Filing Flows › Distribution Solutions Group (DSGR) › Q2 2025
Distribution Solutions Group (DSGR) Q2 2025 earnings results (second quarter 2025)
10-Q filed Jul 31, 2025
Distribution Solutions Group (DSGR) reported revenue of $502M for the second quarter 2025 (Q2 2025), +14% from a year earlier and +5% from the quarter before. Operating margin was 5.3%, net earnings $5.0M (1.0% of revenue).
Distribution Solutions Group, Q2 2025: revenue $502M (+14% year over year), operating margin 5.3%, net earnings $5.0M, operating cash flow $33.3M. The chart follows the revenue to costs, profit and cash.
| Q2 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $502M | +5% | +14% |
| Gross profit | $170M | +4% | +12% |
| Operating profit | $26.8M | +33% | +89% |
| Net earnings | $5.0M | +53% | +164% |
| Operating cash flow | $33.3M | — | +56% |
| Free cash flow | $28.7M | — | +59% |
What changed
Revenue was $502.4M in Q2 2025, up 14% year over year and up 5% from the previous quarter. TestEquity was the largest line at 39% of revenue. Canada Branch Division added $41.4M year over year (up 286%), 66% of the total change. TestEquity declined 1%.
Gross margin was 33.9%, down 0.6 points from a year earlier. Operating profit was $26.8M, a 5.3% margin (up 2.1 points year over year). Of the extra revenue versus a year earlier, 20% reached operating profit, above the 3% margin then. Operating expenses grew 4% against revenue growth of 14%. Net earnings were $5.0M, up 164% year over year. The effective tax rate was 57.8%.
Operating cash flow was $33.3M (up 56% year over year), 666% of net earnings. Non-cash charges added back $20.3M of depreciation and amortization and $1.3M of share-based compensation. Working capital and other items added $6.7M. Capital expenditures of $4.6M left free cash flow of $28.7M.
Questions
What was Distribution Solutions Group's revenue in the second quarter 2025?
Distribution Solutions Group (DSGR) reported revenue of $502M for the second quarter 2025 (Q2 2025), +14% from a year earlier and +5% from the quarter before.
Was Distribution Solutions Group profitable in the second quarter 2025?
Operating profit was $26.8M (5.3% of revenue) and net earnings $5.0M.