Descartes Announces Fiscal 2026 Second Quarter Financial Results

Core Insights - Descartes Systems Group reported record revenues and income from operations for Q2FY26, demonstrating resilience despite challenging global trade conditions [1][2]. Financial Performance - Revenues reached $179.8 million, a 10% increase from $163.4 million in Q2FY25 and a 7% increase from $168.7 million in Q1FY26 [5][6]. - Services revenues accounted for $166.8 million (93% of total revenues), up 14% from $146.2 million in Q2FY25 [5][9]. - Adjusted EBITDA was $80.2 million, up 14% from $70.6 million in Q2FY25, with an Adjusted EBITDA margin of 45% [5][24]. - Net income was $38.0 million, a 10% increase from $34.7 million in Q2FY25, maintaining a net income margin of 21% [5][6]. Year-to-Date Results - For the six-month period ended July 31, 2025, revenues totaled $348.6 million, an 11% increase from $314.8 million in 1HFY25 [9]. - Cash provided by operating activities was $116.9 million, up 19% from $98.4 million in 1HFY25 [9][10]. - Net income for the six-month period was $74.3 million, a 7% increase from $69.3 million in 1HFY25 [9][10]. Cash Position - As of July 31, 2025, Descartes had $240.6 million in cash, reflecting an increase of $64.2 million in Q2FY26 [8][10]. Acquisitions - Descartes acquired PackageRoute Holdco, Inc. for approximately $1.9 million on June 18, 2025, and Finale, Inc. for about $40.0 million on August 1, 2025, with potential contingent consideration of up to $15.0 million [11][12].