Filing Flows › Scansource (SCSC) › Q1 FY26
Scansource (SCSC) Q1 FY26 earnings results (first quarter fiscal 2026)
10-Q filed Nov 6, 2025
Scansource (SCSC) reported revenue of $740M for the first quarter fiscal 2026 (Q1 FY26), -5% from a year earlier and -9% from the quarter before. Operating margin was 3.5%, net earnings $19.9M (2.7% of revenue).
Scansource, Q1 FY26: revenue $740M (-5% year over year), operating margin 3.5%, net earnings $19.9M, operating cash flow $23.2M. The chart follows the revenue to costs, profit and cash.
| Q1 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $740M | -9% | -5% |
| Gross profit | $107M | +2% | +6% |
| Operating profit | $25.9M | -3% | +47% |
| Net earnings | $19.9M | -1% | +17% |
| Operating cash flow | $23.2M | +204% | -48% |
| Free cash flow | $20.8M | +306% | -51% |
What changed
Revenue was $739.6M in Q1 FY26, down 5% year over year and down 9% from the previous quarter. Products and services was the largest line at 95% of revenue. Products and services lost $38.6M year over year (down 5%), 108% of the total change.
Gross margin was 14.5%, up 1.4 points from a year earlier. Operating profit was $25.9M, a 3.5% margin (up 1.2 points year over year). Operating expenses fell 3% while revenue fell 5%. Net earnings were $19.9M, up 17% year over year. The effective tax rate was 26.4%.
Operating cash flow was $23.2M (down 48% year over year), 117% of net earnings. Non-cash charges added back $6.2M of depreciation and amortization and $2.9M of share-based compensation. Working capital and other items used $5.7M. Capital expenditures of $2.4M left free cash flow of $20.8M.
Questions
What was Scansource's revenue in the first quarter fiscal 2026?
Scansource (SCSC) reported revenue of $740M for the first quarter fiscal 2026 (Q1 FY26), -5% from a year earlier and -9% from the quarter before.
Was Scansource profitable in the first quarter fiscal 2026?
Operating profit was $25.9M (3.5% of revenue) and net earnings $19.9M.
Source: Scansource 10-Q on SEC EDGAR.