archTIS Limited reports a remarkable 308% increase in annual recurring revenue, driven by deepening ties with the U.S. Department of Defense and strategic Spirion acquisition integration.
- 308% increase in Annual Recurring Revenue to $16.3 million
- Successful deployment and renewal of NC Protect licenses with U.S. Department of Defense
- Achieved $4.5 million in annualised cost synergies from Spirion acquisition
- Launched NC Protect Version 9 tailored for large-scale defence environments
- Secured a non-dilutive A$8 million senior secured debt facility for U.S. expansion
Strong Growth Amid Strategic Expansion
archTIS Limited (ASX, AR9) has delivered an impressive performance in the December 2025 quarter, posting a 308% increase in Annual Recurring Revenue (ARR) to $16.3 million. This surge follows the completion of its Spirion acquisition and reflects the company’s growing footprint in the U.S. Department of Defense (DoD) market. The company’s data-centric security solutions, particularly its NC Protect platform, are gaining traction as the U.S. DoD advances its zero trust security mandates.
Deepening U.S. Defence Engagement
During the quarter, archTIS successfully deployed NC Protect into a live Microsoft DoD365 production environment, marking a significant milestone in operational validation. The renewal of 1,000 production licences further cements its role within the DoD’s secure cloud infrastructure. While enterprise licensing discussions faced delays due to a federal government shutdown, they have since resumed, with potential scaling to blocks of approximately 8,000 users. This positions archTIS well for expanded adoption across the U.S. defence sector.
Spirion Acquisition Driving Synergies and Cross-Sell
The October 2025 acquisition of Spirion has been a catalyst for growth and operational efficiency. archTIS has completed the initial 90-day integration phase, achieving all milestones on schedule and realising $4.5 million in annualised cost synergies through a global workforce realignment. Cross-selling initiatives are underway, leveraging Spirion’s established customer base alongside archTIS’ security platform to offer comprehensive solutions to government and regulated enterprises.
Product Innovation and Market Positioning
Innovation remains at the forefront with the launch of NC Protect Version 9, designed specifically for large-scale, hardened environments like those required by the U.S. DoD and defence industry. Enhancements include a scalable platform architecture, a visual policy builder, and deeper integration with Microsoft security tools. This release underscores archTIS’ commitment to meeting the complex demands of regulated sectors.
Financial and Funding Outlook
While operating expenses rose to $5.9 million due to expanded U.S. operations and acquisition-related costs, archTIS secured a non-dilutive A$8 million senior secured debt facility with Regal Tactical Credit Fund to support ongoing U.S. market expansion and Spirion integration. Despite a negative operating cash flow of $4.1 million this quarter, the company maintains a solid cash balance of $6.5 million and total available funding of $7.02 million, positioning it to navigate timing delays in government contracts and capitalise on growth opportunities.
Bottom Line?
archTIS is poised at a pivotal juncture, with operational momentum and strategic investments setting the stage for broader U.S. defence market penetration and sustainable growth.
Questions in the middle?
- How will archTIS navigate potential delays in U.S. DoD procurement cycles?
- What are the next milestones for Spirion integration and cross-selling success?
- Can archTIS sustain its growth trajectory while managing elevated operating costs?