Cogstate (CGS) investor relations material

Executive summary

• Achieved record total revenue of $53.1M for FY25, up 22% year-over-year, driven by a 28% increase in clinical trials revenue.

• Profit before tax rose 96% to $13.9M, and profit after tax increased 86% to $10.1M, reflecting operational leverage and cost discipline.

• Declared a maiden fully franked dividend of 2 Australian cents per share, targeting a payout ratio of 20–50% of net profit after tax.

• Strategic partnership with Medidata is building a robust sales pipeline and expanding reach in CNS and psychiatric indications.

• Expanded into new brain health and neuroscience opportunities, with robust growth in clinical trials partnerships.

Financial highlights

• Gross margin improved to 61%, EBITDA margin reached 30%, and EBIT margin rose to 25%, all up significantly year-over-year.

• Operating cash inflow was $11.5M, with a year-end cash balance of $35.6M after $4.8M spent on share buybacks.

• Clinical trials sales contracts totaled $41.3M, up 53%, with $14.1M executed since July 2025.

• Software license revenue has grown at a 25% CAGR over four years, supporting higher revenue yields.

• License fees contributed over 20% of revenue, supporting margin expansion.

Outlook and guidance

• FY26 expected to benefit from Medidata partnership scaling, AI product launch, and expansion into new CNS indications.

• $35.9M of FY26 revenue already under contract as of August 2025, with strong pipeline growth expected.

• Margins may see a small decrease (up to 3 percentage points) in FY26 due to increased engineering spend, but long-term margin upside anticipated as license fees grow.

• Expanding into psychiatric and mood disorders, with $4M in contracts signed early in FY26.

• Board to maintain flexibility on share buybacks.