Cogstate (CGS) H1 2025 earnings summary

Executive summary

• Record half-year revenue of $23.94 million for the six months ended 31 December 2024, up 19% year-over-year, driven by strong Clinical Trials growth and improved margins.

• Net profit before tax rose 150% year-over-year to $5.22 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 segment performance remained strong.

• $20.3 million in new sales contracts executed, though recognized revenue outpaced new contracts, highlighting the need for further contract growth.

Financial highlights

• Gross profit increased to $14.7 million (61% margin), with EBIT margin at 20% and EBITDA up 93% to $6.23 million.

• Operating cash flow was $5.05 million, reversing a prior period outflow, and cash balance rose to $34.24 million.

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

• Operating expenses decreased 12% to $8.48 million, and staff expenses fell 3% to $12.8 million.

• Net assets increased to $44.3 million, up 8% from June 2024.

Outlook and guidance

• Second half of FY25 expected to be consistent with the first half in revenue and margins, with $16.3 million revenue expected to be recognized in H2 FY25.

• Margins and operating cash flow anticipated to remain stable; $1.5 million in additional tax payments expected in H2 FY25.

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