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 in the half, reflecting strong portfolio expansion and customer diversification.

• Achieved strong revenue growth and operational leverage in 1H26, with record diversified sales contracts and increased market share from competitors.

• Channel partners contributed 70% of sales opportunities and 62% of executed contracts in the December quarter, highlighting the success of the partnership strategy.

• Net profit before tax for the half-year ended 31 December 2025 was $5.34 million, up 2% from $5.22 million in the prior corresponding period.

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

Financial highlights

• First half revenue was AUD 26.9 million, up 12% year-over-year; Clinical Trials revenue grew 13% year-over-year.

• EBITDA was AUD 6.5 million (24.3% margin), profit after tax AUD 4.5 million (16.7% margin), and profit before tax AUD 5.3 million (just under 20% margin).

• Gross margin was 58.4% on a like-for-like basis, but compressed to 52.8% from 61.4% prior period due to temporary factors and investments.

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

• Cash on hand was AUD 34.1 million, with no debt and positive operating cash flow of AUD 2.4 million.

Outlook and guidance

• Management expects margins to improve in the second half, targeting 56%-59% gross margin, with a long-term goal of 60%+.

• Revenue contracted for the June half is AUD 21.7 million, up 24% year-over-year, positioning for strong growth.

• Total future contract revenue grew 6% year-over-year to $104.9 million, with a clinical trials backlog of $92.3 million, up 9-10%.

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

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