Spectra Systems (SPSY) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 was $21.62M, down 38.2% year-over-year due to the prior period's exceptional sensor contract revenue and delays in security printing sales, with recovery expected in H2.

• Adjusted EBITDA fell 68.7% to $4.93M and adjusted PBTA dropped 71.2% to $4.14M, reflecting lower revenue and increased operating expenses.

• Net income attributable to shareholders was $2.91M, or $0.06 per basic share, compared to $10.06M ($0.21 per share) in H1 2025.

• Cash at period end was $14.89M, with a $6.59M dividend declared and paid post-period, and debt reduced by 39.5% since year-end.

Financial highlights

• Gross profit was $10.63M (49.2% margin), down from $19.92M (57.0%) year-over-year.

• Operating expenses rose to $7.09M, with G&A up 18.8% and R&D down 2.2%.

• Cash used in operations was $0.55M, with $11.4M collected from sensor contract milestones.

• Dividend of $0.136 per share ($6.59M total) declared and paid in July 2026.

Outlook and guidance

• Security printing group expects a small full-year profit, reversing H1 losses due to a fully loaded order book and higher-than-anticipated tax stamp orders.

• Increased internal forecast for tax stamp volumes in 2027 based on current production.

• Near-term prospects include significant red phosphor sales, further Fusion substrate orders, and potential large-scale polymer banknote contracts.