Revenue and Sales Performance - Revenue increased by $49.9 million, or 10.7%, to $518.0 million, driven by $23.3 million from three acquisitions closed in the second half of 2024[10] - Organic daily sales grew by 6.0% year-over-year and 3.1% sequentially over the second quarter of 2025[10] - Revenue for the three months ended September 30, 2025, was $517,958 thousand, an increase of 10.6% compared to $468,019 thousand for the same period in 2024[19] - Total revenue from the TestEquity segment for the three months ended September 30, 2025, was $206,479 thousand, up from $195,244 thousand in 2024, reflecting an increase of 5.6%[24] - The company's total revenue for Q3 2025 was $517,958,000, an increase of 10.7% from $468,019,000 in Q3 2024[42] Profitability and Income - Operating income was $23.6 million, a 24.7% increase from $18.9 million in the prior year quarter[10] - Operating income for the three months ended September 30, 2025, was $23,619 thousand, representing a 24.3% increase from $18,947 thousand in the prior year[19] - Diluted net income per share was $0.14, down from $0.46 in the year-ago quarter, while non-GAAP adjusted diluted earnings per share was $0.40[10] - Net income for the nine months ended September 30, 2025, was $14,716 thousand, compared to a net income of $18,593 thousand in 2024, indicating a decrease of 21.0%[22] - Basic income per share for the three months ended September 30, 2025, was $0.14, down from $0.47 in the same period of 2024[19] Cash Flow and Liquidity - Operating cash flow for the quarter was $38.4 million, with net capital expenditures of $7.7 million[10] - Total liquidity at the end of the quarter was over $335 million, consisting of $82.7 million in cash and $252.7 million available under the credit facility[5] - Cash and cash equivalents at the end of the period were $69,214 thousand, an increase from $61,344 thousand at the end of September 2024[22] - The company reported a net cash provided by operating activities of $66,906 thousand for the nine months ended September 30, 2025, compared to $10,736 thousand in 2024[22] Cost and Expenses - Adjusted EBITDA totaled $48.5 million, or 9.4% of sales, compared to $49.1 million, or 10.5% of sales in the prior year quarter[10] - Non-GAAP adjusted EBITDA for the three months ended September 30, 2025, was $48,457 thousand, slightly down from $49,110 thousand in 2024[28] - The adjusted EBITDA as a percentage of revenue for Q3 2025 was 9.4%, down from 10.5% in Q3 2024[42] - The gross profit adjustments for Q3 2025 included $1,126,000 related to inventory step-up, while total selling, general and administrative expenses adjustments were $16,446,000[38] - The company incurred interest expenses of $13,955 thousand for the three months ended September 30, 2025, compared to $15,160 thousand in the same period of 2024, a decrease of 8.0%[19] Strategic Outlook and Challenges - The company maintains a cautious outlook for the fourth quarter due to tougher year-over-year comparisons and ongoing economic uncertainty[5] - The company continues to focus on strategic projects and non-recurring items, with other non-recurring costs totaling $215,000 in Q3 2025[41] Other Financial Metrics - The Canada Branch Division achieved a margin improvement to 9.6% compared to 6.5% in the second quarter[4] - The company ended the quarter with no outstanding revolver debt and a net debt leverage of 3.5x[5] - For Q3 2025, Distribution Solutions Group, Inc. reported a non-GAAP adjusted operating income of $40,065,000, compared to $42,458,000 in Q3 2024, reflecting a decrease of 5.6%[38] - Stock-based compensation expenses were $2,400,000 in Q3 2025, slightly down from $2,432,000 in Q3 2024[41] - Acquisition-related costs for Q3 2025 amounted to $87,000, a significant decrease from $2,901,000 in Q3 2024[41]
DSG(DSGR) - 2025 Q3 - Quarterly Results