11/6/2025

speaker
Operator
Conference Operator

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. Please go ahead.

speaker
Mary Gentry
Senior Vice President, Finance, and Treasurer

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 then take your questions. We posted an earnings infographic that accompanies our comments and webcast in the investor relations section of our website. As you know, certain statements in our press release infographic and 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, and in our subsequent reports on Form 10-Q. 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 8K filed earlier today. I'll now turn the call over to Mike.

speaker
Mike Bauer
Chair and Chief Executive Officer

Thanks, Mary. And thanks, everyone, for joining us today. Technology distribution is being transformed with the convergence of hardware, software, and services. As IT, connectivity, and cloud computing markets continue to converge, we believe that end users will prefer channel partners who can provide integrated, converged solutions. With more choices than ever, end user purchasing decisions are getting more complex. And that's where solution providers and technology architects add real value. They can help end users make technology decisions that will achieve their expected business outcomes. Because most business outcomes require technology solutions from multiple suppliers, the indirect channels in the best position to deliver recurring, complex, and high-value solutions. How to win in converging technology markets was the theme at our recent partner events, Partner First in September and Channel Connect earlier this week. Both events highlighted our strategy, helping our partners change and grow as technology markets continue to converge. We are preparing to assist our channel partners in this transformation. We expect to play an expanded role in supporting our partners' transition from traditional VAR to solution provider and from trusted advisor to technology architect. We'll discuss more about how these business models are evolving as the year progresses. This quarter, in our IntelliSys and advisory segment, we are investing to accelerate new order growth. An example of our investment is the growth of our solutions engineering team, who have expertise in advanced technologies, including cloud computing, wireless, and IoT. Another way to drive new order growth is to help our partners by providing new and better tools for growth. For example, our product development team launched a new tool called Tech Checks, which combines AI-powered engineering support with conversational, sales-friendly discovery questions. During the quarter, in our integrated solutions group, our LaunchPoint team has delivered new end-to-end industry solutions called Smart Series, starting with Smart Warehouse and Smart Retail. These solutions consist of products and services from ScanSource's suppliers. One of the new LaunchPoint suppliers we recently signed is a specialist in the next generation of private 5G that adds a managed services offering to our smart connectivity series. Also in ISG, in October, we completed the acquisition of DataZoom, a leading provider of B2B mobile data connectivity solutions. This transaction builds upon our August 2024 acquisition of Advantix and expands our ability to scale our relationships across all three major US carriers, AT&T, Verizon, and T-Mobile. ScanSource's deep relationships with the key suppliers of mobile devices, combined with AdvanTex's and DataZoom's capabilities to integrate carrier data connectivity into these devices, is a great example of a converged solution. Looking ahead, we believe the future of technology distribution lies in helping our channel partners deliver innovative converged solutions. This vision drives our strategic plans. I'll now turn the call over to Steve to take you through our financial results and outlook for fiscal year 2026. Thanks, Mike.

Disclaimer

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