v3.26.1
Segment Information
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Information
Note 13 – Segment Information

The Company’s chief operating decision maker (“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 38 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 June 30,Six Months Ended June 30,
(in thousands)2026202520262025
Revenue
Lawson$125,498 $124,313 $249,234 $244,775 
TestEquity228,994 195,046 433,170 383,819 
Gexpro Services140,146 127,807 257,794 246,712 
Canada Branch Division63,717 55,852 114,739 106,395 
Intersegment revenue elimination(621)(581)(1,208)(1,235)
Total revenue$557,734 $502,437 $1,053,729 $980,466 
Cost of goods sold
Lawson$61,100 $55,739 $119,849 $107,967 
TestEquity178,068 152,473 336,650 299,489 
Gexpro Services96,615 87,847 178,506 169,646 
Canada Branch Division42,671 36,895 76,483 70,541 
Intersegment cost of goods sold elimination(856)(601)(1,234)(1,241)
Total cost of goods sold$377,598 $332,353 $710,254 $646,402 
Selling, general and administrative expenses
Lawson$61,856 $60,599 $123,787 $122,517 
TestEquity40,158 37,760 81,705 75,387 
Gexpro Services28,999 26,058 56,355 51,923 
Canada Branch Division17,217 17,206 34,041 33,452 
All Other4,038 1,635 6,089 3,862 
Total operating expenses$152,268 $143,258 $301,977 $287,141 
Operating income (loss)
Lawson$2,542 $7,975 $5,598 $14,291 
TestEquity10,768 4,813 14,815 8,943 
Gexpro Services14,532 13,902 22,933 25,143 
Canada Branch Division3,829 1,751 4,215 2,402 
All Other(3,803)(1,615)(6,063)(3,856)
Total operating income (loss)$27,868 $26,826 $41,498 $46,923 
Reconciliation to income (loss) before income taxes
Interest expense$(12,991)$(14,238)$(25,162)$(28,453)
Change in fair value of earnout liabilities— — — (1,000)
Other income (expense), net(486)(726)(1,188)(94)
Income (loss) before income taxes$14,391 $11,862 $15,148 $17,376 

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 June 30, 2026
Revenue from external customers$125,403 $228,921 $139,727 $63,683 $— $557,734 
Intersegment revenue95 73 419 34 (621)— 
Revenue$125,498 $228,994 $140,146 $63,717 $(621)$557,734 
Three Months Ended June 30, 2025
Revenue from external customers$124,287 $194,830 $127,474 $55,846 $— $502,437 
Intersegment revenue26 216 333 6 (581)— 
Revenue$124,313 $195,046 $127,807 $55,852 $(581)$502,437 
Six Months Ended June 30, 2026
Revenue from external customers$249,092 $432,685 $257,270 $114,682 $— $1,053,729 
Intersegment revenue142 485 524 57 (1,208)— 
Revenue$249,234 $433,170 $257,794 $114,739 $(1,208)$1,053,729 
Six Months Ended June 30, 2025
Revenue from external customers$244,727 $383,286 $246,067 $106,386 $— $980,466 
Intersegment revenue48 533 645 9 (1,235)— 
Revenue$244,775 $383,819 $246,712 $106,395 $(1,235)$980,466 

Total assets by segment and long-lived assets by geographic area were as follows:
(in thousands)June 30, 2026December 31, 2025
Total assets by segment
Lawson$525,552 $548,169 
TestEquity668,795 624,829 
Gexpro Services384,458 351,552 
Canada Branch Division227,817 210,625 
All Other10,669 13,446 
Total$1,817,291 $1,748,621 
Long-lived assets by geographic area(1)
United States$773,223 $796,554 
Canada150,055 142,183 
Europe29,865 31,006 
Pacific Rim5,550 5,967 
Latin America2,927 3,224 
Other— — 
Total$961,620 $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 June 30,Six Months Ended June 30,
(in thousands)2026202520262025
Capital expenditures
Lawson$1,726 $852 $3,093 $4,828 
TestEquity7,146 6,101 13,607 9,289 
Gexpro Services747 1,399 1,463 2,386 
Canada Branch Division2,116 607 2,484 963 
All Other— — — — 
Total$11,735 $8,959 $20,647 $17,466 
Depreciation and amortization
Lawson$6,744 $6,808 $13,458 $13,360 
TestEquity8,246 8,280 16,526 16,408 
Gexpro Services3,041 3,532 6,170 6,985 
Canada Branch Division1,834 1,718 3,435 3,564 
All Other— — — — 
Total$19,865 $20,338 $39,589 $40,317