Company: DXPE
Filing Date: 2025-05-21
Form Type: CORRESP
Source: 0001020710-25-000098
Chunk: 1

Company: DXP ENTERPRISES INC
Filing Date: 2025-05-21
Form: CORRESP
Chunk 1
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 the most comparable GAAP measures when presenting EBITDA and Adjusted EBITDA with their respective margins and Free Cash flow, respectively.

#### Notes to Consolidated Financial Statements

#### Note 19 – Revenue, page 76
2. Please tell us how you considered including disaggregated revenue by customer sector. In this regard, we note your disclosure on page 23 of the volatility and cyclical nature of your customers’ industries, and discussion on page 35 of the relative increases to your annual results to be driven by industrial divisions and sectors. We further note discussion in your earnings call on March 7, 2025 on different margin levels for certain sectors, such as improved margins from your water and wastewater acquisitions. Refer to ASC 606-10-50-5 and ASC 606-10-55-89 through 91. Please revise or advise accordingly.

Company Response: The Company acknowledges the Staff’s comment and advises the Staff that it believes its disclosures are consistent with the requirements of ASC 606.

In accordance with ASC 606-10-50-5, the Company considered the level of revenue disaggregation that depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. The Company also evaluated the guidance in ASC 606-10-55-89 through 91, which suggests that the extent of disaggregated revenue information depends on the facts and circumstances of the underlying contracts with customers.

The Company believes that disaggregating revenue by its three reportable segments provides meaningful information to investors, aligns with how management evaluates financial performance and allocates resources and meets the objective of ASC 606-10-50-5 as described above.

The Company also advises the Staff that, beginning with the quarter ending June 30, 2025, the Company will update its revenue footnote disclosures to provide additional information regarding recent acquisitions by segment. Furthermore, the Company will enhance its future filings to include additional information and quantitative disclosures to material segment sales fluctuations within the Consolidated Results of Operations section of Management’s Discussion and Analysis (MD&A).

These enhancements are intended to align the financial statement disclosures more closely with discussions provided in the Company’s MD&A section and its quarterly earnings calls, where acquisition activity and its impact on growth and strategic positions are routinely addressed.

#### Note 20 – Segment Reporting, page 77
3. Please disclose the significant expense categories and amounts that are regularly provided to your CODM for each of your reportable segments. Also disclose the total of other segment items that