Detailed financial statements for The Descartes Systems Group Inc. (DSGX): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year: ten fiscal years free and up to 20 with Premium.
The Descartes Systems Group Inc. (DSGX) offers comprehensive, cloud-native solutions designed to optimize business processes within the logistics and supply chain sectors. The primary objective is to significantly elevate the efficiency, operational excellence, and security posture for enterprises worldwide that heavily rely on robust logistics. At its core, the company offers a proprietary "Logistics Technology" platform.
Analysis Summary
The Descartes Systems Group Inc. reported revenue of $729.0M in the most recent fiscal year, growing at a 5-year CAGR of 15.9%. Net income reached $163.8M, with a 25.7% 5-year CAGR.
Trailing-twelve-month margins: gross margin 77.6%, operating margin 31.9%, net margin 24.3%. Free cash flow grew at 15.9% CAGR over 5 years.
At $91.40 (closing price, November 2, 2026), DSGX trades at a P/E of 41.55 and an ROE of 11.69%. Market capitalisation stands at $7.8B.
Balance sheet quality for DSGX: debt-to-equity ratio of 0.00, current ratio of 2.02 over the last 12 months, net cash position of $346.0M at the end of the last fiscal year. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is strong: free cash flow of $266.2M represents 163% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Income Statement (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $203.8M | $237.4M | $275.2M | $325.8M | $348.7M | $424.7M | $486.0M | $572.9M | $651.0M | $729.0M |
| Cost of Revenue | $56.1M | $63.7M | $75.0M | $85.7M | $89.9M | $101.8M | $113.3M | $138.3M | $158.6M | $167.1M |
| Gross Profit | $147.7M | $173.7M | $200.2M | $240.1M | $258.8M | $322.9M | $372.7M | $434.6M | $492.4M | $561.9M |
| Research & Development | $35.6M | $41.8M | $47.9M | $53.5M | $54.1M | $62.6M | $70.4M | $84.4M | $95.5M | $105.3M |
| Selling, General & Admin | $48.0M | $58.6M | $66.9M | $75.0M | $75.1M | $91.3M | $106.3M | $125.5M | $138.9M | $155.0M |
| Operating Expenses | $117.0M | $137.9M | $158.7M | $187.8M | $187.4M | $219.4M | $242.3M | $291.8M | $311.3M | $341.5M |
| Operating Income | $30.7M | $35.9M | $41.4M | $52.3M | $71.4M | $103.4M | $130.4M | $142.8M | $181.1M | $220.4M |
| EBITDA | $65.7M | $73.6M | $86.4M | $114.1M | $133.2M | $166.5M | $198.0M | $219.4M | $263.6M | $305.2M |
| Interest Expense | $611,000 | $1.3M | $2.1M | $4.4M | $1.2M | $1.1M | $1.2M | $1.4M | $1.0M | $988,218 |
| Pre-tax Income | $31.5M | $34.7M | $39.5M | $48.0M | $70.4M | $102.6M | $133.7M | $151.2M | $191.6M | $217.1M |
| Income Tax | $7.7M | $7.9M | $8.2M | $11.0M | $18.3M | $16.3M | $31.5M | $35.2M | $48.4M | $53.3M |
| Net Income | $23.8M | $26.9M | $31.3M | $37.0M | $52.1M | $86.3M | $102.2M | $115.9M | $143.3M | $163.8M |
| EPS | $0.31 | $0.35 | $0.41 | $0.45 | $0.62 | $1.02 | $1.21 | $1.36 | $1.68 | $1.95 |
| EPS (Diluted) | $0.31 | $0.35 | $0.40 | $0.45 | $0.61 | $1.00 | $1.18 | $1.34 | $1.64 | $1.91 |
| Shares Outstanding (Diluted) | 76.5 M | 77.1 M | 77.8 M | 82.9 M | 85.8 M | 86.2 M | 86.5 M | 86.8 M | 87.3 M | 87.6 M |
Income Statement (Quarterly)
| Year | 2025-Q4 | 2026-Q1 | 2026-Q2 | 2026-Q3 |
|---|---|---|---|---|
| Revenue | $185.8M | $194.6M | $193.6M | $201.1M |
| Gross Profit | $123.3M | $171.4M | $150.2M | $156.7M |
| Operating Income | $61.6M | $64.4M | $63.6M | $66.7M |
| EBITDA | $79.9M | $84.6M | $84.3M | $88.5M |
| Net Income | $43.5M | $46.0M | $48.5M | $50.0M |
| EPS | $0.51 | $0.58 | $0.57 | $0.58 |
| EPS (Diluted) | $0.50 | $0.57 | $0.56 | $0.57 |
Balance Sheet (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash & Equivalents | $38.1M | $35.1M | $27.3M | $44.4M | $133.7M | $213.4M | $276.4M | $321.0M | $236.1M | $354.3M |
| Short-term Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Receivables | $29.1M | $32.0M | $35.8M | $42.4M | $52.0M | $41.7M | $45.2M | $51.6M | $70.9M | $90.7M |
| Inventory | $167,000 | $123,000 | $95,000 | $411,000 | $429,000 | $868,000 | $759,000 | $353,000 | $712,464 | $100,374 |
| Total Current Assets | $72.6M | $74.9M | $72.2M | $100.2M | $203.1M | $292.1M | $358.7M | $418.2M | $352.6M | $479.1M |
| Property, Plant & Equipment | $10.4M | $12.8M | $12.6M | $26.6M | $24.3M | $21.4M | $18.2M | $17.8M | $20.1M | $21.5M |
| Goodwill | $263.1M | $350.1M | $378.2M | $523.7M | $565.2M | $608.8M | $675.6M | $760.4M | $924.8M | $1.02B |
| Intangible Assets | $145.4M | $178.0M | $176.2M | $257.0M | $240.0M | $229.6M | $229.8M | $251.0M | $321.3M | $330.0M |
| Total Assets | $500.5M | $624.9M | $653.3M | $942.6M | $1.06B | $1.19B | $1.32B | $1.47B | $1.65B | $1.88B |
| Accounts Payable | $4.7M | $7.9M | $5.1M | $7.7M | $8.0M | $10.6M | $10.6M | $17.5M | $20.6M | $20.7M |
| Short-term Debt | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | $369,607 | 0 |
| Total Current Liabilities | $53.8M | $67.7M | $70.4M | $88.9M | $104.3M | $133.4M | $169.6M | $203.6M | $217.0M | $221.8M |
| Long-term Debt | 0 | $37.0M | $25.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Liabilities | $69.9M | $126.1M | $119.8M | $120.9M | $152.2M | $185.6M | $216.7M | $236.3M | $262.4M | $275.0M |
| Retained Earnings | -$238.5M | -$211.6M | -$172.8M | -$135.8M | -$83.7M | $2.6M | $104.8M | $220.8M | $364.0M | $523.7M |
| Total Equity | $430.6M | $498.8M | $533.5M | $821.7M | $911.1M | $999.8M | $1.10B | $1.24B | $1.39B | $1.61B |
| Total Debt | 0 | $37.0M | $25.5M | $13.4M | $13.1M | $11.4M | $7.3M | $7.0M | $8.3M | $8.3M |
| Net Debt | -$38.1M | $1.9M | -$1.8M | -$31.0M | -$120.6M | -$202.0M | -$269.1M | -$314.0M | -$227.9M | -$346.0M |
| Working Capital | $18.7M | $7.2M | $1.9M | $11.3M | $98.8M | $158.6M | $189.1M | $214.6M | $135.5M | $257.2M |
Balance Sheet (Quarterly)
| Year | 2025-Q4 | 2026-Q1 | 2026-Q2 | 2026-Q3 |
|---|---|---|---|---|
| Cash & Equivalents | $278.7M | $356.5M | $377.0M | $401.1M |
| Total Assets | $1.82B | $1.90B | $1.92B | $1.96B |
| Total Liabilities | $269.0M | $276.8M | $290.9M | $312.3M |
| Total Equity | $1.55B | $1.62B | $1.63B | $1.65B |
| Total Debt | $12.0M | $8.4M | $8.1M | $7.5M |
Cash Flow (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Income | $23.8M | $26.9M | $31.3M | $37.0M | $52.1M | $86.3M | $102.2M | $115.9M | $143.3M | $167.4M |
| Depreciation & Amortization | $33.6M | $37.6M | $44.7M | $61.5M | $61.7M | $64.2M | $65.4M | $66.0M | $75.0M | $87.1M |
| Stock-based Compensation | $2.0M | $2.8M | $3.7M | $4.9M | $6.3M | $11.0M | $13.7M | $16.5M | $20.0M | 0 |
| Change in Working Capital | $10.1M | $4.4M | -$3.8M | -$5.3M | -$3.6M | $12.8M | $7.8M | $15.2M | -$13.9M | -$17.4M |
| Operating Cash Flow | $72.6M | $72.1M | $78.1M | $104.3M | $131.2M | $176.1M | $192.4M | $208.5M | $219.3M | $272.0M |
| Capital Expenditure | -$4.9M | -$5.1M | -$5.2M | -$4.9M | -$3.8M | -$4.8M | -$6.1M | -$5.6M | -$6.7M | -$5.9M |
| Acquisitions | -$71.3M | -$111.9M | -$67.9M | -$292.1M | -$48.4M | -$90.3M | -$115.6M | -$142.7M | -$290.2M | -$154.9M |
| Stock Repurchased | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -$911,573 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | $67.7M | $67.1M | $72.8M | $99.4M | $127.5M | $171.3M | $186.3M | $202.9M | $212.5M | $266.2M |
Cash Flow (Quarterly)
| Year | 2025-Q4 | 2026-Q1 | 2026-Q2 | 2026-Q3 |
|---|---|---|---|---|
| Operating Cash Flow | $72.7M | $77.4M | $75.8M | $80.9M |
| Capital Expenditure | -$1.2M | -$1.5M | -$2.6M | -$2.0M |
| Free Cash Flow | $71.5M | $75.9M | $73.2M | $78.9M |
| Dividends Paid | 0 | 0 | 0 | 0 |
| Stock-based Compensation | 0 | 0 | 0 | 0 |
Growth & Margins (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue Growth (YoY) | +16.5% | +15.9% | +18.4% | +7.0% | +21.8% | +14.4% | +17.9% | +13.6% | +12.0% | |
| Net Income Growth (YoY) | +12.8% | +16.4% | +18.3% | +40.8% | +65.6% | +18.5% | +13.4% | +23.6% | +14.3% | |
| EPS Growth (YoY) | +12.9% | +17.1% | +9.8% | +37.8% | +64.5% | +18.6% | +12.4% | +23.5% | +16.1% | |
| Shares Change (YoY) | +0.8% | +0.9% | +6.5% | +3.5% | +0.5% | +0.3% | +0.4% | +0.6% | +0.3% | |
| FCF Growth (YoY) | -0.9% | +8.6% | +36.4% | +28.3% | +34.4% | +8.8% | +8.9% | +4.8% | +25.3% | |
| Gross Margin | 72.5% | 73.2% | 72.7% | 73.7% | 74.2% | 76.0% | 76.7% | 75.9% | 75.6% | 77.1% |
| Operating Margin | 15.1% | 15.1% | 15.1% | 16.0% | 20.5% | 24.4% | 26.8% | 24.9% | 27.8% | 30.2% |
| EBITDA Margin | 32.3% | 31.0% | 31.4% | 35.0% | 38.2% | 39.2% | 40.7% | 38.3% | 40.5% | 41.9% |
| Net Margin | 11.7% | 11.3% | 11.4% | 11.4% | 14.9% | 20.3% | 21.0% | 20.2% | 22.0% | 22.5% |
| FCF Margin | 33.2% | 28.2% | 26.5% | 30.5% | 36.6% | 40.3% | 38.3% | 35.4% | 32.6% | 36.5% |
| Effective Tax Rate | 24.3% | 22.6% | 20.8% | 23.0% | 26.0% | 15.9% | 23.5% | 23.3% | 25.2% | 24.6% |
Per-Share Data (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| FCF Per Share | $0.88 | $0.87 | $0.94 | $1.20 | $1.49 | $1.99 | $2.16 | $2.34 | $2.43 | $3.04 |
| Dividends Per Share | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Shares Outstanding (Basic) | 75.8 M | 76.3 M | 76.8 M | 81.7 M | 84.4 M | 84.6 M | 84.8 M | 85.1 M | 85.4 M | 85.9 M |
What to look at in Technology companies
- Revenue growth 3y (>=15%/year) — Validates sustained traction, not a one-off.
- Gross margin (Sub-sector dependent) — SaaS >=70%, Internet >=55%, Semis >=45%, Hardware >=35%.
- FCF / Revenue (>=20%) — Real cash generated. Many tech firms dress up non-GAAP earnings.
- ROIC (>=15%) — Capital reinvested efficiency — Buffett's first metric.
- SBC / Revenue (<10% healthy) — Stock-based compensation. Silent dilution: >20% destroys value.
- Net Debt / EBITDA (<=2x (1.5x SaaS)) — Resilience in downturns and rate hikes.
Profitability
| Return on Equity | 11.69% |
| Return on Invested Capital | 10.77% |
| Return on Assets | 9.60% |
| Gross Margin | 77.61% |
| Operating Margin | 31.87% |
| Net Margin | 24.25% |
Financial Health
| Debt / Equity | 0.00 |
| Current Ratio | 2.02 |
| Piotroski F-Score | 7 |
| Altman Z-Score | 15.33 |
Key Ratios (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| P/E | 70.48 | 81.00 | 75.76 | 99.58 | 101.34 | 71.34 | 60.35 | 64.40 | 68.95 | 38.34 |
| P/B | 3.85 | 4.34 | 4.47 | 4.45 | 5.82 | 6.16 | 5.63 | 6.02 | 7.15 | 3.99 |
| P/S | 8.13 | 9.11 | 8.67 | 11.23 | 15.20 | 14.49 | 12.74 | 13.01 | 15.20 | 8.81 |
| Gross Margin | 72.5% | 73.2% | 72.7% | 73.7% | 74.2% | 76.0% | 76.7% | 75.9% | 75.6% | 77.1% |
| Operating Margin | 15.1% | 15.1% | 15.1% | 16.0% | 20.5% | 24.4% | 26.8% | 24.9% | 27.8% | 30.2% |
| Net Margin | 11.7% | 11.3% | 11.4% | 11.4% | 14.9% | 20.3% | 21.0% | 20.2% | 22.0% | 22.5% |
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Explore sector: Technology · Software - Application
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