Endava Reports Significant Q2 Revenue Decline and Shift to Net Loss; Issues Negative Outlook

summarizeSummary

Endava plc announced Q2 FY2026 financial results showing a significant year-over-year revenue decline, a shift to a net loss, and reduced adjusted EPS, alongside a negative revenue outlook for the coming periods.

check_boxKey Events

• Significant Revenue Decline

  Q2 FY2026 revenue decreased by 5.9% year-over-year to £184.1 million, or 5.1% at constant currency.

• Shift to Net Loss

  The company reported a loss before tax of £(7.2) million and a diluted loss per share of £(0.13), a notable reversal from profit in the prior year.

• Reduced Profitability

  Adjusted diluted EPS fell to £0.16, down from £0.30 in the comparable prior-year period.

• Negative Revenue Outlook

  Guidance for Q3 FY2026 and the full FY2026 projects continued year-over-year revenue decline at constant currency.

auto_awesomeAnalysis

Endava plc's second-quarter results reveal a substantial deterioration in financial performance, with revenue declining and the company shifting from a profit to a net loss. The adjusted diluted EPS also saw a significant reduction. Furthermore, the guidance for both the upcoming quarter and the full fiscal year projects continued revenue decline, indicating ongoing challenges. While the company emphasizes strategic investments in AI, these efforts have not yet translated into improved financial results, raising concerns about near-term profitability and growth trajectory.