Distribution Solutions Group, Inc. (DSGR) stock is soaring 5.83% in pre-market trading on Thursday following the release of its third-quarter 2025 financial results. The company reported robust revenue growth and met analyst expectations for adjusted earnings per share.
The specialty distribution company announced Q3 revenue of $518.0 million, representing a 10.7% increase compared to the same period last year. This figure surpassed the analyst consensus estimate of $501.5 million by 3.27%. The strong top-line performance was driven by organic daily sales growth of 6.0% year-over-year, as well as contributions from recent acquisitions.
Distribution Solutions Group reported adjusted earnings per share of $0.40 for the quarter, meeting analyst expectations and showing an 8.11% increase from $0.37 in the same quarter of the previous year. The company's adjusted EBITDA was $48.5 million, or 9.4% of sales, demonstrating solid profitability despite some margin pressure due to product and customer mix dynamics and increased employee-related costs. CEO Bryan King expressed confidence in the company's growth strategy and highlighted strong cash flow generation, with operating cash flow of $38.4 million for the quarter.