Filing Flows › Distribution Solutions Group (DSGR) › Q1 2025
Distribution Solutions Group (DSGR) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 1, 2025
Distribution Solutions Group (DSGR) reported revenue of $478M for the first quarter 2025 (Q1 2025), +15% from a year earlier and -0.5% from the quarter before. Operating margin was 4.2%, net earnings $3.3M (0.7% of revenue).
Distribution Solutions Group, Q1 2025: revenue $478M (+15% year over year), operating margin 4.2%, net earnings $3.3M, operating cash flow −$4.8M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $478M | -0.5% | +15% |
| Gross profit | $164M | +2% | +14% |
| Operating profit | $20.1M | +0.1% | +622% |
| Net earnings | $3.3M | — | — |
| Operating cash flow | −$4.8M | — | — |
What changed
Revenue was $478.0M in Q1 2025, up 15% year over year and down 1% from the previous quarter. TestEquity was the largest line at 39% of revenue. Canada Branch Division added $38.0M year over year (up 304%), 61% of the total change.
Gross margin was 34.3%, down 0.2 points from a year earlier. Operating profit was $20.1M, a 4.2% margin (up 3.5 points year over year). Of the extra revenue versus a year earlier, 28% reached operating profit, above the 1% margin then. Operating expenses grew 2% against revenue growth of 15%. Net earnings were $3.3M. The effective tax rate was 40.9%.
Operating cash flow was −$4.8M. Non-cash charges added back $20.0M of depreciation and amortization and $1.0M of share-based compensation. Working capital and other items used $29.0M. Capital expenditures of $5.6M exceeded it, leaving free cash flow of −$10.4M.
Questions
What was Distribution Solutions Group's revenue in the first quarter 2025?
Distribution Solutions Group (DSGR) reported revenue of $478M for the first quarter 2025 (Q1 2025), +15% from a year earlier and -0.5% from the quarter before.
Was Distribution Solutions Group profitable in the first quarter 2025?
Operating profit was $20.1M (4.2% of revenue) and net earnings $3.3M.