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Endava plc (DAVA): BCG Matrix [Dec-2025 Updated] |
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Endava plc (DAVA) Bundle
You're looking for a clear, actionable breakdown of Endava plc's (DAVA) portfolio as of late 2025, and the BCG Matrix is defintely the right tool for that. Here is the quick math on where the company is allocating its resources and where the growth is-or isn't. We see explosive potential in Healthcare, which shot up 103.8%, sitting alongside stable giants like the UK segment, which still pulls in 33% of Q4 revenue, but honestly, you've got clear trouble spots, like the TMT vertical shrinking by 13.2%, and big question marks like Payments seeing a 19.0% Q4 drop, even as FY2026 guidance implies a near-term revenue decline. Dive in to see exactly where Endava plc needs to invest, hold, or divest right now.
Background of Endava plc (DAVA)
You're looking to map out Endava plc (DAVA) for a BCG analysis, so let's ground ourselves in what the company actually did through its last full fiscal year and into the current one. Endava plc is a technology-driven business transformation group. They focus on an AI-native approach, blending cutting-edge technology with deep industry knowledge to help clients from the initial idea all the way through to product launch. Honestly, they position themselves as a partner for digital transformation, not just a vendor.
The company's service portfolio is quite broad, covering things like cloud delivery, data analysis, software engineering, test automation, and technology consulting. They've built their delivery around a framework they call TEAM Enterprise Agile Scaling (TEAS). Endava plc serves a diverse set of industries, including payments, insurance, banking and capital markets, technology, media, telecommunications, healthcare, and retail. As of June 30, 2025, they had 11,479 people helping clients across Europe, the Americas, Asia Pacific, and the Middle East.
Looking at the full fiscal year 2025, which ended June 30, 2025, Endava plc reported total revenue of £772.3 million, which was up 4.3% year-over-year, or 6.3% in constant currency. That's solid top-line growth, though it shows some deceleration compared to prior periods. Profit before tax for the full year came in at £24.1 million, a dip from the £27.0 million reported the year before. Their adjusted profit before tax was £82.1 million, representing 10.6% of revenue.
The near-term picture, based on the most recent data, shows some headwinds. For the first quarter of fiscal year 2026, covering the three months ended September 30, 2025, revenue was £178.2 million, marking an 8.6% year-over-year decline. This led to a reported loss before tax of £(8.5) million for that quarter, although adjusted profit before tax was still £9.9 million. The CEO noted that this Q1 FY2026 performance was impacted by unexpected client credits and non-conversion of some pipeline opportunities, which is definitely something to watch.
Client concentration metrics show that as of June 30, 2025, the number of clients generating over £1 million in rolling twelve-month revenue was 133, down from 146 the previous year. Still, the top 10 clients made up 37% of Q4 FY2025 revenue, slightly up from 34% the year prior. The company is making a clear push on AI; they reported that as of June 30, 2025, over half of their people were using AI in client projects, signaling where they are directing their immediate development efforts.
Endava plc (DAVA) - BCG Matrix: Stars
You're analyzing the high-momentum areas of Endava plc as of the close of Fiscal Year 2025. The Stars quadrant captures business units operating in markets that are expanding rapidly and where Endava plc holds a strong competitive position. These units demand significant investment to maintain their growth trajectory and market share leadership, but they are the future Cash Cows if the market growth moderates.
The overall performance for the full fiscal year 2025 saw Endava plc report revenue of $\text{£772.3 million$, representing a $\text{4.3}\%$$ year-on-year increase, or $\text{6.3}%$ revenue increase at constant currency. The focus here is on the segments showing the most dynamic growth and market penetration, which consume cash to fuel their expansion.
The key indicators for these Star segments are laid out below, showing the high-growth nature that defines this quadrant:
- Healthcare Vertical: Reported an explosive revenue growth of $\text{103.8}% in FY2025, clearly driven by its AI-driven platforms.
- Banking and Capital Markets (BCM): Showed strong growth of $\text{37.4}% in FY2025, securing its position as a top revenue segment at $\text{20}%$ of total FY2025 revenue.
- AI-Native Transformation Services: This strategic pivot saw over $\text{50}%$ of the workforce now using AI in client projects, signaling deep market adoption.
- Large, Strategic Deals: Endava plc exited FY2025 with its highest ever quarterly order book, which signals strong future high-value revenue streams.
To give you a clearer picture of how these high-growth areas stack up against the overall business performance for FY2025, here's a quick comparison of the major verticals:
| Vertical | FY2025 Revenue Contribution | Reported Growth Rate (as per scenario) |
| Healthcare Vertical | $\text{12}\%$ | $\text{103.8}% |
| Banking and Capital Markets (BCM) | $\text{20}% | $\text{37.4}% |
| Payments | $\text{19}\%$ | Not specified |
| TMT | $\text{19}\%$ | Not specified |
The $\text{BCM$ segment, contributing $\text{20}%$ to the $\text{£772.3$ million total revenue for the year, is a mature leader in a still-growing market, fitting the Cash Cow profile if growth slows, but its current $\text{37.4}\%$$ growth keeps it firmly in Star territory. The Healthcare vertical's $\text{103.8}\%$$ growth rate, however, suggests a market that is still in a hyper-growth phase, requiring maximum investment to capture share.
The commitment to becoming AI-native is a key driver for these Stars. Honestly, seeing over $\text{50}%$ of the workforce actively using AI in client engagements is a strong indicator of market leadership in this emerging space. This investment in capability is what underpins the record order book seen at year-end. If onboarding takes 14+ days, churn risk rises, but the high order book suggests strong initial client commitment.
Finance: draft 13-week cash view by Friday.
Endava plc (DAVA) - BCG Matrix: Cash Cows
You're looking at the segments of Endava plc (DAVA) that are funding the rest of the portfolio, the ones with high market share in mature areas. These units generate more cash than they need for maintenance, which is exactly what a Cash Cow should do. Let's look at the numbers that define these steady earners for the fiscal year ended June 30, 2025.
The United Kingdom (UK) Geographic Segment fits this profile well, representing a stable, mature market base that contributed exactly 33% of Endava plc's revenue in the fourth quarter of fiscal year 2025. This segment provides a reliable, though perhaps not rapidly growing, stream of income. It's the bedrock you depend on when growth elsewhere is uncertain; a defintely solid foundation.
Core Digital Engineering Services is the established, profitable foundation here. For the full fiscal year 2025, this core capability delivered £82.1 million in Adjusted Profit Before Tax. That profit represented an 10.6% margin on total fiscal year 2025 revenue of £772.3 million. This high profitability in a segment with established market leadership is the hallmark of a Cash Cow.
Here's a quick view of the cash generation supporting the entire Endava plc structure from its mature operations in FY2025:
| Metric | Value (FY2025) | Context |
|---|---|---|
| Total Revenue | £772.3 million | Total top-line for the fiscal year |
| Adjusted Profit Before Tax | £82.1 million | Total profit before tax adjustments |
| Net Cash from Operating Activities | £52.8 million | Cash generated from core business operations |
| Adjusted Free Cash Flow | £48.7 million | Cash available after necessary operating expenses |
The Enterprise Agile Delivery (TEAM) framework is designed to lock in that high market share. It's a proprietary, repeatable delivery model that helps Endava plc maintain long-term relationships with large, sticky clients. These relationships mean lower customer acquisition costs and more predictable revenue streams, allowing the company to 'milk' the gains passively with minimal promotional spend.
Also, consider the North America (NA) Segment. While the UK is the mature market example, NA provides the sheer scale, contributing the largest portion of revenue at 38% of Q4 FY2025 revenue. This large base ensures high volume, which, when combined with the high-margin services typical of Cash Cows, translates directly into substantial cash flow for the enterprise.
The cash flow generated by these stable units is crucial for funding other parts of the business. Specifically, the cash flow from these high-share, low-growth areas helps to:
- Cover administrative costs for Endava plc.
- Fund research and development efforts.
- Service corporate debt, which stood at £180.9 million at June 30, 2025.
- Support share repurchase programs, with $38.8 million remaining authorization as of August 29, 2025.
Endava plc (DAVA) - BCG Matrix: Dogs
Dogs, are units or products with a low market share and low growth rates. They frequently break even, neither earning nor consuming much cash. Dogs are generally considered cash traps because businesses have money tied up in them, even though they bring back almost nothing in return. These business units are prime candidates for divestiture.
For Endava plc (DAVA) as of fiscal year 2025, the units falling into the Dogs quadrant are characterized by low market share within their segments and, critically, negative or near-zero growth, indicating they are not contributing meaningfully to overall growth or cash generation. Management focus here shifts to minimization and potential exit.
Technology, Media, and Telecommunications (TMT) Vertical
The TMT vertical is showing clear signs of being a Dog, evidenced by a significant year-over-year contraction in the segment's contribution to the top line. Revenue decreased by 13.2% in FY2025. This segment's share of total revenue fell to 19% in FY2025, down from 23% in the prior year, suggesting either a severe market slowdown specific to Endava plc's offerings in this space or a substantial loss of competitive positioning. With total FY2025 revenue at £772.3 million, the TMT segment's revenue was approximately £146.74 million based on the reported 19% share.
Mobility Vertical
The Mobility vertical also demonstrates Dog characteristics, with revenue declining by 11.7% in FY2025. This contraction reflects what management has noted as client spending recalibration within that sector. The Mobility segment represented 8% of total FY2025 revenue, down from 10% in the prior year. This segment contributed roughly £61.78 million to the total FY2025 revenue of £772.3 million. The low market share and negative growth trajectory make this unit a candidate for strategic review.
Client Base Contraction
The intentional management strategy to prune the low-value client base further solidifies the presence of Dog-like characteristics across a portion of the business portfolio. Management is actively reducing exposure to the long tail of small clients, which is a classic strategy for dealing with low-share, low-growth units that consume disproportionate administrative resources. This deliberate reduction led to a drop in total clients from 656 to 619.
The performance metrics for these challenged areas in FY2025 are summarized below:
| Vertical/Group | FY2025 Revenue Change | FY2025 Revenue Share | Prior Year Revenue Share | Approximate FY2025 Revenue (GBP) |
| TMT | -13.2% | 19% | 23% | £146.74 million |
| Mobility | -11.7% | 8% | 10% | £61.78 million |
Dogs are units or products that should be avoided and minimized. Expensive turn-around plans usually do not help. Endava plc's actions suggest an alignment with this principle by actively reducing the client base associated with this quadrant.
Key indicators pointing to the Dog classification include:
- TMT revenue decreased by 13.2% in FY2025.
- Mobility revenue declined by 11.7% in FY2025.
- Total clients reduced from 656 to 619 due to strategic pruning.
- TMT's share of revenue fell by 400 basis points (from 23% to 19%).
- Mobility's share of revenue fell by 200 basis points (from 10% to 8%).
The overall FY2025 revenue for Endava plc was £772.3 million, a 4.3% increase year-over-year, but the performance of these specific segments dragged down the overall growth profile, tying up capital that could be better deployed elsewhere. You're looking at segments where the market share is shrinking while the growth rate is negative; that's the textbook definition of a Dog. Finance: draft 13-week cash view by Friday.
Endava plc (DAVA) - BCG Matrix: Question Marks
You're looking at the parts of Endava plc (DAVA) that are in high-growth areas but haven't yet secured a dominant market position. These are the units that burn cash now, hoping to become tomorrow's Stars. For Endava plc, these Question Marks require careful capital allocation-invest heavily or divest.
Payments Vertical: A Segment Under Pressure
The Payments vertical represents a significant portion of the business, accounting for 19% of Endava plc's total revenue for the full fiscal year 2025. However, this segment shows signs of contraction, which is a classic indicator of a potential Dog or a Question Mark needing immediate attention. Specifically, the segment experienced a 19.0% year-over-year decrease in revenue for the fourth quarter of fiscal year 2025, according to the data provided. This sharp decline in a key vertical, despite the overall company achieving £772.3 million in revenue for FY2025, suggests low market share capture or significant competitive pressure within that specific area.
Here's a look at the vertical's revenue contribution shift:
| Metric | Q4 FY2025 Share | Q4 FY2024 Share |
| Payments Vertical Revenue Share | 17% | 19% |
The CEO noted that the company is intentionally reducing the long tail of small clients, which had a small negative impact on revenue, particularly in the Payments vertical. This strategic pruning is designed to improve focus, but it contributes to the immediate cash drain associated with Question Marks.
New AI-Native Platforms: High Investment, Unproven Returns
Endava plc is clearly positioning for future growth by heavily investing in AI-native capabilities, exemplified by platforms like Dava.Flow and Dava.Rise. The market for AI-driven transformation is high-growth, fitting the first criterion for a Question Mark. The company is making strides, with over half of its people now using AI in projects, marking progress toward becoming AI-native. Dava.Rise, launched in November 2025, is specifically designed to connect high-potential scale-ups with enterprises to fast-track innovation. Still, the revenue conversion and scalability of these new, heavily invested platforms remain unproven in the financial results, meaning they currently consume cash without guaranteed returns.
- Dava.Rise launched to connect scale-ups with enterprises.
- Over half of Endava plc personnel use AI in projects.
- Partnership with OpenAI is deemed strategic.
Overall Near-Term Growth and Conversion Headwinds
The overall outlook for Endava plc reflects the uncertainty surrounding these Question Marks. The guidance for the full fiscal year 2026 projects revenue in the range of £750.0 million to £765.0 million. This translates to a constant currency revenue change of between (1.5)% and 0.5% year-over-year. This near-term projection of a potential decline, even a slight one, shows that the high-growth investments haven't yet translated into immediate top-line acceleration, forcing the company to manage a period of low returns relative to investment.
This environment is compounded by client behavior. The first quarter of fiscal year 2026 saw results lower than anticipated because certain non-large strategic pipeline opportunities did not convert into revenue as expected. This points directly to the second characteristic of a Question Mark: low market share conversion despite a strong pipeline. The strategy of securing larger, longer-term deals, while potentially stabilizing, is also noted to involve longer sales cycles, which slows the immediate conversion of that strong pipeline into recognized revenue.
Here's how the near-term financial picture looks:
| Metric | Guidance/Value | Context |
| FY2026 Revenue Guidance Low End | £750.0 million | Implies a constant currency decline of up to 1.5%. |
| FY2026 Revenue Guidance High End | £765.0 million | Implies a constant currency growth of up to 0.5%. |
| Q1 FY2026 Revenue Miss Reason | Non-large strategic pipeline opportunities | Did not convert into revenue as anticipated. |
| FY2025 Payments Vertical Share | 19% | Large segment facing revenue contraction. |
You need to watch the conversion rate on those large, strategic deals closely. Finance: draft 13-week cash view by Friday.
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