DSGR earnings analysis
What we found in DSGR's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Distribution Solutions Group, Inc. reported Q1 2026 revenues of $496 million, up 3.8% compared to Q1 2025 but below analyst estimates. The company faced a significant decline in profitability with diluted EPS at $0.24, down from $0.46 year-over-year. Total operating income dropped from $20.1 million to $13.6 million, indicating heavier margin pressures.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Growth of 3.8% YoY
- Revenue increased to $496 million in Q1 2026 from $478 million in Q1 2025.
- Declining Operating Income
- Operating income fell to $13.6 million, a 32% drop from $20.1 million in Q1 2025.
- Significant EPS Decline
- Diluted EPS reported at $0.24, down from $0.46 in Q1 2025.
- Higher SG&A Expenses
- Selling, general and administrative expenses increased to $149.7 million, compared to $143.9 million a year prior.
- TestEquity Segment Strong Growth
- TestEquity revenue rose 8.2% to $204.2 million, driven by increased sales across key product categories.
- Gexpro Services Segment Decline
- Gexpro Services segment revenue decreased by 1.1% to $117.6 million primarily due to lower demand in aerospace and renewables.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Increased Debt Levels
- Interest expense for Q1 2026 was $12.2 million, slightly reduced from $14.2 million in the previous year but remains a concern given the floating rate debt.
- Profit Margin Pressures
- Gross profit margin declined to 32.9% from 34.3% in Q1 2025, driven by increased costs and a shift towards lower-margin sales.
- Rising Supplier Costs
- Continued inflation and increased transport costs have pressured margins and may continue to impact future profitability.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.24
- Gross margin
- 32.9%
- Operating margin
- 2.7%
- Segment
- Lawson
- Segment
- TestEquity
- Segment
- Gexpro Services
- Segment
- Canada Branch Division
What they said about what is next.
No specific forward guidance provided for future periods.
The filing reads worse than the one before it.
What came before.
- 10-K · March 5, 2026
- DSG presents a strategy of combined specialty distribution through Lawson, TestEquity and Gexpro Services, pursuing organic growth (cross-selling, digital) and accretive acquisitions. Recent corporate actions in the…
- 10-Q · October 30, 2025
- DSG reported Q3 revenue of $517,958,000, up 10.7% versus prior-year Q3 revenue of $468,019,000, driving higher operating income of $23,619,000 (operating margin 4.6%). Gross margin compressed to 32.9% from 33.9% a year…
- 10-Q · July 31, 2025
- DSG reported Q2 2025 revenue of $502,437,000, up $62,901,000 (14.3%) versus Q2 2024 and up ~$24M (5.0%) sequentially. Gross margin narrowed to 33.9% from 34.5% a year ago, but operating income rose to $26,826,000 (5.3%…
- 10-K · March 7, 2024
- DSG completed several strategic moves in 2023 including the $267.3 million Hisco acquisition (net of $12.2M cash) and issuance of earnout shares for TestEquity and Gexpro Services; management emphasizes a dual growth…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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