Press Release: Endava Announces First Quarter Fiscal Year 2026 Results

Dow Jones
Nov 11

Q1 FY2026

8.6% Year on Year Revenue Decline to GBP178.2 million

7.3% Revenue Decline at Constant Currency

Diluted EPS GBP(0.15) compared to GBP0.04 in the prior year comparative period

Adjusted Diluted EPS GBP0.15 compared to GBP0.25 in the prior year comparative period

LONDON--(BUSINESS WIRE)--November 11, 2025-- 

Endava plc $(DAVA)$ ("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 September 30, 2025 ("Q1 FY2026").

"The first quarter results were lower than guided primarily due to an unexpected credit made to a client that arose subsequent to our last earnings call as well as certain non large strategic pipeline opportunities that did not convert into revenue during the quarter as anticipated. While these factors weighed on our performance, our ability to secure a multi-year strategic relationship with a leading payments company of up to $100 million demonstrates the strength of our client relationships. This partnership will utilise the best of Endava's global delivery capability as well as our AI and advanced engineering capabilities to streamline our client's technology platforms and enhance existing capabilities. This represents a prime example of the type of deal and partnership we are targeting utilising our capability as an AI native, technology agnostic, transformation partner," said John Cotterell, Endava's CEO.

FIRST QUARTER FISCAL YEAR 2026 FINANCIAL HIGHLIGHTS:

   --  Revenue for Q1 FY2026 was GBP178.2 million, a decline of 8.6% compared 
      to GBP195.1 million in the same period in the prior year. 
 
   --  Revenue decline at constant currency (a non-IFRS measure)* was 7.3% for 
      Q1 FY2026. 
 
   --  Loss before tax for Q1 FY2026 was GBP(8.5) million, compared to profit 
      before tax of GBP4.2 million in the same period in the prior year. 
 
   --  Adjusted profit before tax (a non-IFRS measure)* for Q1 FY2026 was 
      GBP9.9 million, or 5.5% of revenue, compared to GBP19.2 million, or 9.9% 
      of revenue, in the same period in the prior year. 
 
   --  Loss for the period was GBP(8.2) million, resulting in diluted loss per 
      share of GBP(0.15), compared to profit for the period of GBP2.2 million 
      and diluted earnings per share ("EPS") of GBP0.04 in the same period in 
      the prior year. 
 
   --  Adjusted profit for the period (a non-IFRS measure)* was GBP7.9 million, 
      resulting in adjusted diluted EPS (a non-IFRS measure)* of GBP0.15, 
      compared to adjusted profit for the period of GBP15.1 million and 
      adjusted diluted EPS of GBP0.25 in the same period in the prior year. 

CASH FLOW:

   --  Net cash from operating activities was GBP12.3 million in Q1 FY2026, 
      compared to net cash from operating activities of GBP4.4 million in the 
      same period in the prior year. 
 
   --  Adjusted free cash flow (a non-IFRS measure)* was GBP9.2 million in Q1 
      FY2026, compared to GBP3.5 million in the same period in the prior year. 
 
 
   --  At September 30, 2025, Endava had cash and cash equivalents of GBP47.2 
      million, compared to GBP59.3 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 SEPTEMBER 30, 2025:

   --  Headcount totaled 11,636 at September 30, 2025, with an average of 
      10,332 operational employees in Q1 FY2026, compared to a headcount of 
      11,821 at September 30, 2024 and an average of 10,627 operational 
      employees in the same period in the prior year. 
 
   --  Number of clients with over GBP1 million in revenue on a rolling 
      twelve-month basis was 133 at September 30, 2025 compared to 147 clients 
      at September 30, 2024. 
 
   --  Top 10 clients accounted for 36% of revenue in Q1 FY2026, similar to 
      the same period in the prior year. 
 
   --  By geographic region, 42% of revenue was generated in North America, 
      24% was generated in Europe, 28% was generated in the United Kingdom and 
      6% was generated in the rest of the world in Q1 FY2026. This compares to 
      39% in North America, 25% in Europe, 31% in the United Kingdom and 5% in 
      the Rest of the World in the same period in the prior year. 
 
   --  By industry vertical, 17% of revenue was generated from Payments, 22% 
      from BCM, 9% from Insurance, 17% from TMT, 9% from Mobility, 12% from 
      Healthcare, and 14% from Other in Q1 FY2026. This compares to 20% from 
      Payments, 17% from BCM, 9% from Insurance, 21% from TMT, 9% from Mobility, 
      12% from Healthcare, and 12% from Other in the same period in the prior 
      year. 

OUTLOOK:

Second Quarter Fiscal Year 2026:

Endava expects revenue will be in the range of GBP179.0 million to GBP182.0 million, representing a constant currency revenue decline of between (8.0)% and (7.0)% on a year over year basis. Endava expects adjusted diluted EPS to be in the range of GBP0.15 to GBP0.17 per share.

Full Fiscal Year 2026:

Endava expects revenue will be in the range of GBP735.0 million to GBP752.0 million, representing a constant currency revenue change of between (4.5)% and (2.5)% on a year over year basis. Endava expects adjusted diluted EPS to be in the range of GBP0.80 to GBP0.88 per share.

This above guidance for the second quarter and full fiscal year 2026 assumes the exchange rates on October 31, 2025 (when the exchange rate was 1 British Pound to 1.32 US Dollar and 1.14 Euro).

Endava is not able, at this time, to reconcile its expectations for the second 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 October 31, 2025, the Company had repurchased an aggregate of 7,139,149 American Depositary Shares for $115.9 million under its share repurchase program. As of October 31, 2025, the Company had $34.1 million remaining for repurchase under its share repurchase authorisation.

CONFERENCE CALL DETAILS:

The Company will host a conference call at 8:00 am ET today, November 11, 2025, to review its Q1 FY2026 results. To participate in Endava's Q1 FY2026 earnings conference call, please dial in at least five minutes prior to the scheduled start time (844) 481-2736 or (412) 317-0665 for international participants, Conference ID: Endava Call.

Investors may listen to the call on Endava's Investor Relations website at http://investors.Endava.com. The webcast will be recorded and available for replay until Friday December 12, 2025.

ABOUT ENDAVA PLC:

Endava is a leading provider of next-generation technology services, dedicated to enabling its clients to accelerate growth, tackle complex challenges and thrive in evolving markets. By combining innovative technologies and deep industry expertise with an AI-native approach, Endava consults and partners with clients to create solutions that drive transformation, augment intelligence and deliver lasting impact. From ideation to production, it supports clients with tailor-made solutions at every stage of their digital transformation, regardless of industry, region or scale.

Endava's clients span payments, insurance, banking and capital markets, technology, media, telecommunications, healthcare, mobility, retail and consumer goods and more. As of September 30, 2025, 11,636 Endavans are helping clients break new ground across locations in Europe, the Americas, Asia Pacific and the Middle East.

NON-IFRS FINANCIAL INFORMATION:

To supplement Endava's Condensed Consolidated Statements of Comprehensive Income, Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Cash Flows presented in accordance with IFRS, the Company uses non-IFRS measures of certain components of financial performance in this press release. These measures include revenue (decline)/growth rate at constant currency, adjusted profit before tax, adjusted profit for the period, adjusted diluted EPS and adjusted free cash flow.

Revenue (decline)/growth rate at constant currency is calculated by translating revenue from entities reporting in foreign currencies into British Pounds using the comparable foreign currency exchange rates from the prior period. For example, the average currency rates in effect for the fiscal quarter ended September 30, 2024 were used to convert revenue for the fiscal quarter ended September 30, 2025 and the revenue for the comparable prior period.

Adjusted profit before tax ("Adjusted PBT") is defined as the Company's (loss)/profit before tax adjusted to exclude the impact of share-based compensation expense, amortisation of acquired intangible assets, realised and unrealised foreign currency exchange losses/(gains), net, restructuring costs, and fair value movement of contingent consideration, all of which are non-cash items except for realised foreign currency exchange losses/(gains), net and restructuring costs. Our Adjusted PBT margin is our Adjusted PBT as a percentage of our total revenue.

Adjusted profit for the period is defined as Adjusted PBT less the adjusted tax charge for the period. The adjusted tax charge is the tax charge adjusted for the tax impact of the adjustments to PBT.

Adjusted diluted EPS is defined as Adjusted profit for the period, divided by weighted average number of shares outstanding - diluted.

Adjusted free cash flow is the Company's net cash from operating activities, plus grants received, less net purchases of non-current assets (tangible and intangible). Adjusted free cash flow is not intended to be a measure of residual cash available for management's discretionary use since it omits significant sources and uses of cash flow, including mandatory debt repayments and changes in working capital.

Management believes these measures help illustrate underlying trends in the Company's business and uses the measures to establish budgets and operational goals, communicated internally and externally, for managing the Company's business and evaluating its performance. Management also believes the presentation of its non-IFRS financial measures enhances an investor's overall understanding of the Company's historical financial performance. The presentation of the Company's non-IFRS financial measures is not meant to be considered in isolation or as a substitute for the Company's financial results prepared in accordance with IFRS, and its non-IFRS measures may be different from non-IFRS measures used by other companies. Investors should review the reconciliation of the Company's non-IFRS financial measures to the comparable IFRS financial measures included below and not rely on any single financial measure to evaluate the Company's business.

FORWARD-LOOKING STATEMENTS:

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by the use of terms and phrases such as "believe," "expect," "intends," "outlook," "may," "will, " and other similar terms and phrases. Such forward-looking statements include, but are not limited to, statements regarding our pipeline of potential large opportunities, Endava's business strategies, plans, operations and growth opportunities and Endava's future financial performance, including management's financial outlook for the second quarter and full fiscal year 2026. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated by these forward-looking statements, including, but not limited to: Endava's ability to achieve its revenue growth goals including as a result of a slower conversion of its pipeline; Endava's expectations of future operating results or financial performance; Endava's ability to accurately forecast and achieve its announced guidance; Endava's ability to retain existing clients and attract new clients, including its ability to increase revenue from existing clients and diversify its revenue concentration; Endava's ability to attract and retain highly-skilled IT professionals at cost-effective rates; Endava's ability to successfully identify acquisition targets, consummate acquisitions and successfully integrate acquired businesses and personnel; Endava's ability to penetrate new industry verticals and geographies and grow its revenue in current industry verticals and geographies; Endava's ability to maintain favorable pricing and utilisation rates to support its gross margin; the effects of increased competition as well as innovations by new and existing competitors in its market; the size of Endava's addressable market and market trends; Endava's ability to adapt to technological change and industry trends and innovate solutions for its clients; Endava's plans for growth and future operations, including its ability to manage its growth; Endava's ability to effectively manage its international operations, including Endava's exposure to foreign currency exchange rate fluctuations; Endava's future financial performance; the impact of unstable market, economic, and global conditions, as well as other risks and uncertainties discussed in the "Risk Factors" section of Endava's Annual Report on Form 20-F for the year ended June 30, 2025 filed with the SEC on September 4, 2025 and in other filings that Endava makes from time to time with the SEC. In addition, the forward-looking statements included in this press release represent Endava's views and expectations as of the date hereof and are based on information currently available to Endava. Endava anticipates that subsequent events and developments may cause its views to change. Endava specifically disclaims any obligation to update the forward-looking statements in this press release except as required by law. These forward-looking statements should not be relied upon as representing Endava's views as of any date subsequent to the date hereof.

 
 
CONDENSED CONSOLIDATED STATEMENTS OF 
COMPREHENSIVE INCOME                       Three Months Ended September 30 
---------------------------------------  ----------------------------------- 
                                               2025              2024 
---------------------------------------  ----------------  ----------------- 
                                             GBP'000            GBP'000 
---------------------------------------  ----------------  ----------------- 
 REVENUE                                         178,187          195,052 
---------------------------------------  ---------------   -------------- 
 Cost of sales 
---------------------------------------  ----------------  ----------------- 
 Direct cost of sales                           (134,039)        (139,520) 
---------------------------------------  ---------------   -------------- 
 Allocated cost of sales                          (6,484)          (6,873) 
---------------------------------------  ---------------   -------------- 
 Total cost of sales                            (140,523)        (146,393) 
---------------------------------------  ---------------   -------------- 
 GROSS PROFIT                                     37,664           48,659 
---------------------------------------  ---------------   -------------- 
 Selling, general and administrative 
  expenses                                       (40,575)         (43,969) 
---------------------------------------  ---------------   -------------- 
 OPERATING (LOSS) / PROFIT                        (2,911)           4,690 
---------------------------------------  ---------------   -------------- 
 Net finance expense                              (5,561)            (477) 
---------------------------------------  ---------------   -------------- 
 (LOSS) / PROFIT FOR THE PERIOD BEFORE 
  TAX                                             (8,472)           4,213 
---------------------------------------  ---------------   -------------- 
 Tax on (loss) / profit on ordinary 
  activities                                         315           (1,966) 
---------------------------------------  ---------------   -------------- 
 (LOSS) / PROFIT FOR THE PERIOD                   (8,157)           2,247 
---------------------------------------  ---------------   -------------- 
 OTHER COMPREHENSIVE INCOME 
---------------------------------------  ----------------  ----------------- 
 Items that may be reclassified 
 subsequently to profit or loss: 
---------------------------------------  ----------------  ----------------- 
 Exchange differences on translating 
  foreign operations and net investment 
  hedge impact                                     6,593          (23,340) 
---------------------------------------  ---------------   -------------- 
 Total comprehensive expense for the 
  year attributable to the equity 
  holders of the Company                          (1,564)         (21,093) 
---------------------------------------  ---------------   -------------- 
 
 (LOSS) / EARNINGS PER SHARE: 
---------------------------------------  ----------------  ----------------- 
 Weighted average number of shares 
  outstanding - Basic                         53,037,125       59,051,116 
---------------------------------------  ---------------   -------------- 
 Weighted average number of shares 
  outstanding - Diluted                       53,193,752       59,430,225 
---------------------------------------  ---------------   -------------- 
 Basic (Loss) / EPS (GBP)                          (0.15)            0.04 
---------------------------------------  ---------------   -------------- 
 Diluted (Loss) / EPS (GBP)                        (0.15)            0.04 
---------------------------------------  ---------------   -------------- 
 
 
CONDENSED 
CONSOLIDATED                                             September 30, 2024 
BALANCE SHEETS      September 30, 2025   June 30, 2025          (1) 
-----------------  --------------------  -------------  -------------------- 
                         GBP'000            GBP'000           GBP'000 
-----------------  --------------------  -------------  -------------------- 
 ASSETS - 
 NON-CURRENT 
-----------------  --------------------  -------------  -------------------- 
 Goodwill                   479,436           473,296            486,083 
-----------------  ----------------      ------------   ---------------- 
 Intangible 
  assets                    103,795           100,890            118,593 
-----------------  ----------------      ------------   ---------------- 
 Property, plant 
  and equipment              15,087            14,177             18,197 
-----------------  ----------------      ------------   ---------------- 
 Lease 
  right-of-use 
  assets                     43,074            41,515             50,474 
-----------------  ----------------      ------------   ---------------- 
 Deferred tax 
  assets                     20,730            19,030             18,613 
-----------------  ----------------      ------------   ---------------- 
 Financial assets 
  and other 
  receivables                 6,636             5,009              9,455 
-----------------  ----------------      ------------   ---------------- 
 TOTAL                      668,758           653,917            701,415 
-----------------  ----------------      ------------   ---------------- 
 ASSETS - CURRENT 
-----------------  --------------------  -------------  -------------------- 
 Trade and other 
  receivables               213,189           209,523            198,201 
-----------------  ----------------      ------------   ---------------- 
 Corporation tax 
  receivable                  4,443            12,865              9,783 
-----------------  ----------------      ------------   ---------------- 
 Financial assets               127               121                181 
-----------------  ----------------      ------------   ---------------- 
 Cash and cash 
  equivalents                47,225            59,345             52,811 
-----------------  ----------------      ------------   ---------------- 
 TOTAL                      264,984           281,854            260,976 
-----------------  ----------------      ------------   ---------------- 
 TOTAL ASSETS               933,742           935,771            962,391 
-----------------  ----------------      ------------   ---------------- 
 LIABILITIES - 
 CURRENT 
-----------------  --------------------  -------------  -------------------- 
 Lease 
  liabilities                14,127            13,661             14,161 
-----------------  ----------------      ------------   ---------------- 
 Trade and other 
  payables                   97,032            96,827            104,512 
-----------------  ----------------      ------------   ---------------- 
 Corporation tax 
  payable                     7,817             7,757              5,693 
-----------------  ----------------      ------------   ---------------- 
 Contingent 
  consideration                 104               100              6,651 
-----------------  ----------------      ------------   ---------------- 
 Deferred 
  consideration               2,518             3,376              5,749 
-----------------  ----------------      ------------   ---------------- 
 TOTAL                      121,598           121,721            136,766 
-----------------  ----------------      ------------   ---------------- 
 LIABILITIES - 
 NON CURRENT 
-----------------  --------------------  -------------  -------------------- 
 Borrowings                 193,208           180,943            132,638 
-----------------  ----------------      ------------   ---------------- 
 Lease 
  liabilities                34,958            33,448             40,811 
-----------------  ----------------      ------------   ---------------- 
 Deferred tax 
  liabilities                13,962            15,183             24,365 
-----------------  ----------------      ------------   ---------------- 
 Tax liabilities 
  related to 
  Pilar II Income 
  tax                           584               584                 -- 
-----------------  ----------------      ------------   ---------------- 
 Contingent 
  consideration                  90               401                 -- 
-----------------  ----------------      ------------   ---------------- 
 Deferred 
  consideration                  --                --                943 
-----------------  ----------------      ------------   ---------------- 
 Other 
  liabilities                   557               552                424 
-----------------  ----------------      ------------   ---------------- 
 TOTAL                      243,359           231,111            199,181 
-----------------  ----------------      ------------   ---------------- 
 EQUITY 
-----------------  --------------------  -------------  -------------------- 
 Share capital                1,046             1,123              1,180 
-----------------  ----------------      ------------   ---------------- 
 Share premium               21,280            21,280             21,280 
-----------------  ----------------      ------------   ---------------- 
 Merger relief 
  reserve                    63,440            63,440             63,440 
-----------------  ----------------      ------------   ---------------- 
 Retained 
  earnings                  536,723           575,428            583,969 
-----------------  ----------------      ------------   ---------------- 
 Other reserves             (53,699)          (60,369)           (43,399) 
-----------------  ----------------      ------------   ---------------- 
 Treasury shares                 --           (17,958)                -- 
-----------------  ----------------      ------------   ---------------- 
 Investment in 
  own shares                     (5)               (5)               (26) 
-----------------  ----------------      ------------   ---------------- 
 TOTAL                      568,785           582,939            626,444 
-----------------  ----------------      ------------   ---------------- 
 TOTAL 
  LIABILITIES AND 
  EQUITY                    933,742           935,771            962,391 
-----------------  ----------------      ------------   ---------------- 
 
 
CONDENSED CONSOLIDATED STATEMENTS OF 
CASH FLOWS                                  Three Months Ended September 30 
---------------------------------------  ------------------------------------- 
                                                2025               2024 
---------------------------------------  ------------------  ----------------- 
                                              GBP'000             GBP'000 
---------------------------------------  ------------------  ----------------- 
 OPERATING ACTIVITIES 
---------------------------------------  ------------------  ----------------- 
 (Loss) / Profit for the period                  (8,157)              2,247 
---------------------------------------  --------------      -------------- 
 Income tax charge                                 (315)              1,966 
---------------------------------------  --------------      -------------- 
 Non-cash adjustments                            19,992              23,593 
---------------------------------------  --------------      -------------- 
 Tax received / (paid)                            5,681              (1,320) 
---------------------------------------  --------------      -------------- 
 Research & Development Credit received              97                  -- 
---------------------------------------  --------------      -------------- 
 Net changes in working capital                  (5,046)            (22,112) 
---------------------------------------  --------------      -------------- 
 Net cash from operating activities              12,252               4,374 
---------------------------------------  --------------      -------------- 
 
 INVESTING ACTIVITIES 
---------------------------------------  ------------------  ----------------- 
 Purchase of non-current assets 
  (tangibles and intangibles)                    (3,090)             (1,135) 
---------------------------------------  --------------      -------------- 
 Proceeds from disposal of non-current 
  assets                                             47                  36 
---------------------------------------  --------------      -------------- 
 Payment for acquisition of subsidiary, 
  net of cash acquired                           (3,487)                (68) 
---------------------------------------  --------------      -------------- 
 Interest received                                  694                 367 
---------------------------------------  --------------      -------------- 
 Net cash used in investing activities           (5,836)               (800) 
---------------------------------------  --------------      -------------- 
 
 FINANCING ACTIVITIES 
---------------------------------------  ------------------  ----------------- 
 Proceeds from borrowings                        10,000                  -- 
---------------------------------------  --------------      -------------- 
 Repayment of borrowings                             --              (7,000) 
---------------------------------------  --------------      -------------- 
 Proceeds from sublease                              23                  30 
---------------------------------------  --------------      -------------- 
 Repayment of lease liabilities                  (2,898)             (3,093) 
---------------------------------------  --------------      -------------- 
 Repayment of lease interest                       (417)               (507) 
---------------------------------------  --------------      -------------- 
 Grant received                                      --                 274 
---------------------------------------  --------------      -------------- 
 Interest and debt financing costs paid          (2,468)             (2,252) 
---------------------------------------  --------------      -------------- 
 Payment for repurchase of own shares           (22,917)                 -- 
---------------------------------------  --------------      -------------- 
 Net cash used in financing activities          (18,677)            (12,548) 
---------------------------------------  --------------      -------------- 
 Net change in cash and cash 
  equivalents                                   (12,261)             (8,974) 
---------------------------------------  --------------      -------------- 
 
 Cash and cash equivalents at the 
  beginning of the period                        59,345              62,358 
---------------------------------------  --------------      -------------- 
 Effects of exchange rate changes on 
  cash and cash equivalents                         141                (573) 
---------------------------------------  --------------      -------------- 
 Cash and cash equivalents at the end 
  of the period                                  47,225              52,811 
---------------------------------------  --------------      -------------- 
 

RECONCILIATION OF IFRS FINANCIAL MEASURES TO NON-IFRS FINANCIAL MEASURES

 
RECONCILIATION OF REVENUE (DECLINE) / GROWTH RATE AS REPORTED UNDER IFRS TO 
REVENUE (DECLINE) / GROWTH RATE AT CONSTANT CURRENCY: 
 
                                            Three Months Ended September 30 
                                         ------------------------------------- 
                                                  2025               2024 
---------------------------------------  ----------------------  ------------- 
 REVENUE (DECLINE) / GROWTH RATE AS 
  REPORTED UNDER IFRS                            (8.6%)              3.5% 
---------------------------------------  ------------    ------  ------- --- 
 Impact of Foreign exchange rate 
  fluctuations                                    1.3%               1.7% 
---------------------------------------  ------------   -------  ------- --- 
 REVENUE (DECLINE) / GROWTH RATE AT 
  CONSTANT CURRENCY                              (7.3%)              5.2% 
---------------------------------------  ------------    ------  ------- --- 
 
 
RECONCILIATION OF ADJUSTED PROFIT BEFORE TAX AND ADJUSTED PROFIT FOR THE 
PERIOD: 
 
                                            Three Months Ended September 30 
                                         ------------------------------------- 
                                                 2025               2024 
                                         --------------------  --------------- 
                                               GBP'000             GBP'000 
                                         --------------------  --------------- 
 
 (LOSS) / PROFIT BEFORE TAX                      (8,472)              4,213 
---------------------------------------  --------------   ---  ------------ 
 Adjustments: 
---------------------------------------  --------------------  --------------- 
 Share-based compensation expense                 7,680              11,021 
---------------------------------------  --------------  ----  ------------ 
 Amortisation of acquired intangible 
  assets                                          5,021               6,146 
---------------------------------------  --------------  ----  ------------ 
 Foreign currency exchange losses / 
  (gains), net                                    3,548                (846) 
---------------------------------------  --------------  ----  ------------ 
 Restructuring costs                              2,438                  -- 
---------------------------------------  --------------  ----  ------------ 
 Fair value movement of contingent 
  consideration                                    (363)             (1,302) 
---------------------------------------  --------------   ---  ------------ 
 Total adjustments                               18,324              15,019 
---------------------------------------  --------------  ----  ------------ 
 ADJUSTED PROFIT BEFORE TAX                       9,852              19,232 
---------------------------------------  --------------  ----  ------------ 
 
 (LOSS) / PROFIT FOR THE PERIOD                  (8,157)              2,247 
---------------------------------------  --------------   ---  ------------ 
 Adjustments: 
---------------------------------------  --------------------  --------------- 
 Adjustments to (loss) / profit before 
  tax                                            18,324              15,019 
---------------------------------------  --------------  ----  ------------ 
 Tax impact of adjustments                       (2,245)             (2,171) 
---------------------------------------  --------------   ---  ------------ 
 ADJUSTED PROFIT FOR THE PERIOD                   7,922              15,095 
---------------------------------------  --------------  ----  ------------ 
 
 
RECONCILIATION OF ADJUSTED DILUTED EARNINGS PER SHARE: 
 
                                            Three Months Ended September 30 
                                         ------------------------------------- 
                                              2025                2024 
                                         ---------------  ---  ----------- 
                                               GBP'000             GBP'000 
                                         --------------------  --------------- 
 
 DILUTED (LOSS) / EARNINGS PER SHARE 
  (GBP)                                            (0.15)             0.04 
---------------------------------------  ---------------       ----------- 
 Adjustments: 
---------------------------------------  --------------------  --------------- 
 Share-based compensation expense                   0.14              0.19 
---------------------------------------  ---------------  ---  ----------- 
 Amortisation of acquired intangible 
  assets                                            0.09              0.10 
---------------------------------------  ---------------  ---  ----------- 
 Foreign currency exchange losses / 
  (gains) net                                       0.07             (0.01) 
---------------------------------------  ---------------  ---  ----------- 
 Restructuring costs                                0.05                -- 
---------------------------------------  ---------------  ---  ----------- 
 Fair value movement of contingent 
  consideration                                    (0.01)            (0.03) 
---------------------------------------  ---------------       ----------- 
 Tax impact of adjustments                         (0.04)            (0.04) 
---------------------------------------  ---------------       ----------- 
 Total adjustments                                  0.30              0.21 
---------------------------------------  ---------------  ---  ----------- 
 ADJUSTED DILUTED EARNINGS PER SHARE 
  (GBP)                                             0.15              0.25 
---------------------------------------  ---------------  ---  ----------- 
 
 
RECONCILIATION OF NET CASH FROM OPERATING ACTIVITIES TO ADJUSTED FREE CASH 
FLOW 
 
                                            Three Months Ended September 30 
                                         ------------------------------------- 
                                                2025               2024 
                                         ------------------  ----------------- 
                                              GBP'000             GBP'000 
                                         ------------------  ----------------- 
 
 NET CASH FROM OPERATING ACTIVITIES              12,252              4,374 
---------------------------------------  --------------      ------------- 
 Adjustments: 
---------------------------------------  ------------------  ----------------- 
 Grant received                                      --                274 
---------------------------------------  --------------      ------------- 
 Net purchases of non-current assets 
  (tangibles and intangibles)                    (3,043)            (1,099) 
---------------------------------------  --------------      ------------- 
 ADJUSTED FREE CASH FLOW                          9,209              3,549 
---------------------------------------  --------------      ------------- 
 

SUPPLEMENTARY INFORMATION

 
SHARE-BASED COMPENSATION EXPENSE 
 
                                              Three Months Ended September 30 
                                             --------------------------------- 
                                                   2025             2024 
                                             ----------------  --------------- 
                                                 GBP'000           GBP'000 
                                             ----------------  --------------- 
 
 Direct cost of sales                                   4,864            7,794 
-------------------------------------------  ----------------  --------------- 
 Selling, general and administrative 
  expenses                                              2,816            3,227 
-------------------------------------------  ----------------  --------------- 
 Total                                                  7,680           11,021 
-------------------------------------------  ----------------  --------------- 
 
 
DEPRECIATION AND AMORTISATION 
 
                                              Three Months Ended September 30 
                                             --------------------------------- 
                                                   2025             2024 
                                             ----------------  --------------- 
                                                 GBP'000           GBP'000 
                                             ----------------  --------------- 
 
 Direct cost of sales                                   4,591            5,180 
-------------------------------------------  ----------------  --------------- 
 Selling, general and administrative 
  expenses                                              5,701            6,897 
-------------------------------------------  ----------------  --------------- 
 Total                                                 10,292           12,077 
-------------------------------------------  ----------------  --------------- 
 
 
EMPLOYEES, TOP 10 CUSTOMERS AND REVENUE SPLIT 
 
                                            Three Months Ended September 30 
                                         ------------------------------------- 
                                                2025               2024 
                                         ------------------  ----------------- 
 
 Closing number of total employees 
  (including directors)                        11,636              11,821 
---------------------------------------  ------------  ----  ------------  --- 
 Average operational employees                 10,332              10,627 
---------------------------------------  ------------  ----  ------------  --- 
 
 Top 10 customers %                                36%                 36% 
---------------------------------------  ------------   ---  ------------ 
 Number of clients with > GBP1m of 
  revenue (rolling 12 months)                     133                 147 
---------------------------------------  ------------  ----  ------------  --- 
 
 Geographic split of revenue % 
---------------------------------------  ------------------  ----------------- 
 North America                                     42%                 39% 
---------------------------------------  ------------   ---  ------------ 
 Europe                                            24%                 25% 
---------------------------------------  ------------   ---  ------------ 
 UK                                                28%                 31% 
---------------------------------------  ------------   ---  ------------ 
 Rest of World (RoW)                                6%                  5% 
---------------------------------------  ------------   ---  ------------ 
 
 Industry vertical split of revenue % 
---------------------------------------  ------------------  ----------------- 
 Payments                                          17%                 20% 
---------------------------------------  ------------   ---  ------------ 
 Banking and Capital Markets                       22%                 17% 
---------------------------------------  ------------   ---  ------------ 
 Insurance                                          9%                  9% 
---------------------------------------  ------------   ---  ------------ 
 TMT                                               17%                 21% 
---------------------------------------  ------------   ---  ------------ 
 Mobility                                           9%                  9% 
---------------------------------------  ------------   ---  ------------ 
 Healthcare                                        12%                 12% 
---------------------------------------  ------------   ---  ------------ 
 Other                                             14%                 12% 
---------------------------------------  ------------   ---  ------------ 
 

FOOTNOTES

(1) Restated to include the effect of revisions arising from provisional to final acquisition accounting for GalaxE.

View source version on businesswire.com: https://www.businesswire.com/news/home/20251110035680/en/

 
    CONTACT:    INVESTOR CONTACT: 

Endava plc

Laurence Madsen, Head of Investor Relations

Investors@endava.com

 
 

(END) Dow Jones Newswires

November 11, 2025 07:21 ET (12:21 GMT)

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