Filing Flows › Distribution Solutions Group (DSGR) › Q3 2025
Distribution Solutions Group (DSGR) Q3 2025 earnings results (third quarter 2025)
10-Q filed Oct 30, 2025
Distribution Solutions Group (DSGR) reported revenue of $518M for the third quarter 2025 (Q3 2025), +11% from a year earlier and +3% from the quarter before. Operating margin was 4.6%, net earnings $6.5M (1.2% of revenue).
Distribution Solutions Group, Q3 2025: revenue $518M (+11% year over year), operating margin 4.6%, net earnings $6.5M, operating cash flow $38.4M. The chart follows the revenue to costs, profit and cash.
| Q3 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $518M | +3% | +11% |
| Gross profit | $170M | +0.1% | +7% |
| Operating profit | $23.6M | -12% | +25% |
| Net earnings | $6.5M | +29% | -71% |
| Operating cash flow | $38.4M | +15% | — |
| Free cash flow | $32.9M | +15% | — |
What changed
Revenue was $518.0M in Q3 2025, up 11% year over year and up 3% from the previous quarter. TestEquity was the largest line at 40% of revenue. Canada Branch Division added $20.8M year over year (up 53%), 42% of the total change.
Gross margin was 32.9%, down 1.1 points from a year earlier. Operating profit was $23.6M, a 4.6% margin (up 0.5 points year over year). Of the extra revenue versus a year earlier, 9% reached operating profit, above the 4% margin then. Operating expenses grew 5% against revenue growth of 11%. Net earnings were $6.5M, down 71% year over year. The effective tax rate was 23.0%.
Operating cash flow was $38.4M, 595% of net earnings. Non-cash charges added back $20.0M of depreciation and amortization and $2.4M of share-based compensation. Working capital and other items added $9.5M. Capital expenditures of $5.5M left free cash flow of $32.9M.
Questions
What was Distribution Solutions Group's revenue in the third quarter 2025?
Distribution Solutions Group (DSGR) reported revenue of $518M for the third quarter 2025 (Q3 2025), +11% from a year earlier and +3% from the quarter before.
Was Distribution Solutions Group profitable in the third quarter 2025?
Operating profit was $23.6M (4.6% of revenue) and net earnings $6.5M.