Is archTIS profitable in 2026?

No. archTIS remains loss-making, with FY2025 EBITDA margin around -104% and profit margin -78% on revenue of A$6.07M for the year ended June 30, 2025, down 38% from A$9.8M in FY2024, per stockanalysis.com data as of December 2025.

Could AI replace archTIS's NC Protect product?

Not easily for classified defence use, since archTIS holds defence accreditations like IRAP and a US DoD production deployment (live since December 2025, 60/60 test cases passed May 27, 2026), but AI-driven Microsoft Purview classification features are commoditizing adjacent baseline DSPM workflows.

Who is archTIS's biggest competitor?

Microsoft is both partner and threat: its Purview platform and new ZT4AI framework, launched at RSA 2026 with about 700 controls, encroaches on classification workflows, while larger DSPM vendor Varonis outsizes archTIS in the broader data-security market as of 2026.

Did archTIS win a US Department of Defense contract?

Not yet as a commercial deal. archTIS's NC Protect passed all 60 DoD test cases on May 27, 2026, and has been in live DoD365 production since December 2025, but a material multi-year commercial contract was still under negotiation as of mid-2026.

How much revenue does archTIS make and is growth real?

FY2025 revenue was A$6.07M, down 38% YoY, but reported ARR hit A$15.1M by March 31, 2026 (up 231%), largely because archTIS acquired Spirion in October 2025, a company that itself had ~A$17M ARR pre-acquisition, so organic growth is smaller than headline ARR suggests.

archTIS Limited (ASX:AR9) is an independently listed public company with no parent, trading on the Australian Securities Exchange since September 2018 and also on OTCQB in the US as ARHLF, funded via equity raises and bank debt rather than private ownership.

Cybersecurity companies · Australia

archTIS

archtis.com ↗

Makes data classification and access-control software for defence and government.

Losing its protection

Assessed 26 July 2026 · Evidence as of 26 July 2026

The structural protection is eroding.

On the recordSince 26 July 2026 · Checkable from Aug 2026 to Jan 2027 · Every call on the record Checkpoint: FY2026 full year results, plus CBA debt tranches maturing

The call

archTIS holds a classified-defence niche Microsoft cannot enter without new accreditation, but its own debt cliff and thin cash could decide its fate first.

archTIS builds software that protects classified government and military information by sorting and controlling what data goes where, and it holds rare official approvals from the US and Australian defense departments that competitors cannot easily get. Microsoft and AI tools are slowly making basic data sorting cheaper and easier, but they cannot break through the security clearance wall that archTIS has already climbed. The company is bleeding cash, revenue dropped 38% last year, and it owes A$8 million in debt that comes due in October 2026 and January 2027; survival depends on either landing a big US military contract by mid-2026 or finding a way to refinance that debt before the clock runs out.

Why

AI pressure: Microsoft Purview (AI-driven auto-classification, ZT4AI). Purview's AI now auto-classifies and locks down data inside Microsoft 365, squeezing the commercial DSPM deals archTIS chases outside defence. Could AI do the core job? Only partly.

Bigger players: Microsoft. Microsoft bundles Purview and Zero Trust data controls into 365 licensing, undercutting standalone vendors like archTIS on price and integration. Could a giant copy it? Probably.

What protects it. IRAP, DoD365, and live production use inside classified US and Australian defence networks that Microsoft's commercial tools are not accredited to touch.

What would change this call

Whether archTIS signs a multi-year US DoD commercial contract at material scale within 6 months of the May 2026 pilot completion. Would show the defence moat converts into durable revenue, not just pilot activity.
Whether CBA refinances or extends the A$8M debt tranches maturing Oct 2026 and Jan 2027. Would show the company avoided a liquidity cliff or forced dilution.
FY2026 results due around August 2026 showing organic ARR growth excluding the Spirion acquisition. Would show underlying demand is growing, not just acquired revenue masking decline.

Key numbers

Q3 FY26 ARR hit A$15.1M, up 231% YoY (2026-03-31)
US DoD deployment passed all 60 test cases (2026-05-27)
Australian DoD renewed Kojensi deal worth A$3.2M (2026-07-14)

Named risks

A$8M CBA debt tranches maturing Oct 2026 and Jan 2027 amid continued net losses. Severity: high
FY2025 EBITDA margin near -104% with no clear path to organic profitability. Severity: high
Core organic revenue fell 38% YoY in FY2025, with ARR growth mostly inorganic via Spirion. Severity: medium
Ongoing share dilution from employee option and performance-right conversions. Severity: medium
Microsoft Purview and ZT4AI commoditizing adjacent baseline data-classification workflows. Severity: medium

Rivals, as read in July 2026

Rival	Direction	Evidence
Microsoft	contesting	ZT4AI framework with 700 controls launched RSA 2026-02, while also serving as archTIS platform partner
Varonis	losing to	Larger established DSPM incumbent dwarfing archTIS's niche defence position as of 2026
Spirion	gaining on	archTIS absorbed Spirion at a 0.9x ARR fire-sale multiple, completed 2025-10-01

Questions people ask

Is archTIS profitable in 2026?: No. archTIS remains loss-making, with FY2025 EBITDA margin around -104% and profit margin -78% on revenue of A$6.07M for the year ended June 30, 2025, down 38% from A$9.8M in FY2024, per stockanalysis.com data as of December 2025.
Could AI replace archTIS's NC Protect product?: Not easily for classified defence use, since archTIS holds defence accreditations like IRAP and a US DoD production deployment (live since December 2025, 60/60 test cases passed May 27, 2026), but AI-driven Microsoft Purview classification features are commoditizing adjacent baseline DSPM workflows.
Who is archTIS's biggest competitor?: Microsoft is both partner and threat: its Purview platform and new ZT4AI framework, launched at RSA 2026 with about 700 controls, encroaches on classification workflows, while larger DSPM vendor Varonis outsizes archTIS in the broader data-security market as of 2026.
Did archTIS win a US Department of Defense contract?: Not yet as a commercial deal. archTIS's NC Protect passed all 60 DoD test cases on May 27, 2026, and has been in live DoD365 production since December 2025, but a material multi-year commercial contract was still under negotiation as of mid-2026.
How much revenue does archTIS make and is growth real?: FY2025 revenue was A$6.07M, down 38% YoY, but reported ARR hit A$15.1M by March 31, 2026 (up 231%), largely because archTIS acquired Spirion in October 2025, a company that itself had ~A$17M ARR pre-acquisition, so organic growth is smaller than headline ARR suggests.
Who owns archTIS?: archTIS Limited (ASX:AR9) is an independently listed public company with no parent, trading on the Australian Securities Exchange since September 2018 and also on OTCQB in the US as ARHLF, funded via equity raises and bank debt rather than private ownership.

Timeline

2026-07-14CBA facility extended to A$8M across three tranches maturing Oct 2026 and Jan 2027
2026-07-10837,437 new shares listed following employee options conversion
2026-06-16archTIS joins Microsoft 'From HQ to the Edge' defense partner ecosystem
2026-05-27US DoD NC Protect deployment passes all 60 test cases
2026-02-28Microsoft launches ZT4AI framework with ~700 controls at RSA 2026
2025-12-31NC Protect goes live in US DoD365 production environment
2025-10-01Spirion acquisition completed for approximately A$15.7M
2025-08-27archTIS announces acquisition of Spirion LLC
2025-07-31archTIS raises A$7.5M placement to fund US defence expansion
2018-09-30archTIS lists on the ASX

Revision history

26 July 2026

First assessed. Losing its protection. The text above is fixed as of this date and is not edited afterwards.

In the same band

Seqrite Meiya Pico NSFOCUS