• Record revenue, 61% gross margins, 20% EBIT margins, $5m positive operating cashflow
• $20.3m of net new contracts executed during 1H25 added $12.4m to FY25 revenue
• Contracted future revenue of $99.1m

Cogstate Ltd (ASX:CGS) has reported strong financial results for the half-year ended 31 December 2024 (1H25), with record revenue of $23.9m, 61% gross margins, and 20% EBIT margins. The company generated $5m in positive operating cashflow during the period. The improved financial performance was driven by higher than historical revenue yield from contracts executed during the half, as well as technology investments that created efficiency gains. Cogstate continues to invest in data analysis and advanced analytics, with the increase in operating expenses largely representing scientific and data engineering resources. The company's Clinical Trials segment saw revenue growth of 27%, offsetting a decline in the Healthcare segment due to a renegotiated global licensing agreement. Cogstate executed $20.3m in new sales contracts during 1H25, adding $12.4m to FY25 revenue, and has a total contracted future revenue of $99.1m. The company sees an increased number of opportunities across all indications, reflecting the expansion of its offering, improved funding environment for US biotech, and increased volume of opportunities via channel partners.

Clinical Trials Revenue: 2H25 revenue is expected to be consistent with 1H25 revenue of $22.7m, based on contracted revenue position at 01 January 2025 and high probability sales prospects. Margins: Gross margins and EBIT margins for 2H25 should be consistent with 1H25 levels of 61% and 20% respectively. Operating Cashflow: Additional tax payments of approximately $1.5m are expected to be made during 2H25, but excluding timing of tax payments, cashflow from operations for 2H25 should be consistent with 1H25.