Feb 19, 2026 (MarketLine via COMTEX) --
Endava plc announced results for the three months ended December 31, 2025, reporting Q2 FY2026 financial outcomes.
Endava plc (NYSE: DAVA) ("Endava" or the "Company"), the technology-driven business transformation group whose AI-native approach combines cutting edge technology with deep industry expertise, today announced results for the three months ended December 31, 2025 ("Q2 FY2026").
"Over the past several quarters we have been investing heavily in our pivot towards AI to establish Endava as an AI leader. These investments have encompassed recruitment and training of NextGen Talent, introducing a shift towards becoming AI Native, building our Partner ecosystem and evolving our engagement strategy. I would like to flag some highlights of the quarter:
Revenue in Q2FY26 rose to £184.1 million, representing sequential growth of 3.3% compared to £178.2 in Q1FY26.
We are seeing strong initial interest with clients on Dava.Flow, our AI-native engagement lifecycle
We continued to expand our network of strategic partners and broadened several existing relationships, further extending our reach.
A PayNet-NETS joint venture, recently appointed as Nexus Technical Operator by Nexus Global Payments, has selected Endava to design and build its cloud-native cross-border payment switch on AWS, underscoring our depth in the Payment vertical.
We believe we are building the operational agility required to achieve sustainable, long-term growth," said John Cotterell, Endava's CEO.
SECOND QUARTER FISCAL YEAR 2026 FINANCIAL HIGHLIGHTS:
Revenue for Q2 FY2026 was £184.1 million, a decline of 5.9% compared to £195.6 million in the same period in the prior year.
Revenue decline at constant currency (a non-IFRS measure)* was 5.1% for Q2 FY2026.
Loss before tax for Q2 FY2026 was £(7.2) million, compared to profit before tax of £2.5 million in the same period in the prior year.
Adjusted profit before tax (a non-IFRS measure)* for Q2 FY2026 was £10.7 million, or 5.8% of revenue, compared to £21.8 million, or 11.2% of revenue, in the same period in the prior year.
Loss for the period was £(6.9) million, resulting in diluted loss per share of £(0.13), compared to profit for the period of £6.9 million and diluted earnings per share ("EPS") of £0.11 in the same period in the prior year.
Adjusted profit for the period (a non-IFRS measure)* was £8.6 million, resulting in adjusted diluted EPS (a non-IFRS measure)* of £0.16, compared to adjusted profit for the period of £17.9 million and adjusted diluted EPS of £0.30 in the same period in the prior year.
CASH FLOW:
Net cash from operating activities was £28.2 million in Q2 FY2026, compared to net cash from operating activities of £32.0 million in the same period in the prior year.
Adjusted free cash flow (a non-IFRS measure)* was £20.1 million in Q2 FY2026, compared to £31.6 million in the same period in the prior year.
At December 31, 2025, Endava had cash and cash equivalents of £68.5 million, compared to £59.3 million at June 30, 2025.
* Definitions of the non-IFRS measures used by the Company and a reconciliation of such measures to the related IFRS financial measure can be found under the sections below titled "Non-IFRS Financial Information" and "Reconciliation of IFRS Financial Measures to Non-IFRS Financial Measures."
OTHER METRICS FOR THE QUARTER ENDED DECEMBER 31, 2025:
Headcount totaled 11,385 at December 31, 2025, with an average of 10,326 operational employees in Q2 FY2026, compared to a headcount of 11,668 at December 31, 2024 and an average of 10,456 operational employees in the same period in the prior year.
Number of clients with over £1 million in revenue on a rolling twelve-month basis was 135 at December 31, 2025 compared to 141 clients at December 31, 2024.
Top 10 clients accounted for 35% of revenue in Q2 FY2026, compared to 36% in the same period in the prior year.
By geographic region, 40% of revenue was generated in North America, 23% was generated in Europe, 31% was generated in the United Kingdom and 6% was generated in the rest of the world in Q2 FY2026. This compares to 39% in North America, 24% in Europe, 32% in the United Kingdom and 5% in the Rest of the World in the same period in the prior year.
By industry vertical, 19% of revenue was generated from Payments, 22% from BCM, 9% from Insurance, 16% from TMT, 9% from Mobility, 12% from Healthcare, and 13% from Other in Q2 FY2026. This compares to 19% from Payments, 19% from BCM, 9% from Insurance, 19% from TMT, 9% from Mobility, 12% from Healthcare, and 13% from Other in the same period in the prior year.
OUTLOOK:
Third Quarter Fiscal Year 2026:
Endava expects revenue will be in the range of £182.0 million to £185.0 million, representing a constant currency revenue decline of between (4.0)% and (2.5)% on a year over year basis. Endava expects adjusted diluted EPS to be in the range of £0.18 to £0.21 per share.
Full Fiscal Year 2026:
Endava expects revenue will be in the range of £736.0 million to £750.0 million, representing a constant currency revenue decline of between (3.5)% and (1.5)% on a year over year basis. Endava expects adjusted diluted EPS to be in the range of £0.80 to £0.86 per share.
This above guidance for the third quarter and full fiscal year 2026 assumes the exchange rates on January 31, 2026 (when the exchange rate was 1 British Pound to 1.37 US Dollar and 1.15 Euro).
Endava is not able, at this time, to reconcile its expectations for the third quarter and full fiscal year 2026 for a rate of revenue growth or decline at constant currency or adjusted diluted EPS to their respective most directly comparable IFRS measures as a result of the uncertainty regarding, and the potential variability of, reconciling items such as share-based compensation expense, amortisation of acquired intangible assets, foreign currency exchange losses / (gains), net, and fair value movement of contingent consideration, as applicable. Accordingly, a reconciliation is not available without unreasonable effort, although it is important to note that these factors could be material to Endava's results computed in accordance with IFRS.
The guidance provided above is forward-looking in nature. Actual results may differ materially. See "Forward-Looking Statements" below.
SHARE REPURCHASE PROGRAM:
As of January 31, 2026, the Company had repurchased an aggregate of 8,047,338 American Depositary Shares for $121.9 million under its share repurchase program. As of January 31, 2026, the Company had $28.1 million remaining for repurchase under our Board's share repurchase authorisation.
CONFERENCE CALL DETAILS:
The Company will host a conference call at 8:00 am ET today, February 19, 2026, to review its Q2 FY2026 results.
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COMTEX_476300308/2227/2026-03-31T09:18:24
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