The Descartes Systems Group Inc. (Nasdaq: DSGX, TSX: DSG) Q1 2026 Earnings Call | 6/4/2025

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The Descartes Systems Group Inc. (Nasdaq: DSGX, TSX: DSG) reported Q1 2026 results on June 4, 2025, with total revenue rising 12% year-over-year to $168.7 million, driven by strong demand in transportation management and global trade intelligence solutions despite a challenging macroeconomic environment. Services revenue reached a record $156.6 million (93% of total revenue), up 14%, reflecting robust growth in recurring SaaS and cloud-based offerings. Adjusted EBITDA climbed 12% to $75.1 million, representing a 44.5% margin, while net income increased 4% to $36.2 million. Operating income rose 9% to $46.2 million, and gross margin remained high at 76.4%. Cash flow from operations was $53.6 million (71% of adjusted EBITDA), though down from last year due to acquisition and bonus-related outflows. The company ended the quarter with $176 million in cash and no debt, following the $115 million acquisition of transportation management provider 3GTMS. Operating expenses grew 104% year-over-year, primarily due to acquisitions and restructuring. Descartes implemented a 7% workforce reduction to generate $15 million in annualized cost savings and recorded a $4 million restructuring charge. The 3GTMS acquisition expands Descartes’ capabilities in transportation management and parcel shipping, enhancing its offering for shippers and logistics providers navigating complex global supply chains. The MacroPoint real-time visibility segment and Global Trade Intelligence division both posted strong results, with heightened demand for tariff and duty information amid ongoing global trade uncertainty and shifting tariff regimes. Despite declines in shipment volumes and continued market hesitancy, Descartes maintained strong renewal rates and a healthy sales pipeline. Outlook: Continued focus on integrating 3GTMS, cost discipline, and scaling AI-driven logistics and trade solutions. Management remains confident in organic growth, margin strength, and adaptability amid global trade and economic uncertainty. CEO Edward J. Ryan emphasized Descartes’ resilience and commitment to prudent investments, stating, “We remain committed to growing our business with prudent investments and cost discipline to build the premier network and technology for logistics-intensive businesses”. About Inside Ticker: For more expert analysis and real-time updates on The Descartes Systems Group Inc. (Nasdaq: DSGX, TSX: DSG) and other market movers, follow Inside Ticker and visit InsideTicker.com for in-depth reports, financial insights, and the latest news on leading companies. #Descartes #DSGX #EarningsCall #Q12026 #Logistics #GlobalTrade #SaaS #M&A #StockMarket #Investing #InsideTicker