EX-99.2 3 scscinfographic_q1fy24.htm EX-99.2
Fiscal First Quarter 2024 Earnings Strong cash flow and Intelisys growth are the hallmarks of our first quarter. Our business fundamentals remain strong in a softer revenue environment.” Mike Baur Chairman and CEO, ScanSource, Inc. Key Highlights Net Sales and Gross Profit Reflect Mixed Demand Intelisys Growth Opportunity is Compelling Benefit from Diverse Ecosystem of Partners Net Sales -7% Y/Y $876M Achieved Significant Cash Flow in Q1 © ScanSource 2022 Consolidated Specialty Technology Solutions Segment Gross Profit -6% Y/Y $107M, 12.2% margin Modern Communications & Cloud Segment STS, Net Sales -12% Y/Y $510M MC&C, Net Sales 0% Y/Y $367M STS, Gross Profit -16% Y/Y $49M, 9.7% margin MC&C, Gross Profit +4% Y/Y $57M, 15.6% margin Exhibit 99.2

* Non‐GAAP measure; adjusted ROIC represents return on invested capital For further financial data, non‐GAAP financial disclosures and cautionary language regarding forward‐looking statements, please refer to the following pages and ScanSource’s first quarter fiscal year 2024 news release issued on November 9, 2023, which accompanies this presentation and is available at www.scansource.com in the Investor Relations section. Operating Metrics Focused Execution of Value Creation Strategy Mid-Term Goals Mid-term: 3-to-4-year time frame Fiscal Year 2024 Annual Outlook updated November 9, 2023 $0.61 per share GAAP Diluted EPS -35% Y/Y $94M QTR Operating Cash Flow $91M QTR Free Cash Flow* 11.0% Adjusted ROIC* No Q1 share repurchases 1.2x Net Debt to TTM Adjusted EBITDA © ScanSource 2022 2 A repositioned company – Innovative hybrid distributor Attractive financial profile Delivering long-term sustainable growth Differentiated market position Building on specialized technologies $0.74 per share Non-GAAP Diluted EPS* -31% Y/Y Net Sales At least $3.8 billion Adjusted EBITDA At least $170 million Free Cash Flow At least $200 million Recurring Revenue as % of Gross Profits Adjusted ROIC Adjusted EBITDA Margin Net Sales Growth per year Building to 30%+ Mid Teens4.5%-5%5%-7.5% $34.9M, -23%Y/Y Adjusted EBITDA* 3.98% Adjusted EBITDA Margin*

Forward-Looking Statements This Earnings Infographic and supporting materials contain certain comments that are “forward- looking” statements, including statements about our FY24 outlook, mid-term goals, growth opportunities 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 following factors, which are neither presented in order of importance nor weighted: macroeconomic conditions, including potential prolonged economic weakness, inflation, 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, economic weakness and inflation, risk to our business from a cyberattack, a failure of our IT systems, failure to hire and retain quality employees, loss of our major customers, relationships with our key suppliers and customers or a termination or a modification of the terms under which we operate with these key suppliers and customers, 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, 2023, and subsequent reports on Form 10-Q, filed with the Securities and Exchange Commission. 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 SG&A expenses, adjusted EBITDA, adjusted EBITDA margin, net debt, adjusted ROIC, free cash flow 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 following supporting materials and in the Company’s Form 8-K, filed with the SEC, with the quarterly earnings press release for the period indicated. 3

Consolidated, 5-Quarter Financial Summary ($ in thousands, except per share data) Q1 FY24 Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 Q/Q Y/Y Select reported GAAP measures: Net sales $ 876,305 $ 947,149 $ 885,519 $ 1,011,241 $ 943,813 (7)% (7)% Gross profit $ 106,508 $ 108,659 $ 111,762 $ 115,334 $ 113,485 (2)% (6)% Gross profit margin % 12.2 % 11.5 % 12.6 % 11.4 % 12.0 % 68 bp 13 bp SG&A expenses $ 75,436 $ 74,358 $ 70,669 $ 69,074 $ 71,593 1% 5% Operating income $ 24,084 $ 27,289 $ 34,279 $ 39,432 $ 34,888 (12)% (31)% Operating income margin % 2.75 % 2.88 % 3.87 % 3.90 % 3.70 % (13) bp (95) bp Net income $ 15,432 $ 17,095 $ 21,221 $ 25,734 $ 24,042 (10)% (36)% Diluted EPS $ 0.61 $ 0.68 $ 0.83 $ 1.01 $ 0.94 (10)% (35)% Select reported Non-GAAP measures: (a) Non-GAAP operating income $ 28,478 $ 31,346 $ 38,449 $ 40,724 $ 39,129 (9)% (27)% Non-GAAP operating income margin % 3.25 % 3.31 % 4.34 % 4.03 % 4.15 % (6) bp (90) bp Non-GAAP net income $ 18,728 $ 18,121 $ 24,330 $ 26,941 $ 27,203 3% (31)% Non-GAAP diluted EPS $ 0.74 $ 0.72 $ 0.96 $ 1.06 $ 1.07 3% (31)% Adjusted EBITDA $ 34,919 $ 40,199 $ 45,656 $ 48,815 $ 45,275 (13)% (23)% Adjusted EBITDA margin % 3.98 % 4.24 % 5.16 % 4.83 % 4.80 % (26) bp (81) bp Adjusted ROIC 11.0 % 12.9 % 14.6 % 15.6 % 15.6 % (190) bp (460) bp Operating cash flow (QTR) $ 93,533 $ (15,261) $ 54,837 $ (26,885) $ (48,459) *nm *nm Less: Capital expenditures $ (2,315) $ (3,431) $ (2,286) $ (2,504) $ (684) (33)% 32% Free cash flow (QTR) (Non-GAAP) $ 91,218 $ (18,692) $ 52,551 $ (29,389) $ (49,143) *nm *nm Free cash flow (TTM) (Non-GAAP) $ 95,688 $ (44,673) $ (108,189) $ (131,715) $ (122,299) *nm *nm (a) See pages 11 through 12 for the calculation of non-GAAP measures and reconciliations to GAAP measures. *nm - percentages are not meaningful ScanSource, Inc. Earnings Infographic Q1 FY2024 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 4 November 9, 2023

Specialty Technology Solutions, 5-Quarter Financial Summary ($ in thousands) Q1 FY24 Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 Q/Q Y/Y Net sales $ 509,570 $ 561,501 $ 565,652 $ 627,548 $ 576,329 (9)% (12)% Gross profit $ 49,183 $ 51,440 $ 57,664 $ 56,732 $ 58,404 (4)% (16)% Gross profit margin % 9.7 % 9.2 % 10.2 % 9.0 % 10.1 % 49 bp (48) bp GAAP operating income $ 11,872 $ 14,343 $ 19,811 $ 19,682 $ 21,852 (17)% (46)% GAAP operating income % 2.33 % 2.55 % 3.50 % 3.14 % 3.79 % (22) bp (146) bp Add: Intangible amortization expense $ 1,261 $ 1,261 $ 1,266 $ 1,266 $ 1,341 —% (6)% Non-GAAP operating income $ 13,133 $ 15,604 $ 21,077 $ 20,948 $ 23,193 (16)% (43)% Non-GAAP operating income % 2.58 % 2.78 % 3.73 % 3.34 % 4.02 % (20) bp (145) bp Reconciliation of Operating Income to Adjusted EBITDA GAAP operating income $ 11,872 $ 14,343 $ 19,811 $ 19,682 $ 21,852 (17)% (46)% Plus: Depreciation expense 1,931 1,954 1,862 1,873 1,941 (1)% (1)% Intangible amortization expense 1,261 1,261 1,266 1,266 1,341 —% (6)% Interest income 164 776 354 194 321 (79)% (49)% Other income/(expense), net (132) (40) (54) 71 (125) *nm *nm EBITDA 15,096 18,294 23,239 23,086 25,330 (17)% (40)% Adjustments: Share-based compensation expense 1,512 1,586 1,867 2,203 1,556 (5)% (3)% Adjusted EBITDA (non-GAAP) $ 16,608 $ 19,880 $ 25,106 $ 25,289 $ 26,886 (16)% (38)% Adjusted EBITDA (non-GAAP) % 3.26 % 3.54 % 4.44 % 4.03 % 4.67 % (28) bp (141) bp *nm - percentages are not meaningful ScanSource, Inc. Earnings Infographic Q1 FY2024 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 5 November 9, 2023

Modern Communications & Cloud, 5-Quarter Financial Summary ($ in thousands) Q1 FY24 Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 Q/Q Y/Y Net sales $ 366,735 $ 385,648 $ 319,867 $ 383,693 $ 367,484 (5)% —% Gross profit $ 57,325 $ 57,219 $ 54,098 $ 58,602 $ 55,081 —% 4% Gross profit margin % 15.6 % 14.8 % 16.9 % 15.3 % 15.0 % 80 bp 60 bp GAAP operating income $ 12,413 $ 14,406 $ 14,468 $ 19,750 $ 13,036 (14)% (5)% GAAP operating income % 3.38 % 3.74 % 4.52 % 5.15 % 3.55 % (36) bp (17) bp Add: Intangible amortization expense $ 2,932 $ 2,924 $ 2,904 $ 2,884 $ 2,900 —% 1% Add: Tax recovery(a) $ — $ (128) $ — $ (2,858) $ — *nm *nm Non-GAAP operating income $ 15,345 $ 17,202 $ 17,372 $ 19,776 $ 15,936 (11)% (4)% Non-GAAP operating income % 4.18 % 4.46 % 5.43 % 5.15 % 4.34 % (30) bp (10) bp Reconciliation of Operating Income to Adjusted EBITDA GAAP operating income $ 12,413 $ 14,406 $ 14,468 $ 19,750 $ 13,036 (14)% (5)% Plus: Depreciation expense 1,093 1,117 1,042 1,034 1,046 (2)% 4% Intangible amortization expense 2,932 2,924 2,904 2,884 2,900 —% 1% Interest income 1,161 1,309 1,356 1,834 1,269 (11)% (9)% Other income/(expense), net (549) (309) (307) (280) (623) *nm *nm EBITDA 17,050 19,447 19,463 25,222 17,628 (12)% (3)% Adjustments: Share-based compensation expense 1,258 1,000 1,087 1,161 760 26% 66% Tax recovery(a) — (128) — (2,858) — *nm *nm Adjusted EBITDA (non-GAAP) $ 18,308 $ 20,319 $ 20,550 $ 23,525 $ 18,388 (10)% —% Adjusted EBITDA (non-GAAP) % 4.99 % 5.27 % 6.42 % 6.13 % 5.00 % (28) bp (1) bp (a) Recovery of prior period withholding taxes in Brazil *nm - percentages are not meaningful ScanSource, Inc. Earnings Infographic Q1 FY2024 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 6 November 9, 2023

Net Sales, Constant Currency (Organic Growth) - QTR ($ in thousands) Net Sales by Segment: Q1 FY24 Q1 FY23 % Change Specialty Technology Solutions: Net sales, as reported $ 509,570 $ 576,329 (11.6) % Foreign exchange impact (a) (934) — Net sales, constant currency (non-GAAP) $ 508,636 $ 576,329 (11.7) % Modern Communications & Cloud: Net sales, as reported $ 366,735 $ 367,484 (0.2) % Foreign exchange impact (a) (4,677) — Net sales, constant currency (non-GAAP) $ 362,058 $ 367,484 (1.5) % Consolidated: Net sales, as reported $ 876,305 $ 943,813 (7.2) % Foreign exchange impact (a) (5,611) — Net sales, constant currency (non-GAAP) $ 870,694 $ 943,813 (7.7) % Net Sales by Geography: Q1 FY24 Q1 FY23 % Change United States and Canada: Net sales, as reported $ 791,000 $ 859,538 (8.0) % International: Net sales, as reported $ 85,305 $ 84,275 1.2 % Foreign exchange impact (a) (5,611) — Net sales, constant currency (non-GAAP) $ 79,694 $ 84,275 (5.4) % Consolidated: Net sales, as reported $ 876,305 $ 943,813 (7.2) % Foreign exchange impact (a) (5,611) — Net sales, constant currency (non-GAAP) $ 870,694 $ 943,813 (7.7) % (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 September 30, 2023 into U.S. dollars using the weighted-average foreign exchange rates for the quarter ended September 30, 2022. ScanSource, Inc. Earnings Infographic Q1 FY2024 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 7 November 9, 2023

Average Adjusted Return on Invested Capital - QTR ($ in thousands) Q1 FY24 Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 Adjusted return on invested capital (ROIC), annualized (a) 11.0 % 12.9 % 14.6 % 15.6 % 15.6 % Reconciliation of Net Income to Adjusted EBITDA Net income from continuing operations - GAAP $ 15,432 $ 17,095 $ 21,221 $ 25,734 $ 24,042 Plus: Interest expense 5,585 5,564 5,715 5,060 3,448 Income taxes 3,715 6,367 8,692 10,458 8,241 Depreciation and amortization 7,217 7,255 7,074 7,057 7,228 EBITDA 31,949 36,281 42,702 48,309 42,959 Adjustments: Tax recovery (b) — (128) — (2,858) — Cyberattack restoration costs 201 1,460 — — — Share-based compensation 2,769 2,586 2,954 3,364 2,316 Adjusted EBITDA (numerator for Adjusted ROIC) (non-GAAP) $ 34,919 $ 40,199 $ 45,656 $ 48,815 $ 45,275 Invested Capital Calculation Equity - beginning of the quarter $ 905,298 $ 878,895 $ 862,386 $ 827,004 $ 806,528 Equity - end of quarter 915,253 905,298 878,895 862,386 827,004 Adjustments: Tax recovery, net — (2,100) — (1,886) — Share-based compensation, net 2,068 1,921 2,191 2,496 1,718 Cyberattack restoration costs, net 150 1,092 — — — Discontinued operations net income — (1,717) — — — Average equity 911,385 891,695 871,736 845,000 817,625 Average funded debt (c) 352,897 361,792 398,318 392,853 336,428 Invested capital (denominator for Adjusted ROIC) (non-GAAP) $ 1,264,282 $ 1,253,487 $ 1,270,054 $ 1,237,853 $ 1,154,053 (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) Recovery of prior period withholding taxes in Brazil (c) Average funded debt is calculated as the daily average amounts outstanding on our short-term and long-term interest-bearing debt. ScanSource, Inc. Earnings Infographic Q1 FY2024 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 8 November 9, 2023

Net Debt and Adjusted EBITDA Metrics ($ in thousands) Q1 FY24 Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 Consolidated debt (Q/E) $ 248,108 $ 329,901 $ 311,052 $ 382,796 $ 326,435 Less: Cash and cash equivalents of continuing operations (Q/E) (42,647) (36,178) (37,374) (66,445) (40,472) Net debt (Q/E) $ 205,461 $ 293,723 $ 273,678 $ 316,351 $ 285,963 Reconciliation of Net Income to Adjusted EBITDA Net income from continuing operations - GAAP $ 15,432 $ 17,095 $ 21,221 $ 25,734 $ 24,042 Plus: Interest expense 5,585 5,564 5,715 5,060 3,448 Income taxes 3,715 6,367 8,692 10,458 8,241 Depreciation and amortization 7,217 7,255 7,074 7,057 7,228 EBITDA 31,949 36,281 42,702 48,309 42,959 Adjustments: Tax recovery (a) — (128) — (2,858) — Cyberattack restoration costs 201 1,460 — — — Share-based compensation 2,769 2,586 2,954 3,364 2,316 Adjusted EBITDA (non-GAAP) $ 34,919 $ 40,199 $ 45,656 $ 48,815 $ 45,275 Adjusted EBITDA, TTM (b) $ 169,589 $ 179,945 $ 178,418 $ 176,877 $ 170,604 Net Debt / Adjusted EBITDA, TTM (b) 1.2 x 1.6 x 1.5 x 1.8 x 1.7 x (a) Recovery of prior period withholding taxes in Brazil (b) Adjusted EBITDA for the trailing 12-month period ScanSource, Inc. Earnings Infographic Q1 FY2024 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 9 November 9, 2023

Working Capital, 5-Quarter Summary ($ in thousands) Q1 FY24 Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 Accounts Receivable (Q/E) $ 691,669 $ 753,236 $ 684,458 $ 779,562 $ 744,946 Days sales outstanding in receivables 71 72 70 69 71 Inventory (Q/E) $ 656,170 $ 757,574 $ 752,763 $ 761,936 $ 675,798 Inventory turns 4.4 4.4 4.1 5.0 5.1 Accounts payable (Q/E) $ 617,594 $ 691,119 $ 656,688 $ 748,662 $ 710,919 Paid for inventory days* 16.8 17.5 22.7 10.9 7.2 Working Capital (Q/E) (AR+INV-AP) $ 730,245 $ 819,691 $ 780,533 $ 792,836 $ 709,825 Cash conversion cycle 88 90 93 80 78 *Paid for inventory days represent Q/E inventory days less Q/E accounts payable days ScanSource, Inc. Earnings Infographic Q1 FY2024 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 10 November 9, 2023

Operating Income, Net Income & EPS - QTR ($ in thousands) Quarter ended September 30, 2023 Reported GAAP measure Intangible amortization expense Tax recovery, net Cyberattack restoration costs Non-GAAP measure SG&A expenses $75,436 — — $(201) $75,235 Operating income 24,084 4,193 — 201 28,478 Net income 15,432 3,146 — 150 18,728 Diluted EPS $0.61 $0.12 — $0.01 $0.74 ($ in thousands) Quarter ended June 30, 2023 Reported GAAP measure Intangible amortization expense Tax recovery, net Cyberattack restoration costs Non-GAAP measure SG&A expenses $74,358 — $128 $— $74,486 Operating income 27,289 4,185 (128) — 31,346 Net income 17,095 3,126 (2,100) — 18,121 Diluted EPS $0.68 $0.12 $(0.08) $— $0.72 ScanSource, Inc. Earnings Infographic Q1 FY2024 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 11 November 9, 2023

Operating Income, Net Income & EPS - QTR, continued ($ in thousands) Quarter ended March 31, 2023 Reported GAAP measure Intangible amortization expense Tax recovery, net Cyberattack restoration costs Non-GAAP measure SG&A expenses $70,669 — — — $70,669 Operating income 34,279 4,170 — — 38,449 Net income 21,221 3,109 — — 24,330 Diluted EPS $0.83 $0.12 — — $0.96 ($ in thousands) Quarter ended December 31, 2022 Reported GAAP measure Intangible amortization expense Tax recovery, net Cyberattack restoration costs Non-GAAP measure SG&A expenses $69,074 — $2,858 — $71,932 Operating income 39,432 4,150 (2,858) — 40,724 Net income 25,734 3,093 (1,886) — 26,941 Diluted EPS $1.01 $0.12 $(0.07) — $1.06 ($ in thousands) Quarter ended September 30, 2022 Reported GAAP measure Intangible amortization expense Tax recovery, net Cyberattack restoration costs Non-GAAP measure SG&A expenses $71,593 — — — $71,593 Operating income 34,888 4,241 — — 39,129 Net income 24,042 3,161 — — 27,203 Diluted EPS $0.94 $0.12 — — $1.07 ScanSource, Inc. Earnings Infographic Q1 FY2024 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 12 November 9, 2023

FY24 Annual Financial Outlook Reconciliation FY 24 Outlook GAAP operating income At least $126 million Intangible amortization $17 million Depreciation expense $12 million Share-based compensation expense $12 million Interest income and income (expense), net $3 million Adjusted EBITDA (non-GAAP) At least $170 million GAAP operating cash flow At least $210 million Less: Capital expenditures $10 million Free cash flow (non-GAAP) At least $200 million ScanSource, Inc. Earnings Infographic Q1 FY2024 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 13 November 9, 2023