SCSC Reports Results

(NASDAQ:SCSC) reported fourth-quarter 2025 results on Aug. 21, 2025, with net sales up nearly 9% year over year, adjusted EBITDA up 13% year over year, and non-GAAP earnings per share rising 27.5% to $1.02. Management introduced new three-year strategic goals focused on increasing recurring gross profit, pursuing strategic acquisitions, and maintaining disciplined capital allocation, while guiding for full-year fiscal 2026 (period ending June 30, 2026) net sales of $3.1 billion to $3.13 billion and adjusted EBITDA of $150 million to $160 million. The following insights highlight key developments in recurring revenue, strategic investments, and capital deployment that shape the company’s long-term investment thesis.

Gross profit margin for the full year increased by 120 basis points to 13.4%, driven by recurring revenues rising to 32.8% of consolidated gross profit from 27.5% the prior year. In the specialty technology solutions segment, recurring revenue as a share of gross profits rose from 6.6% in fiscal 2024 to 11%, reflecting the impact of recent acquisitions and a shift toward higher-margin business.

This rapid growth in recurring high-margin revenues strengthens earnings resilience and positions the company to achieve its new three-year target of building recurring gross profit toward 50%.

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Source Fool.com