Kinatico Ltd (ASX:KYP) is a ‘Know Your People” regtech company providing workforce compliance monitoring and management technology and services. KYP announced at its 24 October AGM that its Q1 FY26 revenue had increased 14% on the previous corresponding period (pcp) to a record $9.1m, with Subscription-as-a-Service (SaaS) revenue for the quarter increasing 58% on the previous corresponding period (pcp) to $4.8m or 53% of total revenue. EBITDA for the quarter increased 21% to $1.4m. Annualised SaaS revenue is up 58% on the pcp to $19.2m. Transactional revenue for the quarter declined 14% on the pcp to $4.3m but was up 5% on Q4 FY25. We model that transactional revenue will decline by 7% in FY26f to $16.1m but that SaaS revenue will grow 34% to $20m over the same period. Q1 appears to put the company well on the way to meet or exceed our forecasts, with the decline in transactional revenue lower than our forecast and growth in SaaS revenue well ahead of our annualised rate. We have not changed our forecasts following the Q1 result, preferring to wait to see the rate of take-up generated from Kinatico Compliance’s imminent marketing launch. As a consequence, our DCF valuation of $0.45/share is unchanged. A +/-10% sensitivity analysis on our base-case forecasts yields a valuation range of $0.28-$0.70/share.
