Kinatico Reports 49.5% SaaS Revenue Growth, Launches Next-Gen Compliance Tool
Kinatico Ltd reports robust H1 FY26 results, driven by a 49.5% surge in SaaS revenue and the launch of its AI-powered Kinatico Compliance platform, significantly broadening its addressable market.
- 49.5% year-over-year SaaS revenue growth in H1 FY26
- Launch of Kinatico Compliance (KC) platform targeting SMBs and large businesses
- Addressable market expanded from $250 million to approximately $1.2 billion in Australia
- Strong $10 million sales pipeline in large business segment
- Ongoing AI integration with ISO 42001 certification underway
Strong Financial Momentum
Kinatico Ltd (ASX, KYP) has delivered a compelling first half for FY26, showcasing a 49.5% increase in SaaS revenue and a remarkable 106.9% growth in net profit after tax (NPAT) compared to the previous corresponding period. This financial strength underscores the company’s successful transition towards a SaaS-driven business model, with recurring revenue now forming a larger share of total income.
Free cash flow also improved by 12.7%, reflecting disciplined cost management alongside revenue growth, positioning Kinatico with a robust balance sheet to fund ongoing expansion.
Kinatico Compliance, A Game-Changing Launch
The highlight of the period was the launch of Kinatico Compliance (KC), a next-generation AI-enabled compliance platform designed to serve a much broader market. Unlike traditional compliance software that often requires lengthy deployments and caters mainly to large enterprises, KC offers rapid deployment and ease of use, making it accessible to small and medium businesses (SMBs) as well as large organisations.
This strategic pivot has expanded Kinatico’s addressable market from an estimated $200-250 million focused on enterprises to approximately $1.2 billion across Australia, including around 300,000 SMBs and 5,000 large businesses. Early traction is promising, with about 35 SMB signups and a $10 million pipeline in the large business segment, indicating strong market validation.
AI as a Core Competitive Advantage
Kinatico’s AI integration is not just a feature but embedded deeply within its product and operational framework. The company has developed proprietary AI models and leverages licensed large language models (LLMs) like Claude across multiple functions, from customer support to compliance calculations.
Importantly, Kinatico is advancing its responsible AI governance, with ISO 42001 certification underway, complementing its existing ISO 27001 accreditation. This focus on transparency, privacy, and accountability aims to build trust and sustain a competitive moat in a complex regulatory environment.
Strategic Execution and Market Expansion
Kinatico’s go-to-market strategy now targets all business sizes with tailored approaches, account-based marketing for large enterprises, self-service and product-led growth for SMBs, and migration programs for existing customers. The company has also optimised digital media spend and launched high-impact outdoor campaigns in key Australian cities to support KC adoption.
Looking ahead, Kinatico plans to accelerate SMB deployments, convert its large business pipeline into revenue, and continue enhancing AI capabilities to sustain SaaS growth in the second half of FY26.
Bottom Line?
Kinatico’s AI-driven compliance platform and expanded market reach set the stage for accelerated growth, but execution in SMB adoption and pipeline conversion will be critical to watch.
Questions in the middle?
- How quickly will Kinatico convert its $10 million large business pipeline into actual revenue?
- What impact will the ongoing ISO 42001 AI governance certification have on customer trust and adoption?
- Can Kinatico sustain its rapid SaaS growth while scaling support for a vastly expanded SMB customer base?
