Kinatico’s SaaS Revenue Surges 42% as New Compliance Tool Gains Traction
Kinatico Limited has reported a robust 42% increase in its SaaS revenue for Q2FY26, driven by strong operational execution and the launch of its new Kinatico Compliance solution.
- Q2FY26 SaaS revenue up 42% to $4.9 million
- SaaS now 58% of total revenue, up from 46% a year ago
- H1FY26 total revenue rises 13% to $17.6 million
- Closing cash balance improves to $10.4 million
- Launch of Kinatico Compliance targets SMEs and large enterprises
Strong SaaS Growth Signals Strategic Success
Kinatico Limited (ASX – KYP), a leading player in the RegTech space, has delivered a compelling update for the first half of FY26, showcasing a 42% jump in its software-as-a-service (SaaS) revenue for the second quarter. The company’s SaaS revenue reached $4.9 million in Q2, now representing 58% of total revenue, up from 46% in the prior corresponding period. This shift underscores Kinatico’s successful transition towards a recurring revenue model, which is often prized for its stability and growth potential.
Revenue and Cash Position Strengthen
Total revenue for the first half of FY26 climbed 13% to $17.6 million, reflecting steady demand across Kinatico’s suite of workforce compliance and pre-employment screening services. The company also reported a healthy closing cash balance of $10.4 million, up $0.6 million year-on-year, indicating disciplined financial management amid expansion efforts.
New Product Launch Boosts Market Offering
Adding to the momentum, Kinatico launched its new Kinatico Compliance solution during the period. This product is designed to meet the compliance needs of both small and medium enterprises (SMEs) and large enterprises, integrating real-time workforce compliance monitoring with regulatory requirements. CEO Michael Ivanchenko highlighted the positive reception of this new offering, which complements the company’s existing RegTech portfolio and positions Kinatico well for continued growth.
Operational Leverage Emerging
Ivanchenko also pointed to the emerging operational leverage within the business, noting that disciplined execution has allowed Kinatico to remain cash accretive while scaling. This suggests that the company is managing its growth efficiently, balancing investment in new solutions with maintaining a strong financial footing.
Looking Ahead
While these unaudited flash results paint a positive picture, investors will be keen to see the full audited results and further detail on customer uptake of Kinatico Compliance. The company’s ambition to expand globally with its RegTech solutions adds an extra layer of interest, as it seeks to build on its strong Australasian foundation.
Bottom Line?
Kinatico’s SaaS momentum and new compliance offering set the stage for a pivotal year ahead.
Questions in the middle?
- How quickly will Kinatico Compliance contribute to recurring revenue growth?
- What is the competitive landscape for RegTech solutions targeting SMEs and large enterprises?
- How will Kinatico balance global expansion ambitions with maintaining cash discipline?
