EPAM’s latest results suggest its long slump may be out of sync with its fundamentals — here’s why a major hedge fund just doubled down.New York City-based Senvest Management significantly increased its stake in EPAM Systems during the third quarter, adding 524,798 shares and seeing the overall position value increase by approximately $67.6 million.What HappenedSenvest Management reported a substantial increase in its holdings of EPAM Systems (EPAM +3.00%), according to a Securities and Exchange Commission ...

Financial Data and Key Metrics Changes - Loan volume reached RMB 50.89 billion, revenue reached RMB 3.42 billion, and net profit was RMB 521 million, up 2% quarter-over-quarter and 68% year-over-year [4][51] - Net profit take rate stood at 2.01%, increasing by 9 basis points quarter-over-quarter and 92 basis points year-over-year [4][51] - Total revenue decreased by 5% quarter-over-quarter, primarily due to a 29% decrease in e-commerce platform service income [29] Business Line Data and Key Metrics Changes - Net revenue of the credit business reached RMB 1.9 billion, a 3% decrease quarter-over-quarter [19] - Net revenue of the e-commerce business increased by 14% to RMB 111 million [20] - E-commerce GMV for essential daily consumer goods grew 58.5% quarter-over-quarter and 133.8% year-over-year [9][56] Market Data and Key Metrics Changes - The total GMV of the e-commerce platform increased by 38% year-over-year during the Singles' Day Shopping Festival, with transaction volume for essential daily consumer goods surging by 237% year-over-year [9][57] - The asset quality of the inclusive finance business remained stable, validating the value of lower-tier markets [9][57] Company Strategy and Development Direction - The company believes the new regulations will raise industry entry barriers and drive healthier development [5] - Emphasis on shareholder returns with an increased dividend payout ratio from 25% to 30% of net profit [5][52] - Focus on enhancing user experience and risk management capabilities, including the deployment of AI technology [6][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving stable performance growth despite industry fluctuations [10][59] - The company anticipates moderate loan volume decline in the fourth quarter due to regulatory impacts [30][42] - Risk performance for new loans is showing signs of stabilization, validating the effectiveness of the risk management system [33][40] Other Important Information - The company has repurchased $25 million worth of ADS and the CEO has purchased over $5 million worth of shares [31][47] - The company is committed to enhancing shareholder value through share buyback programs and dividends [31][47] Q&A Session All Questions and Answers Question: Impact of new regulation on business operations - The company has stopped underwriting loans with APR above 24% and has seen some impact on business volume and average loan pricing due to the shift [32][33] Question: Development strategy and outlook of the e-commerce business - The e-commerce business is progressing steadily, with significant growth in transaction volume and a focus on customer acquisition and engagement [34][35] Question: Management of risk during the transitional period - The company has enhanced risk control measures and identified vulnerable customers to manage risk effectively [37][38]

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]

Company Overview - Endava is a next-generation technology services company focused on digital transformation[14,18] - The company serves a large addressable market with a five-year Compound Annual Growth Rate (CAGR) of 162% for digital transformation investments[26,27] - As of March 31, 2025, Endava has 11,365 global employees, a 31% increase from Q3 FY24[32] - 37% of Endava's total staff are women as of March 31, 2025[32] - Endava has expanded globally to 69 cities across 29 countries[35] Financial Performance - Endava's revenue has grown at a CAGR of 205% from FY20 to FY24[52] - Revenue for Q3 FY25 increased by 117% year-over-year[55] - The top 10 clients account for 34% of total revenue in Q3 FY25[65] - Adjusted Profit Before Tax as a percentage of Revenue is 126% for Q3 FY25[82] Client Metrics - The number of clients with revenue exceeding £1 million is 136 in Q3 FY25[62] - The average spend for the top 10 clients is £21200 thousand in Q3 FY25[67] - The average spend for remaining clients is £710 thousand in Q3 FY25[69] Revenue by Region - 37% of revenue comes from the UK, 35% from Europe, 6% from North America, and 22% from Rest of World (RoW) in Q3 FY25[71]