Annual Report to shareholders

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Stock Archtis Ltd (AR9.ASX)
Release Time 27 Aug 2025, 9:53 a.m.
Price Sensitive Yes
 archTIS Ltd reports robust FY2025 results
Key Points
  • Achieved positive operating cash flow of $3.0M, up 88% year-on-year
  • Annual Recurring Revenue (ARR) reached $4.8M, a 17% increase year-on-year
  • Gross margins improved by 16 percentage points to 76%
Full Summary

FY2025 was a year of momentum and measurable success for archTIS, reflecting the strength of its strategy, disciplined financial execution, and the dedication of its team. The company gained traction across key financial metrics, including achieving positive operating cash flow of $3.0M (up 88% year-on-year), growing Annual Recurring Revenue (ARR) to $4.8M (a 17% increase), and improving gross margins by 16 percentage points to 76%. archTIS also transitioned to core licensing revenue, with license revenue remaining steady at $4.2M, while services revenue declined purposefully by 62% as the company moved away from lower-margin consulting engagements. The company also reduced total annual operating expenses by 6%, with underlying operating expenses (excluding Share-Based Payments) decreasing by 13%. archTIS secured several major customer wins and renewals, including a $1.3M annual software subscription renewal with the Australian Department of Defence, a contract with the U.S. Department of Defense, and an initial contract with a U.K. aerospace and defence conglomerate. The company also expanded its global footprint, entering the Japanese market with a contract for its Trusted Data Integration (TDI) platform. Overall, archTIS demonstrated its ability to capture market opportunities, deliver positive financial momentum, and strengthen its position as a provider of world-class, data-centric security solutions.

Guidance

archTIS expects to continue its positive momentum, with a focus on global expansion, product innovation, and strengthening customer partnerships. The company recently raised $7.5M (before costs) to support its international growth strategy.

Outlook

As archTIS moves into FY2026, the company is poised to build on its achievements and seize new opportunities. Its key priorities include continued global expansion, relentless innovation to meet evolving cybersecurity challenges, empowering customers to achieve their security goals, and operating sustainably to create lasting value for stakeholders.