archTIS Ltd. (AU:AR9)
ASX:AR9
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archTIS Ltd.
(Sydney:AR9)
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Rating:42Neutral
Price Target:
AU$0.06
▼(-49.17% Downside)
Action:ReiteratedDate:04/22/26
The score is mainly constrained by weak financial performance (declining revenue and very negative profitability), partially offset by improving cash flow. Technicals add pressure due to a clear downtrend versus key moving averages, while valuation is difficult to justify with a negative P/E and no dividend yield support.
Positive Factors
Free Cash Flow Strength
archTIS's very large free cash flow improvement (+821%) and near‑breakeven cash conversion show the company can generate operating cash despite accounting losses. Durable cash inflows reduce financing urgency, support product and sales investment, and extend runway for strategic execution.
Negative Factors
Declining Revenue & Deep Losses
A 12% revenue decline coupled with extreme operating losses indicates the business has not reached sustainable commercial traction. Structural revenue weakness and negative margins limit reinvestment capacity and heighten execution risk, making durable recovery dependent on regaining revenue growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Strength
archTIS's very large free cash flow improvement (+821%) and near‑breakeven cash conversion show the company can generate operating cash despite accounting losses. Durable cash inflows reduce financing urgency, support product and sales investment, and extend runway for strategic execution.
Read all positive factors
archTIS Ltd. (AR9) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$30.91M
Dividend YieldN/A
Average Volume (3M)1.16M
Price to Earnings (P/E)―
Beta (1Y)0.39
Revenue Growth36.04%
EPS Growth-71.94%
CountryAU
Employees23
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.03
Shares Outstanding482,948,970
10 Day Avg. Volume1,412,754
30 Day Avg. Volume1,160,783
Financial Highlights & Ratios
PEG Ratio-1.21
Price to Book (P/B)12.21
Price to Sales (P/S)10.86
P/FCF Ratio22.62
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)-0.02
Revenue Forecast (FY)AU$20.60M
archTIS Ltd. Business Overview & Revenue Model
Company Description
archTIS Limited designs and develops products, solutions, and services for secure information sharing and collaboration in Australia and internationally. It provides Kojensi Saas platform, which enables private and public sector organizations to s...
How the Company Makes Money
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archTIS Ltd. Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Sep 01, 2026
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
35
Negative
Balance Sheet
45
Neutral
Cash Flow
60
Neutral
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.39M | 6.07M | 9.80M | 6.37M | 4.64M | 4.63M |
| Gross Profit | 4.87M | 4.64M | 5.85M | -1.44M | -508.10K | 1.36M |
| EBITDA | -9.03M | -6.29M | 263.85K | -3.77M | -5.79M | -1.53M |
| Net Income | -9.48M | -4.76M | -4.26M | -8.24M | -9.45M | -2.99M |
Balance Sheet | ||||||
| Total Assets | 40.76M | 16.79M | 16.62M | 24.88M | 26.89M | 30.29M |
| Cash, Cash Equivalents and Short-Term Investments | 6.49M | 3.15M | 2.92M | 3.25M | 6.52M | 12.74M |
| Total Debt | 2.50M | 2.17M | 1.17M | 780.36K | 985.76K | 1.08M |
| Total Liabilities | 15.84M | 11.39M | 7.17M | 11.44M | 7.69M | 10.65M |
| Stockholders Equity | 24.92M | 5.40M | 9.44M | 13.44M | 19.20M | 19.65M |
Cash Flow | ||||||
| Free Cash Flow | -5.34M | 2.92M | -1.10M | -5.07M | -10.60M | -568.46K |
| Operating Cash Flow | -5.30M | 2.96M | 1.64M | -4.96M | -10.57M | -464.68K |
| Investing Cash Flow | -18.51M | -3.49M | -2.74M | -40.08K | -1.78M | 227.28K |
| Financing Cash Flow | 27.97M | 766.48K | 773.36K | 1.73M | 6.14M | 10.56M |
archTIS Ltd. Technical Analysis
Neutral
0.12
Price Trends
0.08
Positive
0.10
Negative
0.12
Negative
Market Momentum
>-0.01
Negative
56.31
Neutral
79.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AR9, the sentiment is Neutral. The current price of 0.12 is above the 20-day moving average (MA) of 0.07, above the 50-day MA of 0.08, and below the 200-day MA of 0.12, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 56.31 is Neutral, neither overbought nor oversold. The STOCH value of 79.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
48 Neutral | AU$22.01M | -13.76 | 46.05% | ― | -0.91% | 1.85% | |
45 Neutral | AU$26.57M | -3.83 | -153.09% | ― | 6.66% | ― | |
43 Neutral | AU$14.42M | -2.00 | 227.23% | ― | 4.08% | -6.25% | |
42 Neutral | AU$30.91M | -1.84 | -62.57% | ― | 36.04% | -71.94% | |
42 Neutral | AU$68.07M | -4.46 | -86.31% | ― | ― | ― | |
39 Underperform | AU$7.49M | -0.46 | 783.67% | ― | -13.82% | -132.50% |
* Technology Sector Average
AU:AR9
archTIS Ltd.
0.06
<0.01
4.92%
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archTIS Ltd. Corporate Events
archTIS Reports Lapse of Performance Rights and Options, Trimming Future Share Dilution
Apr 7, 2026
archTIS Ltd. has notified the market that a series of performance rights and options on issue have lapsed after their respective vesting or performance conditions were not satisfied by the 2 April 2026 deadline. The cessation affects several class...
archTIS Issues Over 5.5 Million New Unquoted Warrants
Mar 23, 2026
archTIS Ltd. has notified the market of the issue of 5,508,014 unquoted warrants, designated AR9W01, with an exercise price of $0.091 and an expiry date of 23 March 2031. The warrants were issued on 23 March 2026, expanding the company’s poo...
archTIS Plans Issue of Long-Dated Warrants to Bolster Funding Flexibility
Mar 23, 2026
archTIS Ltd. has notified the ASX of a proposed issue of up to 5,508,014 new warrants under the code AR9W01, each with an exercise price of A$0.091 and expiring on 23 March 2031. The warrants, to be issued via a placement or similar mechanism on 2...
archTIS settles Regal facility fees with warrants as it leans on expanded bank funding
Mar 22, 2026
archTIS Limited has entered into a Warrant Deed with Regal Partners Holdings following the mutual termination of a previously agreed senior secured delayed draw debt facility. To settle remaining fee obligations tied to the now-terminated Regal cr...
archTIS Director Daniel Lai Updates Equity Holdings After Option Expiry
Mar 6, 2026
archTIS Limited has disclosed a change in Managing Director Daniel Lai’s interests in the company’s securities following the expiry of a tranche of unlisted options. Lai’s 210,084 AR9O15 unlisted options, exercisable at $0.1428 a...
archTIS Options Lapse, Trimming Potential Future Dilution
Mar 6, 2026
archTIS Ltd. has informed the market that 1,119,423 options with an exercise price of A$0.1428, scheduled to expire on 6 March 2026, have lapsed unexercised and therefore ceased to exist as securities on issue. The expiry of these options slightly...
archTIS Issues Cautionary Market Update Presentation
Feb 27, 2026
archTIS Limited has released a market update presentation outlining information about the company for investors and stakeholders, while stressing that the material is for informational purposes only. The company emphasises that the presentation is...
archTIS Doubles Revenue but Books Deeper Half-Year Loss
Feb 27, 2026
archTIS Limited reported a sharp increase in revenue for the half year ended 31 December 2025, with sales from ordinary activities up 120% to $6.1 million compared with the prior corresponding period. Despite this top-line growth, the company reco...
archTIS Wins Transatlantic Military Alliance Deal and Expands Funding for Growth
Feb 26, 2026
archTIS Limited has secured a contract with a U.S. and European military alliance to deploy its NC Protect software for secure collaboration across transatlantic allied defence operations. The deal, covering more than 2,500 users, has an initial v...
archTIS trims option overhang as two tranches of securities lapse
Feb 25, 2026
archTIS Ltd. has notified the ASX of the cessation of two tranches of options, AR9AU and AR9AW, after the conditional rights attached to these securities lapsed on 14 January 2026. The options, expiring in March 2026 and December 2026 with exercis...
archTIS Issues New Tranches of Unquoted Equity for Employee Incentive Scheme
Feb 25, 2026
archTIS Ltd. has notified the market of the issue of several tranches of unquoted equity securities under its employee incentive scheme, all of which are not intended to be quoted on the ASX. The company will issue a total of 4,847,024 AR9PR18 res...
archTIS sets investor webinar to outline FY26 first-half performance and market activity
Feb 25, 2026
archTIS Limited has scheduled an investor webinar to provide an update on its FY26 first-half performance for the period ended 31 December 2025 and to brief shareholders on current market activities. The online event, to be hosted via Zoom by CEO ...
archTIS Issues Q2 FY26 December 2025 Quarterly Report With Investment Disclaimers
Jan 30, 2026
archTIS Limited has released its Q2 FY26 December 2025 quarterly report presentation, outlining information on its operations and performance for the period. The document is presented strictly for informational purposes, with the company emphasizi...
archTIS Rides U.S. DoD Momentum and Spirion Synergies to 308% ARR Surge
Jan 30, 2026
archTIS reported a strong December 2025 quarter marked by accelerating traction in the U.S. defence sector, highlighted by the successful deployment of its NC Protect platform into a live Microsoft DoD365 production environment and the renewal of ...
archTIS Seeks ASX Quotation for Additional 65,728 Ordinary Shares
Jan 29, 2026
archTIS Limited has applied to the Australian Securities Exchange (ASX) for quotation of an additional 65,728 fully paid ordinary shares under its existing AR9 ticker. The new shares, issued on 28 January 2026 following the exercise or conversion ...
archTIS schedules Q2 FY2026 investor webinar to brief market on performance outlook
Jan 29, 2026
archTIS Limited has scheduled an investor webinar via Zoom for Friday, 30 January 2026 to provide a company update and discuss its Quarterly Activities Report and Appendix 4C for the second quarter of FY2026, covering the period ended 31 December ...
archTIS Delivers U.S. DoD Development Milestone, Paving Way for Larger Licensing Deal
Jan 27, 2026
archTIS Limited has completed the custom software development work for its U.S. Department of Defense project announced in October 2025, delivering mission-specific capability enhancements that are now production-ready. With only a third-party int...
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.