Kinatico Ltd (ASX:KYP) is a ‘Know Your People’ regtech company providing workforce compliance monitoring and management technology and services. The company has reported H1 FY26 adjusted EBITDA of $3.0m, up 32% on the previous corresponding period (pcp) and 4% ahead of our forecast. Higher-margin SaaS (Software as a Service) revenue, which accounted for 55% of total revenue, was a key driver of EBITDA growth as the company demonstrated its operating leverage, evident in the better-than-forecast adjusted EBITDA margin of 16.9% (up 17% on the pcp and ahead of our forecast for 16.0%). The company presented a positive outlook for H2 FY26 with its SaaS pipeline of $10m almost double its historical average. Management expects this to drive the acceleration in SaaS revenue in H2 and beyond. Management also tackled the artificial intelligence (AI) disruption theme sweeping the tech sector, highlighting that rather than seeing AI as a disruptor, Kinatico has embraced AI within its business and was using it to its advantage to both develop the Kinatico Compliance platform and as a core business tool across the company. We have upgraded our FY26 EBITDA forecast by 5.5% to reflect the better-than-forecast H1 margins and this has flowed through to FY27 (+12%) and FY28 (+6%). An increase in our house risk-free rate to 4.5% has resulted in no change to our DCF valuation of $0.45/share. A +/-10% sensitivity analysis on our base-case forecasts yields a valuation range of $0.29-$0.69/share.