• ARR growth of 231% year-on-year
• Major U.S. Department of Defense (DoD) milestone delivered
• New allied defence wins reinforce strategic positioning

archTIS delivered another quarter of year-on-year growth, with material uplifts in ARR and total revenue, reflecting the scale and durability of the expanded customer base. ARR stabilised sequentially throughout the quarter, while gross margin remained healthy as the business continues its strategic shift toward higher-value proprietary licensing. The operating cost base declined following continued execution of the Spirion integration plan, with further normalisation expected over the coming quarters as synergies are realised and operating leverage improves. Operationally, the company achieved a number of strategic milestones, including full delivery of its U.S. DoD custom software development project, a contract win with further annual extension options for a U.S. and European-based military alliance, an accelerated new Spirion customer secured within a 60-day sales cycle, and the extension of NC Protect into AI-driven enterprise search workflows for a global manufacturer. These wins were complemented by strong renewals across Australian defence, UK partner channels, and U.S. SLED markets, reinforcing the mission-critical nature of archTIS' solutions across highly regulated and security-sensitive environments, supporting confidence in the company's medium- to long-term growth trajectory.

For the March quarter, ARR was A$15.1M, up 231% on the prior corresponding period. Total revenue for Q3 was A$3.5M, up 143% year-on-year. Gross margin for the quarter was a healthy 71%, while remaining at 74% year-to-date.

The company remains confident of a meaningful conversion of existing deployments into larger enterprise rollouts, underpinning significant shareholder value. Management continues to expect operating expense levels to decline in the coming quarters to better align with ARR and overall revenue.