About Endava PLC
Endava PLC (NYSE: DAVA) is a UK-based global technology services company that specializes in digital transformation, agile software development, and IT consulting services. Founded in 2000 and headquartered in London, United Kingdom, the company helps enterprises design, build, and modernize digital platforms and software systems.
Endava works with clients across industries to create technology-driven solutions, from strategy and design to development and long-term support. Its key offerings include digital transformation consulting, agile software development and engineering, cloud, data & AI solutions, automation and DevOps services, and modern managed IT services
The company serves sectors such as finance, insurance, healthcare, retail, telecommunications, media, travel, and energy.
Management Commentary
John Cotterell, CEO of Endava PLC, said that over the previous several quarters the company had been investing heavily in its pivot toward artificial intelligence to position Endava as an AI leader. He explained that these investments had included recruiting and training NextGen talent, shifting toward becoming AI-native, strengthening the partner ecosystem, and evolving the company’s engagement strategy.
He highlighted that revenue in Q2 FY26 had risen to £184.1 million, representing sequential growth of 3.3% compared with £178.2 million in Q1 FY26. He added that the company had seen strong initial client interest in Dava.Flow, its AI-native engagement lifecycle platform, and that Endava had continued to expand its strategic partner network while broadening several existing relationships to extend its reach.
He further noted that a PayNet-NETS joint venture, recently appointed as Nexus Technical Operator by Nexus Global Payments, had selected Endava to design and build its cloud-native cross-border payment switch on AWS, underscoring the company’s strength in the payments vertical. He concluded that the company believed it was building the operational agility required to achieve sustainable, long-term growth.
Revenue Performance
Revenue for Q2 FY2026 was £184.1 million, representing a 5.9% decline compared to £195.6 million in the same period last year. On a constant currency basis (non-IFRS), revenue declined by 5.1% year over year.
Profitability
Loss before tax for the quarter was £7.2 million, compared to a profit before tax of £2.5 million in the prior-year period. Adjusted profit before tax (non-IFRS) was £10.7 million, equivalent to 5.8% of revenue, down from £21.8 million or 11.2% of revenue a year earlier.
The company reported a loss for the period of £6.9 million, resulting in diluted loss per share of £0.13, compared to a profit of £6.9 million and diluted EPS of £0.11 in Q2 FY2025. Adjusted profit for the period (non-IFRS) was £8.6 million, with adjusted diluted EPS of £0.16, compared to adjusted profit of £17.9 million and adjusted diluted EPS of £0.30 in the prior-year quarter.
Cash Flow
Net cash generated from operating activities totaled £28.2 million in Q2 FY2026, compared to £32.0 million in the same period last year. Adjusted free cash flow (non-IFRS) was £20.1 million, down from £31.6 million in the prior-year quarter.
As of December 31, 2025, cash and cash equivalents stood at £68.5 million, compared to £59.3 million as of June 30, 2025.
Headcount
Total headcount was 11,385 as of December 31, 2025, compared to 11,668 a year earlier. The average number of operational employees during Q2 FY2026 was 10,326, compared to 10,456 in the prior-year quarter.
Client Metrics
The number of clients generating more than £1 million in revenue on a rolling twelve-month basis was 135, compared to 141 clients in the prior year. The top 10 clients contributed 35% of total revenue, slightly down from 36% in the same period last year.
Revenue by Geography
In Q2 FY2026, 40% of revenue was generated in North America, 23% in Europe, 31% in the United Kingdom, and 6% in the Rest of the World. This compares with 39% from North America, 24% from Europe, 32% from the United Kingdom, and 5% from the Rest of the World in Q2 FY2025.
Revenue by Industry Vertical
Revenue contributions by vertical were as follows: Payments (19%), Banking, Capital Markets and related services (22%), Insurance (9%), Technology, Media and Telecommunications (16%), Mobility (9%), Healthcare (12%), and Other industries (13%). In the prior-year quarter, Payments accounted for 19%, BCM for 19%, Insurance for 9%, TMT for 19%, Mobility for 9%, Healthcare for 12%, and Other for 13%.
Outlook – 3Q 2026
The company expects revenue to be between £182.0 million and £185.0 million, reflecting a constant currency revenue decline of 4.0% to 2.5% year over year. Adjusted diluted EPS is projected to be in the range of £0.18 to £0.21 per share.
Outlook – Full Fiscal Year 2026
Revenue is expected to range between £736.0 million and £750.0 million, representing a constant currency decline of 3.5% to 1.5% year over year. Adjusted diluted EPS is forecasted between £0.80 and £0.86 per share.
This guidance assumes exchange rates as of January 31, 2026, of 1 British Pound to 1.37 U.S. Dollars and 1.15 Euros. The company noted that it is unable to reconcile constant currency revenue growth or adjusted diluted EPS guidance to IFRS measures without unreasonable effort due to uncertainty around items such as share-based compensation, amortization of acquired intangibles, foreign exchange movements, and fair value adjustments on contingent consideration. The guidance is forward-looking and subject to risks and uncertainties.
Share Repurchase Program
As of January 31, 2026, the company had repurchased 8,047,338 American Depositary Shares for a total of $121.9 million under its share repurchase program. A further $28.1 million remained available under the Board’s authorized repurchase plan.