Cogstate (ASX:CGS) FY26 Revenue Rises 15% as Record Contracts Reach US$89 Million

Sonal Goyal

18 August 2026 10:58 AM AEST

Cogstate (ASX:CGS) FY26 Revenue Rises 15% as Record Contracts Reach US$89 Million

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Key Highlights

Cogstate (ASX:CGS) reported FY26 Revenue of US$60.9 million, up 15% from US$53.1 million, while sales contracts more than doubled to US$89.0 million.
EBITDA increased 14.9% to US$18.3 million and EBIT rose to US$15.2 million, with both margins maintained or improved.
Profit after tax reached US$11.9 million, compared with the prior-year result, while Earnings Per Share were US$0.0696.
The company declared a fully franked annual Dividend of A$0.04 per share and ended FY26 with US$34.8 million in cash and no debt.

Cogstate (ASX:CGS) delivered record financial and commercial results for FY26, supported by higher Demand for its clinical trial endpoint services across central nervous system disorders. Revenue from operations increased 15% to US$60.9 million from US$53.1 million in FY25, while record net Clinical Trials sales contracts rose 116% to US$89.0 million from US$41.3 million.

The company’s portfolio expanded across several therapeutic areas during the year. New clinical trial contracts included psychiatric and mood disorders, sleep, rare disease, neurological conditions and Alzheimer’s disease. The Diversification of new Business was accompanied by an increase in active trials from 110 at July 1, 2025, to 171 at June 30, 2026.

Earnings Growth and Margin Movement

Gross profit increased to US$35.4 million from US$32.4 million. However, full-year gross margin declined to 58% from 61%. Cogstate attributed the lower annual margin to investments made ahead of anticipated activity, the reclassification of certain scientific staff costs into cost of sales and higher business development commissions associated with increased sales volumes.

The quarterly progression was more favourable, with gross margin improving from 53% in the first half to 62% in the second half. EBITDA increased 14.9% to US$18.3 million, while the EBITDA margin remained at 30%. EBIT rose to US$15.2 million from US$13.0 million, with the EBIT margin increasing to 25% from the previous year’s 25% level.

Profit before tax increased to US$16.1 million from US$13.9 million. Profit after tax was US$11.9 million, with Diluted Earnings per Share reported at US$0.0696.

Clinical Trials Remain the Main Revenue Driver

The Clinical Trials segment generated US$58.4 million in FY26 revenue, compared with US$50.6 million a year earlier. Its contribution increased to US$33.3 million from US$30.6 million, although the contribution margin declined to 57% from 60%.

Healthcare revenue was broadly unchanged at US$2.5 million, compared with US$2.5 million in FY25. Healthcare contribution increased to US$2.0 million from US$1.9 million, while its contribution margin improved to 81% from 74%.

Strategic partnerships also expanded during the year, with co-selling arrangements involving established technology providers in the clinical trials market contributing to a broader sales opportunity base.

Technology Investment and Cash Position

Cogstate continued to allocate resources toward technology, automation and artificial intelligence-enabled clinical trial workflows. AI-enabled Rater Training and Central Monitoring were incorporated into its product toolkit, while the company outlined a two-year development program across FY27 and FY28 to automate workflow orchestration and system integration.

Operating expenses increased to US$17.0 million from US$16.5 million. The company expects a significant portion of the technology investment to be Capital in nature, with the program intended to support delivery quality, limit employee growth and improve gross margins over time.

Operating cash inflow was US$8.5 million, while net cash inflow was US$3.1 million before option proceeds, share buy-back expenditure and dividend payments. Cogstate finished FY26 with US$34.8 million in cash and no debt.

FY27 Starting Position

Cogstate enters FY27 with contracted future revenue of US$118.5 million, representing a 32% increase compared with the prior-year starting position. Of this amount, US$48.3 million is already expected to be recognised during FY27, up 54%.

Management expects FY27 to retain a second-half bias, with the June 2027 half-year expected to be stronger than the December 2026 half-year. Revenue growth will depend partly on the timing and conversion of new contracts, while the company expects to maintain FY26 annual EBITDA margins subject to contract wins and broader market conditions.

Conclusion

Cogstate’s FY26 results show higher revenue, record contract wins, increased EBITDA and EBIT, improved operating cash generation and a larger contracted revenue base entering FY27. The reduction in full-year gross margin from 61% to 58% remains a notable negative factor, although the margin improved during the second half. With active trials increasing materially, continued investment in AI-enabled workflows and a diversified CNS portfolio, the company’s financial performance will remain closely linked to contract conversion, trial activity and the pace at which its technology platform scales.

FAQs

Q: What was Cogstate’s FY26 revenue?

A:Cogstate reported revenue from operations of US$60.9 million in FY26, an increase of 15% from US$53.1 million in FY25.

Q: How much did Cogstate’s sales contracts increase?

A:Net Clinical Trials sales contracts increased 116% to US$89.0 million from US$41.3 million.

Q: Did Cogstate’s gross margin increase or decrease?

A:Full-year gross margin decreased to 58% from 61%. However, the margin improved from 53% in the first half to 62% in the second half of FY26.

Q: What was Cogstate’s FY26 EBITDA?

A:EBITDA increased 14.9% to US$18.3 million, with the EBITDA margin remaining at 30%.

Q: What dividend did Cogstate declare?

A:Cogstate declared a fully franked annual dividend of A$0.04 per ordinary share, payable to shareholders registered on the August 24, 2026 record date, with payment scheduled for September 22, 2026.

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