8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 10, 2021

 ScanSource, Inc.

(Exact name of registrant as specified in its charter)

SC	00-26926	57-0965380
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

6 Logue Court, Greenville, SC 29615

(Address of principal executive offices, including zip code)

864-288-2432

(Registrant’s telephone number, including area code)

Title of Each Class	Trading Symbol	Name of Each Exchange on Which Registered
Common Stock, no par value	SCSC	NASDAQ Global Select Market

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   ☐   

Item 2.02. Results of Operations and Financial Condition

On May 10, 2021, ScanSource, Inc. (the "Company") issued a press release announcing its financial results for its third quarter ended March 31, 2021. A copy of the press release and accompanying CFO commentary are attached as Exhibits 99.1 and 99.2 hereto and incorporated herein by reference and also made available through the Company’s website at www.scansource.com. An updated investor presentation will be made available on the Company's website within approximately two weeks.

The information in Item 2.02 of this Report, including the exhibits, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any other filing under the Securities Act of 1933 or the Exchange Act.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits

99.1 – Press release issued by ScanSource, Inc. on May 10, 2021. The information contained in the attached exhibit is unaudited and should be read in conjunction with the Company’s annual and quarterly reports filed with the Securities and Exchange Commission.

99.2 – CFO commentary for the financial results conference call held on May 10, 2021.  The information contained in the attached exhibit is unaudited and should be read in conjunction with the Company’s annual and quarterly reports filed with the Securities and Exchange Commission.

Exhibit Number	Description
99.1	Press release
99.2	CFO commentary
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		ScanSource, Inc.
Date:	May 10, 2021	By:	/s/ Steve Jones
		Name:	Steve Jones
		Its:	Senior Executive Vice President and Chief Financial Officer

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

Contact:
Steve Jones		Mary M. Gentry
Senior Executive Vice President, Chief Financial Officer	- or -	Vice President, Treasurer and Investor Relations
ScanSource, Inc.		ScanSource, Inc.
(864) 286-4302		(864) 286-4892

SCANSOURCE DELIVERS STRONG THIRD QUARTER PROFITS

Third Quarter Profitability Reflects Consistent Execution

GREENVILLE, SC -- May 10, 2021 -- ScanSource, Inc. (NASDAQ: SCSC), a leading provider of technology products and solutions, today announced financial results for the third quarter ended March 31, 2021. All results in this release reflect continuing operations only unless otherwise noted.

Third Quarter Summary:

•Net sales: $729.9 million, down 2% year-over-year, or flat year-over-year for organic growth

•Gross profit: $88.1 million, up 4% year-over-year

•GAAP operating income of $19.4 million, up 87% year-over-year, for a 2.66% operating income margin

•Non-GAAP operating income of $25.1 million, up 70% year-over-year, for a 3.45% non-GAAP operating
income margin

•Net income from continuing operations of $13.8 million

•GAAP diluted EPS of $0.54 per share; non-GAAP diluted EPS of $0.71 per share

•Return on invested capital increased to 13.6% for the quarter

"We are very pleased with the excellent execution from ScanSource employees worldwide," said Mike Baur, Chairman and CEO, ScanSource, Inc. "We are focused on driving gross profit growth, gaining operating leverage on our SG&A, and shifting to more recurring revenue. We are committed to helping our channel partners accelerate their digital transformation."

Quarterly Results

Net sales for the third quarter of fiscal year 2021 totaled $729.9 million, down 2% year-over-year, or flat year-over-year for organic growth. During the quarter, the Company saw continued progress in recovering from the sales impact of the COVID-19 pandemic in North America and Brazil. For the Intelisys master agency business, net sales increased 12% year-over-year for the third quarter of fiscal year 2021.

For the third quarter of fiscal year 2021, operating income increased to $19.4 million from $10.4 million for the prior-year quarter, and non-GAAP operating income increased to $25.1 million from $14.8 million for the prior-year quarter. At the end of July 2020, the Company implemented a $30 million annualized expense reduction program to address the business impacts of the COVID-19 pandemic and prepare for the next phase of growth. Selling, general and administrative expenses for the quarter decreased $4.9 million year-over-year, and the Company continued to realize the planned quarterly impact of the expense reduction plan.

On a GAAP basis, net income for the third quarter of fiscal year 2021 totaled $13.8 million, or $0.54 per diluted share, compared to net income of $5.7 million, or $0.23 per diluted share, for the prior-year quarter. Non-GAAP net income totaled $18.2 million, or $0.71 per diluted share, compared to $9.2 million, or $0.36 per diluted share, for the prior-year quarter.

At March 31, 2021, ScanSource had cash and cash equivalents of $49.3 million and total debt of $198.9 million. The Company used $60.3 million of operating cash flow in the third quarter of fiscal year 2021 and generated $129.4 million for the trailing 12-month period.

1

Exhibit 99.1

COVID-19 Update

The Company's top priority during the COVID-19 pandemic is protecting the health and safety of our employees. We implemented travel restrictions and transitioned our employees, where possible, to a remote working environment. Most of our office-based employees around the world continue to work remotely. We have taken a number of measures to ensure our teams have the flexibility and resources they need to stay safe and healthy. We continue to experience higher costs from these safety measures to protect our employees. We are continuing to provide the high level of customer service our partners expect from us.

Webcast Details and CFO Commentary

At approximately 4:15 p.m. ET today, a CFO commentary, as a supplement to this press release and the Company's conference call, will be available on ScanSource's website, www.scansource.com (Investor Relations section). ScanSource will present additional information about its financial results in a conference call today, May 10, 2021, at 5:00 p.m. ET. A webcast of the call will be available for all interested parties and can be accessed at www.scansource.com (Investor Relations section). The webcast will be available for replay for 60 days.

Safe Harbor Statement

This press release contains “forward-looking” statements, including regarding the impact of the COVID-19 pandemic, which involve risks and uncertainties. Any number of factors could cause actual results to differ materially from anticipated results, including, but not limited to, the impact of the COVID-19 pandemic on the Company's operations and financial condition and the potential prolonged economic weakness brought on by COVID-19, the failure to manage and implement the Company's organic growth strategy, credit risks involving the Company's larger customers and suppliers, changes in interest and exchange rates and regulatory regimes impacting the Company's international operations, risk to the Company's business from a cyber-security attack, a failure of the Company's IT systems, failure to hire and retain quality employees, loss of the Company's major customers, termination of the Company's relationship with key suppliers or a significant modification of the terms under which it operates with a key supplier, changes in the Company's operating strategy, and other factors set forth in the "Risk Factors" contained in the Company's annual report on Form 10-K for the year ended June 30, 2020, filed with the Securities and Exchange Commission. Except as may be required by law, the Company expressly disclaims any obligation to update these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.

Non-GAAP Financial Information

In addition to disclosing results that are determined in accordance with United States Generally Accepted Accounting Principles ("GAAP"), the Company also discloses certain non-GAAP financial measures, which are summarized below. Non-GAAP financial measures are used to understand and evaluate performance, including comparisons from period to period. Non-GAAP results exclude amortization of intangible assets related to acquisitions, change in fair value of contingent consideration, acquisition costs, restructuring costs and other non-GAAP adjustments.

Net sales on a constant currency basis, excluding acquisitions (organic growth): The Company discloses the percentage change in net sales excluding the translation impact from changes in foreign currency exchange rates between reporting periods and excluding the net sales from acquisitions prior to the first full year from the acquisition date. This measure enhances the comparability between periods to help analyze underlying trends on an organic basis.

Income Statement Non-GAAP Metrics: To evaluate current period performance on a more consistent basis with prior periods, the Company discloses non-GAAP net sales, non-GAAP gross profit, non-GAAP operating income, non-GAAP other expense, net, non-GAAP pre-tax income, non-GAAP net income and non-GAAP diluted earnings per share (non-GAAP diluted "EPS"). Non-GAAP results exclude amortization of intangible assets related to acquisitions, changes in fair value of contingent consideration, acquisition and divestiture costs, impairment charges and other non-GAAP adjustments. These year-over-year metrics include the translation impact of changes in foreign currency exchange rates. Non-GAAP metrics are useful in assessing and understanding the Company's operating performance, especially when comparing results with previous periods or forecasting performance for future periods.

Return on invested capital ("ROIC"): ROIC assists management in comparing the Company's performance over various reporting periods on a consistent basis because it removes from our operating results the impact of items that do not reflect our core operating performance. We believe the calculation of ROIC provides useful information to investors and is an additional relevant comparison of our performance. ROIC is calculated as adjusted EBITDA over invested capital. Adjusted earnings before interest expense, income taxes, depreciation and amortization ("Adjusted EBITDA") excludes the change in fair value of

2

contingent consideration, in addition to other non-GAAP adjustments. Invested capital is defined as average equity plus average daily funded interest-bearing debt for the period. Management believes the calculation of ROIC provides useful information to investors and is an additional relevant comparison of the Company's performance during the year.

These non-GAAP financial measures have limitations as analytical tools, and the non-GAAP financial measures that the Company reports may not be comparable to similarly titled amounts reported by other companies. Analysis of results and outlook on a non-GAAP basis should be considered in addition to, and not in substitution for or as superior to, measurements of financial performance prepared in accordance with GAAP. A reconciliation of the Company's non-GAAP financial information to GAAP is set forth in the Supplementary Information (Unaudited) below.

About ScanSource, Inc.

ScanSource, Inc. (NASDAQ: SCSC) is at the center of the technology solution delivery channel, connecting businesses and providing solutions for their complex needs. ScanSource sells through multiple, specialized routes-to-market with digital, physical and services offerings from the world’s leading suppliers of point-of-sale (POS), payments, barcode, physical security, unified communications and collaboration, telecom and cloud services. ScanSource enables its sales partners to create, deliver and manage solutions for end-customers across almost every vertical market. Founded in 1992 and headquartered in Greenville, South Carolina, ScanSource was named one of the Best Places to Work in South Carolina and on FORTUNE magazine’s 2020 List of World’s Most Admired Companies. ScanSource ranks #654 on the Fortune 1000. For more information, visit www.scansource.com.

3

ScanSource Delivers Third Quarter Profit Growth

ScanSource, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands)
	March 31, 2021		June 30, 2020*
Assets
Current assets:
Cash and cash equivalents	$	49,321	$	29,485
Accounts receivable, less allowance of $21,180 at March 31, 2021 and $21,906 at March 31, 2020	509,404		443,185
Inventories	459,652		454,885
Prepaid expenses and other current assets	99,424		94,681
Current assets held for sale	—		181,231
Total current assets	1,117,801		1,203,467
Property and equipment, net	45,316		55,641
Goodwill	217,093		214,288
Identifiable intangible assets, net	109,172		121,547
Deferred income taxes	24,405		24,630
Other non-current assets	68,835		72,521
Total assets	$	1,582,622	$	1,692,094
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	521,552	$	454,240
Accrued expenses and other current liabilities	87,969		76,686
Current portion of contingent consideration	—		46,334
Income taxes payable	5,333		5,886
Current portion of long-term debt	7,843		7,839
Current liabilities held for sale	—		128,022
Total current liabilities	622,697		719,007
Deferred income taxes	4,309		3,884
Long-term debt, net of current portion	137,206		143,175
Borrowings under revolving credit facility	53,802		67,714
Other long-term liabilities	74,033		80,068
Total liabilities	892,047		1,013,848
Commitments and contingencies
Shareholders’ equity:
Preferred stock, no par value; 3,000,000 shares authorized, none issued	—		—
Common stock, no par value; 45,000,000 shares authorized, 25,466,365 and 25,361,298 shares issued and outstanding at March 31, 2021 and June 30, 2020, respectively	68,895		63,765
Retained earnings	734,361		747,276
Accumulated other comprehensive loss	(112,681)		(132,795)
Total shareholders’ equity	690,575		678,246
Total liabilities and shareholders’ equity	$	1,582,622	$	1,692,094

*Derived from audited financial statements.

4

ScanSource Delivers Third Quarter Profit Growth

ScanSource, Inc. and Subsidiaries
Condensed Consolidated Income Statements (Unaudited)
(in thousands, except per share data)
	Quarter ended March 31,				Nine months ended March 31,
	2021		2020		2021		2020
Net sales	$	729,873	$	744,584	$	2,298,111	$	2,411,285
Cost of goods sold	641,757		660,006		2,043,172		2,129,862
Gross profit	88,116		84,578		254,939		281,423
Selling, general and administrative expenses	60,099		64,971		182,681		201,344
Depreciation expense	3,141		3,268		9,634		9,729
Intangible amortization expense	4,880		5,159		14,595		15,007
Restructuring and other charges	560		169		9,312		604
Change in fair value of contingent consideration	—		618		516		6,266
Operating income	19,436		10,393		38,201		48,473
Interest expense	1,576		3,098		5,285		9,727
Interest income	(745)		(1,080)		(1,756)		(2,627)
Other expense (income), net	(302)		(137)		183		198
Income before income taxes	18,907		8,512		34,489		41,175
Provision for income taxes	5,121		2,797		9,757		11,542
Net income from continuing operations	13,786		5,715		24,732		29,633
Net loss from discontinued operations	(688)		(4,002)		(37,647)		(5,025)
Net (loss) income	$	13,098	$	1,713	$	(12,915)	$	24,608
Per share data:
Net income from continuing operations per common share, basic	$	0.54	$	0.23	$	0.97	$	1.17
Net loss from discontinued operations per common share, basic	(0.03)		(0.16)		(1.48)		(0.20)
Net (loss) income per common share, basic	$	0.51	$	0.07	$	(0.51)	$	0.97
Weighted-average shares outstanding, basic	25,455		25,346		25,404		25,386
Net income from continuing operations per common share, diluted	$	0.54	$	0.23	$	0.97	$	1.16
Net loss from discontinued operations per common share, diluted	(0.03)		(0.16)		(1.48)		(0.20)
Net (loss) income per common share, diluted	$	0.51	$	0.07	$	(0.51)	$	0.97
Weighted-average shares outstanding, diluted	25,572		25,363		25,484		25,444

5

ScanSource Delivers Third Quarter Profit Growth

ScanSource, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in thousands)
	Nine months ended March 31,
	2021		2020
Cash flows from operating activities:
Net (loss) income	$	(12,915)	$	24,608
Net loss from discontinued operations	(37,647)		(5,025)
Net income from continuing operations	24,732		29,633
Adjustments to reconcile net income to net cash provided by operating activities of continuing operations:
Depreciation and amortization	25,417		26,585
Amortization of debt issue costs	313		313
Provision for doubtful accounts	226		1,399
Share-based compensation	5,711		4,053
Deferred income taxes	(26)		(1,479)
Change in fair value of contingent consideration	516		6,266
Contingent consideration payments excess	(5,457)		(3,050)
Finance lease interest	96		64
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	(68,654)		(85)
Inventories	(5,907)		(7,446)
Prepaid expenses and other assets	(1,641)		(10,977)
Other non-current assets	2,846		(1,029)
Accounts payable	69,609		55,378
Accrued expenses and other liabilities	8,434		13,233
Income taxes payable	(793)		(4,775)
Net cash provided by operating activities of continuing operations	55,422		108,083
Cash flows from investing activities of continuing operations:
Capital expenditures	(2,283)		(6,575)
Cash paid for business acquisitions, net of cash acquired	—		(48,915)
Proceeds from the sale of net assets of discontinued operations	34,356		—
Net cash provided by (used in) investing activities of continuing operations	32,073		(55,490)
Cash flows from financing activities of continuing operations:
Borrowings on revolving credit, net of expenses	1,486,464		1,608,472
Repayments on revolving credit, net of expenses	(1,500,375)		(1,650,862)
Borrowings on long-term debt, net	(5,964)		(3,147)
Repayments of finance lease obligations	(974)		(660)
Contingent consideration payments	(41,393)		(35,481)
Exercise of stock options	439		754
Taxes paid on settlement of equity awards	(1,036)		(1,354)
Repurchase of common stock	—		(6,077)
Net cash used in financing activities of continuing operations	(62,839)		(88,355)

6

ScanSource Delivers Third Quarter Profit Growth

ScanSource, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited), continued
(in thousands)
Cash flows from discontinued operations:
Net cash flows provided by operating activities of discontinued operations	21,704		42,000
Net cash flows used in investing activities of discontinued operations	(58)		(48)
Net cash flows (used in) provided by financing activities of discontinued operations	(29,494)		6,739
Net cash flows provided by discontinued operations	(7,848)		48,691
Effect of exchange rate changes on cash and cash equivalents	(1,942)		(2,151)
Increase in cash and cash equivalents	14,866		10,778
Consolidated cash and cash equivalents at beginning of period	34,455		23,818
Consolidated cash and cash equivalents at end of period	49,321		34,596
Cash and cash equivalents of discontinued operations	—		4,838
Cash and cash equivalents of continuing operations	$	49,321	$	29,758

7

ScanSource Delivers Third Quarter Profit Growth

ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
(in thousands, except percentages)
Non-GAAP Financial Information:
	Quarter ended March 31,
	2021			2020
Return on invested capital ratio (ROIC), annualized (a)	13.6		%	6.0		%
Reconciliation of net income to EBITDA:
Net income from continuing operations (GAAP)	$	13,786		$	5,715
Plus: Interest expense	1,576			3,098
Plus: Income taxes	5,121			2,797
Plus: Depreciation and amortization	8,358			8,987
EBITDA (non-GAAP)	28,841			20,597
Plus: Change in fair value of contingent consideration	—			618
Plus: Acquisition and divestiture costs(b)	272			780
Plus: Restructuring costs	349			169
Plus: Tax recovery	—			(2,320)
Adjusted EBITDA (numerator for ROIC) (non-GAAP)	$	29,462		$	19,844
Invested Capital Calculations:
Equity – beginning of the quarter (c)	$	682,139		$	927,580
Equity – end of the quarter (c)	690,575			897,678
Plus: Change in fair value of contingent consideration, net of tax	—			467
Plus: Acquisition and divestiture costs(b)	272			780
Plus: Restructuring, net of tax	264			125
Plus: Tax recovery, net of tax	—			(1,754)
Plus: Net loss from discontinued operations	688			4,002
Average equity	686,969			914,439
Average funded debt (d)	191,996			405,533
Invested capital (denominator for ROIC) (non-GAAP)	$	878,965		$	1,319,972
(a) The annualized EBITDA amount is divided by days in the quarter times 365 days per year, or 366 days for leap year. There were 90 days in the current quarter and 91 days in the prior-year quarter.
(b) Acquisition and divestiture costs are generally nondeductible for tax purposes.
(c) In the quarter ending June 30, 2020, the Company recorded impairment charges of $120.5 million. Impairment charges, net of tax reduced equity by $114.4 million.
(d) Average funded debt, which includes both continuing and discontinued operations, is calculated as the average daily amounts outstanding on short-term and long-term interest-bearing debt.

8

ScanSource Delivers Third Quarter Profit Growth

ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
Net Sales by Segment:
	Quarter ended March 31,
	2021		2020		% Change
Worldwide Barcode, Networking & Security:	(in thousands)
Net sales, reported	$	502,227	$	489,218	2.7	%
Foreign exchange impact (a)	4,132		—
Non-GAAP net sales, constant currency	$	506,359	$	489,218	3.5	%
Worldwide Communications & Services:
Net sales, reported	$	227,646	$	255,366	(10.9)	%
Foreign exchange impact (a)	10,476		—
Non-GAAP net sales, constant currency	$	238,122	$	255,366	(6.8)	%
Consolidated:
Net sales, reported	$	729,873	$	744,584	(2.0)	%
Foreign exchange impact (a)	14,608		—
Non-GAAP net sales, constant currency	$	744,481	$	744,584	—	%
(a)Year-over-year net sales growth rate excluding the translation impact of changes in foreign currency exchange rates. Calculated by translating the net sales for the quarter ended March 31, 2021 into U.S. dollars using the average foreign exchange rates for the quarter ended March 31, 2020.

ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
Net Sales by Segment:
	Nine months ended March 31,
	2021		2020		% Change
Worldwide Barcode, Networking & Security:	(in thousands)
Net sales, reported	$	1,577,197	$	1,645,406	(4.1)	%
Foreign exchange impact (a)	19,758		—
Non-GAAP net sales, constant currency	$	1,596,955	$	1,645,406	(2.9)	%
Worldwide Communications & Services:
Net sales, reported	$	720,914	$	765,879	(5.9)	%
Foreign exchange impact (a)	47,694		—
Non-GAAP net sales, constant currency	$	768,608	$	765,879	0.4	%
Consolidated:
Net sales, reported	$	2,298,111	$	2,411,285	(4.7)	%
Foreign exchange impact (a)	67,452		—
Non-GAAP net sales, constant currency	$	2,365,563	$	2,411,285	(1.9)	%
(a)Year-over-year net sales growth rate excluding the translation impact of changes in foreign currency exchange rates. Calculated by translating the net sales for the ninemonthsended March 31, 2021 into U.S. dollars using the average foreign exchange rates for the nine months ended March 31, 2020.

9

ScanSource Delivers Third Quarter Profit Growth

ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
Net Sales by Geography:
	Quarter ended March 31,
	2021		2020		% Change
United States and Canada:	(in thousands)
Net sales, as reported	$	665,720	$	670,175	(0.7)	%
International:
Net sales, reported	$	64,153	$	74,409	(13.8)	%
Foreign exchange impact(a)	14,608		—
Non-GAAP net sales, constant currency	$	78,761	$	74,409	5.8	%
Consolidated:
Net sales, reported	$	729,873	$	744,584	(2.0)	%
Foreign exchange impact(a)	14,608		—
Non-GAAP net sales, constant currency	$	744,481	$	744,584	—	%
(a)Year-over-year net sales growth rate excluding the translation impact of changes in foreign currency exchange rates. Calculated by translating the net sales for the quarter ended March 31, 2021 into U.S. dollars using the average foreign exchange rates for the quarter ended March 31, 2020.

ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
Net Sales by Geography:
	Nine months ended March 31,
	2021		2020		% Change
United States and Canada:	(in thousands)
Net sales, as reported	$	2,069,327	$	2,173,515	(4.8)	%
International:
Net sales, reported	$	228,784	$	237,770	(3.8)	%
Foreign exchange impact(a)	67,452		—
Non-GAAP net sales, constant currency	$	296,236	$	237,770	24.6	%
Consolidated:
Net sales, reported	$	2,298,111	$	2,411,285	(4.7)	%
Foreign exchange impact(a)	67,452		—
Non-GAAP net sales, constant currency	$	2,365,563	$	2,411,285	(1.9)	%
(a) Year-over-year net sales growth rate excluding the translation impact of changes in foreign currency exchange rates. Calculated by translating the net sales for the nine months ended March 31, 2021 into U.S. dollars using the average foreign exchange rates for the nine months ended March 31, 2020.

10

ScanSource Delivers Third Quarter Profit Growth

	Quarter ended March 31, 2021
	GAAP Measure		Intangible amortization expense		Change in fair value of contingent consideration		Acquisition and divestiture costs		Restructuring costs		Tax recovery, net		Non-GAAP measure
	(in thousands, except per share data)
Net sales	$	729,873	$	—	$	—	$	—	$	—	$	—	$	729,873
Gross profit	88,116		—		—		—		—		—		88,116
Operating income	19,436		4,880		—		272		560		—		25,148
Other expense, net	529		—		—		—		—		—		529
Pre-tax income	18,907		4,880		—		272		560		—		24,619
Net income from continuing operations	13,786		3,697		—		272		423		—		18,178
Diluted EPS from continuing operations	$	0.54	$	0.14	$	—	$	0.01	$	0.02	$	—	$	0.71
	Quarter ended March 31, 2020
	GAAP Measure		Intangible amortization expense		Change in fair value of contingent consideration		Acquisition and divestiture costs		Restructuring costs		Tax recovery, net		Non-GAAP measure
	(in thousands, except per share data)
Net sales	$	744,584	$	—	$	—	$	—	$	—	$	—	$	744,584
Gross profit	84,578		—		—		—		—		—		84,578
Operating income	10,393		5,159		618		780		169		(2,320)		14,799
Other expense, net	1,881		—		—		—		—		—		1,881
Pre-tax income	8,512		5,159		618		780		169		(2,320)		12,918
Net income from continuing operations	5,715		3,909		467		780		125		(1,754)		9,242
Diluted EPS from continuing operations	$	0.23	$	0.15	$	0.02	$	0.03	$	—	$	(0.07)	$	0.36

11

ScanSource Delivers Third Quarter Profit Growth

	Nine months ended March 31, 2021
	Reported GAAP Measure		Intangible amortization expense		Change in fair value of contingent consideration		Acquisition and divestiture costs		Restructuring costs		Tax recovery, net		Non-GAAP measure
	(in thousands, except per share data)
Net sales	$	2,298,111	$	—	$	—	$	—	$	—	$	—	$	2,298,111
Gross profit	254,939		—		—		—		—		—		254,939
Operating income	38,201		14,595		516		2,130		9,312		—		64,754
Other expense, net	3,712		—		—		—		—		—		3,712
Pre-tax income	34,489		14,595		516		2,130		9,312		—		61,042
Net income from continuing operations	24,732		11,055		390		2,130		7,040		—		45,347
Diluted EPS from continuing operations	$	0.97	$	0.43	$	0.02	$	0.08	$	0.28	$	—	$	1.78
	Nine months ended March 31, 2020
	Reported GAAP Measure		Intangible amortization expense		Change in fair value of contingent consideration		Acquisition and divestiture costs		Restructuring costs		Tax recovery, net		Non-GAAP measure
	(in thousands, except per share data)
Net sales	$	2,411,285	$	—	$	—	$	—	$	—	$	—	$	2,411,285
Gross profit	281,423		—		—		—		—		—		281,423
Operating income	48,473		15,007		6,266		2,689		604		(2,320)		70,719
Other expense, net	7,298		—		—		—		—		—		7,298
Pre-tax income	41,175		15,007		6,266		2,689		604		(2,320)		63,421
Net income from continuing operations	29,633		11,347		4,737		2,689		449		(1,754)		47,101
Diluted EPS from continuing operations	$	1.16	$	0.45	$	0.19	$	0.11	$	0.02	$	(0.07)	$	1.85

12

ScanSource Delivers Third Quarter Profit Growth

ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
Discontinued Operations - Financial Results:
	Quarter ended March 31,				Nine months ended March 31,
	2021		2020		2021		2020
	(in thousands)
Net sales	$	—	$	127,899	$	213,373	$	439,527
Cost of goods sold	—		117,669		198,512		400,158
Gross profit	—		10,230		14,861		39,369
Selling, general and administrative expenses	—		13,782		17,291		42,607
Depreciation expense	—		225		—		771
Intangible amortization expense	—		327		—		1,073
Operating loss	—		(4,104)		(2,430)		(5,082)
Interest expense, net	—		323		394		1,236
Loss on disposal group	688		—		34,496		—
Other expense, net	—		433		310		(96)
Loss from discontinued operations before taxes	(688)		(4,860)		(37,630)		(6,222)
Income tax expense	—		(858)		17		(1,197)
Net loss from discontinued operations	$	(688)	$	(4,002)	$	(37,647)	$	(5,025)

13

ScanSource Delivers Third Quarter Profit Growth

ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
Discontinued Operations - Assets and Liabilities:
	March 31, 2021		June 30, 2020
	(in thousands)
Assets
Current assets:
Cash and cash equivalents	$	—	$	4,970
Accounts receivable, net	—		117,200
Inventories, net	—		106,779
Prepaid expenses and other current assets	—		23,808
Total current assets	—		252,757
Property and equipment, net	—		1,833
Deferred income taxes	—		9,349
Other non-current assets	—		6,215
Total assets, before valuation allowance	—		270,154
Less: valuation allowance	—		(88,923)
Total assets, net of valuation allowance (a)	$	—	$	181,231
Liabilities
Current liabilities:
Accounts payable	$	—	$	56,098
Accrued expenses and other current liabilities	—		14,815
Other taxes payable	—		20,378
Short-term borrowings	—		3,524
Income tax payable	—		1,085
Total current liabilities	—		95,900
Borrowings under revolving credit facility	—		24,704
Other long-term liabilities	—		7,418
Total liabilities(1)	$	—	$	128,022
(a) Total assets and liabilities of discontinued operations are classified in current assets and liabilities, respectively, in the Company's consolidated balance sheet as of March 31, 2021 and June 30, 2020. The discontinued operations were disposed of during the quarter ended December 31, 2020.

14

EX-99.2

CFO COMMENTARY Q3 FY2021 ScanSource, Inc. scansource.com FINANCIAL INFORMATION AND CONFERENCE CALL Please see the accompanying earnings press release available at www.scansource.com in the Investor Relations section. The information included in this CFO commentary is unaudited and should be read in conjunction with the Company’s SEC filings on Form 10-Q for the quarter ended March 31, 2021. All results reflect continuing operations only unless otherwise noted. ScanSource will present additional information about its financial results and outlook in a conference call on Monday, May 10, 2021 at 5:00 pm ET. A webcast of the call is available and can be accessed at www.scansource.com (Investor Relations section). The webcast will be available for replay for 60 days. THIRD QUARTER SUMMARY Strong execution by our teams in North America and Brazil drove third quarter profitability growth. For the quarter, net sales declined 2% Y/Y (flat for organic growth) and were down 10% Q/Q in line with historical seasonality. Intelisys net sales grew 12% Y/Y, continuing to drive our recurring revenue shift. Our profits grew faster than sales. We drove 4% Y/Y gross profit growth, expanded margins (12.1% for gross profit margin and 3.45% for non-GAAP operating margin), and gained operating leverage on our SG&A expenses. Our balance sheet remains strong. Our working capital investment increased during the quarter with inventory levels aligned with anticipated customer demand. For the trailing 12-months ending March 31, 2021, we generated operating cash flow of $129 million, compared with $143 million for the trailing 12-months ending March 31, 2020. For the third quarter, our return on invested capital (ROIC) increased to 13.6%. CFO COMMENTARY Q3 FY 2021 May 10, 20211 Please see the Appendix for calculation of non-GAAP measures and reconciliations to GAAP measures. Q3 FY2021: Third quarter 2.66% operating margin, 3.45% non-GAAP operating margin, and 13.6% ROIC reflect strong execution Exhibit 99.2

CFO COMMENTARY Q3 FY2021 ScanSource, Inc. scansource.com Q3 FY21 Q2 FY21 Q3 FY20 Q/Q Change Y/Y Change Net sales $729.9 $810.9 $744.6 -10% -2% Gross profit $88.1 $86.0 $84.6 +2% +4% Gross profit margin % 12.1% 10.6% 11.4% +146 bps +71 bps SG&A expenses $60.1 $60.5 $65.0 -1% -7% Non-GAAP SG&A expenses $59.8 $59.1 $66.5 +1% -10% Operating income $19.4 $17.1 $10.4 +13% +87% Operating income % 2.66% 2.11% 1.40% +55 bps +127 bps Non-GAAP operating income $25.1 $23.8 $14.8 +6% +70% Non-GAAP operating income % 3.45% 2.94% 1.99% +51 bps +146 bps GAAP net income $13.8 $11.1 $5.7 +25% +141% Non-GAAP net income $18.2 $16.5 $9.2 +10% +97% GAAP diluted EPS $0.54 $0.43 $0.23 +26% +135% Non-GAAP diluted EPS $0.71 $0.65 $0.36 +9% +97% • Net sales of $729.9 million, down 2% Y/Y - FX impact of ($15) million; flat for organic growth - Down 10% Q/Q in line with historical seasonality - Intelisys recurring revenue increased approximately 12% Y/Y • Gross profit margin increased to 12.1% - More favorable sales mix - Higher vendor sales program achievement - Higher-than-normal margin for Brazil • Operating income margin of 2.66% and non-GAAP operating income margin of 3.45% - Higher gross profit margin and operating leverage on SG&A • SG&A expenses and non-GAAP SG&A expenses down 7% Y/Y and 10% Y/Y, respectively - SG&A reflects realization of $30 million annualized expense reduction program • GAAP diluted EPS of $0.54 and non- GAAP diluted EPS of $0.71 $ in millions, except EPS May 10, 2021 QUARTERLY HIGHLIGHTS Organic growth, a non-GAAP measure, reflects reported sales growth less impacts from foreign currency translation and acquisitions. Non-GAAP SG&A expenses, non-GAAP operating income, non-GAAP net income, and non-GAAP diluted EPS exclude amortization of intangibles, change in fair value of contingent consideration, impairment charges, restructuring charges, acquisition/divestiture costs, and other non-GAAP items. 2

CFO COMMENTARY Q3 FY2021 ScanSource, Inc. scansource.com • Net sales of $502.2 million, up 3% Y/Y - Organic growth up 4% Y/Y - Growth across key technologies including mobile computing, self- checkout, video surveillance, and networking - Strong growth in Brazil in local currency • Gross profit margin increased to 8.7% - More favorable sales mix - Higher vendor sales program achievement • Operating income margin of 1.6% and non-GAAP operating income margin of 2.0% - Higher gross profit margin - Lower SG&A from cost savings Q3 FY21 Q2 FY21 Q3 FY20 Net sales $502.2 $551.4 $489.2 Gross profit $43.9 $42.7 $41.9 Gross profit margin % 8.7% 7.7% 8.6% Operating income $8.1 $5.9 $4.8 Operating income % 1.6% 1.1% 1.0% Non-GAAP operating income $10.0 $7.9 $5.3 Non-GAAP operating income % 2.0% 1.4% 1.1% May 10, 2021 WORLDWIDE BARCODE, NETWORKING & SECURITY $489 $448 $524 $551 $502 $300 $400 $500 $600 $700 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Net Sales, $ in millions Y/Y Growth +3% Y/Y Organic Growth +4% $ in millions Organic growth, a non-GAAP measure, reflects reported sales growth less impacts from foreign currency translation and acquisitions. Non-GAAP operating income excludes amortization of intangibles, impairment charges and other non-GAAP items. 3

CFO COMMENTARY Q3 FY2021 ScanSource, Inc. scansource.com Q3 FY21 Q2 FY21 Q3 FY20 Net sales $227.6 $259.5 $255.4 Gross profit $44.2 $43.4 $42.7 Gross profit margin % 19.4% 16.7% 16.7% Operating income $12.2 $13.1 $6.4 Operating income % 5.4% 5.0% 2.5% Non-GAAP operating income $15.1 $16.0 $9.5 Non-GAAP operating income % 6.6% 6.2% 3.7% May 10, 2021 WORLDWIDE COMMUNICATIONS & SERVICES $255 $189 $234 $260 $228 $- $100 $200 $300 $400 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Net Sales, $ in millions Y/Y Growth -11% Y/Y Organic Growth -7% $ in millions • Net sales of $227.6 million, down 11% Y/Y - Shift in unified communications mix to reflect growth in cloud solutions and Audio Visual solutions stacks - Net sales for Intelisys master agency, up 12% Y/Y; 36% Y/Y growth for UCaaS and 67% Y/Y growth for CCaaS • Gross profit margin of 19.4% - More favorable sales mix - Higher vendor sales program achievement - Higher-than-normal margin for Brazil • Operating income margin of 5.4% and non- GAAP operating income margin of 6.6% - Higher gross profit margin - Y/Y SG&A cost reductions 4 Organic growth, a non-GAAP measure, reflects reported sales growth less impacts from foreign currency translation and acquisitions. Non-GAAP operating income excludes amortization of intangibles, change in fair value of contingent consideration, impairment charges, and other non-GAAP items.

CFO COMMENTARY Q3 FY2021 ScanSource, Inc. scansource.com Q3 FY21 Q2 FY21 Q3 FY20 Accounts receivable (Q/E) $509.4 $534.6 $504.4 Days sales outstanding in receivables 63 60 61 Inventory (Q/E) $459.7 $421.0 $550.1 Inventory turns 5.8 6.9 4.5 Accounts payable (Q/E) $521.6 $589.3 $533.1 Paid for inventory days* 2.2 (11.8) 11.0 Working capital (Q/E) (AR+INV–AP) $447.5 $366.3 $521.3 May 10, 2021 WORKING CAPITAL • Working capital of $447.5 million, up 22% Q/Q and down 14% Y/Y • Days sales outstanding in receivables of 63 days - Primarily due to timing of sales • Inventory of $459.7 million, up 9% Q/Q and down 16% Y/Y • Inventory turns of 5.8x, in line with expected range • Paid for inventory days of 2.2, up Q/Q and down Y/Y - Reflects timing of accounts payable $ in millions * Paid for inventory days represent Q/E inventory days less Q/E accounts payable days 5

CFO COMMENTARY Q3 FY2021 ScanSource, Inc. scansource.com Q3 FY21 Q2 FY21 Q3 FY20 Adjusted EBITDA (QTR)* $29.5 $27.7 $19.8 Adjusted ROIC (QTR)* 13.6% 12.4% 6.0% Operating cash flow (QTR) ($60.3) $44.4 $25.3 Operating cash flow, trailing 12 months $129.4 $215.0 $142.5 Cash and cash equivalents (Q/E), including discontinued operations $49.3 $67.2 $34.6 Debt (Q/E), including discontinued operations $198.9 $151.9 $320.6 Net debt, including discontinued operations to adjusted EBITDA, trailing 12 months* 1.7x 1.1x 2.4x May 10, 2021 CASH FLOW AND BALANCE SHEET HIGHLIGHTS • Adjusted EBITDA of $29.5 million - Up 6% Q/Q from higher gross profit margin - Up 48% Y/Y from higher gross profit margin and lower SG&A expenses • Operating cash flow of ($60.3) million for the quarter and $129.4 million for the trailing-12 months - Increase in working capital and inventory levels aligned with anticipated customer demand • Cash and cash equivalent balances of $49.3 million at 3/31/21, including $42.3 million held outside of the U.S. • Net debt to trailing 12-month adjusted EBITDA is 1.7x, within targeted range $ in millions * Excludes non-GAAP adjustments and change in fair value of contingent consideration 6

CFO COMMENTARY Q3 FY2021 ScanSource, Inc. scansource.com FORWARD-LOOKING STATEMENTS This CFO Commentary contains certain comments that are “forward-looking” statements, including statements about the impact of the COVID-19 pandemic and our operating strategies that involve plans, strategies, economic performance and trends, projections, expectations, costs or beliefs about future events and other statements that are not descriptions of historical facts. Forward-looking information is inherently subject to risks and uncertainties. Any number of factors could cause actual results to differ materially from anticipated or forecasted results, including but not limited to, the impact of the COVID-19 pandemic on our operations and financial condition and the potential prolonged economic weakness brought on by COVID-19, the failure to manage and implement our organic growth strategy, credit risks involving our larger customers and suppliers, changes in interest and exchange rates and regulatory regimes impacting our international operations, risk to our business from a cyber-security attack, a failure of our IT systems, failure to hire and retain quality employees, loss of our major customers, termination of our relationship with key suppliers or a significant modification of the terms under which we operate with a key supplier, changes in our operating strategy, and other factors set forth in the “Risk Factors” contained in our annual report on Form 10-K for the year ended June 30, 2020, and subsequent reports on Form 10-Q, filed with the Securities and Exchange Commission (“SEC”). Although ScanSource believes the expectations in its forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievement. ScanSource disclaims any obligation to update or revise any forward- looking statements, whether as a result of new information, future events, or otherwise, except as may be required by law. NON-GAAP FINANCIAL INFORMATION In addition to disclosing results that are determined in accordance with United States Generally Accepted Accounting Principles (“GAAP”), the Company also discloses certain non-GAAP measures, including non-GAAP operating income, non-GAAP operating income margin, non-GAAP net income, non- GAAP diluted EPS, non-GAAP net sales, non- GAAP gross profit, non-GAAP gross margin, non-GAAP SG&A expenses, adjusted EBITDA, ROIC and net sales less impacts from foreign currency translation and acquisitions (organic growth). A reconciliation of the Company's non-GAAP financial information to GAAP financial information is provided in the Appendix and in the Company’s Form 8-K, filed with the SEC, with the quarterly earnings press release for the period indicated. May 10, 20217

5-Quarter Financial Summary - for continuing operations ($ in thousands, except per share data) Q3 FY21 Q2 FY21 Q1 FY21 Q4 FY20 Q3 FY20 Q/Q Y/Y Select reported GAAP measures: Net sales $ 729,873 $ 810,897 $ 757,342 $ 636,450 $ 744,584 (10)% (2)% Gross profit $ 88,116 $ 86,043 $ 80,779 $ 74,147 $ 84,579 2% 4% Gross profit margin % 12.1 % 10.6 % 10.7 % 11.7 % 11.4 % 146 bp 71 bp SG&A expenses $ 60,099 $ 60,470 $ 62,112 $ 58,192 $ 64,971 (1)% (7)% Operating income (loss) $ 19,436 $ 17,130 $ 1,634 $ (113,439) $ 10,393 13% 87% Operating income (loss) % 2.66 % 2.11 % 0.22 % (17.82) % 1.40 % 55 bp 127 bp Net income (loss) $ 13,786 $ 11,061 $ (115) $ (108,859) $ 5,715 25% 141% Diluted EPS $ 0.54 $ 0.43 $ (0.01) $ (4.29) $ 0.23 26% 135% Select reported Non-GAAP measures: (a) Net sales $ 729,873 $ 810,897 $ 757,342 $ 636,450 $ 744,584 (10)% (2)% Gross profit $ 88,116 $ 86,043 $ 80,779 $ 74,147 $ 84,578 2% 4% Gross profit margin % 12.1 % 10.6 % 10.7 % 11.7 % 11.4 % 146 bp 71 bp Non-GAAP SG&A expenses $ 59,827 $ 59,110 $ 61,614 $ 62,624 $ 66,511 1% (10)% Non-GAAP operating income $ 25,148 $ 23,836 $ 15,769 $ 8,219 $ 14,799 6% 70% Non-GAAP operating income % 3.45 % 2.94 % 2.08 % 1.29 % 1.99 % 51 bp 146 bp Non-GAAP net income $ 18,178 $ 16,469 $ 10,698 $ 4,857 $ 9,242 10% 97% Non-GAAP diluted EPS $ 0.71 $ 0.65 $ 0.42 $ 0.19 $ 0.36 9% 97% Adjusted EBITDA $ 29,462 $ 27,732 $ 19,743 $ 12,321 $ 19,844 6% 48% Adjusted ROIC 13.6 % 12.4 % 8.4 % 4.0 % 6.0 % 122 bp 761 bp Operating cash flow (QTR) $ (60,252) $ 44,449 $ 71,225 $ 73,953 $ 25,348 (236)% (338)% Operating cash flow (TTM) $ 129,375 $ 214,975 $ 225,630 $ 182,035 $ 142,534 (40)% (9)% (a) See pages 9 through 11 of the Appendix for the calculation of non-GAAP measures and reconciliations to GAAP measures. ScanSource, Inc. CFO COMMENTARY Q3 FY2021 APPENDIX: RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 8 May 10, 2021

Operating Income, Pre-Tax Income, Net Income & EPS - QTR ($ in thousands) Quarter ended March 31, 2021 Reported GAAP measure Intangible amortization expense Change in fair value of contingent consideration Acquisition, divestiture and restructuring costs(a) Tax recovery, net Impairment charges Non-GAAP measure Net sales $ 729,873 $ — $ — $ — $ — $ — $ 729,873 Gross profit 88,116 — — — — — 88,116 SG&A expenses 60,099 — — (272) — — 59,827 Operating income 19,436 4,880 — 832 — — 25,148 Other expense, net 529 — — — — — 529 Pre-tax income 18,907 4,880 — 832 — — 24,619 Net income 13,786 3,697 — 695 — — 18,178 Diluted EPS $ 0.54 $ 0.14 $ — $ 0.03 $ — $ — $ 0.71 (a) Acquisition and divestiture costs totaled $0.3 million for the quarter ended March 31, 2021 and are generally nondeductible for tax purposes. Restructuring costs totaled $0.6 million for the quarter ended March 31, 2021. ($ in thousands) Quarter ended December 31, 2020 Reported GAAP measure Intangible amortization expense Change in fair value of contingent consideration Acquisition, divestiture and restructuring costs(a) Tax recovery, net Impairment charges Non-GAAP measure Net sales $ 810,897 $ — $ — $ — $ — $ — $ 810,897 Gross profit 86,043 — — — — — 86,043 SG&A expenses 60,470 — — (1,360) — — 59,110 Operating income 17,130 4,862 — 1,844 — — 23,836 Other expense, net 1,386 — — — — — 1,386 Pre-tax income 15,744 4,862 — 1,844 — — 22,450 Net income 11,061 3,682 — 1,726 — — 16,469 Diluted EPS $ 0.43 $ 0.15 $ — $ 0.08 $ — $ — $ 0.65 (a) Acquisition and divestiture costs totaled $1.4 million for the quarter ended December 31, 2020 and are generally nondeductible for tax purposes. Restructuring costs totaled $0.5 million for the quarter ended December 31, 2020. ScanSource, Inc. CFO COMMENTARY Q3 FY2021 APPENDIX: RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 9 May 10, 2021

Operating Income, Pre-Tax Income, Net Income & EPS - QTR, continued ($ in thousands) Quarter ended September 30, 2020 Reported GAAP measure Intangible amortization expense Change in fair value of contingent consideration Acquisition, divestiture and restructuring costs(a) Tax recovery, net Impairment charges Non-GAAP measure Net sales $ 757,342 $ — $ — $ — $ — $ — $ 757,342 Gross profit 80,779 — — — — — 80,779 SG&A expenses 62,112 — — (498) — — 61,614 Operating income 1,634 4,853 516 8,766 — — 15,769 Other expense, net 1,796 — — — — — 1,796 Pre-tax (loss) income (162) 4,853 516 8,766 — — 13,973 Net (loss) income (115) 3,675 390 6,748 — — 10,698 Diluted EPS $ (0.01) $ 0.14 $ 0.02 $ 0.27 $ — $ — $ 0.42 (a) Acquisition and divestiture costs totaled $0.5 million for the quarter ended September 30, 2020 and are generally nondeductible for tax purposes. Restructuring costs totaled $8.3 million for the quarter ended September 30, 2020. ($ in thousands) Quarter ended June 30, 2020 Reported GAAP measure Intangible amortization expense Change in fair value of contingent consideration Acquisition, divestiture and restructuring costs(a) Tax recovery, net Impairment charges Non-GAAP measure Net sales $ 636,450 $ — $ — $ — $ — $ — $ 636,450 Gross profit 74,147 — — — — — 74,147 SG&A expenses 58,192 — — (1,311) 5,743 — 62,624 Operating (loss) income (113,439) 4,946 674 1,311 (5,743) 120,470 8,219 Other expense, net (489) — — — 2,681 — 2,192 Pre-tax (loss) income (112,950) 4,946 674 1,311 (8,424) 120,470 6,027 Net (loss) income (108,859) 3,744 510 1,311 (6,247) 114,398 4,857 Diluted EPS $ (4.29) $ 0.15 $ 0.02 $ 0.05 $ (0.25) $ 4.51 $ 0.19 (a) Acquisition and divestiture costs totaled $1.3 million for the quarter ended June 30, 2020 and are generally nondeductible for tax purposes. ScanSource, Inc. CFO COMMENTARY Q3 FY2021 APPENDIX: RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 10 May 10, 2021

Operating Income, Pre-Tax Income, Net Income & EPS - QTR, continued ($ in thousands) Quarter ended March 31, 2020 Reported GAAP measure Intangible amortization expense Change in fair value of contingent consideration Acquisition, divestiture and restructuring costs(a) Tax recovery, net Impairment charges Non-GAAP measure Net sales $ 744,584 $ — $ — $ — $ — $ — $ 744,584 Gross profit 84,578 — — — — — 84,578 SG&A expenses 64,971 — — (780) 2,320 — 66,511 Operating (loss) income 10,393 5,159 618 949 (2,320) — 14,799 Other expense, net 1,881 — — — — — 1,881 Pre-tax (loss) income 8,512 5,159 618 949 (2,320) — 12,918 Net (loss) income 5,715 3,909 467 905 (1,754) — 9,242 Diluted EPS $ 0.23 $ 0.15 $ 0.02 $ 0.03 $ (0.07) $ — $ 0.36 (a) Acquisition and divestiture costs totaled $0.8 million for the quarter ended March 31, 2020 and are generally nondeductible for tax purposes. Restructuring costs totaled $0.2 million for the quarter ended March 31, 2020. ScanSource, Inc. CFO COMMENTARY Q3 FY2021 APPENDIX: RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 11 May 10, 2021

Net Sales, Constant Currency (Organic Growth) - QTR ($ in thousands) WW Barcode, NW & Security WW Comms. & Services Consolidated For the quarter ended March 31, 2021: Q3 FY21 net sales, as reported $ 502,227 $ 227,646 $ 729,873 Foreign exchange impact (a) 4,132 10,476 14,608 Q3 FY21 net sales, constant currency (non-GAAP) $ 506,359 $ 238,122 $ 744,481 For the quarter ended March 31, 2020: Q3 FY20 net sales, as reported $ 489,218 $ 255,366 $ 744,584 Y/Y % Change: As reported 2.7 % (10.9) % (2.0) % Constant currency (non-GAAP) 3.5 % (6.8) % — % (a) Year-over-year sales growth excluding the translation impact of changes in foreign currency rates. Calculated by translating net sales for the quarter ended March 31, 2021 into U.S. dollars using the weighted-average foreign exchange rates for the quarter ended March 31, 2020. ScanSource, Inc. CFO COMMENTARY Q3 FY2021 APPENDIX: RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 12 May 10, 2021

Highlights by Segment - QTR ($ in thousands) Quarter Ended March 31, 2021 Reported GAAP measure Intangible amortization expense Change in fair value of contingent consideration Acquisition, Divestiture, and Restructuring costs Tax recovery, net Non-GAAP measure Worldwide Barcode, NW & Security: Net sales 502,227 — — — — $ 502,227 Gross profit 43,869 — — — — $ 43,869 Gross profit margin % 8.7 % — % — % — — % 8.7 % Operating income 8,054 1,968 — — — $ 10,022 Operating income margin % 1.6 % — % — % — — % 2.0 % Worldwide Communications & Services: Net sales 227,646 — — — — $ 227,646 Gross profit 44,247 — — — — $ 44,247 Gross profit margin % 19.4 % — % — % — % — % 19.4 % Operating income 12,214 2,912 — — — $ 15,126 Operating income margin % 5.4 % — % — % — % — % 6.6 % ($ in thousands) Quarter Ended December 31, 2020 Reported GAAP measure Intangible amortization expense Change in fair value of contingent consideration Acquisition, Divestiture, and Restructuring costs Tax recovery, net Non-GAAP measure Worldwide Barcode, NW & Security: Net sales 551,394 — — — — $ 551,394 Gross profit 42,685 — — — — $ 42,685 Gross profit margin % 7.7 % — % — % — % — % 7.7 % Operating income 5,887 1,968 — — — $ 7,855 Operating income margin % 1.1 % — % — % — % — % 1.4 % ScanSource, Inc. CFO COMMENTARY Q3 FY2021 APPENDIX: RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 13 May 10, 2021

Highlights by Segment - QTR, continued ($ in thousands) Quarter Ended December 31, 2020 Reported GAAP measure Intangible amortization expense Change in fair value of contingent consideration Acquisition, Divestiture, and Restructuring costs Tax recovery, net Non-GAAP measure Worldwide Communications & Services: Net sales 259,503 — — — — $ 259,503 Gross profit 43,358 — — — — $ 43,358 Gross profit margin % 16.7 % — % — % — % — % 16.7 % Operating income 13,087 2,894 — — — $ 15,981 Operating income margin % 5.0 % — % — % — % — % 6.2 % ($ in thousands) Quarter Ended March 31, 2020 Reported GAAP measure Intangible amortization expense Change in fair value of contingent consideration Acquisition, Divestiture, and Restructuring costs Tax recovery, net Non-GAAP measure Worldwide Barcode, NW & Security: Net sales 489,218 — — — — $ 489,218 Gross profit 41,870 — — — — $ 41,870 Gross profit margin % 8.6 % — % — % — % — % 8.6 % Operating income 4,779 1,968 — — (1,452) $ 5,295 Operating income margin % 1.0 % — % — % — % — % 1.1 % Worldwide Communications & Services: Net sales 255,366 — — — — $ 255,366 Gross profit 42,708 — — — — $ 42,708 Gross profit margin % 16.7 % — % — % — % — % 16.7 % Operating income 6,394 3,191 618 169 (868) $ 9,504 Operating income margin % 2.5 % — % — % — % — % 3.7 % ScanSource, Inc. CFO COMMENTARY Q3 FY2021 APPENDIX: RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 14 May 10, 2021

Average Return on Invested Capital - QTR ($ in thousands) Q3 FY21 Q2 FY21 Q1 FY21 Q4 FY20 Q3 FY20 Adjusted return on invested capital (ROIC), annualized (a) 13.6 % 12.4 % 8.4 % 4.0 % 6.0 % Reconciliation of Net Income to Adjusted EBITDA Net income (loss) from continuing operations - GAAP $ 13,786 $ 11,061 $ (115) $ (108,859) $ 5,715 Plus: Interest expense 1,576 1,796 1,913 2,497 3,098 Income taxes 5,121 4,683 (47) (4,091) 2,797 Depreciation and amortization 8,358 8,349 8,710 8,743 8,987 EBITDA 28,841 25,889 10,461 (101,710) 20,597 Adjustments: Change in fair value of contingent consideration — — 516 674 618 Tax recovery, net — — — (8,424) (2,320) Acquisition and divestiture costs 272 1,360 498 1,311 780 Restructuring costs 349 484 8,268 — 169 Impairment charges — — — 120,470 — Adjusted EBITDA (numerator for ROIC) (non-GAAP) $ 29,462 $ 27,733 $ 19,743 $ 12,321 $ 19,844 Invested Capital Calculation Equity - beginning of the quarter (b) $ 682,139 $ 671,227 $ 678,246 $ 897,678 $ 927,580 Equity - end of quarter (b) 690,575 682,139 671,227 678,246 897,678 Adjustments: Change in fair value of contingent consideration, net of tax — — 390 510 467 Tax recovery, net and related interest income, net of tax — — — (6,247) (1,754) Acquisition and divestiture costs 272 1,360 498 1,311 780 Asset impairment, net of tax — — — 114,398 — Restructuring, net of tax 264 366 6,250 — 125 Discontinued operations net loss 688 25,255 11,704 108,403 4,002 Average equity 686,969 690,174 684,158 897,150 914,439 Average funded debt (c) 191,996 198,620 243,268 337,973 405,533 Invested capital (denominator for ROIC) (non-GAAP) $ 878,965 $ 888,794 $ 927,426 $ 1,235,123 $ 1,319,972 (a) Calculated as net income plus interest expense, income taxes, depreciation and amortization (EBITDA), annualized divided by invested capital for the period. Adjusted EBITDA reflects other adjustments for non-GAAP measures. (b) In the quarter ending June 30, 2020, the Company recorded impairment charges of $120.5 million. Impairment charges, net of tax reduced equity by $114.4 million. (c) Average funded debt, which includes both continuing and discontinued operations, is calculated as the daily average amounts outstanding on our short-term and long-term interest-bearing debt. ScanSource, Inc. CFO COMMENTARY Q3 FY2021 APPENDIX: RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 15 May 10, 2021

Net Debt and EBITDA Metrics ($ in thousands) Q3 FY21 Q2 FY21 Q1 FY21 Q4 FY20 Q3 FY20 Debt of continuing operations (Q/E) $ 198,851 $ 151,924 $ 148,799 $ 218,728 $ 281,951 Debt of discontinued operations (Q/E) — — 19,932 28,228 38,645 Consolidated debt (Q/E) 198,851 151,924 168,731 246,956 320,596 Less: Cash and cash equivalents of continuing operations (Q/E) (49,321) (67,187) (49,889) (29,485) (29,758) Cash and cash equivalents of discontinued operations (Q/E) — — (5,678) (4,970) (4,838) Consolidated cash and cash equivalents (Q/E) (49,321) (67,187) (55,567) (34,455) (34,596) Net debt (Q/E) $ 149,530 $ 84,737 $ 113,164 $ 212,501 $ 286,000 Reconciliation of Net Income to Adjusted EBITDA Net income (loss) from continuing operations - GAAP $ 13,786 $ 11,061 $ (115) $ (108,859) $ 5,715 Plus: Interest expense 1,576 1,796 1,913 2,497 3,098 Income taxes 5,121 4,683 (47) (4,091) 2,797 Depreciation and amortization 8,358 8,349 8,710 8,743 8,987 EBITDA 28,841 25,889 10,461 (101,710) 20,597 Adjustments: Change in fair value of contingent consideration — — 516 674 618 Tax recovery, net — — — (8,424) (2,320) Acquisition and divestiture costs 272 1,360 498 1,311 780 Restructuring costs 349 484 8,268 — 169 Impairment charges — — — 120,470 — Adjusted EBITDA (non-GAAP) $ 29,462 $ 27,733 $ 19,743 $ 12,321 $ 19,844 Adjusted EBITDA, TTM (a) $ 89,471 $ 79,642 $ 84,929 $ 97,047 $ 119,925 Net Debt / Adjusted EBITDA, TTM (a) 1.7x 1.1x 1.3x 2.2x 2.4x (a) Adjusted EBITDA for the trailing 12-month period ScanSource, Inc. CFO COMMENTARY Q3 FY2021 APPENDIX: RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 16 May 10, 2021

Discontinued Operations, Net Sales and Working Capital ($ in thousands) Q3 FY21 Q2 FY21 Q1 FY21 Q4 FY20 Q3 FY20 Net sales from continuing operations $ 729,873 $ 810,897 $ 757,342 $ 636,450 $ 744,584 Net sales from discontinued operations — 68,323 145,049 121,969 127,899 Working capital Net accounts receivable of continuing operations $ 509,404 $ 534,583 $ 509,779 $ 443,185 $ 504,366 Net accounts receivable of discontinued operations — — 130,553 117,200 114,392 Inventory of continuing operations $ 459,652 $ 421,003 $ 423,088 $ 454,885 $ 550,072 Inventory of discontinued operations — — 95,560 106,779 116,386 Accounts payable of continuing operations $ 521,552 $ 589,292 $ 544,856 $ 454,240 $ 533,124 Accounts payable of discontinued operations — — 84,657 56,098 75,293 Working capital of continuing operations $ 447,504 $ 366,294 $ 388,011 $ 443,830 $ 521,314 Working capital of discontinued operations — — 141,456 167,881 155,485 ScanSource, Inc. CFO COMMENTARY Q3 FY2021 APPENDIX: RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 17 May 10, 2021

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Cover Page	May 10, 2021	Feb. 02, 2021	Nov. 09, 2020
Cover [Abstract]
Document Type	8-K
Document Period End Date	May 10, 2021
Entity Registrant Name	ScanSource, Inc.
Entity Incorporation, State or Country Code		SC
Entity File Number		00-26926
Entity Tax Identification Number		57-0965380
Entity Address, Address Line One	6 Logue Court
Entity Address, City or Town	Greenville
Entity Address, State or Province	SC
Entity Address, Postal Zip Code	29615
City Area Code	864
Local Phone Number	288-2432
Title of 12(b) Security		Common Stock, no par value
Trading Symbol		SCSC
Security Exchange Name		NASDAQ
Written Communications		false
Soliciting Material		false
Pre-commencement Tender Offer		false
Pre-commencement Issuer Tender Offer		false
Entity Emerging Growth Company		false
Entity Central Index Key			0000918965
Amendment Flag			false