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Segment Information | 9 Months Ended
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Sep. 30, 2025
Segment Reporting [Abstract] |
Segment Information | Note 14 – Segment Information The Company’s CODM is the Chief Executive Officer of DSG. For each reportable segment, the CODM uses segment operating income (loss) to allocate resources (including employees and financial resources) in a way to manage and grow margins. The Company has four reporting segments: Lawson, TestEquity, Gexpro Services and Canada Branch Division. A description of our reportable segments is as follows: Lawson is a distributor of specialty products and services to the industrial, commercial, institutional and governmental MRO marketplace. Lawson primarily distributes MRO products to its customers through a network of sales representatives and an inside sales channel throughout the United States and Canada. TestEquity is a distributor of test and measurement equipment and solutions, industrial and electronic production supplies, vendor managed inventory programs, and converting, fabrication and adhesive solutions from its leading manufacturer partners supporting the aerospace and defense, wireless and communication, semiconductors, industrial electronics and automotive, and electronics manufacturing industries. Gexpro Services is a global supply chain solutions provider, specializing in the development of mission critical production line management, aftermarket and field installation programs. Canada Branch Division combines the operations of our Bolt and Source Atlantic subsidiaries, which distribute industrial MRO supplies, safety products, fasteners, power tools and related value-add services to the Canadian MRO market through the sale of products and services via warehouse shipments and to its walk-up customers throu gh 36 branch loc ations. The Company also has an “All Other” category which includes unallocated DSG holding company costs that are not directly attributable to the ongoing operating activities of our reportable segments. There is no revenue associated with the All Other category. Financial information for the Company’s segments and reconciliations of that information to the unaudited condensed consolidated financial statements is presented below.
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(in thousands) | 2025 |  | 2024 |  | 2025 |  | 2024
Revenue |  |  |  |  |  |  |
Lawson | $ | 121,549 |  |  | $ | 117,957 |  |  | $ | 366,324 |  |  | $ | 357,261 |
TestEquity | 206,479 |  |  | 195,244 |  |  | 590,298 |  |  | 579,874 |
Gexpro Services | 130,525 |  |  | 116,141 |  |  | 377,237 |  |  | 321,926 |
Canada Branch Division | 59,977 |  |  | 39,092 |  |  | 166,372 |  |  | 66,058 |
Intersegment revenue elimination | (572) |  |  | (415) |  |  | (1,807) |  |  | (1,478) |
Total revenue | $ | 517,958 |  |  | $ | 468,019 |  |  | $ | 1,498,424 |  |  | $ | 1,323,641 |
Cost of goods sold |  |  |  |  |  |  |
Lawson | $ | 55,215 |  |  | $ | 52,609 |  |  | $ | 163,182 |  |  | $ | 160,450 |
TestEquity | 162,879 |  |  | 150,958 |  |  | 462,368 |  |  | 447,608 |
Gexpro Services | 89,609 |  |  | 79,493 |  |  | 259,255 |  |  | 221,341 |
Canada Branch Division | 40,471 |  |  | 26,526 |  |  | 111,012 |  |  | 41,936 |
Intersegment cost of goods sold elimination | (542) |  |  | (415) |  |  | (1,783) |  |  | (1,478) |
Total cost of goods sold | $ | 347,632 |  |  | $ | 309,171 |  |  | $ | 994,034 |  |  | $ | 869,857 |
Selling, general and administrative expenses |  |  |  |  |  |  |
Lawson | $ | 60,949 |  |  | $ | 64,622 |  |  | $ | 183,466 |  |  | $ | 185,849 |
TestEquity | 40,965 |  |  | 39,957 |  |  | 116,352 |  |  | 133,328 |
Gexpro Services | 27,036 |  |  | 25,105 |  |  | 78,959 |  |  | 75,489 |
Canada Branch Division | 16,012 |  |  | 10,043 |  |  | 49,464 |  |  | 19,276 |
All Other | 1,745 |  |  | 174 |  |  | 5,607 |  |  | 3,954 |
Total operating expenses | $ | 146,707 |  |  | $ | 139,901 |  |  | $ | 433,848 |  |  | $ | 417,896 |
Operating income (loss) |  |  |  |  |  |  |
Lawson | $ | 5,385 |  |  | $ | 726 |  |  | $ | 19,676 |  |  | $ | 10,962 |
TestEquity | 2,635 |  |  | 4,329 |  |  | 11,578 |  |  | (1,062) |
Gexpro Services | 13,880 |  |  | 11,543 |  |  | 39,023 |  |  | 25,096 |
Canada Branch Division | 3,494 |  |  | 2,523 |  |  | 5,896 |  |  | 4,846 |
All Other | (1,775) |  |  | (174) |  |  | (5,631) |  |  | (3,954) |
Total operating income (loss) | $ | 23,619 |  |  | $ | 18,947 |  |  | $ | 70,542 |  |  | $ | 35,888 |
Reconciliation to income (loss) before income taxes |  |  |  |  |  |  |
Interest expense | $ | (13,955) |  |  | $ | (15,160) |  |  | $ | (42,408) |  |  | $ | (39,780) |
Change in fair value of earnout liabilities | — |  |  | (858) |  |  | (1,000) |  |  | (861) |
Other income (expense), net | (1,283) |  |  | (15) |  |  | (1,377) |  |  | 82 |
Income (loss) before income taxes | $ | 8,381 |  |  | $ | 2,914 |  |  | $ | 25,757 |  |  | $ | (4,671) |
Segment revenue includes revenue from sales to external customers and intersegment revenue from sales transactions between segments. The Company accounts for intersegment sales similar to third party transactions that are conducted on an arm’s-length basis and reflect current market prices. Intersegment revenue is eliminated in consolidation. Segment revenue and the elimination of intersegment revenue was as follows:
(in thousands) |  | Lawson |  | TestEquity |  | Gexpro Services |  | Canada Branch Division |  | Elimination |  | Total
Three Months Ended September 30, 2025 |  |  |  |  |  |  |  |  |  |  |  |
Revenue from external customers |  | $ | 121,541 |  |  | $ | 206,310 |  |  | $ | 130,192 |  |  | $ | 59,915 |  |  | $ | — |  |  | $ | 517,958 |
Intersegment revenue |  | 8 |  |  | 169 |  |  | 333 |  |  | 62 |  |  | (572) |  |  | — |
Revenue |  | $ | 121,549 |  |  | $ | 206,479 |  |  | $ | 130,525 |  |  | $ | 59,977 |  |  | $ | (572) |  |  | $ | 517,958 |
Three Months Ended September 30, 2024 |  |  |  |  |  |  |  |  |  |  |  |
Revenue from external customers |  | $ | 117,953 |  |  | $ | 195,210 |  |  | $ | 115,764 |  |  | $ | 39,092 |  |  | $ | — |  |  | $ | 468,019 |
Intersegment revenue |  | 4 |  |  | 34 |  |  | 377 |  |  | — |  |  | (415) |  |  | — |
Revenue |  | $ | 117,957 |  |  | $ | 195,244 |  |  | $ | 116,141 |  |  | $ | 39,092 |  |  | $ | (415) |  |  | $ | 468,019 |
Nine Months Ended September 30, 2025 |  |  |  |  |  |  |  |  |  |  |  |
Revenue from external customers |  | $ | 366,268 |  |  | $ | 589,596 |  |  | $ | 376,259 |  |  | $ | 166,301 |  |  | $ | — |  |  | $ | 1,498,424 |
Intersegment revenue |  | 56 |  |  | 702 |  |  | 978 |  |  | 71 |  |  | (1,807) |  |  | — |
Revenue |  | $ | 366,324 |  |  | $ | 590,298 |  |  | $ | 377,237 |  |  | $ | 166,372 |  |  | $ | (1,807) |  |  | $ | 1,498,424 |
Nine Months Ended September 30, 2024 |  |  |  |  |  |  |  |  |  |  |  |
Revenue from external customers |  | $ | 357,204 |  |  | $ | 579,721 |  |  | $ | 320,658 |  |  | $ | 66,058 |  |  |  |  | $ | 1,323,641 |
Intersegment revenue |  | 57 |  |  | 153 |  |  | 1,268 |  |  | — |  |  | (1,478) |  |  | — |
Revenue |  | $ | 357,261 |  |  | $ | 579,874 |  |  | $ | 321,926 |  |  | $ | 66,058 |  |  | $ | (1,478) |  |  | $ | 1,323,641 |
Total assets by segment and long-lived assets by geographic area were as follows:
(in thousands) | September 30, 2025 |  | December 31, 2024
Total assets by segment |  |  |
Lawson | $ | 543,100 |  |  | $ | 524,077 |
TestEquity | 629,821 |  |  | 654,315 |
Gexpro Services | 351,232 |  |  | 331,811 |
Canada Branch Division | 216,899 |  |  | 199,362 |
All Other | 25,474 |  |  | 17,690 |
Total | $ | 1,766,526 |  |  | $ | 1,727,255 |
Long-lived assets by geographic area(1) |  |  |
United States | $ | 795,829 |  |  | $ | 818,100 |
Canada | 141,668 |  |  | 138,218 |
Europe | 31,459 |  |  | 30,345 |
Pacific Rim | 6,196 |  |  | 4,751 |
Latin America | 3,357 |  |  | 3,615 |
Other | — |  |  | — |
Total | $ | 978,509 |  |  | $ | 995,029 |
(1) Long-lived assets include property, plant and equipment, rental equipment, goodwill, intangibles, right of use operating lease assets, and other assets. Refer to Note 4 – Revenue Recognition for disaggregated revenue by geographic area. Capital expenditures and depreciation and amortization by segment were as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(in thousands) | 2025 |  | 2024 |  | 2025 |  | 2024
Capital expenditures |  |  |  |  |  |  |
Lawson | $ | 2,706 |  |  | $ | 1,277 |  |  | $ | 7,534 |  |  | $ | 3,481 |
TestEquity | 7,357 |  |  | 2,974 |  |  | 16,646 |  |  | 7,715 |
Gexpro Services | 588 |  |  | 1,260 |  |  | 2,974 |  |  | 2,808 |
Canada Branch Division | 528 |  |  | 240 |  |  | 1,491 |  |  | 790 |
All Other | — |  |  | — |  |  | — |  |  | — |
Total | $ | 11,179 |  |  | $ | 5,751 |  |  | $ | 28,645 |  |  | $ | 14,794 |
Depreciation and amortization |  |  |  |  |  |  |
Lawson | $ | 6,666 |  |  | $ | 6,533 |  |  | $ | 20,026 |  |  | $ | 18,131 |
TestEquity | 8,220 |  |  | 7,460 |  |  | 24,628 |  |  | 22,751 |
Gexpro Services | 3,541 |  |  | 3,840 |  |  | 10,526 |  |  | 11,505 |
Canada Branch Division | 1,615 |  |  | 791 |  |  | 5,179 |  |  | 1,824 |
All Other | — |  |  | — |  |  | — |  |  | — |
Total | $ | 20,042 |  |  | $ | 18,624 |  |  | $ | 60,359 |  |  | $ | 54,211 |

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