Endava: CFO on leave, an Audit Committee probe and a restatement of fiscal 2026
Endava: CFO on leave, an Audit Committee probe and a restatement of fiscal 2026: a public-record watch file compiled by Falling Shares Intelligence from filings and exchange disclosures, as of 2026-11-08. On 21 September 2026 Endava placed its Chief Financial Officer on administrative leave pending an Audit Committee investigation into accounting for certain customer and supplier agreements and named an interim CFO; its American depositary shares fell by about 24% the next trading day, according to one market commentary.
Auditors raised concerns about customer-and-supplier agreements; within six weeks the company said fiscal 2026 results would be restated, reporting would be late and its leadership would change.
Falling Shares Intelligence, Edited by Wung Thomas, Editor-in-Chief. As of .
Summary
- On 21 September 2026 Endava placed its Chief Financial Officer on administrative leave pending an Audit Committee investigation into accounting for certain customer and supplier agreements and named an interim CFO; its American depositary shares fell by about 24% the next trading day, according to one market commentary.
- On 28 October 2026 Endava said fiscal 2026 results would be restated, that some agreements with counterparties that were both customers and suppliers lacked economic substance or were priced as a single arrangement, and that earlier guidance should no longer be relied on.
- The CFO and General Counsel resigned and the chief executive will retire in October 2027; an interim CEO takes over on 2 November 2026. The company expects to report one or more material weaknesses and will miss the 2 November 2026 Form 20-F deadline.
- The company is assessing the effect of the restatement on covenants under its revolving credit facility. US plaintiff law firms have filed suits and notices. The investigation was described as nearing conclusion.
Key figures
| Share fall, 22 Sep 2026 | -24.4% (Close $2.11 vs $2.79; one commentary, not exchange data) |
|---|---|
| Expected revenue adjustment | 2%-4% of fiscal 2025 revenue (Preliminary, unaudited) |
| Counterparties affected | ~1.5% of customers (Customers that were also suppliers, as of 31 Mar 2026) |
| Cash and equivalents | ~£55 million (Preliminary, as of 30 Sep 2026) |
| Class period alleged | 4 Sep 2025 - 21 Sep 2026 (Plaintiff-firm notices; lead plaintiff deadline 30 Nov 2026) |
The September 2026 announcement
CFO placed on administrative leave
On the Audit Committee's recommendation the board placed the Chief Financial Officer on administrative leave pending an investigation by independent outside counsel for the Audit Committee, opened over concerns about accounting for certain customer and supplier agreements. An AlixPartners executive was named interim CFO. The company said it intended to publish fiscal 2026 results and file its Form 20-F by 2 November 2026. (21 Sep 2026)
Share price falls
The ADS closed at $2.79 before the news and $2.11 the next day (-24.4%), reaching an intraday all-time low of $1.60 on 29 September; on 8 October it was about 31% below the pre-news close. William Blair downgraded the stock to Underperform and Deutsche Bank cut its price target to $2 from $3 on 22 September. (22 Sep - 8 Oct 2026)
The company's findings so far
Why the investigation began
Endava says the investigation was initiated after its external auditors raised concerns about the accounting treatment of certain customer and supplier agreements, and that it is nearing conclusion. (28 Oct 2026)
Agreements lacked economic substance or were a single arrangement
The company says certain fiscal 2026 agreements with counterparties that were both customers and suppliers either lacked economic substance or were negotiated and priced as a single arrangement. These counterparties represent about 1.5% of customers at 31 March 2026. Management also found separate revenue-recognition errors. (28 Oct 2026)
Restatement of fiscal 2026 periods
Results for the three months to 30 September 2025, the three and six months to 31 December 2025 and the three and nine months to 31 March 2026 should no longer be relied upon and will be restated. The preliminary revenue adjustment is about 2% to 4% of prior fiscal 2025 revenue, with non-cash adjustments to goodwill and intangible assets. No changes to fiscal 2025 results are expected. Prior fiscal 2026 guidance should no longer be relied upon. (28 Oct 2026)
Control deficiencies including tone at the top
Management identified control deficiencies, including at the tone at the top, and expects to report one or more material weaknesses in internal control over financial reporting. It plans to reinforce accountability, change accounting procedures, hire finance staff and add governance and training. (28 Oct 2026)
Leadership, filing and financing consequences
Leadership changes
The CFO resigned from the role and the board effective 25 October 2026 and the General Counsel resigned effective 26 October. The chief executive will retire effective 19 October 2027 under his notice period, and an interim CEO takes the role on 2 November 2026. (19 Oct - 2 Nov 2026)
Late Form 20-F and lender discussions
Endava said it would not file the fiscal 2026 Form 20-F by the 2 November 2026 deadline and planned to file a Form 12b-25 late-filing notice. It is assessing the effect of the restatement on financial covenants under its revolving credit facility and is in discussions with lenders. The release does not address any NYSE listing implications. (28 Oct 2026)
Shareholder litigation notices
Several US law firms have announced suits or investigations on behalf of purchasers between 4 September 2025 and 21 September 2026, with a lead-plaintiff deadline of 30 November 2026. (Sep - Nov 2026)
Evidence that cuts the other way
Self-reported scope is limited; remediation under way
The company states no restatement of fiscal 2025 or earlier periods is expected, that the affected counterparties are about 1.5% of customers, and that it has begun planning remediation. The independent investigation was run by outside counsel for the Audit Committee, and the Audit Committee itself determined the accounting for certain agreements was incorrect. (28 Oct 2026)
Standard
This file compiles company filings (Form 6-K) and published reporting about an ongoing Audit Committee investigation at Endava plc. Figures are preliminary and unaudited as the company states. No regulator has announced action as of the date above. Securities-law-firm notices are advertising by plaintiff firms, not findings. Executives are mentioned only by role. This is news coverage for information only, not investment advice.
Right of reply
Endava plc, and anyone connected with the matter, can send corrections or comments to info@fallingshares.com (or directly to the Editor-in-Chief, Wung Thomas, at wungthomas@fallingshares.com). Material responses will be published alongside the relevant entry.