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Will AR9’s DoD pilot turn into a full roll-out?

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Question asked 27/06/2025

Will AR9’s DoD pilot turn into a full roll-out?

G’day team, AR9 (archTIS) just landed two interesting deals – a 1,000-user pilot of NC Protect inside the U.S. DoD cloud plus a fresh UK defence contract. The share price has jumped (off multi-year lows), but I'm trying to sort substance from hype: 1. How much weight should we put on the DoD pilot? Do most pilots at this level lead to a full roll-out (say 150 k seats or more), or do plenty stall? 2. Knock-on effect: if AR9 does secure a large-scale DoD roll-out, does that materially smooth the path to NATO and other allied markets? Appreciate your straight-shooting views

Answer

Hi Michael,

AR9 is a $62mn Australian cybersecurity company specialising in secure information sharing and collaboration solutions for government, defense, and enterprise sectors. As you mentioned AR9 has been busy this month:

They entered a 3-year contract with the UK division of an unnamed multi-national aerospace and defence company for its NC product – dynamic data protection and attribute-based access control (ABAC) for sensitive information.
the initial contract is valued at ~$263k for 400 users with the implementation if it occurs expected to serve as the global model for Microsoft 365 deployment over 100,000 employees – i.e. huge blue sky.
Also, on June 18, AR9 announced it had secured a $4.06 million contract with the Australian Department of Defence.

The contract wins not only boost archTIS’s revenue but also enhances its credibility in the defence sector, potentially opening doors for further government and enterprise engagements. While the risks are high that larger contracts don’t follow in this rapidly evolving competitive space. However, while AR9 is not yet profitable its low debt makes it an interesting aggressive play into the “hot sector” – the risk/reward looks ok in the 16-20c area.

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ArchTIS Ltd (AR9)

LAST UPDATED 27/06/2025 13:55

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