Cogstate (ASX:CGS) said timing-related revenue deferrals are expected to have a short-term impact on reported revenue and profitability in the fiscal half-year ending Dec. 31, according to a Wednesday Australian bourse filing.

Total revenue for fiscal H1 is now forecast to be in the range of AU$25 million to AU$26 million, a 5% to 9% rise compared to the AU$23.9 million reported in the previous corresponding half-year period. The Company had previously provided financial guidance of between 18% to 20% revenue growth compared to the first half of fiscal 2025. Margins for the six months are also expected to be lower than previously anticipated.

Contracted revenue for the fiscal year 2026 second half is now expected to be around AU$21 million.

The delays impacting revenue recognition are primarily due to contracts signed late in the December quarter, which provide limited time for revenue to be recognized within the period, per the filing.

Cogstate expects to execute sales contracts of around AU$37 million to AU$40 million during the period, representing growth of 82% to 97% on the previous corresponding period.

The firm's shares plunged 22% in recent trading on Wednesday.