Overview

* Descartes Systems Group ( DSGX ) fiscal Q2 rev grows 10% yr/yr, beating analyst expectations, per LSEG data

* Adjusted EBITDA for fiscal Q2 beats estimates, per LSEG data

Outlook

* Company notes challenging market conditions impacting customer pricing decisions

* Descartes highlights reliance on its Global Logistics Network amid trade uncertainties

Result Drivers

* GLOBAL LOGISTICS NETWORK - Descartes attributes revenue growth to reliance on its Global Logistics Network by shippers, carriers, and logistics services providers amid challenging global trade conditions

* SERVICES REVENUES - Services revenues, comprising 93% of total revenues, increased by 14% from Q2FY25, indicating strong demand for Descartes' logistics solutions

* CASH FLOW IMPACT - Cash provided by operating activities rose 82% from Q2FY25, despite a $5 mln payment for personnel departures

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $179.80 $175.80

Revenue mln mln (7

Analysts

)

Q2 EPS $0.43

Q2 Net $38 mln

Income

Q2 Beat $80.20 $79.10

Adjusted mln mln (8

EBITDA Analysts

)

Q2 Gross 77.0%

Margin

Q2 $48.20

Operatin mln

g Income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the software peer group is "buy"

* The stock recently traded at 48 times the next 12-month earnings vs. a P/E of 56 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)