Spectra Systems shares rise 8% as sensor contract drives record profits

Core Viewpoint - Spectra Systems Corporation experienced a significant increase in profitability and share price following the successful delivery of a major sensor contract, leading to a doubling of adjusted earnings per share. Financial Performance - Revenue increased by 30.7% to $64.3 million for the year ended December 31, 2025 [2] - Adjusted EBITDA surged by 82.9% to $27.3 million [2] - Adjusted profit before tax and amortization more than doubled to $25.2 million [2] - Adjusted earnings per share rose 100% to 37.8 US cents, with a 133% increase when including stock compensation adjustments [2] Drivers of Profitability - The profitability boost was primarily due to the partial completion of a sensor order for a long-standing customer, generating $5.7 million in payments during 2025 [3] - A sensor maintenance contract worth approximately $6.7 million has been executed, covering 2026 to 2030, providing additional revenue visibility [3] Business Segments - The gaming software security business achieved record revenues and profitability during the year [4] - The UK secure printing subsidiary was awarded a $4 million, four-year hybrid stamp contract [4] Future Outlook - Near-term opportunities include qualification of polymer substrate with a second central bank and expansion of hybrid stamp sales to additional postal authorities [5] - Potential adoption of smartphone authentication technology for tax stamp programs is also identified [5] - Cash at year-end stood at $14.8 million, with debt of $3.3 million [5]