EX-99.1
Published on February 19, 2026
 | Q2 FY2026 | |||||||
ENDAVA ANNOUNCES SECOND QUARTER FISCAL YEAR 2026 RESULTS
Q2 FY2026
5.9% Year on Year Revenue Decline to £184.1 million
5.1% Revenue Decline at Constant Currency
Diluted EPS £(0.13) compared to £0.11 in the prior year comparative period
Adjusted Diluted EPS £0.16 compared to £0.30 in the prior year comparative period
London, U.K. – Endava plc (NYSE: DAVA) ("Endava" or the "Company"), the technology-driven business transformation group whose AI-native approach combines cutting edge technology with deep industry expertise, today announced results for the three months ended December 31, 2025 ("Q2 FY2026").
"Over the past several quarters we have been investing heavily in our pivot towards AI to establish Endava as an AI leader. These investments have encompassed recruitment and training of NextGen Talent, introducing a shift towards becoming AI Native, building our Partner ecosystem and evolving our engagement strategy. I would like to flag some highlights of the quarter:
•Revenue in Q2FY26 rose to £184.1 million, representing sequential growth of 3.3% compared to £178.2 in Q1FY26.
•We are seeing strong initial interest with clients on Dava.Flow, our AI-native engagement lifecycle
•We continued to expand our network of strategic partners and broadened several existing relationships, further extending our reach.
•A PayNet-NETS joint venture, recently appointed as Nexus Technical Operator by Nexus Global Payments, has selected Endava to design and build its cloud-native cross-border payment switch on AWS, underscoring our depth in the Payment vertical.
We believe we are building the operational agility required to achieve sustainable, long-term growth," said John Cotterell, Endava's CEO.
SECOND QUARTER FISCAL YEAR 2026 FINANCIAL HIGHLIGHTS:
•Revenue for Q2 FY2026 was £184.1 million, a decline of 5.9% compared to £195.6 million in the same period in the prior year.
•Revenue decline at constant currency (a non-IFRS measure)* was 5.1% for Q2 FY2026.
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| Q2 FY2026 | |||||||
•Loss before tax for Q2 FY2026 was £(7.2) million, compared to profit before tax of £2.5 million in the same period in the prior year.
•Adjusted profit before tax (a non-IFRS measure)* for Q2 FY2026 was £10.7 million, or 5.8% of revenue, compared to £21.8 million, or 11.2% of revenue, in the same period in the prior year.
•Loss for the period was £(6.9) million, resulting in diluted loss per share of £(0.13), compared to profit for the period of £6.9 million and diluted earnings per share ("EPS") of £0.11 in the same period in the prior year.
•Adjusted profit for the period (a non-IFRS measure)* was £8.6 million, resulting in adjusted diluted EPS (a non-IFRS measure)* of £0.16, compared to adjusted profit for the period of £17.9 million and adjusted diluted EPS of £0.30 in the same period in the prior year.
CASH FLOW:
•Net cash from operating activities was £28.2 million in Q2 FY2026, compared to net cash from operating activities of £32.0 million in the same period in the prior year.
•Adjusted free cash flow (a non-IFRS measure)* was £20.1 million in Q2 FY2026, compared to £31.6 million in the same period in the prior year.
•At December 31, 2025, Endava had cash and cash equivalents of £68.5 million, compared to £59.3 million at June 30, 2025.
* Definitions of the non-IFRS measures used by the Company and a reconciliation of such measures to the related IFRS financial measure can be found under the sections below titled “Non-IFRS Financial Information” and “Reconciliation of IFRS Financial Measures to Non-IFRS Financial Measures.”
OTHER METRICS FOR THE QUARTER ENDED DECEMBER 31, 2025:
•Headcount totaled 11,385 at December 31, 2025, with an average of 10,326 operational employees in Q2 FY2026, compared to a headcount of 11,668 at December 31, 2024 and an average of 10,456 operational employees in the same period in the prior year.
•Number of clients with over £1 million in revenue on a rolling twelve-month basis was 135 at December 31, 2025 compared to 141 clients at December 31, 2024.
•Top 10 clients accounted for 35% of revenue in Q2 FY2026, compared to 36% in the same period in the prior year.
•By geographic region, 40% of revenue was generated in North America, 23% was generated in Europe, 31% was generated in the United Kingdom and 6% was generated
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| Q2 FY2026 | |||||||
in the rest of the world in Q2 FY2026. This compares to 39% in North America, 24% in Europe, 32% in the United Kingdom and 5% in the Rest of the World in the same period in the prior year.
•By industry vertical, 19% of revenue was generated from Payments, 22% from BCM, 9% from Insurance, 16% from TMT, 9% from Mobility, 12% from Healthcare, and 13% from Other in Q2 FY2026. This compares to 19% from Payments, 19% from BCM, 9% from Insurance, 19% from TMT, 9% from Mobility, 12% from Healthcare, and 13% from Other in the same period in the prior year.
OUTLOOK:
Third Quarter Fiscal Year 2026:
Endava expects revenue will be in the range of £182.0 million to £185.0 million, representing a constant currency revenue decline of between (4.0)% and (2.5)% on a year over year basis. Endava expects adjusted diluted EPS to be in the range of £0.18 to £0.21 per share.
Full Fiscal Year 2026:
Endava expects revenue will be in the range of £736.0 million to £750.0 million, representing a constant currency revenue decline of between (3.5)% and (1.5)% on a year over year basis. Endava expects adjusted diluted EPS to be in the range of £0.80 to £0.86 per share.
This above guidance for the third quarter and full fiscal year 2026 assumes the exchange rates on January 31, 2026 (when the exchange rate was 1 British Pound to 1.37 US Dollar and 1.15 Euro).
Endava is not able, at this time, to reconcile its expectations for the third quarter and full fiscal year 2026 for a rate of revenue growth or decline at constant currency or adjusted diluted EPS to their respective most directly comparable IFRS measures as a result of the uncertainty regarding, and the potential variability of, reconciling items such as share-based compensation expense, amortisation of acquired intangible assets, foreign currency exchange losses / (gains), net, and fair value movement of contingent consideration, as applicable. Accordingly, a reconciliation is not available without unreasonable effort, although it is important to note that these factors could be material to Endava's results computed in accordance with IFRS.
The guidance provided above is forward-looking in nature. Actual results may differ materially. See “Forward-Looking Statements” below.
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| Q2 FY2026 | |||||||
SHARE REPURCHASE PROGRAM:
As of January 31, 2026, the Company had repurchased an aggregate of 8,047,338 American Depositary Shares for $121.9 million under its share repurchase program. As of January 31, 2026, the Company had $28.1 million remaining for repurchase under our Board's share repurchase authorisation.
CONFERENCE CALL DETAILS:
The Company will host a conference call at 8:00 am ET today, February 19, 2026, to review its Q2 FY2026 results. To participate in Endava’s Q2 FY2026 earnings conference call, please dial in at least five minutes prior to the scheduled start time (844) 481-2736 or (412) 317-0665 for international participants, Conference ID: Endava Call.
Investors may listen to the call on Endava’s Investor Relations website at http://investors.Endava.com. The webcast will be recorded and available for replay until Wednesday March 18, 2026.
ABOUT ENDAVA PLC:
Endava is a leading provider of next-generation technology services, dedicated to enabling its clients to accelerate growth, tackle complex challenges and thrive in evolving markets. By combining innovative technologies and deep industry expertise with an AI-native approach, Endava consults and partners with clients to create solutions that drive transformation, augment intelligence and deliver lasting impact. From ideation to production, it supports clients with tailor-made solutions at every stage of their digital transformation, regardless of industry, region or scale.
Endava’s clients span payments, insurance, banking and capital markets, technology, media, telecommunications, healthcare, mobility, retail and consumer goods and more. As of December 31, 2025, 11,385 Endavans are helping clients break new ground across locations in Europe, the Americas, Asia Pacific and the Middle East.
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| Q2 FY2026 | |||||||
NON-IFRS FINANCIAL INFORMATION:
To supplement Endava’s Condensed Consolidated Statements of Comprehensive Income, Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Cash Flows presented in accordance with IFRS, the Company uses non-IFRS measures of certain components of financial performance in this press release. These measures include revenue (decline)/growth rate at constant currency, adjusted profit before tax, adjusted profit for the period, adjusted diluted EPS and adjusted free cash flow.
Revenue (decline)/growth rate at constant currency is calculated by translating revenue from entities reporting in foreign currencies into British Pounds using the comparable foreign currency exchange rates from the prior period. For example, the average currency rates in effect for the fiscal quarter ended December 31, 2024 were used to convert revenue for the fiscal quarter ended December 31, 2025 and the revenue for the comparable prior period.
Adjusted profit before tax ("Adjusted PBT") is defined as the Company’s (loss)/profit before tax adjusted to exclude the impact of share-based compensation expense, amortisation of acquired intangible assets, realised and unrealised foreign currency exchange losses/(gains), net, restructuring costs, exceptional people charges, and fair value movement of contingent consideration, all of which are non-cash items except for realised foreign currency exchange losses/(gains), net and restructuring costs and exceptional people charges. Our Adjusted PBT margin is our Adjusted PBT as a percentage of our total revenue.
Adjusted profit for the period is defined as Adjusted PBT less the adjusted tax charge for the period. The adjusted tax charge is the tax charge adjusted for the tax impact of the adjustments to PBT and the release of the deferred tax liability relating to Romanian withholding tax.
Adjusted diluted EPS is defined as Adjusted profit for the period, divided by weighted average number of shares outstanding - diluted.
Adjusted free cash flow is the Company’s net cash from operating activities, plus grants received, less net purchases of non-current assets (tangible and intangible). Adjusted free cash flow is not intended to be a measure of residual cash available for management's discretionary use since it omits significant sources and uses of cash flow, including mandatory debt repayments and changes in working capital.
Management believes these measures help illustrate underlying trends in the Company's business and uses the measures to establish budgets and operational goals, communicated
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| Q2 FY2026 | |||||||
internally and externally, for managing the Company's business and evaluating its performance. Management also believes the presentation of its non-IFRS financial measures enhances an investor’s overall understanding of the Company’s historical financial performance. The presentation of the Company’s non-IFRS financial measures is not meant to be considered in isolation or as a substitute for the Company’s financial results prepared in accordance with IFRS, and its non-IFRS measures may be different from non-IFRS measures used by other companies. Investors should review the reconciliation of the Company’s non-IFRS financial measures to the comparable IFRS financial measures included below and not rely on any single financial measure to evaluate the Company’s business.
FORWARD-LOOKING STATEMENTS:
This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by the use of terms and phrases such as “believe,” “expect,” "intends," "outlook," “may,” “will,” and other similar terms and phrases. Such forward-looking statements include, but are not limited to, statements regarding our pipeline of potential large opportunities, Endava's business strategies, plans, operations and growth opportunities and Endava's future financial performance, including management's financial outlook for the third quarter and full fiscal year 2026. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated by these forward-looking statements, including, but not limited to: Endava’s ability to achieve its revenue growth goals including as a result of a slower conversion of its pipeline; Endava's expectations of future operating results or financial performance; Endava’s ability to accurately forecast and achieve its announced guidance; Endava's ability to retain existing clients and attract new clients, including its ability to increase revenue from existing clients and diversify its revenue concentration; Endava’s ability to attract and retain highly-skilled IT professionals at cost-effective rates; Endava's ability to successfully identify acquisition targets, consummate acquisitions and successfully integrate acquired businesses and personnel; Endava's ability to penetrate new industry verticals and geographies and grow its revenue in current industry verticals and geographies; Endava’s ability to maintain favorable pricing and utilisation rates to support its gross margin; the effects of increased competition as well as innovations by new and existing competitors in its market; the size of Endava's addressable market and market trends; Endava’s ability to adapt to technological change and industry trends and innovate solutions for its clients; Endava's plans for growth and future operations, including its ability to manage its
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| Q2 FY2026 | |||||||
growth; Endava's ability to effectively manage its international operations, including Endava's exposure to foreign currency exchange rate fluctuations; Endava's future financial performance; the impact of unstable market, economic, and global conditions, as well as other risks and uncertainties discussed in the “Risk Factors” section of Endava's Annual Report on Form 20-F for the year ended June 30, 2025 filed with the SEC on September 4, 2025 and in other filings that Endava makes from time to time with the SEC. In addition, the forward-looking statements included in this press release represent Endava’s views and expectations as of the date hereof and are based on information currently available to Endava. Endava anticipates that subsequent events and developments may cause its views to change. Endava specifically disclaims any obligation to update the forward-looking statements in this press release except as required by law. These forward-looking statements should not be relied upon as representing Endava’s views as of any date subsequent to the date hereof.
INVESTOR CONTACT:
Endava plc
Laurence Madsen, Head of Investor Relations
Investors@endava.com
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| Q2 FY2026 | |||||||
| CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | Six Months Ended December 31 | Three Months Ended December 31 | ||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||
| £’000 | £’000 | £’000 | £’000 | |||||||||||
| REVENUE | 362,285 | 390,641 | 184,098 | 195,589 | ||||||||||
| Cost of sales | ||||||||||||||
| Direct cost of sales | (273,839) | (283,066) | (139,800) | (143,546) | ||||||||||
| Allocated cost of sales | (13,180) | (13,898) | (6,696) | (7,025) | ||||||||||
| Total cost of sales | (287,019) | (296,964) | (146,496) | (150,571) | ||||||||||
| GROSS PROFIT | 75,266 | 93,677 | 37,602 | 45,018 | ||||||||||
| Selling, general and administrative expenses | (81,131) | (87,314) | (40,556) | (43,345) | ||||||||||
| OPERATING (LOSS) / PROFIT | (5,865) | 6,363 | (2,954) | 1,673 | ||||||||||
| Net finance (expense) / income | (9,833) | 354 | (4,272) | 831 | ||||||||||
| (LOSS) / PROFIT FOR THE PERIOD BEFORE TAX | (15,698) | 6,717 | (7,226) | 2,504 | ||||||||||
| Tax on (loss) / profit on ordinary activities | 635 | 2,381 | 320 | 4,347 | ||||||||||
| (LOSS) / PROFIT FOR THE PERIOD | (15,063) | 9,098 | (6,906) | 6,851 | ||||||||||
| OTHER COMPREHENSIVE INCOME | ||||||||||||||
| Items that may be reclassified subsequently to profit or loss: | ||||||||||||||
| Exchange differences on translating foreign operations and net investment hedge impact | 5,874 | (13,813) | (719) | 9,527 | ||||||||||
| Total comprehensive (expense) / income for the year attributable to the equity holders of the Company | (9,189) | (4,715) | (7,625) | 16,378 | ||||||||||
| (LOSS) / EARNINGS PER SHARE: | ||||||||||||||
| Weighted average number of shares outstanding - Basic | 52,957,541 | 59,269,752 | 52,877,958 | 59,488,389 | ||||||||||
| Weighted average number of shares outstanding - Diluted | 52,957,541 | 59,472,250 | 52,877,958 | 59,628,436 | ||||||||||
| Basic (Loss) / EPS (£) | (0.28) | 0.15 | (0.13) | 0.12 | ||||||||||
| Diluted (Loss) / EPS (£) | (0.28) | 0.15 | (0.13) | 0.11 | ||||||||||
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| Q2 FY2026 | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | December 31, 2025 | June 30, 2025 | December 31, 2024 (1) | ||||||||
| £’000 | £’000 | £’000 | |||||||||
| ASSETS - NON-CURRENT | |||||||||||
| Goodwill | 478,156 | 473,296 | 500,958 | ||||||||
| Intangible assets | 99,677 | 100,890 | 117,095 | ||||||||
| Property, plant and equipment | 14,809 | 14,177 | 16,603 | ||||||||
| Lease right-of-use assets | 41,261 | 41,515 | 47,459 | ||||||||
| Deferred tax assets | 22,068 | 19,030 | 21,466 | ||||||||
| Financial assets and other receivables | 6,096 | 5,009 | 9,005 | ||||||||
| TOTAL | 662,067 | 653,917 | 712,586 | ||||||||
| ASSETS - CURRENT | |||||||||||
| Trade and other receivables | 196,607 | 209,523 | 190,059 | ||||||||
| Corporation tax receivable | 1,082 | 12,865 | 10,072 | ||||||||
| Financial assets | 117 | 121 | 118 | ||||||||
| Cash and cash equivalents | 68,484 | 59,345 | 60,065 | ||||||||
| TOTAL | 266,290 | 281,854 | 260,314 | ||||||||
| TOTAL ASSETS | 928,357 | 935,771 | 972,900 | ||||||||
| LIABILITIES - CURRENT | |||||||||||
| Lease liabilities | 13,815 | 13,661 | 14,457 | ||||||||
| Trade and other payables | 91,827 | 96,827 | 106,263 | ||||||||
| Corporation tax payable | 3,422 | 7,757 | 6,832 | ||||||||
| Contingent consideration | 74 | 100 | 3,577 | ||||||||
| Deferred consideration | 2,487 | 3,376 | 4,170 | ||||||||
| TOTAL | 111,625 | 121,721 | 135,299 | ||||||||
| LIABILITIES - NON CURRENT | |||||||||||
| Borrowings | 202,745 | 180,943 | 123,669 | ||||||||
| Lease liabilities | 32,888 | 33,448 | 37,711 | ||||||||
| Deferred tax liabilities | 14,203 | 15,183 | 19,974 | ||||||||
| Tax liabilities related to Pilar II Income tax | 584 | 584 | — | ||||||||
| Contingent consideration | — | 401 | 1,155 | ||||||||
| Deferred consideration | 278 | — | — | ||||||||
| Other liabilities | 599 | 552 | 377 | ||||||||
| TOTAL | 251,297 | 231,111 | 182,886 | ||||||||
| EQUITY | |||||||||||
| Share capital | 1,061 | 1,123 | 1,189 | ||||||||
| Share premium | 21,280 | 21,280 | 21,280 | ||||||||
| Merger relief reserve | 63,440 | 63,440 | 63,440 | ||||||||
| Retained earnings | 536,155 | 575,428 | 602,688 | ||||||||
| Other reserves | (54,418) | (60,369) | (33,872) | ||||||||
| Treasury shares | (2,078) | (17,958) | — | ||||||||
| Investment in own shares | (5) | (5) | (10) | ||||||||
| TOTAL | 565,435 | 582,939 | 654,715 | ||||||||
| TOTAL LIABILITIES AND EQUITY | 928,357 | 935,771 | 972,900 | ||||||||
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| Q2 FY2026 | |||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | Six Months Ended December 31 | Three Months Ended December 31 | ||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||
| £’000 | £’000 | £’000 | £’000 | |||||||||||
| OPERATING ACTIVITIES | ||||||||||||||
| (Loss) / Profit for the period | (15,063) | 9,098 | (6,906) | 6,851 | ||||||||||
| Income tax charge | (635) | (2,381) | (320) | (4,347) | ||||||||||
| Non-cash adjustments | 37,665 | 46,207 | 17,673 | 22,614 | ||||||||||
| Tax received / (paid) | 3,894 | (3,786) | (1,787) | (2,466) | ||||||||||
| Research & Development Credit received | 3,871 | — | 3,774 | — | ||||||||||
| Net changes in working capital | 10,678 | (12,716) | 15,724 | 9,396 | ||||||||||
| Net cash from operating activities | 40,410 | 36,422 | 28,158 | 32,048 | ||||||||||
| INVESTING ACTIVITIES | ||||||||||||||
| Purchase of non-current assets (tangibles and intangibles) | (11,127) | (1,571) | (8,037) | (436) | ||||||||||
| Proceeds from disposal of non-current assets | 63 | 36 | 16 | — | ||||||||||
| Payment for acquisition of subsidiary, net of cash acquired | (3,586) | (5,900) | (99) | (5,832) | ||||||||||
| Interest received | 1,249 | 720 | 555 | 353 | ||||||||||
| Net cash used in investing activities | (13,401) | (6,715) | (7,565) | (5,915) | ||||||||||
| FINANCING ACTIVITIES | ||||||||||||||
| Proceeds from borrowings | 43,000 | 10,000 | 33,000 | 10,000 | ||||||||||
| Repayment of borrowings | (23,330) | (30,842) | (23,330) | (23,842) | ||||||||||
| Proceeds from sublease | 53 | 64 | 30 | 34 | ||||||||||
| Repayment of lease liabilities | (6,583) | (6,159) | (3,685) | (3,066) | ||||||||||
| Repayment of lease interest | (855) | (989) | (438) | (482) | ||||||||||
| Grant received | 10 | 274 | 10 | |||||||||||
| Interest and debt financing costs paid | (5,162) | (4,282) | (2,694) | (2,030) | ||||||||||
| Payment for repurchase of own shares | (24,985) | (2,068) | ||||||||||||
| Net cash (used in) / provided by financing activities | (17,852) | (31,934) | 825 | (19,386) | ||||||||||
| Net change in cash and cash equivalents | 9,157 | (2,227) | 21,418 | 6,747 | ||||||||||
| Cash and cash equivalents at the beginning of the period | 59,345 | 62,358 | 47,225 | 52,811 | ||||||||||
| Effects of exchange rate changes on cash and cash equivalents | (18) | (66) | (159) | 507 | ||||||||||
| Cash and cash equivalents at the end of the period | 68,484 | 60,065 | 68,484 | 60,065 | ||||||||||
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| Q2 FY2026 | |||||||
RECONCILIATION OF IFRS FINANCIAL MEASURES TO NON-IFRS FINANCIAL MEASURES
RECONCILIATION OF REVENUE (DECLINE) / GROWTH RATE AS REPORTED UNDER IFRS TO REVENUE (DECLINE) / GROWTH RATE AT CONSTANT CURRENCY:
| Six Months Ended December 31 | Three Months Ended December 31 | |||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||
| REVENUE (DECLINE) / GROWTH RATE AS REPORTED UNDER IFRS | (7.3) | % | 5.0 | % | (5.9 | %) | 6.6 | % | ||||||
| Impact of Foreign exchange rate fluctuations | 1.0 | % | 2.0 | % | 0.8 | % | 2.5 | % | ||||||
| REVENUE (DECLINE) / GROWTH RATE AT CONSTANT CURRENCY | (6.3) | % | 7.0 | % | (5.1 | %) | 9.1 | % | ||||||
RECONCILIATION OF ADJUSTED PROFIT BEFORE TAX AND ADJUSTED PROFIT FOR THE PERIOD:
| Six Months Ended December 31 | Three Months Ended December 31 | |||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||
| £’000 | £’000 | £’000 | £’000 | |||||||||||
| (LOSS) / PROFIT BEFORE TAX | (15,698) | 6,717 | (7,226) | 2,504 | ||||||||||
| Adjustments: | ||||||||||||||
| Share-based compensation expense | 14,176 | 21,965 | 6,496 | 10,944 | ||||||||||
| Amortisation of acquired intangible assets | 10,170 | 12,182 | 5,149 | 6,036 | ||||||||||
| Foreign currency exchange losses / (gains), net | 4,842 | (3,420) | 1,294 | (2,574) | ||||||||||
| Restructuring costs | 6,531 | 5,494 | 4,093 | 5,494 | ||||||||||
| Exceptional people charges | 668 | — | 668 | — | ||||||||||
| Fair value movement of contingent consideration | (169) | (1,871) | 194 | (569) | ||||||||||
| Total adjustments | 36,218 | 34,350 | 17,894 | 19,331 | ||||||||||
| ADJUSTED PROFIT BEFORE TAX | 20,520 | 41,067 | 10,668 | 21,835 | ||||||||||
| (LOSS) / PROFIT FOR THE PERIOD | (15,063) | 9,098 | (6,906) | 6,851 | ||||||||||
| Adjustments: | ||||||||||||||
| Adjustments to (loss) / profit before tax | 36,218 | 34,350 | 17,894 | 19,331 | ||||||||||
| Release of Romanian withholding tax | — | (3,800) | — | (3,800) | ||||||||||
| Tax impact of adjustments | (4,642) | (6,682) | (2,397) | (4,511) | ||||||||||
| ADJUSTED PROFIT FOR THE PERIOD | 16,513 | 32,966 | 8,591 | 17,871 | ||||||||||
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| Q2 FY2026 | |||||||
RECONCILIATION OF ADJUSTED DILUTED EARNINGS PER SHARE:
| Six Months Ended December 31 | Three Months Ended December 31 | |||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||
| £’000 | £’000 | £’000 | £’000 | |||||||||||
| DILUTED (LOSS) / EARNINGS PER SHARE (£) | (0.28) | 0.15 | (0.13) | 0.11 | ||||||||||
| Adjustments: | ||||||||||||||
| Share-based compensation expense | 0.27 | 0.37 | 0.12 | 0.18 | ||||||||||
| Amortisation of acquired intangible assets | 0.19 | 0.20 | 0.10 | 0.10 | ||||||||||
| Foreign currency exchange losses / (gains) net | 0.09 | (0.06) | 0.03 | (0.03) | ||||||||||
| Restructuring costs | 0.12 | 0.09 | 0.08 | 0.09 | ||||||||||
| Exceptional people charges | 0.01 | — | 0.01 | — | ||||||||||
| Fair value movement of contingent consideration | — | (0.02) | — | (0.01) | ||||||||||
| Release of Romanian withholding tax | — | (0.06) | — | (0.06) | ||||||||||
| Tax impact of adjustments | (0.09) | (0.12) | (0.05) | (0.08) | ||||||||||
| Total adjustments | 0.59 | 0.40 | 0.29 | 0.19 | ||||||||||
| ADJUSTED DILUTED EARNINGS PER SHARE (£) | 0.31 | 0.55 | 0.16 | 0.30 | ||||||||||
RECONCILIATION OF NET CASH FROM OPERATING ACTIVITIES TO ADJUSTED FREE CASH FLOW
| Six Months Ended December 31 | Three Months Ended December 31 | |||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||
| £’000 | £’000 | £’000 | £’000 | |||||||||||
| NET CASH FROM OPERATING ACTIVITIES | 40,410 | 36,422 | 28,158 | 32,048 | ||||||||||
| Adjustments: | ||||||||||||||
| Grant received | 10 | 274 | 10 | — | ||||||||||
| Net purchases of non-current assets (tangibles and intangibles) | (11,064) | (1,535) | (8,021) | (436) | ||||||||||
| ADJUSTED FREE CASH FLOW | 29,356 | 35,161 | 20,147 | 31,612 | ||||||||||
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| Q2 FY2026 | |||||||
SUPPLEMENTARY INFORMATION
SHARE-BASED COMPENSATION EXPENSE
| Six Months Ended December 31 | Three Months Ended December 31 | |||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||
| £’000 | £’000 | £’000 | £’000 | |||||||||||
| Direct cost of sales | 9,283 | 15,048 | 4,419 | 7,254 | ||||||||||
| Selling, general and administrative expenses | 4,893 | 6,917 | 2,077 | 3,690 | ||||||||||
| Total | 14,176 | 21,965 | 6,496 | 10,944 | ||||||||||
DEPRECIATION AND AMORTISATION
| Six Months Ended December 31 | Three Months Ended December 31 | |||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||
| £’000 | £’000 | £’000 | £’000 | |||||||||||
| Direct cost of sales | 9,282 | 10,413 | 4,691 | 5,233 | ||||||||||
| Selling, general and administrative expenses | 11,503 | 13,720 | 5,802 | 6,823 | ||||||||||
| Total | 20,785 | 24,133 | 10,493 | 12,056 | ||||||||||
13
| Q2 FY2026 | |||||||
EMPLOYEES, TOP 10 CUSTOMERS AND REVENUE SPLIT
| Six Months Ended December 31 | Three Months Ended December 31 | |||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||
| Closing number of total employees (including directors) | 11,385 | 11,668 | 11,385 | 11,668 | ||||||||||
| Average operational employees | 10,329 | 10,541 | 10,326 | 10,456 | ||||||||||
| Top 10 customers % | 35% | 34% | 35% | 36% | ||||||||||
| Number of clients with > £1m of revenue (rolling 12 months) | 135 | 141 | 135 | 141 | ||||||||||
| Geographic split of revenue % | ||||||||||||||
| North America | 41 | % | 39 | % | 40 | % | 39 | % | ||||||
| Europe | 23 | % | 24 | % | 23 | % | 24 | % | ||||||
| UK | 30 | % | 32 | % | 31 | % | 32 | % | ||||||
| Rest of World (RoW) | 6 | % | 5 | % | 6 | % | 5 | % | ||||||
| Industry vertical split of revenue % | ||||||||||||||
| Payments | 18 | % | 19 | % | 19 | % | 19 | % | ||||||
| Banking and Capital Markets | 22 | % | 18 | % | 22 | % | 19 | % | ||||||
| Insurance | 9 | % | 9 | % | 9 | % | 9 | % | ||||||
| TMT | 17 | % | 20 | % | 16 | % | 19 | % | ||||||
| Mobility | 9 | % | 9 | % | 9 | % | 9 | % | ||||||
| Healthcare | 12 | % | 12 | % | 12 | % | 12 | % | ||||||
| Other | 13 | % | 13 | % | 13 | % | 13 | % | ||||||
14
| Q2 FY2026 | |||||||
FOOTNOTES
(1) Restated to include the effect of revisions arising from provisional to final acquisition accounting for GalaxE.
15