archTIS and 2 Other ASX Penny Stocks to Watch in 2025

In the dynamic world of the Australian Securities Exchange (ASX), penny stocks often fly under the radar, but they can offer significant growth potential for savvy investors. archTIS Limited (ASX: AR9) is one such company that has caught our attention, along with two other promising penny stocks. Let's dive into the reasons why these companies are worth watching in 2025.



1. archTIS Limited (ASX: AR9)
archTIS is a software company specializing in secure information sharing and collaboration solutions. The company's flagship product, Kojensi, enables secure collaboration of sensitive and classified information within the defense industry, government, multinational coalitions, and other critical sectors. archTIS's business model is well-positioned to capitalize on the growing demand for secure information sharing and collaboration, as data breaches and cyber threats continue to pose significant risks to organizations.



archTIS's strong financial performance, with revenue increasing by 53.91% in 2024 compared to the previous year, demonstrates the company's growth potential. Despite a decrease in market cap, archTIS's revenue growth indicates that the company is well-positioned to continue expanding its customer base and market reach. Additionally, archTIS's diverse customer base, which includes defense, government, and multinational coalitions, helps mitigate risks associated with relying on a single industry or customer segment.

2. Appen Limited (ASX: APX)
Appen is a global leader in the development of high-quality, human-annotated datasets for machine learning and artificial intelligence. The company's services are used by some of the world's leading technology companies, including Google, Facebook, and Amazon. Appen's business model is well-positioned to benefit from the continued growth of AI and machine learning technologies, as these technologies require large amounts of high-quality data to train and improve their algorithms.



Appen's strong financial performance, with revenue increasing by 17.5% in 2024 compared to the previous year, demonstrates the company's growth potential. The company's diverse customer base, which includes some of the world's leading technology companies, helps mitigate risks associated with relying on a single customer or industry. Additionally, Appen's global presence and expertise in data annotation make it well-positioned to capitalize on the growing demand for AI and machine learning technologies.

3. Zip Co Limited (ASX: Z1P)
Zip Co is a leading provider of digital payment and buy now, pay later (BNPL) services. The company's platform enables consumers to shop online and in-store using a digital wallet, with the option to pay for their purchases in installments. Zip Co's business model is well-positioned to benefit from the continued growth of e-commerce and the increasing demand for flexible payment options.



Zip Co's strong financial performance, with revenue increasing by 35.7% in 2024 compared to the previous year, demonstrates the company's growth potential. The company's diverse customer base, which includes both consumers and merchants, helps mitigate risks associated with relying on a single customer or industry. Additionally, Zip Co's innovative payment solutions and strong brand recognition make it well-positioned to capitalize on the growing demand for digital payment and BNPL services.

In conclusion, archTIS, Appen, and Zip Co are three ASX penny stocks that offer significant growth potential for investors in 2025. Each company's unique business model and strong financial performance position them well to capitalize on growing market trends and opportunities. By staying informed about these companies and their respective industries, investors can make well-informed decisions about which penny stocks to watch and invest in.