Financial Data and Key Metrics Changes - Endava's revenue for Q1 FY2026 was GBP 178.2 million, an 8.6% decrease from GBP 195.1 million in the same period last year, with a constant currency decrease of 7.3% [24][26] - Loss before tax for the quarter was GBP 8.5 million, compared to a profit of GBP 4.2 million in the prior year [25] - Adjusted PBT was GBP 9.9 million, down from GBP 19.2 million year-over-year, with an adjusted PBT margin of 5.5% compared to 9.9% [25] - Adjusted diluted EPS was GBP 0.15, down from GBP 0.25 in the same period last year [25] - Adjusted free cash flow increased to GBP 9.2 million from GBP 3.5 million year-over-year [28] Business Line Data and Key Metrics Changes - Revenue from the 10 largest clients accounted for 36% of total revenue, consistent with the previous year, but average spend per client decreased from GBP 7.1 million to GBP 6.4 million, a 9.9% decline [25][26] - North America contributed 42% of revenue, Europe 24%, the U.K. 28%, and the rest of the world 6% [26] - Revenue from North America decreased by 1%, while Europe saw a decline of 12.8% and the U.K. decreased by 17.9% [26][27] Market Data and Key Metrics Changes - The unexpected client credit impacted performance, but the reclassification of a large payments client from the U.K. to North America offset this [26][27] - The rest of the world saw a revenue increase of 9% [27] Company Strategy and Development Direction - Endava is focusing on AI-native transformation, with the DavaFlow model designed to integrate AI into every phase of the delivery lifecycle [18][20] - The company is committed to disciplined cost management while pursuing growth opportunities, particularly in AI-related engagements [9][24] - Partnerships with major technology firms, including OpenAI and Google Cloud, are being leveraged to enhance service offerings and drive growth [15][16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in transitioning business models and delivery approaches due to the rapid acceleration of AI [7][49] - The company expects gradual recovery in the latter half of the fiscal year, supported by large strategic deals [84] - Management emphasized the importance of shifting to outcome-based deals to improve margins and client benefits [49] Other Important Information - The company ended the quarter with 11,636 employees, a 2% decrease from the previous year, while continuing to expand its AI talent pool [21] - Capital expenditure as a percentage of revenue was 1.7%, up from 0.6% in the prior year [29] - The share repurchase program remains active, with $34.1 million remaining for repurchase [29] Q&A Session Summary Question: Can you share more detail on the unexpected client credit? - The credit was procedural and not related to remediation work, impacting revenue guidance but not indicative of client relationship decline [33][34] Question: Has there been any unusual client churn this quarter? - There has not been an increase in client churn, and the credit was from an ongoing relationship [39] Question: How are productivity gains from DavaFlow quantified? - DavaFlow is expected to drive significant productivity improvements, with potential gains in the 5x-10x range [40] Question: What is the strategy to navigate changes in business models? - The strategy focuses on accelerating the shift to AI-native approaches and increasing outcome-based deals to improve margins [49] Question: Can you provide details on the $100 million deal with a payments company? - The deal is a five-year commitment primarily focused on new development rather than managed services, representing significant new revenue [78] Question: How are capital allocation priorities balanced between AI investment and share buybacks? - The company continues to invest in AI while maintaining a share buyback program, prioritizing long-term profitability over short-term margins [60]

Financial Data and Key Metrics Changes - Endava's revenue for Q1 FY2026 was GBP 178.2 million, an 8.6% decrease from GBP 195.1 million in the same period last year, with a constant currency decrease of 7.3% [22][23] - Loss before tax for the quarter was GBP 8.5 million, compared to a profit of GBP 4.2 million in the prior year [23] - Adjusted profit before tax (PBT) was GBP 9.9 million, down from GBP 19.2 million year-over-year, with an adjusted PBT margin of 5.5% compared to 9.9% [23] - Adjusted diluted earnings per share were GBP 0.15, down from GBP 0.25 in the same period last year [23] Business Line Data and Key Metrics Changes - Revenue from the 10 largest clients accounted for 36% of total revenue, consistent with the previous year, but average spend per client decreased from GBP 7.1 million to GBP 6.4 million, a 9.9% year-over-year decline [23][24] - North America contributed 42% of revenue, Europe 24%, the U.K. 28%, and the rest of the world 6%, with North America seeing a 1% decrease in revenue [24][25] - Revenue from Europe declined by 12.8%, primarily due to weakness in the TNT and mobility verticals, while the U.K. saw a 17.9% decrease [25] Market Data and Key Metrics Changes - The unexpected client credit impacted performance but was offset by the reclassification of a large payments client from the U.K. to North America [24][25] - The rest of the world saw a revenue increase of 9% [25] Company Strategy and Development Direction - The company is focusing on AI-native transformation, with a strategic shift towards embedding AI throughout technology stacks and operating models [17][39] - Endava's DARVA Flow framework is designed to enhance delivery efficiency and productivity through AI integration [17][19] - The company aims to secure more outcome-based deals to improve margins and client benefits [41] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in transitioning business models and delivery approaches amid the AI wave, emphasizing a commitment to becoming AI-native [39][41] - The company anticipates a gradual recovery in the latter half of the fiscal year, supported by large strategic deals [55] Other Important Information - Endava's cash and cash equivalents at the end of the period totaled GBP 47.2 million, down from GBP 59.3 million at the end of the previous quarter [25] - The company repurchased 7.1 million ADSs for $115.9 million under its share repurchase program [26] Q&A Session Summary Question: Details on the unexpected client credit - Management indicated the credit was procedural and not related to remediation work, impacting revenue guidance [30][31] Question: Demand and pipeline conversion - Pipeline conversion was lower than anticipated, with about 50% conversion against the high end and 80% against the low end [32] Question: Client churn levels - There was no unusual increase in client churn, and the credit was from an ongoing relationship [33] Question: Productivity gains from Endava Flow - The company is seeing productivity improvements of 20-30% from AI applications and significant gains from DARVA Flow [34][35] Question: Strategy to navigate changes - The focus is on accelerating the shift to AI-native models, with a current revenue split of 24% outcome-based and 76% time and materials [39][40] Question: Confidence in large deals - Three large deals are signed and committed, contributing to expected revenue growth in the second half [45] Question: Capital allocation priorities - The company continues to balance investments in AI with share buybacks, anticipating margin impacts from these investments [47] Question: Headcount strategy - The increase in headcount is due to the DARVA Flow Academy, targeting AI-native leaders and graduates [51]

Financial Performance - Endava's revenue for the three months ended September 30, 2025 (Q1 FY25) was £195.1 million, while for the three months ended September 30, 2026 (Q1 FY26) it was £178.2 million, representing a year-over-year decrease of 8.6%[88, 90] - The adjusted profit before tax for Q1 FY25 was £19.232 million, and for Q1 FY26 it was £9.852 million[94] - Adjusted free cash flow for Q1 FY25 was £3.549 million, and for Q1 FY26 it was £9.209 million[116] - The adjusted profit before tax as a percentage of revenue was 9.9% for Q1 FY25 and 5.5% for Q1 FY26[94] Client Relationships - The number of clients with revenue greater than £1 million was 147 in Q1 FY25 and 133 in Q1 FY26[97] - The average spend for top 10 clients was £7.080 million in Q1 FY25 and £6.380 million in Q1 FY26[103] - The average spend for remaining clients was £289,000 in Q1 FY25 and £278,000 in Q1 FY26[105] - Revenue from the top 10 clients accounted for 36% of total revenue in both Q1 FY25 and Q1 FY26[100] Geographical and Vertical Revenue - In Q1 FY26, Europe accounted for 28% of revenue, North America 25%, and the UK 42%[110] - By industry vertical in Q1 FY26, Payments represented 17% of revenue, Banking & Capital Markets 22%, Insurance 9%, Technology, Media & Telecom 17%, Mobility 9%, Healthcare 12%, and Other 14%[110] Employees - As of September 30, 2025, Endava had 11,636 global employees, a 1.6% decrease from Q1 FY25[62]

Core Insights - TRD U.S.A. has announced a multi-year expanded partnership with Endava, designating them as the Official IT Consulting Partner starting in 2026 [1][2] - The partnership aims to enhance TRD's branding presence in SRO Motorsports America and expand into IMSA in 2026 [1] Company Overview - Endava is a leading provider of next-generation technology services, focusing on enabling customers to accelerate growth and tackle complex challenges through innovative technologies and deep industry expertise [4] - As of September 30, 2025, Endava employs 11,636 individuals across various regions, including Europe, the Americas, Asia Pacific, and the Middle East [5] Partnership Details - The partnership is built on shared values of excellence, innovation, and collaboration, with Endava providing digital technology solutions to help TRD improve performance both on and off the racetrack [2][3] - Endava will utilize AI-enabled accelerators and frameworks to modernize TRD's core production systems and facilitate digital transformation [2][3] Strategic Goals - TRD emphasizes innovation as a core principle, aiming to leverage technology to unlock performance and drive long-term success [3] - The collaboration is expected to deliver data-driven solutions that enhance Toyota's competitive edge in motorsports [3]

Core Insights - Endava plc reported lower-than-expected results for Q1 FY2026, primarily due to an unexpected credit made to a client after the last earnings call [1] Financial Performance - The results for the three months ended September 30, 2025, were impacted by certain non-large strategic pipe [1]

Endava plc (NYSE:DAVA) will release earnings results for the first quarter before the opening bell on Tuesday, Nov. 11.Analysts expect the company to report quarterly earnings at 18 cents per share. That's down from 25 cents per share in the year-ago period. The consensus estimate for Endava's quarterly revenue is $182.08 million, compared to $195.05 million a year earlier, according to data from Benzinga Pro.On Sept. 4, Endava posted better-than-expected fourth-quarter earnings.Shares of Endava rose 1.4% t ...

Core Insights - Endava plc (NYSE:DAVA) is set to release its first-quarter earnings results on November 11, with analysts expecting earnings of 18 cents per share, a decrease from 25 cents per share in the same period last year [1] - The consensus estimate for Endava's quarterly revenue is $182.08 million, down from $195.05 million a year earlier [1] - On September 4, Endava reported better-than-expected fourth-quarter earnings [1] Stock Performance - Endava's shares rose by 1.4% to close at $9.43 on Monday [2] Analyst Ratings - Morgan Stanley analyst James Faucette maintained an Equal-Weight rating and reduced the price target from $17 to $11 [7] - Needham analyst Mayank Tandon maintained a Buy rating but cut the price target from $20 to $12 [7] - Susquehanna analyst James Friedman maintained a Positive rating and lowered the price target from $50 to $42 [7]

Core Viewpoint - Endava plc, a technology-driven business transformation group, will release its first-quarter results for the period ending September 30, 2025, on November 11, 2025, before U.S. market hours [1] Group 1: Financial Results Announcement - The results will be discussed in a conference call led by CEO John Cotterell and CFO Mark Thurston at 8:00 am ET [1] - Access information for the conference call includes a toll-free dial-in number and an international dial-in number, along with a webcast link [2] Group 2: Company Overview - Endava is a leading provider of next-generation technology services, focusing on helping clients accelerate growth and tackle complex challenges [3] - The company employs an AI-native approach, combining innovative technologies with deep industry expertise to support clients throughout their digital transformation [3] - Endava's client base includes various sectors such as payments, insurance, banking, technology, media, telecommunications, healthcare, and retail [4] - As of June 30, 2025, Endava has 11,479 employees working across Europe, the Americas, Asia Pacific, and the Middle East [4]

Group 1 - AB Volvo (publ) (VLVLY) is a manufacturer of trucks, buses, construction equipment, and marine and industrial engines [1] - The Zacks Consensus Estimate for AB Volvo's current year earnings has been revised 8.3% downward over the last 60 days [1] - Endava plc (DAVA) is a technology services company [1] - The Zacks Consensus Estimate for Endava's current year earnings has been revised 25% downward over the last 60 days [1] Group 2 - Energy Vault Holdings, Inc. (NRGV) is a utility-scale energy storage solutions company [2] - The Zacks Consensus Estimate for Energy Vault's current year earnings has been revised 2.3% downward over the last 60 days [2]

Core Viewpoint - The information technology sector has several oversold stocks, presenting potential buying opportunities for undervalued companies [1]. Group 1: Oversold Stocks - Endava PLC (DAVA) has an RSI of 29.8, with a stock price decline of approximately 34% over the past month, reaching a 52-week low of $9.12 [8]. - Neonode Inc (NEON) has an RSI of 23.5, with a significant stock price drop of around 84% in the last month, hitting a 52-week low of $3.80 [9]. - authID Inc (AUID) has an RSI of 29.54, with its stock falling about 36% over the past month, reaching a 52-week low of $2.65 [9]. Group 2: Company Performance Insights - Endava's CEO noted that over half of their employees are now using AI in projects, indicating progress towards becoming AI-native, despite a cautious outlook due to volatile operating conditions [8]. - Neonode anticipates $15-20 million from a patent settlement with Samsung Electronics, which may influence future performance [9]. - authID reported its highest quarterly revenue in history, showcasing effective execution of its growth strategy, despite a recent stock decline [9].