Highlights

  • archTIS (ASX:AR9) delivered significant ARR growth during FY26 as its Cybersecurity platform expanded.
  • The company increased customer numbers and diversified Revenue following the Spirion acquisition.
  • Defence contracts, Microsoft ecosystem integration and data security Demand remain key growth drivers.
  • Investors continue monitoring cash flow, profitability and conversion of contracts into recurring revenue.

archTIS (ASX:AR9) enters FY27 with stronger operational momentum after expanding its cybersecurity platform, increasing Recurring Revenue and broadening its customer base across government, defence and enterprise markets.

The company’s FY26 performance demonstrated meaningful growth across key operating metrics, supported by the integration of Spirion, defence-related contract wins and increasing demand for data protection solutions.

However, the market remains focused on whether this growth can translate into sustainable profitability and reduced reliance on external funding.

FY26 Performance

archTIS reported FY26 results for the year ended 30 June 2026, highlighting strong growth in recurring revenue and customer expansion.

Annual recurring revenue (ARR) reached A$14.8 million, representing growth of 208% compared with the previous year.

Full-year contracted sales increased 65% to A$14.1 million, while pro forma sales, including the impact of Spirion integration, increased 94% to A$16.6 million.

Fourth-quarter revenue reached A$3.5 million, increasing 92% year on year, while gross Margin remained stable at 74%.

The company expanded its customer base to 225 customers compared with approximately 60 previously, demonstrating broader adoption of its cybersecurity solutions.

Revenue concentration also improved, with the contribution from the largest customers declining as the Business diversified across a wider customer base.

Cybersecurity Growth Strategy

archTIS continues building its position in data-centric security through its NC Protect and Kojensi platforms.

NC Protect provides secure collaboration and information protection capabilities across Microsoft 365 environments, while Kojensi supports secure information sharing across government and defence organisations.

The Acquisition of Spirion strengthened the company’s offering by adding data discovery and classification capabilities.

The combined platform allows archTIS to provide customers with a broader security solution covering data discovery, classification and access control.

This expansion increases opportunities to grow customer relationships and increase platform adoption across government and enterprise markets.

Defence and Government Momentum

Defence remains an important market opportunity for archTIS.

The company secured additional contract momentum during FY26, including expansion of its Australian Department of Defence Kojensi relationship.

The company also achieved progress through US defence testing processes, with NC Protect completing required testing milestones within the US Department of Defense environment.

These developments support potential future adoption, although government procurement cycles can often involve extended decision timelines.

The Microsoft relationship remains strategically important, with NC Protect’s integration into Microsoft 365 supporting opportunities across government and regulated industries.

Financial Position

While operational growth improved, archTIS continues investing in expansion and remains focused on achieving stronger Cash Flow performance.

The company reported operating cash outflow of approximately A$3.8 million during FY26.

Fourth-quarter operating expenses were A$5.3 million, including one-off costs, although quarterly expenses declined as cost management initiatives progressed.

The company has focused on improving funding flexibility through banking arrangements and reducing reliance on equity-based funding.

Management has highlighted its intention to support Working Capital requirements and contract execution through available facilities rather than additional Equity issuance where possible.

Growth Drivers

Several factors could influence archTIS’s future growth.

The continued integration of Spirion remains a major opportunity, providing additional cybersecurity capabilities and expanding potential customer applications.

Government and defence demand for secure data management solutions remains a structural growth area as organisations increase focus on information protection.

The company’s relationship with Microsoft also provides a pathway to expand adoption among organisations already using Microsoft 365 environments.

Growing awareness of cybersecurity risks, data governance requirements and regulatory obligations provides additional support for demand.

Investor Focus

Key areas investors will monitor include:

  • Conversion of contracted sales into recognised revenue and cash generation.
  • Growth in ARR and customer expansion following Spirion integration.
  • Defence contract expansion and broader government adoption.
  • Progress towards Operating Cash Flow improvement.
  • Management’s ability to scale growth without further Shareholder dilution.

Risks

archTIS remains a growth-stage cybersecurity company with ongoing profitability challenges.

Although recurring revenue has increased significantly, the company remains exposed to contract timing, government procurement cycles and customer concentration risks.

Integration of Spirion also introduces execution risks, including achieving expected operational and commercial benefits.

The company’s reliance on technology ecosystems, particularly Microsoft environments, creates additional platform-related considerations.

Future capital requirements remain an important Factor if revenue growth does not translate into sufficient cash generation.

Outlook

archTIS enters FY27 with a broader cybersecurity platform, improved customer Diversification and stronger recurring revenue foundations.

The company’s progress across defence, government and enterprise markets highlights growing demand for secure data management solutions.

The next stage of the Investment story will depend on whether archTIS can convert its expanded customer base and contract pipeline into sustainable profitability.

For investors following ASX technology and cybersecurity stocks, archTIS represents a growth-focused business where revenue execution, cash flow improvement and disciplined capital management will determine future market confidence.