Q3 FY2026
8.4% Year on Year Revenue Decline to GBP178.5 million
6.4% Revenue Decline at Constant Currency
Diluted EPS GBP(7.55) compared to GBP0.18 in the prior year comparative period
Adjusted Diluted EPS GBP0.05 compared to GBP0.34 in the prior year comparative period
LONDON--(BUSINESS WIRE)--May 21, 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 March 31, 2026 ("Q3 FY2026").
"This has been one of the more challenging periods Endava has faced in recent years. Demand remains uneven across sectors, deal cycles continue to be extended, and clients are scrutinizing technology spending more carefully than at any point since the macro slowdown began. Against this backdrop, revenue came in below expectations, margin contracted, and we recognized a non-cash goodwill impairment.
We are disappointed by these outcomes, but it is important to distinguish near-term execution challenges from our long-term strategic positioning. During the quarter, we accelerated our transition toward AI-native delivery and deepened our presence in payments transformation work. We also engaged more directly with senior client decision-makers on enterprise-scale AI initiatives.
We recently announced a collaboration with Mastercard combining our AI-native engineering and industry expertise with Mastercard's global reach and data-driven products and services. Additionally, we were selected as a strategic partner by Tyl by NatWest, NatWest Group's merchant-payments arm, to modernize and expand its payments-acceptance platform.
These initiatives, and others like them, have moved our AI driven business up from 5% of total revenue a year ago in Q3FY25, to 15% of total revenue in Q3FY26, showing the underlying momentum of our pivot.
By keeping our teams focused on these priorities and serving as trusted partners to decision-makers who are redefining their technology roadmaps, we believe we are positioning Endava to convert today's headwinds into tomorrow's momentum," said John Cotterell, Endava's CEO.
THIRD QUARTER FISCAL YEAR 2026 FINANCIAL METRICS:
-- Revenue for Q3 FY2026 was GBP178.5 million, a decline of 8.4% compared
to GBP194.8 million in the same period in the prior year.
-- Revenue decline at constant currency (a non-IFRS measure)* was 6.4% for
Q3 FY2026.
-- Loss before tax for Q3 FY2026 was GBP(372.0) million, compared to
profit before tax of GBP13.6 million in the same period in the prior
year.
-- Adjusted profit before tax (a non-IFRS measure)* for Q3 FY2026 was
GBP3.2 million, or 1.8% of revenue, compared to GBP24.6 million, or 12.6%
of revenue, in the same period in the prior year.
-- Loss for the period was GBP(394.4) million, resulting in diluted loss
per share of GBP(7.55), compared to profit for the period of GBP10.9
million and diluted earnings per share ("EPS") of GBP0.18 in the same
period in the prior year.
-- Adjusted profit for the period (a non-IFRS measure)* was GBP2.6 million,
resulting in adjusted diluted EPS (a non-IFRS measure)* of GBP0.05,
compared to adjusted profit for the period of GBP20.1 million and
adjusted diluted EPS of GBP0.34 in the same period in the prior year.
-- During the quarter, an impairment of GBP364.6 million was recognised
against goodwill, which is included as an exceptional item in the
condensed consolidated statements of comprehensive income. This goodwill
impairment has arisen due to the performance of the Company in the year
to date, as well as management's reforecast of the Company's future
performance through to FY31 and into perpetuity, by comparing the
Company's recoverable amount derived from future forecasts to the
Company's enterprise value. No goodwill impairment was recognised in the
same period in the prior year.
-- During the quarter the Group incurred a tax charge of GBP23.2m relating
to the derecognition of the entire UK deferred tax asset. The amount is
included as an exceptional item in the condensed consolidated statements
of comprehensive income. The derecognition follows a reassessment of the
recoverability of the deferred tax asset based on updated expectations
for future UK taxable profits. The reassessment is consistent with the
reforecast of the company's future performance considered in the
assessment of the recoverable value of goodwill.
CASH FLOW:
-- Net cash used in operating activities was GBP(0.4) million in Q3
FY2026, compared to net cash from operating activities of GBP18.7 million
in the same period in the prior year.
-- Adjusted free cash flow (a non-IFRS measure)* was GBP(3.1) million in
Q3 FY2026, compared to GBP17.5 million in the same period in the prior
year.
-- At March 31, 2026, Endava had cash and cash equivalents of GBP48.4
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 MARCH 31, 2026:
-- Headcount totaled 11,225 at March 31, 2026, with an average of 10,166
operational employees in Q3 FY2026, compared to a headcount of 11,365 at
March 31, 2025 and an average of 10,272 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 129 at March 31, 2026 compared to 136 clients at
March 31, 2025.
-- Top 10 clients accounted for 40% of revenue in Q3 FY2026, compared to
39% in the same period in the prior year.
-- By geographic region, 38% of revenue was generated in North America,
23% was generated in Europe, 33% was generated in the United Kingdom and
6% was generated in the rest of the world in Q3 FY2026. This compares to
37% in North America, 22% in Europe, 35% in the United Kingdom and 6% in
the Rest of the World in the same period in the prior year.
-- By industry vertical, 23% of revenue was generated from Payments, 22%
from BCM, 9% from Insurance, 16% from TMT, 8% from Mobility, 11% from
Healthcare, and 11% from Other in Q3 FY2026. This compares to 19% from
Payments, 21% from BCM, 9% from Insurance, 18% from TMT, 8% from Mobility,
12% from Healthcare, and 13% from Other in the same period in the prior
year.
OUTLOOK:
Fourth Quarter Fiscal Year 2026:
Endava expects revenue will be in the range of GBP181.0 million to GBP185.0 million, representing a constant currency revenue decline of between (3.5)% and (1.0)% on a year-over-year basis. Endava expects adjusted diluted EPS to be in the range of GBP0.09 to GBP0.13 per share.
Full Fiscal Year 2026:
Endava expects revenue will be in the range of GBP721.8 million to GBP725.8 million, representing a constant currency revenue decline of between (6.0)% and (5.0)% on a year-over-year basis. Endava expects adjusted diluted EPS to be in the range of GBP0.45 to GBP0.49 per share.
This above guidance for the fourth quarter and full fiscal year 2026 assumes the exchange rates on April 30, 2026 (when the exchange rate was 1 British Pound to 1.35 US Dollar and 1.16 Euro).
Endava is not able, at this time, to reconcile its expectations for the fourth 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 and foreign currency exchange losses / (gains), net, 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 March 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 March 31, 2026, the Company had $28.1 million remaining for repurchase under our Board's share repurchase authorization.
CONFERENCE CALL DETAILS:
The Company will host a conference call at 8:00 am ET today, May 21, 2026, to review its Q3 FY2026 results. To participate in Endava's Q3 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 Thursday, June 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 March 31, 2026, 11,225 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 March 31, 2025 were used to convert revenue for the fiscal quarter ended March 31, 2026 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, goodwill impairment charge, restructuring costs, exceptional people charges, and fair value movement of contingent consideration, all of which are non-cash items except for realised foreign currency exchange losses/(gains), net, restructuring costs and exceptional people charges. 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, the release of the deferred tax liability relating to Romanian withholding tax and the reduction of the UK deferred tax asset in full.
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 / (used in) 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 long-term strategic positioning, Endava's business strategies, plans, operations and growth opportunities, and Endava's future financial performance, including management's financial outlook for the fourth 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 Three Months Ended March
INCOME Nine Months Ended March 31 31
---------------------------- --------------------------
2026 2025 2026 2025
-------------- ------------ ----------- -------------
GBP'000 GBP'000 GBP'000 GBP'000
-------------- ------------ ----------- -------------
REVENUE 540,823 585,479 178,538 194,838
---------------- ---------- ----------- ---------- ----------
Cost of sales
---------------- -------------- ------------ ----------- -------------
Direct cost of
sales (413,131) (417,317) (139,292) (134,251)
---------------- ---------- ----------- ---------- ----------
Allocated cost
of sales (19,218) (20,896) (6,038) (6,998)
---------------- ---------- ----------- ---------- ----------
Total cost of
sales (432,349) (438,213) (145,330) (141,249)
---------------- ---------- ----------- ---------- ----------
GROSS PROFIT 108,474 147,266 33,208 53,589
---------------- ---------- ----------- ---------- ----------
Selling,
general and
administrative
expenses (120,349) (124,449) (39,218) (37,135)
---------------- ---------- ----------- ---------- ----------
Goodwill
impairment
charge (364,624) -- (364,624) --
---------------- ---------- ----------- ---------- ----------
OPERATING
(LOSS) /
PROFIT (376,499) 22,817 (370,634) 16,454
---------------- ---------- ----------- ---------- ----------
Net finance
expense (11,151) (2,503) (1,318) (2,857)
---------------- ---------- ----------- ---------- ----------
(LOSS) / PROFIT
FOR THE PERIOD
BEFORE TAX (387,650) 20,314 (371,952) 13,597
---------------- ---------- ----------- ---------- ----------
Tax on profit /
(loss) on
ordinary
activities (21,855) (270) (22,490) (2,651)
---------------- ---------- ----------- ---------- ----------
(LOSS) / PROFIT
FOR THE
PERIOD (409,505) 20,044 (394,442) 10,946
---------------- ---------- ----------- ---------- ----------
OTHER
COMPREHENSIVE
INCOME
---------------- -------------- ------------ ----------- -------------
Items that may
be reclassified
subsequently to
profit or
loss:
---------------- -------------- ------------ ----------- -------------
Exchange
differences on
translating
foreign
operations and
net investment
hedge impact 4,945 (21,554) (929) (7,741)
---------------- ---------- ----------- ---------- ----------
Total
comprehensive
(expense) /
income for the
year
attributable
to the equity
holders of the
Company (404,560) (1,510) (395,371) 3,205
(LOSS) /
EARNINGS PER
SHARE:
---------------- -------------- ------------ ----------- -------------
Weighted
average number
of shares
outstanding -
Basic 52,716,456 59,234,601 52,234,286 59,164,297
---------------- ---------- ----------- ---------- ----------
Weighted
average number
of shares
outstanding -
Diluted 52,716,456 59,566,531 52,234,286 59,434,080
---------------- ---------- ----------- ---------- ----------
Basic (Loss) /
EPS (GBP) (7.77) 0.34 (7.55) 0.19
---------------- ---------- ----------- ---------- ----------
Diluted (Loss)
/ EPS (GBP) (7.77) 0.34 (7.55) 0.18
---------------- ---------- ----------- ---------- ----------
CONDENSED
CONSOLIDATED BALANCE
SHEETS March 31, 2026 June 30, 2025 March 31, 2025 (1)
---------------- ------------- --------------------
GBP'000 GBP'000 GBP'000
---------------- ------------- --------------------
ASSETS - NON-CURRENT
--------------------- ---------------- ------------- --------------------
Goodwill 113,007 473,296 490,955
--------------------- ------------ ------------ ----------------
Intangible assets 102,794 100,890 110,471
--------------------- ------------ ------------ ----------------
Property, plant and
equipment 14,998 14,177 15,036
--------------------- ------------ ------------ ----------------
Lease right-of-use
assets 37,013 41,515 44,240
--------------------- ------------ ------------ ----------------
Deferred tax assets 7,342 19,030 20,792
--------------------- ------------ ------------ ----------------
Financial assets and
other receivables 3,258 5,009 9,141
--------------------- ------------ ------------ ----------------
TOTAL 278,412 653,917 690,635
ASSETS - CURRENT
--------------------- ---------------- ------------- --------------------
Trade and other
receivables 210,822 209,523 193,131
--------------------- ------------ ------------ ----------------
Corporation tax
receivable 1,029 12,865 10,084
--------------------- ------------ ------------ ----------------
Financial assets 199 121 119
--------------------- ------------ ------------ ----------------
Cash and cash
equivalents 48,376 59,345 68,277
--------------------- ------------ ------------ ----------------
TOTAL 260,426 281,854 271,611
TOTAL ASSETS 538,838 935,771 962,246
LIABILITIES -
CURRENT
--------------------- ---------------- ------------- --------------------
Lease liabilities 13,735 13,661 13,922
--------------------- ------------ ------------ ----------------
Trade and other
payables 104,960 96,827 101,161
--------------------- ------------ ------------ ----------------
Corporation tax
payable 7,198 7,757 6,088
--------------------- ------------ ------------ ----------------
Contingent
consideration 192 100 80
--------------------- ------------ ------------ ----------------
Deferred
consideration -- 3,376 3,349
--------------------- ------------ ------------ ----------------
TOTAL 126,085 121,721 124,600
LIABILITIES - NON
CURRENT
--------------------- ---------------- ------------- --------------------
Borrowings 195,776 180,943 136,456
--------------------- ------------ ------------ ----------------
Lease liabilities 29,099 33,448 35,225
--------------------- ------------ ------------ ----------------
Deferred tax
liabilities 13,841 15,183 19,674
--------------------- ------------ ------------ ----------------
Tax liabilities
related to Pillar
II Income tax 646 584 --
--------------------- ------------ ------------ ----------------
Contingent
consideration 159 401 329
--------------------- ------------ ------------ ----------------
Other liabilities 592 552 377
--------------------- ------------ ------------ ----------------
TOTAL 240,113 231,111 192,061
EQUITY
--------------------- ---------------- ------------- --------------------
Share capital 1,044 1,123 1,189
--------------------- ------------ ------------ ----------------
Share premium 21,280 21,280 21,280
--------------------- ------------ ------------ ----------------
Merger relief
reserve 63,440 63,440 63,440
--------------------- ------------ ------------ ----------------
Retained earnings 142,210 575,428 619,216
--------------------- ------------ ------------ ----------------
Other reserves (55,329) (60,369) (41,613)
--------------------- ------------ ------------ ----------------
Treasury shares -- (17,958) (17,922)
--------------------- ------------ ------------ ----------------
Investment in own
shares (5) (5) (5)
--------------------- ------------ ------------ ----------------
TOTAL 172,640 582,939 645,585
TOTAL LIABILITIES
AND EQUITY 538,838 935,771 962,246
(1) Restated to include the effect of revisions arising from provisional to
final acquisition accounting for GalaxE.
CONDENSED
CONSOLIDATED
STATEMENTS OF
CASH FLOWS Nine Months Ended March 31 Three Months Ended March 31
--------------------------- -----------------------------
2026 2025 2026 2025
-------------- ----------- -------------- -------------
GBP'000 GBP'000 GBP'000 GBP'000
-------------- ----------- -------------- -------------
OPERATING
ACTIVITIES
(Loss) / Profit
for the
period (409,505) 20,044 (394,442) 10,946
---------------- ---------- ---------- ---------- ----------
Income tax
charge 21,855 270 22,490 2,651
---------------- ---------- ---------- ---------- ----------
Non-cash
adjustments 415,116 64,720 377,451 18,513
---------------- ---------- ---------- ---------- ----------
Tax received /
(paid) 2,251 (6,943) (1,643) (3,157)
---------------- ---------- ---------- ---------- ----------
Research &
Development
Credit
received 8,567 -- 4,696 --
---------------- ---------- ---------- ---------- ----------
Net changes in
working
capital 1,757 (23,010) (8,921) (10,294)
---------------- ---------- ---------- ---------- ----------
Net cash from /
(used in)
operating
activities 40,041 55,081 (369) 18,659
INVESTING
ACTIVITIES
---------------- -------------- ----------- -------------- -------------
Purchase of
non-current
assets
(tangibles and
intangibles) (14,010) (2,932) (2,883) (1,361)
---------------- ---------- ---------- ---------- ----------
Proceeds from
disposal of
non-current
assets 114 255 51 219
---------------- ---------- ---------- ---------- ----------
Payment for
acquisition of
subsidiary,
net of cash
acquired (4,443) (6,676) (857) (776)
---------------- ---------- ---------- ---------- ----------
Interest
received 1,493 978 244 258 ---------------- ---------- ---------- ---------- ---------- Net cash used in investing activities (16,846) (8,375) (3,445) (1,660) FINANCING ACTIVITIES ---------------- -------------- ----------- -------------- ------------- Proceeds from borrowings 54,903 35,000 11,903 25,000 ---------------- ---------- ---------- ---------- ---------- Repayment of borrowings (43,634) (40,842) (20,304) (10,000) ---------------- ---------- ---------- ---------- ---------- Proceeds from sublease 90 92 37 28 ---------------- ---------- ---------- ---------- ---------- Repayment of lease liabilities (9,478) (9,357) (2,895) (3,198) ---------------- ---------- ---------- ---------- ---------- Repayment of lease interest (1,259) (1,447) (404) (458) ---------------- ---------- ---------- ---------- ---------- Grant received 105 274 95 -- ---------------- ---------- ---------- ---------- ---------- Interest and debt financing costs paid (7,707) (6,510) (2,545) (2,228) ---------------- ---------- ---------- ---------- ---------- Payment for repurchase of own shares (27,431) (17,808) (2,446) (17,808) ---------------- ---------- ---------- ---------- ---------- Net cash (used in) financing activities (34,411) (40,598) (16,559) (8,664) Net change in cash and cash equivalents (11,216) 6,108 (20,373) 8,335 Cash and cash equivalents at the beginning of the period 59,345 62,358 68,484 60,065 ---------------- ---------- ---------- ---------- ---------- Effects of exchange rate changes on cash and cash equivalents 247 (189) 265 (123) ---------------- ---------- ---------- ---------- ---------- Cash and cash equivalents at the end of the period 48,376 68,277 48,376 68,277
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:
Nine Months Ended March 31 Three Months Ended March 31
------------------------------ ------------------------------
2026 2025 2026 2025
--------------- ------------- -------------- --------------
REVENUE
(DECLINE) /
GROWTH RATE
AS REPORTED
UNDER IFRS (7.6)% 7.2% (8.4%) 11.7%
-------------- -------- --- ------- --- -------- -------- ---
Impact of
Foreign
exchange
rate
fluctuations 1.3% 1.6% 2.0% 0.7%
-------------- -------- ---- ------- --- -------- --- -------- ---
REVENUE
(DECLINE) /
GROWTH RATE
AT CONSTANT
CURRENCY (6.3)% 8.8% (6.4%) 12.4%
RECONCILIATION OF ADJUSTED PROFIT BEFORE TAX AND ADJUSTED PROFIT FOR THE
PERIOD:
Nine Months Ended March 31 Three Months Ended March 31
--------------------------- ------------------------------
2026 2025 2026 2025
--------------- ---------- --------------- -------------
GBP'000 GBP'000 GBP'000 GBP'000
--------------- ---------- --------------- -------------
(LOSS) /
PROFIT BEFORE
TAX (387,650) 20,314 (371,952) 13,597
Adjustments:
--------------- --------------- ---------- --------------- -------------
Share-based
compensation
expense 18,594 28,186 4,418 6,221
--------------- ----------- --------- ----------- ----------
Amortisation
of acquired
intangible
assets 15,240 16,236 5,070 4,054
--------------- ----------- --------- ----------- ----------
Foreign
currency
exchange
losses /
(gains), net 3,772 1,446 (1,070) 4,866
--------------- ----------- --------- ----------- ----------
Goodwill
impairment
charge 364,624 -- 364,624 --
--------------- ----------- --------- ----------- ----------
Restructuring
costs 9,056 5,494 2,525 --
--------------- ----------- --------- ----------- ----------
Exceptional
people
charges 668 -- -- --
--------------- ----------- --------- ----------- ----------
Fair value
movement of
contingent
consideration (626) (5,963) (457) (4,092)
--------------- ----------- --------- ----------- ----------
Total
adjustments 411,328 45,399 375,110 11,049
--------------- ----------- --------- ----------- ----------
ADJUSTED
PROFIT BEFORE
TAX 23,678 65,713 3,158 24,646
(LOSS) /
PROFIT FOR
THE PERIOD (409,505) 20,044 (394,442) 10,946
Adjustments:
--------------- --------------- ---------- --------------- -------------
Adjustments to
(loss) /
profit before
tax 411,328 45,399 375,110 11,049
--------------- ----------- --------- ----------- ----------
UK deferred
tax asset
derecognition 23,225 -- 23,225 --
--------------- ----------- --------- ----------- ----------
Release of
Romanian
withholding
tax -- (3,800) -- --
--------------- ----------- --------- ----------- ----------
Tax impact of
adjustments (5,916) (8,539) (1,274) (1,857)
--------------- ----------- --------- ----------- ----------
ADJUSTED
PROFIT FOR
THE PERIOD 19,132 53,104 2,619 20,138
RECONCILIATION OF ADJUSTED DILUTED EARNINGS PER SHARE:
Nine Months Ended March 31 Three Months Ended March 31
------------------------------ -----------------------------
2026 2025 2026 2025
-------------- -------------- ------------- --------------
GBP'000 GBP'000 GBP'000 GBP'000
-------------- -------------- ------------- --------------
DILUTED (LOSS)
/ EARNINGS
PER SHARE
(GBP) (7.77) 0.34 (7.55) 0.18
Adjustments:
--------------- -------------- -------------- ------------- --------------
Share-based
compensation
expense 0.35 0.47 0.08 0.10
--------------- ---------- ---------- --------- ----------
Amortisation
of acquired
intangible
assets 0.29 0.27 0.10 0.07
--------------- ---------- ---------- --------- ----------
Foreign
currency
exchange
losses /
(gains) net 0.07 0.02 (0.02) 0.08
--------------- ---------- ---------- --------- ----------
Goodwill
impairment
charge 6.92 -- 6.98 --
--------------- ---------- ---------- --------- ----------
Restructuring
costs 0.17 0.09 0.05 --
--------------- ---------- ---------- --------- ----------
Exceptional
people
charges 0.01 -- -- --
--------------- ---------- ---------- --------- ----------
Fair value
movement of
contingent
consideration (0.01) (0.09) (0.01) (0.06)
--------------- ---------- ---------- --------- ----------
UK deferred
tax asset
derecognition 0.44 -- 0.44 --
--------------- ---------- ---------- --------- ----------
Release of
Romanian
withholding
tax -- (0.06) -- --
--------------- ---------- ---------- --------- ----------
Tax impact of
adjustments (0.11) (0.15) (0.02) (0.03)
--------------- ---------- ---------- --------- ----------
Total
adjustments 8.13 0.55 7.60 0.16
--------------- ---------- ---------- --------- ----------
ADJUSTED
DILUTED
EARNINGS PER
SHARE (GBP) 0.36 0.89 0.05 0.34
RECONCILIATION OF NET CASH FROM / (USED IN) OPERATING ACTIVITIES TO ADJUSTED
FREE CASH FLOW
Nine Months Ended March 31 Three Months Ended March 31
--------------------------- -----------------------------
2026 2025 2026 2025
-------------- ----------- -------------- -------------
GBP'000 GBP'000 GBP'000 GBP'000
-------------- ----------- -------------- -------------
NET CASH FROM /
(USED IN)
OPERATING
ACTIVITIES 40,041 55,081 (369) 18,659
Adjustments:
---------------- -------------- ----------- -------------- -------------
Grant received 105 274 95 --
---------------- ---------- ---------- ---------- ----------
Net purchases
of non-current
assets
(tangibles and
intangibles) (13,896) (2,677) (2,832) (1,142)
---------------- ---------- ---------- ---------- ----------
ADJUSTED FREE
CASH FLOW 26,250 52,678 (3,106) 17,517
SUPPLEMENTARY INFORMATION
SHARE-BASED
COMPENSATION
EXPENSE Nine Months Ended March 31 Three Months Ended March 31
---------------------------- -----------------------------
2026 2025 2026 2025
------------- ------------- -------------- -------------
GBP'000 GBP'000 GBP'000 GBP'000
------------- ------------- -------------- -------------
Direct cost of
sales 12,309 19,550 3,026 4,502
----------------- ------------- ------------- -------------- -------------
Selling, general
and
administrative
expenses 6,285 8,636 1,392 1,719
----------------- ------------- ------------- -------------- -------------
Total 18,594 28,186 4,418 6,221
DEPRECIATION AND
AMORTISATION Nine Months Ended March 31 Three Months Ended March 31
---------------------------- -----------------------------
2026 2025 2026 2025
------------- ------------- -------------- -------------
GBP'000 GBP'000 GBP'000 GBP'000
------------- ------------- -------------- -------------
Direct cost of
sales 13,240 15,571 3,958 5,158
----------------- ------------- ------------- -------------- -------------
Selling, general
and
administrative
expenses 17,095 18,525 5,592 4,805
----------------- ------------- ------------- -------------- -------------
Total 30,335 34,096 9,550 9,963
EMPLOYEES, TOP 10
CUSTOMERS AND REVENUE Three Months Ended March
SPLIT Nine Months Ended March 31 31
-------------------------- -------------------------
2026 2025 2026 2025
------------ ------------ ----------- ------------
Closing number of
total employees
(including
directors) 11,225 11,365 11,225 11,365
----------------------- ------ ---- ------- --- ------ --- ------- ---
Average operational
employees 10,275 10,452 10,166 10,272
----------------------- ------ ---- ------- --- ------ --- ------- ---
Top 10 customers % 35% 36% 40% 39%
----------------------- ------ --- ------- ------ -------
Number of clients with
> GBP1m of revenue
(rolling 12 months) 129 136 129 136
----------------------- ------ ---- ------- --- ------ --- ------- ---
Geographic split of
revenue %
----------------------- ------------ ------------ ----------- ------------
North America 40% 38% 38% 37%
----------------------- ------ --- ------- ------ -------
Europe 23% 24% 23% 22%
----------------------- ------ --- ------- ------ -------
UK 31% 33% 33% 35%
----------------------- ------ --- ------- ------ -------
Rest of World (RoW) 6% 5% 6% 6%
----------------------- ------ --- ------- ------ -------
Industry vertical
split of revenue %
----------------------- ------------ ------------ ----------- ------------
Payments 20% 19% 23% 19%
----------------------- ------ --- ------- ------ -------
Banking and Capital
Markets 22% 19% 22% 21%
----------------------- ------ --- ------- ------ -------
Insurance 9% 9% 9% 9%
----------------------- ------ --- ------- ------ -------
TMT 16% 20% 16% 18%
----------------------- ------ --- ------- ------ -------
Mobility 8% 8% 8% 8%
----------------------- ------ --- ------- ------ -------
Healthcare 12% 12% 11% 12%
----------------------- ------ --- ------- ------ -------
Other 13% 13% 11% 13%
----------------------- ------ --- ------- ------ -------
View source version on businesswire.com: https://www.businesswire.com/news/home/20260520825840/en/
CONTACT: INVESTOR CONTACT:
Endava plc
Laurence Madsen, Head of Investor Relations
Investors@endava.com
(END) Dow Jones Newswires
May 21, 2026 07:19 ET (11:19 GMT)
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