ScanSource is a specialty technology distributor that operates between technology suppliers and the channel partners — resellers, advisors, and managed service providers — who sell to end users. ScanSource serves roughly 25,000 channel partners across the U.S., Canada, and Brazil, offering access to over 65,000 products from around 500 suppliers, alongside value-added services including pre- and post-sales technical support, configuration, trade credit, and training. The company operates two segments. Specialty Technology Solutions is a traditional wholesale/resale business covering hardware and software across mobility and barcode, point-of-sale, physical security, networking, and communications. This segment runs on thin gross margins (~10–11%), with profitability driven by volume, product mix, and large project-based deals. Intelisys & Advisory is an agency-model business where ScanSource connects technology advisors with suppliers of cloud, connectivity, UCaaS, and security services, earning recurring commissions on contracted end-user billings. Because Intelisys takes no title to product, gross margins in this segment are near 100%. A key strategic priority is growing recurring revenue as a share of total gross profit — from roughly 28% in FY24 to 33% in FY25 — with a long-term target of ~50%. ScanSource is pursuing this through bolt-on acquisitions of high-margin, asset-light recurring revenue businesses, and by expanding the Intelisys platform to onboard new supplier types, including AI and SaaS vendors, via its Channel Exchange proprietary transaction platform.