Kinatico (KYP) H1 2026 earnings summary

Executive summary

• Launched the AI-native Kinatico Compliance (KC) platform in October 2025, expanding the addressable market from 2,000 to up to 300,000 businesses and validating product-market fit across SMB and enterprise segments.

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

• 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.

Financial highlights

• SaaS revenue grew 49.5% year-over-year to AUD 9.7 million for H1 FY26, now 55.2% of consolidated revenue.

• Net profit after tax (NPAT) increased 106.9% to nearly AUD 1 million; EBITDA up 30.3%.

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

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

• Gross margin expanded to 65.9% (up 1.8pp); EBITDA margin at 15.5% (up 2.1pp).

Outlook and guidance

• Focus on accelerating KC adoption in both SMB and enterprise segments, aiming for 80% SaaS revenue mix and increased top-line growth as the KC pipeline converts.

• International expansion targeted for this calendar year.

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

• Strategic priorities include operational excellence and customer success.