ScanSource, Inc.

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.

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'll review our operating results for the quarter and then open the line for 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 and on this call are forward-looking 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, 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'll discuss both GAAP and non-GAAP results. We've provided reconciliations on our webcast, website and in the press release indicated included in our form 8K filed earlier today. I'll now turn the call over to Mike.

Thanks, Mary, and thanks to everyone for joining us today. Our team delivered strong third quarter results with adjusted EBITDA, EPS, free cash flow, and ROIC all increasing versus the prior year. I'm pleased to see improved hardware demand drove 9% growth in net sales with growth across most technologies, but especially networking and security. We believe end users have more choices than ever, and solutions are getting more complex. But what they're really looking for are business outcomes, complete solutions, not point products. Research shows us that end users prefer to buy from trusted partners who can deliver across the full technology stack. That's why we're taking the next step to help our partners grow their business by launching a new converged communications business unit to deliver a unified one ScanSource partner experience. This new business unit will include the business development and sales resources, pre-sales engineering, marketing, and supplier management functions, bringing together the ScanSource specialty communications team and the IntelliSys CX cloud-based solutions team into one combined business unit. This team will support specialty communication VARs and Intellisys CX partners, helping VARs sell more cloud recurring revenue products and solutions, and helping Intellisys partners attach more hardware. Importantly, each partner will have dedicated sales resources to sell across our One Scan Source portfolio. The Converged Communications Business Unit will be led by Katherine White, who brings five years of ScanSource experience across both our specialty business and Intellisys. Looking ahead, we're focused on helping our channel partners grow by delivering innovative, converged solutions, including, of course, new opportunities in AI. Our partners are finding excellent opportunities for AI adoption in the CX solutions area. And let me share two examples of recent AI channel wins, first with AI as automation, a financial institution adopted an AI-powered platform with AI agents to handle routine inquiries. That freed up approximately four to five hours per live agent each week so they could focus on more complex customer needs. Second, with AI as augmentation, AI helps drive revenue expansion, including cross-selling. In this deployment, AI supports inside sales agents during live interactions by providing real-time recommendations. We believe both examples highlight how ScanSource helps our partners bring converged, AI-enabled CX solutions to market. Overall, our strong results this quarter reinforce our confidence in our business model as we look to the future. I'll now turn the call over to Steve to take you through our financial results and our outlook for fiscal year 2026. Thanks, Mike.