Kinatico Ltd (ASX:KYP) is a ‘Know Your People’ regtech company providing workforce compliance monitoring and management technology and services. In a trading update, KYP has reported a 12% year-on-year increase in Q2 FY26 revenue to $8.6m, and a 42% year-on-year increase in SaaS (Software as a Service) revenue to $4.9m. SaaS revenue accounted for 58% of total revenue for the quarter, compared to 46% in Q2 FY25 and 33% in Q2 FY24. On a half-year basis, Kinatico reported H1 FY26 SaaS revenue of $9.7m, up 49% on the previous corresponding period (pcp) and total revenue of $17.6m, which was 2% below RaaS forecasts as a result of the seasonal dip in transactional revenue. H1 SaaS revenue was 4% ahead of our forecast of $9.3m while screening and verification (SaV) revenue was 9% below our forecast of $8.7m. Kinatico also noted that its cash as at 31 December was $10.4m, an increase of $0.6m on the cash held at the end of H1 FY25. We have not changed our forecasts following this announcement and will wait for the H1 FY26 results release in February to consider our FY26 forecasts. Our DCF valuation remains unchanged at $0.45/share, implying an EV/Revenue multiple of 5.5x FY26f.
