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Highlights
- archTIS posts record annual recurring revenue (ARR) growth
- Gross margin rises to 75% as cost efficiencies kick in
- Strategic acquisition supports global expansion
Cybersecurity company archTIS Ltd (ASX:AR9) has reported a strong March 2025 quarter, underpinned by record-breaking annual recurring revenue (ARR) of A$4.6 million – a 27% uplift from the same time last year. The company’s focus on high-margin proprietary software and disciplined cost management is delivering significant gains in operational efficiency and financial performance.
The quarter’s A$1.4 million in total revenue included A$1.0 million from licensing and A$0.4 million from services, while the gross margin surged to 75%. This was supported by a continued transition away from lower-margin services and third-party offerings. Operating expenses were trimmed by 18% year-over-year, falling to A$1.7 million.
archTIS ended the quarter with A$2.6 million in cash, supported by A$4.4 million in total available funding and another A$2.0 million in customer receipts recognised shortly after the quarter closed.
A major highlight was the completion and immediate commercialisation of the Direktiv acquisition. The integration of Direktiv’s orchestration platform and attribute-based access control technology into archTIS’ Trusted Data Integration (TDI) solution resulted in a strategic sale into the Japanese market, with an annual value of A$390,000.
Customer traction expanded globally, with standout deals such as:
- A Kojensi contract renewal and expansion with Australia’s Department of Defence valued at A$1.3 million
- A new A$410,000 services agreement within the same department
- Kojensi SaaS adoption by a South Korean defence firm under a three-year arrangement
- Research collaboration enablement via licensing with an Australian university
- Expansion by a US law firm of NC Protect use for secure documentation
These wins reinforce rising demand for secure information-sharing platforms across defence, aerospace, legal, and research sectors.
The successful integration of Direktiv also joins development teams across Australia and Europe, enabling greater innovation and new cross-sell prospects across the product suite.
Looking ahead, the company anticipates further ARR growth and a strengthening footprint in global defence markets. This positions archTIS well within the broader landscape of ASX200 companies and the evolving cybersecurity sector.
For investors interested in stable income-generating options, archTIS’ growth narrative offers a dynamic contrast to traditional ASX dividend stocks, reflecting a tech-driven edge with strong recurring revenues.
