archTIS Ltd. AI Stock Analysis
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archTIS Ltd. (AR9) AI Stock Analysis
archTIS Ltd.
(ASX:AR9)
Financial performance weighs heavily on the score due to unprofitability and cash flow issues despite revenue gains. Positive technical indicators offer some offset, while weak valuation from negative earnings caps upside.
archTIS Ltd. (AR9) vs. iShares MSCI Australia ETF (EWA)
- Market Cap
- AUD 38.22M
- Dividend Yield
- ―
- Average Volume (3M)
- 933.55K
- Price to Earnings (P/E)
- -2.2
- Beta (1Y)
- 0.45
- Revenue Growth
- 119.88%
- EPS Growth
- -118.99%
- Country
- Australia
- Employees
- 17
- Sector
- Technology
- Sector Strength
- 61
- Industry
- Information Technology Services
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 collab...
archTIS Ltd. Earnings Call Summary
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.
Q2-2026 Updates
Positive Updates
Negative 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
Revenue growth from 4.6M to 13.4M shows potential, but persistent net losses, volatile gross margins, negative cash flows in recent periods, and rising debt levels highlight ongoing profitability and liquidity challenges.
Income Statement
32NegativeBalance Sheet
38NegativeCash Flow
25Negative| Breakdown | TTM | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.35M | 13.35M | 6.07M | 9.80M | 6.37M | 4.64M |
| Gross Profit | 3.92M | 3.92M | 4.64M | 5.85M | -1.44M | -508.10K |
| EBITDA | -10.91M | -10.80M | -2.46M | 263.85K | -3.77M | -5.79M |
| Net Income | -16.33M | -16.33M | -4.76M | -4.26M | -8.24M | -9.45M |
Balance Sheet | ||||||
| Total Assets | 35.65M | 35.65M | 16.79M | 16.62M | 24.88M | 26.89M |
| Cash, Cash Equivalents and Short-Term Investments | 2.86M | 2.86M | 3.15M | 2.92M | 3.25M | 6.52M |
| Total Debt | 8.52M | 8.52M | 2.17M | 1.17M | 780.36K | 985.76K |
| Total Liabilities | 20.05M | 20.05M | 11.39M | 7.17M | 11.44M | 7.69M |
| Stockholders Equity | 15.60M | 15.60M | 5.40M | 9.44M | 13.44M | 19.20M |
Cash Flow | ||||||
| Free Cash Flow | -15.37M | -15.37M | 2.92M | -1.10M | -5.07M | -10.60M |
| Operating Cash Flow | -15.36M | -15.36M | 2.96M | 1.64M | -4.96M | -10.57M |
| Investing Cash Flow | -17.01M | -17.01M | -3.49M | -2.74M | -40.08K | -1.78M |
| Financing Cash Flow | 32.07M | 32.07M | 766.48K | 773.36K | 1.73M | 6.14M |
archTIS Ltd. Technical Analysis
Price Trends
Market Momentum
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 0.08 is above the 20-day moving average (MA) of 0.08, above the 50-day MA of 0.07, and above the 200-day MA of 0.07, indicating a bullish trend. The MACD of 0.00 indicates Positive momentum. The RSI at 61.24 is Neutral, neither overbought nor oversold. The STOCH value of 53.85 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
Overall Rating
AU:NXL74.2Outperform
AU:OCL70Outperform- AU:AR952Neutral
AU:PRO44Neutral
AU:ID842Neutral
AU:CF138Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| AU:NXL | 74Outperform | AUD 568.56M | 33.50 | 5.34% | ― | 18.83% | ― |
| AU:OCL | 70Outperform | AUD 618.89M | 16.49 | 33.67% | 4.04% | 6.59% | 4.49% |
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
| AU:AR9 | 52Neutral | AUD 39.19M | -2.18 | -80.59% | ― | 119.88% | -118.99% |
| AU:PRO | 44Neutral | AUD 5.56M | -0.70 | 168.57% | ― | -15.34% | -19.32% |
| AU:ID8 | 42Neutral | AUD 3.59M | -0.68 | 564.22% | ― | -1.21% | -20.92% |
| AU:CF1 | 38Underperform | AUD 14.10M | -2.96 | -146.51% | ― | -23.49% | -57.78% |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| AU:AR9 | archTIS Ltd. | 0.08 | -0.04 | -31.30% | |
| AU:CF1 | Complii Fintech Solutions Ltd | 0.02 | -0.00 | -16.00% | |
| AU:PRO | Prophecy International Holdings Ltd | 0.07 | -0.10 | -59.41% | |
| AU:OCL | Objective Corporation Limited | 6.43 | -10.70 | -62.47% | |
| AU:NXL | Nuix Ltd. | 1.65 | -0.30 | -15.64% | |
| AU:ID8 | Identitii Ltd. | 0.73 | -0.07 | -8.75% |
archTIS Ltd. Corporate Events
archTIS boosts margins and defence deals as Spirion integration pays off
archTIS Ltd. reported a strong Q1 FY2027, highlighting that the post-Spirion integration has created a leaner, higher-margin business with annual recurring revenue rising to A$13.3 million, more than triple the prior comparable period. Quarterly reve...
archTIS Hits Record Cash Quarter as Defence Contracts and Recurring Revenue Surge
archTIS reported a record September quarter, with customer receipts rising to $5.3M and surpassing operating payments for the first time since the Spirion acquisition. Revenue climbed to $3.6M and gross margin expanded to 79%, as the company shifted...
archTIS extends CBA lending facility to bolster non‑dilutive growth funding
archTIS has secured an extension of its Commonwealth Bank of Australia lending facility, pushing the maturity of a A$4M tranche from 30 October 2026 to 30 April 2027. The company now has A$2M maturing on 29 January 2027, A$2M on 31 January 2027 and A...
archTIS to brief investors on Q1 FY2027 performance via webinar
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, attribu...
archTIS and Pexip join forces on real-time clearance-based video security
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 joint s...
archTIS Plans Issue of Options and Performance Rights to Bolster Capital Structure
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 placemen...
archTIS Sets Fully Virtual AGM, Urges Shareholder Participation
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 th...
archTIS lodges ASX governance key and affirms compliance
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 Lis...
archTIS sets timetable for 2026 AGM and director nominations
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-prem...
archTIS expands into U.S. banking with new Spirion contract
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 extends a...
archTIS wins A$445,000 three-year Spirion contract in U.S. private aviation push
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 handles lar...
archTIS details progress on major U.S. Department of Defense opportunity
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 bin...
archTIS Doubles Revenue but Posts Deeper Loss After Spirion Acquisition
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% from the p...
archTIS Options Lapse Trims Potential Future Share Dilution
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 the...
archTIS Targets Breakeven and Non-Dilutive Funding Amid DoD-Linked Valuation Overhang
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 awar...
archTIS posts record FY2026 as defence deals and Spirion integration reshape business
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 low...
archTIS schedules investor webinar to discuss Q4 FY2026 performance
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 controls...
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.
Date of analysis: Oct 06, 2026