Here are 1-3 brief analogies for Descartes Systems (DSGX):

• The SAP of supply chain management.

• Salesforce for global logistics and shipping operations.

• A specialized Oracle for businesses moving goods around the world.

• Transportation Management (TMS): Provides software for planning, executing, and optimizing domestic and international freight transportation.
• Routing, Mobile, and Telematics: Offers solutions to optimize delivery routes, manage mobile workforces, and track vehicles and assets in real-time.
• Global Trade Services: Delivers comprehensive solutions for customs compliance, regulatory declarations, and access to trade content for international shipping.
• Warehouse Management: Supplies software to manage and optimize operations within warehouses and distribution centers, from receiving to shipping.
• E-commerce Shipping & Fulfillment: Provides solutions enabling businesses to manage and streamline the shipping and delivery processes for online orders.

Descartes Systems (DSGX) primarily sells its software-as-a-service (SaaS) solutions to other companies, focusing on logistics and supply chain management. Its business model is B2B (business-to-business).

While Descartes serves a very broad and diverse global customer base, ranging from small local businesses to large multinational corporations, the company typically does not publicly disclose the names of its "major customers" due to the nature of its business and client confidentiality. This is common for SaaS companies with a large and varied client portfolio.

However, based on its product offerings, its customer base largely consists of organizations with complex logistical and supply chain needs across various industries. These customer categories include:

• Logistics Service Providers (LSPs): This category encompasses third-party logistics (3PL) providers, freight forwarders, customs brokers, and other companies that manage the logistics operations for their clients. They use Descartes' solutions for freight matching, customs compliance, transportation management, and more.
• Transportation Carriers: This includes trucking companies, air cargo carriers, ocean shipping lines, and parcel delivery services. These customers leverage Descartes' technology for route optimization, fleet management, scheduling, and tracking.
• Manufacturers, Retailers, and Distributors: Companies that produce, sell, or distribute goods often have intricate supply chains requiring efficient management of inventory, warehousing, order fulfillment, and last-mile delivery. Descartes provides solutions to optimize these operations, improve delivery performance, and enhance customer experience.

Because Descartes does not publicize specific "major customer" names, individual company names and their symbols cannot be provided in this list.

Edward Ryan Chief Executive Officer

Edward Ryan joined Descartes in February 2000, through the acquisition of E-Transport Incorporated. He served as CEO from November 2013 to January 2024, during which time the company experienced significant expansion through a strategy that included over 50 strategic mergers and acquisitions. Before becoming CEO, he held various senior executive positions within Descartes, including Executive Vice President of Global Field Operations and Chief Commercial Officer. Prior to joining Descartes, he was the Vice President of Sales and Marketing at E-Transport, Inc., a company that developed B2B e-commerce software solutions for the multimodal transportation industry. He also previously held a General Manager position at College Pro Painters.

J. Scott Pagan President and Chief Operating Officer

J. Scott Pagan was appointed President and Chief Operating Officer on November 26, 2013. He joined Descartes' legal department in May 2000. His prior roles at Descartes include Chief Corporate Officer, Corporate Secretary, Executive Vice President of Corporate Development, and General Counsel. Before his tenure at Descartes, he practiced corporate and intellectual property law in a private legal firm in Southern Ontario.

Allan Brett Chief Financial Officer

Allan Brett is responsible for Descartes' global financial and administrative functions. He previously held the position of Vice President of Finance and CFO at Aastra Technologies, where he contributed to the company's growth to over $600 million in revenues and 2,000 employees, maintaining profitability for more than 60 consecutive quarters over 18 years. He also serves as a Board Member for RUGGEDCOM INC and Sangoma Technologies.

Ken Wood Executive Vice President, Product Management

Ken Wood joined Descartes in 2001 as a result of the acquisition of Centricity, a cloud-based Transportation Management Systems provider. His background includes leadership positions in development, consulting, and product management at other prominent supply chain software providers such as CAPS Logistics and i2 Technologies.

Chris Jones Executive Vice President, Marketing and Services

Chris Jones is primarily responsible for Descartes' marketing and professional services organizations. With over 40 years of experience in the supply chain market, his previous senior management roles include Senior Vice President at The Aberdeen Group's Value Chain Research division, Executive Vice President of Marketing and Corporate Development for SynQuest, and Vice President and Research Director for Enterprise Resource Planning Solutions at Gartner. He also served as an Associate Director at Kraft General Foods. Additionally, Chris Jones founded Align Capital Partners LP, where he has been a Managing Partner since 2016.

The clear emerging threat for Descartes Systems (DSGX) stems from the rise and increasing sophistication of dedicated, highly funded real-time supply chain visibility platforms such as project44 and FourKites. While Descartes offers comprehensive logistics solutions that include visibility, these specialized platforms have rapidly gained market share and investment by focusing intensely on granular, real-time tracking across modes and geographies. The threat emerges as these visibility platforms begin to expand their offerings beyond pure tracking into broader transportation management, predictive analytics, and logistics orchestration. If they successfully integrate and provide robust capabilities in areas like route optimization, load management, and exception handling, leveraging their superior real-time data and network effects, they could directly challenge core components of Descartes' logistics management suite by offering a potentially more agile or deeply integrated solution originating from a real-time data-first approach.

Descartes Systems (DSGX) operates within several significant addressable markets related to logistics and supply chain management. The market sizes for their main products and services vary, with many showing substantial global growth:

• Total Addressable Market (TAM): Descartes Systems targets a total addressable market estimated at approximately $4 trillion globally. This broad market encompasses industries that benefit from enhanced and automated trade and transportation activities, along with compliance with global trade and customs standards.

• Supply Chain Management (SCM) Software Market: The global SCM software market was valued at USD 30.2 billion in 2023 and is projected to reach USD 63 billion by 2030, growing at a Compound Annual Growth Rate (CAGR) of 11.1%. Another estimate places the global SCM software market at USD 20.98 billion in 2024, expected to reach USD 52.17 billion by 2033 with a CAGR of 10.55%. North America consistently holds the largest share of this market, with the U.S. segment alone estimated at USD 7.15 billion in 2025, forecast to reach USD 9.90 billion by 2030.

• Logistics Software Market: The global logistics software market was valued at USD 17.73 billion in 2024 and is projected to grow to USD 39.66 billion by 2033, exhibiting a CAGR of 9.36%. More broadly, the digital logistics market, which includes various software solutions, is estimated at USD 45.5 billion in 2025 and is expected to reach USD 126.91 billion by 2030 globally, with North America holding a significant share (38% in 2024).

• Trade Management Software Market: The global trade management software market was estimated at USD 1,194.7 million (approximately $1.2 billion) in 2023 and is projected to reach USD 1,717.6 million by 2030, growing at a CAGR of 5.3%. Other reports indicate the global market was valued at USD 1.20 billion in 2024, projected to reach USD 2.11 billion by 2030 at a CAGR of 11.95%. North America dominates this market, holding a revenue share of 37.6% in 2023.

• Customs Compliance Software Market: The global customs compliance software market is estimated at $5 billion in 2025 and is projected to reach approximately $12 billion by 2033, at a CAGR of 12%. Another estimate values the global customs compliance software market at $1.7 billion in 2024, forecasted to hit $4.1 billion by 2033. North America and Europe are noted as regions with the highest concentration of vendors and users.

• High-tech Logistics Market: The global high-tech logistics market was valued at USD 47.7 billion in 2024 and is projected to grow at a CAGR of 14.5% between 2025 and 2034. North America held the largest revenue share in this market at 38.1% in 2023.

Descartes Systems Group (DSGX) is positioned for future revenue growth over the next 2-3 years through a combination of strategic acquisitions, organic expansion within its key logistics and supply chain solution segments, and continuous investment in advanced technologies like AI.

Here are the expected drivers of future revenue growth:

1. Strategic Acquisitions: Descartes has a stated strategy of growing through both organic means and strategic acquisitions, aiming for 10% to 15% annual adjusted EBITDA growth. The company consistently adds complementary solutions to its Global Logistics Network through M&A. Recent examples include the acquisitions of Sellercloud to strengthen its e-commerce portfolio and Finale Inventory to enhance inventory management solutions. These acquisitions expand Descartes' service offerings and client base, contributing directly to revenue.
2. Organic Growth in Core Logistics and Supply Chain Solutions: The company anticipates continued strong demand in key segments such as Global Trade Intelligence, Customs and Regulatory Solutions, and Transportation Management. Specifically, the MacroPoint real-time tracking solution is driving cross-selling opportunities and gaining market share. Descartes' solutions help customers manage the increasing complexity, uncertainty, and regulatory changes in global trade and domestic supply chains, which fosters organic revenue expansion.
3. Expansion of Global Logistics Network and SaaS Model: Descartes' on-demand, software-as-a-service (SaaS) solutions, which constitute a significant portion of its revenue (93% of total revenues in Q4 FY25), provide a stable and scalable foundation for growth. The company's goal is to unite logistics-intensive businesses within its Global Logistics Network, connecting shippers, carriers, logistics service providers, and customs authorities. As more participants join and leverage the network's capabilities, the recurring service revenue is expected to grow.
4. Investment in AI and Innovative Technologies: Descartes is actively investing in AI and technology capabilities to enhance its competitive edge and address evolving customer needs. This includes the integration of AI-enabled cameras, as seen with their GroundCloud business, and leveraging AI and IoT due to its extensive network data. These technological advancements are aimed at improving productivity, security, and sustainability for logistics businesses, which in turn drives demand for their solutions and contributes to future revenue.

Share Repurchases

• Descartes Systems has not engaged in meaningful share buybacks over the last 3-5 years, with management's plans remaining quiet on this front.
• Net total equity issued/repurchased for 2025 was a net issuance of $12 million, for 2024 it was $9 million, and for 2023 it was $2 million, indicating no significant repurchases.

Share Issuance

• The net dollar increase in stock outstanding was valued at approximately $6.7 million over the trailing twelve months as of November 2025.
• As of October 2024, the net dollar increase in total stock outstanding for the prior four quarters was valued at approximately $4.1 million.
• Stock-based compensation expense was $4.4 million in Q1 2025, with an expectation of approximately $20 million for the remainder of fiscal year 2026.

Outbound Investments

• Descartes Systems is an active acquirer, with several strategic acquisitions made in 2024 and 2025 to expand its logistics technology offerings and market reach.
• Key acquisitions include 3GTMS for approximately $115 million (March 2025) to enhance transportation management solutions, Finale Inventory for up to $55 million USD (August 2025) for cloud-based inventory management, and Sellercloud for $110 million USD (October 2024) for inventory and order management.
• Other notable acquisitions include PackageRoute for $2 million (June 2025), MyCarrierPortal for $24 million (September 2024), BoxTop Technologies for £10.25 million (US $13 million) (June 2024), Aerospace Software Developments for 54 million euros (April 2024), and OCR Services, Inc. for $82.8 million (March 2024).

Capital Expenditures

• Capital expenditures have been relatively low, reflecting Descartes' asset-light business model.
• Capital expenditures were approximately $6.5 million over the trailing twelve months as of November 2025.
• For fiscal year 2025, capital additions were $1.9 million in the first quarter, with an expectation of $4 million to $5 million in additional capital expenditures for the rest of the year.