• Annual recurring revenue (ARR) of $4.6M, up 27% on prior corresponding period
• Gross margin increased to 75%, up 6 basis points on prior corresponding period
• Operating expenses decreased by 18% on prior corresponding period
• Completed the asset acquisition of Direktiv

archTIS Limited (ASX:AR9, OTCQB:ARHLF) reported its Quarterly Activities and Appendix 4C Cash Flow Report for the quarter ended 31 March 2025. The company achieved annual recurring revenue (ARR) of $4.6M, up 27% year-over-year, reflecting sustained momentum in new customer acquisition, expansion, and retention. Gross margin remained robust at 75%, underpinned by the company's strategic shift towards proprietary, high-value solutions. Total revenue for the quarter was $1.4M, comprising $1.0M in licensing and $0.4M in services. The year-over-year revenue decline reflects archTIS' repositioning of its branded offerings and reducing business development efforts associated with non-core third-party software and lower-margin services. Operating expenses decreased by 18% compared to the prior corresponding period, reflecting the company's disciplined cost management and ongoing focus on cash efficiency. archTIS closed the quarter with $2.6M in cash and $4.4M in total available funds, providing ample runway to support ongoing growth initiatives. The company also successfully completed the acquisition of Direktiv's technology assets, personnel, and customer relationships, strengthening its zero-trust security portfolio through the integration of Direktiv's event-driven orchestration and attribute-based access control (ABAC) platform.

The company reported annual recurring revenue (ARR) of $4.6M, up 27% year-over-year, and gross margin of 75%, up 6 basis points on the prior corresponding period, for the quarter ended 31 March 2025.

archTIS is witnessing growing momentum and heightened interest in its zero-trust, data-centric security solutions, particularly for the scanning, tagging, enforcement, and governance of sensitive information. The company believes the Direktiv acquisition meaningfully strengthens its competitive positioning and lays the foundation for long-term shareholder value through enhanced capabilities, expanded global reach, and deeper customer engagement.