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Sep 30
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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.
Endava
Endava
Endava Revenue by Segment
Endava Revenue by Geographic Location
Revenue by Segment
Payments Revenue
CapyFin.comBanking & Cap Mkts Revenue
CapyFin.comInsurance Revenue
CapyFin.comTMT Revenue
CapyFin.comMobility Revenue
CapyFin.comHealthcare Revenue
CapyFin.comOther Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comEurope Revenue
CapyFin.comUK Revenue
CapyFin.comRest of World Revenue
CapyFin.com 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