archTIS Ltd. (AR9) AI Stock Analysis

• Market Cap: AU$47.23M
• Dividend Yield: N/A
• Average Volume (3M): 1.16M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.21
• Revenue Growth: -38.03%
• EPS Growth: -11.27%
• Country: AU
• Employees: 23
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): >-0.01
• Shares Outstanding: 481,900,600
• 10 Day Avg. Volume: 1,412,754
• 30 Day Avg. Volume: 1,160,783
• PEG Ratio: -1.21
• Price to Book (P/B): 12.21
• Price to Sales (P/S): 10.86
• P/FCF Ratio: 22.62
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: AU$0.12 ▼(-3.33% 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 Strength

A large, sustained rise in free cash flow provides durable financial flexibility, allowing the company to fund product development, support operations and pursue customer acquisition without immediate equity dilution. Near cash break-even metrics reduce short-term refinancing risk.

High Gross Margins

A ~76% gross margin is consistent with scalable software economics; it enables operating leverage as revenue recovers. With fixed-cost base management, high gross margins can translate into durable EBITDA improvements and long-term margin expansion as sales grow.

Focused Data-Centric Cybersecurity Niche

Specialization in data-centric security for collaboration platforms and government/enterprise customers addresses persistent regulatory and compliance demand. This niche focus supports higher switching costs, recurring revenue potential and long-term customer stickiness.

Negative Factors

Declining Revenue Trend

Persistently falling revenues erode the scalability of the business model and prolong fixed-cost absorption, making margin recovery harder. Without a durable revenue inflection, investment in product and sales may strain cash reserves and limit sustainable growth prospects.

Severe Profitability Weakness

Deep negative operating and net margins signal structural inability to convert revenue into profits at current scale. Such entrenched losses require either meaningful revenue scale-up or material cost restructuring to restore long-term shareholder returns and internal capital generation.

Negative ROE and Rising Leverage

Very negative ROE combined with rising leverage constrains financial flexibility and increases the cost of capital. If operating performance does not improve, higher leverage can force dilutive capital raises or tighter credit terms, limiting strategic options over the medium term.

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 share and collaborate on files in a secure space; Kojensi Enterprise that allows multi-level, multi-coalition, and multi-domain collaboration on classified information; and Kojensi Field, which allows military, government, and aid and emergency service workers to collaborate in the field. The company also offers NC Protect, which provides real time, attribute-based access, sharing control, and data-centric security collaboration applications, including Microsoft Office 365, SharePoint Online and on-premises, OneDrive, Teams, Yammer, and Exchange emails, as well as Nutanix Files, Dropbox, and Windows File Shares. In addition, it provides Axiomatics Policy Server, a software for enterprise-wide externalized dynamic authorization that delivers with attribute-based access control (ABAC); SmartGuard that securely shares data assets with dynamic authorization; Axiomatics Data Access Filter, a policy-driven dynamic data filtering and masking solution for relational databases, on-premise, and cloud; APIS and microservices; Appsian Security Platform that protects ERP data; and Appsian360, which delivers actionable insights that enables ERP data security and compliance. archTIS Limited was incorporated in 2006 and is headquartered in Barton, Australia.

How the Company Makes Money

archTIS 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, the cash flow statement indicates strong free cash flow growth, providing some financial flexibility.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.07M	6.07M	9.80M	6.37M	4.64M	4.63M
Gross Profit	4.64M	4.64M	5.85M	-1.44M	-508.10K	1.36M
EBITDA	-6.29M	-6.29M	263.85K	-3.77M	-5.79M	-1.53M
Net Income	-4.76M	-4.76M	-4.26M	-8.24M	-9.45M	-2.99M
Balance Sheet
Total Assets	16.79M	16.79M	16.62M	24.88M	26.89M	30.29M
Cash, Cash Equivalents and Short-Term Investments	3.15M	3.15M	2.92M	3.25M	6.52M	12.74M
Total Debt	2.17M	2.17M	1.17M	780.36K	985.76K	1.08M
Total Liabilities	11.39M	11.39M	7.17M	11.44M	7.69M	10.65M
Stockholders Equity	5.40M	5.40M	9.44M	13.44M	19.20M	19.65M
Cash Flow
Free Cash Flow	2.92M	2.92M	-1.10M	-5.07M	-10.60M	-568.46K
Operating Cash Flow	2.96M	2.96M	1.64M	-4.96M	-10.57M	-464.68K
Investing Cash Flow	-3.49M	-3.49M	-2.74M	-40.08K	-1.78M	227.28K
Financing Cash Flow	766.48K	766.48K	773.36K	1.73M	6.14M	10.56M

archTIS Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AR9, the sentiment is Negative. The current price of 0.12 is above the 20-day moving average (MA) of 0.12, above the 50-day MA of 0.11, and below the 200-day MA of 0.13, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 36.21 is Neutral, neither overbought nor oversold. The STOCH value of -3.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:AR9.

archTIS Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NVU	49 Neutral	AU$85.36M	―	―	―	―	―
AR9	44 Neutral	AU$47.23M	-6.20	-64.13%	―	-38.03%	-11.27%
XF1	43 Neutral	AU$29.71M	-13.50	―	―	7.32%	67.11%
PRO	41 Neutral	AU$8.48M	-1.31	-133.07%	―	-4.90%	-52.78%
ICE	38 Underperform	AU$23.40M	-5.00	-135.50%	―	-48.98%	-12.82%
SIS	37 Underperform	AU$7.60M	―	―	―	-26.58%	―

archTIS Ltd. Corporate Events

archTIS Updates Market on Managing Director Daniel Lai’s Revised Equity Holdings

archTIS Limited has announced a change in the shareholdings of Managing Director Daniel Lai following the lapse and vesting of performance rights. On 22 December 2025, 1,666,016 AR9PR10 performance rights held by Lai lapsed, while 208,252 AR9PR10 performance rights vested into an equivalent number of fully paid ordinary shares at no consideration, increasing his direct shareholding to 10,737,686 shares. His holdings in various series of unlisted options and remaining performance rights are unchanged, and the company confirmed there were no trades during a closed period, indicating the changes stem purely from the operation of the company’s long-term incentive arrangements rather than market transactions.

The most recent analyst rating on (AU:AR9) stock is a Hold with a A$0.10 price target. To see the full list of analyst forecasts on archTIS Ltd. stock, see the AU:AR9 Stock Forecast page.

archTIS Issues New Shares and Confirms Regulatory Compliance

archTIS Limited has issued fully paid ordinary shares and notified the market that these securities were issued without a disclosure document under the relevant provisions of the Corporations Act. The company confirmed it is up to date with its financial reporting and continuous disclosure obligations and stated there is no excluded information that investors would reasonably expect to find in a formal disclosure document, signalling that the new share issuance is compliant with Australian regulatory requirements and does not introduce undisclosed risks for shareholders.

The most recent analyst rating on (AU:AR9) stock is a Hold with a A$0.10 price target. To see the full list of analyst forecasts on archTIS Ltd. stock, see the AU:AR9 Stock Forecast page.

ArchTIS Reports Lapse of Over 7.6 Million Incentive Securities

ArchTIS Ltd has notified the market that several classes of equity incentives, including performance rights, options and restricted stock units, have lapsed because the conditions attached to them were not met or are no longer capable of being satisfied. The cessation affects a total of more than 7.6 million securities as of 22 December 2025, signalling a reduction in potential future equity dilution for existing shareholders and updating the company’s issued capital structure in line with ASX disclosure requirements.

The most recent analyst rating on (AU:AR9) stock is a Hold with a A$0.10 price target. To see the full list of analyst forecasts on archTIS Ltd. stock, see the AU:AR9 Stock Forecast page.

archTIS Seeks ASX Quotation for 6.16 Million New Shares

archTIS Ltd has applied to the ASX for quotation of 6,160,191 new fully paid ordinary shares, trading under the ticker AR9. The newly issued securities, dated 22 December 2025, expand the company’s quoted share capital base, potentially enhancing liquidity for investors and signalling additional capital or option conversions that may support its ongoing corporate and operational activities.

The most recent analyst rating on (AU:AR9) stock is a Hold with a A$0.10 price target. To see the full list of analyst forecasts on archTIS Ltd. stock, see the AU:AR9 Stock Forecast page.

archTIS Deepens U.S. DoD Footprint and Boosts U.S. Push with New Debt Facility

archTIS has advanced its U.S. Department of Defense opportunity by deploying its NC Protect software into the DoD’s Microsoft DoD365 production environment and securing a renewal of 1,000 licenses for active mission operations, signalling a shift from pilot projects to sustained operational use within the warfighter network. The company is also delivering customised software enhancements requested by the DoD to enable greater interoperability and scale, while enterprise licence negotiations have resumed following the U.S. government shutdown, with the potential for large, multi-thousand-user deployments that could position NC Protect as a key tool in meeting the Pentagon’s Zero Trust security mandates. In parallel, archTIS is progressing its integration of recently acquired Spirion, realising A$4.5 million in annual cost synergies and launching cross-sell campaigns in the U.S., supported by a new non-dilutive A$8 million drawdown debt facility aimed at accelerating its penetration of the U.S. market and strengthening its competitive position in data security.

The most recent analyst rating on (AU:AR9) stock is a Hold with a A$0.10 price target. To see the full list of analyst forecasts on archTIS Ltd. stock, see the AU:AR9 Stock Forecast page.

archTIS Cleans Up Capital Structure as 8.6 Million Options Expire

archTIS Ltd. has notified the market that 8,642,851 options (AR9AS), each exercisable at A$0.20 and expiring on 13 December 2025, have lapsed unexercised, resulting in the cessation of these securities. The expiry reduces the company’s pool of potential dilution from convertible securities but does not affect the current issued share capital, and may be interpreted by investors as a normal clean-up of its capital structure rather than a direct signal on underlying operations.

The most recent analyst rating on (AU:AR9) stock is a Hold with a A$0.10 price target. To see the full list of analyst forecasts on archTIS Ltd. stock, see the AU:AR9 Stock Forecast page.

archTIS Updates Managing Director’s Equity Incentives as Options Expire

archTIS Limited has disclosed changes to the securities held by Managing Director Daniel Lai, detailing an update to his equity-based remuneration package.

The company reported that Lai has been granted 169,394 new unlisted options expiring in December 2029 and 846,966 new performance rights as director incentives, while an earlier tranche of 119,047 unlisted options expiring in December 2025 has lapsed. Following these adjustments, his holding remains a substantial mix of fully paid ordinary shares, multiple series of unlisted options with varying strike prices and maturities, and performance rights, signalling a continued emphasis on long-term, equity-linked incentives to align executive interests with shareholder value.

The most recent analyst rating on (AU:AR9) stock is a Hold with a A$0.10 price target. To see the full list of analyst forecasts on archTIS Ltd. stock, see the AU:AR9 Stock Forecast page.

archTIS Ltd. Issues Unquoted Equity Securities for Employee Incentives

archTIS Ltd. has announced the issuance of unquoted equity securities, including 169,394 unlisted options and 846,966 performance rights, as part of an employee incentive scheme. This move is aimed at enhancing employee engagement and aligning their interests with the company’s long-term goals, potentially impacting the company’s operational dynamics and market positioning.

The most recent analyst rating on (AU:AR9) stock is a Hold with a A$0.10 price target. To see the full list of analyst forecasts on archTIS Ltd. stock, see the AU:AR9 Stock Forecast page.

archTIS Announces Resignation of Joint Company Secretary

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.

The most recent analyst rating on (AU:AR9) stock is a Hold with a A$0.10 price target. To see the full list of analyst forecasts on archTIS Ltd. stock, see the AU:AR9 Stock Forecast page.

archTIS Ltd. Announces Director’s Acquisition of Unlisted Options

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.

The most recent analyst rating on (AU:AR9) stock is a Hold with a A$0.10 price target. To see the full list of analyst forecasts on archTIS Ltd. stock, see the AU:AR9 Stock Forecast page.

archTIS Ltd. Issues New Unquoted Options to Strengthen Capital Structure

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.

The most recent analyst rating on (AU:AR9) stock is a Hold with a A$0.10 price target. To see the full list of analyst forecasts on archTIS Ltd. stock, see the AU:AR9 Stock Forecast page.

archTIS Limited Announces Director’s Change in Interest

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.

The most recent analyst rating on (AU:AR9) stock is a Buy with a A$0.35 price target. To see the full list of analyst forecasts on archTIS Ltd. stock, see the AU:AR9 Stock Forecast page.

archTIS Limited Successfully Concludes Annual General Meeting with Key Resolutions Passed

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.

The most recent analyst rating on (AU:AR9) stock is a Buy with a A$0.35 price target. To see the full list of analyst forecasts on archTIS Ltd. stock, see the AU:AR9 Stock Forecast page.

archTIS Unveils NC Protect V9 to Enhance Microsoft 365 Security

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.

The most recent analyst rating on (AU:AR9) stock is a Buy with a A$0.35 price target. To see the full list of analyst forecasts on archTIS Ltd. stock, see the AU:AR9 Stock Forecast page.

archTIS Ltd. Releases Q1 FY26 Report, Reinforces Cybersecurity Focus

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.

The most recent analyst rating on (AU:AR9) stock is a Buy with a A$0.35 price target. To see the full list of analyst forecasts on archTIS Ltd. stock, see the AU:AR9 Stock Forecast page.

archTIS Strengthens U.S. Presence with Strategic Acquisition and DoD Expansion

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.

The most recent analyst rating on (AU:AR9) stock is a Buy with a A$0.35 price target. To see the full list of analyst forecasts on archTIS Ltd. stock, see the AU:AR9 Stock Forecast page.

archTIS Limited Announces Investor Webinar for Q1 FY2026 Update

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.

The most recent analyst rating on (AU:AR9) stock is a Buy with a A$0.35 price target. To see the full list of analyst forecasts on archTIS Ltd. stock, see the AU:AR9 Stock Forecast page.