Cogstate Posts $26.9M Revenue and $5.34M Profit in H1 2026

Strong Revenue Growth Anchored by Clinical Trials

Cogstate Limited has delivered a robust financial performance for the half-year ended 31 December 2025, with total revenue climbing 12% to US$26.9 million. This growth was primarily driven by a 13% increase in the Clinical Trials segment, which generated US$25.7 million in revenue. The Healthcare segment remained steady, contributing US$1.2 million.

The company’s Clinical Trials business, which provides cognitive testing and quality assurance services for central nervous system research, continues to expand its footprint. Notably, contracted future Clinical Trials revenue rose 10% to US$92.3 million, reflecting strong demand and a healthy pipeline of upcoming projects.

Profitability and Earnings Per Share Improvements

Cogstate’s net profit before tax increased modestly by 2% to US$5.34 million, supported by disciplined cost management despite a 21% rise in staff expenses linked to increased headcount and operational scaling. Basic earnings per share improved to 2.65 cents, up from 2.27 cents in the prior corresponding period.

The company did not declare an interim dividend for this half-year but reaffirmed its commitment to an annual dividend policy, leaving open the possibility of a final dividend at year-end.

Investments in Technology and Operational Capabilities

Cogstate continues to invest in its digital brain health assessment tools, including the Cognigram™ system designed for healthcare professionals to detect cognitive decline. The company is also advancing AI-powered products to automate data quality offerings and is leveraging decentralized clinical trial methodologies to capture new market opportunities.

Capitalised software development costs increased, reflecting ongoing enhancements to the company’s proprietary platforms such as the Database platform, Data management software, and Rater performance application. These investments aim to improve operational efficiency and data security, positioning Cogstate for sustained growth.

Balance Sheet and Financial Position

Cogstate’s balance sheet remains solid, with net assets rising to US$51.6 million as at 31 December 2025. Cash and cash equivalents stood at US$34.1 million, providing ample liquidity to support ongoing operations and strategic initiatives. The company also completed an on-market share buy-back during the period, acquiring 180,043 shares at an average price of AUD$2.20.

One area of note is the ongoing external review of the Group’s USA sales tax position, which led to a restatement of prior period amounts. While this introduces some accounting uncertainty, the company has disclosed the impact transparently and does not expect it to affect operational performance.

Outlook and Strategic Focus

Cogstate’s management is focused on scaling its Clinical Trials segment through partnerships, including with Medidata, and expanding into new therapeutic areas such as psychiatric and mood disorders. The company’s dual focus on clinical research and healthcare cognitive assessments positions it well to capitalise on growing demand for digital brain health solutions.

With a growing contract backlog and continued investment in technology, Cogstate appears poised for steady progress in the coming periods, though investors will watch closely for updates on dividend policy and the resolution of tax matters.