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DSGX

The Descartes Systems Group Inc.

DSGX

The Descartes Systems Group Inc. • NASDAQ
$82.42 ▲ 0.22% (+0.18)
Market Cap $7.06 B
52w High $124.31
52w Low $78.88
Dividend Yield 0%
P/E 48.77
Volume 122.70K
Outstanding Shares 85.64M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q2-2025 $179.815M ▲ $90.044M ▲ $38.02M ▲ 21.144% ▼ $0.44 ▲ $71.738M ▲
Q1-2025 $168.739M ▲ $82.794M ▲ $36.244M ▼ 21.479% ▼ $0.42 ▼ $68.724M ▼
Q4-2024 $167.471M ▼ $80.906M ▲ $37.367M ▲ 22.313% ▲ $0.43 $69.563M ▲
Q3-2024 $168.756M ▲ $79.813M ▲ $36.558M ▲ 21.663% ▲ $0.43 ▲ $67.199M ▼
Q2-2024 $163.425M $77.031M $34.681M 21.221% $0.41 $67.366M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q2-2025 $240.632M ▲ $1.756B ▲ $256.138M ▼ $1.5B ▲
Q1-2025 $176.411M ▼ $1.71B ▲ $257.953M ▼ $1.452B ▲
Q4-2024 $236.138M ▲ $1.647B ▲ $262.381M ▼ $1.385B ▲
Q3-2024 $181.282M ▼ $1.619B ▲ $262.975M ▲ $1.356B ▲
Q2-2024 $252.653M $1.565B $253.656M $1.312B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q2-2025 $38.02M ▲ $63.336M ▲ $-3.517M ▲ $3.638M ▲ $64.221M ▲ $62.096M ▲
Q1-2025 $36.244M ▼ $53.603M ▼ $-114.189M ▼ $-2.967M ▼ $-59.727M ▼ $51.741M ▼
Q4-2024 $37.367M ▲ $60.725M ▲ $-5.826M ▲ $2.504M ▲ $54.856M ▲ $58.635M ▼
Q3-2024 $36.558M ▲ $60.146M ▲ $-134.066M ▼ $2.358M ▲ $-71.371M ▼ $58.833M ▲
Q2-2024 $34.396M $34.66M $-15.318M $-5.94M $13.731M $33.084M

Five-Year Company Overview

Income Statement

Income Statement Revenue and profits have grown steadily over the past five years, with both sales and earnings rising at a healthy pace. Profitability has improved as the business scales, meaning a larger share of each dollar of revenue is now turning into operating profit and net income. Earnings per share have climbed consistently, which suggests management has converted growth into real value for shareholders rather than just growing for scale’s sake. Overall, the income statement reflects a mature, profitable software business with good operating leverage and disciplined cost control.

Balance Sheet

Balance Sheet The balance sheet looks conservative and solid. Total assets and shareholder equity have built up over time, showing that the company has been retaining and reinvesting its profits. Debt is very low relative to the size of the business, which reduces financial risk and gives flexibility in downturns. Cash has moved around a bit, likely reflecting acquisition activity, but remains meaningful, indicating the company is not stretched from a liquidity standpoint.

Cash Flow

Cash Flow Cash generation is a clear strength. Operating cash flow has risen steadily in line with earnings, which signals that reported profits are backed by real cash. Free cash flow is very close to operating cash flow because the business does not need heavy spending on physical assets, a typical benefit of a cloud software model. This strong, recurring cash flow provides ample capacity to fund acquisitions, product development, and potential strategic initiatives without relying heavily on borrowing.

Competitive Edge

Competitive Edge Descartes sits in a strong niche at the intersection of logistics and cloud software. Its global logistics network connects a very large number of trading partners, creating powerful network effects and high switching costs for customers embedded in the ecosystem. A broad, integrated product suite—spanning visibility, route optimization, trade compliance, and e‑commerce—helps lock in customers over time and deepens relationships. The recurring revenue model and history of bolt‑on acquisitions further reinforce its position, although it must continually defend against competition from both specialized logistics tech players and large enterprise software providers.

Innovation and R&D

Innovation and R&D Innovation is centered on expanding and enriching the global logistics network and layering advanced analytics on top of it. The company is actively embedding artificial intelligence and machine learning into its tools, such as AI‑driven route optimization and trade compliance screening, to improve accuracy and reduce manual work for customers. It is also pushing deeper into real‑time visibility, predictive insights, e‑commerce fulfillment, and last‑mile delivery, as well as sustainability-focused route and document tools. Much of its innovation appears to blend internal development with targeted acquisitions, aiming to stay ahead of shifting logistics and regulatory needs rather than betting on a single breakthrough technology.

Summary

Overall, Descartes looks like a well-established, steadily growing logistics software platform with a strong competitive moat built around its global network and integrated solutions. The financial profile—rising revenue, expanding profits, strong cash generation, and a low-debt balance sheet—points to a resilient and capital-light business model. The main opportunities lie in further scaling its network, deepening its role in e‑commerce and cross-border trade, and monetizing AI-driven insights across its platform. Key risks to monitor include integration of ongoing acquisitions, intensifying competition in logistics technology, and exposure to global trade and regulatory shifts that could affect customer activity and spending patterns.

NEWS

November 12, 2025 · 6:45 AM UTC

Estes Logistics Scales Dedicated Fleet Operations with Descartes Technology, Driving 15 Years of Growth and Innovation

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November 4, 2025 · 6:45 AM UTC

Descartes' Study Finds 67% of Freight Forwarders and Customs Brokers View Technology as Fundamental to Growth

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November 3, 2025 · 6:45 AM UTC

Descartes Sets Date to Announce Third Quarter Fiscal 2026 Financial Results

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October 28, 2025 · 6:45 AM UTC

ESPAS and Steinehelden Use Descartes' Solution to Optimize Ecommerce Productivity by 500% While Supporting Special Needs of Workers

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October 22, 2025 · 6:45 AM UTC

Third Party Logistics Provider CPGIO Uses Descartes' Ecommerce Inventory and Order Management Solution to Achieve 5x Growth

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