Kinatico Limited has reported a record FY25 revenue of $32.1 million, driven by a remarkable 54% increase in SaaS revenue and a cash-positive year despite significant technology investments.
- FY25 total revenue reaches $32.1 million, up 12%
- SaaS revenue grows 54% to $14.9 million
- Annualised SaaS run rate hits $17.5 million in Q4, up 57%
- Company remains cash accretive with $10.2 million cash on hand
- Invested over $3.5 million in new compliance technology
Robust Growth in SaaS Fuels Record Revenue
Kinatico Limited (ASX – KYP), a leading Australian RegTech company specialising in workforce compliance and pre-employment screening, has announced a strong finish to the 2025 financial year. The company reported total revenue of $32.1 million, marking a 12% increase over the previous year. This growth was largely driven by its software-as-a-service (SaaS) segment, which surged 54% to $14.9 million.
The fourth quarter alone saw SaaS revenue climb 57% year-on-year to $4.4 million, representing over half of total revenue for the quarter. This translated into an annualised SaaS run rate of $17.5 million, underscoring the company’s accelerating shift towards recurring, subscription-based income streams.
Cash Accretive Performance Amid Strategic Investment
Despite investing more than $3.5 million into developing new compliance technology, Kinatico remained cash accretive for the year. The company closed FY25 with $10.2 million in cash and cash equivalents, a modest increase from the prior year, and importantly, carries no debt. This financial discipline provides Kinatico with a solid foundation to support its ongoing innovation and expansion plans.
Looking Ahead – Building on Compliance Innovation
CEO Michael Ivanchenko highlighted the dual focus on delivering strong financial results while advancing Kinatico’s new solution, Kinatico Compliance. This platform aims to enhance the company’s SaaS offering by integrating real-time workforce compliance monitoring with regulatory and business policy requirements. The company’s established CVCheck pre-employment screening service continues to underpin its market leadership in Australasia.
With a growing footprint in the RegTech space and plans for global expansion, Kinatico is positioning itself to capitalize on increasing demand for scalable compliance solutions across industries. The company’s ability to combine technology innovation with solid financial management will be critical as it navigates competitive and regulatory challenges ahead.
Bottom Line?
Kinatico’s strong SaaS momentum and cash-positive stance set the stage for ambitious growth, but investors will watch closely for execution on its new compliance platform and global expansion.
Questions in the middle?
- How will Kinatico’s new compliance technology impact future revenue growth and margins?
- What are the company’s plans and timelines for global expansion beyond Australasia?
- How sustainable is the current SaaS growth rate amid increasing competition in RegTech?