ADI Global Distribution

Distribution margins are structurally modest and competitive dynamics constrain list‑price increases.

Mix shift to exclusive brands and software/services (Control4 subscriptions, OvrC remote management) offers incremental pricing latitude, but the core remains third‑party passthrough where rebates and procurement terms, not headline price, drive economics.

YTD 2026 gross margin was 22.0%; exclusive brands were ~17% of YTD revenue, supporting some future expansion, yet widespread alternatives keep end‑market elasticity meaningful.