archTIS Ltd. (AU:AR9)
ASX:AR9
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archTIS Ltd.
(Sydney:AR9)
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Rating:44Neutral
Price Target:
AU$0.07
▼(-41.67% Downside)
Action:Reiterated
Date:05/28/26
The score is primarily constrained by weak financial performance, including declining revenue and very large operating and net losses, despite improved free cash flow. Technical indicators also lean bearish (negative MACD and weak longer-term trend), and valuation is pressured by a negative P/E with no dividend support.
Positive Factors
Improving free cash flow
archTIS's free cash flow growth of 821% and FCF roughly matching net losses demonstrate a material improvement in cash generation. That trend strengthens runway and reduces near-term financing needs, enabling the company to fund operations and invest while pursuing profitability recovery.
Negative Factors
Declining revenue
A 12% revenue decline signals weakening demand or go-to-market execution, which undermines scale economics. Sustained top-line contraction makes it harder to leverage high gross margins into operating profit and increases the likelihood of further capital raises to fund growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving free cash flow
archTIS's free cash flow growth of 821% and FCF roughly matching net losses demonstrate a material improvement in cash generation. That trend strengthens runway and reduces near-term financing needs, enabling the company to fund operations and invest while pursuing profitability recovery.
Read all positive factors
archTIS Ltd. (AR9) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$32.84M
Dividend YieldN/A
Average Volume (3M)1.16M
Price to Earnings (P/E)―
Beta (1Y)0.50
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
null...
archTIS Ltd. Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 20, 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
Positive
0.12
Price Trends
0.06
Positive
0.08
Negative
0.10
Negative
Market Momentum
>-0.01
Negative
63.08
Neutral
65.59
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 0.06, above the 50-day MA of 0.06, and above the 200-day MA of 0.10, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 63.08 is Neutral, neither overbought nor oversold. The STOCH value of 65.59 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 |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
44 Neutral | AU$32.84M | -3.16 | -62.57% | ― | 36.04% | -71.94% | |
44 Neutral | AU$13.87M | -6.37 | 46.05% | ― | -0.91% | 1.85% | |
43 Neutral | AU$13.31M | -3.71 | 227.23% | ― | 4.08% | -6.25% | |
42 Neutral | AU$7.33M | -0.65 | 783.67% | ― | -13.82% | -132.50% | |
42 Neutral | AU$61.59M | -6.44 | -86.31% | ― | ― | ― | |
41 Neutral | AU$21.92M | -4.98 | -153.09% | ― | 6.66% | ― |
* Technology Sector Average
AU:AR9
archTIS Ltd.
0.07
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archTIS Ltd. Corporate Events
archTIS Clears Key U.S. DoD Hurdle as NC Protect Passes Warfighter Tests
May 27, 2026
archTIS announced that the U.S. Department of Defense has completed final internal Warfighter Command production testing of its NC Protect data security product, with the software passing all 60 of 60 pilot test cases. The tests covered U.S. perso...
archTIS issues Q3 FY26 update with extensive investment disclaimers
Apr 30, 2026
archTIS Limited has released its Q3 FY26 quarterly report presentation, outlining information on the company’s operations and financial position for the period ended March 2026. The document is positioned as an informational update to stakeh...
archTIS boosts recurring revenue 231% and lands key U.S. defense milestone
Apr 30, 2026
archTIS reported strong March quarter growth, with annual recurring revenue rising 231% year-on-year to A$15.1 million and total quarterly revenue up 143% to A$3.5 million, supported by a 71% gross margin and improving operating cost base as Spiri...
archTIS Schedules Investor Webinar to Discuss Q3 FY2026 Update
Apr 28, 2026
archTIS Limited will host an investor webinar on 30 April 2026 to provide an update and overview of its Q3 FY2026 quarterly activities report and cash flow Appendix 4C for the period ended 31 March 2026. The Zoom-based session, led by CEO Daniel L...
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...
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.