With AI and tech sector having good forecasts of continued growth, penny stocks from ASX listed companies are gaining strong business momentum. Some of the growing companies to invest in are
ArchTIS: ASX Penny Tech stock secures $7.5M to Fuel U.S. Defence push
ArchTIS Limited (ASX: AR9), a lesser known but fast-growing cybersecurity player on the ASX, is quietly carving out a stronghold in the niche market of secure data collaboration. The company is among top growth stocks and has recently locked in A$7.5 million via a placement, providing fresh ammunition to target U.S. defence contracts, deepen global partnerships, and accelerate its tech innovation roadmap.
Targeting High-Security Defence and Government Markets
ArchTIS isn’t just another cybersecurity startup. It builds platforms that secure sensitive government, military, and enterprise data using Attribute-Based Access Control (ABAC) and Zero Trust security models. Its core offerings - Kojensi, NC Protect, and Trusted Data Integration are already used by the Australian Department of Defence, global defence contractors, and universities collaborating on classified projects.
Recent wins include a multi-year Kojensi deal with the South Korean aerospace sector, the company’s first sale in Japan via Microsoft’s Defence and Intelligence team, and expanded renewals in the U.S. and Australian legal and defence sectors.
Fresh Capital for Global Scale-Up
The $7.5 million raise was done at $0.15 per share - a 17.4% discount to the 7-day VWAP and was supported by a mix of new and existing institutional investors. The funds are being strategically deployed across three major areas:
- U.S. Expansion (A$3 million): Hiring and scaling internal teams to handle implementation and support in the world’s largest defence tech market.
- Strategic Partnerships (A$1.5 million): Strengthening alliances with companies like Microsoft and developing co-marketing and sales initiatives.
- Product Development (A$3 million): Investing in AI, automation, and compliance features to make its platforms more robust for enterprise use.
The capital injection comes at a time when archTIS is already showing signs of positive momentum, including ARR of $4.6 million, up 27% YoY, and gross margins of 75%, with reduced operating expenses (down 18%).
Riding a Tailwind of Cybersecurity Demand
With global cyber threats rising, demand for secure information-sharing platforms is only expected to grow. archTIS’ tailored solutions for classified data sharing, especially for military and government, give it a defensible niche. The recent Direktiv asset acquisition has expanded its automation and orchestration capabilities, which was validated by an immediate sale in Japan worth A$390,000.
Backed by experienced leadership and a clear go-to-market strategy, archTIS aims to become the default provider of data-centric security in the defence industrial base and critical infrastructure sectors across the U.S., UK, Japan, and NATO nations.
One to Watch in the ASX Tech Microcap Space
While still trading at penny stock levels, archTIS is demonstrating the kind of operational discipline, recurring revenue strength, and international opportunity that often precede sharp re-ratings. Its combination of high-security clientele, global expansion strategy, and proprietary tech stack sets it apart from many early-stage tech peers on the ASX.
For investors seeking exposure to an emerging, mission-critical cybersecurity story, ArchTIS (AR9) may just be at the beginning of a multi-year growth journey.
AI-Media Technologies: ASX Penny Tech Stock Reinventing Global Captioning with AI
As Australia’s AI boom gains momentum, AI-Media Technologies (ASX: AIM) is emerging as a quiet achiever in the small-cap tech space. This under-the-radar penny stock is actively transitioning from a legacy services business into a high-margin, AI-powered SaaS player and it’s starting to deliver.
Pivoting from People to Platforms
Founded in 2003 and listed in 2020, AI-Media was traditionally known for its human-led live captioning and transcription services. But it’s now in the thick of a major transformation: moving away from labour-intensive services to scalable AI-based software.
The company’s flagship offering, LEXI, is a real-time captioning engine powered by proprietary AI. It not only delivers transcriptions but can now translate speech into multiple languages instantly via its new LEXI Voice product. And with LEXI Brew, it enters the Generative AI space by allowing enterprise clients to plug ChatGPT-like models into their own secure data without losing privacy.
Strong Growth in Tech Revenue and AI Momentum
Despite a 3% dip in total revenue (1H25: $31.8 million), AIM’s tech revenue rose 12% year-over-year to $17.5 million. LEXI-related sales soared 45%, while usage minutes were up 48% to 33.8 million minutes. Gross margin improved from 63% to 67%, a direct result of higher-margin tech replacing low-margin services.
Hardware sales, particularly encoders that fuel LEXI and iCap workflows, also gained traction. Over 5,800 encoders are now deployed globally, up 19%, with each device contributing recurring revenue and supporting AI-powered features.
Expanding Globally at Record Speed
AI-Media, is one of the high growth stocks, making a bold entry into 14 new countries in just six months, bringing its total to 25. Key among them were major European markets like the UK, France, and Central Eastern Europe. Tech sales in Europe alone grew 300% year-on-year. In the U.S., the company continues to lead in broadcast captioning, while also branching into government and enterprise sectors.
Notably, AIM secured strategic agreements with major broadcasters like ITV (UK) and CME (Eastern Europe). The company’s encoder-based infrastructure allows real-time AI integration into existing media workflows a critical competitive edge.
New AI Products: LEXI Voice and LEXI Brew
The company’s LEXI Toolkit is now broader and bolder. LEXI Voice, launched in February 2025, allows real-time multilingual translation with emotional accuracy - a game changer for live sports, news, and global broadcasts.
LEXI Brew, developed with BrewAI, brings GenAI into secure enterprise environments. It enables organisations to run large language models on their own data behind firewalls, solving a key problem in AI adoption: privacy.
Both products aim to expand the total addressable market far beyond media into enterprise, education, and government.
AIM: A Penny Stock Poised for Rerating?
Currently trading as a microcap penny stock, AIM isn’t without risks it reported a net loss of $2.6 million for 1H25, and EBITDA fell to $0.7 million due to upfront investment in growth. But the company holds a healthy $14.2 million cash balance, and its tech transition appears to be well underway.
With a five-year goal to hit $60 million EBITDA by FY29, AIM is executing methodically. For investors hunting future-facing ASX tech bets with global scale potential, AI-Media is quietly building its case.
(Source: Company Announcements)
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