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Sep 30, 2025
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Endava Q1 2026 Earnings Report
Endava reported a revenue decline and net loss in Q1 FY2026, citing unexpected client credits and delayed project conversions.
Key Takeaways
Endava posted a net loss in Q1 FY2026 with revenue falling year-over-year. Despite setbacks, the company secured a major strategic contract in the payments sector, showcasing its potential for future growth.
Revenue fell to £178.2 million from £195.1 million year-over-year.
Net loss for the quarter was £8.2 million with a reported EPS of -£0.15.
Adjusted diluted EPS stood at £0.15, down from £0.25 last year.
Endava secured a strategic $100M multi-year deal with a payments client.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Endava expects Q2 FY2026 revenue between £179M and £182M, with adjusted EPS between £0.15 and £0.17. FY2026 revenue is projected to range from £735M to £752M, with full-year adjusted EPS between £0.80 and £0.88.
Positive Outlook
- Strategic $100M payments partnership secured
- Adjusted free cash flow improved YoY
- Operational headcount efficiency improved
- Stable contribution from top 10 clients
- Maintained profitability on an adjusted basis
Challenges Ahead
- Revenue declined YoY by 8.6%
- Net loss of £8.2 million for the quarter
- EPS turned negative versus prior year
- Clients over £1M in revenue decreased to 133
- Revenue in UK and TMT verticals declined sharply
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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