Endava CFO Placed on Leave During Accounting Probe; Shares Drop 25%

Endava placed Chief Financial Officer Mark Thurston on administrative leave on September 21, 2026, following the start of an independent investigation into its accounting practices. The software development firm's stock fell more than 25% on September 22, 2026, as investors reacted to uncertainty regarding the company's financial disclosures.

"We're focused on whether Endava may have to restate its historical financial statements," said Reed Kathrein, the Hagens Berman partner leading the firm's investigation.

Scope of the Investigation

The internal probe focuses on the accounting treatment of specific customer and supplier agreements. These agreements dictate how the company recognizes revenue and expenses, and discrepancies in these areas often lead to adjustments in corporate financial reporting.

To fill the vacancy left by Thurston, the company appointed Conor McShane of AlixPartners LLP as Interim Chief Financial Officer. AlixPartners is a global consulting firm that manages corporate turnarounds and financial restructurings.

Financial Reporting Delays

The management change and the ongoing investigation forced Endava to adjust its reporting schedule. The company intends to publish its fiscal fourth quarter and full-year 2026 financial results, along with its Annual Report on Form 20-F, by November 2, 2026.

Form 20-F is the mandatory annual filing for foreign private issuers listed on U.S. exchanges, requiring disclosure of financial conditions and operational risks. A delay in filing this document can cause institutional investors to question the internal controls and oversight mechanisms at the firm.

Impact on Stakeholders

The 25% decline in share price reflects investor concern over the potential for restatements, which could alter the company's previously reported profitability and growth metrics. For Endava, which relies on consistent reporting to maintain its valuation in the IT services sector, the outcome of this investigation will determine its ability to regain market confidence before the November reporting deadline.