Revenue growth has decelerated significantly to 3.8% in 2026Q1 while gross margins have contracted from a 34.5% peak in 2024Q2 to 32.9% as competitive pressures mount.
| 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 |
|---|
| Sales/Revenue | 2B | 1.98B | 1.8B | 1.57B | 1.15B | 520.29M | 351.59M | 370.79M | 349.64M | 305.91M | 276.57M | 275.83M | 285.69M | 269.5M | 290.49M | 314.96M | 316.78M | 378.88M | 485.21M | 509.69M | 518.18M | 450.19M | 419.65M | 389.09M | 387.46M | 379.41M | 348.97M | 319M | 292.5M | 278.1M | 250.3M |
| Revenue Growth % | 7.07% | 9.75% | 14.88% | 36.39% | 121.3% | 47.98% | -5.18% | 6.05% | 14.3% | 10.61% | 0.27% | -3.45% | 6.01% | -7.22% | -7.77% | -0.57% | -16.39% | -21.91% | -4.8% | -1.64% | 15.1% | 7.28% | 7.85% | 0.42% | 2.12% | 8.72% | 9.39% | 9.06% | 5.18% | 11.11% | 11.99% |
| Cost of Goods Sold | 1.37B | 1.36B | 1.19B | 1.01B | 760.52M | 390.01M | 165.05M | 173.43M | 160.1M | 122.89M | 108.51M | 106.71M | 113.14M | 108.21M | 129.31M | 135.18M | 121.95M | 161.1M | 206.21M | 208.71M | 212.92M | 170.43M | 155.97M | 141.12M | 137.13M | 131.06M | 117.26M | 102.7M | 94.1M | 91M | 77.1M |
| COGS % of Revenue | - | 68.91% | 65.98% | 64.63% | 66.05% | 74.96% | 46.94% | 46.77% | 45.79% | 40.17% | 39.23% | 38.69% | 39.6% | 40.15% | 44.51% | 42.92% | 38.5% | 42.52% | 42.5% | 40.95% | 41.09% | 37.86% | 37.17% | 36.27% | 35.39% | 34.54% | 33.6% | 32.19% | 32.17% | 32.72% | 30.8% |
| Gross Profit | 626.5M | 615.55M | 613.77M | 555.46M | 390.9M | 130.28M | 186.54M | 197.35M | 189.54M | 183.02M | 168.06M | 169.12M | 172.55M | 161.29M | 161.18M | 179.78M | 194.83M | 217.78M | 279M | 300.98M | 305.26M | 279.76M | 263.68M | 247.97M | 250.33M | 248.34M | 231.71M | 216.3M | 198.4M | 187.1M | 173.2M |
| Gross Margin % | 31.36% | 31.09% | 34.02% | 35.37% | 33.95% | 25.04% | 53.06% | 53.23% | 54.21% | 59.83% | 60.77% | 61.31% | 60.4% | 59.85% | 55.49% | 57.08% | 61.5% | 57.48% | 57.5% | 59.05% | 58.91% | 62.14% | 62.83% | 63.73% | 64.61% | 65.46% | 66.4% | 67.81% | 67.83% | 67.28% | 69.2% |
| Gross Profit Growth % | - | 0.29% | 10.5% | 42.1% | 200.05% | -30.16% | -5.48% | 4.12% | 3.56% | 8.9% | -0.63% | -1.98% | 6.98% | 0.07% | -10.34% | -7.72% | -10.54% | -21.94% | -7.3% | -1.4% | 9.11% | 6.1% | 6.34% | -0.94% | 0.8% | 7.18% | 7.12% | 9.02% | 6.04% | 8.03% | 6.06% |
| Operating Expenses | 547.01M | 527.86M | 557.82M | 512.47M | 349.11M | 118.86M | 165.99M | 188.29M | 180.33M | 178.5M | 169.52M | 167M | 177.37M | 163.4M | 171.72M | 185.25M | 177.9M | 215.28M | 299.23M | 268.21M | 283.01M | 244.39M | 232.87M | 225.23M | 228.52M | 232.14M | 189.89M | 175.9M | 164.9M | 153.2M | 141.2M |
| OpEx % of Revenue | - | 26.66% | 30.92% | 32.63% | 30.32% | 22.84% | 47.21% | 50.78% | 51.58% | 58.35% | 61.29% | 60.54% | 62.08% | 60.63% | 59.12% | 58.82% | 56.16% | 56.82% | 61.67% | 52.62% | 54.62% | 54.29% | 55.49% | 57.89% | 58.98% | 61.19% | 54.41% | 55.14% | 56.38% | 55.09% | 56.41% |
| Selling, General & Admin | 541.26M | 527.86M | 457.55M | 416.7M | 349.11M | 207.25M | 165.99M | 188.29M | 180.33M | 178.5M | 169.52M | 166.07M | 173.98M | 163.8M | 171.72M | 182.91M | 183.65M | 215.28M | 265.31M | 268.21M | 282.2M | 243.6M | 231.76M | 221.19M | 226.57M | 223.61M | 189.89M | 169.4M | 159.4M | 148.2M | 137.2M |
| SG&A % of Revenue | - | 26.66% | 25.36% | 26.53% | 30.32% | 39.83% | 47.21% | 50.78% | 51.58% | 58.35% | 61.29% | 60.21% | 60.9% | 60.78% | 59.12% | 58.07% | 57.97% | 56.82% | 54.68% | 52.62% | 54.46% | 54.11% | 55.23% | 56.85% | 58.48% | 58.94% | 54.41% | 53.1% | 54.5% | 53.29% | 54.81% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 1000K | 0 | 100.27M | 95.77M | -670K | -88.39M | 0 | 0 | -1.34M | 780K | 422K | -203K | -99K | 0 | -831K | 2.35M | -5.75M | 0 | 33.92M | 0 | 806K | 792K | 1.11M | 4.04M | 1.95M | 8.53M | 0 | 6.5M | 5.5M | 5M | 4M |
| Operating Income | 79.49M | 87.69M | 55.95M | 42.99M | 41.79M | 11.42M | 20.55M | 9.07M | 9.21M | 9.94M | -1.46M | 2.12M | -4.96M | -5.86M | -43.15M | -5.5M | 16.93M | -5.59M | -20.23M | 20.44M | 22.25M | 35.37M | 30.81M | 22.74M | 21.81M | 16.2M | 41.82M | 40.4M | 33.5M | 33.9M | 32M |
| Operating Margin % | 3.98% | 4.43% | 3.1% | 2.74% | 3.63% | 2.2% | 5.84% | 2.45% | 2.63% | 3.25% | -0.53% | 0.77% | -1.74% | -2.18% | -14.85% | -1.75% | 5.34% | -1.47% | -4.17% | 4.01% | 4.29% | 7.86% | 7.34% | 5.84% | 5.63% | 4.27% | 11.98% | 12.66% | 11.45% | 12.19% | 12.78% |
| Operating Income Growth % | - | 56.72% | 30.16% | 2.88% | 265.87% | -44.42% | 126.67% | -1.56% | -7.31% | 781.95% | -168.69% | 142.74% | 15.35% | 86.41% | -685.1% | -132.47% | 402.97% | 72.38% | -198.97% | -8.14% | -37.08% | 14.78% | 35.49% | 4.26% | 34.62% | -61.26% | 3.52% | 20.6% | -1.18% | 5.94% | -3.61% |
| EBITDA | 140.39M | 168.57M | 130.33M | 103.94M | 86.97M | 30.1M | 27.25M | 14.96M | 16.07M | 16.71M | 6.61M | 10.66M | 3.79M | 3.17M | -36.02M | 208K | 23.23M | 1.63M | -11.95M | 27.88M | 29.8M | 41.98M | 37.5M | 29.84M | 28.64M | 24.35M | 48.49M | 46.9M | 39M | 38.9M | 36M |
| EBITDA Margin % | 7.03% | 8.51% | 7.22% | 6.62% | 7.55% | 5.79% | 7.75% | 4.03% | 4.59% | 5.46% | 2.39% | 3.87% | 1.33% | 1.18% | -12.4% | 0.07% | 7.33% | 0.43% | -2.46% | 5.47% | 5.75% | 9.33% | 8.94% | 7.67% | 7.39% | 6.42% | 13.89% | 14.7% | 13.33% | 13.99% | 14.38% |
| EBITDA Growth % | 7.24% | 29.34% | 25.39% | 19.51% | 188.91% | 10.47% | 82.17% | -6.88% | -3.84% | 152.78% | -38.03% | 181.52% | 19.61% | 108.79% | -17414.9% | -99.1% | 1326.21% | 113.63% | -142.86% | -6.44% | -29.03% | 11.95% | 25.66% | 4.21% | 17.62% | -49.79% | 3.38% | 20.26% | 0.26% | 8.06% | -1.37% |
| D&A (Non-Cash Add-back) | 60.9M | 80.88M | 74.38M | 60.95M | 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 |
| EBIT | 64.98M | 87.69M | 54.61M | 82.8M | 37.24M | 12M | 21.44M | 10.28M | 7.87M | 10.72M | -1.03M | 1.92M | -5.06M | -6.03M | -45.32M | -5.67M | 17.09M | -4.7M | -19.91M | 32.77M | 24.24M | 35.84M | 32.19M | 26.61M | 21.81M | 16.2M | 41.82M | 40.34M | 33.55M | 33.9M | 32M |
| Net Interest Income | -41.14M | -55.35M | -55.15M | -42.77M | -24.3M | -16.74M | -654K | -603K | -1.01M | -622K | -496K | -766K | -772K | -1.1M | -775K | -681K | -391K | -1.04M | -789K | -655K | 316K | 347K | -62K | 63K | -102K | -51.5K | 1.06M | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 255K | 466K | 354K | 122K | 194K | 52K | 654.26K | 1.07M | 0 | 0 | 0 | 0 |
| Interest Expense | 28.97M | 55.35M | 55.15M | 42.77M | 24.3M | 16.74M | 654K | 603K | 1.01M | 622K | 496K | 766K | 772K | 1.1M | 775K | 681K | 391K | 1.04M | 789K | 910K | 150K | 7K | 184K | 131K | 154K | 705.76K | 7.96K | 0 | 0 | 0 | 0 |
| Other Income/Expense | -64.83M | -68.28M | -56.49M | -45M | -28.85M | -16.16M | 235K | 608K | -2.35M | 158K | -74K | -969K | -4.69M | -141K | -831K | -580K | -231K | -7.15M | -469K | -369K | 1.44M | 1.19M | 1.25M | 5.05M | 1.38M | 940K | 5.74M | -70.53K | 100K | 1.9M | 1.9M |
| Pretax Income | 14.65M | 19.41M | -536K | -2.01M | 12.94M | -4.74M | 20.79M | 9.67M | 6.86M | 10.09M | -1.53M | 1.15M | -5.83M | -7.12M | -43.98M | -6.08M | 16.7M | -5.74M | -20.7M | 20.07M | 24.4M | 36.55M | 33.44M | 24.89M | 23.19M | 17.14M | 47.57M | 40.2M | 33.6M | 35.8M | 33.9M |
| Pretax Margin % | 0.73% | 0.98% | -0.03% | -0.13% | 1.12% | -0.91% | 5.91% | 2.61% | 1.96% | 3.3% | -0.55% | 0.42% | -2.04% | -2.64% | -15.14% | -1.93% | 5.27% | -1.51% | -4.27% | 3.94% | 4.71% | 8.12% | 7.97% | 6.4% | 5.98% | 4.52% | 13.63% | 12.6% | 11.49% | 12.87% | 13.54% |
| Income Tax | 9.19M | 11.07M | 6.8M | 6.96M | 5.53M | 313K | 5.67M | 2.45M | 649K | -19.59M | 98K | 855K | 227K | -141K | 18.74M | -1.69M | 7.11M | -3.12M | 6.36M | 8.74M | 11.42M | 15.1M | 12.01M | 8.7M | 10.74M | 8.36M | 19.43M | 16.3M | 14.1M | 14.4M | 13.9M |
| Effective Tax Rate % | 62.7% | 57.01% | -1267.91% | -346.79% | 42.75% | -6.6% | 27.29% | 25.36% | 9.46% | -194.12% | -6.4% | 74.22% | -3.89% | 1.98% | -42.6% | 27.76% | 42.56% | 54.4% | -30.72% | 43.54% | 46.79% | 41.29% | 35.93% | 34.93% | 46.32% | 48.74% | 40.85% | 40.55% | 41.96% | 40.22% | 41% |
| 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 | -4.37M | -5.12M | -62.55M | -4.62M | 6.94M | -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 |
| Net Margin % | 0.27% | 0.42% | -0.41% | -0.57% | 0.64% | -0.97% | 4.3% | 1.95% | 1.78% | 9.7% | -0.59% | 0.11% | -1.53% | -1.9% | -21.53% | -1.47% | 2.19% | -0.72% | -5.69% | 2.09% | 2.43% | 5.94% | 5.11% | 4.16% | 3.21% | 2.32% | 8.06% | 7.49% | 6.67% | 7.7% | 7.99% |
| Net Income Growth % | 374.07% | 213.82% | 18.23% | -221.08% | 246.6% | -133.43% | 109.29% | 16.21% | -79.07% | 1922.47% | -648.48% | 106.8% | 14.67% | 91.81% | -1252.72% | -166.66% | 353.55% | 90.1% | -359.96% | -15.72% | -52.83% | 24.8% | 32.29% | 30.12% | 41.65% | -68.77% | 17.72% | 22.56% | -8.88% | 7% | -5.21% |
| Net Income (Continuing) | 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 | -2.62M | -27.06M | 11.33M | 13.7M | 21.46M | 21.44M | 19.48M | 12.45M | 8.79M | 28.14M | 23.93M | 19.47M | 21.4M | 20M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.12 | 0.18 | -0.16 | -0.20 | 0.21 | -0.25 | 0.81 | 0.39 | 0.67 | 3.23 | -0.18 | 0.03 | -0.50 | -0.59 | -7.24 | -0.54 | 0.81 | -0.32 | -3.22 | 1.24 | 1.41 | 2.92 | 2.26 | 1.69 | 1.29 | 0.90 | 2.83 | 2.28 | 1.75 | 1.90 | 1.72 |
| EPS Growth % | 545.16% | 212.5% | 20% | -195.24% | 184% | -130.86% | 107.69% | -41.79% | -79.26% | 1894.44% | -704.03% | 105.96% | 15.25% | 91.85% | -1240.74% | -166.67% | 353.13% | 90.06% | -359.68% | -12.06% | -51.71% | 29.2% | 33.73% | 31.01% | 43.33% | -68.2% | 24.12% | 30.29% | -7.89% | 10.47% | -1.15% |
| EPS (Basic) | - | 0.18 | -0.16 | -0.20 | 0.22 | -0.25 | 0.84 | 0.40 | 0.67 | 3.33 | -0.18 | 0.03 | -0.50 | -0.59 | -7.24 | -0.54 | 0.81 | -0.32 | -3.22 | 1.24 | 1.41 | 2.92 | 2.27 | 1.70 | 1.29 | 0.90 | 2.83 | 2.28 | 1.76 | 1.90 | 1.72 |
| Diluted Shares Outstanding | 47.03M | 47.17M | 47.2M | 44.87M | 35.09M | 20.49M | 18.66M | 8.95M | 9.33M | 9.19M | 8.83M | 8.93M | 8.74M | 8.69M | 8.64M | 8.6M | 8.59M | 8.57M | 8.57M | 8.55M | 8.94M | 9.15M | 9.5M | 9.58M | 9.63M | 9.71M | 9.93M | 10.51M | 11.13M | 11.27M | 11.63M |
| Basic Shares Outstanding | 46.19M | 46.36M | 46.83M | 44.87M | 34.29M | 20.49M | 18.04M | 8.95M | 9.33M | 8.92M | 8.83M | 8.78M | 8.74M | 8.69M | 8.64M | 8.6M | 8.57M | 8.57M | 8.57M | 8.55M | 8.94M | 9.15M | 9.45M | 9.53M | 9.63M | 9.71M | 9.93M | 10.51M | 11.07M | 11.27M | 11.63M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 31.94% | - | - | 64.14% | 57% | 26.6% | 31.7% | 37.51% | 49.31% | 69.49% | 21.15% | 24.6% | 31.78% | 27.57% | 30% |
Integration and Margin Dilution
According to the provided quarterly income statements, DSGR's year-over-year revenue growth has decelerated significantly from 23.2% in 2023Q4 to a modest 3.8% by 2026Q1, suggesting that the initial inorganic expansion phase is losing steam as the company struggles to maintain organic momentum across its segments.
The sharp decline in top-line growth rates indicates that the platform's reliance on acquisition-led scaling may be reaching a point of diminishing returns. Investors should monitor whether this deceleration reflects broader industrial demand weakness or an inability to effectively cross-sell across the Lawson, TestEquity, and Gexpro business units.
As reported in financial statements, DSGR's gross margin has contracted from a peak of 34.5% in 2024Q2 to 32.9% in 2026Q1, highlighting the difficulty of maintaining pricing power in a competitive industrial distribution landscape that is increasingly sensitive to input cost volatility and logistical overhead.
The inability to sustain gross margins above the 33% threshold suggests that the company's service-heavy VMI model may be facing pricing pressure or unfavorable product mix shifts. This margin erosion, combined with high operating expenses, leaves little room for error in achieving the profitability levels seen in larger, more established industry peers.
Based on the income statement data, DSGR's operating margin has remained consistently thin, fluctuating between 2.7% and 5.4% over the last ten quarters, which indicates that the company has yet to achieve the anticipated economies of scale from its recent multi-segment integration efforts.
The lack of meaningful operating leverage suggests that SG&A costs are scaling in lockstep with revenue, rather than benefiting from centralized back-office efficiencies. This persistent overhead burden warrants further investigation into whether the current organizational structure is fundamentally too complex to support the desired profitability profile.
Data from the income statement reveals significant volatility in net income, which swung from a $21.9 million profit in 2024Q3 to a $6.4 million loss in 2025Q4, largely driven by non-operating items and integration-related charges that complicate the assessment of true underlying earning power.
The frequent shifts between net profitability and losses suggest that GAAP earnings are currently an unreliable indicator of operational health due to the impact of acquisition-related amortization. Analysts should focus on whether the recurring stock-based compensation, which reached $2.4 million in 2026Q1, is adequately aligned with shareholder value creation given the current earnings instability.
Based on reported figures, the persistent gap between DSGR's net margins and those of industry leaders like Fastenal suggests that the market's 'platform' thesis may be overly optimistic, as the company continues to struggle with the high cost of maintaining its decentralized, service-intensive business model.
Short-term investors may focus on the risk that the company's integration expenses are not merely one-time costs but rather a permanent feature of a fragmented business model. If the company fails to demonstrate a clear path to margin expansion, the current valuation may be vulnerable to a downward re-rating as the market prioritizes operational efficiency over scale.
Quick answers to the most common questions about buying DSGR stock.
For fiscal year 2025, Distribution Solutions Group, Inc. (DSGR) reported total revenue of $1.98B. This represents a 691.1% increase compared to $250.3M in 1996.
Distribution Solutions Group, Inc. (DSGR) is profitable, generating $8.3M in net income for the fiscal year ending 2025 with a net profit margin of 0.4%.
Distribution Solutions Group, Inc. (DSGR) reported an operating income of $87.7M, resulting in an operating profit margin of 4.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Distribution Solutions Group, Inc. (DSGR) generated $615.6M in gross profit for the year, representing a gross profit margin of 31.1%. This demonstrates the company's core pricing power and production efficiency.