Endava(DAVA) - 2026 Q1 - Quarterly Report

Financial Performance - Q1 FY2026 revenue was £178.2 million, an 8.6% decline from £195.1 million in the same period last year[4] - Loss before tax for Q1 FY2026 was £(8.5) million, compared to a profit before tax of £4.2 million in the prior year[4] - Adjusted diluted EPS for Q1 FY2026 was £0.15, down from £0.25 in the same period last year[8] - Full FY2026 revenue guidance is set between £735.0 million and £752.0 million, indicating a constant currency decline of 4.5% to 2.5% year-over-year[11] - Revenue growth rate as reported under IFRS declined by 8.6%, while at constant currency, the decline was 7.3%[33] - Adjusted profit before tax for the period was £9,852,000, down from £19,232,000 in the previous year[34] - Basic and diluted earnings per share (EPS) for the period were (£0.15), compared to £0.04 in the same period last year[30] Cash and Liquidity - As of September 30, 2025, Endava had cash and cash equivalents of £47.2 million, down from £59.3 million at June 30, 2025[8] - The company’s cash and cash equivalents at the end of the period were £47,225,000, down from £52,811,000 year-over-year[32] - Net cash from operating activities increased to £12,252,000 from £4,374,000 year-over-year[36] - Adjusted free cash flow for the period was £9,209,000, compared to £3,549,000 in the same period last year[36] - The company incurred share-based compensation expenses of £7,680,000, down from £11,021,000 in the previous year[37] Client and Revenue Concentration - The number of clients generating over £1 million in revenue over the last twelve months decreased to 133 from 147 a year ago[8] - Top 10 clients accounted for 36% of revenue in Q1 FY2026, consistent with the prior year[8] Geographic Performance - By geographic region, 42% of revenue was generated in North America, up from 39% in the same period last year[8] - North America accounted for 42% of revenue, an increase from 39% in the previous year[39] Employee Metrics - The company reported a total of 11,636 employees, a decrease from 11,821 employees year-over-year[39] Strategic Developments - The company secured a multi-year strategic relationship with a leading payments company worth up to $100 million[3] Asset Management - Total assets decreased to £933,742,000 from £962,391,000 year-over-year, reflecting a decline of approximately 3.0%[31]