Second Quarter Financial Results for Fiscal Year 2026 Unveiled by Descartes
Descartes Systems Group Inc. Reports Q2FY26 Financial Results
Descartes Systems Group Inc., a leading provider of logistics-intensive business solutions, has announced its financial results for the second quarter of its fiscal year 2026 (Q2FY26). The company's headquarters are based in Waterloo, Ontario, Canada, with offices and partners around the world.
In Q2FY26, Descartes acquired PackageRoute Holdco, Inc., a final-mile carrier solutions provider, for approximately $1.9 million. The company also acquired Finale, Inc., a provider of last-mile delivery solutions, for approximately $40.0 million. These acquisitions are expected to strengthen Descartes' position in the final-mile delivery market.
The company's services revenues for Q2FY26 were $166.8 million, representing a 14% increase from Q2FY25 and a 7% increase from Q1FY26. Income from operations was $48.2 million, up 5% from Q2FY25 and 4% from Q1FY26. Net income for the quarter was $38.0 million, a 10% increase from Q2FY25 and a 5% increase from Q1FY26. Earnings per share were $0.43, up 7% from Q2FY25 and 5% from Q1FY26.
Adjusted EBITDA in Q2FY26 was $80.2 million, a 14% increase from Q2FY25 and a 7% increase from Q1FY26. Adjusted EBITDA as a percentage of revenues was 45.3%, up from 44.3% in Q2FY25 and 44.6% in Q1FY26. A table in the release reconciles Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues to net income reported in Descartes' unaudited Consolidated Statements of Operations for Q2FY26, Q1FY26, Q4FY25, Q3FY25, and Q2FY25.
Cash provided by operating activities in Q2FY26 was $63.3 million, an 82% increase from Q2FY25 and a 18% increase from Q1FY26. The company's Condensed Consolidated Statements of Cash Flows for the three months ended July 31, 2025, and July 31, 2024, and Condensed Consolidated Balance Sheets for July 31, 2025, and January 31, 2025, were also included in the release.
The release contains forward-looking statements that involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance, or achievements to differ materially from the anticipated results, performance, or achievements or developments expressed or implied by such forward-looking statements. The release includes a cautionary statement regarding forward-looking statements.
Descartes Systems Group Inc. encourages investors to visit www.descartes.com/descartes/investor-relations for more information about the company. A conference call replay will be available until Wednesday, September 10, 2025, by dialing +1 289 819 1325 or Toll-Free for North America using +1 888 660 6264 with Playback Passcode: 15589#. The company will conduct an audio webcast on the Descartes website at the same link.
Customers use Descartes' solutions to route, track, improve the safety, performance, and compliance of delivery resources; plan, allocate, and execute shipments; rate, audit, and pay transportation invoices; access global trade data; file customs and security documents for imports and exports; and complete numerous other logistics processes by participating in the world's largest, collaborative multimodal logistics community.
Descartes is the global leader in providing on-demand, software-as-a-service solutions for logistics-intensive businesses. The company's unaudited and annual audited financial statements prepared in accordance with GAAP were also included in the release.
For more information, contact Descartes Investor Relations at Laurie McCauley (519) 746-2969 or [email protected]. Learn more at www.descartes.com, and connect with them on LinkedIn and Twitter. Replay of the webcast will be available at the same link mentioned above.
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