D&H’s Growth Continues as Fiscal Year 2025 Revenue Rises 27% to Almost $7B

Longtime technology vendor D&H Distributing is continuing its strong growth trajectory, reporting a 27% revenue increase that brings annual sales to nearly $7 billion, according to its newly released fiscal year 2025 performance figures.

The privately held company didn’t disclose full category-by-category earnings, but in a press release, it highlighted a 283% increase in its professional services business, a 41% rise in security services, and a 29% jump in cloud sales. In addition, its SMB services segment grew 23% - marking the largest SMB revenue gain in the company’s history.

Serving customers across North America, D&H said it continues to invest in training and resources that help partners capitalize on emerging technologies like AI. The company is also preparing to launch immersive experiences where partners can develop hands-on expertise in AI, cloud, data center, security, and more.

Dan Schwab, co-president of D&H Distributing, told ChannelE2E that the company’s growth stems from its focus on close partner relationships and tailored services.

“With a people-first culture at our core, we’re celebrating 27 years as an ESOP (Employee Stock Ownership Plan) company,” said Schwab. “As a privately held ESOP, we have the freedom to pursue long-term strategies that promote sustainable growth rather than chasing short-term shareholder returns.”

Because D&H operates as an ESOP, each employee owns a stake in the company and is motivated to “think like an owner,” Schwab said. “The ESOP model fosters a culture of dedication and excellence and inspires our co-owners to consistently deliver their best and contribute ideas at every level.”

Navigating Tariffs and Economic Disruption

Asked about the impact of tariffs and broader economic actions under the Trump administration, Schwab said, “As we’ve all experienced, the tariff situation is fluid.”

D&H is taking action to reduce the impact of these disruptions on its customers. “What remains constant is our commitment to helping partners navigate this with confidence. We do that by closely monitoring developments and staying in constant contact with our vendor partners so we can respond in real time.”

The company is also working with those partners to manage costs, maintain inventory, and offer alternatives to minimize disruption.

“Since our inception in 1918, our focus has been on people and partners,” said Schwab. “Being in business for 107 years is a testament to our ability to evolve. We don’t just chase the latest technology - we focus on serving underrepresented market needs and acting as an extension of our partners’ teams.”

Supporting MSP Growth

D&H’s ongoing growth, Schwab said, is also fueled by strong relationships with MSPs and other channel partners.

“At D&H, we remain focused on providing VARs and MSPs with the support, services, and expertise they need to thrive,” he told ChannelE2E. “We continue to add MSP partners and support them through our Managed Services Group - a dedicated team that helps current and aspiring MSPs navigate the challenges of running and scaling their businesses.”

The company also offers customized credit programs and pre- and post-sales support through its Technology Solutions team.

“We differentiate ourselves with an evolving set of services and solutions focused on what our partners need to grow their practices and seize new opportunities,” said Schwab.

Looking ahead, D&H plans to stay the course. “Our long-term goal is to keep evolving as a distributor -offering the best service to our partners, backed by the best people, in a culture that empowers them to succeed.”