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archTIS Ltd. (AU:AR9)
ASX:AR9
Australian Market

archTIS Ltd. (AR9) AI Stock Analysis

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AU:AR9

archTIS Ltd.

(Sydney:AR9)

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Neutral 44 (OpenAI - 4o)
Rating:44Neutral
Price Target:
AU$0.10
▼(-21.54% Downside)
The overall stock score is primarily influenced by the company's financial performance, which is challenged by negative profit margins and declining revenues. Technical analysis indicates a bearish trend with weak momentum. Valuation is unattractive due to a negative P/E ratio and no dividend yield. Strong free cash flow growth is a positive aspect but not sufficient to offset other concerns.
Positive Factors
Free Cash Flow Growth
Strong free cash flow growth provides financial flexibility, allowing archTIS to invest in growth opportunities and manage debt effectively.
Core Product Offering
The company's focus on cybersecurity solutions positions it well in a growing industry, with increasing demand for data security across sectors.
Strategic Partnerships
Long-term contracts with government and defense sectors provide stable and recurring revenue, enhancing business sustainability.
Negative Factors
Negative Profit Margins
Persistent negative profit margins indicate ongoing profitability challenges, which could hinder long-term financial health and growth.
Declining Revenue Growth
Declining revenue growth suggests potential issues in market penetration or product demand, impacting future business expansion.
Rising Leverage
Increased leverage can strain financial resources and limit the company's ability to invest in growth or weather economic downturns.

archTIS Ltd. (AR9) vs. iShares MSCI Australia ETF (EWA)

archTIS Ltd. Business Overview & Revenue Model

Company DescriptionarchTIS Ltd. (AR9) is a technology company specializing in information security and data governance solutions. Operating primarily within the cybersecurity sector, archTIS focuses on providing advanced software solutions that facilitate secure access to sensitive information across various industries, including government, defense, and commercial sectors. Its core products include the Nolij and Kojensi platforms, which enable organizations to manage and share classified and sensitive data securely.
How the Company Makes MoneyarchTIS generates revenue through the sale of its software solutions and associated services. Key revenue streams include subscription fees for its cloud-based platforms, one-time licensing fees for on-premises software, and professional services such as implementation, training, and ongoing support. The company also benefits from strategic partnerships with government agencies and defense contractors, which often lead to long-term contracts and recurring revenue opportunities. Additionally, archTIS may receive revenue from consulting services aimed at helping organizations enhance their data security posture.

archTIS Ltd. Financial Statement Overview

Summary
archTIS Ltd. faces significant challenges in profitability and revenue growth, with negative profit margins and declining revenues. The balance sheet shows moderate leverage but poor returns on equity. However, strong free cash flow growth provides some financial flexibility.
Income Statement
35
Negative
archTIS Ltd. has experienced a decline in revenue growth, with a negative growth rate of -12% in the latest period. The company also shows negative margins across the board, with a net profit margin of -78.37% and an EBIT margin of -110.86%, indicating significant profitability challenges. Despite a relatively high gross profit margin of 76.43%, the overall financial health is concerning due to persistent losses.
Balance Sheet
45
Neutral
The company's debt-to-equity ratio has increased to 0.40, indicating a rise in leverage, though it remains moderate. However, the return on equity is negative at -88.13%, reflecting ongoing losses and inefficiencies in generating returns for shareholders. The equity ratio stands at 32.15%, suggesting a reasonable level of equity financing relative to total assets.
Cash Flow
60
Neutral
archTIS Ltd. shows a substantial improvement in free cash flow growth, with an impressive increase of 821.38%. The operating cash flow to net income ratio is 0.32, indicating some ability to convert earnings into cash flow. The free cash flow to net income ratio is close to 1, suggesting that the company is nearly breaking even on a cash basis despite accounting losses.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue6.07M6.07M9.80M6.37M4.64M4.63M
Gross Profit4.64M4.64M5.85M-1.44M-508.10K1.36M
EBITDA-6.29M-6.29M263.85K-3.77M-5.79M-1.53M
Net Income-4.76M-4.76M-4.26M-8.24M-9.45M-2.99M
Balance Sheet
Total Assets16.79M16.79M16.62M24.88M26.89M30.29M
Cash, Cash Equivalents and Short-Term Investments3.15M3.15M2.92M3.25M6.52M12.74M
Total Debt2.17M2.17M1.17M780.36K985.76K1.08M
Total Liabilities11.39M11.39M7.17M11.44M7.69M10.65M
Stockholders Equity5.40M5.40M9.44M13.44M19.20M19.65M
Cash Flow
Free Cash Flow2.92M2.92M-1.10M-5.07M-10.60M-568.46K
Operating Cash Flow2.96M2.96M1.64M-4.96M-10.57M-464.68K
Investing Cash Flow-3.49M-3.49M-2.74M-40.08K-1.78M227.28K
Financing Cash Flow766.48K766.48K773.36K1.73M6.14M10.56M

archTIS Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.13
Price Trends
50DMA
0.11
Positive
100DMA
0.14
Positive
200DMA
0.12
Positive
Market Momentum
MACD
<0.01
Negative
RSI
67.97
Neutral
STOCH
92.14
Negative
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 0.13 is above the 20-day moving average (MA) of 0.11, above the 50-day MA of 0.11, and above the 200-day MA of 0.12, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 67.97 is Neutral, neither overbought nor oversold. The STOCH value of 92.14 is Negative, 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
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
44
Neutral
AU$66.37M-8.54-64.13%-38.03%-11.27%
44
Neutral
AU$35.21M-16.007.32%67.11%
44
Neutral
AU$29.25M-6.25-135.50%-48.98%-12.82%
41
Neutral
AU$11.80M-1.82-133.07%-4.90%-52.78%
39
Underperform
AU$5.39M-26.58%
35
Underperform
AU$85.35M-15.26
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:AR9
archTIS Ltd.
0.14
0.08
133.33%
AU:PRO
Prophecy International Holdings Ltd
0.16
-0.39
-70.91%
AU:XF1
Xref Ltd
0.16
-0.05
-23.81%
AU:SIS
Simble Solutions Ltd.
AU:NVU
Nanoveu Ltd.
0.09
0.06
200.00%
AU:ICE
iCetana Ltd.
0.06
0.04
175.00%

archTIS Ltd. Corporate Events

archTIS Announces Resignation of Joint Company Secretary
Dec 2, 2025

archTIS Limited announced the resignation of Mrs. Erlyn Dawson from her role as Joint Company Secretary, effective immediately. The company expressed gratitude for her contributions and confirmed that Mr. Winton Willesee and Mr. Andrew Burns will continue as Joint Company Secretaries, ensuring continuity in communications with the ASX. This change in company secretarial roles is not expected to impact the company’s operations significantly, as the remaining secretaries will maintain compliance with ASX Listing Rule matters.

archTIS Ltd. Announces Director’s Acquisition of Unlisted Options
Dec 2, 2025

archTIS Ltd. announced a change in the director’s interest as Dr. Marcus Thompson acquired 3,412,969 unlisted options as part of his remuneration package. This issuance of Director Incentive Options, approved at the 2025 Annual General Meeting, reflects the company’s commitment to aligning executive compensation with shareholder interests and could impact the company’s governance and strategic direction.

archTIS Ltd. Issues New Unquoted Options to Strengthen Capital Structure
Dec 2, 2025

archTIS Ltd. announced the issuance of 3,412,969 unquoted options set to expire on November 22, 2027, with an exercise price of $0.0972. This issuance, part of a previously announced transaction, reflects the company’s strategic financial maneuvers to enhance its capital structure, potentially impacting its market positioning and stakeholder interests.

archTIS Limited Announces Director’s Change in Interest
Nov 24, 2025

archTIS Limited announced a change in the director’s interest, specifically noting the expiry of 1,000,000 unlisted options held by Dr. Miles Jakeman AM. This update indicates a reduction in the director’s holdings of unlisted options, which may have implications for the company’s stock option strategy and the director’s financial stake.

archTIS Limited Successfully Concludes Annual General Meeting with Key Resolutions Passed
Nov 14, 2025

archTIS Limited held its Annual General Meeting virtually, where all resolutions were passed by a poll. Key resolutions included the adoption of the remuneration report, election and re-election of directors, and ratification of prior share issues. The approval of a mandate and issuance of restricted stock units to Spirion employees were also carried. These outcomes reflect strong shareholder support and strategic alignment with the company’s growth and operational objectives.

archTIS Unveils NC Protect V9 to Enhance Microsoft 365 Security
Nov 3, 2025

archTIS Limited has launched NC Protect for Microsoft 365 Version 9, designed to enhance security for sensitive information within Microsoft environments. This release is strategically aligned with the U.S. Department of Defense’s requirements and aims to expand the company’s presence in the U.S. market. The new version offers improved integration with Microsoft’s security tools, streamlined deployment options, and enhanced capabilities for large-scale environments. The integration with Spirion products and Microsoft Defender for Cloud Apps further strengthens its offering, positioning archTIS as a key player in the defense and regulated industries.

archTIS Ltd. Releases Q1 FY26 Report, Reinforces Cybersecurity Focus
Oct 31, 2025

archTIS Ltd. has released its quarterly report for Q1 FY26, emphasizing its commitment to protecting the world’s most sensitive information. The report highlights the company’s strategic focus on enhancing its cybersecurity offerings, which are crucial for maintaining its competitive edge and meeting the growing demand for secure data management solutions. The announcement underscores the company’s ongoing efforts to strengthen its market position and deliver value to its stakeholders.

archTIS Strengthens U.S. Presence with Strategic Acquisition and DoD Expansion
Oct 31, 2025

archTIS Limited has reported a transformative quarter marked by the acquisition of U.S.-based Spirion LLC, which significantly increased its Annual Recurring Revenue (ARR) and expanded its customer base. The company also completed a substantial equity raise to fund this acquisition and further its expansion in the U.S. Department of Defense market. Despite a temporary slowdown in U.S. government procurement due to a shutdown, archTIS remains well-positioned with a strong balance sheet and a strategic shift towards higher-margin licensing revenues, reinforcing its leadership in the data-centric security solutions industry.

archTIS Limited Announces Investor Webinar for Q1 FY2026 Update
Oct 28, 2025

archTIS Limited announced it will hold an Investor Webinar on 31 October 2025 to provide an update on the company’s quarterly activities and future outlook for FY2026. The webinar will feature presentations from CEO Daniel Lai and Global COO Kurt Mueffelmann, offering insights into the company’s operations and allowing for a Q&A session with stakeholders. This initiative reflects archTIS’s commitment to transparency and engagement with its investors, potentially impacting its market positioning by fostering trust and confidence among stakeholders.

archTIS Ltd. Announces Virtual Annual General Meeting for Shareholders
Oct 14, 2025

archTIS Ltd. has announced its Annual General Meeting (AGM) for shareholders, scheduled to be held online on November 14, 2025. The company encourages shareholders to participate by attending the virtual meeting, voting in advance, and submitting questions. This meeting is significant as it provides shareholders with the opportunity to engage with the company’s leadership and influence decision-making through their votes, reflecting the company’s commitment to transparency and stakeholder engagement.

archTIS Completes Acquisition of Spirion LLC to Enhance Data Security Portfolio
Oct 1, 2025

archTIS Limited has successfully completed the acquisition of Spirion LLC, a U.S.-based leader in data security posture management software. This acquisition, valued at A$15.75 million, is set to expand archTIS’s U.S. presence and enhance its software portfolio with Spirion’s advanced data discovery and classification capabilities. The integration of Spirion’s platform with archTIS’s existing technologies aims to create a comprehensive zero trust data security portfolio. The move is expected to solidify archTIS’s position in the U.S. market and expand its vertical market presence, benefiting stakeholders by offering an end-to-end solution for data security and governance.

archTIS Ltd. Announces Quotation of New Securities on ASX
Sep 18, 2025

archTIS Ltd. announced the quotation of 78,192,083 ordinary fully paid securities on the Australian Securities Exchange (ASX) under the code AR9, effective September 18, 2025. This move is part of a previously announced transaction, potentially impacting the company’s market presence and offering stakeholders an opportunity to engage with the company’s growth strategy.

archTIS Successfully Closes Retail Entitlement Offer, Raising $20.46 Million
Sep 16, 2025

archTIS Limited has successfully closed its fully underwritten Retail Entitlement Offer, raising approximately $2.18 million through applications for 14,535,288 new shares. The total capital raised from the Retail Entitlement Offer, Institutional Entitlement Offer, and Placement amounts to $20.46 million, which will be used for the acquisition of Spirion LLC’s key business assets, employee incentives, integration, and other related costs. This strategic move is expected to bolster archTIS’s market position and expand its capabilities in secure data collaboration.

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.Date of analysis: Nov 30, 2025