Endava plc (DAVA) Earnings Call Transcripts

Endava plc's Latest Earnings Call - Q3 FY2026

In the third quarter of fiscal year 2026, Endava plc reported revenues of GBP 178.5 million, an 8.4% decline year-over-year, missing expectations due to extended deal cycles and client delays, particularly in the Middle East. The company also recorded a significant loss before tax of GBP 372 million, largely attributed to a noncash goodwill impairment of GBP 364.6 million. Management has lowered guidance for Q4, projecting revenue between GBP 181 million and GBP 185 million, reflecting ongoing challenges in pipeline conversion and client spending scrutiny.

Reported metrics

Guidance from management

Management has lowered Q4 revenue guidance to GBP 181 million to GBP 185 million and full fiscal year guidance to GBP 721.8 million to GBP 725.8 million, reflecting ongoing challenges in client demand and pipeline conversion.

What management said

Yes. So the cash generation in the quarter was disappointing. As I said, most of the billings arose in March. So the collections will take place between now and June. So we anticipate a significantly better cash flow generation in Q4. But notwithstanding that, leverage is something we want to focus on reducing. We do have a refinancing coming up during the course of FY '27. But looking at the wider funding of the bus...

I mean I think the other thing just to add to that, it's not specifically around the productivity and the model style and the pricing attached to it. But our utilization availability is running much lower as we're going through this pivot we're investing in skilled retraining and so on. And actually, we need to do that to prepare our workforce for the enemies coming through. It's not an optional extra, and that is pa...

What analysts pressed on

Analysts expressed concerns regarding the prolonged decision-making processes among clients and the potential impact of discretionary spending cuts on revenue. There were also questions about the effectiveness of management's strategies to improve pipeline conversion and the sustainability of cash flow amidst rising borrowings.

Main topics on the call

• Revenue Decline — Endava's revenue for Q3 FY 2026 was GBP 178.5 million, down from GBP 194.8 million in the prior year, representing an 8.4% decrease. Management noted that 'the primary driver of the quarter's miss and the lowered Q4 guid...
• Goodwill Impairment — The company took a goodwill impairment charge of GBP 364.6 million, which is a noncash accounting adjustment. This charge does not impact liquidity or operational capabilities, but it reflects the need to reassess asset ...
• Shift to AI-Driven Business — Endava reported that AI-driven revenue has increased to 15% of total revenue, up from 5% a year ago, totaling GBP 27 million in Q3 FY 2026. Management stated, 'We are seeing much more substantive AI-driven deals coming t...
• Partnerships and Market Positioning — Endava has expanded its partnerships with major players like Mastercard and Google, enhancing its AI capabilities and market reach. The collaboration with Mastercard aims to accelerate next-generation payments, showcasin...

Read the full Endava plc transcript (Q3 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 42 Endava plc earnings call transcripts on record, spanning February 13, 2020 to May 21, 2026. Based on this history, Endava plc reports quarterly. The most recent call on file is dated May 21, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

DAVA

Exchange

NYSE

Country

US

Sector

Information Technology

Industry

IT Services

Calls on record

42

First call

February 13, 2020

Most recent

May 21, 2026

Reporting cadence

quarterly