archTIS secures US-European military alliance contract worth up to A$1.22 million
archTIS Limited (ASX: AR9) has been awarded a contract by a transatlantic military alliance to safeguard member nation data for secure collaboration across allied defence operations. The contract carries a total potential value of approximately A$1.22 million across an initial award and two option years, validating NC Protect’s attribute-based access control capabilities in a multi-coalition environment.
The initial contract award covers 2,500+ users for approximately A$416,000, with two subsequent option years totalling approximately A$805,000. The initial period covers the balance of calendar year 2026, comprising approximately A$244,000 for licensing and approximately A$170,000 for configuration and support. Each of the two 12-month option years includes approximately A$267,000 in licensing and approximately A$136,000 in support costs, though the award may be cancelled for convenience and optional year issuance remains at the sole discretion of the purchaser.
The contract followed a successful funded proof of concept and competitive evaluation process that confirmed NC Protect met the required ABAC and compliance capabilities. NC Protect could be operationalised within the existing multi-coalition enterprise architecture, which could provide licence growth opportunities as the alliance expands its security requirements.
| Period | Licensing | Support | Total | Users |
|---|---|---|---|---|
| Initial Award (Balance 2026) | A$244,000 | A$170,000 | A$416,000 | 2,500+ |
| Option Year 1 | A$267,000 | A$136,000 | A$403,000 | TBC |
| Option Year 2 | A$267,000 | A$136,000 | A$403,000 | TBC |
| Total Potential Award | A$778,000 | A$442,000 | A$1,220,000 | 2,500+ |
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What is attribute-based access control and why defence customers need it
Attribute-based access control (ABAC) is a security approach that grants or restricts access based on attributes such as user role, security clearance, data sensitivity, location, and real-time context rather than static role assignments. This contrasts with traditional role-based access control (RBAC), which cannot handle dynamic, multi-nation environments where “need-to-know” and “need-to-share” must coexist without compromising operational security or data sovereignty.
In the context of this alliance contract, dozens of allied nations operating across multiple civil-military security domains required fine-grained, context-aware access controls that NC Protect delivers natively within Microsoft SharePoint. Traditional role-based systems were insufficient for this environment, where organisations must balance competing security imperatives whilst enabling effective coalition operations. NC Protect was chosen because it delivers fine-grained ABAC for SharePoint through native integration, centralised policy administration, and real-time enforcement, thereby providing precise control over information access across multiple security enclaves.
The shift from RBAC to ABAC in defence environments represents a structural tailwind for archTIS. As coalition operations grow more complex and Zero Trust security architectures become mandatory across allied defence organisations, demand for dynamic access control solutions that preserve national control whilst enabling interoperability should increase materially.
US DoD deployment progress and strategic positioning
archTIS has reported continued progress with its key US Department of Defence contract, providing investors with an operational update alongside the alliance contract announcement. The Company has now successfully deployed NC Protect into a complex US DoD operational environment, representing a material milestone in the second-stage deployment of NC Protect licences across the US DoD environment.
The Company has completed contracted development services and continues to work alongside the US DoD to support their Zero Trust mandate targets. The successful deployment and integration validates NC Protect’s capability to operate within the world’s largest defence technology market, where Zero Trust architectures are becoming mandatory rather than aspirational.
Key US DoD milestones achieved:
- Deployment into live environment: NC Protect has been successfully deployed into a complex operational environment, demonstrating production-readiness.
- Integration across complex architecture: The solution has been integrated into the existing US DoD technology stack, confirming compatibility with mission-critical systems.
- Completion of contracted development services: archTIS has fulfilled its development obligations, positioning the contract for potential licence expansion.
The US DoD progress, combined with the alliance contract, demonstrates archTIS’s expanding footprint across both US and allied defence markets. This dual positioning provides strategic optionality, as success in one environment generates reference value and technical validation for the other.
Management commentary on defence market opportunity
Daniel Lai, CEO and Managing Director
“This award represents a significant milestone for archTIS, being selected as the preferred policy enforcement data-centric security control for another multi-national defence environment. The selection reflects growing demand for our data-centric security capabilities, enabling secure, policy-based information sharing that preserves national control, data sovereignty, and compliance while supporting coalition operations. Strategically, this win strengthens our position in priority defence and allied markets, expands our footprint within large-scale enterprise environments, and provides a strong reference for additional coalition and government opportunities. Building on our proven track record with defence and intelligence customers, the award reinforces archTIS’ role as the Zero Trust partner and supports our long-term growth strategy in high-value, mission-critical markets.”
Kurt A. Mueffelmann, Chief Strategy Officer and US President, added that the military alliance contract award represents an important milestone in the Company’s global growth strategy for the defence sector. “With archTIS’ expansion in the U.S. and Australian DoD, this achievement highlights the increasing demand for our data-centric security capabilities within allied defence environments. We are proud to support missions by strengthening interoperability and enabling secure, Zero Trust collaboration among coalition partners.”
CBA facility increased to A$8 million to fund growth
archTIS has secured an increase in its Commonwealth Bank of Australia financing facilities from A$2 million to a total of A$8 million at market-rate terms with standard reporting and compliance. Interest is charged at a fixed margin on top of Bank Bill Swap Yield (BBSY), consistent with commercial lending practices for technology companies at this stage of development.
The expanded facility comprises three tranches designed to provide working capital flexibility as the Company executes its growth strategy:
- Facility 1: A$4 million, maturing 30 July 2026
- Facility 2: A$2 million, maturing 29 January 2027
- Facility 3: A$2 million, maturing 31 January 2027
The facility upgrade reflects further confidence in the business’ strategy and overall execution capability. The increase will help support working capital cycles, product investment, and ongoing contract execution as the Company continues to meet growing demand for its data-centric security capabilities in government, defence, and enterprise markets.
For investors, the facility increase signals bank confidence in archTIS’s revenue trajectory and contract pipeline, whilst providing the Company with runway to pursue contract opportunities and invest in product development without immediate equity dilution. The staggered maturity dates provide flexibility to manage refinancing or repayment as cash flow visibility improves.
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What this means for archTIS investors
The 26 February 2026 announcement comprises three interconnected elements that collectively strengthen archTIS’s growth trajectory: a new multi-nation defence contract, continued US DoD deployment progress, and an expanded banking facility to support execution.
The alliance contract delivers immediate revenue visibility through the initial A$416,000 award whilst creating optionality for expansion through two A$403,000 option years and potential licence growth within the existing multi-coalition enterprise architecture. The contract carries strategic value beyond its financial contribution, providing a credible reference for additional coalition and government opportunities where multi-nation interoperability and data sovereignty requirements align with NC Protect’s capabilities.
The US DoD deployment update validates archTIS’s positioning within the world’s largest defence technology market. Successful integration into a complex operational environment and completion of contracted development services suggests the contract is transitioning from implementation to potential expansion, where second-stage licence deployments could generate material revenue growth.
The expanded CBA facility provides working capital to execute on the pipeline without near-term dilution. The increase from A$2 million to A$8 million suggests bank confidence in revenue quality and forward visibility, providing archTIS with runway to fund product investment, contract execution, and growth initiatives as demand for data-centric security capabilities accelerates.
Three strategic takeaways for investors:
- New recurring revenue stream with expansion optionality: The alliance contract establishes a foundation for growth through option years and potential licence expansion within the multi-coalition architecture.
- US DoD deployment validates Zero Trust credentials: Successful integration into a complex operational environment strengthens archTIS’s competitive position as defence organisations implement Zero Trust mandates.
- A$8 million facility provides growth capital: The facility upgrade supports contract execution and product investment without immediate equity dilution, reflecting bank confidence in strategy and execution capability.
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