Descartes Systems DSGX reported fourth-quarter fiscal 2025 non-GAAP earnings per share (EPS) of 43 cents, which met the Zacks Consensus Estimate. The bottom line expanded 16% year over year and 2% sequentially.

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Revenues in the quarter totaled $167.5 million, beating the Zacks Consensus Estimate by 0.5%. The top line jumped 13% year over year, driven by healthy momentum in domestic logistics and supply chains. The company’s flagship, MacroPoint solution, integrated into the Global Logistics Network, acted as a key catalyst. Strength in the global trade intelligence business during the quarter was a tailwind.

Synergies stemming from MyCarrierPortal and Sellercloud acquisitions are another positive. The combination of Peoplevox and Sellercloud is a strong solution for DSGX customers. It has already driven significant joint sales success in the United States, Europe and Australia. This contributed well in the fourth quarter and continues to build momentum into the fiscal 2026 as well.

The Descartes Systems Group Inc. Price, Consensus and EPS Surprise

The Descartes Systems Group Inc. price-consensus-eps-surprise-chart | The Descartes Systems Group Inc. Quote

In response to the results, DSGX shares went up 2% in trading and closed at $110.92 on March 5. In the past year, shares have gained 21.1% compared with the Zacks Computer - Software industry's growth of 1.8%.

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Segmental Details

Services revenues (contributed 93% of total revenues) in the reported quarter amounted to $156.5 million, up 15% year over year, driven by a solid sales mix amid forex challenges.

License revenues (1% of total revenues) were $0.3 million compared with $1.4 million in the prior-year quarter.

Professional services and other revenues (6%) fell 3.6% year over year to $10.7 million, owing to declining hardware sales.

Other Details

The gross margin for the quarter under review was 76%, flat year over year.

Adjusted EBITDA was $75 million, up 14% year over year, driven by top-line expansion. 

Adjusted EBITDA margin was 45%, up from 44% in the prior-year quarter.

Income from operations was up 27% year over year to $47.1 million.

Cash Flow & Liquidity

In the quarter under review, DSGX generated $60.7 million of cash from operating activities compared with $50.8 million in the prior-year quarter. 

As of Jan. 31, 2025, the company had $236.1 million in cash, up from $181.3 million as of Oct. 31, 2024. 

DSGX’s Zacks Rank

DSGX currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Performance of Other Companies

BCE Inc. BCE reported fourth-quarter 2024 adjusted EPS of C$0.79 (56 cents) compared with C$0.76 in the prior-year quarter. The Zacks Consensus Estimate was pegged at 50 cents.

Shares of BCE have plunged 37.3% in the past year. 

Iridium Communications IRDM reported EPS of 32 cents for the fourth quarter of 2024, beating the Zacks Consensus Estimate by 94%. The bottom line compared favorably with the prior quarter's figure of 30 cents per share.

In the past year, IRDM shares have risen 5.1%.

Gilat Satellite Networks Ltd. GILT reported fourth-quarter 2024 adjusted EPS of 15 cents compared with 11 cents a year ago. The bottom line beat the Zacks Consensus Estimate by 7.14%.

Shares of GILT have soared 52.7% in the past six months.

 

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