archTIS Ltd (ASX:AR9, OTCQB:ARHLF) has delivered strong March quarter growth, with progress across its NC Protect and Spirion platforms, new defence wins and completion of a key US Department of Defense software project.
archTIS has reported annual recurring revenue (ARR) of A$15.1 million for the March 2026 quarter, up 231% on the prior corresponding period, alongside total revenue of A$3.5 million, up 143%.
The data-centric security specialist also maintained a strong gross margin of 71%, with year-to-date gross margin at 74%, reflecting its shift toward higher-value proprietary licensing.
Operationally, the quarter was marked by the full delivery of a US Department of Defense custom software development project, which is now production-ready and meets agreed mission-specific requirements.
The milestone supported continued engagement with the US DoD and positioned the company for expanded deployment within secure Microsoft DoD365 environments.
CEO and managing director Daniel Lai said the US remained the centrepiece of archTIS’ long-term growth strategy, with the quarter’s progress reinforcing the company’s alignment with US defence, intelligence and allied partner markets.
“The US is the centrepiece of archTIS' long-term growth strategy, and this quarter's progress reinforces the strategic alignment of building archTIS’ capabilities to service the US Defense, intelligence and allied partners community. The successful delivery of our US DoD custom software project, alongside our expanding footprint across allied military environments, validates archTIS as a trusted provider of zero-trust, attribute-based data security at scale. While procurement timelines have been influenced by heightened military activity and shifting defence priorities, engagement and technical validation continue to advance. We remain confident of a meaningful conversion of existing deployments into larger enterprise rollouts, underpinning significant shareholder value.”
Military contracts
The company also secured a contract with a US and European-based military alliance for its NC Protect platform. The initial award covers more than 2,500 users and is valued at about A$416,000 for the remainder of CY2026, with total potential contract value of about A$1.22 million including extension options.
Progress was also made across the Spirion platform, with archTIS securing a new sale worth about A$145,000 within a 60-day sales cycle to a global IT provider operating across advanced computing, artificial intelligence, high-performance computing and immersive digital platforms.
Meanwhile, NC Protect is being integrated with Mindbreeze InSpire for an existing global manufacturing customer, enabling attribute-based access controls within AI-powered enterprise search and knowledge management workflows.
The company ended the quarter with A$8 million in available funding and said operating expenses had improved by A$1 million from the previous quarter, excluding one-off costs associated with the Spirion acquisition and credit facility expenses.