Descartes Sys Group Inc Financials

DSGX

Source SEC Filings (10-K/10-Q) Updated Jul 31, 2025 Currency USD FYE January

Financial Health Signals

Financial Profile 76/100

Based on FY2025 annual data. Scores normalized against common benchmarks. How we calculate these scores

Profitability

100

Descartes Sys Group Inc has an operating margin of 27.8%, meaning the company retains $28 of operating profit per $100 of revenue. This strong profitability earns a score of 100/100, reflecting efficient cost management and pricing power. This is up from 24.9% the prior year.

Growth

Descartes Sys Group Inc's revenue grew 13.6% year-over-year to $651.0M, a solid pace of expansion. This earns a growth score of 68/100.

Leverage

100

Descartes Sys Group Inc carries a low D/E ratio of 0.17, meaning only $0.17 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 100/100, indicating a strong balance sheet with room for future borrowing.

Liquidity

Descartes Sys Group Inc's current ratio of 1.70 indicates adequate short-term liquidity, earning a score of 48/100. The company can meet its near-term obligations, though with limited headroom.

Cash Flow

100

Descartes Sys Group Inc converts 32.6% of revenue into free cash flow ($212.5M). This strong cash generation earns a score of 100/100.

Returns

Descartes Sys Group Inc's ROE of 9.6% shows moderate profitability relative to equity, earning a score of 38/100. This is up from 8.4% the prior year.

Altman Z-Score Safe

14.40

Descartes Sys Group Inc scores 14.40, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($5.7B) relative to total liabilities ($256.1M). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.

Piotroski F-Score Neutral

6/9

Descartes Sys Group Inc passes 6 of 9 financial strength tests. All 4 profitability signals pass (positive income, cash flow, and earnings quality), 1 of 3 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.

Earnings Quality Cash-Backed

1.53x

For every $1 of reported earnings, Descartes Sys Group Inc generates $1.53 in operating cash flow ($219.3M OCF vs $143.3M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.

Interest Coverage Safe

180.4x

Descartes Sys Group Inc earns $180.4 in operating income for every $1 of interest expense ($181.1M vs $1.0M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.

This page shows Descartes Sys Group Inc (DSGX) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 16 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

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Key Financial Metrics

Revenue

$651.0M

YoY+13.6%

5Y CAGR+14.8%

10Y CAGR+14.3%

Descartes Sys Group Inc generated $651.0M in revenue in fiscal year 2025. This represents an increase of 13.6% from the prior year.

EBITDA

$256.1M

YoY+22.6%

5Y CAGR+17.6%

10Y CAGR+18.3%

Descartes Sys Group Inc's EBITDA was $256.1M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 22.6% from the prior year.

Free Cash Flow

$212.5M

YoY+5.2%

5Y CAGR+16.4%

10Y CAGR+16.3%

Descartes Sys Group Inc generated $212.5M in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 5.2% from the prior year.

Net Income

$143.3M

YoY+23.6%

5Y CAGR+31.1%

10Y CAGR+25.3%

Descartes Sys Group Inc reported $143.3M in net income in fiscal year 2025. This represents an increase of 23.6% from the prior year.

EPS (Diluted)

$1.64

YoY+22.4%

5Y CAGR+29.5%

10Y CAGR+22.8%

Descartes Sys Group Inc earned $1.64 per diluted share (EPS) in fiscal year 2025. This represents an increase of 22.4% from the prior year.

Cash & Debt

$240.6M

YoY+1.9%

5Y CAGR+12.5%

10Y CAGR+20.5%

Descartes Sys Group Inc held $240.6M in cash against $0 in long-term debt as of fiscal year 2025.

Dividends Per Share

N/A

Shares Outstanding

86M

YoY+0.9%

5Y CAGR+0.3%

10Y CAGR+1.3%

Descartes Sys Group Inc had 86M shares outstanding in fiscal year 2025. This represents an increase of 0.9% from the prior year.

Gross Margin

75.6%

YoY-0.2pp

5Y CAGR+1.9pp

10Y CAGR+7.8pp

Descartes Sys Group Inc's gross margin was 75.6% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 0.2 percentage points from the prior year.

Operating Margin

27.8%

YoY+2.9pp

5Y CAGR+11.8pp

10Y CAGR+14.6pp

Descartes Sys Group Inc's operating margin was 27.8% in fiscal year 2025, reflecting core business profitability. This is up 2.9 percentage points from the prior year.

Net Margin

22.0%

YoY+1.8pp

5Y CAGR+10.6pp

10Y CAGR+13.2pp

Descartes Sys Group Inc's net profit margin was 22.0% in fiscal year 2025, showing the share of revenue converted to profit. This is up 1.8 percentage points from the prior year.

Return on Equity

9.6%

YoY+1.2pp

5Y CAGR+5.5pp

10Y CAGR+5.8pp

Descartes Sys Group Inc's ROE was 9.6% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 1.2 percentage points from the prior year.

R&D Spending

$95.5M

YoY+13.5%

5Y CAGR+12.3%

10Y CAGR+13.0%

Descartes Sys Group Inc invested $95.5M in research and development in fiscal year 2025. This represents an increase of 13.5% from the prior year.

Share Buybacks

N/A

Capital Expenditures

$6.7M

YoY+21.2%

5Y CAGR+6.6%

10Y CAGR+9.7%

Descartes Sys Group Inc invested $6.7M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 21.2% from the prior year.

DSGX Income Statement

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Revenue	$651.0M+13.6%	$572.9M+17.9%	$486.0M+14.4%	$424.7M+21.8%	$348.7M+7.0%	$325.8M
Cost of Revenue	$158.6M+14.7%	$138.3M+22.0%	$113.3M+11.3%	$101.8M+13.2%	$89.9M+4.9%	$85.7M
Gross Profit	$492.4M+13.3%	$434.6M+16.6%	$372.7M+15.4%	$322.9M+24.8%	$258.8M+7.8%	$240.1M
R&D Expenses	$95.5M+13.5%	$84.1M+19.5%	$70.4M+12.4%	$62.6M+15.7%	$54.1M+1.0%	$53.5M
SG&A Expenses	$65.2M+13.7%	$57.4M+15.4%	$49.7M+11.8%	$44.5M+22.6%	$36.3M+4.7%	$34.6M
Operating Income	$181.1M+26.8%	$142.8M+9.5%	$130.4M+26.1%	$103.4M+44.9%	$71.4M+36.6%	$52.3M
Interest Expense	$1.0M-26.3%	$1.4M+16.8%	$1.2M+3.9%	$1.1M-5.3%	$1.2M-73.1%	$4.4M
Income Tax	$48.4M+37.2%	$35.2M+11.9%	$31.5M+92.9%	$16.3M-10.6%	$18.3M+65.5%	$11.0M
Net Income	$143.3M+23.6%	$115.9M+13.4%	$102.2M+18.5%	$86.3M+65.6%	$52.1M+40.8%	$37.0M
EPS (Diluted)	$1.64+22.4%	$1.34+13.6%	$1.18+18.0%	$1.00+63.9%	$0.61+35.6%	$0.45

Metric	Q2'25	Q2'24	Q4'24	Q2'23	Q4'23	Q2'22	Q4'22	Q2'21
Revenue	$179.8M+10.0%	$163.4M	N/A	$143.4M	N/A	$123.0M	N/A	$104.6M
Cost of Revenue	$41.6M+2.6%	$40.5M	N/A	$35.0M	N/A	$28.9M	N/A	$25.5M
Gross Profit	$138.2M+12.5%	$122.9M	N/A	$108.4M	N/A	$94.1M	N/A	$79.1M
R&D Expenses	$26.8M+11.9%	$23.9M	N/A	$21.7M	N/A	$18.2M	N/A	$15.5M
SG&A Expenses	$17.1M+3.8%	$16.5M	N/A	$14.6M	N/A	$12.7M	N/A	$10.9M
Operating Income	$48.2M+5.1%	$45.8M	N/A	$36.8M	N/A	$31.5M	N/A	$26.1M
Interest Expense	$243K0.0%	$243K	N/A	$340K	N/A	$284K	N/A	$272K
Income Tax	$11.5M-15.9%	$13.6M	N/A	$10.4M	N/A	$8.8M	N/A	$2.7M
Net Income	$38.0M+9.6%	$34.7M	N/A	$28.1M	N/A	$22.9M	N/A	$23.2M
EPS (Diluted)	$0.43+7.5%	$0.40	N/A	$0.32	N/A	$0.27	N/A	$0.27

DSGX Balance Sheet

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Total Assets	$1.8B+6.6%	$1.6B+11.7%	$1.5B+12.0%	$1.3B+11.0%	$1.2B+11.5%	$1.1B
Current Assets	$360.7M+2.3%	$352.6M-15.7%	$418.2M+16.6%	$358.7M+22.8%	$292.1M+43.8%	$203.1M
Cash & Equivalents	$240.6M+1.9%	$236.1M-26.4%	$321.0M+16.1%	$276.4M+29.5%	$213.4M+59.7%	$133.7M
Inventory	$534K-25.3%	$715K+102.5%	$353K-53.5%	$759K-12.6%	$868K+102.3%	$429K
Accounts Receivable	$61.3M+13.7%	$54.0M+4.6%	$51.6M+14.2%	$45.2M+8.3%	$41.7M+12.1%	$37.2M
Goodwill	$992.5M+7.3%	$924.8M+21.6%	$760.4M0.0%	$760.4M+24.9%	$608.8M+7.7%	$565.2M
Total Liabilities	$256.1M-2.4%	$262.4M+11.1%	$236.3M+9.0%	$216.7M+16.7%	$185.6M+22.0%	$152.2M
Current Liabilities	$211.9M-2.4%	$217.0M+6.6%	$203.6M+20.1%	$169.6M+27.1%	$133.4M+28.0%	$104.3M
Long-Term Debt	N/A	N/A	N/A	N/A	N/A	N/A
Total Equity	$1.5B+8.3%	$1.4B+11.9%	$1.2B+12.6%	$1.1B+10.0%	$999.8M+9.7%	$911.1M
Retained Earnings	$438.3M+20.4%	$364.0M+64.9%	$220.8M+110.5%	$104.8M+3914.1%	$2.6M+103.1%	-$83.7M

Metric	Q2'25	Q2'24	Q4'24	Q2'23	Q4'23	Q2'22	Q4'22	Q2'21
Total Assets	$1.8B+12.2%	$1.6B+6.2%	$1.5B+4.1%	$1.4B+7.6%	$1.3B+5.6%	$1.2B+5.2%	$1.2B	N/A
Current Assets	$360.7M-1.2%	$365.2M-12.7%	$418.2M+29.0%	$324.2M-9.6%	$358.7M+32.4%	$270.8M-7.3%	$292.1M	N/A
Cash & Equivalents	$240.6M-4.8%	$252.7M-21.3%	$321.0M+41.1%	$227.4M-17.7%	$276.4M+46.2%	$189.0M-11.4%	$213.4M	N/A
Inventory	$534K	N/A	$353K-63.6%	$970K+27.8%	$759K-6.8%	$814K-6.2%	$868K	N/A
Accounts Receivable	$61.3M+6.7%	$57.5M+11.5%	$51.6M-8.3%	$56.2M+24.5%	$45.2M-7.6%	$48.9M+17.3%	$41.7M	N/A
Goodwill	$992.5M+16.8%	$850.0M+11.8%	$760.4M-0.6%	$765.1M+0.6%	$760.4M+13.2%	$671.8M+10.4%	$608.8M	N/A
Total Liabilities	$256.1M+1.0%	$253.7M+7.4%	$236.3M-2.5%	$242.3M+11.8%	$216.7M+4.0%	$208.3M+12.2%	$185.6M	N/A
Current Liabilities	$211.9M+4.0%	$203.7M+0.1%	$203.6M-0.1%	$203.8M+20.2%	$169.6M+8.8%	$155.9M+16.8%	$133.4M	N/A
Long-Term Debt	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Total Equity	$1.5B+14.3%	$1.3B+6.0%	$1.2B+5.5%	$1.2B+6.8%	$1.1B+5.9%	$1.0B+3.9%	$999.8M+3.8%	$962.8M
Retained Earnings	$438.3M+51.1%	$290.1M+31.4%	$220.8M+36.0%	$162.3M+54.8%	$104.8M+115.6%	$48.6M+1761.8%	$2.6M	N/A

DSGX Cash Flow Statement

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Operating Cash Flow	$219.3M+5.6%	$207.7M+7.9%	$192.4M+9.2%	$176.1M+34.2%	$131.2M+25.9%	$104.3M
Capital Expenditures	$6.7M+21.2%	$5.6M-8.4%	$6.1M+25.7%	$4.8M+28.5%	$3.8M-23.3%	$4.9M
Free Cash Flow	$212.5M+5.2%	$202.1M+8.5%	$186.3M+8.8%	$171.3M+34.4%	$127.5M+28.3%	$99.4M
Investing Cash Flow	-$296.9M-100.3%	-$148.3M-21.9%	-$121.6M-27.9%	-$95.1M-82.3%	-$52.2M+82.4%	-$297.0M
Financing Cash Flow	-$3.6M+75.4%	-$14.7M-220.2%	-$4.6M-403.6%	$1.5M-72.7%	$5.6M-97.4%	$210.2M
Dividends Paid	N/A	N/A	N/A	N/A	N/A	N/A
Share Buybacks	N/A	N/A	N/A	N/A	N/A	N/A

Metric	Q2'25	Q2'24	Q4'24	Q2'23	Q4'23	Q2'22	Q4'22	Q2'21
Operating Cash Flow	$63.3M+82.7%	$34.7M	N/A	$52.0M	N/A	$46.4M	N/A	$46.4M
Capital Expenditures	$1.2M-21.3%	$1.6M	N/A	$2.2M	N/A	$1.8M	N/A	$941K
Free Cash Flow	$62.1M+87.7%	$33.1M	N/A	$49.8M	N/A	$44.6M	N/A	$45.4M
Investing Cash Flow	-$3.5M+77.0%	-$15.3M	N/A	-$2.2M	N/A	-$62.9M	N/A	-$55.4M
Financing Cash Flow	$3.6M+161.2%	-$5.9M	N/A	-$5.8M	N/A	-$5.1M	N/A	-$218K
Dividends Paid	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Share Buybacks	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A

DSGX Financial Ratios

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Gross Margin	75.6%-0.2pp	75.9%-0.8pp	76.7%+0.7pp	76.0%+1.8pp	74.2%+0.5pp	73.7%
Operating Margin	27.8%+2.9pp	24.9%-1.9pp	26.8%+2.5pp	24.4%+3.9pp	20.5%+4.4pp	16.0%
Net Margin	22.0%+1.8pp	20.2%-0.8pp	21.0%+0.7pp	20.3%+5.4pp	14.9%+3.6pp	11.4%
Return on Equity	9.6%+1.2pp	8.4%+0.1pp	8.3%+0.4pp	7.8%+2.6pp	5.2%+1.2pp	4.1%
Return on Assets	8.2%+1.1pp	7.0%+0.1pp	6.9%+0.4pp	6.6%+2.2pp	4.4%+0.9pp	3.5%
Current Ratio	1.70+0.1	1.62-0.4	2.05-0.1	2.11-0.1	2.19+0.2	1.95
Debt-to-Equity	0.17-0.0	0.190.0	0.190.0	0.20+0.0	0.19+0.0	0.17
FCF Margin	32.6%-2.6pp	35.3%-3.1pp	38.3%-2.0pp	40.3%+3.8pp	36.6%+6.1pp	30.5%

Metric	Q2'25	Q2'24	Q4'24	Q2'23	Q4'23	Q2'22	Q4'22	Q2'21
Gross Margin	76.9%+1.7pp	75.2%	N/A	75.6%	N/A	76.5%	N/A	75.6%
Operating Margin	26.8%-1.3pp	28.1%	N/A	25.7%	N/A	25.7%	N/A	25.0%
Net Margin	21.1%-0.1pp	21.2%	N/A	19.6%	N/A	18.6%	N/A	22.2%
Return on Equity	2.5%-0.1pp	2.6%	N/A	2.4%	N/A	2.2%	N/A	2.4%
Return on Assets	2.2%-0.1pp	2.2%	N/A	2.0%	N/A	1.8%	N/A	N/A
Current Ratio	1.70-0.1	1.79-0.3	2.05+0.5	1.59-0.5	2.11+0.4	1.74-0.5	2.19	N/A
Debt-to-Equity	0.17-0.0	0.190.0	0.19-0.0	0.210.0	0.200.0	0.20+0.0	0.19	N/A
FCF Margin	34.5%+14.3pp	20.2%	N/A	34.8%	N/A	36.3%	N/A	43.5%

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Frequently Asked Questions

What is Descartes Sys Group Inc's annual revenue?

Descartes Sys Group Inc (DSGX) reported $651.0M in total revenue for fiscal year 2025. This represents a 13.6% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

How fast is Descartes Sys Group Inc's revenue growing?

Descartes Sys Group Inc (DSGX) revenue grew by 13.6% year-over-year, from $572.9M to $651.0M in fiscal year 2025.

Is Descartes Sys Group Inc profitable?

Yes, Descartes Sys Group Inc (DSGX) reported a net income of $143.3M in fiscal year 2025, with a net profit margin of 22.0%.

What is Descartes Sys Group Inc's earnings per share (EPS)?

Descartes Sys Group Inc (DSGX) reported diluted earnings per share of $1.64 for fiscal year 2025. This represents a 22.4% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

What is Descartes Sys Group Inc's EBITDA?

Descartes Sys Group Inc (DSGX) had EBITDA of $256.1M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.

What is Descartes Sys Group Inc's gross margin?

Descartes Sys Group Inc (DSGX) had a gross margin of 75.6% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.

What is Descartes Sys Group Inc's operating margin?

Descartes Sys Group Inc (DSGX) had an operating margin of 27.8% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.

What is Descartes Sys Group Inc's net profit margin?

Descartes Sys Group Inc (DSGX) had a net profit margin of 22.0% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.

What is Descartes Sys Group Inc's return on equity (ROE)?

Descartes Sys Group Inc (DSGX) has a return on equity of 9.6% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

What is Descartes Sys Group Inc's free cash flow?

Descartes Sys Group Inc (DSGX) generated $212.5M in free cash flow during fiscal year 2025. This represents a 5.2% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.

What is Descartes Sys Group Inc's operating cash flow?

Descartes Sys Group Inc (DSGX) generated $219.3M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

What are Descartes Sys Group Inc's total assets?

Descartes Sys Group Inc (DSGX) had $1.8B in total assets as of fiscal year 2025, including both current and long-term assets.

What are Descartes Sys Group Inc's capital expenditures?

Descartes Sys Group Inc (DSGX) invested $6.7M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

How much does Descartes Sys Group Inc spend on research and development?

Descartes Sys Group Inc (DSGX) invested $95.5M in research and development during fiscal year 2025.

How many shares does Descartes Sys Group Inc have outstanding?

Descartes Sys Group Inc (DSGX) had 86M shares outstanding as of fiscal year 2025.

What is Descartes Sys Group Inc's current ratio?

Descartes Sys Group Inc (DSGX) had a current ratio of 1.70 as of fiscal year 2025, which is generally considered healthy.

What is Descartes Sys Group Inc's debt-to-equity ratio?

Descartes Sys Group Inc (DSGX) had a debt-to-equity ratio of 0.17 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

What is Descartes Sys Group Inc's return on assets (ROA)?

Descartes Sys Group Inc (DSGX) had a return on assets of 8.2% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

What is Descartes Sys Group Inc's Altman Z-Score?

Descartes Sys Group Inc (DSGX) has an Altman Z-Score of 14.40, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios—working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets—to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.

What is Descartes Sys Group Inc's Piotroski F-Score?

Descartes Sys Group Inc (DSGX) has a Piotroski F-Score of 6 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Are Descartes Sys Group Inc's earnings high quality?

Descartes Sys Group Inc (DSGX) has an earnings quality ratio of 1.53x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

Can Descartes Sys Group Inc cover its interest payments?

Descartes Sys Group Inc (DSGX) has an interest coverage ratio of 180.4x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.

How financially healthy is Descartes Sys Group Inc?

Descartes Sys Group Inc (DSGX) scores 76 out of 100 on our Financial Profile, indicating strong overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.