Cogstate (CGS) H1 2025 earnings summary

Executive summary

• Achieved record half-year revenue of $23.94 million for 1H25, up 19% year-over-year, driven by strong Clinical Trials growth and improved margins.

• Net profit before tax rose 150% year-over-year to $5.2 million, with basic EPS increasing to 2.27 cents.

• Workforce reduced to 154 employees as of December 31, 2024, reflecting efficiency gains from technology investments.

• Healthcare segment revenue declined 44% to $1.25 million due to contract amendments, while Clinical Trials drove overall growth.

Financial highlights

• Clinical Trials revenue grew 27% year-over-year to $22.7 million; Healthcare revenue down due to Eisai/ASI agreement amendment.

• Gross profit increased to $14.7 million (61% margin); EBIT margin up to 20% from 9% year-over-year.

• Operating cash flow was $5.0 million, reversing a prior period outflow; cash balance at $34.2 million as of December 31, 2024.

• $20.3 million in new sales contracts executed, up significantly year-over-year but below recognized revenue.

• Total contracted future revenue at $99.1 million, down 20% year-over-year.

Outlook and guidance

• 2H25 revenue and margins expected to be consistent with 1H25, based on contracted revenue and sales pipeline.

• $16.3 million of revenue expected to be recognized in H2 FY25, up from $14.5 million in H2 FY24.

• Additional $1.5 million tax payment anticipated in 2H25, affecting cash flow timing.

• Growth strategies focus on decentralized clinical trials, Alzheimer's market expansion, and channel partnerships.