Cash conversion remains highly volatile, evidenced by an OCF/NI ratio that swung from -0.36 in 2025Q2 to 12.51 in 2024Q3, even as management deployed $32.7M toward share repurchases in 2026Q3.
| Metric | TTM | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 | Jun'18 | Jun'17 | Jun'16 | Jun'15 | Jun'14 | Jun'13 | Jun'12 | Jun'11 | Jun'10 | Jun'09 | Jun'08 | Jun'07 | Jun'06 | Jun'05 | Jun'04 | Jun'03 | Jun'02 | Jun'01 | Jun'00 | Jun'99 | Jun'98 | Jun'97 | Jun'96 |
|---|
| Cash from Operations | 133.05M | 112.35M | 371.65M | -35.77M | -124.35M | 140.94M | 226.27M | -27.13M | 27.87M | 94.88M | 52.21M | 75.52M | 47.72M | 129.44M | 59.96M | 10.69M | -78.16M | 143.25M | 62.89M | -25.95M | 12.53M | 13.85M | -16.42M | 31.45M | 1.84M | 19.58M | -24.02M | 20.7M | -21M | -200K | -8.3M |
| Operating CF Margin % | - | 3.69% | 11.4% | -0.94% | -3.52% | 4.47% | 7.42% | -0.7% | 0.72% | 2.66% | 1.47% | 2.35% | 1.64% | 4.5% | 1.99% | 0.4% | -3.7% | 7.75% | 2.89% | -1.31% | 0.75% | 0.94% | -1.38% | 3.17% | 0.22% | 3.1% | -4.83% | 6.95% | -11.49% | -0.21% | -14.9% |
| Operating CF Growth % | 472.15% | -69.77% | 1139.02% | 71.24% | -188.23% | -37.71% | 934.12% | -197.33% | -70.62% | 81.72% | -30.87% | 58.25% | -63.13% | 115.89% | 460.98% | 113.67% | -154.56% | 127.78% | 342.37% | -307.16% | -9.55% | 184.32% | -152.22% | 1604.72% | -90.58% | 181.53% | -216.02% | 198.57% | -10400% | 97.59% | -361.11% |
| Net Income | 73.35M | 71.55M | 77.06M | 88.09M | 88.7M | 45.39M | -79.23M | 57.6M | 33.15M | 69.25M | 63.62M | 65.42M | 81.79M | 34.66M | 74.29M | 73.52M | 48.81M | 47.69M | 55.63M | 42.63M | 40.11M | 35.73M | 29.98M | 22.57M | 19.94M | 16.46M | 13.79M | 7.5M | 4.8M | 2.5M | 1.9M |
| Depreciation & Amortization | 24.94M | 30.2M | 28.01M | 28.61M | 29.88M | 33.51M | 35.33M | 36.62M | 37.49M | 24.97M | 17.15M | 12M | 7.38M | 8.46M | 9.92M | 6.66M | 6.06M | 6.78M | 7.13M | 6.93M | 5.77M | 5.5M | 5.35M | 5.02M | 4.66M | 4.43M | 2.68M | 1.2M | 900K | 500K | 300K |
| Stock-Based Compensation | 9.21M | 11.06M | 9.54M | 11.22M | 11.66M | 8.04M | 5.48M | 6.12M | 6.46M | 6.6M | 7.09M | 6.52M | 5.25M | 5.62M | 6.84M | 4.88M | 6.07M | 4.74M | 4.9M | 0 | 505K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -2.42M | 1.13M | -2.47M | -1.5M | 5.74M | 2.92M | -12.19M | -2.9M | -22.29M | -1.86M | 1.85M | 3.92M | 8.61M | -19.63M | -6.38M | -1.43M | -4.66M | 1.76M | -94K | 992K | -5.75M | -1.84M | -51K | 2.22M | 237K | -1.19M | -3.65M | -2.8M | -800K | -500K | -300K |
| Other Non-Cash Items | 12.49M | 10.72M | -5.35M | 3.41M | 1.97M | 20.11M | 170.72M | 7.64M | 44.44M | 14.31M | 9.06M | 3.7M | 8.21M | 60.44M | 5.53M | 7.29M | 10.63M | 5.05M | 6.34M | 10.68M | 4.81M | 4.83M | 5.94M | 7.96M | 7.28M | -1.6M | -2.98M | 100K | 0 | -100K | 100K |
| Working Capital Changes | 15.48M | -12.31M | 264.86M | -165.6M | -262.3M | 30.98M | 106.16M | -132.21M | -71.39M | -18.39M | -46.56M | -16.03M | -63.51M | 39.89M | -30.25M | -80.23M | -145.07M | 77.23M | -11.02M | -87.23M | -32.91M | -30.38M | -57.65M | -6.33M | -30.27M | 1.48M | -33.85M | 14.7M | -25.9M | -2.6M | -10.1M |
| Change in Receivables | -61.12M | -55.01M | 138.26M | -17.37M | -165.94M | -118.86M | 57.48M | -12.6M | -46.77M | -66.13M | 14.17M | -14.48M | -31.86M | 13.75M | -36.67M | -77.31M | -79.14M | 54.19M | 0 | 0 | 4.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -6.97M | 28.87M | 239.16M | -138.31M | -145.96M | -12.3M | 86.18M | -104.59M | -59.5M | 28.45M | 3M | -37.7M | -99.21M | 86.82M | -27.04M | -79.65M | -133.49M | 58.93M | 85K | -21.14M | -63.6M | 5.96M | -30.09M | 31.41M | -11.38M | -43.87M | -51.37M | -18.8M | -7.5M | -3.2M | -11.2M |
| Change in Payables | 98.96M | 3.67M | -78.17M | -30.66M | 82.97M | 175.12M | -20.85M | -2.73M | 44.46M | 19.86M | -71.71M | 28.28M | 57.53M | -56.84M | 28.31M | 78.3M | 57.98M | -32.27M | 0 | 0 | 21.47M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -27.51M | -62.39M | 9.04M | -8.26M | -3.72M | 31.93M | -55.38M | -39.38M | -151.93M | -96.24M | -73.56M | -80.54M | -11.23M | -4.83M | -12.79M | -51.1M | -15.6M | -2.5M | -11.41M | -55.13M | -10.78M | -9.39M | -3.02M | -6.88M | -28.98M | -24.89M | -13.58M | -2.1M | -4.7M | -1.1M | -900K |
| Capital Expenditures | -9.29M | -8.29M | -8.55M | -9.98M | -6.85M | -2.36M | -6.39M | -7.21M | -8.16M | -12.43M | -12.08M | -20.76M | -11.23M | -4.83M | -12.79M | -14.87M | -5.61M | -3.65M | -6.98M | -4.54M | -9.43M | -4.09M | -2.48M | -6.32M | -8.52M | -7.62M | -13.47M | -2.1M | -3.5M | -1M | -700K |
| CapEx % of Revenue | 0.3% | 0.27% | 0.26% | 0.26% | 0.19% | 0.07% | 0.21% | 0.19% | 0.21% | 0.35% | 0.34% | 0.65% | 0.39% | 0.17% | 0.42% | 0.56% | 0.27% | 0.2% | 0.32% | 0.23% | 0.57% | 0.28% | 0.21% | 0.64% | 1.01% | 1.21% | 2.71% | 0.71% | 1.91% | 1.06% | 1.26% |
| Acquisitions | -18.22M | -54.1M | 17.6M | 1.72M | 3.13M | 34.36M | -48.92M | -32.16M | -143.77M | -83.8M | -61.48M | -59.78M | 0 | 0 | 0 | -36.23M | -9.99M | 0 | -10.53M | -50.59M | -1.35M | -5.3M | -540K | -561K | -20.46M | -17.27M | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | -58K | -77K | -1.42M | -1.16M | -3.58M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.16M | 6.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -110K | 0 | -1.2M | -100K | -200K |
| Cash from Financing | -134.51M | -110.91M | -227.77M | 39.53M | 108.11M | -148.32M | -156.61M | 64.23M | 97.51M | -3.51M | -36.3M | -56.89M | 9.29M | -4.98M | -42.29M | 33.66M | 1.32M | -28.23M | -38.58M | 78.99M | -6.47M | 3.02M | 17.86M | -23.01M | 27.81M | 1.29M | 26.92M | -3.4M | 25.3M | 1.3M | 9M |
| Debt Issued (Net) | -38.41M | -9M | -186.81M | 58.14M | 126.76M | -76.85M | -110.53M | 77.4M | 151.54M | 20.2M | 68.41M | -33.51M | 0 | -5.07M | -48.29M | 27.08M | 0 | -31.85M | -47.18M | 75.9M | -10.8M | 880K | 13.59M | -28M | 25.55M | -178K | 24.89M | -4.9M | -1.1M | 1.6M | 2.6M |
| Equity Issued (Net) | -96.63M | -106.52M | -42.9M | -18.11M | -20.96M | -1.04M | -7.43M | -9.48M | 2.27M | -22.64M | -101.75M | -18.77M | 0 | 0 | 7.64M | 0 | 0 | 2.08M | 8.24M | 1.13M | 2.67M | 2.13M | 4.27M | 4.99M | 2.27M | 1.47M | 2.03M | 0 | 26.4M | 0 | 6.5M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -96.65M | -106.52M | -42.9M | -15.65M | -18.2M | -1.04M | -6.08M | -9.48M | -1.64M | -20.88M | -100.21M | -18.77M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -900K |
| Other Financing | 535K | 4.62M | 1.94M | -497K | 2.3M | -70.44M | -38.65M | -3.68M | -56.3M | -1.06M | -2.96M | -4.62M | 9.29M | 96K | -1.64M | 6.58M | 1.32M | 1.55M | 364K | 1.97M | 1.66M | 0 | 0 | 0 | 0 | 0 | 0 | 1.5M | 0 | -300K | -100K |
| Net Change in Cash | -25.99M | -59.3M | 149.28M | -1.81M | -24.73M | 28.26M | 10.64M | -1.71M | -30.56M | -5.31M | -60.25M | -73.2M | 46.69M | 118.99M | 426K | -5.86M | -93.06M | 112.44M | 13.36M | -1.97M | -4.78M | 7.56M | -1.52M | 1.27M | 1M | -4.02M | -10.67M | 15.2M | 25.3M | 0 | 9M |
| Free Cash Flow | 123.76M | 104.06M | 363.09M | -45.75M | -131.2M | 138.58M | 219.88M | -34.34M | 19.71M | 82.44M | 40.13M | 54.76M | 36.49M | 124.61M | 47.17M | -4.18M | -83.77M | 139.59M | 55.91M | -30.49M | 3.09M | 9.76M | -18.91M | 25.13M | -6.67M | 11.96M | -37.48M | 18.6M | -24.5M | -1.2M | -9M |
| FCF Margin % | 4.01% | 3.42% | 11.14% | -1.21% | -3.72% | 4.4% | 7.21% | -0.89% | 0.51% | 2.31% | 1.13% | 1.7% | 1.25% | 4.33% | 1.56% | -0.16% | -3.96% | 7.55% | 2.57% | -1.53% | 0.19% | 0.66% | -1.59% | 2.54% | -0.79% | 1.9% | -7.54% | 6.25% | -13.4% | -1.28% | -16.16% |
| FCF Growth % | -18.79% | -71.34% | 893.68% | 65.13% | -194.68% | -36.98% | 740.28% | -274.22% | -76.09% | 105.44% | -26.72% | 50.05% | -70.71% | 164.19% | 1228.15% | 95.01% | -160.01% | 149.69% | 283.37% | -1085.42% | -68.28% | 151.59% | -175.25% | 476.45% | -155.8% | 131.91% | -301.53% | 175.92% | -1941.67% | 86.67% | -260% |
| FCF per Share | 5.74 | 4.37 | 14.40 | -1.80 | -5.09 | 5.43 | 8.66 | -1.33 | 0.77 | 3.23 | 1.50 | 1.90 | 1.28 | 4.45 | 1.70 | -0.15 | -3.12 | 5.25 | 2.11 | -1.16 | 0.12 | 0.38 | -0.73 | 1.02 | -0.27 | 0.49 | -1.57 | 0.82 | -1.22 | -0.08 | -0.62 |
| FCF Conversion (FCF/Net Income) | 1.69x | 1.57x | 4.82x | -0.40x | -1.40x | 13.06x | -1.17x | -0.47x | 0.84x | 1.37x | 0.82x | 1.15x | 0.58x | 3.73x | 0.81x | 0.15x | -1.60x | 3.00x | 1.13x | -0.61x | 0.31x | 0.39x | -0.55x | 1.39x | 0.09x | 1.19x | -1.74x | 2.76x | -4.38x | -0.08x | -4.37x |
| Interest Paid | 0 | 7.57M | 12.95M | 18.79M | 6.07M | 6.41M | 11.96M | 13.16M | 8.61M | 2.83M | 1.71M | 1.07M | 739K | 796K | 1.58M | 1.71M | 1.39M | 2.31M | 6.88M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 27.83M | 27.13M | 28.55M | 29.42M | 12M | 16.87M | 30.61M | 36.02M | 31.13M | 33.86M | 36.27M | 24.32M | 35.58M | 46.06M | 43.23M | 23.21M | 30.38M | 29.58M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Working capital volatility risk
According to quarterly financial disclosures, ScanSource exhibits significant volatility in cash conversion, with the OCF/NI ratio swinging from a low of -0.36 in 2025Q2 to a high of 12.51 in 2024Q3, indicating that reported net income is a poor proxy for immediate cash generation.
The wide variance between net income and operating cash flow suggests that accrual-based accounting adjustments, particularly regarding inventory and receivables, heavily influence the bottom line. Investors should interpret this as a signal that earnings quality is highly sensitive to the timing of working capital cycles rather than pure operational profitability.
As reported in recent SEC filings, ScanSource's free cash flow margin has demonstrated extreme instability, ranging from a negative 1.1% in 2025Q2 to a peak of 21.0% in 2024Q3, reflecting the underlying cyclicality of the company's hardware-heavy distribution business model.
This erratic FCF trajectory suggests that the company struggles to maintain a predictable cash conversion cycle during periods of shifting demand. The lack of a stable FCF floor may complicate long-term capital allocation planning and warrants further investigation into the sustainability of cash flows during industry downturns.
Based on the provided cash flow statements, working capital changes are the primary determinant of quarterly liquidity, with fluctuations as large as $136.6M in 2024Q3, which directly dictates the company's ability to fund operations and return capital to shareholders through aggressive buybacks.
The heavy reliance on working capital management implies that ScanSource acts as a critical liquidity provider for its reseller network. Any tightening in credit terms or inventory turnover velocity could rapidly impair the company's cash position, given the thin operating margins inherent in the distribution sector.
As evidenced by recent financial statements, ScanSource has consistently prioritized share repurchases, such as the $32.7M deployed in 2026Q3, even during quarters where operating cash flow was significantly pressured, suggesting a management preference for returning capital over maintaining a static cash buffer.
This capital allocation strategy appears aggressive given the inherent volatility of the company's cash flows. Investors should monitor whether this commitment to buybacks limits the firm's flexibility to pursue strategic M&A in the higher-margin cloud services space, which remains a key pillar of the long-term growth thesis.
Quick answers to the most common questions about buying SCSC stock.
ScanSource, Inc. (SCSC) generated $112.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
ScanSource, Inc. (SCSC) generated $104.1M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
ScanSource, Inc. (SCSC) spent $8.3M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, ScanSource, Inc. (SCSC) spent $106.5M on share repurchases. This shows the company's commitment to returning capital to its equity investors.