Distribution Solutions Group, Inc. (DSG) reported significant financial performance improvements in its latest quarterly filing, with total revenue reaching $502.4 million for the three months ended June 30, 2025, a 14.3% increase from $439.5 million in the same period last year. The company attributed this growth to both acquisitions completed in 2024 and organic revenue increases, which contributed $48.8 million and $14.1 million, respectively. Net income for the quarter was $5.0 million, compared to $1.9 million in the prior year, reflecting a notable recovery in profitability.

The company’s cost of goods sold also rose, totaling $332.4 million, up from $288.0 million a year earlier, leading to a gross profit of $170.1 million. Selling, general, and administrative expenses increased to $143.3 million from $137.4 million, resulting in an operating income of $26.8 million, compared to $14.2 million in the previous year. The increase in operating income was driven by the successful integration of acquisitions and improved operational efficiencies.

Strategically, DSG has been active in expanding its market presence through acquisitions, including the purchase of Source Atlantic, S&S Automotive, and others in 2024. These acquisitions have allowed DSG to enhance its product offerings and geographic reach, particularly in the Canadian market. The company now operates through four reportable segments: Lawson, TestEquity, Gexpro Services, and Canada Branch Division, with the latter showing a remarkable revenue increase of 286% year-over-year, largely due to the Source Atlantic acquisition.

Operationally, DSG reported a total employee headcount of 1,200 as of June 30, 2025, reflecting its growth strategy and the integration of new businesses. The company also noted a significant increase in customer engagement metrics, with a rise in customer counts across its segments. The company’s cash and cash equivalents stood at $47.4 million, down from $66.5 million at the end of 2024, while total assets increased to $1.75 billion, indicating a solid financial foundation for future growth.

Looking ahead, DSG remains optimistic about its growth trajectory, focusing on organic growth strategies and further acquisitions that align with its business model. The company anticipates continued revenue growth driven by its diversified product offerings and enhanced operational capabilities, despite potential challenges from market conditions and inflationary pressures.

About Distribution Solutions Group, Inc.

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