Kinatico (KYP) H2 2026 earnings summary

Executive summary

• Achieved net profit after tax (NPAT) of AUD 2 million, up 78.5% year-over-year, with EBITDA rising 28.2% to AUD 5.6 million and revenue up 9.4% to AUD 35.2 million.

• SaaS revenue now comprises 58.4% of total revenue, up from 9.2% in FY 2022, reflecting a 53% CAGR and a structural shift in business model.

• AI is fully integrated as the operating system, driving both operational efficiency and product innovation.

• Dual go-to-market strategy enables simultaneous targeting of SMEs and enterprise clients from a single platform.

• Transformation into an AI-native, SaaS-first compliance platform, with FY26 marking a pivotal year for strategic execution.

Financial highlights

• Free cash flow conversion of EBITDA reached 44.8%, up from negative 39.4% in FY 2024.

• Cash and cash equivalents increased to AUD 11.8 million, with four consecutive years of rising profit and no debt or dilution.

• SaaS revenue for Q4 FY 2026 annualized at AUD 22.6 million, up from AUD 17.5 million in the prior period.

• Operating expenses reduced to 50.2% of revenue from 51.3% in FY25.

• NPAT per employee increased 105% year-over-year.

Outlook and guidance

• Continued pursuit of the Rule of 40, with accelerating operational leverage and profit growth.

• Ongoing investment in AI and platform enhancements, funded by internal cash generation.

• Expansion into Southeast Asia is a strategic priority, leveraging existing development base in Vietnam.

• Strong roadmap of AI-driven features and enhancements planned to capitalize on tightening regulatory requirements.

• Market expansion supported by increasing regulatory complexity and a growing serviceable addressable market (SAM) now at 5.6 million workers.