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Descartes posts best-ever quarterly results; reveals new acquisition

Descartes posts best-ever quarterly results; reveals new acquisition

101 finance101 finance2026/03/11 23:18
By:101 finance

Descartes Achieves New Financial Milestone and Expands Through Acquisition

Descartes, a leading provider of SaaS solutions for global supply chains, announced impressive financial results after the close of trading on Wednesday. The company also revealed it has acquired a new e-commerce technology firm.

For the fiscal fourth quarter ending January 31, Descartes (NASDAQ: DSGX) posted earnings per share of $0.52, marking a year-over-year increase of $0.09.

Total revenue reached $193 million, representing a 15% rise compared to the same period last year. Service-related revenue also climbed 15% to $180 million, with organic growth in this segment estimated at around 8% when excluding currency effects.

During a conference call Wednesday evening, company leaders highlighted their ongoing support for clients as they adapt to evolving tariff regulations. Descartes’ internal team focused on tariff duties and recovery is already assisting customers, despite the absence of an established refund process.

CEO Ed Ryan commented in a press statement, “Our clients continue to deal with uncertainty regarding tariffs, both in terms of future changes and the possibility of recovering previously paid duties. Shifting geopolitical conditions are also affecting logistics and shipping, creating challenges in forecasting, pricing, planning, and execution for shippers, carriers, and logistics providers.”

Ryan emphasized the importance of Descartes’ Global Logistics Network, which delivers reliable, timely, and accurate information to help customers make informed decisions.

Descartes Key Performance Indicators

Financial Highlights

  • Adjusted EBITDA reached a record $89 million for the quarter, up 18% year-over-year.
  • The adjusted EBITDA margin improved to 46%, an increase of one percentage point from the previous year.
  • Operating cash flow totaled $76 million, a 25% increase compared to last year.
  • At fiscal year-end, Descartes held $357 million in cash and maintained access to a $350 million unused credit facility.

The company noted the presence of numerous AI-driven platforms in the market, many of which are considered attractive candidates for mergers and acquisitions.

Strategic Acquisition and Share Buyback

Descartes announced the purchase of OrderMine, a UK-based provider of forecasting and planning tools for e-commerce businesses, for $2.3 million.

In December, Descartes initiated a share repurchase program, authorizing the buyback of up to 10% of its outstanding common shares. Following the announcement, DSGX shares declined by 0.7% in after-hours trading on Wednesday.

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