Endava's CFO Is Out and Its Books Are Under the Microscope — Can a $126 Million Company Survive Another Crisis of Confidence?

Shares of Endava plummeted 14.3% to $2.39 on September 22, 2026, after the London-based IT services firm disclosed that its board placed CFO Mark Thurston on administrative leave and launched an independent accounting investigation. For a company already battered by declining revenue, missed earnings, and an existing securities fraud class action, this is the kind of headline that turns skepticism into outright fear.

The Auditors Flagged It, and the Board Acted Fast

Thurston's leave is pending an investigation by independent outside counsel for the audit committee, initiated after the company's own outside auditors raised concerns about how Endava was accounting for certain customer and supplier agreements. That detail matters: when external auditors — not a whistleblower or short seller — trigger a probe, it suggests the issues survived internal controls long enough to alarm the gatekeepers. Conor McShane of AlixPartners, a global restructuring and advisory firm, was immediately named interim CFO. AlixPartners' involvement often signals the board is bracing for complex financial remediation.

The Numbers Were Already Ugly Before This

Endava's anticipated second-half 2026 recovery had not materialized; Q3 2026 revenue declined 8.4% year-over-year, and its adjusted profit margin collapsed to 1.8% from 12.6%.

The company reported just $0.07 in earnings per share that quarter, missing the $0.20 estimate by 65%, compared to $0.43 a year earlier. An accounting probe now raises the question of whether even those diminished figures can be trusted.

Investors Have Seen This Movie Before

A class action lawsuit was filed against Endava in August 2024, alleging shareholders bought stock at artificially inflated prices between May 2023 and February 2024.

Now, Glancy Prongay & Murray has launched a new securities fraud investigation tied directly to the CFO removal. Layered legal liability compounds the financial risk for a firm whose market capitalization has shriveled to roughly $126 million — a fraction of its trailing twelve-month revenue of about $728 million.

The Filing Calendar Is Now a Ticking Clock

Endava says it intends to publish its fiscal Q4 and full-year 2026 results and file its annual report by November 2, 2026. If the investigation delays that filing or forces restatements, Endava could face NYSE compliance issues and further institutional selling. The stock already sits 69.66% below its one-year high — leaving almost no margin for error.