Scansource, Inc. · NASDAQ:SCSC

Scansource — Investor Presentation (August 2026)

34 slides from Scansource's investor presentation, August 2026

  1. Slide 1: ScanSource, Inc. Investor Presentation

    ScanSource, Inc. Investor Presentation August 2026

  2. Slide 2: Safe Harbor and Non-GAAP

    Safe Harbor and Non-GAAP Safe Harbor Statement Non-GAAP Financial Information This presentation contains “forward-looking” statements, including our FY27 outlook, mid- In addition to disclosing results that are determined in accordance with United States term goals, market growth rates, MicroAge pur

  3. Slide 3: Differentiated Leader. Pivoting to Stronger Growth.

    Differentiated Leader. Pivoting to Stronger Growth. 1 Executing as the new ScanSource 2 Our strategic edge Stronger 3 Understanding our growth engines Growth 4 Clear capital allocation principles 5 The growth path going forward 3

  4. Slide 4: Differentiated Technology Distribution Leader

    AT A G L A N C E Differentiated Technology Distribution Leader $3.2B+ ~25,000 ~500 ~2,100 93% 14.7% Net Sales Channel Sales Technology Total Net Sales by Adj. ROIC* Partners Suppliers Employees Geography, (VARs, Advisors, United States MSPs, ISOs, ISVs) & Canada Data for FY26 or as of 6/30/26 * Non-

  5. Slide 5: Differentiated Leader in Converging Technology Ecosystem

    Differentiated Leader in Converging Technology Ecosystem Point of Sale (POS) Payment Terminals Security Communications Extend reach with specialized expertise Networking Connectivity Offer customers flexibility and choice Mobility Cloud Services and Barcode 5

  6. Slide 6: A More Focused Business, Built to Drive Growth and Cash Flow

    PROGRESS LAST THREE YEARS A More Focused Business, Built to Drive Growth and Cash Flow Disciplined Growth & Margin Expansion Business Model Shift Capital Use Opportunities  Recurring revenue: Built to  Recent acquisitions: added  Wrap additional value around 34% of total gross profit new capabili

  7. Slide 7: Repositioning ScanSource – Moving to a Higher Margin, Higher Recurring Revenue Model

    Repositioning ScanSource – Moving to a Higher Margin, Higher Recurring Revenue Model Recurring Revenue Now Powers 34% of Gross Profit 3-Year Goal FY26 Build RR GP to FY24 50% FY18 34% RR GP Gross Profit Mix 27% RR GP 13% RR GP GP Margin: 13.6% GP Margin: 13.4% GP Margin: 12.2% GP Margin: 11.7% RR GP

  8. Slide 8: Building a Cash Flow Culture – A Strategic Discipline

    Building a Cash Flow Culture – A Strategic Discipline FCF Now a Strategic Discipline FCF Conversion Embedded in our DNA – in incentive compensation (% of Non-GAAP Net Income) 1. Cash focus 2. Working capital 80+%* – strategic pivot discipline Goal: Forecastable 5. M&A 3. Embedded and discipline in c

  9. Slide 9: ScanSource Distribution Brings Key Advantages: Expands Margin, Reach and Recurring Revenue

    ScanSource Distribution Brings Key Advantages: Expands Margin, Reach and Recurring Revenue Broad Capabilities What ScanSource Across Sales Models Distribution Delivers Hardware & Channel Credit Higher Margin Mix 98% RR GP in agency model; Subscription & SaaS 33% total GP from recurring revenue Solut

  10. Slide 10: Differentiated Leader. Pivoting to Stronger Growth.

    Differentiated Leader. Pivoting to Stronger Growth. 1 Executing as the new ScanSource 2 Our strategic edge Stronger 3 Understanding our growth engines growth 4 Clear capital allocation principles 5 The growth path going forward 10

  11. Slide 11: Technology Megatrends Fueling ScanSource’s Growth

    S T R AT E G I C E D G E # 1 Technology Megatrends Fueling ScanSource’s Growth Cloud & Connectivity Cybersecurity Digitization & Channel Enablement Subscription Shift & Infrastructure & AI Automation & Supplier Reach SaaS and cloud-first 5G, SD-WAN, Cloud security Businesses are Suppliers need adopt

  12. Slide 12: A Differentiated Leader Delivering Complex Solutions and Advanced Expertise

    S T R AT E G I C E D G E # 2 ScanSource – A Differentiated Leader Delivering Complex Solutions and Advanced Expertise to Accelerate Partner Growth Where We Play – Delivering Differentiated Solutions Highly Knowledgeable Expertise Other Players Low / Order Taker Broad/ Specialization/ Commodity Produ

  13. Slide 13: Powerful Differentiators Deliver Supplier Success

    S T R AT E G I C E D G E # 3 Powerful Differentiators Deliver Supplier Success Flexible Specialized Unmatched Accelerated Scalable Go-to-Market Market Expertise Channel Access Demand Operational Generation Execution Supports resale, Deep focus in Connects suppliers Drives faster Delivers agency, and

  14. Slide 14: Differentiated Leader. Pivoting to Stronger Growth.

    Differentiated Leader. Pivoting to Stronger Growth. 1 Executing as the new ScanSource 2 Our strategic edge Stronger 3 Understanding our growth engines growth 4 Clear capital allocation principles 5 The growth path going forward 14

  15. Slide 15: Two Complementary Segments with Distinct Models

    Two Complementary Segments with Distinct Models Category Specialty Technology Solutions Intelisys & Advisory (~77% of Gross Profit) (~23% of Gross Profit) Business • Hardware-centric resale model • Recurring revenue, high-margin agency model Model/GTM • FY26 margins: 10.8% GP, 3.6% Adj. EBITDA* • FY

  16. Slide 16: Recurring Revenue Growth Opportunities in Both Segments

    Recurring Revenue Growth Opportunities in Both Segments Recurring Revenue GP as % Types of Recurring Revenue Gross Profit of Gross Profits FY26 ($M) Specialty Intelisys & Total Technology Total Advisory Y/Y% Solutions 34% Agency commissions 27% Managed connectivity Subscriptions/SaaS 13% Hardware re

  17. Slide 17: Specialty Technology Solutions: Key Technologies and Growth Drivers

    Specialty Technology Solutions: Key Technologies and Growth Drivers Mobility and POS, Payment Networking Communications Physical Security Barcode Terminals % of Sales* Market Mid Single-Digit Mid Single-Digit Mid Single-Digit Mid Single-Digit Upper Single-Digit Growth** ▲▲ ▲▲ ▲▲ ▲▲ ▲▲▲ - Automation

  18. Slide 18: Intelisys & Advisory Segment: Key Technologies and Growth Drivers

    Intelisys & Advisory Segment: Key Technologies and Growth Drivers Connectivity & SDN CX (UCaaS/CCaaS) Cloud/Data Center Security Wireless & IoT % of Net Billings* Market Low Single-Digit ~10%+ ~15%+ ~10%+ ~15%+ Growth** ▲ ▲▲▲ ▲▲▲ ▲▲▲ ▲▲▲ - Cloud migration - Collaborative tools - Digital - Advanced -

  19. Slide 19: Differentiated Leader. Pivoting to Stronger Growth.

    Differentiated Leader. Pivoting to Stronger Growth. 1 Executing as the new ScanSource 2 Our strategic edge Stronger 3 Understanding our growth engines growth 4 Clear capital allocation principles 5 The growth path going forward 19

  20. Slide 20: Strong Balance Sheet with Liquidity to Fund Growth

    Strong Balance Sheet with Liquidity to Fund Growth Available Target net FY27 Total committed leverage Free Cash Flow* capacity liquidity ratio* outlook $400M 1x – 2x $85M ~$310M revolver Adj. EBITDA at least estimated At midpoint 1.5x: ~$225M borrowing capacity Data as of 6/30/26; * Non-GAAP measure

  21. Slide 21: Our Capital Allocation Framework Going Forward

    Our Capital Allocation Framework Going Forward Invest in the Return Cash to Business Shareholders  Fund high ROI projects  Share repurchases for profitable growth  Disciplined strategic acquisitions 21

  22. Slide 22: Disciplined M&A Criteria

    Disciplined M&A Criteria  High margin, recurring revenue businesses Focus: that are working capital light  Expands TAM in growth markets Company Profile /  Adds capabilities Advantages:  Adjacencies to strengthen offerings  Aligns with ScanSource culture and values  Strong mid-term ROIC Operat

  23. Slide 23: ScanSource to Acquire MicroAge, a Leading IT Solutions Integrator

    ScanSource to Acquire MicroAge, a Leading IT Solutions Integrator  Adds higher-margin capabilities and expands ScanSource’s reach in strategic growth technologies, including cloud, cybersecurity, data center, and AI  Accretive to gross profit margin, adj. EBITDA margin, and non-GAAP EPS in first y

  24. Slide 24: Recent Acquisitions Support Our Strategy

    Recent Acquisitions Support Our Strategy Acquisition Expands Adds Capabilities / FCF / Aligns With (date acquired) TAM / Growth Expands Adjacencies Operating Metric Culture Technology Advisor (8/24) Managed Connectivity (8/24) Data Connectivity (11/25) 24

  25. Slide 25: Proven M&A Track Record – Case Study Intelisys

    Proven M&A Track Record – Case Study Intelisys Acquired in 2016 Aug ‘16  New route to market through advisors FY26  Started cloud distribution journey Acquired Key Segment Transform, Invest and Grow $800M net billings* ~$2.88B net billings 12X -13X EBITDA Results 3.6X ~14% CAGR Net billings growth

  26. Slide 26: Differentiated Leader. Pivoting to Stronger Growth.

    Differentiated Leader. Pivoting to Stronger Growth. 1 Executing as the new ScanSource 2 Our strategic edge Stronger 3 Understanding our growth engines growth 4 Clear capital allocation principles 5 The growth path going forward 26

  27. Slide 27: Growth Drivers

    Growth Drivers 1 2 3 4 5 Recurring Tailwinds Faster Strategic M&A Tapping Revenue Across Both Partner to Boost Broader Market Expansion Segments Activation Margins Reach Subscription and Intelisys: Multiple GTM paths Acquiring capital- 25,000+ channel agency revenue Boosted by Cloud, boost partner l

  28. Slide 28: Strategy to Accelerate Recurring Revenue Growth

    N E W C O N V E R G E D C O M M U N I C AT I O N S B U S I N E S S U N I T Strategy to Accelerate Recurring Revenue Growth Converged Business Unit Share of Wallet Growth Engine  Brings together ScanSource Specialty  Supports Communication VARs in selling more Communications team and Intelisys CX c

  29. Slide 29: 3-Year Strategic Goals

    3-Year Strategic Goals Free Cash Flow Recurring Gross Profit Adj. EBITDA Conversion as % Revenue GP as % Adj. ROIC* Growth CAGR Margin* Non-GAAP Net of Gross Profit Income* Build to Consistent 5%-7% 50% ~6% 80%+ Mid-Teens annual basis * Non-GAAP measure; see “Non-GAAP Financial Information” for info

  30. Slide 30: In Summary: Differentiated Leader. Pivoting to Stronger Growth.

    IN SUMMARY Differentiated Leader. Pivoting to Stronger Growth. 1 Executing as the new ScanSource 2 Our strategic edge Stronger 3 Understanding our growth engines growth 4 Clear capital allocation principles 5 The growth path going forward 30

  31. Slide 31: Appendix

    Appendix 31

  32. Slide 32: Non-GAAP Financial Information – FY26 ROIC

    Non-GAAP Financial Information – FY26 ROIC ($ in thousands) FY26 Reconciliation of Net Income to Adjusted EBITDA Net income from continuing operations - GAAP $ 78,873 Plus: Interest expense 6,593 Plus: Income taxes 24,870 Plus: Depreciation and amortization 23,633 EBITDA 133,969 Plus: Change in fair

  33. Slide 33: Non-GAAP Financial Information – Net Leverage Ratio

    Non-GAAP Financial Information – Net Leverage Ratio ($ in thousands) Q4 FY26 Q3 FY26 Q2 FY26 Q1 FY26 Q4 FY25 Consolidated debt (Q/E) $101,413 $102,038 $102,663 $133,913 $136,149 Less: Consolidated cash and cash equivalents (Q/E) (88,374) (120,295) (83,466) (124,924) (126,157) Net debt (Q/E) (non-GAA

  34. Slide 34: Non-GAAP Financial Information – FY26 Adj. EBITDA Margin

    Non-GAAP Financial Information – FY26 Adj. EBITDA Margin Specialty Technology Intelisys & ($ in thousands) Solutions Advisory Net sales $ 3,124,932 $ 101,130 Reconciliation of Operating Income to Adjusted EBITDA FY26 GAAP operating income $ 74,113 $ 28,584 Plus: Depreciation expense 6,712 200 Intang

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