Cash conversion efficiency remains highly volatile, highlighted by a negative OCF/NI ratio of -53.30 in 2026Q1 and a swing to negative $23.7 million in free cash flow.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 68.25M | 83.85M | 56.45M | 102.29M | -11.03M | 10.32M | 32.53M | 9.2M | 20.3M | 7.07M | 8.46M | 9.29M | 1.86M | 2.23M | -7.57M | -23.28M | 14.79M | 15.94M | 15.74M | 11.55M | 19.89M | 17.8M | 25.84M | 26.42M | 28.96M | 6.45M | 22.89M | 23.3M | 16.1M | 17M | 24.6M |
| Operating CF Margin % | - | 4.23% | 3.13% | 6.51% | -0.96% | 1.98% | 9.25% | 2.48% | 5.81% | 2.31% | 3.06% | 3.37% | 0.65% | 0.83% | -2.61% | -7.39% | 4.67% | 4.21% | 3.24% | 2.27% | 3.84% | 3.95% | 6.16% | 6.79% | 7.47% | 1.7% | 6.56% | 7.3% | 5.5% | 6.11% | 9.83% |
| Operating CF Growth % | -12.69% | 48.53% | -44.81% | 1027.43% | -206.87% | -68.27% | 253.72% | -54.7% | 187.11% | -16.43% | -8.89% | 398.93% | -16.7% | 129.5% | 67.46% | -257.41% | -7.25% | 1.31% | 36.28% | -41.93% | 11.74% | -31.12% | -2.21% | -8.78% | 349.24% | -71.83% | -1.78% | 44.72% | -5.29% | -30.89% | 15.49% |
| Net Income | 5.47M | 8.35M | -7.33M | -8.97M | 7.41M | -5.05M | 15.11M | 7.22M | 6.21M | 29.69M | -1.63M | 297K | -6.06M | -6.98M | -62.72M | -4.39M | 9.59M | -2.74M | -27.63M | 10.63M | 12.61M | 26.74M | 21.43M | 16.2M | 12.45M | 8.79M | 28.14M | 23.9M | 19.5M | 21.4M | 20M |
| Depreciation & Amortization | 80.62M | 80.88M | 74.38M | 63.59M | 45.19M | 18.68M | 6.7M | 5.89M | 6.86M | 6.77M | 8.07M | 8.54M | 8.75M | 9.03M | 7.13M | 5.7M | 6.31M | 7.22M | 8.28M | 7.43M | 7.54M | 6.62M | 6.69M | 7.1M | 6.83M | 8.15M | 6.66M | 6.5M | 5.5M | 5M | 4M |
| Stock-Based Compensation | 7.15M | 6.67M | 5.23M | 8.37M | 2.45M | 0 | 1.48M | 4.05M | 7.51M | 3.11M | 2.47M | 2.09M | 6.38M | 2.27M | -306K | 61K | 1.92M | -4.48M | -526K | 6.59M | 6.59M | 5.67M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -3.43M | -4.01M | -6.65M | -8.03M | -2.41M | -4M | -167K | 2.17M | 545K | -21.23M | 31K | -21K | 8K | 13K | 17.44M | -1.84M | 5.22M | 1.75M | 912K | -1.46M | -4.31M | -2.4M | -1.77M | -476K | -2.18M | -1.77M | -582K | -1.9M | -1.9M | -900K | -700K |
| Other Non-Cash Items | -50.39M | 10.37M | 11.39M | 12.64M | 10.4M | -78K | 1.92M | 0 | 21.48M | -5.42M | 12K | 931K | 2.66M | 4.2M | 24.27M | -348K | -8.24M | -2.21M | 16.69M | -5.99M | 597K | -12.92M | 3.34M | 4.58M | 1.75M | -315.7K | -961.69K | 500K | -900K | -400K | 600K |
| Working Capital Changes | 14.12M | -18.41M | -20.57M | 34.69M | -74.07M | 766K | 7.48M | -10.14M | -823K | -5.84M | -489K | -2.56M | -9.87M | -6.29M | 6.61M | -22.47M | -5K | 16.41M | 18.01M | -5.67M | -3.15M | -5.91M | -3.84M | -990K | 10.11M | -10.81M | -9.1M | -7.7M | -7.1M | -11.3M | -2.9M |
| Change in Receivables | -24.79M | -21.44M | -1.42M | 18.02M | -21.77M | 6.94M | 1.76M | -5.27M | -193K | -5.28M | -3.25M | 3.29M | -2.42M | -941K | 10.43M | -11.42M | -4.68M | 7.59M | 7.96M | -991K | -991K | -9.35M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -5.39M | -7.24M | -9.23M | 3.58M | -42.4M | -5.06M | 2.1M | -2.31M | -2.92M | -1.71M | 2.23M | -116K | 882K | -1.4M | 4.14M | -8.43M | -3.54M | 13.48M | 9.37M | -5.96M | -11.72M | -151K | -5.87M | 4.9M | 1.69M | -3.09M | 256.15K | -2.9M | -4.9M | -4.7M | -4M |
| Change in Payables | 32.16M | 23.6M | 11.34M | 3.05M | -8.84M | -2.24M | 5.79M | -3.23M | 2.85M | 1.85M | 397K | -6.35M | -6.83M | -9.41M | -11.43M | 6.22M | 6.22M | -2.97M | -3.1M | 7.66M | 7.66M | 10.19M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -46.26M | -29.49M | -229.68M | -278.52M | -126.69M | -41.38M | -3.99M | -2.03M | -7.83M | -27.36M | -9.14M | -2.78M | 17.67M | -3.13M | -5.31M | -11.07M | 19.24M | -589K | -3.51M | -17.6M | -4.66M | -8.03M | -3.53M | -5.42M | -4.17M | -13.23M | -9.15M | -8.8M | 4.1M | -11.5M | -6M |
| Capital Expenditures | -29.68M | -21.02M | -23.19M | -24.68M | -20.1M | -13.78M | -1.69M | -2.03M | -2.52M | -1.26M | -3.11M | -2.34M | -2.76M | -2.91M | -18.5M | -11.13M | -10.05M | -2.77M | -3.55M | -17.69M | -5.29M | -9.27M | -3.78M | -4.24M | -5.96M | -5.23M | -3.39M | -17M | -5.4M | -5.9M | -4.8M |
| CapEx % of Revenue | 1.49% | 1.06% | 1.29% | 1.57% | 1.75% | 2.65% | 0.48% | 0.55% | 0.72% | 0.41% | 1.13% | 0.85% | 0.97% | 1.08% | 6.37% | 3.53% | 3.17% | 0.73% | 0.73% | 3.47% | 1.02% | 2.06% | 0.9% | 1.09% | 1.54% | 1.38% | 0.97% | 5.33% | 1.85% | 2.12% | 1.92% |
| Acquisitions | -15.04M | -2.18M | -199.42M | -253.84M | -115.34M | -33.94M | -2.3M | 0 | -5.31M | -32.29M | -6.03M | -441K | 12.13M | 0 | 909K | 58K | 27.26M | 0 | 0 | 181K | 181K | -14.56M | 0 | 0 | 0 | -36.89M | 7.4M | 0 | 0 | 0 | 100K |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -1.55M | -6.3M | -7.07M | 0 | 8.76M | 6.34M | 0 | 0 | 0 | 6.18M | 0 | 3K | 8.31M | -219K | 12.28M | 29.29M | 2.02M | 2.18M | 36K | -91K | 450K | 15.81M | 250K | 286K | 456K | 240K | 200K | 500K | 1M | 100K | -10.3M |
| Cash from Financing | -39.85M | -64.27M | 159.3M | 250.41M | 148.46M | 34.67M | -5.77M | -13.89M | -4.49M | 13.52M | -84K | 975K | -16.02M | -49K | 12.41M | -4.1M | -2.25M | -10.85M | -10.12M | 4.21M | -27.2M | -22.34M | -16.98M | -7.2M | -24.19M | 5.86M | -17.8M | -16.4M | -16.5M | -9.7M | -14.5M |
| Debt Issued (Net) | -58.73M | -40.78M | 164.56M | 157.01M | 162.88M | 25.43M | -2.53M | -8.82M | -3.9M | 13.46M | -84K | 925K | -16.08M | -49K | 16.13M | 0 | 0 | -7.7M | -3.3M | 11M | 0 | -1.57M | -1.46M | -805K | -14M | 14M | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | -13.16M | -23.49M | -3.2M | 94.56M | -2.46M | 0 | -3.25M | -4.53M | -523K | -20K | -176K | -248K | 0 | 0 | -631K | 0 | 0 | 0 | 0 | 26K | -20.01M | -13.66M | -8.73M | -315K | -4.05M | -2.03M | -11.85M | -10.52M | -10.34M | -3.8M | -8.5M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -3.08M | -4.1M | -2.22M | -2.73M | -6.82M | -6.82M | -7.19M | -7.11M | -6.79M | -6.08M | -6.14M | -6.11M | -5.95M | -5.9M | -6.2M | -5.9M | -6M |
| Share Repurchases | -13.16M | -24.37M | -3.2M | -3.91M | -2.46M | 0 | -3.25M | -4.53M | -523K | -20K | -176K | -248K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -20.92M | -14.49M | -9.65M | -620K | -5.62M | -2.2M | -11.93M | 0 | -10.35M | -4.1M | -8.5M |
| Other Financing | 32.05M | 0 | -2.06M | -1.17M | -11.96M | 9.23M | 15K | -540K | -62K | -60K | 176K | 298K | 53K | 0 | 0 | 0 | -32K | -420K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1K | 0 | -960 | 0 | 0 | 0 |
| Net Change in Cash | -15.04M | -6.4M | -17.9M | 74.89M | 10.07M | 4.27M | 23.09M | -6.39M | 7.47M | -6M | -344K | 6.56M | 3.51M | -942K | -476K | -38.45M | 31.78M | 4.51M | 2.11M | -1.85M | -11.98M | -12.57M | 5.32M | 13.81M | 604K | -925.15K | -4.06M | -1.9M | -16.5M | -9.7M | -14.5M |
| Free Cash Flow | 32.9M | 43.35M | 33.26M | 77.61M | -31.13M | -3.46M | 30.84M | 7.17M | 17.77M | 5.81M | 5.35M | 6.94M | -898K | -674K | -26.07M | -34.41M | 4.74M | 13.18M | 12.19M | -6.15M | 14.59M | 8.53M | 22.05M | 22.18M | 23M | 1.22M | 19.49M | 6.3M | 10.7M | 11.1M | 19.8M |
| FCF Margin % | 1.65% | 2.19% | 1.84% | 4.94% | -2.7% | -0.67% | 8.77% | 1.93% | 5.08% | 1.9% | 1.93% | 2.52% | -0.31% | -0.25% | -8.98% | -10.93% | 1.5% | 3.48% | 2.51% | -1.21% | 2.82% | 1.89% | 5.25% | 5.7% | 5.94% | 0.32% | 5.59% | 1.97% | 3.66% | 3.99% | 7.91% |
| FCF Growth % | 44.59% | 30.35% | -57.14% | 349.3% | -799.45% | -111.22% | 330.26% | -59.67% | 205.73% | 8.71% | -22.97% | 873.16% | -33.23% | 97.42% | 24.22% | -825.95% | -64.03% | 8.1% | 298.32% | -142.11% | 71.19% | -61.34% | -0.57% | -3.57% | 1788.18% | -93.75% | 209.41% | -41.12% | -3.6% | -43.94% | 8.2% |
| FCF per Share | 0.70 | 0.92 | 0.70 | 1.73 | -0.89 | -0.17 | 1.65 | 0.80 | 1.91 | 0.63 | 0.61 | 0.78 | -0.10 | -0.08 | -3.02 | -4.00 | 0.55 | 1.54 | 1.42 | -0.72 | 1.63 | 0.93 | 2.32 | 2.31 | 2.39 | 0.13 | 1.96 | 0.60 | 0.96 | 0.98 | 1.70 |
| FCF Conversion (FCF/Net Income) | 6.02x | 10.05x | -7.70x | -11.41x | -1.49x | -2.04x | 2.15x | 1.27x | 3.27x | 0.24x | -5.19x | 31.26x | -0.43x | -0.44x | 0.12x | 5.03x | 2.13x | -5.83x | -0.57x | 1.09x | 1.58x | 0.67x | 1.21x | 1.63x | 2.33x | 0.73x | 0.81x | 0.97x | 0.83x | 0.79x | 1.23x |
| Interest Paid | 28.5M | 0 | 55.79M | 40.63M | 23.44M | 15.39M | 398K | 590K | 1.04M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 9.35M | 0 | 15.26M | 12.42M | 13.81M | 3M | 5.38M | 947K | 1.26M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Integration and liquidity volatility
According to the provided quarterly cash flow data, the relationship between net income and operating cash flow is erratic, evidenced by a negative OCF/NI ratio of -53.30 in 2026Q1, which suggests that reported earnings are frequently decoupled from the company's actual ability to generate cash.
The extreme variance in the OCF/NI ratio indicates that GAAP net income is a poor proxy for the company's underlying cash-generating capacity. Investors should interpret this disconnect as a sign that non-cash charges and working capital swings are masking the true operational performance of the business.
As reported in financial statements, DSGR's free cash flow has shown significant instability, swinging from a peak of $37.3 million in 2024Q4 to a negative $23.7 million in 2026Q1, highlighting a concerning inability to sustain positive cash generation amidst ongoing operational and integration challenges.
The inconsistent FCF margins suggest that the company's business model is currently struggling to convert revenue into meaningful liquidity. This trend warrants further investigation into whether the recent acquisition-heavy strategy is creating a permanent drag on the company's ability to self-fund its operations.
Based on reported figures, working capital changes have been highly erratic, ranging from a $62.9 million outflow in 2024Q3 to a $51.2 million inflow in 2024Q4, which suggests that the company's inventory and receivables management is not yet optimized for a stable, consolidated platform.
These large, periodic swings in working capital appear to be a primary driver of the volatility in operating cash flow. It is possible that the integration of disparate business units is causing temporary inefficiencies in inventory turnover and collection cycles that the company has yet to resolve.
Data from the cash flow statements indicates that DSGR has consistently prioritized acquisition-related outflows, such as the $97.3 million spent in 2024Q3, over internal cash preservation, even as operating cash flow has shown signs of deterioration in recent quarters.
The reliance on inorganic growth to drive the platform narrative appears to be consuming significant liquidity that might otherwise be used to strengthen the balance sheet. Investors should monitor whether this aggressive deployment strategy remains sustainable if organic cash flow generation continues to falter.
Quick answers to the most common questions about buying DSGR stock.
Distribution Solutions Group, Inc. (DSGR) generated $83.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Distribution Solutions Group, Inc. (DSGR) generated $43.4M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Distribution Solutions Group, Inc. (DSGR) spent $21.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Distribution Solutions Group, Inc. (DSGR) spent $24.4M on share repurchases. This shows the company's commitment to returning capital to its equity investors.