Descartes Posts Record Quarter, Buys E-Commerce Software Firm

Key Details Descartes Systems reported record financial results for its fiscal fourth quarter ended January 31, posting earnings per share of 52 cents, up 9 cents year over year. Consolidated revenue reached $193 million, a 15% increase, with services revenue climbing to $180 million. Why It Matters The supply chain software provider continues helping customers navigate unpredictable tariff environments. Management confirmed an internal tariff duty and recovery team is already working with clients to recover previously paid tariffs, even as the refunding mechanism remains unclear. Strong Cash Position Descartes generated record adjusted EBITDA of $89 million with a 46% margin. Operating cash flow hit $76 million, up 25% year over year. The company ended the quarter with $357 million in cash and a $350 million untapped credit line. Expansion Moves The company acquired OrderMine, a UK-based e-commerce forecasting platform, for $2.3 million. CEO Ed Ryan noted the company sees numerous AI-powered platforms as potential acquisition targets to strengthen its Global Logistics Network. Descartes also initiated a share buyback program allowing repurchases up to 10% of outstanding shares.