Kinatico Posts 12% Revenue Growth, SaaS Now Half of Total Revenue
Kinatico has reported a robust FY25 with 12% revenue growth to $32.1 million, driven by a 54% surge in SaaS revenue and the launch of its new Kinatico Compliance product. The company’s strong cash flow and expanding market position signal a promising future in the evolving RegTech landscape.
- 12% increase in total revenue to $32.1 million
- SaaS revenue up 54%, now representing nearly half of total revenue
- Net profit after tax (NPAT) rises 45% to $1.1 million
- Launch of Kinatico Compliance product funded from operating cash flow
- Strong cash reserves and disciplined capital management underpin growth
Strong Financial Momentum in FY25
Kinatico has delivered a solid financial performance for the fiscal year 2025, reporting a 12% increase in consolidated revenue to $32.1 million. This growth was accompanied by a 45% jump in net profit after tax (NPAT) to $1.1 million and a 19% rise in EBITDA to $4.3 million. The company’s disciplined approach to financial management has resulted in a 240% net increase in cash and cash equivalents, reaching $10.2 million by year-end.
SaaS Transformation Driving Recurring Revenue
Central to Kinatico’s growth story is its strategic shift towards a Software-as-a-Service (SaaS) model. SaaS revenue surged by 54% year-on-year, now accounting for between 46% and 50% of total revenue. This transition is not only boosting top-line growth but also enhancing revenue predictability, supported by industry-leading customer retention rates. The annualised SaaS revenue based on Q4 run-rate hit $17.5 million, underscoring accelerating momentum in recurring revenue streams.
Market Expansion and Product Innovation
Kinatico’s recent launch of the Kinatico Compliance product marks a significant milestone, funded entirely from operating cash flow. This new offering is designed to meet rising compliance demands across sectors such as aged care, energy, industrial, education, and government. With over 10,000 organisations currently served, Kinatico is well-positioned to capitalize on a growing RegTech market estimated to expand from $1.2 billion in 2023 to $2.7 billion by 2030.
Strategic Outlook and Growth Potential
The company’s leadership highlights a clear growth runway supported by a scalable technology platform, customer-driven product development, and a diversified customer base ranging from SMEs to large enterprises. Kinatico’s investment thesis emphasizes sustainable, profitable growth with a focus on expanding its serviceable addressable market and leveraging upsell opportunities within its existing client portfolio.
Navigating a Complex Compliance Landscape
As regulatory pressures intensify globally; covering data privacy, ESG reporting, wage theft laws, and more; Kinatico’s solutions are increasingly relevant. The company’s ISO27001 certification and government accreditations bolster its credibility, while its adaptable platform addresses the needs of organisations with workforces ranging from a handful to tens of thousands.
Bottom Line?
Kinatico’s FY25 results set a strong foundation, but the next challenge will be sustaining SaaS momentum amid evolving regulatory demands.
Questions in the middle?
- How quickly will Kinatico Compliance gain traction in new and existing markets?
- What are the company’s plans to expand beyond its current $10,000 customer base?
- How will Kinatico navigate competitive pressures as RegTech markets grow?
