The Descartes Systems Group Inc

DSG

Equity

ISIN null / Valor 840184

Toronto Stock Exchange (2025-11-21)

CAD 114.81+1.95%

The Descartes Systems Group Inc
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About company

The Descartes Systems Group Inc. is a global leader in providing logistics and supply chain management solutions. The company offers a comprehensive Logistics Technology Platform that integrates an extensive logistics network with a wide range of management applications and global trade intelligence services. This platform is designed to optimize the movement and management of inventory, information, assets, and personnel, ensuring they reach their destinations efficiently and on time. Descartes' solutions cater to various industries, enhancing operational efficiency and enabling businesses to streamline their logistics processes. With a focus on innovation and connectivity, Descartes supports its clients in navigating the complexities of global trade and logistics.

Summarized from source with an LLMView SourceSector: Technology

Revenue Growth

Revenues increased to $179.8 million in Q2FY26, up 10% from Q2FY25 and 7% higher than Q1FY26, largely driven by robust services revenue which reached $166.8 million.

Improved Operating Metrics

Income from operations improved to $48.2 million, representing a 5% increase year-over-year and a 4% rise sequentially, while net income climbed 10% year-over-year to $38.0 million, maintaining a 21% net margin.

Enhanced Cash Flow

Cash provided by operating activities surged to $63.3 million, marking an 82% increase from Q2FY25 and an 18% sequential improvement, even with adjustments for personnel departure costs and prior acquisition-related payments.

Stronger Earnings and EBITDA

Earnings per diluted share increased to $0.43 (up 7% year-over-year), and Adjusted EBITDA reached $80.2 million, up 14% compared to Q2FY25, translating to an Adjusted EBITDA margin of 45%.

Strategic Acquisitions and Expansion

The period also saw strategic investments with the acquisitions of PackageRoute and Finale, enhancing Descartes’ capabilities in final-mile carrier solutions and cloud-based inventory management for ecommerce growth.

Summarized from source with an LLMView Source

Key figures

-28.2%1Y

26.2%3Y

52.5%5Y

Performance

31.7%1Y

26.2%3Y

28.3%5Y

Volatility