Descartes (DSGX) Misses Q2 Expectations Due to Trade Uncertainty

Supply chain software provider Descartes (DSGX) missed fiscal second-quarter expectations with earnings per share of 43 cents, 8 cents below estimates. Consolidated revenue rose 10% to $180 million, with services revenue up 14% to $167 million.

CEO Ed Ryan cited uncertainty in global trade costs impacting customer decisions. Descartes reported adjusted EBITDA of $80 million, a 14% increase, with a margin of 44.6%. The company generated $63 million in cash flow, up 82% year over year, ending the quarter with $241 million in cash. Descartes acquired Finale Inventory for $40 million in August.