Q2 2026 Endava PLC Earnings Call Transcript
Key Points
- Endava PLC (DAVA) is heavily investing in AI to establish itself as a leader, including recruitment and training of next-gen talent.
- The company has expanded its network of strategic partners, enhancing its reach and capabilities.
- Endava PLC (DAVA) has secured significant client wins, such as designing a cloud-native cross-border payment switch for Nexus Global Payments.
- The company is seeing strong initial interest in its AI native engagement life cycle, Dava.Flow, which promises faster delivery and better quality.
- Endava PLC (DAVA) has a strong partnership with OpenAI, leading to a pipeline of opportunities across various industries.
- Revenue for the quarter decreased by 5.9% year-over-year, indicating a decline in financial performance.
- The company reported a loss before tax of GBP7.2 million, compared to a profit in the same period last year.
- Adjusted PBT margin decreased significantly from 11.2% to 5.8%, impacted by investments in AI and next-gen talent.
- Revenue from the 10 largest clients decreased, with a notable 7.9% year-over-year decline in average spend per client.
- The company faces ongoing FX headwinds, particularly from the weakening US dollar, affecting revenue growth.
Good day and welcome to the Endava second quarter 2026 results. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Laurence Madsen, Head of Investor Relations and ESG. Please go ahead.
Thank you. Good afternoon everyone, and welcome to Endava second quarter of our fiscal year 2026 conference call. As a reminder, this conference call is being recorded. Joining me today are John Cotterell, Endava's Chief Executive Officer, and Mark Thurston, Endava's Chief Financial Officer.
Before we begin, a quick reminder to our listeners, our presentation and our accompanying remarks today include forward-looking statements, including but not limited to statements regarding our guidance for Q3 fiscal year 2026 and for the full fiscal year 2026.
The impact of headwinds facing our industry and business trends in our industry, including with respect to development with AI, enhancement to our technology and offerings, the benefits of our
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