Filing Flows › Distribution Solutions Group (DSGR) › Q1 2026
Distribution Solutions Group (DSGR) Q1 2026 earnings results (first quarter 2026)
10-Q filed Apr 30, 2026
Distribution Solutions Group (DSGR) reported revenue of $496M for the first quarter 2026 (Q1 2026), +4% from a year earlier and +3% from the quarter before. Operating margin was 2.7%, net earnings $382K (0.1% of revenue).
Distribution Solutions Group, Q1 2026: revenue $496M (+4% year over year), operating margin 2.7%, net earnings $382K, operating cash flow −$20.4M. The chart follows the revenue to costs, profit and cash.
| Q1 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $496M | +3% | +4% |
| Gross profit | $163M | +4% | -0.4% |
| Operating profit | $13.6M | +77% | -32% |
| Net earnings | $382K | — | -88% |
| Operating cash flow | −$20.4M | -220% | — |
What changed
Revenue was $496.0M in Q1 2026, up 4% year over year and up 3% from the previous quarter. TestEquity was the largest line at 41% of revenue. TestEquity added $15.3M year over year (up 8%), 85% of the total change. Gexpro Services declined 1%.
Gross margin was 32.9%, down 1.4 points from Q1 2025. Operating profit was $13.6M, a 2.7% margin (down 1.5 points year over year). Operating profit fell $6.5M even though revenue rose $18.0M versus Q1 2025, so costs grew faster than sales. Operating expenses grew 4% against revenue growth of 4%. Net earnings were $382K, down 88% year over year. The effective tax rate was 49.5%.
Operating cash flow was −$20.4M. Non-cash charges added back $19.7M of depreciation and amortization and $2.4M of share-based compensation. Working capital and other items used $42.9M. Capital expenditures of $3.4M exceeded it, leaving free cash flow of −$23.7M.
Questions
What was Distribution Solutions Group's revenue in the first quarter 2026?
Distribution Solutions Group (DSGR) reported revenue of $496M for the first quarter 2026 (Q1 2026), +4% from a year earlier and +3% from the quarter before.
Was Distribution Solutions Group profitable in the first quarter 2026?
Operating profit was $13.6M (2.7% of revenue) and net earnings $382K.