DSGX - Rinse and Repeat

Research evidence excerpt

DSGX - Rinse and Repeat

Airfreight & Surface Transportation

Airfreight & Logistics - Market Weight

THE DESCARTES SYSTEMS GROUP, INC. (DSGX) June 4, 2026

DSGX - Rinse and Repeat Rating:

Outperform

The Wolfe Byte Price: $74.11

After the close, DSGX reported 20% EBITDA growth and its 3rd consecutive Price Target:

quarter of accelerating organic growth. We reiterate our Outperform rating. $92

% Upside:

24.1%

●F1Q Beat with Record Margins. DSGX reported F1Q adjusted EBITDA of View DSGX Model

$90M, above Consensus of $87M and our estimate of $88M. Total sales View Comp Table

increased 15% y/y (similar with last quarter), while EBITDA margins improved Company Information

210bp y/y to a record of 46.4%. Total EBITDA increased 20% y/y in F1Q, the 52-Week Range $63 - $116

strongest growth rate in 16 quarters and above DSGX's long-term 10%-15% Market Cap. (MM) $6,375

target. DSGX is also now buying back stock for the first time ever. Enterprise Value (MM) $6,144

Shares Out. (MM) 86.0

●Organic Growth Accelerates. DSGX reported 9% Services organic revenue Avg. Value Traded (MM) $45.55

growth, up from +8% last quarter as DSGX continues to benefit from SI% of Float 0.0%

increased global trade complexity. DSGX continues to see a weak underlying FCF Yield 2.5%

ocean market, but is seeing airfreight strength from high-value freight

(semiconductors & AI infrastructure) and the rise of smaller, more frequent 120

e-commerce inventory restocking trends. Domestically, DSGX noted that TL 100

volumes declined 4% in F1Q due to capacity exits and higher fuel prices. 90

●Baseline Calibration Continues to Move Higher. DSGX's baseline revenue 80

calibration for F2Q increased $4M (+3% q/q), while its baseline EBITDA 70

60 calibration also increased $2M (+3% q/q). We're maintaining our F2Q EBITDA