How To Connect a DAC?

I am cautiously optimistic that a separate DAC will sound better.

I doubt it… but I am not an optimist 😀
If you could describe what is lacking, or how it could be better then it can be easier to determine whether it might be better than the NODE 3.

My speakers do not have any room correction.  Nor do they have XLR inputs.  Sub 1 has XLR inputs.  Sub 2 is connected via wireless transmitter which does not have XLR inputs.

I would suspect that REW and a UMIK might be worthwhile.

The DAC I have has a few PEQs that can be used for equalisation.
I could pretty easily believe that you could get a notable improvement by implementing some EQ without too much optimism. And particularly so in the bass.

I would suggest you avoid a DAC solely as a DAC, unless it also gives you some EQ options.

But I would also suggest you await some more learned suggestions.

If you had a stunningly good room, then maybe a different DAC would be better, or be different… but I do not know your room, nor your NODE 3, so it is at best just a guess.

Have you experimented with sub placement in your room?

What’s the rest of your equipment and budget for a DAC?

@tcotruvo There is no issue with using RCA splitters to go to both your active speakers and subs.

There are many DACs that will be better than the one inside of the Node 3. It you’re not planning to invest thousands, you should just look into Node mods like the linear power supply upgrade and others that will improve the sound of the Node 3 itself. If you are planning to invest thousands, you may as well spend double and move on from the Node 3 on a dedicated streamer as it will bring even more clarity into the delivery. Of course, you can always get a good DAC first and upgrade to a better streamer down the road.