Did you expect it to sound different/worse than a CD in the same unit using the same DAC?
I have a DAC that far exceeds the SQ of my SACD player in my system. Prior to some modifications to the DAC and some cable upgrades in the system the two sources sounded identical to my ears. I've not experienced anything upstream of the DAC or SACD player changing the sound in my system. I did one "upgrade" to my digital coax cable between my DAC and Bluesound Node, heard no difference, and have moved on with life. I lean more towards the 1's and 0's side of the world, but am open to the possibility that more things can make a difference than I've experienced personally.