Endava ( (DAVA) ) has released its Q1 earnings. Here is a breakdown of the information Endava presented to its investors.
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Endava plc is a technology-driven business transformation group specializing in next-generation technology services, with a focus on AI-native solutions across various industries, including payments, insurance, and healthcare.
In its first quarter of fiscal year 2026, Endava reported a revenue decline of 8.6% year-on-year, reaching £178.2 million. The company faced unexpected challenges, including a credit issued to a client and certain strategic opportunities not converting into revenue as anticipated.
Key financial highlights include a loss before tax of £8.5 million, compared to a profit of £4.2 million in the previous year. Adjusted profit before tax stood at £9.9 million, marking a decrease from £19.2 million. Despite these setbacks, Endava secured a significant multi-year partnership with a leading payments company, valued at up to $100 million, showcasing its robust client relationships and capabilities.
The company experienced a decrease in the number of clients generating over £1 million in revenue, down to 133 from 147. However, the geographic revenue distribution remained stable, with North America contributing 42% of the total revenue. Endava’s cash flow from operating activities improved to £12.3 million, up from £4.4 million in the prior year.
Looking ahead, Endava anticipates a continued revenue decline in the second quarter of fiscal year 2026, with expectations set between £179.0 million and £182.0 million. The company remains focused on leveraging its AI and engineering capabilities to drive future growth and strengthen its market position.