From Yahoo Finance: 2025-06-04 19:09:00

Descartes, a supply chain software provider, is reducing its workforce by 7%, or about 200 employees, due to uncertainties in the trade landscape affecting the freight industry. The restructuring plan, announced a quarter ago, aims to generate $15 million in annual cost savings. Earnings per share for its fiscal first quarter were 41 cents, slightly below estimates.

The company reported a 12% year-over-year increase in consolidated revenue to $169 million, driven by previous acquisitions. Descartes is experiencing high demand for global trade intelligence services amidst tariff changes. Adjusted EBITDA was up 12% year-over-year, reaching $75 million, with an improved margin of 44.5%.

Despite a 16% year-over-year decline in cash flow from operations, Descartes ended the quarter with $176 million in cash and a $350 million untapped line of credit. The company plans to use its capital for strategic acquisitions. Recently, Descartes acquired 3GTMS for $112.7 million, positioning itself for potential distressed acquisitions in the future.

CEO Ed Ryan believes Descartes is well-prepared to navigate the challenging economic environment and is ready to make additional acquisitions if opportunities arise. Descartes’ stock was down 0.5% in after-hours trading following the announcement of the workforce reduction.



Read more at Yahoo Finance: Descartes cutting 7% of workforce after earnings miss