$DSGX

DESCARTES SYSTEMS GROUP INC

CIK:0001050140|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Jan. 31, 2026	Jan. 31, 2025	Jan. 31, 2024
CONSOLIDATED STATEMENTS OF OPERATIONS
REVENUES	$ 728,992	$ 651,000	$ 572,931
COST OF REVENUES (exclusive of amortization presented separately below)	167,065	158,574	138,295
GROSS MARGIN	561,927	492,426	434,636
EXPENSES
Sales and marketing	82,570	73,692	68,161
Research and development	105,310	95,497	84,103
General and administrative	72,457	65,248	57,373
Other charges (Note 20)	10,429	7,466	21,649
Amortization of intangible assets	81,183	69,399	60,501
TOTAL EXPENSES	351,949	311,302	291,787
INCOME FROM OPERATIONS	209,978	181,124	142,849
INTEREST EXPENSE	(967)	(1,004)	(1,363)
INVESTMENT AND OTHER INCOME	8,079	11,513	9,666
INCOME BEFORE INCOME TAXES	217,090	191,633	151,152
INCOME TAX EXPENSE (RECOVERY) (Note 18)
Current	42,252	53,402	41,223
Deferred	11,071	(5,042)	(5,978)
Income tax expense	53,323	48,360	35,245
NET INCOME	$ 163,767	$ 143,273	$ 115,907
EARNINGS PER SHARE (Note 16)
Basic (in $ per share)	$ 1.91	$ 1.68	$ 1.36
Diluted (in $ per share)	$ 1.87	$ 1.64	$ 1.34
WEIGHTED AVERAGE SHARES OUTSTANDING (thousands)
Basic (in shares)	85,871	85,443	85,068
Diluted (in shares)	87,579	87,323	86,818

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2026	Jan. 31, 2025	Jan. 31, 2024
OPERATING ACTIVITIES
Net income	$ 163,767	$ 143,273	$ 115,907
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation	5,948	5,589	5,474
Amortization of intangible assets	81,183	69,399	60,501
Stock-based compensation expense (Note 17)	20,907	19,962	16,480
Other non-cash operating activities	414	23	114
Deferred tax expense (recovery)	11,071	(5,042)	(5,978)
Changes in operating assets and liabilities (Note 21)	(17,044)	(13,932)	15,182
Cash provided by operating activities	266,246	219,272	207,680
INVESTING ACTIVITIES
Additions to property and equipment	(5,730)	(6,743)	(5,563)
Acquisition of subsidiaries, net of cash acquired (Note 3)	(151,620)	(290,204)	(142,700)
Cash used in investing activities	(157,350)	(296,947)	(148,263)
FINANCING ACTIVITIES
Payment of debt issuance costs	(38)	(53)	(43)
Repurchase of common shares for cash, including purchasing costs (Note 15)	(892)
Issuance of common shares for cash, net of issuance costs (Note 15)	14,104	12,391	9,272
Payment of withholding taxes on net share settlements	(6,487)	(6,745)	(4,886)
Payment of contingent consideration	(1,671)	(9,223)	(19,084)
Cash provided by (used in) financing activities	5,016	(3,630)	(14,741)
Effect of foreign exchange rate changes on cash	6,476	(3,509)	(109)
Increase (decrease) in cash	120,388	(84,814)	44,567
Cash, beginning of year	236,138	320,952	276,385
Cash, end of year	356,526	236,138	320,952
Supplemental disclosure of cash flow information:
Cash paid during the year for income taxes	$ 57,248	$ 53,411	$ 44,939

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jan. 31, 2026	Jan. 31, 2025
CURRENT ASSETS
Cash	$ 356,526	$ 236,138
Accounts receivable (net)
Trade (Note 5)	64,771	53,953
Other (Note 6)	26,453	16,931
Prepaid expenses and other (Note 7)	34,317	45,544
TOTAL CURRENT ASSETS	482,067	352,566
OTHER LONG-TERM ASSETS (Note 19)	27,346	24,887
PROPERTY AND EQUIPMENT, NET (Note 8)	13,507	12,481
RIGHT-OF-USE ASSETS (Note 13)	8,173	7,623
DEFERRED INCOME TAXES	6,720	3,802
INTANGIBLE ASSETS, NET (Note 9)	332,069	321,270
GOODWILL (Note 10)	1,025,783	924,755
TOTAL ASSETS	1,895,665	1,647,384
CURRENT LIABILITIES
Accounts payable	20,852	20,650
Accrued liabilities (Note 11)	73,881	79,656
Lease obligations (Note 13)	3,471	3,178
Income taxes payable	7,133	9,313
Deferred revenue (Note 19)	117,887	104,230
TOTAL CURRENT LIABILITIES	223,224	217,027
LEASE OBLIGATIONS (Note 13)	4,892	4,718
DEFERRED REVENUE (Note 19)	1,175	978
INCOME TAXES PAYABLE	6,019	5,531
DEFERRED INCOME TAXES	41,443	34,127
TOTAL LIABILITIES	276,753	262,381
COMMITMENTS, CONTINGENCIES AND GUARANTEES (Note 14)
SHAREHOLDERS' EQUITY (Note 15)
Common shares - unlimited shares authorized; Shares issued and outstanding totaled 86,022,028 at January 31, 2026 (January 31, 2025 - 85,605,969)	590,734	568,339
Additional paid-in capital	509,190	503,133
Accumulated other comprehensive loss	(7,987)	(50,497)
Retained earnings	526,975	364,028
TOTAL SHAREHOLDERS' EQUITY	1,618,912	1,385,003
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 1,895,665	$ 1,647,384