Cogstate (CGS) H2 2025 earnings summary

Executive summary

• Achieved record total revenue of $53.1 million for FY25, up 22% year-over-year, with clinical trials revenue rising 28% to $50.6 million.

• Profit before tax increased 96% to $13.9 million, and profit after tax rose 86% to $10.1 million.

• Declared a maiden fully-franked dividend of $0.02 per share and set a payout target of 20–50% of net profit after tax.

• Strong momentum in clinical trials contracts, with $41.3 million signed for FY25 (up 53%) and $14.1 million already signed for FY26.

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

Financial highlights

• Gross margin improved to 61%, EBITDA margin reached 30%, and EBIT margin hit 25%, reflecting strong operational leverage.

• Operating cash inflow was $11.5 million, nearly doubling year-over-year, with a cash balance of $35.6 million after $4.8 million spent on share buybacks.

• Software license revenue has grown at a 25% CAGR over four years, supporting higher revenue yield and margin expansion.

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

• Return on capital deployed reached 20%, above industry average.

Outlook and guidance

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

• $35.9 million of FY26 revenue already under contract as of August 2025.

• Commercial launch of first AI-powered products planned for FY26, supporting automation and scalability.

• Margins may see a small decrease (up to 3 percentage points) in FY26 due to increased investment in data engineering, science, and Asia-Pacific resources, but long-term margin upside anticipated.

• Management expects continued revenue growth but no specific guidance provided pending further contract execution.