Cogstate (CGS) H1 2026 earnings summary

Executive summary

• Managed 133 clinical trials as of December 31, up 34% year-over-year, with a record 42 new trial starts and strong portfolio expansion and customer diversification.

• Clinical Trials sales contracts executed reached AUD 41.7M, up 105% year-over-year, with channel partners contributing 70% of opportunities and 62% of executed contracts.

• Delivered strong revenue growth and operational leverage, positioning for increased CNS market share and expanded market reach.

• Diversification strategy advanced, with 45% of contracts from mood, sleep, and other neurological conditions, and increased market share from competitors.

• Principal activities included digital brain health assessments and quality assurance services in clinical trials.

Financial highlights

• Revenue for the half was AUD 26.9M, up 12% year-over-year; Clinical Trials revenue grew 13% to AUD 25.7M, and Healthcare revenue was stable at AUD 1.2M.

• EBITDA was AUD 6.5M (24.3% margin), profit before tax AUD 5.3M (up 2%), and profit after tax AUD 4.5M (up 16%, 16.7% margin).

• Gross margin declined to 52.8% from 61.4% year-over-year, attributed to one-off costs, resource reallocation, and a $0.5M doubtful debt provision.

• Operating expenses fell 9% year-over-year, benefiting from cost reallocation and operational leverage.

• Cash on hand was AUD 34.1M at period end, with no debt and positive operating cash flow of AUD 2.4M.

Outlook and guidance

• Management expects margins to recover to 56%-59% in 2H26, with a long-term target above 60%.

• Revenue contracted for the June half is AUD 21.7M, up 24% year-over-year, and total future contract revenue reached AUD 104.9M, up 6% year-over-year.

• Clinical Trials contracted future revenue increased 10% to AUD 92.3M.

• Sales pipeline and trial portfolio at record levels, providing multi-year visibility and supporting robust growth outlook.

• Continued investment in technology, expansion into new indications, and channel partnerships are expected to drive medium-term growth.