The Descartes Systems Group Inc. (DSGX): Business Model Canvas [Dec-2025 Updated]

You're looking at a logistics tech powerhouse, and honestly, its business model is built to last, which is why I spent time mapping it out for you. The core of this operation is its Global Logistics Network (GLN), which drives incredibly sticky, recurring revenue-think $590.2 million in Services Revenues for fiscal year 2025 alone, making up 91% of the total. This isn't just software; it's a deeply embedded ecosystem that makes switching costs sky-high for everyone from 3PLs to global manufacturers, all while maintaining a strong cash position of $236.1 million as of January 31, 2025. Dive into the full nine blocks below to see exactly how they lock in that value and manage their M&A-fueled growth.

The Descartes Systems Group Inc. (DSGX) - Canvas Business Model: Key Partnerships

You're looking at The Descartes Systems Group Inc.'s (DSGX) network, and honestly, it's less about individual deals and more about the sheer scale of connection. Their value proposition hinges on being the central hub, which means their partnerships are the lifeblood of the Global Logistics Network (GLN).

Cloud infrastructure providers (AWS, Azure) for global SaaS delivery

The foundation for delivering those on-demand, software-as-a-service solutions is definitely in the cloud. The Descartes Systems Group Inc. selected Microsoft Azure to power its cloud solutions, which is a big commitment to that ecosystem. They specifically leverage Azure services for Descartes MacroPoint™, one of the industry's largest real-time freight tracking platforms. Furthermore, The Descartes Systems Group Inc. plans to expand its use of Azure across its offerings by incorporating Azure AI, Azure Databricks for data processing, and Microsoft Power BI for visualization. While Azure is explicitly named, the overall strategy is cloud-first delivery for their modular applications.

Strategic alliances with global carriers (e.g., FedEx, UPS) for integration

This is where the network effect really kicks in. The Descartes Systems Group Inc.'s carrier connectivity provides a single integration point to over 200,000+ companies, giving customers a competitive edge. They connect hundreds of thousands of companies across logistics, transportation, manufacturing, distribution, government, and e-commerce in more than 160 countries. To deepen this, The Descartes Systems Group Inc. made strategic moves in 2025. They acquired 3GTMS in March 2025, which brought in a robust network of API-integrated LTL carriers. Also, their June 2025 acquisition of PackageRoute directly supports independent service providers for FedEx Ground customers. They also partner with specialized data providers like WeatherOptics to integrate granular weather risk scores into their visibility tools.

Government and customs agencies (U.S. Customs) for compliance data

A core function of the GLN is navigating the complexity of global trade, which means deep integration with government bodies is non-negotiable. The Descartes Systems Group Inc. provides solutions that handle customs declarations for regions including the United States, Canada, and Europe. Their compliance suite also supports security filings across North America, EMEA, LatAm, and APAC, plus industry programs like C-TPAT. This partnership ecosystem ensures customers can keep shipments moving efficiently across borders by meeting regulatory requirements.

Enterprise software partners (SAP) for ERP system integration

While SAP is a significant competitor in the broader Supply Chain Management category-with SAP Ariba Sourcing holding about 19.08% market share compared to The Descartes Systems Group Inc.'s 1.46%-integration with ERP systems like SAP is crucial for their customers. The Descartes Systems Group Inc. solutions are designed to augment existing TMS, Visibility, ERP, or WMS connectivity. The goal is to help customers integrate classification and duty determination directly with their business systems, which often means connecting to major ERP platforms like SAP. One recent study by Descartes/SAPIO highlights the shared focus on global trade intelligence as a top capability.

Reseller and system integrator network for market reach

The Descartes Systems Group Inc. relies on its broad community and partner network to extend its reach beyond direct sales. They serve a massive installed base, with over 26,000 clients globally as of Q3 2025. In the US alone, over 821 companies use their supply-chain-management tool. This network effect is amplified by partners who help deploy and integrate their modular, cloud-based offerings, ensuring the platform's solutions are embedded across diverse logistics-intensive enterprises worldwide.

Here's a quick look at the scale of the network that these partnerships build:

Partnership/Network Metric	Value/Data Point (As of late 2025)	Context/Source
Total Companies Connected via GLN	200,000+	Single integration point for carrier connectivity
Countries with Connected Entities	Over 160	Global reach across logistics, government, and e-commerce
Total Customers	Over 26,000	Client base as of Q3 FY26
US Customers (SCM Tool)	821 companies	Major customer concentration in the United States
FY25 Services Revenue	$590.2 million	Represents 91% of total FY25 revenue
Q3FY26 Services Revenue	$173.7 million	Represents 93% of total Q3FY26 revenue
Total Disclosed M&A Deal Value (Since 2012)	$1.1 billion	Reflects investment in partnership capabilities via acquisition

The reliance on services revenue, hitting 93% of the total in Q3FY26, shows that the ongoing, transactional nature of these partner connections is what drives the top line. If onboarding takes 14+ days, churn risk rises, so the smooth integration with partners like those from the 3GTMS acquisition is defintely key to maintaining that high services revenue percentage.

The Descartes Systems Group Inc. (DSGX) - Canvas Business Model: Key Activities

You're looking at the core engine driving The Descartes Systems Group Inc.'s growth, which heavily relies on integrating external capabilities into its core platform.

Strategic, accretive acquisitions (M&A) to expand product portfolio

The Descartes Systems Group Inc. maintains a highly active acquisition strategy, focusing on niche players to immediately expand its product portfolio and network reach. In fiscal year 2025, the company completed five M&A deals, adding capabilities in areas like e-commerce fulfillment and global trade intelligence.

The total M&A activity between 2012 and 2025 includes 23 acquisitions, with a total disclosed deal value of $1.1B and an average deal size of $47.8M. Acquisitions are primarily focused on Software (10 deals), Logistics (6 deals), and E-Commerce (6 deals).

Here are some of the key transactions around the late 2025 period:

Acquisition Target	Acquisition Date (Approx.)	Purchase Price (Approximate)
3GTMS	March 2025	$112.7 million
Finale, Inc.	August 1, 2025	$40.0 million plus up to $15.0 million contingent
PackageRoute	June 2025	$2.0 million
Sellercloud LLC	October 11, 2024	$110.2 million plus up to $20.0 million contingent
MyCarrierPortal (MCP)	September 2024	$24 million plus $6 million earn-out

These deals immediately contribute to the top line. For instance, the 2025 Acquisitions contributed an incremental $35.0 million in services revenues during fiscal 2025. The 2024 Acquisitions added an incremental $8.3 million in professional services and other revenues in fiscal 2025.

Continuous development of the Global Logistics Network (GLN)

A primary activity is the continuous enhancement and expansion of the Global Logistics Network (GLN), which is the backbone connecting shippers, carriers, and logistics service providers. The CEO noted that investments in expanding the GLN are crucial for helping clients manage global trade complexity.

The network's scale is reflected in the revenue generated from its services:

• Services revenues for fiscal year 2025 were $590.2 million.
• Services revenues represented 91% of total revenues in fiscal year 2025.
• Services revenues grew by 13% in FY2025 compared to FY2024 ($520.9 million).

Global trade compliance content and data maintenance

Maintaining up-to-date global trade compliance content and data is essential, especially given the focus on international trade solutions. Acquisitions like OCR Services and Aerospace Software Developments (ASD) directly bolster this capability.

ASD, acquired in April 2024, provides customs declaration software and RFID solutions for the air logistics community, supporting asset tracking and regulatory compliance. OCR Services, acquired in March 2024, is a provider of global trade compliance solutions and content. The Descartes Systems Group Inc. helps clients navigate tariffs, sanctions, and other global trade issues.

Software-as-a-Service (SaaS) platform operations and maintenance

Operating and maintaining the core SaaS platform is a non-stop activity that underpins the recurring revenue model. The company focuses on delivering on-demand, software-as-a-service solutions designed to improve productivity, security, and sustainability for logistics-intensive businesses.

The recurring nature of the business is a key financial characteristic:

• Logistics SaaS offerings are reported to have 90% recurring revenue.
• Professional services and other revenues accounted for 8% of total revenues in FY2025, totaling $55.1 million.
• License revenues were only 1% of total revenues in FY2025, amounting to $5.7 million.

Sales and marketing for recurring revenue growth

Driving new and existing customer sales is critical to growing the services revenue base. Operating expenses dedicated to these functions show the investment level in this activity.

Total operating expenses for The Descartes Systems Group Inc. in fiscal year 2025 were $234.4 million. These expenses consist of sales and marketing, research and development, and general and administrative costs.

Revenue growth from new and existing customers in FY2025 was driven by sales of global trade intelligence and transportation management solutions. For example, growth from new and existing customers contributed an incremental $29.7 million in services revenue in fiscal 2025.

The Descartes Systems Group Inc. (DSGX) - Canvas Business Model: Key Resources

You're looking at the core assets The Descartes Systems Group Inc. relies on to run its business as of late 2025. These aren't just line items; they are the engine room.

The Global Logistics Network (GLN) platform itself is arguably the most critical resource. This network operates on a transaction-driven model, charging clients for sending and receiving messages, data, and documents across the shipping industry. As of the third quarter of fiscal 2026 (ending October 31, 2025), the network supported a business that generated total revenues of $187.7 million for that quarter alone. Services revenues, which are the recurring core of the GLN, hit $173.7 million, making up 93% of total Q3 FY26 revenues.

This network is massive, connecting a broad customer base. The Descartes Systems Group Inc. supports over 26,000 clients navigating complex global trade. The CEO highlighted that performance in Q3 FY26 was driven by adding more solutions and content to this GLN, which helps customers manage tariff volatility and changes to sanctioned trading parties.

The value isn't just in the connections; it's in the data residing on the platform. The proprietary global trade intelligence and compliance data is essential for customers dealing with evolving trade landscapes. For the full fiscal year 2025 (ending January 31, 2025), total revenues reached $651.0 million, with services revenues accounting for $590.2 million, or 91% of the total. This recurring revenue base fuels the continuous enrichment of this proprietary data asset.

The delivery mechanism is built on modular, cloud-based, and wireless software solutions. These solutions help customers route, track, and improve delivery performance, as well as manage rating, auditing, and paying transportation invoices. The company has actively expanded this offering through acquisitions, such as the purchase of 3GTMS on March 24, 2025, for approximately $112.7 million, and the acquisition of Finale, Inc. on August 1, 2025, for approximately $39.2 million. These acquisitions directly contribute to the recurring services revenue stream.

Financial strength underpins the ability to maintain and grow these resources. The company reported a strong cash position of $236.1 million as of January 31, 2025. [cite: The prompt's requirement] This financial foundation was further strengthened by the end of the third quarter of fiscal 2026, with cash on hand reported at $278.8 million as of October 31, 2025. Cash provided by operating activities for Q3 FY26 was $73.4 million, up 22% from Q3 FY25.

Finally, the intangible asset of intellectual property from decades of logistics domain expertise is embedded in the platform's functionality. This expertise is what allows The Descartes Systems Group Inc. to provide tools that help manage complexity related to tariffs and sanctions. The operational efficiency derived from this expertise is reflected in the margins; for Q3 FY26, the operating margin was strong, with Income from operations reaching $56.6 million, up 24% year-over-year.

Here's a quick look at the financial scale supporting these resources:

Metric	Value (As of Latest Report)	Date/Period
Cash on Hand	$278.8 million	October 31, 2025
Cash on Hand (Stated in Prompt)	$236.1 million	January 31, 2025
Total Revenues	$187.7 million	Q3 FY26
Services Revenues	$173.7 million	Q3 FY26
Income from Operations	$56.6 million	Q3 FY26
Customer Base	Over 26,000 clients	Late 2025

The company's focus on recurring services revenue, which was 93% of Q3 FY26 revenue, shows how effectively these resources are monetized. Finance: draft the Q4 FY26 cash flow projection by next Tuesday.

The Descartes Systems Group Inc. (DSGX) - Canvas Business Model: Value Propositions

You're looking at the core reasons why logistics-intensive businesses choose The Descartes Systems Group Inc. It's not just software; it's about tangible operational and financial improvements, which you can see reflected in their recent performance.

Real-time, multi-modal supply chain visibility and tracking

The value here is connecting disparate parts of the shipment lifecycle. The Descartes Global Logistics Network (GLN) is the engine, connecting more than 26,000 customers and 200,000 connected parties across over 160 countries. This network manages over 1 billion shipping routes annually and processes more than 24 billion messages each year to keep things moving. This scale directly translates into better tracking and proactive management for you.

The output from this visibility is substantial: for Q3 2025, The Descartes Systems Group Inc. reported Services revenue of $173.7 million, up 16% year-over-year, showing strong demand for these connected services.

The capabilities supporting this value include:

• Continuous gauging of material movement against milestones.
• Ability to compare planned events to actual events.
• Highly customizable data extraction for performance reports.

Automated regulatory compliance (tariffs, sanctions) to reduce risk

In the current trade climate, managing tariffs and sanctions is a major headache. The Descartes Systems Group Inc. addresses this directly. A recent study showed that 74% of surveyed supply chain leaders view technology as fundamental to growth amid rising global trade challenges like tariffs. Furthermore, 42% of forwarders and brokers cited tariffs as a top industry change impacting them in 2025. Their AI Assist for Trade Compliance specifically claims to reduce screening false positives by 60%. This focus on compliance underpins their financial strength; for Fiscal Year 2025, the company achieved a Net Income Margin of 22%.

The specific compliance tools offer:

Compliance Area	Data/Metric Highlight
Global Trade Intelligence	Cited as top required capability by 36% for greatest value in the next two years.
Export Classification	Supports classification against U.S., EU, UK, and other export control lists.
Denied Party Screening	Automates screening processes integrated with business systems.

Optimized routing and scheduling for lower operational costs

Lower operational costs are a direct result of better planning and execution. Customer demands reflect this need, with 61% citing lower prices as a key driver. The Descartes Systems Group Inc. was recognized in 2025 as the leading provider of cloud-based Transport Management Systems (TMS). This optimization capability contributes to their overall profitability; for Q3 2025, Adjusted EBITDA Margin hit 45.6%. For the full Fiscal Year 2025, Income from Operations grew 27% year-over-year to $181.1 million.

Routing and execution improvements focus on:

• Strategic and daily route planning to reduce miles and time.
• Real-time dispatch visibility to improve service and reduce costs.
• Flexible, real-time delivery appointment options.

Single platform access to a large, collaborative logistics community

You gain immediate access to a massive, established ecosystem. The GLN is described as the world's largest, collaborative multimodal logistics community. This network effect means you connect to trading partners seamlessly to exchange critical data. The company's total customer base stands at over 26,000 clients as of Q3 2025. This network underpins the recurring revenue model, which for FY2025, accounted for $590.2 million, or 91% of total revenues.

Scalable, modular solutions for all stages of e-commerce growth

The modular nature means you only pay for what you need as you scale. The recent acquisition of Finale, Inc., a cloud inventory management provider for e-commerce businesses, for approximately $39.2 million net of cash, shows a direct investment in supporting this growth stage. This strategy supports the overall growth trajectory; total revenues for Fiscal Year 2025 reached $651.0 million, a 14% increase over the prior year. The company continues to see growth from new and existing customers across solutions like routing and transportation management.

The modularity is evident in the revenue breakdown for FY2025:

Revenue Component	FY2025 Amount	Percentage of Total Revenue
Services Revenue	$590.2 million	91%
Professional Services and Other	$55.1 million	8%
License Revenue	$5.7 million	1%

Finance: draft 13-week cash view by Friday.

The Descartes Systems Group Inc. (DSGX) - Canvas Business Model: Customer Relationships

You're looking at how The Descartes Systems Group Inc. keeps its customers locked in and happy, which is key for a software-as-a-service (SaaS) player. It's all about deep integration and reliable service delivery.

High-touch, dedicated professional services for implementation

The Descartes Systems Group Inc. supplements its core technology with hands-on help. This professional services arm is designed to ensure clients get tangible results from the solutions. For Fiscal Year 2025 (FY25), professional services and other revenues accounted for $55.1 million of the total $651.0 million in revenue, making up 8% of the total top line for that year. More recently, in the third quarter of Fiscal Year 2026 (Q3FY26), this segment brought in $12.1 million, which was 6% of the total revenue for that quarter. This revenue stream supports the initial, often complex, integration into the Global Logistics Network.

Long-term, sticky subscription-based contracts (SaaS model)

The core of the relationship is built on recurring revenue, which is the hallmark of a sticky subscription model. The vast majority of The Descartes Systems Group Inc.'s revenue comes from these services, which are inherently subscription-based. This structure means customers are deeply embedded in the network over the long haul.

Here is the breakdown of revenue composition based on the latest full fiscal year and recent quarter data:

Revenue Component	FY2025 Amount (USD)	FY2025 % of Total	Q3 FY2026 Amount (USD)	Q3 FY2026 % of Total
Services Revenues (SaaS/Recurring)	$590.2 million	91%	$173.7 million	93%
Professional Services and Other	$55.1 million	8%	$12.1 million	6%
License Revenues	$5.7 million	1%	$1.9 million	1%

The Descartes Systems Group Inc. reported total revenues of $651.0 million for FY2025, with Services revenues making up $590.2 million. For Q3 FY2026, total revenue hit $187.7 million, with Services revenues at $173.7 million. That high percentage of recurring services revenue shows how sticky the customer relationships are.

Proactive customer support and account management

The Descartes Systems Group Inc. maintains dedicated support structures to keep operations running smoothly, which is critical when you are managing inter-enterprise supply chain data. They offer a Service Desk and Expertise Centers as a critical component for client success. You can reach them directly for support:

• North America Customer Support: +1 (877) 786 9339
• International Customer Support: +800 7866 3390
• General North America Contact: +1 (800) 419-8495

This level of accessibility supports the over 26,000 clients the company serves globally.

High customer retention rate, defintely a core focus

While an exact retention percentage isn't explicitly stated, the financial results strongly imply a high retention rate is a core focus, as growth is heavily reliant on existing customers. For instance, in FY2025, growth from new and existing customers contributed an incremental $4.9 million in revenue. The CEO noted that the uncertainty in global trade contributes to strong demand as customers rely on The Descartes Systems Group Inc.'s network for timely, accurate data. If onboarding takes 14+ days, churn risk rises. The company's focus on expanding its Global Logistics Network suggests that adding more solutions to existing customers is a primary driver of growth, which is a classic indicator of strong retention.

The Descartes Systems Group Inc. (DSGX) - Canvas Business Model: Channels

You're looking at how The Descartes Systems Group Inc. gets its software and network access into the hands of logistics-intensive businesses. The channels are a mix of direct engagement and leveraging the sheer scale of the Descartes Global Logistics Network (GLN).

Direct sales force focused on enterprise and mid-market accounts

The direct sales motion targets securing and expanding relationships with a substantial customer base. As of the third quarter of fiscal year 2026, The Descartes Systems Group Inc. supported over 26,000 clients. The company's revenue structure shows that services revenue, which is heavily influenced by direct sales and account management, made up 93% of the total Q3 FY2026 revenue of $187.7 million. This indicates a strong reliance on the direct channel for recurring subscription and service revenue streams.

The company's focus on enterprise and mid-market accounts is supported by the financial results, where services revenue grew 16% year-over-year in Q3 FY2026 to reach $173.7 million. The growth in services revenue in 2025 was driven by sales of global trade intelligence, routing, and transportation management solutions.

Descartes Global Logistics Network (GLN) platform access

Access to the Descartes Global Logistics Network (GLN) is the core delivery mechanism. The GLN is described as transaction-driven, where clients contract for monthly minimums over multiyear periods to send/receive data and documents. The network's expansion is key, as the CEO noted that performance ahead of plans in Q3 FY2026 was due to adding more solutions and content to the GLN. This network effect is quantified by the overall financial health it supports:

Metric	Q3 FY2026 Value	Year-over-Year Change (vs Q3 FY2025)
Total Revenue	$187.7 million	Up 11%
Income from Operations	$56.6 million	Up 24%
Adjusted EBITDA	$85.5 million	Up 19%

The reliance on the network for data and solutions is evident, especially as geopolitical factors drive incremental demand for timely and accurate data management.

Partner ecosystem of resellers and integrators

While direct numbers for the partner ecosystem are not explicitly detailed, the GLN's inherent adaptability allows "low tech" partners to connect with "high tech" capabilities and transient partners. This suggests the channel relies on connectivity and integration rather than just traditional reseller markups. The full fiscal year 2025 saw total revenues of $651.0 million, showing the broad reach achieved through all channels, including any indirect routes.

The company also made strategic channel-related investments, such as the acquisition of 3GTMS on March 24, 2025, for approximately $112.7 million, which contributed to services revenue growth in Q1 2026.

Digital and online marketing for lead generation

Digital and online marketing efforts support the overall sales engine, though specific spend or lead metrics aren't public. The success of the subscription-based services revenue stream, which was $173.7 million in Q3 FY2026, is a proxy for the effectiveness of all top-of-funnel activities, including digital outreach. Furthermore, the company's Global Shipping Report, released in September 2025, provides data on U.S. container imports, which reached 2,519,722 TEUs in August 2025. This content marketing effort is a clear channel activity designed to engage logistics professionals.

The company's strong financial footing, with cash from operations at $73.4 million in Q3 FY2026, provides the capital to fund these marketing and lead-generation activities. The Descartes Systems Group Inc. stock, trading at $82.89 as of December 3, 2025, with an average volume of 233K, reflects market perception of the effectiveness of its overall go-to-market strategy.

• Services revenues comprised 93% of total Q3 FY2026 revenue.
• FY2025 Services revenues were $590.2 million, representing 91% of total FY2025 revenue.
• The company ended Q3 FY2026 with an Adjusted EBITDA margin of 45.6%.

Finance: review Q4 FY2026 marketing spend allocation against Q1 FY2027 pipeline contribution by Friday.

The Descartes Systems Group Inc. (DSGX) - Canvas Business Model: Customer Segments

You're looking at the core user base for The Descartes Systems Group Inc., the entities that drive the company's transaction-based revenue model through its Global Logistics Network (GLN). As of late 2025, the company serves over 26,000 clients globally, a base that underpins the record Fiscal Year 2025 revenue of $651.0 million.

The business model is intentionally diversified across all parties in the supply chain, which helps The Descartes Systems Group Inc. weather specific sector downturns. For the third quarter of fiscal 2026 (Q3FY26, ending October 31, 2025), services revenue, which is the recurring engine of the business, hit $173.7 million, making up 93% of the total quarterly revenue of $187.7 million.

Logistics Service Providers (3PLs, freight forwarders, customs brokers)

This segment represents a critical mass of the customer base, relying heavily on The Descartes Systems Group Inc.'s network for compliance and execution. The need for robust management tools is clear in industry sentiment.

• View transportation management as a differentiator or competitive weapon: 81% of surveyed Logistics Service Providers (LSP) and shippers (Source 4).
• These LSPs are part of the total customer count exceeding 26,000 (Source 2).
• The focus on recurring revenue is evident, as services revenue for the nine months ending October 31, 2025, was $497.1 million (Source 14).

Freight Carriers (trucking, air, ocean) globally

Carriers use the GLN for visibility and to manage the lifecycle of shipments in complex market conditions, especially given ongoing tariff volatility (Source 14). The company serves all modes of transportation (Source 2).

The digital maturity gap is a key factor here; only 17% of surveyed entities report being fully automated in transportation technology adoption (Source 4).

Retailers and e-commerce companies needing delivery optimization

This segment is a major focus, as evidenced by strategic moves like the acquisition of Finale, Inc. on August 1, 2025, a provider of cloud-based inventory management for e-commerce businesses (Source 14). The demand for better delivery is driven by consumer expectations.

Metric	Finding/Data Point (Late 2025 Context)
Acquisition Cost (Finale, Inc.)	Approximately $39.2 million, net of cash acquired (Source 14).
Under 35 Consumer Delivery Problems	79% reported experiencing delivery problems (Source 3).
E-commerce Focus in FY2025 Revenue	Services revenue for FY2025 was $590.2 million, up from approximately $521 million the prior year (Source 2).

Manufacturers and distributors with complex supply chains

These entities, often categorized as shippers, rely on The Descartes Systems Group Inc. to manage complexities in global and domestic trade (Source 2, 14). Their need for accurate, real-time data is paramount for planning and execution.

The high adoption of new technology in this group suggests a drive for efficiency:

• Generative AI usage within operations: Overwhelmingly 96% of overall respondents indicated they are using it (Source 4).
• Top AI use cases include data entry (41%) and route/load optimization (39%) (Source 4).

Mobile business service providers

This area is supported by solutions like MacroPoint, which helps broker and shipper customers get location information on in-transit shipments, often leveraging vehicle telematics (Source 1).

The company's overall revenue mix shows a strong reliance on its core network services, which these mobile-enabled providers utilize:

• Services revenue as a percentage of total revenue in Q3FY26: 93% (Source 13).
• Services revenue as a percentage of total revenue in FY2025: 91% (Source 11).

Finance: review the Q4 FY2026 revenue projections against the Q3FY26 run-rate of $187.7 million by end of week.

The Descartes Systems Group Inc. (DSGX) - Canvas Business Model: Cost Structure

You're looking at the hard costs that drive The Descartes Systems Group Inc.'s operations for the fiscal year ended January 31, 2025. Honestly, for a cloud-based logistics software provider, the cost structure is heavily weighted toward maintaining and growing that network.

The High cost of services revenue is a major factor, reflecting the necessary expense to run the Global Logistics Network (GLN) and deliver those Software-as-a-Service (SaaS) offerings. This cost is primarily cloud hosting, network operations, and direct personnel supporting service delivery. For FY25, the Cost of Revenues, which is the closest GAAP measure before accounting for amortization, stood at $158,574 thousand.

A significant, non-cash cost that directly reflects the company's aggressive acquisition strategy is the Amortization of intangible assets. This expense is the systematic write-off of the value assigned to acquired customer relationships, technology, and trade names from deals like Sellercloud and OCR Services. For the year ended January 31, 2025, this charge was $69,399 thousand, confirming the $69.4 million figure you mentioned.

The company is clearly investing for the future, which shows up in Significant investment in R&D and product development. This spending is crucial to keeping pace with evolving trade regulations and technology. The reported Research and Development expense for FY25 was $95,497 thousand.

Finally, supporting the global footprint means substantial spending on reaching customers and running the business. While General and Administrative (G&A) isn't perfectly isolated in the snippets, the Sales, general, and administrative expenses for global footprint are represented by the Sales and marketing spend, which was $73,692 thousand in FY25. This covers the personnel and programs needed to sell and market solutions across North America and internationally.

Here's a quick look at these major cost drivers for the fiscal year ended January 31, 2025, all amounts in thousands of US dollars:

Cost Component	FY2025 Amount (USD in thousands)	Notes
Cost of Revenues (Excl. Amortization)	$158,574	Proxy for high cost of services revenue (cloud hosting, network ops)
Amortization of Intangible Assets	$69,399	Direct result of M&A activity
Research and Development Expenses	$95,497	Investment in product development
Sales and Marketing Expenses	$73,692	Represents a significant portion of global footprint operating costs

You can see the scale of the investment when you compare R&D to Sales and Marketing; they are both substantial cost centers.

• Services Revenues for FY25 were $590,200 thousand, making the Cost of Revenues 26.87% of that revenue stream (calculated as $158,574k / $590,200k).
• Total Revenues for FY25 reached $651,000 thousand.
• The company's Income from Operations for FY25 was $181,124 thousand.

If onboarding takes 14+ days, churn risk rises, but here, the cost structure shows they are willing to spend heavily on R&D to maintain product relevance.

Finance: draft 13-week cash view by Friday.

The Descartes Systems Group Inc. (DSGX) - Canvas Business Model: Revenue Streams

You're looking at the core ways The Descartes Systems Group Inc. converts its network and software value into cash as of late 2025. Honestly, it's overwhelmingly about recurring service revenue, which is what you want to see in a SaaS-centric model.

For the fiscal year ended January 31, 2025 (FY25), The Descartes Systems Group Inc. reported total revenues of $651.0 million. The trailing twelve-month revenue as of October 31, 2025, was reported at $704 million, showing continued momentum.

Here is the breakdown of the primary revenue sources for The Descartes Systems Group Inc. in FY25:

Revenue Stream Category	FY25 Amount (USD Millions)	Percentage of Total Revenue
Services Revenues (SaaS subscriptions)	$590.2 million	91%
Professional Services and Other Revenues	$55.1 million	8%
License Revenues	$5.7 million	1%

The Services Revenues line, making up 91% of the total, is the engine here. This category captures the value derived from access to and use of the Global Logistics Network (GLN) and the modular software applications. The growth in this segment for FY25 was significantly bolstered by a full period of contribution from acquisitions made in the prior year.

Within that dominant Services Revenues bucket, the actual monetization happens through several mechanisms:

• SaaS subscriptions for core platform access.
• Transactional fees based on GLN message volume-charging per message, data, or document sent/received on the network.
• Data analytics and trade intelligence subscriptions, which help customers manage compliance and trade complexity.
• Revenue from routing and transportation management solutions.

Professional Services and Other Revenues accounted for $55.1 million in FY25, representing 8% of total revenue. This stream typically includes implementation, consulting, and potentially hardware revenue associated with deploying solutions, though the core focus remains on the recurring software access. This figure was up from $46.7 million in FY24.

Finally, License Revenues were a small component at only $5.7 million, or 1% of total revenue for FY25. This minimal contribution confirms the company's strategic shift away from perpetual software licenses toward the subscription-based Software-as-a-Service (SaaS) model. That's a clear signal of their focus on predictable, recurring income streams.