Company: DXPE
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001020710-25-000137
Chunk: 108

Company: DXP ENTERPRISES INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 108
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, adjustments and non-recurring items because we believe these items do not directly reflect our underlying operations.

We define and calculate EBITDA Margin as EBITDA divided by sales. We define and calculate Adjusted EBITDA Margin as Adjusted EBITDA divided by sales.

The following table sets forth the reconciliation of EBITDA, EBITDA Margin, Adjusted EBITDA, and Adjusted EBITDA Margin to the most comparable U.S. GAAP financial measure (in thousands):

Three Months Ended June 30,Six Months Ended June 30,2025202420252024Net income attributable to DXP Enterprises, Inc.$23,612 $16,693 $44,201 $28,025 Plus: Interest expense14,744 15,384 29,404 30,928 Plus: Provision for income tax expense7,984 6,310 14,568 10,534 Plus: Depreciation and amortization9,490 8,127 18,624 15,665 EBITDA$55,830 $46,514 $106,797 $85,152 Plus: other non-recurring items(1)— 500 235 1,342 Plus: stock compensation expense1,483 1,212 2,800 2,076 Adjusted EBITDA$57,313 $48,226 $109,832 $88,570 Operating Income Margin9.2 %8.4 %8.9 %7.7 %Net Income Margin4.7 %3.7 %4.5 %3.3 %EBITDA Margin11.2 %10.4 %11.0 %9.9 %Adjusted EBITDA Margin11.5 %10.8 %11.3 %10.3 %(1) Other non-recurring items includes unique acquisition integration costs and other non-cash, non-recurring costs.

30

Free Cash Flow

We define and calculate free cash flow as net cash (used in) provided by operating activities less purchases of property and equipment.

The following table sets forth the reconciliation of Free Cash Flow to the most comparable U.S. GAAP financial measure (in thousands):

Three Months Ended June 30,Six Months Ended June 30,2025202420252024Net cash provided by operating activities$18,646 $14