Filing Flows › Distribution Solutions Group (DSGR) › Q3 2026
Distribution Solutions Group (DSGR) Q3 2026 earnings results (third quarter 2026)
10-Q filed Nov 5, 2026
Distribution Solutions Group (DSGR) reported revenue of $574M for the third quarter 2026 (Q3 2026), +11% from a year earlier and +3% from the quarter before. Operating margin was 4.4%, net earnings $8.9M (1.6% of revenue).
Distribution Solutions Group, Q3 2026: revenue $574M (+11% year over year), operating margin 4.4%, net earnings $8.9M, operating cash flow $18.7M. The chart follows the revenue to costs, profit and cash.
| Q3 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $574M | +3% | +11% |
| Gross profit | $184M | +2% | +8% |
| Operating profit | $25.2M | -9% | +7% |
| Net earnings | $8.9M | +5% | +38% |
| Operating cash flow | $18.7M | -15% | -51% |
| Free cash flow | $16.4M | -0.1% | -50% |
What changed
Revenue was $573.6M in Q3 2026, up 11% year over year and up 3% from the previous quarter. TestEquity was the largest line at 42% of revenue. TestEquity added $35.8M year over year (up 17%), 64% of the total change.
Gross margin was 32.0%, down 0.8 points from Q3 2025. Operating profit was $25.2M, a 4.4% margin (down 0.2 points year over year). Of the extra revenue versus Q3 2025, 3% reached operating profit, below the 5% margin then. Operating expenses grew 8% against revenue growth of 11%. Net earnings were $8.9M, up 38% year over year. The effective tax rate was 21.0%.
Operating cash flow was $18.7M (down 51% year over year), 211% of net earnings. Non-cash charges added back $20.2M of depreciation and amortization and $2.3M of share-based compensation. Working capital and other items used $12.6M. Capital expenditures of $2.3M left free cash flow of $16.4M.
Questions
What was Distribution Solutions Group's revenue in the third quarter 2026?
Distribution Solutions Group (DSGR) reported revenue of $574M for the third quarter 2026 (Q3 2026), +11% from a year earlier and +3% from the quarter before.
Was Distribution Solutions Group profitable in the third quarter 2026?
Operating profit was $25.2M (4.4% of revenue) and net earnings $8.9M.