Kinatico (KYP) H1 2026 earnings summary

Executive summary

• Launched Kinatico Compliance (KC), an AI-native platform, expanding the addressable market from 2,000 to up to 300,000 businesses and accelerating revenue growth across all segments.

• Achieved strong SaaS revenue growth, operational leverage, and significant customer wins in enterprise, government, and SMB sectors.

• AI is foundational, with 88% of staff using it daily, driving efficiency, product innovation, and responsible AI governance; ISO 42001 certification process underway.

• Maintained a debt-free balance sheet, positive operating cash flow, and significant cash reserves, supporting ongoing investment and strategic flexibility.

• Transformation strategy toward a pure-play SaaS business model validated by platform adoption and market expansion.

Financial highlights

• SaaS revenue grew 49.5% year-over-year to $9.7 million for H1, now 55.2% of total revenue.

• Net profit after tax (NPAT) increased 106.9% to $0.9 million; EBITDA up 30.3% to $2.7 million.

• Free cash flow positive for the second consecutive half, up 12.7% year-over-year; cash and equivalents at $10.4 million, with zero debt.

• Earnings per share doubled to 0.20c; return on equity increased by 1.5pp to 3.0%.

• Customer base expanded by more than 26% compared to the prior period.

Outlook and guidance

• Focus on accelerating KC adoption in SMB and enterprise segments, aiming for 80% SaaS revenue mix and re-acceleration of SaaS growth as pipeline converts.

• Expectation of increased top-line growth, with more visible impact in Q4 and H2 as KC pipeline converts.

• International expansion targeted for this calendar year.

• Ongoing investment in product enhancement and AI-enabled features, with major platform development complete.

• Strategic priorities include product innovation, market expansion, operational excellence, and customer success.