Fund Manager Summary on Kinatico Ltd (ASX:KYP)
In January 2026, DMX Asset Management commented that Kinatico Ltd (ASX:KYP) was experiencing a temporary slowdown in quarter‑on‑quarter SaaS exit‑rate growth as it transitioned from its legacy compliance offering to a new organisational compliance management platform, noting Q2 SaaS revenue of $4.9m (up 42%) and H1 SaaS of $9.7m (up 49%) while expecting re‑acceleration in the second half as marketing and product traction increase. Across DMX’s commentary since October 2025, the consensus view is that Kinatico has shifted from a commoditised screening business to a high‑growth compliance reg‑tech SaaS provider under CEO Michael Ivanchenko, with an earlier update highlighting Q1 FY26 SaaS revenue up 58% to $19.2m and sustained multi‑year SaaS growth, but that the recent product transition interrupted momentum and, amid broader software market nervousness, contributed to a sharp share sell‑off; actionable considerations are to monitor re‑acceleration of SaaS exit‑rate growth and customer adoption of the new platform, the effectiveness of the marketing and go‑to‑market ramp, the realisation of operating leverage and balance sheet capacity to support domestic and international expansion, while principal risks include execution delays, slower-than-expected product uptake and valuation pressure in the software sector.
Commentary From The Managers
There are 2 insights from 1 fund managers regarding their investment in Kinatico Ltd (ASX:KYP) available on Thesis Tracker.
Unlock Updates With ThesisTracker Pro
Don’t let information asymmetry undermine your investment returns. Join other engaged investors on ThesisTracker Pro.
Updates are made available to members within 12 hours of being released. The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
DMX Asset Management
31 Jan 2026
$0.20
Summary
- DMX Asset Management believes Kinatico remains a compelling long‑term growth and value opportunity and continues to hold because of its strong balance sheet, historical track record of strong SaaS growth, emerging operating leverage and a large domestic and international market opportunity.
- Q2 SaaS revenue $4.9m (+42%); H1 SaaS revenue $9.7m (+49%).
- Quarter‑on‑quarter incremental SaaS growth slowed to $100k ($400k annualised).
- SaaS first‑half exit‑rate growth decelerated from 59% at the end of Q1 to 41%.
- The slowdown is attributed to transitioning customers from the legacy compliance product to the new‑generation organisational compliance management platform launched during the quarter.
- DMX Asset Management expects growth to re‑accelerate in H2 as marketing ramps and the new product gains traction.
- Market reaction: shares were sold off by 33% during the month (Kinatico fell by a third), which cost the fund nearly 1%.
- Context: the pullback occurred amid heightened market nervousness around software stocks and a global rout driven by AI fears.
- Business description: a SaaS provider of workforce solutions—employee screening, verification tools, and ongoing compliance.
- Share performance: the stock had performed very strongly through 2024 and 2025, and as long‑term investors we remain confident in the company’s underlying value and growth potential.
- Overall view: given the temporary interruption to momentum, the company’s product transition, balance sheet strength, operating leverage and addressable market, DMX Asset Management continues to see Kinatico as one of the better value/growth propositions among ASX‑listed SaaS exposures.
DMX Asset Management
31 Oct 2025
$0.36
Summary
- DMX Asset Management has held Kinatico (ASX:KYP) since its early days as CV Check, recognizing its potential despite a commoditized offering.
- A CEO change in 2021 brought Michael Ivanchenko, tasked with enhancing KYP’s compliance reg-tech software, leading to significant growth.
- KYP has achieved annual SaaS growth exceeding 50% over the last three years, indicating strong market demand.
- The company is now attracting significant interest from brokers and investors, reflecting its successful transformation.
- For Q1 of FY26, KYP’s SaaS revenue grew by 58% to $19.2 million, with management noting that "momentum is building, not just maintaining".
- A recent Forbes article highlights the excitement surrounding KYP’s compliance offerings, further validating its market position.
The completeness, accuracy or current status of the investments referenced are not guaranteed.
Investment Ideas Scanner
Why fund managers back Brazilian Rare Earths (ASX:BRE) after processing breakthroughs doubled ore grade and confirmed 97% extraction
Why DMX sold Galan Lithium (ASX:GLN) after 71% rally
Why fund managers still back Credit Corp (ASX:CCP) — guidance intact, trading on 11x earnings
Prime Value May 2025: Why they bought Arena REIT No 1 (ASX:ARF) — low gearing & long WALE
Why fund managers are buying Kip McGrath (ASX:KME): Damian Banks, 3x EV/Cash EBIT
Whitehaven Coal (ASX:WHC): why managers are buying - strong ops, cost cuts & buybacks
Why fund managers fear for BSA Ltd (ASX:BSA) after NBN Co tender loss
Austal (ASX:ASB): $220m raise, Hanwha stake & US shipyard expansion
Acorn Capital: QuickFee (ASX:QFE) — June capital raise explained
Why fund managers back Adore Beauty (ASX:ABY): growth, cash & loyal customers
Frequently Asked Questions
Who is investing in Kinatico Ltd (ASX:KYP)?
Fund managers including DMX Asset Management have invested in Kinatico Ltd (ASX:KYP).
Why do fund managers invest in Kinatico Ltd?
Fund managers invest in Kinatico Ltd due to its strong growth potential in the compliance reg-tech sector. Following a leadership change and a strategic focus on software offerings, Kinatico has achieved over 50% annual SaaS growth. Recent performance highlights include a 58% increase in quarterly SaaS revenue, reaching $19.2 million. The company’s solid customer base and improving market recognition further enhance its attractiveness, aligning with favorable risk/reward profiles for investors.
What happened to Kinatico Ltd (ASX:KYP)?
Fund managers are investing in Kinatico Ltd (ASX:KYP) due to its impressive growth trajectory in compliance reg-tech software following a successful CEO transition in 2021. The company has consistently achieved over 50% annual SaaS growth for the past three years, with a significant 58% increase in SaaS revenue to $19.2 million reported for Q1 FY26. This sustained momentum is attracting heightened interest from brokers and investors, reflecting confidence in Kinatico's evolving business model and strong market position.
What is the short interest in Kinatico Ltd (ASX:KYP)?
According to ASIC filings, there is negligible or no short interest in Kinatico Ltd (ASX:KYP).
What does Kinatico Ltd (ASX:KYP) do?
Kinatico Ltd. engages in the provision of screening and verification services. It provides police checks, employment screening, and tenant checks to employers, industry associations and individuals through its proprietary online platform, cvcheck.com. The company was founded by Steve Carolan on November 9, 2004 and is headquartered in Perth, Australia.