SCANSOURCE, INC.SCSC
SCANSOURCE, INC. Segments Disclosure
Segment Information
The Company is a leading distributor of technology solutions and services to customers in specialty technology markets. The Company's Chief Executive Officer is our Chief Operating Decision Maker ("CODM") who evaluates how we allocate resources, assess performance and make strategic and operational decisions. The CODM reviews key financial measures for each reportable segment based on various financial results including net sales, gross profit and operating income. In connection with that assessment, our CODM may exclude matters, such as charges for impairments, restructuring costs, acquisition and divestiture costs, gains and losses from business acquisitions or dispositions and litigation or tax settlements or recoveries. The CODM also reviews certain other measures including total assets and property and equipment by segment and geography. Based on such evaluation, the Company has two reportable segments based on sales model.
Specialty Technology Solutions Segment
The Specialty Technology Solutions segment operates in the United States, Canada and Brazil and includes specialty technology solutions distributed through a wholesale/resale sales model. This segment includes hardware, SAAS and subscription services. The specialty technology solutions include the following:
•Mobility and barcode - mobile computing, barcode scanners and imagers, radio frequency identification devices, barcode printing and related services;
•POS - Point of Sale systems, integrated POS software platforms;
•Payment terminals - Self-service kiosks including self-checkout, payment terminals and mobile payment devices;
•Physical security - video surveillance and analytics, video management software and access control;
• Networking - switching, routing and wireless products and software;
• Communications - voice, video, communication platform integration and contact center solutions; and
• Connectivity - managed connectivity and wireless enablement solutions.
Intelisys & Advisory Segment
The Intelisys & Advisory segment operates in the United States and consists of sales and services to both channel sales partners (Intelisys) and end users (Advisory). As a technology services distributor, or TSD, Intelisys distributes connectivity, cloud and next-generation technologies through an agency sales model. Channel sales partners also have access to SaaS and subscription-based services through the company’s proprietary tools, platforms and flexible routes to market. In addition to traditional telecom services, key technology areas include:
•Connectivity & SDN (Software-Defined Networking)
•CX (Unified Communications as a Service and Contact Center as a Service)
•Cloud/Data Center
•Security
•Managed AI
•Wireless & IoT
By offering flexible routes to market and a robust solutions portfolio, this segment helps advisors service a wide range of end users including businesses of all sizes from VSB (“Very Small Business”) to Enterprise size businesses.
Selected financial information about the Company's segments for the fiscal years ended June 30, 2025, 2024, and 2023 are presented below:
| Specialty Technology Solutions | Intelisys & Advisory | Corporate(a) | Total | |||||||||||||||||||||||
Fiscal year ended June 30, 2025: | ||||||||||||||||||||||||||
| Net Sales | $ | 2,942,717 | $ | 98,093 | $ | — | $ | 3,040,810 | ||||||||||||||||||
| Cost of sales | 2,631,315 | 849 | — | 2,632,164 | ||||||||||||||||||||||
| Gross profit | 311,402 | 97,244 | — | 408,646 | ||||||||||||||||||||||
Other operating expenses(b) | 245,353 | 70,030 | 8,063 | 323,446 | ||||||||||||||||||||||
| Operating income (loss) | $ | 66,049 | $ | 27,214 | $ | (8,063) | $ | 85,200 | ||||||||||||||||||
| Other Segment Information | ||||||||||||||||||||||||||
Depreciation and amortization(c) | $ | 19,627 | $ | 8,878 | $ | 1,690 | $ | 30,195 | ||||||||||||||||||
Change in fair value of contingent consideration(d) | $ | (840) | $ | 2,740 | $ | — | $ | 1,900 | ||||||||||||||||||
| Capital expenditures | $ | (7,776) | $ | (510) | $ | — | $ | (8,286) | ||||||||||||||||||
Fiscal year ended June 30, 2024: | ||||||||||||||||||||||||||
| Net Sales | $ | 3,167,549 | $ | 92,260 | $ | — | $ | 3,259,809 | ||||||||||||||||||
| Cost of sales | 2,860,292 | 465 | — | 2,860,757 | ||||||||||||||||||||||
| Gross profit | 307,257 | 91,795 | — | 399,052 | ||||||||||||||||||||||
Other operating expenses(b) | 240,579 | 61,200 | 6,949 | 308,728 | ||||||||||||||||||||||
| Operating income (loss) | $ | 66,678 | $ | 30,595 | $ | (6,949) | $ | 90,324 | ||||||||||||||||||
| Other Segment Information | ||||||||||||||||||||||||||
Depreciation and amortization(c) | $ | 17,133 | $ | 7,939 | $ | 2,937 | $ | 28,009 | ||||||||||||||||||
Change in fair value of contingent consideration(d) | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
| Capital expenditures | $ | (8,414) | $ | (141) | $ | — | $ | (8,555) | ||||||||||||||||||
Fiscal year ended June 30, 2023: | ||||||||||||||||||||||||||
| Net Sales | $ | 3,701,667 | $ | 86,054 | $ | — | $ | 3,787,721 | ||||||||||||||||||
| Cost of sales | 3,338,088 | 394 | — | 3,338,482 | ||||||||||||||||||||||
| Gross profit | 363,579 | 85,660 | — | 449,239 | ||||||||||||||||||||||
Other operating expenses(b) | 250,750 | 61,143 | 1,460 | 313,353 | ||||||||||||||||||||||
| Operating income (loss) | $ | 112,829 | $ | 24,517 | $ | (1,460) | $ | 135,886 | ||||||||||||||||||
| Other Segment Information | ||||||||||||||||||||||||||
Depreciation and amortization(c) | $ | 17,943 | $ | 7,796 | $ | 2,875 | $ | 28,614 | ||||||||||||||||||
Change in fair value of contingent consideration(d) | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
| Capital expenditures | $ | (9,827) | $ | (152) | $ | — | $ | (9,979) | ||||||||||||||||||
(a) For the year ended June 30, 2025, the amounts in Other operating expenses shown above include restructuring expenses, legal settlement expenses, acquisition expenses, as well as cyberattack restoration costs. For the year ended June 30, 2024, the amounts in Other operating expenses shown above include restructuring expenses, acquisition and divestiture expenses as well as cyberattack restoration costs. For the year ended June 30, 2023, the amounts in Other operating expenses shown above include cyberattack restoration costs | ||||||||||||||||||||||||||
(b) Primarily includes payroll and other employee expenses and other selling and general administrative expenses | ||||||||||||||||||||||||||
(c) Depreciation and amortization expense is primarily included within Other operating expenses | ||||||||||||||||||||||||||
(d) Change in fair value of contingent consideration is included within Other operating expenses | ||||||||||||||||||||||||||
| Fiscal Year Ended June 30, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (in thousands) | |||||||||||||||||
| Sales by Geography Category: | |||||||||||||||||
| United States and Canada | $ | 2,809,447 | $ | 2,928,606 | $ | 3,443,562 | |||||||||||
| Brazil | 240,071 | 338,637 | 355,646 | ||||||||||||||
| Less intercompany sales | (8,708) | (7,434) | (11,487) | ||||||||||||||
| $ | 3,040,810 | $ | 3,259,809 | $ | 3,787,721 | ||||||||||||
| June 30, 2025 | June 30, 2024 | ||||||||||
| (in thousands) | |||||||||||
| Assets: | |||||||||||
| Specialty Technology Solutions | $ | 1,564,119 | $ | 1,499,146 | |||||||
| Intelisys & Advisory | 221,487 | 279,886 | |||||||||
| $ | 1,785,606 | $ | 1,779,032 | ||||||||
| Property and equipment, net by Geography Category: | |||||||||||
| United States and Canada | $ | 15,047 | $ | 21,613 | |||||||
| Brazil | 16,122 | 11,888 | |||||||||
| $ | 31,169 | $ | 33,501 | ||||||||
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 | |
| 2018 | Aug 28, 2018 | |
| 2017 | Aug 29, 2017 | |
| 2016 | Aug 29, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.