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ScanSource, Inc.
8/21/2025
Welcome to the ScanSource quarterly earnings conference call. All lines have been placed in a listen-only mode until the question and answer session. Today's call is being recorded. If anyone has any objections, you may disconnect at this time. I would now like to turn the call over to Mary Gentry, Senior Vice President, Finance and Treasurer. Ma'am, you may begin.
Good morning, and thank you for joining us. Our call will include prepared remarks from Mike Bauer, our chair and CEO, and Steve Jones, our chief financial officer. We will review our operating results for the quarter and the year, and then take your questions. We posted an earnings infographic that accompanies our comments and webcasts in the investor relations section of our website. As you know, certain statements in our press release infographic on this call are forward-looking statements and subject to risks and uncertainties that could cause actual results to differ materially from expectations. These risks and uncertainties include the factors identified in our earnings release and in our Form 10-K for the year ended June 30, 2025. Forward-looking statements represent our views only as of today, and ScanSource disclaims any duty to update these statements except as required by law. During our call, we will discuss both GAAP and non-GAAP results and have provided reconciliations on our website and in our Form 8-K. I'll now turn the call over to Mike.
Thanks, Mary, and thanks, everyone, for joining us today. We are excited about the growth opportunities ahead for our channel partners and the expanding role of technology distribution. The convergence of IT, connectivity, and cloud computing is propelling a shift toward converged solutions that are redefining success in technology distribution. We are the leading technology distributor uniquely positioned to build cutting edge skills, capabilities, and expertise to excel in a connected, cloud-driven world. We believe end users face increasing complexity when making technology investment decisions. Because of this complexity, end users are looking to the indirect channel for their technology solutions, given the need for integration and the number of solutions. especially as advanced technologies like AI become part of the solution. Our multiple sales channels are a key competitive advantage for ScanSource with our suppliers as they seek new routes to market. Our channel partners have different skills and capabilities and for certain opportunities they will take advantage of additional services that ScanSource can deliver to end users on behalf of our partners. We are building capabilities that end users require and our partners demand in our converging technology ecosystem. This includes an innovative supplier portfolio, financial enablement, expert pre and post sales engineering support, powerful tools, marketing support, and an exceptional customer experience. Last quarter, we announced the creation of LaunchPoint, a new business development team that will identify and assist emerging innovative technology growth companies as they are getting ready for channel success. The LaunchPoint team has an active pipeline of innovative suppliers and has recently signed contracts with companies offering products to enhance our smart warehouse initiative, which includes private cellular networks, robotics, drones, and additional IoT solutions. We have channel partners in both segments, that have end user demand for converging solutions that include hardware, software, and services. To illustrate with an example, we have a channel sales partner who developed a converged solution for a leading auto parts retailer that bundled wireless connectivity plans with 30,000 mobile computing devices. Our ability to support the converged solution was a differentiator, allowing the partner to win the deal and providing the end user with an improved business outcome. We see hardware plus software plus services convergence as the future of technology distribution. This is the vision for our strategic plan and the new three-year strategic goals that Steve will introduce in his remarks. Our goals reflect our confidence in our growth strategy to deliver complex, converging solutions for our partner ecosystem that will increase our addressable market. I'll now turn the call over to Steve to take you through our financial results and outlook for fiscal year 2026. Thanks, Mike.
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