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Retained earnings is the accumulated portion of net income that is not distributed to shareholders. Spectra Systems's retained earnings for the quarter that ended in Dec. 2025 was $-7.49 Mil.
Spectra Systems's quarterly retained earnings
increased
from Dec. 2024 ($-21.94 Mil) to Jun. 2025 ($-17.47 Mil) and
increased
from Jun. 2025 ($-17.47 Mil) to Dec. 2025 ($-7.49 Mil).
Spectra Systems's annual retained earnings
increased
from Dec. 2023 ($-24.86 Mil) to Dec. 2024 ($-21.94 Mil) and
increased
from Dec. 2024 ($-21.94 Mil) to Dec. 2025 ($-7.49 Mil).
Spectra Systems (OTCPK:SCTQ) Retained Earnings Explanation
Historically profitable companies sometimes have negative retained earnings. This is because they have cumulatively paid out more to shareholders than they reported in profits.
For example, in 2011, Microsoft had negative retained earnings. This does not mean the company lost more money than it made over the years. It just means it paid out more money than it earned.
If a company has negative retained earnings, investors should check the 10-year financial results. They should not assume that negative retained earnings prove a company has generally lost money in the past.
Of course, many companies with negative retained earnings have indeed lost money in the past.
Retained Earnings: Warren Buffett's Secret.
One of the most important indicators of durable competitive advantage. Net earnings can be paid out as dividends, used to buy back shares or retained for growth.
If the company loses more than it has accumulated, retained earnings is negative.
If a company isn't adding to its retained earnings, it isn't growing its net worth.
Rate of growth of retained earnings is good indicator whether it's benefiting from a competitive advantage.
Microsoft is negative because it chose to buyback stock and pay dividends.
The more earnings retained, the faster it grows and increases growth rate for future earnings.
Spectra Systems Retained Earnings Historical Data
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The historical data trend for Spectra Systems's Retained Earnings can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Retained Earnings is the accumulated portion of net income that is not distributed to shareholders. Because the net income was not distributed to shareholders, shareholders' equity is increased by the same amount.
Of course, if a company loses, it is called retained losses, or accumulated losses.
Spectra Systems (SCTQ) has a Retained Earnings of $-7.49 Mil as of Dec. 2025. Retained earnings is the amount of net income not issued to shareholders. View historical data on Spectra Systems and its competitors.
Is Spectra Systems' Retained Earnings too high?
Spectra Systems' current Retained Earnings is $-7.49 Mil. Overall, Spectra Systems has a GF Score™ of 78/100, reflecting its overall financial health beyond just this single metric.
How does Spectra Systems' Retained Earnings compare to UBER and SHOP?
Spectra Systems' Retained Earnings of $-7.49 Mil can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Retained Earnings for a Software company?
A good Retained Earnings depends on the Software industry context. However, Retained Earnings should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Retained Earnings mean?
A high Retained Earnings can signal that a stock is expensive relative to its fundamentals. Retained earnings is the amount of net income not issued to shareholders. View historical data on Spectra Systems and its competitors. Spectra Systems's current Retained Earnings is $-7.49 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Spectra Systems stock overvalued right now?
Spectra Systems (SCTQ) has a current Retained Earnings of $-7.49 Mil. The stock's GF Value™ is $4.23, compared to a current price of $2.13 — trading 49.6% below its estimated fair value. The current Retained Earnings is $-7.49 Mil. Spectra Systems' overall GF Score™ is 78/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Retained Earnings calculated?
Retained Earnings is calculated from a company's financial statements. For Spectra Systems (SCTQ), the current Retained Earnings is $-7.49 Mil as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Spectra Systems (SCTQ) Overvalued in 2026?
Based on GuruFocus' analysis, Spectra Systems stock appears to be undervalued.
The current stock price of $2.13 is trading 49.6% below its estimated GF Value™ of $4.23.
Key valuation signals for SCTQ:
Retained Earnings: $-7.49 Mil
GF Value™: $4.23 vs. price of $2.13 (49.6% below fair value)
No single metric tells the full story. See the SCTQ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Spectra Systems Corp manufactures, and markets technology-based products used to authenticate and process banknotes and also offers secure software products for gaming. The company has divided its business into Authentication Systems, Security Printing, and Banknote Cleaning. The company derives maximum revenue from Authentication Systems that involve the hardware, software, and materials related to the authentication of banknotes, tax stamps, and other high-value goods.
78GF Score
Get the complete analysis for SCTQ
Retained Earnings is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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