Cambridge Cognition’s H1 2025: Orders roar back, revenue lags, cash tight
Cambridge Cognition’s interim results tell a clear turnaround story in progress. New Sales Orders surged while reported revenue dipped, and the Company is lining up a small equity raise to bolster working capital. For a business that sells software and services into clinical trials, bookings tend to lead revenue by several quarters, so the mix of metrics here matters.
Key numbers investors should know
| Metric | H1 2025 | H1 2024 / Prior | Comment |
|---|---|---|---|
| New Sales Orders | £6.9m | £3.3m | Up 109%; at announcement date £8.0m, already above FY 2024 (£7.4m) |
| Order Book | £16.4m | £14.6m (H1 2024) / £13.6m (Dec 2024) | Growing backlog |
| Revenue | £4.3m | £5.6m | Lag from weak 2024 selling |
| Gross margin | 78.5% | 80.7% | Broadly stable |
| Adjusted EBITDA | £(0.4)m | £(0.1)m | Still loss making |
| Operating loss | £(0.8)m | £(0.8)m | Flat year on year |
| Operating cash flow | £(0.3)m | £(1.6)m | Marked improvement |
| Cash | £0.4m | £1.3m (Dec 2024) | Low cash balance |
| Total borrowings | £1.5m | £1.9m (Dec 2024) | Debt being repaid |
| Net debt | £1.0m | £0.6m (Dec 2024) | Higher net debt |
| 2025 revenue guidance | £9.5m to £10.0m | Not previously guided | Lower revenue this year, rebuild into 2026 |
Why the 109% bookings jump matters
New Sales Orders are signed contracts. They are the best leading indicator for future revenue in a trials-focused software group. Cambridge Cognition booked £6.9m in H1 and says the tally had risen to £8.0m by the time of the announcement, already ahead of the whole of 2024. That is a meaningful swing after last year’s “commercial reset”.
The Order Book – contracted backlog to be delivered – climbed to £16.4m. Management highlights a £32.5m sales pipeline and says around £5.8m of the Order Book is expected to land as revenue in 2026. None of that guarantees revenue, but it shows momentum is rebuilding where it counts.
Revenue is down now, but that lag is explainable
Revenue fell to £4.3m as the hangover from weak selling in 2024 flowed through. Gross margin held at 78.5%, which is healthy for a software-and-services mix. Operating loss was steady at £0.8m despite the revenue dip, thanks to £1.1m lower operating expenses year on year as the cost cuts from late 2023 and 2024 bedded in.
Adjusted EBITDA loss widened modestly to £0.4m. In simple terms, the cost base is now better aligned, so stronger bookings should translate more cleanly to profit as delivery ramps.
Cash position: tight today, proposed raise incoming
Cash at period end was £0.4m with £1.5m of borrowings, leaving net debt of £1.0m. That is lean for comfort. The Company proposes to raise approximately £1.1m by issuing 4,100,000 new shares at 27.25p – a 4.8% premium to the prior close. Premium fundraisings are rare on AIM and suggest supportive investors, but this raise is small and primarily for working capital.
On the positive side, operating cash outflow improved to £0.3m. Deferred income – upfront cash billed on new contracts – contributed £0.2m in the half, reversing two years of cash drag. That is exactly what you want to see if bookings are truly recovering.
Operational delivery and product catalysts
- Supported 80 clinical studies and initiated 15 new studies, with 75% for Tier 1 pharma. That mix should underpin repeat business.
- Expanded services with in-house Rater Training for eCOA (electronic clinical outcome assessments), the AQUA automated quality assurance platform, and a Speaker Identification solution to reduce duplicate enrolment in trials.
- Regulatory milestone: an FDA Letter of Intent under the Drug Development Tool pathway to qualify a digital cognitive assessment for schizophrenia (CIAS) as a co-primary endpoint. Status: submitted, awaiting feedback.
- Scientific validation: CANTAB featured in a post-hoc analysis of Phase III schizophrenia trials with Bristol Myers Squibb, and in the 23,000-participant Intuition Brain Health study by Biogen and Apple published in Nature Medicine.
- AI-enabled voice biomarkers from the Winterlight Labs acquisition are being integrated with CANTAB Connect for multimodal (touch and voice) assessments, with collaborations including the Global Alzheimer’s Platform BioHermes project, AD Riddle and IDEA-FAST.
Governance and leadership: more delivery accountability
Rob Baker, Chief Operating Officer, joins the Board as Senior Executive Director. It is expected that Chief Commercial Officer Alex Livingstone-Learmonth will also join, and Ronald Openshaw becomes Chief Financial Officer and Head of Corporate Development, with an intention to join the Board subject to due diligence. The Board will refresh further, with two non-executives leaving by 31 December 2025 and the Chair not standing for re-election at the next AGM.
On balance, this looks like continued shift from reset to execution, with commercial and finance roles put front and centre.
Outlook: 2025 trough, 2026 recovery
The Board guides 2025 revenue to £9.5m to £10.0m, reflecting the earlier sales lull and a cancelled contract previously disclosed. For 2026, management says it is on track to meet market expectations for revenue and to deliver a “significant improvement” in profitability and cash generation. Exact 2026 numbers are not disclosed.
One cautionary note remains. The going concern statement flags a material uncertainty because cash generation depends on the level and timing of new orders. The base case keeps cash positive through to December 2026, aided by the proposed equity raise, but a downside in bookings could require further financing or cost actions.
My take: reasons to be optimistic, eyes on cash
- Positive: Bookings are back. £8.0m of orders year-to-date versus £7.4m in all of 2024 is a genuine turnaround signal.
- Positive: Operational credibility is improving, with 80 studies supported, big-pharma exposure, and publications that validate the tech at scale.
- Neutral: Profitability is not there yet, but costs are lower and margins are intact. That sets the stage if delivery accelerates.
- Negative: Cash is thin and net debt has risen. The £1.1m raise helps but does not remove funding risk if the order intake were to slow.
What to watch next
- Completion of the equity raise at 27.25p and any participation details. It is conditional on signed commitments.
- FDA feedback on the CIAS digital endpoint. Qualification would be a commercial differentiator.
- Conversion of the £32.5m pipeline into firm orders, and the pace of revenue recognition from the £16.4m Order Book.
- Cash trajectory each quarter, especially deferred income inflows and debt repayment.
- Progress on healthcare and consumer health partnerships. Agreements are not guaranteed, but management is “encouraged”.
Bottom line
This update reads like a credible recovery in motion: bookings up 109%, backlog rebuilding, operations humming, and product/regulatory catalysts moving forward. The sting is the cash balance, which keeps execution risk in focus until revenue catches up. If orders continue at the current clip and the raise completes as planned, Cambridge Cognition looks better placed to deliver its stated goal of sustained profitability and cash generation into 2026.
