Kinatico Ltd (ASX:KYP) is a ‘Know Your People’ regtech company providing workforce compliance monitoring and management technology and services. The company has reported a 50% increase in FY25 adjusted NPAT to $1.5m, almost 30% ahead of our forecast for the year. Adjusted EBITDA for the year was $4.7m, up 21% on the previous corresponding period (pcp) on the previously reported 12% increase in revenue to $32.1m. Kinatico’s adjusted EBITDA and operating cash flow were respectively 5.5% and 20% ahead of our forecasts. The FY25 EBITDA adjusted margin jumped 101 basis points to 14.6%, again well ahead of our forecast for 13.8%, demonstrating the benefit of the shift to higher-margin SaaS (Software-as-a-Service) revenue, which made up 46% of the total in FY25, compared with 34% in FY24. SaaS revenue grew 54% in FY25 at the end of Q4 was tracking at $17.5m on an annualised basis. We have adjusted our forward estimates for the better than forecast cost containment reflected in the operating margins and rolled our model forward by 12 months. This has led to an 18% increase in our adjusted NPAT forecast in FY26f and 20% increase in our FY27f adjusted NPAT forecast. Our DCF valuation has increased to $0.45/share from $0.38/share, implying an EV/Revenue multiple of 5.5x FY26f. A +/-10% sensitivity analysis on our base-case forecasts yields a valuation range of $0.28-$0.70/share.