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archTIS Ltd.
(Sydney:AR9)
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Rating:54Neutral
Price Target:
AU$0.07
â–¼(-40.83% Downside)
Action:Reiterated
Date:10/06/26
The score is held back primarily by weak financial performance: persistent losses, FY2026 margin instability, and a sharp shift into significant cash burn alongside rising debt. Offsetting this, technicals are supportive with the price trading above all major moving averages and positive momentum indicators. Valuation is constrained by negative earnings (negative P/E) and no dividend yield data.
Positive Factors
Secure information management niche
A focused offering in secure information management addresses an enduring need among government and enterprise organisations. Protecting sensitive data and enabling controlled collaboration can support recurring software licensing, implementation services, and customer relationships that extend beyond individual projects.
Negative Factors
Persistent losses and margin instability
Persistent losses show that revenue growth has not yet translated into a sustainable profit model. The sharp FY2026 deterioration in operating, EBITDA, and gross margins makes earnings power difficult to rely on and could limit the company’s ability to reinvest without additional financing or a material operating improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Secure information management niche
A focused offering in secure information management addresses an enduring need among government and enterprise organisations. Protecting sensitive data and enabling controlled collaboration can support recurring software licensing, implementation services, and customer relationships that extend beyond individual projects.
Read all positive factors
archTIS Ltd. (AR9) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$33.87M
Dividend YieldN/A
Average Volume (3M)921.82K
Price to Earnings (P/E)―
Beta (1Y)0.38
Revenue Growth119.88%
EPS Growth-118.99%
CountryAU
Employees17
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-0.04
Shares Outstanding483,786,400
10 Day Avg. Volume471,611
30 Day Avg. Volume921,822
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)1.98
Price to Sales (P/S)2.32
P/FCF Ratio-2.02
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)>-0.01
Revenue Forecast (FY)AU$29.40M
archTIS Ltd. Business Overview & Revenue Model
Company Description
archTIS Limited engages in the design and development of products, solutions, and services for secure information sharing and collaboration in Australia and internationally. It offers KOJENSI, an accredited classified file sharing and document col...
How the Company Makes Money
archTIS makes money primarily by licensing its software products and providing related services. Revenue is generated through software licence fees (including recurring subscription/maintenance components where applicable) paid by customers that d...
archTIS Ltd. Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 25, 2027
Earnings Call Sentiment Neutral
The call presented a mix of strong strategic and operational progress (308% ARR increase to $16.3M Y/Y, 76% gross margin, DoD custom development delivered on time, Spirion cross-sell pipeline and $4.5M annualized synergy targets) alongside clear near-term financial pressures (operating cash flow -$4.1M, operating expenses up to $5.9M, one-off integration costs, churn and a pending 30-day DoD trial). Management has liquidity actions in place (cash ~$6M, total available funds >$7M, $8M debt facility) and a concrete roadmap (Horizon 1–3) to convert pipeline into recurring revenue, but material execution and timing risk remains in the next quarters.Positive Updates
ARR Growth after Spirion Integration
Annual Recurring Revenue (ARR) increased 308% to $16.3 million (December quarter, FY26 vs prior comparative period) following the Spirion acquisition.
Negative Updates
Elevated Operating Expenses and Cash Burn
Operating expenses (excluding one-offs/integration costs) rose to $5.9 million from $1.5 million in the December 2024 quarter. Operating cash flow was negative $4.1 million for the quarter, reflecting acquisition-related and U.S. expansion costs.
Read all updates
Q2-2026 Updates
Positive
Negative
ARR Growth after Spirion Integration
Annual Recurring Revenue (ARR) increased 308% to $16.3 million (December quarter, FY26 vs prior comparative period) following the Spirion acquisition.
Read all positive updates
Company Guidance
Management guided that archTIS finished Q2 FY26 with ARR of $16.3M (up 308% year‑on‑year, though down from the prior quarter due to expected Spirion churn), quarterly revenue of $4.6M (AU $1.5M; US $3.1M), software revenue $3.8M versus services/equipment $0.8M, gross margin ~76% and licensing ~83% of revenue. They closed the quarter with cash of $6M and total available funds a little over $7M (and have agreed an $8M Regal debt facility), reported operating cash flow of -$4.1M, operating expenses ex‑one‑offs of $5.9M (vs $1.5M prior corresponding quarter) with >$1M of one‑off/integration costs, and expect >$4.5M of annualized cost synergies from the Spirion integration. On commercial milestones: the DoD custom development was delivered, NC Protect is in a 30‑day production trial (the final milestone before larger licensing), they identified $2M of cross‑sell/upsell opportunities in the first 3 months, see a near‑term pipeline including a 30,000‑user opportunity (and smaller 1,000/500‑user deals), and expect follow‑on conversations around ~120,000 DoD licenses; the Spirion purchase price remains under 1.25× current revenue.archTIS Ltd. Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
56
Neutral
Cash Flow
24
Negative
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 13.35M | 6.07M | 9.80M | 6.37M | 4.64M |
| Gross Profit | 3.92M | 4.64M | 5.85M | -1.44M | -508.10K |
| EBITDA | -10.80M | -2.46M | 263.85K | -3.77M | -5.79M |
| Net Income | -16.33M | -4.76M | -4.26M | -8.24M | -9.45M |
Balance Sheet | |||||
| Total Assets | 35.65M | 16.79M | 16.62M | 24.88M | 26.89M |
| Cash, Cash Equivalents and Short-Term Investments | 2.86M | 3.15M | 2.92M | 3.25M | 6.52M |
| Total Debt | 8.52M | 2.17M | 1.17M | 780.36K | 985.76K |
| Total Liabilities | 20.05M | 11.39M | 7.17M | 11.44M | 7.69M |
| Stockholders Equity | 15.60M | 5.40M | 9.44M | 13.44M | 19.20M |
Cash Flow | |||||
| Free Cash Flow | -15.37M | 2.92M | -1.10M | -5.07M | -10.60M |
| Operating Cash Flow | -15.36M | 2.96M | 1.64M | -4.96M | -10.57M |
| Investing Cash Flow | -17.01M | -3.49M | -2.74M | -40.08K | -1.78M |
| Financing Cash Flow | 32.07M | 766.48K | 773.36K | 1.73M | 6.14M |
archTIS Ltd. Technical Analysis
Positive
0.12
Price Trends
0.06
Positive
0.07
Positive
0.07
Negative
Market Momentum
<0.01
Positive
52.01
Neutral
39.29
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AR9, the sentiment is Positive. The current price of 0.12 is above the 20-day moving average (MA) of 0.07, above the 50-day MA of 0.06, and above the 200-day MA of 0.07, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 52.01 is Neutral, neither overbought nor oversold. The STOCH value of 39.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:AR9.
archTIS Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | AU$626.39M | 16.67 | 33.67% | 3.97% | 6.59% | 4.49% | |
70 Outperform | AU$642.42M | 37.07 | 5.34% | ― | 18.83% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | AU$33.87M | -1.87 | -80.59% | ― | 119.88% | -118.99% | |
48 Neutral | AU$5.40M | -0.68 | 168.57% | 0.66% | -15.34% | -19.32% | |
42 Neutral | AU$4.29M | -0.84 | 564.22% | ― | -1.21% | -20.92% | |
41 Neutral | AU$15.33M | -3.52 | -146.51% | ― | -23.49% | -57.78% |
* Technology Sector Average
AU:AR9
archTIS Ltd.
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archTIS Ltd. Corporate Events
archTIS to brief investors on Q1 FY2027 performance via webinar
Oct 27, 2026
archTIS Limited, a specialist in data-centric security solutions, provides software that enables secure collaboration of sensitive information for government, defence, enterprise and regulated industries. The company’s tools apply zero trust...
archTIS and Pexip join forces on real-time clearance-based video security
Oct 13, 2026
archTIS has entered a strategic partnership with Pexip to integrate its Trusted Data Integration platform with Pexip Secure Meetings, bringing real-time, attribute-based access control to the Pexip Infinity video conferencing environment. The join...
archTIS Plans Issue of Options and Performance Rights to Bolster Capital Structure
Oct 13, 2026
archTIS Ltd. has lodged an Appendix 3B with the ASX outlining a proposed issue of new securities, including up to 455,295 unlisted options and 2,276,477 performance rights. The new securities, to be issued on 13 November 2026, form part of a place...
archTIS Sets Fully Virtual AGM, Urges Shareholder Participation
Oct 13, 2026
archTIS Ltd. has called its Annual General Meeting of shareholders to be held online via a virtual meeting facility at 9:30 a.m. AEDT on 13 November 2026. The company is promoting digital participation, providing access to the notice of meeting on...
archTIS lodges ASX governance key and affirms compliance
Sep 30, 2026
archTIS Limited has confirmed that its corporate governance statement for the year ended 30 June 2026 is available on its investor relations website and current as at 30 September 2026. The statement has been approved by the board, satisfying ASX ...
archTIS sets timetable for 2026 AGM and director nominations
Sep 25, 2026
archTIS Limited, a global data-centric security specialist serving government, defence, enterprise and regulated industries, offers zero trust, attribute-based access and data control solutions that protect sensitive information across cloud, on-p...
archTIS expands into U.S. banking with new Spirion contract
Sep 17, 2026
archTIS Limited has secured a A$119,000 contract with a Nasdaq-listed U.S. regional bank for deployment of its Spirion Sensitive Data Platform, building on a recent A$445,000 win to total A$564,000 in contract value over two weeks. The deal extend...
archTIS wins A$445,000 three-year Spirion contract in U.S. private aviation push
Sep 7, 2026
archTIS has secured a three-year contract worth about A$445,000 to deploy its Spirion Sensitive Data Platform with a major U.S.-based private aviation services provider. The win broadens archTIS’ reach into private aviation, a market that ha...
archTIS details progress on major U.S. Department of Defense opportunity
Aug 31, 2026
archTIS has provided an update on its long-running opportunity with the U.S. Department of Defense, confirming the engagement remains positive and active as the company continues direct discussions with key stakeholders. The firm stressed that no ...
archTIS Doubles Revenue but Posts Deeper Loss After Spirion Acquisition
Aug 31, 2026
archTIS Limited reported a 120% surge in sales revenue to $13.35 million for the year ended 30 June 2026, reflecting strong top-line growth after the acquisition of Spirion LLC, but the company’s net loss widened to $16.33 million, up 243% f...
archTIS Options Lapse Trims Potential Future Share Dilution
Aug 21, 2026
archTIS Ltd. has notified the market of the lapse of two tranches of options, AR9AY and AR9AW, after the conditions attached to these securities were not satisfied by the respective expiry dates. The cessation removes 93,867 potential shares from ...
archTIS Targets Breakeven and Non-Dilutive Funding Amid DoD-Linked Valuation Overhang
Jul 31, 2026
archTIS Ltd. acknowledged that its share price has not kept pace with operational progress, citing small-cap liquidity constraints and investor focus on a pending U.S. Department of Defense decision. The company highlighted that a contracted DoD a...
archTIS posts record FY2026 as defence deals and Spirion integration reshape business
Jul 31, 2026
archTIS has closed FY2026 with record contracted sales, surging annual recurring revenue and a more diversified customer base, underpinned by the first full year of the Spirion acquisition. The company has strengthened margins by moving away from ...
archTIS schedules investor webinar to discuss Q4 FY2026 performance
Jul 29, 2026
archTIS Limited, a listed provider of data-centric security solutions, develops software that enables secure collaboration of sensitive data for government, defence, enterprise and regulated industries. Its zero trust, attribute-based access contr...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.