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Segment Information
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Information
Note 13 – 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 is a distributor of 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 through 35 branch locations.

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 March 31,
(in thousands)20262025
Revenue
Lawson$123,736 $120,462 
TestEquity204,176 188,773 
Gexpro Services117,648 118,905 
Canada Branch Division51,022 50,543 
Intersegment revenue elimination(587)(654)
Total revenue$495,995 $478,029 
Cost of goods sold
Lawson$58,749 $52,228 
TestEquity158,582 147,016 
Gexpro Services81,891 81,799 
Canada Branch Division33,812 33,646 
Intersegment cost of goods sold elimination(378)(640)
Total cost of goods sold$332,656 $314,049 
Selling, general and administrative expenses
Lawson$61,931 $61,918 
TestEquity41,547 37,627 
Gexpro Services27,356 25,865 
Canada Branch Division16,824 16,246 
All Other2,051 2,227 
Total operating expenses$149,709 $143,883 
Operating income (loss)
Lawson$3,056 $6,316 
TestEquity4,047 4,130 
Gexpro Services8,401 11,241 
Canada Branch Division386 651 
All Other(2,260)(2,241)
Total operating income (loss)$13,630 $20,097 
Reconciliation to income (loss) before income taxes
Interest expense$(12,171)$(14,215)
Change in fair value of earnout liabilities— (1,000)
Other income (expense), net(702)632 
Income (loss) before income taxes$757 $5,514 

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)LawsonTestEquityGexpro ServicesCanada Branch DivisionEliminationTotal
Three Months Ended March 31, 2026
Revenue from external customers$123,689 $203,764 $117,543 $50,999 $— $495,995 
Intersegment revenue47 412 105 23 (587)— 
Revenue$123,736 $204,176 $117,648 $51,022 $(587)$495,995 
Three Months Ended March 31, 2025
Revenue from external customers$120,440 $188,456 $118,593 $50,540 $— $478,029 
Intersegment revenue22 317 312 3 (654)— 
Revenue$120,462 $188,773 $118,905 $50,543 $(654)$478,029 

Total assets by segment and long-lived assets by geographic area were as follows:
(in thousands)March 31, 2026December 31, 2025
Total assets by segment
Lawson$539,809 $548,169 
TestEquity638,485 624,829 
Gexpro Services371,250 351,552 
Canada Branch Division224,182 210,625 
All Other16,278 13,446 
Total$1,790,004 $1,748,621 
Long-lived assets by geographic area(1)
United States$783,709 $796,554 
Canada152,159 142,183 
Europe30,808 31,006 
Pacific Rim5,733 5,967 
Latin America3,058 3,224 
Other— — 
Total$975,467 $978,934 
(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 March 31,
(in thousands)20262025
Capital expenditures
Lawson$1,367 $3,976 
TestEquity6,461 3,188 
Gexpro Services716 987 
Canada Branch Division368 356 
All Other— — 
Total$8,912 $8,507 
Depreciation and amortization
Lawson$6,714 $6,552 
TestEquity8,280 8,128 
Gexpro Services3,129 3,453 
Canada Branch Division1,601 1,846 
All Other— — 
Total$19,724 $19,979