ScanSource Inc. (NASDAQ: SCSC), a leading hybrid distributor of specialty technologies, saw its stock plummet 5.24% in pre-market trading on Thursday, January 30th, 2025. The sharp sell-off came after the company reported disappointing fiscal second-quarter 2025 results, despite reaffirming its full-year guidance.

For the quarter ended December 31, 2024, ScanSource posted non-GAAP earnings of $0.85 per share, missing analyst estimates of $0.91. Net sales declined 15.5% year-over-year to $747.5 million, falling short of expectations as well. The company cited lower large deals and a softer demand environment in its core Specialty Technology Solutions segment as the primary reasons for the revenue decline.

Despite the weaker-than-expected quarterly performance, ScanSource reaffirmed its full-year fiscal 2025 outlook. The company continues to expect net sales in the range of $3.1 billion to $3.5 billion, adjusted EBITDA between $140 million and $160 million, and free cash flow of at least $70 million.