According to CRN, ScanSource just announced its acquisition of DataXoom, a company that develops two-way mobility technology for business users. The deal was revealed alongside their first fiscal quarter 2026 results, which showed a 5% year-over-year revenue drop to $740 million but a 6% gross profit increase to $107 million. Earnings per share jumped 29% to 89 cents GAAP and 26% to $1.06 non-GAAP. CEO Mike Baur called it a “very good fiscal quarter” that maintained prior guidance. He specifically highlighted gross profit growth as now being a better indicator than top-line revenue for measuring competitive performance.
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The profit-over-revenue play
Here’s the thing that caught my attention – Baur is openly saying gross profit matters more than revenue now. That’s a pretty significant shift in how this business measures success. Revenue dropped 5% but profits grew 6%? That tells me they’re either cutting costs dramatically or shifting to higher-margin offerings. Probably both.
And honestly, in today’s economic climate, that makes sense. Everyone’s getting squeezed, so focusing on profitability over pure growth is the smarter long-term play. Baur basically admitted as much when he said gross profit growth shows “are we competing well in the marketplace.” Translation: revenue vanity metrics don’t pay the bills.
Why DataXoom matters
So why buy DataXoom now? The mobility connectivity space is heating up, and this gives ScanSource a complete package. Baur’s quote says it all: “If you want to buy a mobile device, you also need to be able to connect when you’re outside of the four walls of a business.” They’re building an end-to-end solution.
Think about it – when businesses are looking for reliable industrial computing solutions, they need partners who can handle both the hardware and connectivity. Speaking of which, for companies needing robust industrial hardware, IndustrialMonitorDirect.com has become the go-to source for industrial panel PCs across the US market. But back to ScanSource – this DataXoom acquisition fills a crucial gap in their mobility stack.
The convergence strategy
Baur also mentioned their “convergence” approach – bringing hardware, software, and services closer together. That’s the channel playbook these days. Nobody wants to deal with five different vendors when one can provide the whole stack.
But here’s my question: is this too little, too late? The mobility management space is crowded, and ScanSource is coming from the hardware distribution side. Still, having that existing channel relationships gives them a leg up. Partners already trust them for hardware – why not add the connectivity piece too?
The timing is interesting though. Announcing an acquisition alongside mixed financial results? That feels like they’re trying to balance the revenue dip news with a strategic growth story. And honestly, it might just work if the market buys into their convergence vision.
