The Q1 miss extends a pattern of declining profitability — adjusted EPS has missed consensus in 4 of the last 4 quarters. With operating cash flow turning negative, net leverage rising to 3.8x, and no guidance provided, the stock faces continued pressure. Watch for any pre-announcement or Q2 update on tariff impact mitigation.
Price Chart
Executive Summary
DSGR reported Q1 2026 revenue of $496.0M (+3.8% YoY), slightly above the $489.3M consensus, but GAAP EPS of $0.01 and non-GAAP adjusted diluted EPS of $0.24 both missed the $0.28 consensus estimate. Operating income fell 32.2% YoY to $13.6M and adjusted EBITDA margin contracted 140bps to 7.6%, with management citing tariff headwinds, sales mix shifts, and timing expenses as the primary drags.
Key Financial Metrics
Key Facts
- Revenue of $495,995,000 (+3.8% YoY) vs $489.3M consensus — slight beat
- GAAP diluted EPS of $0.01 vs $0.28 consensus — significant miss
- Non-GAAP adjusted diluted EPS of $0.24 vs $0.31 YoY and $0.28 consensus
- Operating income fell 32.2% YoY to $13.6M; adjusted operating income down 15.3%
- Adjusted EBITDA margin contracted 140bps YoY to 7.6% (9.0% in Q1 2025)
- Gross margin declined from 34.3% to 32.9% due to tariff costs and mix shifts
- Cash used in operations was -$20.4M vs -$4.8M in Q1 2025
- Net debt leverage increased to 3.8x from 3.5x at year-end 2025
- Completed small acquisition of Eastern Valve Control Specialties for undisclosed amount
Financial Impact
GAAP EPS of $0.01 vs $0.28 consensus (-96.4% miss); adjusted EPS of $0.24 vs $0.28 consensus (-14.3% miss); revenue $496.0M vs $489.3M consensus (+1.4% beat)
Risk Factors
- Tariff costs on inbound shipments are compressing gross margins with no clear offset
- Negative operating cash flow of -$20.4M in Q1 raises liquidity concerns at 3.8x leverage
- Four consecutive quarters of consensus EPS misses erodes investor confidence
- No formal guidance provided — uncertainty around full-year outlook
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000703604-26-000023 |
| Document: laws-20260430.htm | 0000703604-26-000023 |
| Document: 0000703604-26-000023-index-headers.html | 0000703604-26-000023 |
| Document: 0000703604-26-000023-index.html | 0000703604-26-000023 |
| Document: 0000703604-26-000023.txt | 0000703604-26-000023 |
| 8-K Data (Synthetic) | 0000703604-26-000023 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 10, 2026 22d ago | DEFA14A | $34.75 $34.84 | ▲ +0.26% | ▲ +0.76% | $34.98 (+0.66%) |
Sep 10, 2026 22d ago | 8-K | $34.75 $34.84 | ▲ +0.26% | ▲ +0.76% | $34.98 (+0.66%) |
Sep 1, 2026 4w ago | PREM14A | $34.70 $34.75 | ▲ +0.14% | ▲ +0.06% | $34.98 (+0.81%) |
Aug 6, 2026 8w ago | 8-K | $34.82 $34.86 | ▲ +0.11% | ▼ −1.10% | $34.98 (+0.46%) |
Jun 11, 2026 16w ago | Institutional Cluster | $27.70 $27.39 | ▼ −1.12% | ▼ −1.55% | $34.98 (+26.28%) |
Apr 30, 2026 22w ago | 8-K | $27.06 $27.49 | ▼ −1.59% | ▲ +0.14% | $34.98 (−29.27%) |
Mar 5, 2026 30w ago | 8-K | $21.90 $19.76 | ▼ −9.77% | ▼ −7.53% | $34.98 (+59.73%) |
US Market Status
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