Endava Announces First Quarter Fiscal Year 2026 Results

Q1 FY2026 8.6% Year on Year Revenue Decline to £178.2 million 7.3% Revenue Decline at Constant Currency Diluted EPS £(0.15) compared to £0.04 in the prior year comparative period Adjusted Diluted EPS £0.15 compared to £0.25 in the prior year comparative periodLONDON--(BUSINESS WIRE)--Endava plc (NYSE: 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 September 30, 2025 ("Q1 FY2026"). "The first quarter results were lower than guided primarily due to an unexpected credit made to a client that arose subsequent to our last earnings call as well as certain non large strategic pipeline opportunities that did not convert into revenue during the quarter as anticipated. While these factors weighed on our performance, our ability to secure a multi-year strategic relationship with a leading payments company of up to $100 million demonstrates the strength of our client relationships. This partnership will utilise the best of Endava’s global delivery capability as well as our AI and advanced engineering capabilities to streamline our client's technology platforms and enhance existing capabilities. This represents a prime example of the type of deal and partnership we are targeting utilising our capability as an AI native, technology agnostic, transformation partner,” said John Cotterell, Endava's CEO. FIRST QUARTER FISCAL YEAR 2026 FINANCIAL HIGHLIGHTS: Revenue for Q1 FY2026 was £178.2 million, a decline of 8.6% compared to £195.1 million in the same period in the prior year. Revenue decline at constant currency (a non-IFRS measure)* was 7.3% for Q1 FY2026. Loss before tax for Q1 FY2026 was £(8.5) million, compared to profit before tax of £4.2 million in the same period in the prior year. Adjusted profit before tax (a non-IFRS measure)* for Q1 FY2026 was £9.9 million, or 5.5% of revenue, compared to £19.2 million, or 9.9% of revenue, in the same period in the prior year. Loss for the period was £(8.2) million, resulting in diluted loss per share of £(0.15), compared to profit for the period of £2.2 million and diluted earnings per share ("EPS") of £0.04 in the same period in the prior year. Adjusted profit for the period (a non-IFRS measure)* was £7.9 million, resulting in adjusted diluted EPS (a non-IFRS measure)* of £0.15, compared to adjusted profit for the period of £15.1 million and adjusted diluted EPS of £0.25 in the same period in the prior year. CASH FLOW: Net cash from operating activities was £12.3 million in Q1 FY2026, compared to net cash from operating activities of £4.4 million in the same period in the prior year. Adjusted free cash flow (a non-IFRS measure)* was £9.2 million in Q1 FY2026, compared to £3.5 million in the same period in the prior year. At September 30, 2025, Endava had cash and cash equivalents of £47.2 million, compared to £59.3 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 SEPTEMBER 30, 2025: Headcount totaled 11,636 at September 30, 2025, with an average of 10,332 operational employees in Q1 FY2026, compared to a headcount of 11,821 at September 30, 2024 and an average of 10,627 operational employees in the same period in the prior year. Number of clients with over £1 million in revenue on a rolling twelve-month basis was 133 at September 30, 2025 compared to 147 clients at September 30, 2024. Top 10 clients accounted for 36% of revenue in Q1 FY2026, similar to the same period in the prior year. By geographic region, 42% of revenue was generated in North America, 24% was generated in Europe, 28% was generated in the United Kingdom and 6% was generated in the rest of the world in Q1 FY2026. This compares to 39% in North America, 25% in Europe, 31% in the United Kingdom and 5% in the Rest of the World in the same period in the prior year. By industry vertical, 17% of revenue was generated from Payments, 22% from BCM, 9% from Insurance, 17% from TMT, 9% from Mobility, 12% from Healthcare, and 14% from Other in Q1 FY2026. This compares to 20% from Payments, 17% from BCM, 9% from Insurance, 21% from TMT, 9% from Mobility, 12% from Healthcare, and 12% from Other in the same period in the prior year. OUTLOOK: Second Quarter Fiscal Year 2026: Endava expects revenue will be in the range of £179.0 million to £182.0 million, representing a constant currency revenue decline of between (8.0)% and (7.0)% on a year over year basis. Endava expects adjusted diluted EPS to be in the range of £0.15 to £0.17 per share. Full Fiscal Year 2026: Endava expects revenue will be in the range of £735.0 million to £752.0 million, representing a constant currency revenue change of between (4.5)% and (2.5)% on a year over year basis. Endava expects adjusted diluted EPS to be in the range of £0.80 to £0.88 per share. This above guidance for the second quarter and full fiscal year 2026 assumes the exchange rates on October 31, 2025 (when the exchange rate was 1 British Pound to 1.32 US Dollar and 1.14 Euro). Endava is not able, at this time, to reconcile its expectations for the second 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, foreign currency exchange losses / (gains), net, and fair value movement of contingent consideration, 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 October 31, 2025, the Company had repurchased an aggregate of 7,139,149 American Depositary Shares for $115.9 million under its share repurchase program. As of October 31, 2025, the Company had $34.1 million remaining for repurchase under its share repurchase authorisation. CONFERENCE CALL DETAILS: The Company will host a conference call at 8:00 am ET today, November 11, 2025, to review its Q1 FY2026 results. To participate in Endava’s Q1 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 Friday December 12, 2025. 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 September 30, 2025, 11,636 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 September 30, 2024 were used to convert revenue for the fiscal quarter ended September 30, 2025 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, restructuring costs, and fair value movement of contingent consideration, all of which are non-cash items except for realised foreign currency exchange losses/(gains), net and restructuring costs. 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. 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 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 pipeline of potential large opportunities, Endava's business strategies, plans, operations and growth opportunities and Endava's future financial performance, including management's financial outlook for the second 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 INCOME Three Months Ended September 30 2025 2024 £’000 £’000 REVENUE 178,187 195,052 Cost of sales Direct cost of sales (134,039 ) (139,520 ) Allocated cost of sales (6,484 ) (6,873 ) Total cost of sales (140,523 ) (146,393 ) GROSS PROFIT 37,664 48,659 Selling, general and administrative expenses (40,575 ) (43,969 ) OPERATING (LOSS) / PROFIT (2,911 ) 4,690 Net finance expense (5,561 ) (477 ) (LOSS) / PROFIT FOR THE PERIOD BEFORE TAX (8,472 ) 4,213 Tax on (loss) / profit on ordinary activities 315 (1,966 ) (LOSS) / PROFIT FOR THE PERIOD (8,157 ) 2,247 OTHER COMPREHENSIVE INCOME Items that may be reclassified subsequently to profit or loss: Exchange differences on translating foreign operations and net investment hedge impact 6,593 (23,340 ) Total comprehensive expense for the year attributable to the equity holders of the Company (1,564 ) (21,093 ) (LOSS) / EARNINGS PER SHARE: Weighted average number of shares outstanding - Basic 53,037,125 59,051,116 Weighted average number of shares outstanding - Diluted 53,193,752 59,430,225 Basic (Loss) / EPS (£) (0.15 ) 0.04 Diluted (Loss) / EPS (£) (0.15 ) 0.04 CONDENSED CONSOLIDATED BALANCE SHEETS September 30, 2025 June 30, 2025 September 30, 2024 (1) £’000 £’000 £’000 ASSETS - NON-CURRENT Goodwill 479,436 473,296 486,083 Intangible assets 103,795 100,890 118,593 Property, plant and equipment 15,087 14,177 18,197 Lease right-of-use assets 43,074 41,515 50,474 Deferred tax assets 20,730 19,030 18,613 Financial assets and other receivables 6,636 5,009 9,455 TOTAL 668,758 653,917 701,415 ASSETS - CURRENT Trade and other receivables 213,189 209,523 198,201 Corporation tax receivable 4,443 12,865 9,783 Financial assets 127 121 181 Cash and cash equivalents 47,225 59,345 52,811 TOTAL 264,984 281,854 260,976 TOTAL ASSETS 933,742 935,771 962,391 LIABILITIES - CURRENT Lease liabilities 14,127 13,661 14,161 Trade and other payables 97,032 96,827 104,512 Corporation tax payable 7,817 7,757 5,693 Contingent consideration 104 100 6,651 Deferred consideration 2,518 3,376 5,749 TOTAL 121,598 121,721 136,766 LIABILITIES - NON CURRENT Borrowings 193,208 180,943 132,638 Lease liabilities 34,958 33,448 40,811 Deferred tax liabilities 13,962 15,183 24,365 Tax liabilities related to Pilar II Income tax 584 584 — Contingent consideration 90 401 — Deferred consideration — — 943 Other liabilities 557 552 424 TOTAL 243,359 231,111 199,181 EQUITY Share capital 1,046 1,123 1,180 Share premium 21,280 21,280 21,280 Merger relief reserve 63,440 63,440 63,440 Retained earnings 536,723 575,428 583,969 Other reserves (53,699 ) (60,369 ) (43,399 ) Treasury shares — (17,958 ) — Investment in own shares (5 ) (5 ) (26 ) TOTAL 568,785 582,939 626,444 TOTAL LIABILITIES AND EQUITY 933,742 935,771 962,391 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Three Months Ended September 30 2025 2024 £’000 £’000 OPERATING ACTIVITIES (Loss) / Profit for the period (8,157 ) 2,247 Income tax charge (315 ) 1,966 Non-cash adjustments 19,992 23,593 Tax received / (paid) 5,681 (1,320 ) Research & Development Credit received 97 — Net changes in working capital (5,046 ) (22,112 ) Net cash from operating activities 12,252 4,374 INVESTING ACTIVITIES Purchase of non-current assets (tangibles and intangibles) (3,090 ) (1,135 ) Proceeds from disposal of non-current assets 47 36 Payment for acquisition of subsidiary, net of cash acquired (3,487 ) (68 ) Interest received 694 367 Net cash used in investing activities (5,836 ) (800 ) FINANCING ACTIVITIES Proceeds from borrowings 10,000 — Repayment of borrowings — (7,000 ) Proceeds from sublease 23 30 Repayment of lease liabilities (2,898 ) (3,093 ) Repayment of lease interest (417 ) (507 ) Grant received — 274 Interest and debt financing costs paid (2,468 ) (2,252 ) Payment for repurchase of own shares (22,917 ) — Net cash used in financing activities (18,677 ) (12,548 ) Net change in cash and cash equivalents (12,261 ) (8,974 ) Cash and cash equivalents at the beginning of the period 59,345 62,358 Effects of exchange rate changes on cash and cash equivalents 141 (573 ) Cash and cash equivalents at the end of the period 47,225 52,811 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: Three Months Ended September 30 2025 2024 REVENUE (DECLINE) / GROWTH RATE AS REPORTED UNDER IFRS (8.6 %) 3.5 % Impact of Foreign exchange rate fluctuations 1.3 % 1.7 % REVENUE (DECLINE) / GROWTH RATE AT CONSTANT CURRENCY (7.3 %) 5.2 % RECONCILIATION OF ADJUSTED PROFIT BEFORE TAX AND ADJUSTED PROFIT FOR THE PERIOD: Three Months Ended September 30 2025 2024 £’000 £’000 (LOSS) / PROFIT BEFORE TAX (8,472 ) 4,213 Adjustments: Share-based compensation expense 7,680 11,021 Amortisation of acquired intangible assets 5,021 6,146 Foreign currency exchange losses / (gains), net 3,548 (846 ) Restructuring costs 2,438 — Fair value movement of contingent consideration (363 ) (1,302 ) Total adjustments 18,324 15,019 ADJUSTED PROFIT BEFORE TAX 9,852 19,232 (LOSS) / PROFIT FOR THE PERIOD (8,157 ) 2,247 Adjustments: Adjustments to (loss) / profit before tax 18,324 15,019 Tax impact of adjustments (2,245 ) (2,171 ) ADJUSTED PROFIT FOR THE PERIOD 7,922 15,095 RECONCILIATION OF ADJUSTED DILUTED EARNINGS PER SHARE: Three Months Ended September 30 2025 2024 £’000 £’000 DILUTED (LOSS) / EARNINGS PER SHARE (£) (0.15 ) 0.04 Adjustments: Share-based compensation expense 0.14 0.19 Amortisation of acquired intangible assets 0.09 0.10 Foreign currency exchange losses / (gains) net 0.07 (0.01 ) Restructuring costs 0.05 — Fair value movement of contingent consideration (0.01 ) (0.03 ) Tax impact of adjustments (0.04 ) (0.04 ) Total adjustments 0.30 0.21 ADJUSTED DILUTED EARNINGS PER SHARE (£) 0.15 0.25 RECONCILIATION OF NET CASH FROM OPERATING ACTIVITIES TO ADJUSTED FREE CASH FLOW Three Months Ended September 30 2025 2024 £’000 £’000 NET CASH FROM OPERATING ACTIVITIES 12,252 4,374 Adjustments: Grant received — 274 Net purchases of non-current assets (tangibles and intangibles) (3,043 ) (1,099 ) ADJUSTED FREE CASH FLOW 9,209 3,549 SUPPLEMENTARY INFORMATION SHARE-BASED COMPENSATION EXPENSE Three Months Ended September 30 2025 2024 £’000 £’000 Direct cost of sales 4,864 7,794 Selling, general and administrative expenses 2,816 3,227 Total 7,680 11,021 DEPRECIATION AND AMORTISATION Three Months Ended September 30 2025 2024 £’000 £’000 Direct cost of sales 4,591 5,180 Selling, general and administrative expenses 5,701 6,897 Total 10,292 12,077 EMPLOYEES, TOP 10 CUSTOMERS AND REVENUE SPLIT Three Months Ended September 30 2025 2024 Closing number of total employees (including directors) 11,636 11,821 Average operational employees 10,332 10,627 Top 10 customers % 36 % 36 % Number of clients with > £1m of revenue (rolling 12 months) 133 147 Geographic split of revenue % North America 42 % 39 % Europe 24 % 25 % UK 28 % 31 % Rest of World (RoW) 6 % 5 % Industry vertical split of revenue % Payments 17 % 20 % Banking and Capital Markets 22 % 17 % Insurance 9 % 9 % TMT 17 % 21 % Mobility 9 % 9 % Healthcare 12 % 12 % Other 14 % 12 % FOOTNOTES (1) Restated to include the effect of revisions arising from provisional to final acquisition accounting for GalaxE. Contacts INVESTOR CONTACT:Endava plc Laurence Madsen, Head of Investor Relations Investors@endava.com

Endava Announces First Quarter Fiscal Year 2026 Results

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