Key Highlights

  • Customer receipts reached a record $5.3M in the September 2026 quarter, up 102% on the June 2026 quarter and above operating payments of $5.2M.
  • Net operating cash outflow narrowed to $0.03M from $3.8M in the prior quarter, with revenue of $3.6M and gross margin of 79%.
  • CBA extended the maturity of a $4M facility from 30 October 2026 to 30 April 2027 for a one-off fee of $2,000.
  • A second US Department of Defense development contract, worth $315,000, was awarded for NC Protect after quarter-end.

archTIS Limited (ASX:AR9), also quoted on the OTCQB as ARHLF, reported record customer receipts of $5.3 million for the September 2026 quarter and, on the same day, confirmed that the Commonwealth Bank of Australia (CBA) has extended a $4 million loan facility to 30 April 2027. Receipts exceeded operating payments for the first time since the company acquired Spirion in October 2025, and net operating cash outflow fell to $0.03 million from $3.8 million in the June quarter.

Receipts, Revenue and Costs

The $5.3 million of receipts was more than double the June quarter and came entirely from customers, with no R&D tax incentive or grant income. It included $1.0 million for the renewed Australian Department of Defence Kojensi contract and annual renewals across the Spirion, NC Protect and Trusted Data Integration (TDI) customer base. Receipts covered 102% of operating payments, against 22% in the December 2025 quarter, when receipts were $1.6 million and operating payments were $7.3 million.

Revenue was $3.6 million, up 242% on the prior corresponding period's $1.4 million, reflecting Spirion's contribution and a shift toward proprietary licensing and related services and away from lower-margin third-party products. Gross margin widened to 79%. Operating expenses were $4.4 million, 17% below the June 2026 quarter and 25% below the December 2025 quarter, while staff costs paid fell 46% over that period from $5.7 million to $3.1 million. Annual recurring revenue was $13.3 million at 30 September 2026, supported by more than 150 enterprise, government and defence customers.

CBA Facility Extension

Of the company's $8 million in CBA facilities, $4 million was due to mature on 30 October 2026. CBA agreed on 27 October 2026 to move that maturity to 30 April 2027. A one-off establishment fee of $2,000 applies to the variation, and the other key terms are unchanged from those disclosed on 15 July 2026. The facilities now comprise $2 million maturing on 29 January 2027, $2 million maturing on 31 January 2027 and $4 million maturing on 30 April 2027.

Managing Director and CEO Daniel Lai said the extension supports working capital without issuing new equity. archTIS ended the quarter with cash of $2.2 million and unused facilities of $0.5 million, giving total available funding of $2.8 million. Outflows of $0.6 million related to capitalised software development, and related-party payments of $160,000 were directors' fees.

Contracts, Certification and Partnerships

On 5 October 2026 the company announced a $315,000 fixed-price services contract from the US Department of Defense, awarded through Copper River Technologies. It is the second US DoD-funded development contract for NC Protect, following a $235,000 contract announced in October 2025. Negotiations continue on an NC Protect enterprise licence across the DoD's classified and unclassified Microsoft 365 environments, following completion of all 60 test cases in Warfighter Command production testing.

The $3.2 million, 12-month Kojensi renewal with the Australian Department of Defence began during the quarter and comprises $1.0 million of recurring licence revenue and $2.2 million of development and maintenance services. Deployment of NC Protect also continued under the US/EU military alliance contract valued at about $416,000 for calendar 2026. On 9 September 2026 archTIS achieved NIST FIPS 140-3 validation for its cryptographic module, and on 14 October 2026 it announced a partnership integrating TDI with Pexip Secure Meetings.

Closing Position for archTIS

archTIS finished the September quarter with record receipts, a 79% gross margin, ARR of $13.3 million and its $4 million CBA facility now running to 30 April 2027. The annual general meeting is set for 13 November 2026.