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Segment Information
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
Segment Information
Note 14 – 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 combines the operations of our Bolt and Source Atlantic subsidiaries, which distribute 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 36 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 September 30,Nine Months Ended September 30,
(in thousands)2025202420252024
Revenue
Lawson$121,549 $117,957 $366,324 $357,261 
TestEquity206,479 195,244 590,298 579,874 
Gexpro Services130,525 116,141 377,237 321,926 
Canada Branch Division59,977 39,092 166,372 66,058 
Intersegment revenue elimination(572)(415)(1,807)(1,478)
Total revenue$517,958 $468,019 $1,498,424 $1,323,641 
Cost of goods sold
Lawson$55,215 $52,609 $163,182 $160,450 
TestEquity162,879 150,958 462,368 447,608 
Gexpro Services89,609 79,493 259,255 221,341 
Canada Branch Division40,471 26,526 111,012 41,936 
Intersegment cost of goods sold elimination(542)(415)(1,783)(1,478)
Total cost of goods sold$347,632 $309,171 $994,034 $869,857 
Selling, general and administrative expenses
Lawson$60,949 $64,622 $183,466 $185,849 
TestEquity40,965 39,957 116,352 133,328 
Gexpro Services27,036 25,105 78,959 75,489 
Canada Branch Division16,012 10,043 49,464 19,276 
All Other1,745 174 5,607 3,954 
Total operating expenses$146,707 $139,901 $433,848 $417,896 
Operating income (loss)
Lawson$5,385 $726 $19,676 $10,962 
TestEquity2,635 4,329 11,578 (1,062)
Gexpro Services13,880 11,543 39,023 25,096 
Canada Branch Division3,494 2,523 5,896 4,846 
All Other(1,775)(174)(5,631)(3,954)
Total operating income (loss)$23,619 $18,947 $70,542 $35,888 
Reconciliation to income (loss) before income taxes
Interest expense$(13,955)$(15,160)$(42,408)$(39,780)
Change in fair value of earnout liabilities— (858)(1,000)(861)
Other income (expense), net(1,283)(15)(1,377)82 
Income (loss) before income taxes$8,381 $2,914 $25,757 $(4,671)

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 September 30, 2025
Revenue from external customers$121,541 $206,310 $130,192 $59,915 $— $517,958 
Intersegment revenue8 169 333 62 (572)— 
Revenue$121,549 $206,479 $130,525 $59,977 $(572)$517,958 
Three Months Ended September 30, 2024
Revenue from external customers$117,953 $195,210 $115,764 $39,092 $— $468,019 
Intersegment revenue4 34 377 — (415)— 
Revenue$117,957 $195,244 $116,141 $39,092 $(415)$468,019 
Nine Months Ended September 30, 2025
Revenue from external customers$366,268 $589,596 $376,259 $166,301 $— $1,498,424 
Intersegment revenue56 702 978 71 (1,807)— 
Revenue$366,324 $590,298 $377,237 $166,372 $(1,807)$1,498,424 
Nine Months Ended September 30, 2024
Revenue from external customers$357,204 $579,721 $320,658 $66,058 $1,323,641 
Intersegment revenue57 153 1,268 — (1,478)— 
Revenue$357,261 $579,874 $321,926 $66,058 $(1,478)$1,323,641 

Total assets by segment and long-lived assets by geographic area were as follows:
(in thousands)September 30, 2025December 31, 2024
Total assets by segment
Lawson$543,100 $524,077 
TestEquity629,821 654,315 
Gexpro Services351,232 331,811 
Canada Branch Division216,899 199,362 
All Other25,474 17,690 
Total$1,766,526 $1,727,255 
Long-lived assets by geographic area(1)
United States$795,829 $818,100 
Canada141,668 138,218 
Europe31,459 30,345 
Pacific Rim6,196 4,751 
Latin America3,357 3,615 
Other— — 
Total$978,509 $995,029 
(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 September 30,Nine Months Ended September 30,
(in thousands)2025202420252024
Capital expenditures
Lawson$2,706 $1,277 $7,534 $3,481 
TestEquity7,357 2,974 16,646 7,715 
Gexpro Services588 1,260 2,974 2,808 
Canada Branch Division528 240 1,491 790 
All Other— — — — 
Total$11,179 $5,751 $28,645 $14,794 
Depreciation and amortization
Lawson$6,666 $6,533 $20,026 $18,131 
TestEquity8,220 7,460 24,628 22,751 
Gexpro Services3,541 3,840 10,526 11,505 
Canada Branch Division1,615 791 5,179 1,824 
All Other— — — — 
Total$20,042 $18,624 $60,359 $54,211