Highlights

  • archTIS collected record customer receipts of A$5.34 million in the September 2026 quarter, more than double the June quarter.
  • Net operating cash outflow narrowed to A$27,000 from A$3.8 million in the June 2026 quarter.
  • Australia's Department of Defence renewed its Kojensi agreement for 12 months, valued at A$3.2 million including GST.
  • CBA extended an A$4 million Facility to 30 April 2027, with total bank facilities of A$8 million.

archTIS Limited (ASX:AR9) has moved close to cash-flow breakeven, reporting a net operating cash outflow of A$27,000 for the September 2026 quarter on the back of record customer receipts. The data-centric security software provider also extended a Commonwealth Bank facility to April 2027 and reported new and renewed defence work in Australia and the United States.

Receipts and Cost Cuts Reshape Cash Flow

Customer receipts reached a record A$5.34 million in the quarter, up 102% on the June quarter and covering 102% of operating payments. Unaudited Revenue was A$3.6 million and gross Margin was 79%. Operating expenses fell 17% from the June quarter to A$4.4 million, and staff costs paid dropped to A$3.1 million from A$5.7 million in the December 2025 quarter.

No R&D tax incentive or grant income was received during the period, and a further A$622,000 was invested in capitalised software. Annual Recurring Revenue stood at A$13.3 million at 30 September 2026, drawn from more than 150 enterprise, government and defence customers.

Defence Contracts Anchor the Quarter

The Australian Department of Defence renewed its Kojensi agreement for 12 months at A$3.2 million including GST, comprising A$1.0 million in recurring licence fees and A$2.2 million in services, with two optional 12-month extensions. A$1.0 million was received during the quarter. In the United States, archTIS won a second fixed-price NC Protect development contract with the Department of Defense through Copper River Technologies on 5 October 2026.

A US and European military alliance also contracted NC Protect for calendar 2026, with two option years. A pending US Department of Defense enterprise licence for NC Protect remains under negotiation, with timing dependent on Copper River and the prime systems integrator. On 14 October 2026, archTIS announced a Partnership integrating its Trusted Data Integration product with Pexip Secure Meetings.

Bank Facility Extended Without New Equity

On 28 October 2026, archTIS extended an A$4 million Commonwealth Bank facility from 30 October 2026 to 30 April 2027 for a one-off A$2,000 fee, with other key terms unchanged. Two further A$2 million facilities mature on 29 and 31 January 2027, taking total CBA Loan facilities to A$8 million, which were fully drawn at quarter end. The company described the funding as non-dilutive and said no new Equity would be issued.

Cash at 30 September 2026 was A$2.23 million, with A$0.52 million in unused facilities.

Outlook Centres on Recurring Revenue

Chief executive Daniel Lai has said he expects the company to soon focus on growing annual recurring revenue, while cost discipline is maintained. The company's cryptographic module achieved NIST FIPS 140-3 validation on 9 September 2026, and archTIS won Cyber Business of the Year at the 2026 Australian Defence Industry Awards. Its virtual Annual General Meeting is scheduled for 13 November 2026.

Shares were priced at A$0.079 on 2 November 2026, down 3.66% on the day, giving a Market Capitalisation of A$38.22 million.