Cogstate CEO Brad O'Connor said that it has been a landmark year for the company (CGS: $3.10). The company has been able to diversify away from its reliance on the field of Alzheimer's disease (accounting for just 14% of revenue) and has been able to expand the quantity of work through its channel partners.
In a strategy that was put in place five years ago, O'Connor said that it is now bearing fruit.
Sales (contracts signed) for the year were US$89 million which was up 116% on the PCP. Forty percent of this came from the company's channel partners, including its largest partner Medidata. This compares to just US$1 million of sales from channel partners in FY2025.
The partnership with Medidata, signed in October 2024, has taken some time to develop, with Medidata making up half of the channel partner revenue.
The investment of expansion into other areas such as mood/sleep/other neurology, and in rare diseases is now paying off, representing 46% and 33% of new contracts signed respectively in FY2026. Whilst the level of revenue from Alzheimer's disease is lower, the company remains very optimistic of the future revenue potential from this area of drug development.
The company is currently managing 171 studies for its pharmaceutical and biotech customers, up from 110 a year ago. Its gross profit margin for the year was 58%, which is expected to grow with revenue. O'Connor said the business has reached a position where there is "exceptional leverage over operating costs" as revenue grows.
The group revenue for the year was US$60.9 million with a profit before tax of US$16.1 million and profit after tax of US$11.9 million. The company will pay a $0.04 dividend, with a cash balance at the end of June of US$34.8 million.
Outlook
For the year ahead, Cogstate has US$46.1 million of revenue secured for this year from its clinical trials business, and US$29.1 million of revenue booked for FY2028. Based on the performance last year, Bioshares estimates revenue of US$80 million for this year, if similar levels of sales contracts can be signed. The company continues to see high levels of sales opportunities. O'Connor said that the FY2026 results are "just the start for our business."
Bioshares recommendation: Hold
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