Endava plc

What they do

Endava earns revenue primarily by billing clients for technology professionals on time-and-materials and fixed-price contracts. The company delivers services across the full software development lifecycle, from consultancy and user experience design to engineering, testing and managed services. It operates through subsidiaries across Europe, North America, and other regions, with a significant delivery footprint in Central and Eastern Europe.

Revenue drivers

• Payments — The payments industry vertical is a core revenue source, serving clients with digital payment platforms and related software engineering.
• Banking and Capital Markets (BCM) — BCM is another major vertical, providing services to banks, capital markets firms and financial institutions.
• Technology, Media and Telecom (TMT) — TMT clients represent a significant portion of revenue, including technology companies, media organizations and telecom operators.
• Insurance, Mobility, Healthcare and Other — These remaining verticals (Insurance, Mobility, Healthcare, and other industries) contribute meaningfully to overall revenue, with Insurance and Mobility being notable segments.

Recent performance

In the fiscal year ended June 30, 2025, Endava reported revenue growth, with North America and Europe being the largest geographic markets. The company continued to see demand for digital transformation services across its verticals. Profitability metrics were affected by acquisition-related charges and share-based compensation. Endava completed the acquisition of GalaxE, which contributed to revenue and resulted in a measurement period adjustment. The company also recorded a deferred tax asset adjustment related to GalaxE. Detailed financial figures for fiscal 2025 are not fully excerpted in the provided data.

Strategy

Endava's strategy focuses on expanding its client base and deepening relationships in key verticals such as payments, banking, and technology. The company pursues acquisitions, like GalaxE, to enhance capabilities and market reach. It invests in its people and delivery centers to support growth. Endava also emphasizes long-term partnerships and multi-year contracts. Management continues to prioritize operational efficiency and margin expansion.

Risks

• Customer concentration — Endava's revenue is concentrated among a limited number of key customers, and the loss of a major client could significantly reduce revenue.
• Acquisition integration risk — The integration of acquired businesses such as GalaxE may not achieve expected synergies and could disrupt operations.
• Macroeconomic and geopolitical uncertainty — Economic downturns or geopolitical instability in regions where Endava operates could reduce client spending on IT services.
• Talent and wage inflation — Endava's business depends on attracting and retaining skilled technology professionals, and rising wages could pressure margins.

Outlook

Management expects continued demand for digital transformation services, though macroeconomic conditions may impact client spending. The company plans to leverage its acquisition of GalaxE to expand in North America and other markets. Endava remains focused on delivering long-term growth and improving profitability. Specific financial guidance for fiscal 2026 is not provided in the excerpts.