Distribution Solutions Group, Inc. (NASDAQ:DSGR) saw its stock plummet 5.30% in pre-market trading on Thursday following the release of its first quarter 2025 financial results. The company reported revenue growth but fell short of analyst expectations.
For Q1 2025, Distribution Solutions Group posted revenue of $478.03 million, representing a 14.89% increase from $416.09 million in the same period last year. However, this figure missed the analyst consensus estimate of $497.17 million by 3.85%. The company's adjusted earnings per share came in at $0.31, beating the analyst estimate of $0.29 and showing a 24% year-over-year increase from $0.25 in Q1 2024.
Despite the earnings beat, investors appeared to focus on the revenue miss and ongoing economic uncertainties. CEO Bryan King noted in the earnings release that while the company met expectations for the quarter, it faced "macro uncertainties that affected all U.S. companies." The market reaction suggests concerns about the company's ability to meet growth targets in the current economic environment.