | ||||||||||||||||||
| Revenue by product/service type: | (in thousands) | |||||||||||||||||||
| Products and non-recurring services | $ | 3,635,829 | $ | 4,793 | $ | 3,640,622 | ||||||||||||||
Recurring revenue(a) | 65,838 | 81,261 | 147,099 | |||||||||||||||||
| $ | 3,701,667 | $ | 86,054 | $ | 3,787,721 | |||||||||||||||
(a) Recurring revenue represents revenue primarily from agency commissions, SaaS, subscriptions, and hardware rentals. | ||||||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Aug 21, 2025 | Showing above |
| 2024 | Aug 27, 2024 | |
| 2023 | Aug 22, 2023 | |
| 2022 | Aug 23, 2022 | |
| 2021 | Aug 24, 2021 | |
| 2020 | Aug 31, 2020 | |
| 2019 | Aug 22, 2019 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.