Endava's Q2 2025: Contradictions Unveiled on Hiring Trends, Revenue Growth, and AI Sales Dynamics

These are the key contradictions discussed in Endava's latest 2025Q2 earnings call, specifically including: Hiring and Headcount Growth Expectations, Visibility into Client Budgets, Revenue Growth Expectations, AI-Driven Sales Elongation, and Revenue and Deal Conversion Trends:



Revenue and Profitability Trends:
- Endava reported revenue of $195.6 million for Q2 FY2025, a 6.6% increase year-on-year, and 9.1% in constant currency.
- Adjusted profit before tax (PBT) was $21.8 million, compared to $22.7 million in the same period last year, with an adjusted PBT margin of 11.2%.
- The growth was driven by strong demand in banking and capital markets, and core modernization projects.

Large Deals and Core Modernization:
- The company focused on securing larger and longer-term deals, with examples like a core modernization project with a leading financial institution in North America.
- This strategy is expected to contribute significantly to future growth as these deals ramp up and continue to expand.

Geographic and Industry Performance:
- North America accounted for 39% of revenue, showing a 32.7% year-over-year growth, driven by the GalaxE acquisition.
- In contrast, revenue from the UK grew by 1.3%, while Europe saw a 0.6% decline, attributed to a slowdown in a client in the telecom, media, and technology (TMT) sector and FX headwinds.

AI and Technology Investments:
- Endava is leveraging AI-enabled capabilities such as Morpheus and Compass to drive client transformations, contributing to a strong pipeline of opportunities.
- The company is focused on integrating Gen AI into its offerings to address customization and demand for enterprise-level AI solutions.