ADI Global Distribution Stock Plunges 50% After Q3 Goodwill Impairment and Lower Outlook

ADI Global Distribution Inc. (NYSE: ADIG) fell 49.9% on Thursday, Nov. 12, 2026, closing at $9.82 from a previous close of $19.58, while the S&P 500 ETF (SPY) moved -0.35% that session. Volume ran at 12.3 times its usual level. The drop followed a third-quarter report in an 8-K filed before the open, which included a press release with weaker profitability and a lower full-year outlook.

A $659 million goodwill charge drives the loss

The company reported a net loss of $655 million for the quarter ended Oct. 3, 2026, compared with net income of $26 million a year earlier. The loss was driven by a non-cash goodwill impairment charge of $659 million. The company said the charge followed an interim impairment assessment triggered by continued weakness in the residential market, lower projected earnings and cash flows, and declines in its stock price and market capitalization.

Margins and profit fell

Net revenue rose 8.6% to $1.306 billion. Gross margin fell to 20.9% from 22.6% a year earlier, which the company attributed to customer and product mix, inventory-related charges and a prior-year tariff benefit. Adjusted Standalone EBITDA declined 13% to $66 million, or 5.1% of net revenue.

Outlook cut for 2026

ADI lowered its full-year 2026 outlook, now calling for net revenue of $4.910 billion to $4.930 billion and Adjusted Standalone EBITDA of $230 million to $240 million. Chief Executive Rob Aarnes said third-quarter profitability was below the company's expectations and pointed to weaker demand and product mix in its Exclusive Brands offering. The company expects to exit 2026 with about $60 million in annualized gross cost savings.

Liquidity

As of Oct. 3, 2026, the company had about $208 million in cash and cash equivalents and a $500 million undrawn revolving credit facility.