What is DNOW's gross margin?

DNOW (DNOW) reported gross margin of 15.6% in Q1 2026.

How has DNOW's gross margin changed year-over-year?

DNOW's gross margin decreased by 30.3% year-over-year, from 22.4% to 15.6%.

What is the long-term trend for DNOW's gross margin?

Over 5 years (2020 to 2025), DNOW's gross margin has grown at a -1.3% compound annual growth rate (CAGR), from 18% to 16.9%.

What does gross margin mean?

Gross profit (revenue minus cost of revenue) as a percentage of revenue, on a trailing-twelve-month basis. Measures how much of each sales dollar survives the direct cost of producing the goods or services sold.

DNOW DNOW Gross margin

Gross margin at other companies

NOVA, Inc.NOV

19.5%-3.1pp

Core & MainCNM

27.1%+0.5pp

NGL Energy PartnersNGL

30.9%+3.1pp

USA Compression PartnersUSAC

66.3%-0.6pp

ITTITT

35.5%+0.5pp

Crane Co.CR

41.6%+0.3pp

Other financials

Income statement

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Revenue$1.2B+97.5%

Gross profit$193.0M+39.9%

Operating income-$50.0M-272%

Net income-$44.0M-310%

EPS (diluted)-$0.24-226%

Balance sheet

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Cash & equivalents$116.0M-47.0%

Total debt$737.0M+1,698%

Total equity$2.1B+87.7%

Total assets$3.9B+138%

Cash flow

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Operating cash flow-$95.0M-494%

CapEx$8.0M+33.3%

Free cash flow-$103.0M-368%

Valuation

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Market cap$2.45B+22.9%

Enterprise value$3.07B+74.6%

P/S0.7×-0.1×

Profitability

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Operating margin-5.1%-9.6pp

Net margin-4.6%-7.8pp

FCF margin1.6%-6.2pp

Returns & leverage

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Return on equity-9.5%-16.5pp

Debt / equity0.3×+0.3×

Current ratio2.4×+0.1×

Where this comes from

Calculated from DNOW’s reported figures.

gross profit/total revenue=15.6%

Based on trailing twelve months.

The official record: DNOW’s 10-Q, filed May 7, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is DNOW's gross margin?: DNOW (DNOW) reported gross margin of 15.6% in Q1 2026.
How has DNOW's gross margin changed year-over-year?: DNOW's gross margin decreased by 30.3% year-over-year, from 22.4% to 15.6%.
What is the long-term trend for DNOW's gross margin?: Over 5 years (2020 to 2025), DNOW's gross margin has grown at a -1.3% compound annual growth rate (CAGR), from 18% to 16.9%.
What does gross margin mean?: Gross profit (revenue minus cost of revenue) as a percentage of revenue, on a trailing-twelve-month basis. Measures how much of each sales dollar survives the direct cost of producing the goods or services sold.