Q2 FY2026

5.9% Year on Year Revenue Decline to GBP184.1 million

5.1% Revenue Decline at Constant Currency

Diluted EPS GBP(0.13) compared to GBP0.11 in the prior year comparative period

Adjusted Diluted EPS GBP0.16 compared to GBP0.30 in the prior year comparative period

LONDON--(BUSINESS WIRE)--February 19, 2026-- 

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 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 GBP184.1 million, representing sequential 
      growth of 3.3% compared to GBP178.2 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 GBP184.1 million, a decline of 5.9% compared 
      to GBP195.6 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 GBP(7.2) million, compared to profit 
      before tax of GBP2.5 million in the same period in the prior year. 
 
   --  Adjusted profit before tax (a non-IFRS measure)* for Q2 FY2026 was 
      GBP10.7 million, or 5.8% of revenue, compared to GBP21.8 million, or 
      11.2% of revenue, in the same period in the prior year. 
 
   --  Loss for the period was GBP(6.9) million, resulting in diluted loss per 
      share of GBP(0.13), compared to profit for the period of GBP6.9 million 
      and diluted earnings per share ("EPS") of GBP0.11 in the same period in 
      the prior year. 
 
   --  Adjusted profit for the period (a non-IFRS measure)* was GBP8.6 million, 
      resulting in adjusted diluted EPS (a non-IFRS measure)* of GBP0.16, 
      compared to adjusted profit for the period of GBP17.9 million and 
      adjusted diluted EPS of GBP0.30 in the same period in the prior year. 

CASH FLOW:

   --  Net cash from operating activities was GBP28.2 million in Q2 FY2026, 
      compared to net cash from operating activities of GBP32.0 million in the 
      same period in the prior year. 
 
   --  Adjusted free cash flow (a non-IFRS measure)* was GBP20.1 million in Q2 
      FY2026, compared to GBP31.6 million in the same period in the prior 
      year. 
 
   --  At December 31, 2025, Endava had cash and cash equivalents of GBP68.5 
      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 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 GBP1 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 GBP182.0 million to GBP185.0 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 GBP0.18 to GBP0.21 per share.

Full Fiscal Year 2026:

Endava expects revenue will be in the range of GBP736.0 million to GBP750.0 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 GBP0.80 to GBP0.86 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. To participate in Endava's Q2 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 Wednesday March 18, 2026.

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 December 31, 2025, 11,385 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 December 31, 2024 were used to convert revenue for the fiscal quarter ended December 31, 2025 and the revenue for the comparable prior period.

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February 19, 2026 07:15 ET (12:15 GMT)