Endava Posts GBP7.2M Q2 Loss, Projects 6% Q4 Revenue Rise
Endava reported a Q2 2026 loss before tax of GBP7.2 million, reversing last year’s profit, as foreign-exchange headwinds and increased investments weighed on performance. It sees robust initial uptake of the Dava.Flow AI engagement platform and forecasts sequential 6% Q4 revenue growth from deal wins and extra working days.
1. Q2 2026 Financial Results
Endava reported a loss before tax of GBP7.2 million for Q2 2026, reversing a profit in the year-ago period as costs rose and foreign-exchange headwinds intensified.
2. Q3 & Q4 Growth Outlook
The company sees underlying revenue growth of around 4% in Q3 despite FX headwinds and fewer working days, and forecasts sequential Q4 growth of approximately 6% driven by increased working days and recent deal wins.
3. AI Investment and Dava.Flow Platform
Endava is heavily investing in AI capabilities, including ramping up talent recruitment and training, and has launched Dava.Flow, an AI-native engagement lifecycle platform showing strong initial client interest and promising faster delivery and improved quality.
4. Margin and FX Impacts
Increased investments in partnerships such as Miro and Cognition are expected to pressure margins by about 3% in the second half, while FX headwinds have a minor 0.5% impact on revenue growth rather than margins.