Descartes Systems Group Exceeds Q2 Revenue Estimates with Cloud-Based Logistics Solutions

Descartes Systems Group, a Canadian cloud-based SaaS provider, reported Q2 revenue that beat estimates. The company offers logistics and supply chain management solutions, including transportation management, routing, and customs declaration software. Its focus on improving the security and sustainability of logistics-intensive businesses has helped it become a leader in the industry.

Descartes Systems Group Inc. (TSX:DSG) (Nasdaq:DSGX), a leading provider of cloud-based logistics and supply chain management solutions, has announced its fiscal 2026 second quarter (Q2FY26) financial results. The company reported revenues of $179.8 million, an increase of 10% compared to the same period last year and a 7% increase from the previous quarter. This strong performance comes despite challenging market conditions for global trade.

Key financial highlights include:

- Revenues: $179.8 million, up 10% from $163.4 million in Q2FY25 and up 7% from $168.7 million in Q1FY26.
- Services Revenues: $166.8 million, accounting for 93% of total revenues, and up 14% from Q2FY25 and 7% from Q1FY26.
- Cash Provided by Operating Activities: $63.3 million, up 82% from Q2FY25 and 18% from Q1FY26.
- Income from Operations: $48.2 million, up 5% from Q2FY25 and 4% from Q1FY26.
- Net Income: $38.0 million, up 10% from Q2FY25 and 5% from Q1FY26.
- Earnings per Share: $0.43, up 7% from Q2FY25 and 5% from Q1FY26.
- Adjusted EBITDA: $80.2 million, up 14% from Q2FY25 and 7% from Q1FY26.

CEO Edward J. Ryan commented, "Our business performed consistent with our plans in Q2FY26, despite very challenging market conditions for global trade. Our customers continue to face uncertainty in the costs of sourcing and moving goods across borders."

The company also reported a cash position of $240.6 million at the end of Q2FY26, an increase of $64.2 million from the previous quarter. Descartes' strong financial performance is supported by its focus on improving the productivity, security, and sustainability of logistics-intensive businesses.

Members of Descartes' executive management team will host a conference call to discuss the company's financial results on Wednesday, September 3, 2025, at 5:30 p.m. ET. The call can be accessed via the designated numbers and webcast login is required approximately 10 minutes beforehand.

References:
[1] https://www.nasdaq.com/press-release/descartes-announces-fiscal-2026-second-quarter-financial-results-2025-09-03