EX-99.2 4 scansourceearningsinfogr.htm EX-99.2
Fiscal Third Quarter 2024 Earnings While hardware sales were lower than we expected, our resilient business model delivered strong margins and robust free cash flow. Our strong balance sheet gives us the capacity and flexibility to execute our disciplined capital allocation plans.” Mike Baur Chair and CEO, ScanSource, Inc. Key Highlights Softer Demand Across Technologies Agency Channel Opportunity is Compelling Strong Margins Reflect Strength of Business Fundamentals Net Sales -15% Y/Y $753M Achieved Strong Cash Flow in Q3 and YTD © ScanSource 2024 Consolidated Specialty Technology Solutions Segment Gross Profit -15% Y/Y $94M, 12.6% margin Modern Communications & Cloud Segment STS, Net Sales -14% Y/Y $484M MC&C, Net Sales -16% Y/Y $269M STS, Gross Profit -22% Y/Y $45M, 9.3% margin MC&C, Gross Profit -9% Y/Y $49M, 18.4% margin

* Non-GAAP measure; adjusted ROIC represents return on invested capital ** Accelerate organic growth with strategic acquisitions For further financial data, non-GAAP financial disclosures and cautionary language regarding forward-looking statements, please refer to the following pages and ScanSource’s third quarter fiscal year 2024 news release issued on May 7, 2024, which accompanies this presentation and is available at www.scansource.com in the Investor Relations section. Third Quarter Operating Metrics Mid-Term Goals Mid-term: 3-to-4-year time frame Fiscal Year 2024 Annual Outlook updated May 7, 2024 $.50 per share GAAP Diluted EPS -40% Y/Y $160M QTR Operating Cash Flow $158M QTR Free Cash Flow* 12.1% Adjusted ROIC* $20M in Q3 share repurchases -0.1x Net Debt to TTM Adjusted EBITDA* © ScanSource 2024 2 $0.69 per share Non-GAAP Diluted EPS* -28% Y/Y Net Sales At least $3.3 billion Adjusted EBITDA* At least $140 million Free Cash Flow* At least $275 million Net Sales Growth per year Adjusted EBITDA Margin* Adjusted ROIC* Recurring Revenue as % of Gross Profits 5%-7.5% 4.5%-5% Mid Teens Building to 30%+** $33.1M, -28%Y/Y Adjusted EBITDA* 4.40% Adjusted EBITDA Margin* Focus on Working Capital Efficiency Improvements

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 in constant currency excluding acquisitions and divestitures (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. ScanSource discloses forward-looking information that is not presented in accordance with GAAP with respect to adjusted EBITDA margin and adjusted ROIC. ScanSource believes that a quantitative reconciliation of such forward-looking information to the most directly comparable GAAP financial measure cannot be made without unreasonable efforts, because a reconciliation of these non-GAAP financial measures would require an estimate of future non-operating items such as acquisitions and divestitures, restructuring costs, impairment charges and other unusual or non-recurring items. Neither the timing nor likelihood of these events, nor their probable significance, can be quantified with a reasonable degree of accuracy. Accordingly, a reconciliation of such forward-looking information to the most directly comparable GAAP financial measure is not provided. 3

Consolidated, 5-Quarter Financial Summary ($ in thousands, except per share data) Q3 FY24 Q2 FY24 Q1 FY24 Q4 FY23 Q3 FY23 Q/Q Y/Y Select reported GAAP measures: Net sales $ 752,599 $ 884,792 $ 876,305 $ 947,149 $ 885,519 (15)% (15)% Gross profit $ 94,481 $ 100,748 $ 106,508 $ 108,659 $ 111,762 (6)% (15)% Gross profit margin % 12.6 % 11.4 % 12.2 % 11.5 % 12.6 % 117 bp (7) bp SG&A expenses $ 66,574 $ 66,921 $ 75,436 $ 74,358 $ 70,669 (1)% (6)% Operating income $ 17,542 $ 26,826 $ 24,084 $ 27,289 $ 34,279 (35)% (49)% Operating income margin % 2.33 % 3.03 % 2.75 % 2.88 % 3.87 % (70) bp (154) bp Net income $ 12,806 $ 32,726 $ 15,432 $ 17,095 $ 21,221 (61)% (40)% Diluted EPS $ 0.50 $ 1.29 $ 0.61 $ 0.68 $ 0.83 (61)% (40)% Select reported Non-GAAP measures: (a) Non-GAAP operating income $ 25,306 $ 30,621 $ 28,478 $ 32,806 $ 38,449 (17)% (34)% Non-GAAP operating income margin % 3.36 % 3.46 % 3.25 % 3.46 % 4.34 % (10) bp (98) bp Non-GAAP net income $ 17,461 $ 21,587 $ 18,728 $ 19,213 $ 24,330 (19)% (28)% Non-GAAP diluted EPS $ 0.69 $ 0.85 $ 0.74 $ 0.76 $ 0.96 (19)% (28)% Adjusted EBITDA $ 33,095 $ 38,459 $ 34,919 $ 40,199 $ 45,656 (14)% (28)% Adjusted EBITDA margin % 4.40 % 4.35 % 3.98 % 4.24 % 5.16 % 5 bp (76) bp Adjusted ROIC 12.1 % 13.2 % 11.1 % 12.9 % 14.6 % (110) bp (250) bp Operating cash flow (QTR) $ 160,152 $ 63,224 $ 93,533 $ 54,837 $ 54,837 Less: Capital expenditures $ (2,420) $ (2,549) $ (2,315) $ (3,431) $ (2,286) Free cash flow (QTR) (Non-GAAP) $ 157,732 $ 60,675 $ 91,218 $ 51,406 $ 52,551 Free cash flow (TTM) (Non-GAAP) $ 361,031 $ 255,850 $ 95,688 $ (44,673) $ (108,189) (a) See pages 11 through 12 for the calculation of non-GAAP measures and reconciliations to GAAP measures. ScanSource, Inc. Earnings Infographic Q3 FY2024 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 4 May 7, 2024

Specialty Technology Solutions, 5-Quarter Financial Summary ($ in thousands) Q3 FY24 Q2 FY24 Q1 FY24 Q4 FY23 Q3 FY23 Q/Q Y/Y Net sales $ 483,704 $ 520,651 $ 509,570 $ 561,501 $ 565,652 (7)% (14)% Gross profit $ 45,077 $ 47,133 $ 49,183 $ 51,440 $ 57,664 (4)% (22)% Gross profit margin % 9.3 % 9.1 % 9.7 % 9.2 % 10.2 % 27 bp (88) bp GAAP operating income $ 9,080 $ 13,368 $ 11,872 $ 14,343 $ 19,811 (32)% (54)% GAAP operating income % 1.88 % 2.57 % 2.33 % 2.55 % 3.50 % (69) bp (163) bp Add: Intangible amortization expense $ 1,261 $ 1,261 $ 1,261 $ 1,261 $ 1,266 Non-GAAP operating income $ 10,341 $ 14,629 $ 13,133 $ 15,604 $ 21,077 (29)% (51)% Non-GAAP operating income % 2.14 % 2.81 % 2.58 % 2.78 % 3.73 % (67) bp (159) bp Reconciliation of Operating Income to Adjusted EBITDA GAAP operating income $ 9,080 $ 13,368 $ 11,872 $ 14,343 $ 19,811 (32)% (54)% Plus: Depreciation expense 1,953 2,144 1,931 1,954 1,862 Intangible amortization expense 1,261 1,261 1,261 1,261 1,266 Interest income 1,096 709 164 776 354 Other income/(expense), net (57) 135 (132) (40) (54) EBITDA 13,333 17,617 15,096 18,294 23,239 (24)% (43)% Adjustments: Share-based compensation expense 1,421 1,657 1,512 1,586 1,867 (14)% (24)% Adjusted EBITDA (non-GAAP) $ 14,754 $ 19,274 $ 16,608 $ 19,880 $ 25,106 (23)% (41)% Adjusted EBITDA (non-GAAP) % 3.05 % 3.70 % 3.26 % 3.54 % 4.44 % (65) bp (139) bp ScanSource, Inc. Earnings Infographic Q3 FY2024 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 5 May 7, 2024

Modern Communications & Cloud, 5-Quarter Financial Summary ($ in thousands) Q3 FY24 Q2 FY24 Q1 FY24 Q4 FY23 Q3 FY23 Q/Q Y/Y Net sales $ 268,895 $ 364,141 $ 366,735 $ 385,648 $ 319,867 (26)% (16)% Gross profit $ 49,404 $ 53,615 $ 57,235 $ 57,219 $ 54,098 (8)% (9)% Gross profit margin % 18.4 % 14.7 % 15.6 % 14.8 % 16.9 % 370 bp 150 bp GAAP operating income $ 12,989 $ 14,602 $ 12,413 $ 14,406 $ 14,468 (11)% (10)% GAAP operating income % 4.83 % 4.01 % 3.38 % 3.74 % 4.52 % 82 bp 31 bp Add: Intangible amortization expense $ 2,491 $ 2,776 $ 2,932 $ 2,924 $ 2,904 Add: Tax recovery(a) $ (515) $ (1,386) $ — $ (128) $ — Non-GAAP operating income $ 14,965 $ 15,992 $ 15,345 $ 17,202 $ 17,372 (6)% (14)% Non-GAAP operating income % 5.57 % 4.39 % 4.18 % 4.46 % 5.43 % 120 bp 20 bp Reconciliation of Operating Income to Adjusted EBITDA GAAP operating income $ 12,989 $ 14,602 $ 12,413 $ 14,406 $ 14,468 (11)% (10)% Plus: Depreciation expense 1,037 1,077 1,093 1,117 1,042 Intangible amortization expense 2,491 2,776 2,932 2,924 2,904 Interest income 1,557 1,409 1,161 1,309 1,356 Other income/(expense), net (402) 14,325 (549) (309) (307) EBITDA 17,672 34,189 17,050 19,447 19,463 (48)% (9)% Adjustments: Share-based compensation expense 968 914 1,258 1,000 1,087 Tax recovery(a) (515) (1,386) — (128) — Gain on disposal of a business 219 (14,533) — — — Adjusted EBITDA (non-GAAP) $ 18,344 $ 19,184 $ 18,308 $ 20,319 $ 20,550 (4)% (11)% Adjusted EBITDA (non-GAAP) % 6.82 % 5.27 % 4.99 % 5.27 % 6.42 % 155 bp 40 bp (a) Recovery of prior period withholding taxes in Brazil ScanSource, Inc. Earnings Infographic Q3 FY2024 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 6 May 7, 2024

Net Sales, Constant Currency Excluding Acquisitions and Divestitures (Organic Growth) - QTR ($ in thousands) Net Sales by Segment: Q3 FY24 Q3 FY23 % Change Specialty Technology Solutions: Net sales, as reported $ 483,704 $ 565,652 (14.5) % Foreign exchange impact (a) (620) — Net sales, constant currency excluding divestitures (non-GAAP) $ 483,084 $ 565,652 (14.6) % Modern Communications & Cloud: Net sales, as reported $ 268,895 $ 319,867 (15.9) % Foreign exchange impact (a) (3,177) — Less: Divestitures — (2,530) Net sales, constant currency excluding divestitures (non-GAAP) $ 265,718 $ 317,337 (16.3) % Consolidated: Net sales, as reported $ 752,599 $ 885,519 (15.0) % Foreign exchange impact (a) (3,797) — Less: Divestitures — (2,530) Net sales, constant currency excluding divestitures (non-GAAP) $ 748,802 $ 882,989 (15.2) % Net Sales by Geography: Q3 FY24 Q3 FY23 % Change United States and Canada: Net sales, as reported $ 671,246 $ 808,797 (17.0) % International: Net sales, as reported $ 81,353 $ 76,722 6.0 % Foreign exchange impact (a) (3,797) — Less: Divestitures $ — $ (2,530) Net sales, constant currency excluding divestitures (non-GAAP) $ 77,556 $ 74,192 4.5 % Consolidated: Net sales, as reported $ 752,599 $ 885,519 (15.0) % Foreign exchange impact (a) (3,797) — Less: Divestitures $ — $ (2,530) Net sales, constant currency excluding divestitures (non-GAAP) $ 748,802 $ 882,989 (15.2) % (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, 2024 into U.S. dollars using the weighted-average foreign exchange rates for the quarter ended March 31, 2023. ScanSource, Inc. Earnings Infographic Q3 FY2024 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 7 May 7, 2024

Average Adjusted Return on Invested Capital - QTR ($ in thousands) Q3 FY24 Q2 FY24 Q1 FY24 Q4 FY23 Q3 FY23 Adjusted return on invested capital (ROIC), annualized (a) 12.1 % 13.2 % 11.0 % 12.9 % 14.6 % Reconciliation of Net Income to Adjusted EBITDA Net income from continuing operations - GAAP $ 12,806 $ 32,726 $ 15,432 $ 17,095 $ 21,221 Plus: Interest expense 2,001 3,359 5,585 5,564 5,715 Income taxes 5,146 7,320 3,715 6,367 8,692 Depreciation and amortization 6,742 7,258 7,217 7,255 7,074 EBITDA 26,695 50,663 31,949 36,281 42,702 Adjustments: Tax recovery (b) (515) (1,386) — (128) — Divestiture costs 511 703 — — — Restructuring costs 3,923 — — — — Cyberattack restoration costs 93 441 201 1,460 — Share-based compensation 2,388 2,571 2,769 2,586 2,954 Gain on sale of business — (14,533) — — — Adjusted EBITDA (numerator for Adjusted ROIC) (non-GAAP) $ 33,095 $ 38,459 $ 34,919 $ 40,199 $ 45,656 Invested Capital Calculation Equity - beginning of the quarter $ 953,601 $ 915,253 $ 905,298 $ 878,895 $ 862,386 Equity - end of quarter 944,051 953,601 915,253 905,298 878,895 Adjustments: Tax recovery, net (1,648) (640) — (2,100) — Share-based compensation, net 1,784 1,919 2,068 1,921 2,191 Acquisition and divestiture costs 511 703 — — — Restructuring, net of tax 2,935 — — — — Cyberattack restoration costs, net 69 329 150 1,092 — Gain on sale of business — (14,533) — — Discontinued operations net income — — — (1,717) — Average equity 950,652 928,316 911,385 891,695 871,736 Average funded debt (c) 153,131 227,688 352,897 361,792 398,318 Invested capital (denominator for Adjusted ROIC) (non-GAAP) $ 1,103,783 $ 1,156,004 $ 1,264,282 $ 1,253,487 $ 1,270,054 (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 Q3 FY2024 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 8 May 7, 2024

Net Debt and Adjusted EBITDA Metrics ($ in thousands) Q3 FY24 Q2 FY24 Q1 FY24 Q4 FY23 Q3 FY23 Consolidated debt (Q/E) $ 145,881 $ 168,634 $ 248,108 $ 329,901 $ 311,052 Less: Cash and cash equivalents of continuing operations (Q/E) (159,050) (44,987) (42,647) (36,178) (37,374) Net debt (Q/E) $ (13,169) $ 123,647 $ 205,461 $ 293,723 $ 273,678 Reconciliation of Net Income to Adjusted EBITDA Net income from continuing operations - GAAP $ 12,806 $ 32,726 $ 15,432 $ 17,095 $ 21,221 Plus: Interest expense 2,001 3,359 5,585 5,564 5,715 Income taxes 5,146 7,320 3,715 6,367 8,692 Depreciation and amortization 6,742 7,258 7,217 7,255 7,074 EBITDA 26,695 50,663 31,949 36,281 42,702 Adjustments: Acquisition and divestiture costs 511 703 — — — Tax recovery (a) (515) (1,386) — (128) — Cyberattack restoration costs 93 441 201 1,460 — Share-based compensation 2,388 2,571 2,769 2,586 2,954 Gain on sale of business — (14,533) — — — Restructuring costs 3,923 — — — — Adjusted EBITDA (non-GAAP) $ 33,095 $ 38,459 $ 34,919 $ 40,199 $ 45,656 Adjusted EBITDA, TTM (b) $ 146,672 $ 159,233 $ 169,589 $ 179,945 $ 178,418 Net Debt / Adjusted EBITDA, TTM (0.1) x 0.8 x 1.2 x 1.6 x 1.5 x (a) Recovery of prior period withholding taxes in Brazil (b) Adjusted EBITDA for the trailing 12-month period ScanSource, Inc. Earnings Infographic Q3 FY2024 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 9 May 7, 2024

Working Capital, 5-Quarter Summary ($ in thousands) Q3 FY24 Q2 FY24 Q1 FY24 Q4 FY23 Q3 FY23 Accounts Receivable (Q/E) $ 589,847 $ 662,799 $ 691,669 $ 753,236 $ 684,458 Days sales outstanding in receivables 71 68 71 72 70 Inventory (Q/E) $ 529,163 $ 575,137 $ 656,170 $ 757,574 $ 752,763 Inventory turns 4.8 5.1 4.4 4.4 4.1 Accounts payable (Q/E) $ 555,733 $ 540,642 $ 617,594 $ 691,119 $ 656,688 Paid for inventory days* 11.2 15.7 16.8 17.5 22.7 Working Capital (Q/E) (AR+INV-AP) $ 563,277 $ 697,294 $ 730,245 $ 819,691 $ 780,533 Cash conversion cycle 82 84 88 90 93 *Paid for inventory days represent Q/E inventory days less Q/E accounts payable days ScanSource, Inc. Earnings Infographic Q3 FY2024 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 10 May 7, 2024

Operating Income, Net Income & EPS - QTR ($ in thousands) Quarter ended March 31, 2024 Reported GAAP measure Intangible amortization expense Acquisition & divestiture costs Restructuring costs Tax recovery, net Gain on sale of business Cyberattack restoration costs Non-GAAP measure SG&A expenses $66,574 $— $(511) $(3,923) $515 $— $(93) $62,562 Operating income 17,542 3,752 511 3,923 (515) — 93 25,306 Pre-tax income 17,952 3,752 511 3,923 (515) — 93 25,716 Net income 12,806 2,788 511 2,935 (1,648) — 69 17,461 Diluted EPS $0.50 $0.11 $0.02 $0.12 $(0.06) $— $— $0.69 ($ in thousands) Quarter ended December 31, 2023 Reported GAAP measure Intangible amortization expense Acquisition & divestiture costs Tax recovery, net Gain on sale of business (a) Cyberattack restoration costs Non-GAAP measure SG&A expenses $66,921 $— $(703) $— $1,386 $— $(441) $67,163 Operating income 26,826 4,037 703 — (1,386) — 441 30,621 Pre-tax income 40,046 4,037 — — (1,386) (14,533) 441 29,308 Net income 32,726 3,002 703 — (640) (14,533) 329 21,587 Diluted EPS $1.29 $0.12 $0.03 $— $(0.03) $(0.57) $(0.01) $0.85 (a) Reflects gain on the sale of the UK-based intY business. This transaction resulted in a capital loss for tax purposes. ScanSource did not record a tax provision on the capital loss since there were no offsetting capital gains. ScanSource, Inc. Earnings Infographic Q3 FY2024 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 11 May 7, 2024

Operating Income, Net Income & EPS - QTR, continued ($ in thousands) Quarter ended September 30, 2023 Reported GAAP measure Intangible amortization expense Acquisition & divestiture costs Restructuring costs Tax recovery, net Gain on sale of business Cyberattack restoration costs Non-GAAP measure SG&A expenses $75,436 $— $— $— $— $— $(201) $75,235 Operating income 24,084 4,193 — — — — 201 28,478 Pre-tax income 19,147 4,193 — — — — 201 23,541 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 Acquisition & divestiture costs Restructuring costs Tax recovery, net Gain on sale of business Cyberattack restoration costs Non-GAAP measure SG&A expenses $74,358 $— $— $— $128 $— $(1,460) $73,026 Operating income 27,289 4,185 — — (128) — 1,460 32,806 Pre-tax income 23,462 4,185 — — — — — 28,979 Net income 17,095 3,126 — — (2,100) — 1,092 19,213 Diluted EPS $0.68 $0.12 $— $— $(0.08) $— $0.04 $0.76 ScanSource, Inc. Earnings Infographic Q3 FY2024 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 12 May 7, 2024

($ in thousands) Quarter ended March 31, 2023 Reported GAAP measure Intangible amortization expense Acquisition & divestiture costs Restructuring costs Tax recovery, net Gain on sale of business Cyberattack restoration costs Non-GAAP measure SG&A expenses $70,669 $— $— $— $— $— $— $70,669 Operating income 34,279 4,170 — — — — — 38,449 Pre-tax income 29,913 4,170 — — — — — 34,083 Net income 21,221 3,109 — — — — — 24,330 Diluted EPS $0.83 $0.12 $— $— $— $— $— $0.96 ScanSource, Inc. Earnings Infographic Q3 FY2024 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 13 May 7, 2024

FY24 Annual Financial Outlook Reconciliation FY 24 Outlook GAAP operating income At least $96 million Intangible amortization $16 million Depreciation expense $12 million Share-based compensation expense $10 million Interest income and income (expense), net $6 million Adjusted EBITDA (non-GAAP) At least $140 million GAAP operating cash flow At least $285 million Less: Capital expenditures $10 million Free cash flow (non-GAAP) At least $275 million ScanSource, Inc. Earnings Infographic Q3 FY2024 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 14 May 7, 2024