A record year: Cogstate delivers US$60.9m revenue and 25% EBIT margins in FY26
In its FY26 results investor briefing released on 18 August 2026, Cogstate Ltd (ASX:CGS) outlined a record full-year performance, presented by CEO Brad O’Connor, CFO Darren Watson and EVP Clinical Trials Rachel Colite. The neuroscience technology company reported record sales, revenue and profit for the year ended 30 June 2026, while continuing to invest with discipline for its next growth phase.
All figures are in US$ unless otherwise stated.
The Cogstate FY26 results headline the year with US$60.9m in revenue (up 15%) and 25% EBIT margins, alongside US$16.1m profit before tax (up 16%) and US$11.9m net profit after tax (up 17%). The company ended the period with US$34.8m net cash and no debt.
For investors, the significance lies in profitable growth achieved at scale, paired with a record contracted revenue base that management highlighted as delivering forward earnings visibility.
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FY26 scorecard: the numbers behind a record-breaking year
The presentation detailed growth, profitability and capital discipline across the year. The standout metrics were record sales contracts of US$89.0m, up 116%, and 90 trial starts initiated in FY26 compared with 35 in the prior year.
| Metric | FY26 | FY25 | Movement |
|---|---|---|---|
| Revenue | $60.9m | $53.1m | up 15% |
| Gross Profit | $35.4m | $32.4m | up 9% |
| EBITDA | $18.3m | $16.0m | up 15% |
| Net Profit before tax | $16.1m | $13.9m | up 16% |
| Net Profit after tax | $11.9m | $10.1m | up 17% |
The company highlighted several growth standouts across the year:
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Sales contracts of US$89.0m, up 116%
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90 trial starts initiated (vs 35), with 171 trials running (vs 110)
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Contracted revenue over time of US$118.5m, with US$48.3m locked for FY27 (up 54%)
Operating leverage was evident in the second half. Management noted that the EBIT margin rose to 30% in 2H26, while the 2H26 gross margin reached 62% and the 2H26 EBITDA margin lifted to 35%, compared with 24% in 1H26.
What Cogstate does: neuroscience technology for brain health trials
Cogstate is a neuroscience technology company that provides computerised cognitive tests and electronic clinical outcome assessment (eCOA) solutions for biopharmaceutical clinical trials. Its tools measure brain health, replacing costly and error-prone paper assessments with real-time digital data capture.
Much of its work centres on central nervous system (CNS) trials, meaning studies focused on brain and mental health conditions. A related service, central rating, is delivered by over 400 neuropsychologists globally and is a key feature of mood trials that enhances their value.
A key concept for investors is the “contracted revenue backlog.” This represents revenue already secured under contract that will be recognised in future reporting periods, giving greater visibility into forward earnings.
While a record contracted base helps de-risk future revenue, management cautioned that future growth still depends on the in-period conversion of new contracts.
Record contracted revenue provides forward visibility
The company reported total contracted revenue of US$118.5m, of which US$48.3m is expected to be recognised in FY27, up 54% year-on-year. Of the FY27 figure, Clinical Trials accounts for US$46.1m (up 58%) and Healthcare for US$2.3m, consistent with FY26.
Cogstate ended the period with a record 171 ongoing trials (up 55%), including 78 Phase 2 trials (up 73%). Management flagged Phase 2 activity as a pipeline feeder into future Phase 3 work.
The 90 new trial starts in FY26 reflected a diversifying portfolio:
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14% Alzheimer’s
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46% Mood, Sleep & Other Neurology
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33% Rare Diseases
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7% Cancer, Metabolic & Other
Management framed this as a broader, deeper and more resilient project base, with the company increasingly positioned as the incumbent endpoint provider as programs progress, supporting a multi-year revenue opportunity.
The growth drivers: indication expansion, partnerships and market tailwinds
The presentation identified three drivers expanding sales opportunities. The first is indication expansion, with Cogstate moving beyond neurology and into psychiatry (mental health), while holding a leadership position in orexin programs where its assessments serve as key endpoints in most trials.
The second is expansion of offering, including a shift toward decentralised and remote trial execution. The company detailed a global central rating capability delivered by 400+ neuropsychologists across 50+ languages, with capacity to scale further through an additional 3,200+ pre-screened clinicians.
The third is market conditions, with growing CNS trial activity expanding the addressable market. Management referenced Lilly’s US$7.8bn acquisition of Centessa as a signal of growing sponsor investment in sleep.
Partnerships were a notable theme. Management noted that partner-related contracts, including eCOA and CRO arrangements, accounted for approximately 40% of the value of new sales contracts in FY26, with named partners including Medidata (Dassault Systèmes).
Presentation framing
“A landmark year achieved through diversification and expansion of offering.”
Building an AI-enabled platform for margin expansion
Management outlined a two-phase AI strategy. Phase 1, described as achieved, comprises AI Central Monitoring, AI-Powered Rater Practice and Targeted Quality Oversight. Phase 2, described as an investment phase, extends AI and automation into Clinical Trial Orchestration and broader workflow automation.
The presentation framed this as a technology-driven margin lever designed to limit growth in employee numbers and lift gross margins over the medium term. The build-out is planned across FY27 and FY28, and is expected to be predominantly CapEx.
Management positioned the AI programme as a “step-change opportunity” to expand margins and launch new software-led offerings, rather than a completed outcome.
Capital management: dividend lifted, buyback active
The company detailed its capital return plans, preserving the distinction between currencies:
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Dividend increased to A$0.04 per share, fully franked, with a payout ratio of approximately 40% of after-tax profits, within the stated 20–50% target
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Record date of 24 August 2026 and payment date of 22 September 2026
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Share buyback remains open but selective, targeting market mispricing and periods of volatility
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US$34.8m net cash and no debt, supporting self-funded growth
FY27 outlook: a record base for the next phase of growth
Management framed FY27 as starting from the strongest contracted position in the company’s history, stating the year begins with a record contracted revenue base providing greater visibility than at any point in the company’s history.
Key outlook points included:
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US$48.3m in revenue already contracted for FY27 (up 54%)
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Management expects to maintain FY26 EBITDA margins of 30% despite increased technology investment, subject to the level, timing and conversion of new contracts
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FY27 is expected to show a second-half bias, with the June-27 half stronger than the December-26 half
The presentation summarised a five-pillar thesis: a stronger starting position, multiple growth drivers, growing market reach, a scaling platform and technology-led leverage.
Management characterised the record FY26 performance as “not the destination… it’s the foundation for the next phase of growth.” A live webcast and Q&A were hosted on 18 August 2026, with a recording available at the Cogstate Investor Centre.
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