Scansource (SCSC) risk factors, FY2025 10-K

Scansource's FY2025 10-K, filed Aug 21, 2025, lists 23 risk factors. There is no earlier 10-K to compare against, so the most company-specific risks are listed below.

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Risk factors listed
230 groups
Section length
7k wordsItem 1A

Scansource's biggest risks in the FY2025 10-K

  • Scansource depends heavily on suppliers like Cisco and Zebra, international sourcing mainly in Asia, and key IT and warehouse infrastructure.

The risks most specific to Scansource

  • IT Systems - Our ability to manage our business and monitor results is highly dependent upon information and communication systems. A failure of these systems could disrupt our business

    We are highly dependent on computer and telecommunication systems like enterprise resource planning, and failures could disrupt operations.

  • Our business depends on the timely supply of products in order to meet the demands of our channel sales partners

    Manufacturing interruptions, labor disputes, or public health crises affecting suppliers could disrupt our product supply chain.

  • Credit exposure - We have credit exposure to our channel sales partners. Any adverse trends or significant adverse incidents in their businesses could cause us to suffer credit losses

    We extend open-account credit to channel sales partners and financing to Intelisys advisors, increasing credit risk as payment terms lengthen.

  • Suppliers - Changes to supply agreement terms or lack of product availability from our suppliers could adversely affect our operating margins, revenue or the level of capital required to fund our operations

    A significant percentage of our net sales depends on relatively few suppliers, including Cisco and Zebra.

  • Centralized functions - We have centralized several functions to provide efficient support to our business. As a result, a loss or reduction of use of one of our locations could have an adverse effect on our business operations and financial results

    We distribute products to the majority of North America from a single warehouse in Southaven, Mississippi.

  • investigations and actions, and may have a serious impact on our reputation and may adversely affect our businesses, operating results and financial condition

    A May 2023 ransomware attack encrypted files, interrupted order processing for nine days, and leaked data on the dark web.

All 23 risk factors

Headings as the filing states them, in filing order.

Other

  1. 01People - If we cannot continue to hire and retain high quality employees, our business and financial results may be negatively affected
  2. 02Acquisitions - Our growth strategy includes acquisitions of companies that complement or expand our existing business. Acquisitions involve unique risks and uncertainties, including difficulty in identifying and completing potential acquisitions
  3. 03manage the personnel required to address our growth. Failure to effectively manage our acquisition opportunities could damage our reputation, limit our future growth, and adversely affect our business, financial condition and operating results
  4. 04Organic growth strategies - If we fail to effectively manage and implement our operating strategies, we may experience a negative effect on our business and financial results
  5. 05IT Systems - Our ability to manage our business and monitor results is highly dependent upon information and communication systems. A failure of these systems could disrupt our business
  6. 06Our business depends on the timely supply of products in order to meet the demands of our channel sales partners
  7. 07sufficient quantities of product to meet channel sales partner demand (including as a result of shortages of product components), among other reasons
  8. 08Credit exposure - We have credit exposure to our channel sales partners. Any adverse trends or significant adverse incidents in their businesses could cause us to suffer credit losses
  9. 09Inventory - The value of our inventory may be adversely affected by market and other factors
  10. 10Suppliers - Changes to supply agreement terms or lack of product availability from our suppliers could adversely affect our operating margins, revenue or the level of capital required to fund our operations
  11. 11Channel Sales Partners - We operate in a highly competitive environment and good channel sales partner relations are critical to our success. There can be no assurance that we will be able to retain and expand our channel sales partner relationships or acquire new channel sales partners
  12. 12Liquidity and capital resources - Market factors and our business performance may increase the cost and decrease the availability of capital. Additional capital may not be available to us on acceptable terms to fund our working capital needs and growth
  13. 13Litigation - We routinely are involved in litigation that can be costly and lead to adverse results
  14. 14Fair value measurement of goodwill and other intangible assets - Changes in the fair value of the assets and liabilities measured at fair value could have a significant effect on our reported earnings
  15. 15International operations - Our international operations expose us to risks that are different from, and possibly greater than, the risks we are exposed to domestically
  16. 16Quarterly fluctuations - Our net sales and operating results are dependent on several factors. Our net sales will fluctuate from quarter to quarter, and these fluctuations may cause volatility in our stock price
  17. 17Centralized functions - We have centralized several functions to provide efficient support to our business. As a result, a loss or reduction of use of one of our locations could have an adverse effect on our business operations and financial results
  18. 18Competition - We experience intense competition in all our markets. This competition could result in reduced margins and loss of our market share
  19. 19Disruptive technology - We may not be able to respond and adapt to rapid technological changes, evolving industry standards or changing channel sales partner needs or requirements, and thus may become less competitive
  20. 20investigations and actions, and may have a serious impact on our reputation and may adversely affect our businesses, operating results and financial condition
  21. 21Economic weakness - Economic weakness and uncertainty, including the possibility of recession and heightened levels of inflation, tariffs and geopolitical uncertainty could adversely affect our results and prospects
  22. 22Foreign currency - Our international operations expose us to fluctuations in foreign currency exchange rates that could adversely affect our results of operations
  23. 23Increased government regulation - We may be subject to additional costs and subject to fines and penalties because certain governmental entities are end users of products that we sell

Other Scansource 10-Ks

  • FY2026 10-K risk factors
    25 risks5 new3 dropped8 reworded

    New tariff exposure may raise costs and reduce channel sales partner demand.

    Filed Aug 20, 2026

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.