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Descartes Posts Record Quarter on 12% Revenue Growth, Eyes Larger Acquisitions

Descartes Systems Group reported record quarterly results, with consolidated revenue of $201 million for the fiscal period ended July 31, marking 12% year-over-year growth. Services revenue climbed 13% annually to $189 million, with organic expansion of approximately 9% excluding currency effects. Earnings per share reached 57 cents, up 14 cents from the prior year. Adjusted EBITDA grew 18% year-over-year to $94.4 million, reflecting a 46% margin. Operating cash flow surged 28% to $81 million. The company ended the quarter with $401 million in cash and no debt, positioning itself for continued expansion. Management signaled willingness to employ leverage up to 3 times annual EBITDA for larger strategic deals. Descartes has committed $220 million toward acquisitions including Extensiv and Tai since quarter close.