What Happened?

Shares of industrial and safety product distributor Distribution Solutions (NASDAQ:DSGR) fell 14.7% in the afternoon session after the company reported weak first quarter 2025 results which included a significant revenue miss and EBITDA falling short of Wall Street's estimates. Sales growth was largely acquisition-driven, with organic daily sales rising just 4.3% and actually slipping sequentially, reflecting soft underlying demand across core segments. Overall, this was a weaker quarter.

The shares closed the day at $24.22, down 7.1% from previous close.

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What The Market Is Telling Us

Distribution Solutions’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. Moves this big are rare for Distribution Solutions and indicate this news significantly impacted the market’s perception of the business.

Distribution Solutions is down 28.2% since the beginning of the year, and at $24.22 per share, it is trading 40.7% below its 52-week high of $40.85 from November 2024. Investors who bought $1,000 worth of Distribution Solutions’s shares at the IPO in April 2022 would now be looking at an investment worth $1,295.

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