MarketBeat
21 May 2026, 14:08 UTC · 17w ago
Verdict
Headline takes no side. We score DAVA −0.80 across five claims — strongly bearish.
−0.80strongly bearish
More negative than 88% of ticker scores this week
What the story claims
5 claims · scored −1 bearish … +1 bullish
Endava reported an 8.4% year-over-year revenue decline and lowered its fourth-quarter outlook due to delayed client decisions and longer sales cycles.
So whatRevenue contraction and downgraded guidance indicate fundamental weakness in demand and poor near-term growth prospects.
More negative than 99% of claims this week
Adjusted profit before tax margin collapsed to 1.8% from 12.6% year-over-year, driven by higher go-to-market costs and increased bench capacity.
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Scored by the NIS engine · methodology.
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More negative than 98% of claims this week
The company recognized a non-cash goodwill impairment charge of £364.6 million, contributing to a total pre-tax loss of £372 million for the quarter.
More negative than 91% of claims this week
AI-driven business grew to account for 15% of total revenue, up from 5% in the prior year, with higher margins than traditional digital transformation work.
More positive than 76% of claims this week
Adjusted free cash flow turned negative (£-3.1 million) while borrowings increased to £195.8 million, primarily to fund share repurchases.
So whatNegative cash flow combined with rising debt to support buybacks creates a precarious liquidity profile during a period of revenue decline.
More negative than 78% of claims this week
Which stocks this story touches
More negative than 88% of ticker scores this week
Reported weaker fiscal third quarter, lowered future outlook, and a significant pre-tax loss including a large goodwill impairment charge.
More positive than 49% of ticker scores this week
Announced a collaboration with Endava focused on next-generation payments and immersive experiences.
More positive than 49% of ticker scores this week
Its Cloud AI Agent ecosystem program is generating engagements for Endava across multiple regions.
More positive than 44% of ticker scores this week
Partnering with Endava to modernize and expand its Tyl payments acceptance platform.
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1h ago
More positive than 39% of relationship scores this week
[a_to_b] Endava partnered with NatWest Group's Tyl to modernize its payments acceptance platform.
More positive than 18% of relationship scores this week
[mutual] Endava participates in the Google Cloud AI Agent ecosystem program.
−30.3%
Price agrees with the score
$2.79 vs $4.00 close before publication (May 20) · not market-adjusted
DAVA chart →
