Archtis Locks in $3.2M Defence Contract With $1M in Annual Recurring Licences
Defence contract secured: archTIS lands $3.2M Kojensi award
archTIS (ASX:AR9) has secured a $3.2M (incl. GST) contract from the Australian Department of Defence for the continued and expanded licensing of Kojensi Enterprise, alongside application development and maintenance services.
The award is anchored by $1.0M in annual recurring software licences (ARR) plus $2.2M in application development and maintenance services. It was granted under the company’s existing ICT Provider Arrangement (ICTPA) Deed of Standing Offer with Defence.
This is both a renewal and an expansion. Defence is not simply renewing Kojensi, it is investing to broaden the platform’s footprint, building on what archTIS describes as an unbroken run of successive contract awards within the agency.
For investors, the structure matters. Recurring, certified software revenue from a strategic government customer feeds directly into the company’s ARR growth strategy, the highest-quality revenue type a software business can hold.
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Contract terms and the recurring revenue angle
The deal breaks down into a predictable recurring component and a larger services component, with optional extensions layered on top.
Key terms of the award include:
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Total award: $3.2M (incl. GST)
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Annual recurring revenue (licences): $1.0M ARR
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Application development and maintenance services: $2.2M
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Term: 12 months commencing 1 July 2026
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Defence may extend by up to two further 12-month periods, exercisable at its sole discretion
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The contract may be terminated for convenience, consistent with prior Defence awards
The following table sets out each contract element and its significance for shareholders.
| Contract Element | Value | Type | Investor Impact |
|---|---|---|---|
| Software licences | $1.0M | Recurring (ARR) | Predictable revenue base |
| App development & maintenance | $2.2M | Services | Expanded scope, deeper integration |
| Extension options | 2 × 12 months | Optional | Future revenue visibility |
The recurring licence revenue offers a predictable base, while the larger services component signals that Kojensi is evolving in step with Defence’s operational requirements. The two optional 12-month extensions, exercisable at Defence’s discretion, add a layer of potential future revenue visibility, though neither is guaranteed.
The Kojensi renewal sits within a broader ARR acceleration story: archTIS reported 231% ARR growth to $15.1 million in Q3 FY26, underpinned by a combination of Australian Defence renewals, a completed U.S. DoD development project, and a U.S.-European military alliance deployment.
What is Kojensi and why it matters inside Defence
Kojensi Enterprise is a government-certified platform purpose-built for the secure access, sharing and collaboration of sensitive and classified information within the highest-security ICT environments.
The platform is deployed on-premises across Defence’s sensitive information collaboration environment. On-premises means the software runs on the customer’s own servers rather than in the public cloud, an arrangement often required for the most sensitive government data.
archTIS describes its broader approach as policy-enforced zero trust, attribute-based access and data controls (ABAC). In plain terms, access to data is granted based on attributes such as a user’s clearance, role or location, with the assumption that no user or system should be trusted by default.
For investors, this is the key to the thesis. Certified software embedded inside a classified environment is difficult and costly to replace, creating high switching costs and a meaningful incumbency advantage for the provider already in place.
Cementing incumbency: archTIS as the strategic Defence provider
The award cements archTIS as the incumbent provider for policy-enforced information security software inside Defence’s classified ICT environment.
Rather than a first-time entry, the contract represents a continuation of a long-standing relationship and what the company calls an unbroken run of successive contract awards within the agency. The added capability enhancements indicate that Kojensi is being adapted to Defence’s changing needs rather than simply maintained.
archTIS has also noted potential for future licensing growth, specifically through increased user numbers and additional deployment sites, though no financial figures have been attached to that potential.
The Australian Defence renewal follows a pattern of multi-jurisdiction defence wins: earlier in 2026 archTIS secured a US-European military alliance contract worth A$1.22 million for its NC Protect solution, extending the same zero trust data security approach into NATO-aligned operational environments.
Daniel Lai, Managing Director and CEO
“This win is a commitment from the Australian Department of Defence to invest in Kojensi and archTIS. Defence has not only renewed Kojensi Enterprise, but they are investing to expand Kojensi. This award builds on archTIS’ long-standing relationship with Defence and an unbroken run of successive contract awards within the agency. The added capability enhancements demonstrate that Kojensi is evolving in lockstep with Defence’s operational needs. This is exactly the kind of sticky, recurring revenue from a strategic government customer that powers our ARR growth strategy.”
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What comes next for archTIS
The company has stated it continues to invest in Kojensi to stay ahead of the evolving information security requirements of Defence and allied government agencies.
That investment positions the platform for further growth in user numbers and deployment sites, although such expansion remains a stated objective rather than a confirmed outcome.
The award also sits within a wider product suite. archTIS markets Trusted Data Integration, Kojensi, NC Protect and Spirion to government, defence, enterprise and regulated industries, applying its data-centric security approach across cloud, on-premises and hybrid environments.
The differentiated value proposition remains consistent throughout. archTIS offers a government-certified platform purpose-built for the secure collaboration of sensitive and classified information in the most demanding ICT environments, a position this latest Defence award further reinforces.
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