Previously reported results for several periods should no longer be relied on. Endava will restate its 2026 results.
Endava will restate its 2026 financial results due to accounting errors in customer and supplier agreements, impacting revenue. The company identified material weaknesses in internal controls and announced leadership changes, including the retirement of its CEO. Endava expects to file its 2026 Annual Report late and is discussing the impact on its revolving credit facility with lenders.
How this was made
The 30-second read
Why it matters
The company expects revenue adjustments for fiscal 2026, will not rely on previously issued results for multiple affected periods, anticipates reporting one or more material weaknesses in internal control over financial reporting, and is delaying its 2026 Annual Report filing while assessing revolving credit facility covenant compliance.
Market read
Traders should focus on restatement magnitude, expected material weakness disclosure, and whether lender discussions lead to covenant waivers or amendments, alongside the delayed audited filing timeline.
What to watch
The article notes the investigation is nearing conclusion and management is already reversing or reattributing revenue for certain transactions; the magnitude and final auditor conclusions could be smaller than preliminary estimates, and lender discussions may resolve covenant concerns without major concessions.
Background
Endava disclosed an audit committee investigation tied to outside auditors’ concerns about accounting treatment of certain customer and supplier agreements in fiscal 2026, with remedial actions underway.
Market effects
Highlights governance and accounting-control risk that can spill over to other IT services firms with similar contract structures and revenue recognition complexity.
US-listed investors may reprice audit and restatement risk across foreign private issuers filing 20-Fs.
Could modestly affect sentiment toward cross-border software and IT services issuers facing SEC audit scrutiny.
Counterpoint
If the restatement is largely limited to specific customer-supplier agreement accounting and remediation is credible, the long-term operating outlook may be less impaired than the headline suggests.
Key entities
- companyEndava
Subject of the restatement, internal control remediation, and leadership changes following an audit committee investigation.
- board_committeeAudit Committee (Endava Board)
Conducted the investigation with outside counsel and determined certain agreement accounting was incorrect.
- regulatorSEC
Will receive a Notification of Late Filing under Rule 12b-25 and the delayed 20-F once completed.
- creditorsRevolving credit facility lenders
Being consulted regarding potential covenant compliance impact from the restatement.
- executiveRob Machin
Appointed Interim CEO effective November 2, 2026, amid organizational changes.
