• Demand for Cogstate services continues to grow, with record sales opportunities
• Executed $21.4 million in sales contracts in Q1 2026, up 88% year-over-year
• Diversifying customer base and expanding into new indications

Cogstate Ltd (ASX:CGS) has released a business update ahead of its Annual General Meeting, which will take place on 16 October 2025. The company reported that the demand for its services continues to grow, reflecting both growth in the market for R&D in central nervous system diseases as well as growth in market share by Cogstate. Each of the last four quarters has set a new record for the number of sales opportunities identified by Cogstate, with those opportunities in the September quarter (1Q26) 72% higher than 1Q25. The growth in sales opportunities reflects an expansion of both the Cogstate customer base and entry into new indications. For the September quarter (1Q26), Cogstate executed $21.4 million of sales contracts, which is the second highest quarterly result in the company's history and an increase of 88% compared to the $11.4 million of sales contracts executed in the previous corresponding quarter (1Q25). The company also reported a reduced concentration of the value of sales contracts executed in 1Q26, delivering on Cogstate's growth strategy. For the December half year period (1H26), Cogstate expects revenue to be approximately 18% to 20% better than the previous corresponding half (1H25 $23.9m) and closely align with the most recent June half year period (2H25 $29.1m). The company also reconfirmed guidance provided with the release of the FY25 results, stating that both direct costs and operating costs will increase from FY25 to FY26 as Cogstate invests for growth, which may result in a small decrease in margins (0-3 percentage points) subject to revenue growth in FY26.

For the December half year period (1H26), revenue is expected to be approximately 18% to 20% better than the previous corresponding half (1H25 $23.9m) and closely align with the most recent June half year period (2H25 $29.1m). Margins may decrease by 0-3 percentage points subject to revenue growth in FY26.

Cogstate continues to carefully monitor win-rate from the associated increase in proposals volume and is assessing the full impact of new channel partnerships, with further updates to be provided throughout the course of the year.