The Cogstate Ltd (ASX:CGS) share price is climbing 5% on Friday after the neuroscience technology company posted its FY25 results.
The shares opened higher this morning and have maintained gains as investors digest the company's numbers.
Here's the breakdown of Cogstate's annual numbers, and what the company sees for the coming 12 months.
Image source: Getty Images
Cogstate share price reacts to FY25 performance
Investors have bid up the Cogstate share price in Friday's trade following a decent set of numbers. They key takeouts are as follows:
- Group revenue of $53.1 million, up 22% year-on-year.
- Net profit before tax nearly doubled to $13.9 million, up 96% on the prior corresponding period (pcp).
- Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 72% to $16 million, with a margin of 30.1%, up 8.7 percentage points.
- Clinical Trials new contract sales surged 53% to $41.3 million.
- Contracted revenue for FY26 expected to reach $31.5 million, up 8.4% on pcp.
- Maiden fully franked dividend of A$0.02 per share declared.
What else happened in FY25?
The Cogstate share price is tracking higher today, with the company's FY25 results underlined by growth in Clinical Trials revenue. This rose 28% to $50.6 million, partially offset by a 37% decline in Healthcare segment revenue due to amendments to a licensing agreement with Japanese company Eisai.
Operational efficiency and disciplined cost management supported margin expansion, with EBITDA growth of 72% outpacing revenue growth of 22% for the year.
Cogstate also entered into a strategic partnership with Medidata, expanding its reach in Central Nervous System (CNS) clinical research on a global scale.
The company also prepared to launch its first AI-powered products in FY26, leveraging this technology to improve data quality and signal detection for clinical trials.
Cash generation was another takeout, with the company producing $5.4 million, after a $4.8 million share buy-back. Meanwhile, it ended with $35 million in cash on the balance sheet.
But perhaps the biggest takeout for the Cogstate share price, was the company's maiden fully franked dividend.
This marks a first for shareholders, with the company agreeing to pay 2 cents in dividends per share. It intends to continue this, along with "continuing to allocate capital to product and service development that supports growth".
This includes more share buy backs into the future, and targeting a payout ratio of around 20-50% of net profit for future dividend payments.
What did management say?
Cogstate CEO, Brad O'Connor, commented:
FY25 was a transformative year for Cogstate, as we delivered record results while strengthening the foundations for sustainable, long-term growth through innovation and relationships. Our performance demonstrates the value of our diversified contract pipeline, disciplined focus on highmargin recurring revenues, and ongoing commitment to innovation. With momentum building across CNS clinical trials, a deepening strategic partnership with Medidata, and our upcoming launch of AI-powered solutions, Cogstate
is exceptionally well placed to advance brain health globally and deliver increasing value for all stakeholders in FY26
and beyond.
What's next?
Cogstate enters FY26 with $35.9 million in revenue under contract, including $14.1 million of new sales since 1 July 2025.
Management plans to continue investing in science resources, Asia-Pacific expansion, data engineering, and AI development.
While these investments may slightly compress margins (0–3 percentage points), they are expected to drive long-term growth.
According to the release, "Management expects revenue growth to continue but no specific guidance is provided at this time, pending execution of additional sales contracts to provide greater certainty in respect of timing of revenue". This could be positive for the Cogstate share price.
Cogstate share price snapshot
The Cogstate share price is catching a bid today following its FY25 numbers. The gains are supported by record revenue, improving margins, and strategic partnerships, along with its maiden dividend.
Over the past 12 months, the stock is up 75%,
