Descartes reports record revenue amid ‘challenging’ trade landscape

Global supply chain SaaS provider Descartes saw record revenue and operating income during its 2027 fiscal first quarter. Descartes (NASDAQ: DSGX) reported consolidated revenue of $194 million for the period ended April 30, a 15% year-over-year increase.

Services revenue was also up 15% to $181 million (organic growth in services revenue was approximately 9%, excluding foreign exchange fluctuations). The company is seeing more customers use its tools to navigate a changing trade landscape and the tariff refund process.

The Supreme Court’s broker liability decision has driven inbound demand for its carrier suitability solutions. Earnings per share of 55 cents for the period were 14 cents higher y/y and 3 cents ahead of consensus. window. googletag = window. googletag || {cmd: []}; googletag. cmd. push(function() {googletag.

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push(function() {googletag. display('div-gpt-ad-1709668545404-0'); }); “The global trade landscape remains extremely challenging as supply chain participants look to keep up with increasingly dynamic conditions,” said CEO Ed Ryan in a Wednesday news release.

“Our network provides the timely, accurate and reliable data needed to fuel both AI-powered solutions and existing systems of record that are deeply embedded in logistics operations.” Table: Descartes’ key performance indicators Descartes reported adjusted EBITDA of $90 million in the quarter, which was 20% higher y/y.

It recorded an adjusted EBITDA margin of 46. 4%, which was up 190 basis points y/y. The company generated $75 million in cash flow from operations in the period, a 40% y/y increase. It ended the period with $377 million in cash (up $20 million from the prior quarter), no debt and an untapped $350 million line of credit.

Descartes announced a share repurchase plan in December, allowing it to buy back up to 10% of its public float (approximately 8. 6 million shares). It repurchased 305,000 shares in the quarter. It also plans to use cash to fund future M&A. The company completed the acquisition of Idelic in April for $25. 3 million.

Idelic is a provider of AI-powered fleet safety solutions. Shares of DSGX were off 4. 6% in after-hours trading on Wednesday. window. googletag = window. googletag || {cmd: []}; googletag. cmd. push(function() {googletag. defineSlot('/21776187881/fw-responsive-main_content-slot3', [[728, 90], [468, 60], [320, 50], [300, 100]], 'div-gpt-ad-1665767553440-0').

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display('div-gpt-ad-1665767553440-0'); }); More FreightWaves articles by Todd Maiden: XPO’s Q2 tonnage trending ahead of guidance Old Dominion’s May update shows an improving LTL market Saia’s tonnage growth accelerates in May on easier comp The post Descartes reports record revenue amid ‘challenging’ trade landscape appeared first on FreightWaves.