SPCB

Image source: The Motley Fool. Thursday, Aug. 13, 2026 at 10:00 a.m. ET President and Chief Executive Officer - Ordan Trabelsi Operator: Ladies and gentlemen, good morning, and welcome to SuperCom's Second Quarter 26 financial results and Corporate Update Conference Call. At this time, all participants are in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by 0. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then 1 on your telephone keypad. To withdraw your question, please press star then 2. Participants of this call are advised that the audio of this conference call is being broadcast live over the Internet. Joining me from SuperCom's leadership team is Ordan Trabelsi, Supercom's president and chief executive officer. I would like to remind you that during this call, Supercom management may be making forward looking statements, including statements that address Supercom's expectations for future performance or operational results. Forward looking statements involve risks, uncertainties, and other factors that may cause Supercom's actual results to differ materially from those statements. For more information about these risks, uncertainties, and factors, please refer to the risk factors described in SuperCom's most recently filed periodic reports on form 20 f and form 6-K and Supercom's press release that accompanies this call, particularly the cautionary statements in it. Today's conference call includes EBITDA, a non GAAP financial measure that Supercom believes can be useful in evaluating its performance. You should not consider this additional information in isolation or as a substitute for results prepared in accordance with GAAP. For a reconciliation of this non GAAP financial measure to net loss, a comparable GAAP financial measure, please see the reconciliation table located in Supercom's earning press release that accompanies this call. Reconciliations for other non GAAP financial measures and comparable GAAP financial measures are available there as well. The content of this call contains time sensitive information that is accurate only as of today, 8/13/2026. Except as required by law, Supercom disclaims any obligation to publicly update or revise any information to reflect events or circumstances that occur after this call. It is now my pleasure to turn the call over to Supercom's president and CEO, Ordan Trabelsi. Ordan Trabelsi: Hello, everyone. We are pleased to report another record quarter for SuperCom. In the second quarter of 26, we achieved more than 8-year records for revenue, gross profit, and EBITDA. We are marking our ninth record quarter of the last 10 since the company turnaround began in 2021. These results build on the progress we have delivered over the past several quarters and demonstrate the increasing scale and build an operating leverage of our business model. As we expand the delivery of our proprietary electronic monitoring and public safety technologies to local and national governments around the world, we are seeing continued improvement across our key financial and operational metrics. This performance is being driven by greater operational efficiency, continued to invest in our technology, and our strategy of simultaneously expanding both into new markets and within the markets we already serve. Combined with our significantly strengthened balance sheet, these advancements provide us with a strong foundation to continue scaling the business. I will now turn to our financial results for the second quarter of 26. Revenue increased 13.3% to $8.1 million compared with $7.1 million in the second quarter of 25. Gross profit increased 16% to $4.9 million. Gross margin also expanded by approximately 90 basis points to 60%. Operating income was $900 thousand compared to $1.1 million in the prior year period, and this was largely impacted by the Israeli foreign currency headwinds. During the second quarter, our Israel operations experienced foreign currency headwinds from approximately 17% year over year increases in the average Israeli currency to the US currency exchange rate. The shekel to the dollar. Despite these pressures, we sustained GAAP net income levels at roughly $1.1 million for the quarter similar to the same quarter in the prior year period. On a non-GAAP basis, net income increased to $2.9 million compared with $300 thousand in the prior year period. EBITDA increased by 55.6% to $4 million this quarter compared to $2.5 million in the second quarter of 25 representing our highest quarterly EBITDA in more than a decade. GAAP earnings per share were approximately $0.20, and non-GAAP earnings per share were $0.52. We have also made substantial progress in strengthening our balance sheet. Over the past several years, we have reduced our net debt from close to $35 million to under $10 million Our outstanding long term debt now carries a blended interest rate of approximately 6%, with no cash payments due until the end of 28. This structure provides us with greater flexibility to invest in growth. Cash and cash equivalents totaled approximately $7.4 million as of 6/30/2026 compared to $9.8 million at the end of June 30-- sorry, at the end of 2025. During the quarter, we strategically deployed capital to support working capital needs and accelerate customer onboarding, installations, and technology integration across new contracts in the United States and Europe. Subsequent to quarter end, in early July, we raised approximately $7.5 million in gross proceeds from a common shares only registered direct offering. with a few institutional investors. This additional capital further strengthens our financial position and provides us with increased flexibility to support new deployments and continue executing against our growing pipeline. Finally, our book value of equity totaled approximately $48 million as of June 30, an increase of 28% from approximately $37 million at 6/30/2025. Next, I would like to spend some time discussing the operating leverage in our business and the factors contributing to our profitability and margin expansion. The economics of our programs improve as they mature. At the outset of a new program, we incur upfront costs associated with onboarding, training, development, and deployment. As additional monitoring units are deployed, those initial costs are spread across a larger recurring revenue base. This increases the contribution from each incremental unit and creates meaningful operating leverage. As more of our customer relations mature, we are seeing the benefits of this dynamic reflected in our gross margins. We have also taken several important steps to improve our operational efficiencies. In Europe, we have consolidated logistics, equipment handling, and shipments through a centralized hub in Romania. At the same time, we have brought more IT and customer support responsibilities in house from our subcontractors. This has reduced our reliance on local partners and we have established our own 24 hour support capabilities across multiple projects. These initiatives give us greater control over the customer experience while also improving the efficiency of our operations and building our customer support network. We also continue to incorporate AI capabilities into our operational processes. AI has already helped accelerate development introduce new automation, and improve efficiency across deployment and customer support activities. We believe these are still in the early ages of AI adoption. As we continue to introduce new products, technologies, and automation, see the potential to further reduce labor, support, and administrative requirements associated with operating and scaling our programs. The centralized deployment model we have developed in the United States provides another important operational advantage and leverages economies of scale. Our cloud based platform integrated inventory management, and 24 hour support capabilities allow us to serve programs throughout the country, with a unified infrastructure, 1 shared language, and a common operating environment directly reducing project costs. European national programs often require country specific infrastructure local language customization, and more decentralized support. And while our experience, enables us to manage that complexity effectively, more standardized US model allows us to launch and support new country and state level programs more efficiently and cost effectively. As the US presence expands, we believe its model can support fast deployments and attractive margin potential, or even more attractive than it is today. Underlying all these efforts is the strength of our technology. Many European national programs are awarded through rigorous technology based evaluation processes. In markets including Sweden, Germany, Israel, and Norway, we have displaced incumbent providers that have supported these programs approximately 20 to 25 years. Our win across all 5 Nordic countries, often against longstanding incumbents. Provide compelling validation of the performance, reliability, and capabilities of our technology. As well as our ability to meet the demanding requirements of national electronic monitoring programs. I will now turn our to our growth and diversification strategy. Which remains focused expanding both into new markets and within the markets where we are currently established. Over the 4-year period until 12/31/2025 revenue from our electronic monitoring business grew at a compound annual rate of approximately 30%. Per year, while EBITDA grew at a compound annual rate of approximately 47%. This performance reflects the continued expansion of our recurring revenue base and the increase in operating leverage in our business. In Europe, our results can fluctuate between periods, because our revenue increased includes several large multiyear national programs with each customer's ordering cycle potentially affecting the timing of revenue recognition. Romania, for example, represented a significant portion of our European revenue in prior periods but ordering activity temporarily moderated amid political uncertainty. And as our EMEA contract base has grown, Romania as a similar contract represents less of our revenue. Blend. Romanian program remains active, though. And, important to note, the temporary decline in Romania masked strong growth across the rest of our electronic monitoring business. Excluding the impact of Romania this decline, our underlying revenue would have grown approximately 40% between 2024 and 2025. Until today, we have secured more than 20 wins across European national electronic monitoring programs. And maintain a presence in all 5 Nordic countries. These accomplishments give us a strong regional foundation. But we have continued to see meaningful opportunities to expand further within our existing markets and in new ones. Several significant European opportunities are expected to come to market over the next 18 to 24 months. Including the opportunity in Italy among others. We have also discussed the opportunity in England previously, which remains a substantial opportunity for SuperCom valued at over £150 million. We competed for this England opportunity historically and came in second place. When SUPERCOM had a less developed reference base and significantly more leveraged balance sheet. Since then, we have strengthened our financial position, expanded our European presence, and established a broader record of successfully executing national electronic monitoring programs and makes us a more viable candidate for the England program win. There could be no assurance regarding the outcome of any individual procurement. However, our success in markets that rely mostly on objective, technology based evaluation processes for example, across the Nordic region, gives us confidence that our technology, we are, we are better positioned today. so we can be for this and other large national opportunities. The United States remains another important driver for our growth. Our strategy is not only to enter additional states, but also to expand into more counties, agencies, and programs within each state where we already have an established presence. Since mid 24, we have secured more than 45 new US electronic monitoring contracts and entered 19 new states with access to additional markets through our 18 new regional service provider partnerships. We are also seeing the scale of our contracts increase over time. From smaller initial deployments to more recent awards involving approximately 100 to 250 simultaneous units. We are building our references and moving up in project sizes similar to the pattern we experienced when we started our European expansion. Only this time, it is faster. Many of these wins have involved agencies and service providers transitioning from incumbent vendors and legacy systems to our pure security platform. We have seen this pattern in markets including Alabama, Utah, and Virginia, where customers have selected our technology to modernize their electronic monitoring programs. These wins demonstrate the reliability, flexibility, and scalability of our platform. They also highlight the versatility of our operating model. Which enables us to serve government agencies directly while also supporting regional service providers across a variety of program structures. We currently operate in 22 states, and in 12 of those, we have already expanded to multiple counties. As you build a reputation and establish successful reference programs in each state, we believe there is significant opportunity to deepen our presence in those markets. Our US platform is also supported by leaders in community alternatives. Our wholly owned subsidiary in California. LCA provides reentry and rehabilitation services that complement our core monitoring technology and broaden the range of outcomes we can support for our customers. LCA recently secured a 5-year reentry services contract valued at $2.5 million. And since we acquired LCA, Supercom has secured more than $35 million in new contracts in California alone. Together, our electronic monitoring technology and complementary service capabilities allow us to support customers across a broader range of monitoring, compliance, and rehabilitation needs. Turning now to our pipeline. We continue to see a robust and growing range of opportunities across key markets. 1 of the most significant developments during the quarter was our expansion in Sweden, In June, we announced that we have signed and launched a new national electronic monitoring project with the Swedish Prison and Probation Service. The total estimated project value ranges from $17 million reflecting the previously announced base case scenario, to the $75 million budget published by the customer. That published budget reflects the potential for expansion through a higher number of active offenders and the addition of capabilities such as alcohol monitoring, our pure GPS, solution, our PureOne GPS solution, and the Pure All mobile device solution. The program is expected to expand to as many as 6 thousand active offenders. Representing approximately 6x the number from the program we first launched with this customer in 2019. Where we displaced the incumbent of 25 years. with more capabilities and more features this time around. Revenue recognized under the contract will ultimately depend on actual usage levels, and the scope of the capabilities deployed. We are also continuing to build momentum in the United States. Recent contract wins in Michigan, Georgia, Ohio, New York, and Kansas demonstrate the increased demand for our technology and the continued expansion of our national footprint. it is important to remember that there is an inherent lag between the signing of a contract and recognizing the associated revenue. Especially in The US where everything is usually charged on a recurring per-unit-per-day model. In some cases, full deployment can take 6 months or longer. Particularly when a customer must transition from an incumbent provider and replace existing monitoring units. With our technology. In both Europe and The United States, deployment schedules and customer ordering patterns can affect the timing of revenue, recognition from period to period. Despite this timing dynamic, the recurring revenue base associated with our US electronic monitoring technology continues to grow. Our US EM technology annualized recurring revenues has been accelerating. Reflecting growth of approximately 290% from July 2025 to July 2026. This progression provides an encouraging indication of how our recent contract wins are beginning to translate into recurring revenue. We continue to see substantial room for expansion. There are many markets, both the United States and Europe, that we have not entered yet. And as we increase our scale, strengthen our financial position, and build a broader record of successful deployments, we believe it will be qualified to pursue an expanding range of opportunities. In summary, I am extremely pleased with the progress we delivered during the second quarter and with the consistent growth and profitability we have sustained over the past several quarters. As well as securing highly valuable new contracts such as the national projects announced in Sweden and Norway. We achieved record revenue gross profit, and EBITDA. While continuing to invest in new deployments. Advancing our technology, and expanding our presence across the United States and Europe. We are also seeing increasing operating leverage as our programs mature and our recurring revenue base grows. We believe Supercom is stronger today than at any point in its history, with an exceptional global team, a significantly improved balance sheet, proven and differentiated technology, and a growing range of opportunities to expand into new markets and within the markets we already serve, and the record revenue and EBITDA numbers. At this point, as we look ahead, we remain focused on executing our pipeline, supporting our customers, and building on our position as a global leader in electronic monitoring and public safety technology. This concludes our prepared remarks, and I will turn the call back to the operator for questions. Operator: Thank you. To ask a question on today's call, you will need to press star then the number 1 on your telephone. You are using a speakerphone, please pick up your handset before entering your request and speaking on the call. If your question has been answered and you wish to withdraw your request, you may do so by pressing star then 2. 1 moment, please, for the first question. And our first question today is coming from Matthew Evan Galinko with Maxim Group. Matthew, your line is live. Please go ahead. Matthew Evan Galinko: Hey. Congratulations on another strong quarter. Can you maybe touch on-- sure. With-- we can obviously see the momentum, I think, in the U. S. Market in terms of expanding your territory. And appreciate the metrics you provided on growth rates. At what point, I guess, do you expect that to mean, I guess, maybe firstly, do you expect that to accelerate as you to your point, move into higher scale deployments in the US market. So, as you move into higher offender count or monitoring counts, do you anticipate that number could actually accelerate from the current rate of growth? Ordan Trabelsi: The number's been accelerating this year, I think, in the last quarter, we announced, up to 180%. Now we are at 290. Year over year ARR. At some point, naturally, as the numbers get larger and larger, the acceleration will stop, and the growth will continue, though. In The US market, we started with, you know, smaller county projects I am sorry. there is-- there we go. Calling out of Tel Aviv. They were smaller county project, and then growing in size, and now we are at level of roughly a 100 to 250. Of course, there is much larger projects in The US and some of our projects in Europe as we discussed, Sweden was a thousand units and expected to reach 6 thousand this time around. Romania was 15 thousand units. So we deployed much larger projects in Europe, But, originally, in Europe, it was also 50 units or 100 units, and we still scaled project or project, and that is what we are doing in The US. We are just doing it much faster this time around. So in the last 2 years, we expanded into 19 new states it took us much longer to reach that kind of presence in Europe. Matthew Evan Galinko: Got it. Well, very good. I think you touched on Romania. Headwinds, but is it reasonable to can you maybe characterize where that opportunity is today as far as maybe expansion of scope or is there potential to bring orders back from Romania or how does that look today? Ordan Trabelsi: So Romania is still an active customer of ours. The like, many of our customers when we start the program, if the relationship is good and deployment is successful as it was, they can order at a planned rate or faster than planned, and that is what we saw there. And So we saw this initial fast ramp. At some point, there were elections, and those elections happened twice. And some things slowed down a little bit, and you saw a decline of revenues in Romania in 2025. Which masked an underlying growth of 40% for revenues that year for the rest of the business, if you avoid that decline. But Romania is still active, and there is expansion opportunities just like any of our contracts, and we are we only started with them in 2022. Many of these contracts we have provided, for example, are Israel, Sweden, Norway, are over 20, 25 years with the same incumbent provider. So once you start a relationship with them, and you are doing well as we believe we are doing there, there is more expansions, more opportunities, and we are excited about the path ahead. Matthew Evan Galinko: Thanks. Alright. Last question for me, and I will jump back in the queue. Your gross margin has been, you know, very strong, I think, for the last couple of quarters. Can you point to any is it predominantly the revenue mix and where you are in the contract cycle? Or is it the implementation of AI and efficiency contributing to that gross margin? And I guess how sustainable are we kind of in the 55% to 60% range? Ordan Trabelsi: So we touched on some of this also in the past. We are taking a lot of the projects in Europe, there is different deployments in different regions with local subcontractors and local languages. We have been taking a lot of that in house. And that lowers the cost that we are shipping out to subcontractors so that improves margins. The US market where we are having more revenues has higher margins than in Europe because it is all centralized on the cloud and in English. Also, the existing projects that we have in Europe are reaching a later stage, maturing And the more the project matures, the more you are just adding additional units at a very high gross margin compared to the initial deployment where you have a lot of installations and hardware and security and training and adaptations. And so when you are in later stage projects, as your projects mature, gross margins are naturally higher. And we still have opportunity in the business to grow margins more, especially when revenues are higher because there is significant operating leverage in this business model. AI also, as we described, and I am talking about AI not in the products, which is a separate thing. I am talking about AI just from our operations. A lot of the things are becoming more automated, more seamless, and that is improving everything in terms of the inventory management, other processes that we have to do. And it is helping us deploy a lot of efficiencies. And we think that is just the beginning. We think there is much more that can be done, and we will not give a spoiler. But over time, we will have more updates along the way as those things go. Operator: Thank you. Your next question is coming from Gregory Mesniaeff from Kingswood. Gregory, your line is live. Please go ahead. Gregory Mesniaeff: Thank you. Hi, Ordan. How are you? Ordan Trabelsi: I am great. How are you doing? Good. Thanks for joining. Gregory Mesniaeff: 2 questions. First 1's kind of a general. On the newer contracts that you have announced recently, what is the typical duration period of the contract and how is it structured? Is there a percentage of the contract that is earmarked for service and support And is that optional, or is that included in the overall contract? And, also, what kind of cybersecurity guarantees are you required to provide? Given the sensitive nature of some of this data and the fact that you are dealing with law enforcement and governments. Ordan Trabelsi: I will start with the latter just because it is a little interesting to remind, but we have ISO 27 thousand and other certifications, but also at SuperCom, in our history. We have Cyber capabilities. We used to do penetration testing and advise various organizations on this. We have cybersecurity software as part of part of our operation. So we are very sensitive, and all the people here are from cybersecurity in their past experience at SuperCom. So while we are deploying our technology, big focus is cybersecurity, and we are handling very sensitive data. The projects we did in the history of SuperCom before electronic monitoring was in identification, which was the full census of the country, of all the citizens. You know, and all their taxes and their criminal records and their passports. And so we have a lot of experience in that department, of course, that lays over to what we are doing with electronic monitoring. So especially on premise deployments that we see in Europe, cybersecurity is a big part of it, and we are I think we are able to show very strong capabilities, and it helps us score the highest in the technology portions of the bids. Now in terms of the and they provide the penetration tests, and they do the cybersecurity audits. In Europe, the national projects, there is several levels of evaluation. And in those evaluations, besides testing our products and the accuracy of the location tracking, and the reliability and the consistency, they are also assessing the cybersecurity capabilities. That was the second 1. The first question was around the contracts. Gregory Mesniaeff: I do not know if you are asking about Europe or The US. So I will speak in general with the 2 models. Ordan Trabelsi: In The US, it is actually quite mature, the market in a in a more homogeneous fashion. And usually, the projects are priced at per unit per day for active offender being tracked. And that is how and the revenue recognition is consistent. that is throughout our customers in The US, whether it is direct agency customer or through a service provider. But in The US, we do not we do not have we do not have subcontractors that we have to that we have to put the some of the cost to. So when we receive things, they are already at a higher margin and Mhmm. it is all recurring per unit per day. Also, the cash payments are consistently per month. In Europe, you have some projects that are purchased where they are acquiring the equipment. And other ones that are still leased, but they have a large deployment. Because you are doing it on premise deployment where you are buying servers, and installing the firewalls and the infrastructure and connecting into their database in their census, and providing the deployment work that could take as quick as 3 weeks, for initial stages, like we did in Romania, and it could take much longer, up to a year. And in Europe, we get paid for that portion, of course. And then we have the deployment revenues as well as the after ongoing revenues and maintenance and deployment of additional units. And that is what we are seeing in our European customers, and each 1 is a little bit different. it is not homogeneous to 1 kind of contract model like it is in The US. Everyone has the way that they like to do it, and we conform to many different customers and many different structures. it is all fine by us. Gregory Mesniaeff: And what is typically the renewal period? Of the newer contracts, particularly in The US? Ordan Trabelsi: So you say renewal period. What do you mean the After stage after say, 2 or 3 years, the contract is, you know, renegotiated. Okay. So, typically, the contracts are 3 to 5 years. The initial term. It could be 3 years, 3-year, 2-year, 2 expansions. Or it could be 5 years with some expansions, but then it goes up for rebid. And if the customer likes you and they believe in you, then you know, you have a good chance of winning again if you put out a strong bid, which is why some of the vendors that we have that we displaced were there for 20, 25 years in Europe. A lot of these counties that were displacing the incumbent technology provider, these are legacy providers that have been there for a while. They have been there for 10 years, 15 years. Sometimes we give notes to that. But it is usually much more than the 3 to 5 years. Got it. If you have not done anything wrong or you are doing you are doing well, it typically renews for more and more. that is what is interesting about this market. it is a little bit hard to penetrate into new contracts, into new regions. So once you are there, it is very sticky, and we feel great about what we have achieved, and we had over 20 national wins and over 45 new contracts in The US. Those hard to get those, and each of those provides us a moat and long term relationship that we believe will have gone for many years with each of these customers. That we have a strong deployment with. Gregory Mesniaeff: Great. Thanks. And just 1 quick follow-up, Ordan. Are you capitalizing any of the new customer onboarding costs? Ordan Trabelsi: The new customer onboarding costs. Some of the some of the some of the projects are, recognized as revenue of percentage completion. Not exactly capitalized in cost, but for some components, you can look at indirectly as but it is sometimes a milestone for progression together with cost progression for revenues for these projects. And that depends on ASC 606 and how the 2 projects are categorized and classified. Got it. Thank you. Yes. You are welcome. Thank you. Thank you. Operator: Your next question is coming from Jack Gvili from Blaven Capital Management. Jack, your line is live. Please go ahead. Jack Giuliano: Hey, Ordan. Thanks for letting me join the call, and congrats on the results. Thank you. Just 2 quick questions from us. Firstly, in terms of opportunities, outside of Europe and The Americas, we noticed that you hired 2 directors of sales and are actively hiring 2 directors of sales. In APAC and LatAm. And so, could you potentially tell us about the opportunities you are seeing there and then the timing on those as well? Ordan Trabelsi: Okay. Interesting that you saw those. Yeah. We have our hires on our career portion of our website. So we believe that there are interesting markets outside of the US and Europe as well. And Supercom, we have over 38 years of experience serving over 40 nations around the world. Different type of government, large scale government deployments, and we think we are well positioned to expand there as well. The technology has been tested and has been successful time and time again in different regions of Europe and different areas of The US. The same, let's say, physical and technological requirements apply to other regions of the world. it is more just getting them up to speed with the process of running electronic monitoring programs. And we have done this as well. In Croatia, we launched brand new program. Romania, it is a brand new program. They have not done this before. So we think we can be great partners for a lot of these countries. Outside of The US and Europe, and we are seeing opportunities come up. And we saw the time to capitalize on that as well. So, yeah, we are looking for directors of sales in those 2 regions for LATAM and Asia Pacific. Asia-Pacific, specifically, has actually developed electronic monitoring that we have not yet accessed. Our initial focus will be there in Australia and New Zealand. There are many different programs and have a lot of experience doing that there. Some of the same players that we are displacing in Europe and The US are over there. We look forward to competing against them there as well. Jack Giuliano: Sounds great. You and secondly, I know there is a lot of focus on The US. but, you know, when it comes to Europe, there is a lot of opportunities there as well. And so maybe you can walk us through what you are seeing in terms of other opportunities outside of, you know, Italy and the UK, which you mentioned on your previous call, and there are other opportunities outside of that, it would be great to hear about those as well. Ordan Trabelsi: Yeah. I will also say there are there are many opportunities in Europe. And in the past, we had over 65% win rate. In Europe, recently, the last few programs we bid on, we have won 3 out of 3. So sometimes the that win rate is even as high as 100% over prolonged periods of time, and there is some opportunities. We talked about it earlier. England. England is not just the national opportunity, which is over £50 million. there is also other small ones in different regions. it is a whole market that we are that we are looking to enter. And there is other ones in Europe. We do not always wanna give a heads up to competition. So we try to keep it limited on exactly the names we are sharing and where we plan to bid and expand to. But we I think we have done an amazing job. The team here has done an amazing job at winning contracts in Europe, in new regions where we have not had any past experience. Or relationships, and we have overcome you know, all the hurdles to come in as a brand-new provider And displace the incumbents that they have had for a very long period of time, even over 20 years in many of these. So we are still excited about the European projects, and, also, they are much larger in size. The projects as in the US. And we think a lot of our growth will continue to come from Europe, But at the same time, you see that in the US market, things are starting to ramp up quickly, and we are having great references and great feedback from service providers who are not just aware of 1 technology because typically, the service provider sees all the technology in the industry If they choose to take our technology on and displace the others, these are savvy. You know, they know they work with technology a lot. They are not necessarily government officials, which might know 1 technology or the other. We think it is really good feedback. And a good testament to where we are going in the US. So the US market is 6x bigger than Europe, and it is I think, gonna be a nice part of our future growth potential. But meanwhile, as that grows, Europe, the European market's doing great for us. And we expect to have continued wins and expansion there as well. Jack Giuliano: Sounds great. Thanks, Ordan. Thank you. Thank you. Operator: Your next question is coming from Sean Weston from DeepSale Capital. Sean, your line is live. Please go ahead. Sean Westrop: Thank you. Thanks, Ordan, for having the call, and a good quarter here. Just wanted to touch on Sweden a little bit. I am kind of wondering on contract ramp. I know it is like a you guys have a 9-year contract there. Is it going to be very front loaded in 2026 and 2027, kind of similar to what we saw in Romania? Or do you think it is gonna be more spread out? Like, how is that looking? Ordan Trabelsi: So we cannot, at this point, express exactly how it is going to be on a specific program. But we have shared that many times when the program's launched, there is the initial plan, and the customer likes what we are doing, and they end up ordering and deploying it much faster. And we have the experience to do so. We deploy many contracts, probably more than any other vendor in Europe. We are deploying many contracts at a very high, very fast pace with new technology deployments and new cycles, and so we are very well versed to support their, let's say, growing needs of speed and acceleration. So we are ready to deploy as fast as needed. And as in many contracts in the past, we have seen that we have seen the deployments be much faster than originally anticipated. And here, when you talk about Sweden, note it is not just so they already they already have a program there. They are deploying a new 1. Right. But they are also looking to add on things like alcohol and other capabilities and things that we are also very ready to deploy. We are doing in many of our countries, we have multiple programs, 3, 4, or 5 different programs. So that is that is very easy for us to add those modules. And then the amount of accounts that they are looking to grow significantly. We have the capacity to support that as well. So we cannot say exactly how fast it will be, but we know we can support it. Sean Westrop: And the fact that you guys already have an appointment there, does that mean it is a little faster and a little cheaper for you guys to deploy this additional larger contract there? Ordan Trabelsi: that is a good question. By the standard competitive process, you know, they cannot give an advantage to 1 vendor over another even if they are the incumbent. But, naturally, as you can expect when you have experience in the country and you build a record reputation and you understand how things work, you can plan better and do things at a much faster and more effective fashion. Sean Westrop: Great. That makes sense. Great. Just wanted to touch then on The US growth. So in the press release, you know noted the 171% recurring revenue growth. Can you just talk about what is driving that? Is that mainly contracts you won from last year ramping? Or is that some of these larger contracts that you won more recently like the Arizona State coming into play, or is it just kind of a mix of everything? Ordan Trabelsi: it is a little bit of a mix. I would say that the initial projects when we started mid 24 were much smaller in size, and they are growing. You know, as we continue to move forward, our sales people focus on larger and larger contracts, and we are able to win them. And then we take the references from those and go to larger ones. And, also, the contracts that we have, we are we are growing the amount of units. And sometimes it could be say, a service provider that has a thousand units. And they will start us off with 100 or 150 units because they like the technology, but then they will see it is working really well, and they could give more units and more units. And sometimes it is just a contract that the whole size county contract was 100 units, and that is bigger than what we had in the past. So we are we are active. Yet, we still have a lot to deploy with the contracts we currently have announced. Not at full capacity at all. Those are scaling up. We expect them to scale up more than the numbers that we disclosed. And there is we expect more contracts, of course. But the numbers we have now is just the billings based on what has already been deployed, and that is part of the, you know, active unit per unit per day recurring revenue charges. Sean Westrop: Great. Alright. Great. Thanks a lot. that is all I had. Thank you very much. Yeah. Thank you. Operator: Should anyone have any further questions at this time, you may press 1 on your telephone keypad. Once again, if there are any further questions at this time, please press 1 on your keypad to join the queue. Please hold a moment while we repoll for questions. And there are no further questions in queue at this time, and this does conclude our question and answer session. At this time, I will pass the call back to Ordan for closing remarks. Ordan Trabelsi: Thank you, operator. And I want to thank all of you for participating in today's conference call. And for your continued interest in SuperCom. We look forward to sharing our progress on our next conference call filings, and press releases. Thank you very much. And have a great day. Operator: Thank you. This does conclude today's conference call. You may disconnect at this time. Have a wonderful day. Thank you once again for your participation. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. SuperCom (SPCB) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Revenue: $8.1 million, up 13.3% year-over-year from $7.1 million in Q2 2025. Gross Profit: $4.9 million, up 16% year-over-year. Gross Margin: 60%, expanding by approximately 90 basis points. Operating Income: $900,000, compared to $1.1 million in the prior-year period, impacted by Israeli foreign currency headwinds. GAAP Net Income: Approximately $1.1 million, similar to the prior-year period. Non-GAAP Net Income: $2.9 million, compared to $300,000 in Q2 2025. EBITDA: $4.0 million, up 55.6% from $2.5 million in Q2 2025, a record quarterly high in over a decade. GAAP Earnings Per Share (EPS): Approximately $0.20. Non-GAAP EPS: $0.52. Cash and Cash Equivalents: Approximately $7.4 million as of June 30, 2026, compared to $9.8 million at June 30, 2025. Book Value of Equity: Approximately $48 million as of June 30, up 28% from approximately $37 million at June 30, 2025. Net Debt: Reduced from close to $35 million to under $10 million over the past several years. U.S. EM Technology Annualized Recurring Revenues: Grew approximately 290% from July 2025 to July 2026. Warning! GuruFocus has detected 4 Warning Signs with SPCB. Is SPCB fairly valued? Test your thesis with our free DCF calculator. Release Date: August 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record Q2 2026 revenue of $8.1 million, up 13.3% year-over-year, with gross profit up 16% and EBITDA up 55.6% to $4 million, marking the highest quarterly EBITDA in over a decade. Gross margin expanded by 90 basis points to 60%, driven by operational efficiencies, centralized logistics in Europe, and the higher-margin U.S. market. Strengthened balance sheet with net debt reduced from ~$35 million to under $10 million, and a $7.5 million capital raise in July 2026 to support growth. Expanded U.S. footprint with 45+ new contracts since mid-2024, entering 19 new states, and annualized recurring revenue growth of 290% from July 2025 to July 2026. Secured a major new national contract in Sweden with a potential value up to $75 million, expanding to up to 6,000 active offenders, and maintains presence in all five Nordic countries. Won 3 out of 3 recent European bids, with a 65%+ historical win rate, and is better positioned for large opportunities like England (valued at over 150 million). Operating income declined to $900,000 from $1.1 million in Q2 2025, impacted by a 17% year-over-year appreciation of the Israeli shekel against the U.S. dollar. Cash and cash equivalents decreased to $7.4 million from $9.8 million year-over-year, due to strategic capital deployment for working capital and customer onboarding. Revenue from Romania, a significant prior contributor, temporarily declined due to political uncertainty, masking stronger growth elsewhere. Revenue recognition is subject to timing lags, with U.S. deployments taking up to six months or longer, and European ordering cycles causing period-to-period fluctuations. The company faces ongoing foreign currency headwinds from its Israeli operations, which could continue to pressure profitability. Despite the strong pipeline, there is no assurance of winning large opportunities like England, and competition remains intense. Q: Can you discuss the drivers behind the 171% recurring revenue growth in the U.S. market, and whether this growth rate could accelerate as you move into higher-scale deployments?A: Ordan Trabelsi, President and CEO, explained that the growth is a mix of factors. Initial projects from mid-2024 were smaller, but the company is now winning larger contracts (100-250 units) and expanding within existing accounts as service providers increase unit counts after seeing the technology perform. He noted that the U.S. annualized recurring revenue growth has accelerated from 180% last quarter to 290% year-over-year as of July 2026. While the acceleration will naturally slow as the base grows, the company still has significant capacity to deploy from already-won contracts, which are not yet at full capacity. Q: What is the typical duration and structure of newer contracts, particularly in the U.S., and what cybersecurity guarantees are required given the sensitive nature of the data?A: CEO Ordan Trabelsi stated that U.S. contracts are typically priced on a recurring per-unit-per-day model for active offenders, with consistent monthly cash payments and higher margins due to the centralized cloud-based model. European contracts vary, with some involving equipment purchases and on-premise deployments. Initial terms are typically 3-5 years, but contracts are "sticky" and often renew for much longer if performance is strong. Regarding cybersecurity, Supercom holds ISO 27001 certification and has deep historical experience in handling sensitive government data, including national identification systems. The company undergoes rigorous penetration tests and cybersecurity audits as part of European national program evaluations. Q: Regarding the new Sweden national contract, will the revenue ramp be front-loaded like Romania, or more spread out over the contract's duration?A: CEO Ordan Trabelsi said the company cannot specify the exact ramp timeline, but noted that historically, customers often order and deploy faster than initially planned when they are satisfied with the technology. Supercom has experience deploying multiple contracts rapidly across Europe and is well-positioned to support Sweden's expansion to up to 6,000 active offenders, including new capabilities like alcohol monitoring. He also noted that while the competitive process prevents giving incumbents an advantage, having existing experience in the country naturally allows for faster and more effective planning and deployment. Q: Can you characterize the current state of the Romania opportunity and whether there is potential for orders to return?A: CEO Ordan Trabelsi confirmed Romania remains an active customer. The initial program ramped quickly, but slowed due to political uncertainty around elections. This decline masked strong growth elsewhere, with underlying revenue growing approximately 40% between 2024 and 2025 excluding Romania. He emphasized that these relationships are long-term, citing examples like Israel, Sweden, and Norway where incumbents held contracts for 20-25 years. Supercom started with Romania in 2022 and sees expansion opportunities ahead as the relationship matures. Q: What is driving the strong gross margin performance, and is the 55%-60% range sustainable?A: CEO Ordan Trabelsi attributed margin expansion to several factors: bringing more IT and customer support in-house from subcontractors in Europe, the higher-margin centralized U.S. model, and the natural maturation of existing European projects where incremental units are added at very high margins. He also highlighted AI adoption in operations, which is automating processes like inventory management and improving efficiency. He believes there is still significant opportunity to grow margins further as revenues increase, given the substantial operating leverage in the business model. Q: What opportunities are you seeing outside of Europe and the Americas, given the recent hiring of sales directors for APAC and LATAM?A: CEO Ordan Trabelsi noted that Supercom has 38 years of experience serving over 40 nations globally. The technology has been proven in Europe and the U.S., and the company sees opportunities to expand into new regions. In Asia Pacific, the initial focus will be on Australia and New Zealand, which have developed electronic monitoring markets. The company believes it can compete effectively against the same incumbent players it has been displacing in Europe and the U.S. Q: Beyond Italy and the UK, what other European opportunities are you seeing?A: CEO Ordan Trabelsi stated there are many opportunities in Europe, noting a historical win rate of over 65%, with recent bids winning 3 out of 3. While he declined to name specific upcoming tenders to avoid alerting competition, he emphasized that European projects are typically much larger than U.S. projects and will continue to be a significant growth driver. The company is also looking at smaller regional opportunities in England beyond the national contract valued at over 150 million. Q: Are you capitalizing any of the new customer onboarding costs?A: CEO Ordan Trabelsi explained that some projects are recognized as revenue using percentage-of-completion accounting, which indirectly relates to cost progression. The treatment depends on ASC 606 guidelines and how each project is categorized and classified. He did not provide a direct answer on capitalization but indicated the revenue recognition methodology varies by project structure. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Q2 2026: Record Revenue of $8.1 million, Non-GAAP Net Income of $2.9 million, Non-GAAP EPS of $0.52 H1 2026: Revenue of $15.7 million; Record EBITDA of $7.3 million TEL AVIV, Israel, Aug. 13, 2026 /PRNewswire/ -- SuperCom Ltd. ("SuperCom" or the "Company") (NASDAQ: SPCB), a global provider of secure solutions for the e-Government, IoT and Cybersecurity sectors, today reported results for the second quarter ended June 30, 2026 Second Quarter 2026 Financial Highlights (Compared to the Second Quarter of 2025): Revenue of $8.1 million, an increase of 13.3% compared to $7.1 million, an over 8-year record. Gross Profit of $4.9 million, with gross margin of 60.0%, compared to $4.2 million. GAAP Net Income of $1.11 million, compared to $1.10 million, despite foreign currency headwinds from an approximately 17% year-over-year increase in the average ILS/USD exchange rate. GAAP EPS of $0.20. Non-GAAP Net Income of 2.9 million an increase of 32% compared to 2.2 million. Non-GAAP EPS of $0.52. EBITDA¹ of $4.0 million, an increase of 58% compared to $2.5 million, an over 10-year record. Total Shareholders' Equity was $47.8 million, an increase of 28% compared to 37.2 million. SuperCom's electronic monitoring ("EM") technology quarterly recurring revenues in the U.S. increased approximately 171%, reflecting rapid expansion across the United States. SuperCom's EM technology Annualized Recurring Revenues (ARR) run-rate is accelerating, reflecting growth of approximately 290% from July 2025 to July 2026. First Half Ended June 30, 2026 Financial Highlights (Compared to the First Half of 2025): Revenue of $15.7 million, an increase of 10.7% compared to $14.2 million. Gross Profit of $9.7 million, with gross margin of 61.7%, compared to 8.7 million. Excluding the extraordinary financial gains of $4.1 million recorded in H1-25, GAAP Net Income increased by 50% to $2.4 million from $1.2 million. These results are despite foreign currency headwinds from an approximately 15% year-over-year increase in the average ILS/USD exchange rate. GAAP EPS of $0.44. Excluding the extraordinary financial gains of $4.1 million recorded in H1-25, Non-GAAP Net Income increased by 73% to $5.7 million from $3.3 million. Non-GAAP Net Income of 5.7 million a decrease of 23% compared to 7.4 million. Non-GAAP EPS of $1.04. EBITDA¹ of $7.3 million, compared to $5.1 million, an over 10-year record. "We are pleased to report another record quarter for SuperCom, reaching record revenue and EBITDA levels," commented Ordan Trabelsi, President and CEO of SuperCom. "These results demonstrate the increasing operating leverage in our business as we scale our recurring revenue base, expand existing programs and continue to improve the efficiency of our operations. Our electronic monitoring business has grown at a compound annual rate of approximately 30% over 4-year period ending in 2025, while our EBITDA has grown at approximately 47% over the same period, reflecting the underlying strength and scalability of our business model." "Our strategy remains focused on going wider and deeper across our key markets. In Europe, we added two significant national programs during the quarter, including our new contract with Sweden's Prison and Probation Service, with a $75 million budget as published by the customer, and Norway with a $6.1 million budget as published by the customer, which completed our expansion into across all five Nordic countries. At the same time, more than $3 million in new orders from an existing European Ministry of Justice customer demonstrates the opportunity to grow within markets where our technology is already deployed. In the U.S., we have now secured more than 45 new electronic monitoring contracts since mid-2024, expanding our presence across 19 new states, while our U.S. electronic monitoring technology annualized recurring revenue run-rate has increased approximately 290% year-over-year." "Together, including more than 20 national electronic monitoring project wins across Europe and continued expansion across the U.S., reflect the durability of our technology-driven approach as we scale into new and existing markets. With record revenue and profitability, a strengthened balance sheet, a growing global pipeline and substantial opportunities to expand both within existing markets and into new ones, we believe SuperCom is better positioned than at any point in our history to scale our recurring revenue base and build on our leadership in electronic monitoring." Second Quarter 2026 Business and Operational Highlights: SuperCom has won over 20 national EM contracts in Europe and has secured over 45 new EM contracts across the United States, including entry into 19 new states and 17 new partnerships with regional service providers. Signed and launched a $6.1 million budget as published by the customer national EM project with Norway's Prison and Probation Service following the customary standstill period, displacing an incumbent of more than 20 years. Signed and launched a national EM project with Sweden's Prison and Probation Services, with a budget of up to $75 million as published by the customer. Announced a new EM contract in the state of Nevada to support an agency's offender supervision program. Secured four new direct county EM contracts in New York, displacing three incumbent vendors and expanding the Company's footprint to five counties in the state. This represents a 100% conversion rate in New York in the Company's recent US expansion Subsequent Events: Won a second EM contract in Ohio, displacing an incumbent of more than a decade. Won a sixth new EM contract in New York, representing a full displacement of the county's incumbent service provider of more than four years. Entered Kansas with a new county-level contract for PureOne technology. Received new orders from a European country's Ministry of Justice valued at over $3 million. Completed a $7.5 million registered direct common-only offering of Company ordinary shares, with net proceeds intended for working capital and general corporate purposes, including continued deployment of new and existing government contracts in the U.S. and Europe. Secured a new contract with large Georgia-based EM service provider. Signed a new EM contract in Michigan, displacing an incumbent provider of more than 10 years. 1. EBITDA is a non-GAAP measure defined in the section titled "Use of Non-GAAP Financial Information" below and reconciled to the most directly comparable GAAP measure at the end of this release. Conference Call The Company will hold a conference call on Thursday, August 13, 2026, at 10 a.m. Eastern time (7 a.m. Pacific Time / 5 p.m. IL time) to discuss its financial results for the second quarter ended June 30, 2026. Financial results will be issued in a press release prior to the call. Conference Call Dial-In Information: Date: Thursday, August 13, 2026 Time: 10 a.m. Eastern time (7 a.m. Pacific time)U.S. toll-free: 888-506-0062Israel toll-free: 1-809-423-853International: 973-528-0011Access Code: SuperComLink: https://www.webcaster5.com/Webcast/Page/2259/54375 Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. About SuperCom Since 1988, SuperCom has been a global provider of traditional and digital identity solutions, providing advanced safety, identification and security solutions to governments and organizations, both private and public, throughout the world. Through its proprietary e-government platforms and innovative solutions for traditional and biometrics enrollment, personalization, issuance and border control services, SuperCom has inspired governments and national agencies to design and issue secure Multi-ID documents and robust digital identity solutions to its citizens and visitors. SuperCom offers a unique all-in-one field-proven RFID & mobile technology and product suite, accompanied by advanced complementary services for various industries including security and safety, community public safety, law enforcement, electronic monitoring, and domestic violence prevention. For more information, visit www.supercom.com. Cautionary Note Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements preceded or followed by or that otherwise include the words "believes", "expects", "anticipates", "intends", "projects", "estimates", "plans", and similar expressions or future or conditional verbs such as "will", "should", "would", "may" and "could" are generally forward-looking in nature and not historical or current facts. These forward-looking statements are subject to risks and uncertainties that could cause our actual results to differ materially from the statements made. Examples of these statements include, but are not limited to, statements regarding business and economic trends, the levels of consumer, business and economic confidence generally, the adverse effects of these risks on our business or the market price of our ordinary shares, and other risks and uncertainties described in the forward-looking statements and in the section captioned "Risk Factors" in our Annual Report on Form 20-F for the year ended December 31, 2025, filed with the U.S. Securities and Exchange Commission (the "SEC") on April 28, 2026, our reports on Form 6-K filed from time to time with the SEC and our other filings with the SEC. Except as required by law, we do not undertake any obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this press release. Results presented in this press release are based on management's estimated unaudited analysis of financial results for the presented periods. SuperCom's independent registered accounting firm has not audited the financial data discussed in this press release. During the course of SuperCom's quarter- and fiscal year-end closing procedures and review process, SuperCom may identify items that would require it to make adjustments, which may be material, to the information presented in this press release. As a result, the estimated financial results constitute forward-looking information and are subject to risks and uncertainties, including possible adjustments to such results. Use of Non-GAAP Financial Information In addition to disclosing financial results calculated in accordance with the generally accepted accounting principles in the United States ("GAAP"), this release also contains non-GAAP financial measures, which SuperCom believes are the principal indicators of the operating and financial performance of its business. Management believes the non-GAAP financial measures provided are useful to investors' understanding and assessment of SuperCom's ongoing core operations and prospects for the future, as the charges eliminated are not part of the day-to-day business or reflective of the core operational activities of the company. Management uses these non-GAAP financial measures as a basis for strategic decisions, forecasting future results and evaluating the Company's current performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, or as a substitute for, or superior to, operating loss or net income (loss) or any other performance measures derived in accordance with GAAP or as an alternative to net cash provided by operating activities or any other measures of our cash flows or liquidity. Non-GAAP EPS is defined as earnings before amortization and other non-cash or one-time expenses divided by weighted average outstanding shares. EBITDA is defined as earnings before interest, taxes, depreciation, amortization, and other non-cash or one-time expenses. SuperCom Investor Relations:[email protected] * EBITDA is a non-GAAP financial measure generally defined as earnings before interest, tax, depreciation and amortization and other non-cash or one-time expenses. View original content to download multimedia:https://www.prnewswire.com/news-releases/supercom-reports-record-revenue-and-record-ebitda-of-4-million-in-the-second-quarter-of-2026-302850910.html

Interested in SuperCom, Ltd.? Here are five stocks we like better. Strong Q2 performance: Revenue rose 13.3% year over year to $8.1 million, while gross profit increased 16% to $4.9 million and EBITDA jumped 55.6% to $4 million. Non-GAAP net income reached $2.9 million, or $0.52 per share. Balance sheet improved: SuperCom reduced net debt from nearly $35 million to less than $10 million, though operating income was pressured by a 17% strengthening of the Israeli shekel against the dollar. The company subsequently raised approximately $7.5 million through a registered direct share offering. Expansion supports future growth: The company has secured more than 45 U.S. contracts across 19 new states since mid-2024 and launched a potentially larger Swedish national monitoring program. Management also cited a pipeline in Europe, including Italy and an England opportunity valued at more than £150 million, while cautioning that contract wins and timing remain uncertain. One Value, One Growth, and One Momentum Stock For Diversification SuperCom (NASDAQ:SPCB) reported second-quarter 2026 revenue of $8.1 million, up 13.3% from $7.1 million a year earlier, as the electronic monitoring and public safety technology provider cited expanding deployments in the U.S. and Europe. President and Chief Executive Officer Ordan Trabelsi said the company recorded more than eight-year highs in revenue, gross profit and EBITDA. He characterized the period as SuperCom’s ninth record quarter out of the last 10 since its turnaround began in 2021. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be Gross profit increased 16% to $4.9 million, while gross margin expanded about 90 basis points to 60%. EBITDA rose 55.6% to $4 million from $2.5 million in the prior-year quarter. GAAP net income was approximately $1.1 million, roughly unchanged from the comparable 2025 period, while non-GAAP net income increased to $2.9 million from $300,000. GAAP earnings per share were about $0.20, and non-GAAP earnings per share were $0.52. → Nebius’ Q2 Beat Shows the AI Bottleneck Is Capacity, Not Demand Operating income declined to $900,000 from $1.1 million a year earlier. Trabelsi said the result was largely affected by foreign-currency headwinds in Israel, where the average shekel-to-dollar exchange rate increased about 17% year over year during the quarter. SuperCom said it has reduced net debt from nearly $35 million over the past several years to less than $10 million. Its remaining long-term debt has a blended interest rate of about 6%, with no cash payments due until the end of 2028, according to Trabelsi. → On Holding's Price Stumble May Be an Opening for a Company Built to Run Cash and cash equivalents totaled approximately $7.4 million as of June 30, down from $9.8 million at the end of 2025. The company said it used capital during the quarter for working capital, customer onboarding, installations and technology integration related to contracts in the U.S. and Europe. After the quarter ended, SuperCom raised about $7.5 million in gross proceeds through a registered direct offering of common shares to several institutional investors. Book value of equity was approximately $48 million as of June 30, up 28% from about $37 million a year earlier. Trabelsi said SuperCom’s economics improve as new monitoring programs mature. Initial deployments require onboarding, training, development and installation costs, but those expenses are spread over a larger recurring revenue base as additional monitoring units are deployed. The company has also centralized logistics, equipment handling and shipments in Europe through a Romanian hub, while bringing more information technology and customer-support responsibilities in-house from subcontractors. SuperCom has established 24-hour support capabilities across multiple projects, Trabelsi said. He also pointed to automation and artificial intelligence used in operational processes, including development, deployment, support and inventory management. The company expects these efforts to reduce labor, support and administrative needs as it grows, though Trabelsi said its AI adoption remains in early stages. In the U.S., SuperCom uses a centralized, cloud-based operating model that it said can serve programs nationwide using common infrastructure, inventory management and support capabilities. Trabelsi said U.S. operations generally carry higher margins than European projects because they are more centralized and standardized, while European national programs often require country-specific infrastructure, language customization and localized support. SuperCom said it has secured more than 45 U.S. electronic-monitoring contracts and entered 19 new states since mid-2024, supported by 18 regional service-provider partnerships. The company operates in 22 states and has expanded into multiple counties in 12 of those states. Recent U.S. contract awards have generally involved approximately 100 to 250 simultaneous monitoring units, compared with smaller initial deployments. Trabelsi said the company’s U.S. electronic-monitoring annualized recurring revenue grew approximately 290% from July 2025 to July 2026. He cautioned that growth-rate acceleration will naturally slow as the revenue base becomes larger, although he expects growth to continue. Revenue recognition can lag contract announcements, particularly in the U.S., where contracts are typically priced per active offender per day. Full transitions from incumbent vendors can take six months or longer, Trabelsi said. In Europe, SuperCom cited more than 20 national electronic-monitoring program wins and operations across all five Nordic countries. The company said its performance in Sweden, Germany, Israel and Norway included displacing incumbent providers that had supported programs for roughly 20 to 25 years. Romania remained an active customer, though Trabelsi said ordering activity moderated amid political uncertainty and repeated elections. He said Romania’s decline masked growth elsewhere in the business, estimating that revenue would have increased about 40% between 2024 and 2025 excluding the Romanian decline. During the quarter, SuperCom launched a new national electronic-monitoring project with the Swedish Prison and Probation Service. The company said estimated project value ranges from a previously announced $17 million base-case scenario to a $75 million customer-published budget, depending on usage levels and potential additions such as alcohol monitoring, PureOne GPS and the Pure Officer mobile device solution. The Swedish program could reach as many as 6,000 active offenders, compared with approximately 1,000 in SuperCom’s initial 2019 deployment for the customer. Trabelsi said the company could not specify the expected timing of the contract ramp. Looking ahead, management highlighted expected European procurement opportunities over the next 18 to 24 months, including Italy. Trabelsi also reiterated that an England opportunity is valued at more than £150 million, while noting there is no assurance SuperCom will win any individual procurement. The company is also seeking sales leadership for Latin America and Asia-Pacific. Trabelsi identified Australia and New Zealand as an initial focus in Asia-Pacific, describing them as developed electronic-monitoring markets that SuperCom has not yet entered. SuperCom Ltd. (NASDAQ: SPCB) is a technology firm specializing in electronic monitoring, digital identity and secure IoT solutions. The company develops and delivers hardware and software platforms designed to monitor individuals in correctional and pre-trial settings, as well as to provide secure digital identity credentials for governments and commercial clients. SuperCom's core offerings include GPS and radio frequency (RF) tracking devices, biometric readers, secure communications modules and cloud-based monitoring portals. In addition to correctional monitoring, SuperCom has expanded into the digital identity and eHealth sectors. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "SuperCom Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved record revenue and EBITDA by leveraging a business model where profitability increases as programs mature and upfront onboarding costs are spread across a larger recurring revenue base. Operational efficiency improved through the consolidation of European logistics into a Romanian hub and bringing IT and customer support responsibilities in-house from subcontractors. The U.S. market is delivering higher margins due to a centralized cloud-based infrastructure and a standardized operating model compared to more complex, decentralized European national programs. Success in displacing long-term incumbents of 20 to 25 years in Nordic markets validates the technical superiority and reliability of the proprietary Pure Security platform. Strategic use of AI in operations has accelerated development and introduced automation in deployment and customer support, with management indicating adoption is still in early stages. Revenue fluctuations in Europe, specifically a temporary moderation in Romania due to political uncertainty, masked an underlying 40% growth rate across the rest of the electronic monitoring business. Management expects significant European opportunities to come to market over the next 18 to 24 months, including a substantial £150 million opportunity in England. The U.S. strategy focuses on deepening presence within the 22 states already served by expanding from initial small deployments to larger projects of 100 to 250 units. The new national project in Sweden is projected to expand to as many as 6,000 active offenders, representing a sixfold increase over the previous program launched in 2019. Expansion into APAC and LATAM markets is underway, with initial focus on Australia and New Zealand where established electronic monitoring programs currently utilize legacy technology. Future revenue growth is expected to be supported by a 290% year-over-year increase in U.S. annualized recurring revenue as recent contract wins transition into full deployment. Operating income was impacted by significant foreign currency headwinds, specifically a 17% year-over-year increase in the Israeli Shekel to U.S. Dollar exchange rate. The balance sheet was strengthened through a $7.5 million registered direct offering in July 2026 to support working capital and accelerate new customer onboarding. Net debt has been reduced from approximately $35 million to under $10 million, with no cash payments due on outstanding debt until the end of 2028. Management noted an inherent lag of six months or longer between contract signing and revenue recognition, particularly when replacing incumbent hardware in the U.S. model. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Margins are supported by the transition of European projects to mature stages where incremental units carry very high margins compared to initial setup phases. The shift toward the U.S. market naturally improves margins because the centralized, English-language cloud model is more cost-effective than localized European deployments. Romania remains an active customer despite a temporary revenue decline caused by election-related slowdowns. Management views the relationship as long-term, noting that similar national contracts in other regions have historically lasted over 20 years with the same provider. SuperCom previously placed second for this contract when it had a weaker reference base and a more leveraged balance sheet. Management believes their current financial stability and successful Nordic track record make them a significantly more viable candidate for the upcoming bid. U.S. ARR growth accelerated from 180% in the previous quarter to 290% currently as the company moves from small county pilots to larger agency deployments. While the rate of acceleration may naturally slow as the base grows, management expects continued volume growth as they penetrate more of the 22 states where they have a presence.

This article first appeared on GuruFocus. Release Date: May 14, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. SuperCom Ltd (NASDAQ:SPCB) reported record gross profit, operating income, and EBITDA for Q1 2026, indicating strong financial performance. The company achieved an 8% increase in revenue to $7.6 million and a gross margin of slightly above 63%, showcasing robust financial health. SuperCom Ltd (NASDAQ:SPCB) expanded its U.S. Electronic Monitoring Technology Annualized Recurring Revenue (ARR) run rate by over 180% year-over-year, reflecting significant growth in the U.S. market. The company successfully secured a $317 million national contract with Sweden's Ministry of Justice, highlighting its strong presence and growth in Europe. SuperCom Ltd (NASDAQ:SPCB) has reduced its debt by approximately 45% and lowered its blended interest rate to below 6%, improving its financial stability. Despite growth, the U.S. market remains smaller than Europe for SuperCom Ltd (NASDAQ:SPCB), indicating a need for further expansion in the U.S. There is a lag between contract signing and revenue recognition, which can delay financial benefits from new contracts. The company experienced a decline in orders from Romania last year, impacting overall growth despite other positive developments. SuperCom Ltd (NASDAQ:SPCB) has faced challenges in past bids due to a weaker balance sheet and fewer references, which could impact future opportunities. Free cash flow and operating cash flow have been negative in recent financial years, raising concerns about cash management. Warning! GuruFocus has detected 5 Warning Signs with SPCB. Is SPCB fairly valued? Test your thesis with our free DCF calculator. Q: Can you expand on the competitive environment and what supports your ability to win new opportunities in the U.S. and Europe? A: Ordan Trabelsi, President and CEO, explained that SuperCom has recently displaced three incumbents in New York, highlighting their strong technology and high conversion rates. The company benefits from high barriers to entry in the industry, requiring extensive experience and references. In Europe, they have a 65% win rate in RFPs, and in the U.S., they are seeing even higher numbers due to strong references and successful deployments. Q: Does the 180% growth rate in ARR for the U.S. market include services delivered by LCA? A: Ordan Trabelsi clarified that the ARR growth is attributed solely to SuperCom's electronic monitoring technology and does not include recurring revenues from LCA, which have been ongoing for many years. Q: How is SuperCom positioned differently for upcoming large European national programs compared to previous bids? A: Ordan Trabelsi noted that SuperCom's financial position and reference base have significantly improved since their last bid. The company now has a stronger balance sheet, more cash on hand, and a larger reference base, which enhances their chances of winning future bids, such as the large opportunity expected in England. Q: Can you share the percentage of revenues from the U.S. in the first quarter and how it has trended versus last year? A: Ordan Trabelsi mentioned that while he did not have exact percentages, the U.S. revenue is still smaller than Europe due to project size. However, the growth from SuperCom technology in the U.S. is rapid, and they expect the U.S. market to eventually surpass Europe due to its larger market size. Q: Can you provide an update on the Romania situation? A: Ordan Trabelsi reported that SuperCom continues to receive orders from Romania, maintaining an active and satisfied customer relationship. Although there was a decline in orders last year, the company is currently supplying new orders, and follow-on orders typically have better margins as projects progress. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in SuperCom, Ltd.? Here are five stocks we like better. SuperCom posted stronger Q1 results, with revenue rising 8% year over year to $7.6 million and EBITDA up 32% to $3.34 million. Gross profit, operating income and EBITDA were all described by management as over 10-year records. The company said its U.S. electronic monitoring business is accelerating, with annualized recurring revenue run rate up more than 180% from May 2025. SuperCom has signed more than 40 new monitoring contracts since mid-2024 and added 17 service-provider partnerships. Management emphasized margin gains and future growth opportunities from centralizing European operations, expanding AI use, and winning large government contracts. SuperCom highlighted a $17 million Sweden contract and said it sees major potential in markets like Italy, the U.K. and the U.S. One Value, One Growth, and One Momentum Stock For Diversification SuperCom (NASDAQ:SPCB) reported higher first-quarter revenue and record profitability metrics, with President and Chief Executive Officer Ordan Trabelsi pointing to growth in electronic monitoring, operating leverage and contract expansion in both Europe and the United States. Speaking on the company’s first-quarter 2026 financial results and corporate update call, Trabelsi said SuperCom generated revenue of $7.6 million, up 8% from $7.05 million in the prior-year quarter. Gross profit rose 8% to $4.8 million, which he described as an over 10-year record, while gross margin remained “slightly above 63%.” → Rocket Lab Just Hit a New All-Time High—Time to Buy or Let It Breathe? Operating income increased to $1.23 million from $1.21 million, also described by Trabelsi as an over 10-year record. EBITDA rose 32% to $3.34 million from $2.53 million, another over 10-year record, according to management. Trabelsi said GAAP net income, excluding extraordinary financial gains recorded in the first quarter of 2025, increased to $1.33 million from $0.1 million. He said non-GAAP net income, excluding extraordinary financial gains recorded in the year-earlier period, rose 155% to $2.78 million from $1.1 million. GAAP earnings per share were about $0.24, while non-GAAP EPS was $0.51. → MP Materials Is Quietly Building a Rare Earth Powerhouse Trabelsi framed the quarter as a continuation of a multi-year shift toward electronic monitoring and public safety technology for government customers. He said SuperCom provides technology for local and national governments and has increasingly focused on criminal justice applications through its proprietary PureSecurity product suite. He also reviewed the company’s recently reported fiscal 2025 results, saying they reflected the completion of a “very successful four-year transformation.” According to Trabelsi, the company’s electronic monitoring business produced a revenue compound annual growth rate of approximately 30% over that period, while company EBITDA grew at a compound annual rate of approximately 47%, reaching $9.4 million in 2025 from $2 million in 2021. → Micron Investors Face a High-Stakes Moment After the Latest Rally During that same period, Trabelsi said SuperCom reduced debt by approximately 45%, lowered its blended interest rate from double digits to slightly below 6% and increased cash and short-term deposits to more than $12 million. Management attributed the latest profitability improvements to several factors, including economies of scale, operating leverage, consolidation of European operations and growth in the U.S. market. Trabelsi said SuperCom has been consolidating and centralizing its operations in Europe, where projects span multiple countries and have historically required local partners for training, language support, in-country presence, deployment and other services. The company has established a central European hub in Romania for logistics, equipment handling, shipments and returns, he said. SuperCom is also taking on more IT and support responsibilities directly, reducing its reliance on local partners. Trabelsi said the company now provides its own 24/7 multi-tiered technology support across projects. “Centralizing these functions is significantly improving margins across contracts,” Trabelsi said. He also said SuperCom is using artificial intelligence to accelerate development, introduce new automations, improve operational efficiency and reduce costs across development and customer operations. In response to an analyst question from Song Lim of Sapient Investments, Trabelsi added that the company has been integrating AI into its technology offerings and expects to provide future updates. SuperCom’s expansion in the U.S. was a key focus of the call. Trabelsi said the company’s U.S. electronic monitoring technology annualized recurring revenue run rate grew by more than 180% compared with May 2025. He later clarified, in response to a question from Matthew Galinko of Maxim Group, that the figure refers to SuperCom’s electronic monitoring technology ARR and excludes recurring revenue from the company’s LCA business in California. Trabelsi said the company has signed more than 40 new electronic monitoring contracts since mid-2024 and built 17 new service provider partnerships. He noted that revenue recognition can lag contract signing because deployments may take up to six months or more as customers replace existing units. “In 2026, in Q1, we’ve seen this nice growth in ARR, which continues to improve as the months go by in the year,” Trabelsi said. He said the U.S. market is expected to become increasingly important to SuperCom over time, noting in response to analyst Greg Mesniaeff of Kingswood Capital that U.S. revenue remains smaller than Europe because of project size. Trabelsi said he expects the U.S. to eventually grow past Europe, citing an estimated $1.8 billion U.S. market by 2028 compared with $300 million in Europe. In Europe, Trabelsi highlighted two new national contracts, including a $17 million national contract from Sweden’s Ministry of Justice. He said that award brought SuperCom’s aggregate initial value of electronic monitoring contracts won in Sweden to more than $25 million. Trabelsi said SuperCom has won more than 15 national projects in recent years and described customer relationships as “very sticky.” He said the company has displaced long-term incumbents, including a 25-year incumbent in Sweden and incumbents of more than 20 years in Israel and Germany. He also discussed Romania, where SuperCom won the country’s first electronic monitoring contract in 2022 with an initial value of more than $33 million. In response to Mesniaeff’s question, Trabelsi said Romania remains an active customer and that SuperCom is receiving and supplying new orders, although order levels can vary based on the customer’s needs. Trabelsi said SuperCom expects future opportunities in Europe, including a potential opportunity in Italy expected at more than $20 million and a U.K. opportunity expected to exceed 150 million British pounds, with an initial request for proposals expected sometime in 2027. Asked about the competitive environment, Trabelsi said there are roughly 10 global players in the electronic monitoring industry and described the barriers to entry as high because customers require experience and references. He said SuperCom recently announced four county contract wins in New York and displaced three incumbents. Trabelsi said SuperCom typically scores higher on technology and benefits from live demos, trials and customer references in the U.S. In Europe, he said national evaluation processes can take months. He stated that SuperCom has had a win rate above 65% in European requests for proposals and said U.S. county-level opportunities have shown even higher rates so far, while cautioning that it is still early in the company’s U.S. expansion. Discussing future European bids, Trabelsi said SuperCom is better positioned than in the past because of a stronger balance sheet, more cash and a larger reference base. He said prior bids were affected by concerns about the company’s financial position and limited references. “Today, our balance sheet is much stronger,” Trabelsi said. “We have a much larger reference base. The company is much more stable.” SuperCom Ltd. (NASDAQ: SPCB) is a technology firm specializing in electronic monitoring, digital identity and secure IoT solutions. The company develops and delivers hardware and software platforms designed to monitor individuals in correctional and pre-trial settings, as well as to provide secure digital identity credentials for governments and commercial clients. SuperCom's core offerings include GPS and radio frequency (RF) tracking devices, biometric readers, secure communications modules and cloud-based monitoring portals. In addition to correctional monitoring, SuperCom has expanded into the digital identity and eHealth sectors. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "SuperCom Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

Record Gross Profit of $4.8 million, Record Operating Income of $1.2 million, Record EBITDA of $3.3 million; Revenue of $ 7.6 million and Non-GAAP EPS $0.51 TEL AVIV, Israel, May 14, 2026 /PRNewswire/ -- SuperCom (NASDAQ: SPCB), a global provider of secured solutions for the e-Government, IoT, and Cybersecurity sectors, today reported results for the first quarter, ended March 31, 2026. First Quarter Ended March 31, 2026, YoY Financial Highlights (Compared to the First Quarter of 2025) Revenue increased 8% to $7.6 million from $7.05 million. Gross profit increased 8% to $4.8 million from $4.5 million, an over 10-year record. Gross margin remained robust at slightly above 63%. Operating income increased to $1.23 million from $1.21 million, an over 10-year record. Excluding the extraordinary financial gains of $4.1 million recorded in Q1-25, GAAP net income surged to $1.33 million in Q1-26 from $0.1 million in Q1-25. These gains are related to conversions of debt to equity at negotiated premium prices of up to $43 per share in Q1-25. Excluding the extraordinary financial gains of $4.1 million recorded in Q1-25, Non-GAAP net income surged 155% to $2.78 million in Q1-26 from $1.1 million in Q1-25. EBITDA increased 32% to $3.34 million from $2.53 million, an over 10-year record. GAAP EPS was $0.24. Non-GAAP EPS was $0.51. Cash and cash equivalents increased to $11.02 million. Book Value of Equity increased to $45.6 million from $43.5 million at year-end 2025. SuperCom's electronic monitoring ("EM") technology quarterly recurring revenues in the U.S. increased approximately 88%, reflecting rapid expansion across the United States. SuperCom's electronic monitoring ("EM") technology Annualized Recurring Revenues (ARR) run-rate is accelerating, reflecting growth of over 180% from May 2025 to May 2026. Recent Business Highlights: Since mid-2024, SuperCom has secured over 40 new electronic monitoring (EM) contracts across the United States, including entry into 16 new states and 17 new partnerships with regional service providers. These achievements demonstrate SuperCom's continued expansion across the U.S electronic monitoring market and its growing ability to displace incumbent providers. On May 7, 2026, SuperCom secured four new direct county EM contracts in New York, displacement three incumbent vendors and expanding the Company's footprint to five counties in the state. On March 19, 2026, SuperCom was awarded a $17 million national electronic monitoring (EM) contract by Sweden's Prison and Probation Service. Under the agreement, SuperCom will deploy its PureSecurity EM Suite across a range of public safety programs, including GPS tracking of offenders, home detention monitoring, and indoor facility monitoring, and there is potential for significant expansion through additional programs. On March 10, 2026, SuperCom announced that it secured its fourth direct agency EM contract with a county government agency in Kentucky. On February 12, 2026, SuperCom signed a new EM service provider contract in Louisiana, marking the company's 16th new state since its rapid expansion into the U.S. starting mid-2024. On February 2, 2026, SuperCom expanded into its third county in Wisconsin following its initial entry into the state in September of 2025 with another EM contract. This underscores the company's ability to rapidly scale in states once its presence is established. On January 22, 2026, SuperCom signed its third EM contract in North Carolina. The agreement builds on SuperCom's momentum in the state following its PureOne rollout in December 2025 and the statewide procurement vehicle awarded in 2025 by the North Carolina Sheriff's Association. On January 9, 2026, SuperCom signed a new EM contract with another juvenile probation agency in the state of Texas. This represents SuperCom's second contract win in Texas, following its entry into the state in December 2025, underscoring the company's ability to scale quickly within newly entered U.S. markets. On January 6, 2026, SuperCom signed a national EM contract in a Western European country, further strengthening its position in Europe. This win marks the expansion of SuperCom's proprietary domestic violence (DV) solutions to a tenth nation globally. "We are pleased to begin 2026 with record gross profit, record operating income, and record EBITDA of $3.3 million for the first quarter, reflecting continued execution across our business and the scalability of our recurring revenue model," commented Ordan Trabelsi, President and CEO of SuperCom. "The quarter also reflected continued momentum in our electronic monitoring operations, with strong growth in U.S. electronic monitoring technology recurring revenues, expanding operating leverage, and accelerating deployment activity across our U.S. and international markets." "We continued to achieve strong progress and expansion momentum from our global operations during the quarter. Since mid-2024, we have secured over 40 new electronic monitoring contracts across 16 new states and 17 regional service-provider partnerships, including four new New York counties in May where we displaced three established incumbent industry providers. In Europe, we were awarded Sweden's $17 million national contract and extended our domestic violence solutions to a tenth nation. At the same time, our U.S. electronic monitoring technology annualized recurring revenue run-rate has expanded by over 180% year-over-year, reflecting the accelerating impact of our rapid deployment growth and expanding customer footprint across the United States," continued Ordan. "Q1 2026 marked one of the strongest and most profitable quarters in SuperCom's modern history. The Company also maintained a strong balance sheet with equity of $45.6 million and over $11 million in cash and cash equivalents. Combined with a growing pipeline of opportunities across both the U.S. and Europe, we believe SuperCom is well positioned to continue scaling its recurring revenue base, expanding profitability, and strengthening its market position throughout 2026 and the years to come, " Ordan concluded. Conference Call The Company will hold a conference call on Thursday, May 14, 2026, at 10 a.m. Eastern time (7 a.m. Pacific Time / 5 p.m. IL time) to discuss its financial results for the first quarter ended March 31, 2026. Financial results will be issued in a press release prior to the call. Conference Call Dial-In Information: Date: Thursday, May 14, 2026 Time: 10 a.m. Eastern time (7 a.m. Pacific time) U.S. toll-free: 888-506-0062 Israel toll-free: 1-809-423-853 International: 973-528-0011 Access Code: SuperCom Link: https://www.webcaster5.com/Webcast/Page/2259/54007 Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. About SuperCom Since 1988, SuperCom has been a global provider of traditional and digital identity solutions, providing advanced safety, identification and security solutions to governments and organizations, both private and public, throughout the world. Through its proprietary e-government platforms and innovative solutions for traditional and biometrics enrollment, personalization, issuance and border control services, SuperCom has inspired governments and national agencies to design and issue secure Multi-ID documents and robust digital identity solutions to its citizens and visitors. SuperCom offers a unique all-in-one field-proven RFID & mobile technology and product suite, accompanied by advanced complementary services for various industries including healthcare and homecare, security and safety, community public safety, law enforcement, electronic monitoring, and domestic violence prevention. For more information, visit www.supercom.com. Cautionary Note Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements preceded or followed by or that otherwise include the words "believes", "expects", "anticipates", "intends", "projects", "estimates", "plans", and similar expressions or future or conditional verbs such as "will", "should", "would", "may" and "could" are generally forward-looking in nature and not historical or current facts. These forward-looking statements are subject to risks and uncertainties that could cause our actual results to differ materially from the statements made. Examples of these statements include, but are not limited to, statements regarding business and economic trends, the levels of consumer, business and economic confidence generally, the adverse effects of these risks on our business or the market price of our ordinary shares, and other risks and uncertainties described in the forward-looking statements and in the section captioned "Risk Factors" in our Annual Report on Form 20-F for the year ended December 31, 2025, filed with the U.S. Securities and Exchange Commission (the "SEC") on April 28, 2026, our reports on Form 6-K filed from time to time with the SEC and our other filings with the SEC. Except as required by law, we do not undertake any obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this press release. Results presented in this press release are based on management's estimated unaudited analysis of financial results for the presented periods. SuperCom's independent registered accounting firm has not audited the financial data discussed in this press release. During the course of SuperCom's quarter- and fiscal year-end closing procedures and review process, SuperCom may identify items that would require it to make adjustments, which may be material, to the information presented in this press release. As a result, the estimated financial results constitute forward-looking information and are subject to risks and uncertainties, including possible adjustments to such results. Use of Non-GAAP Financial Information In addition to disclosing financial results calculated in accordance with the generally accepted accounting principles in the United States ("GAAP"), this release also contains non-GAAP financial measures, which SuperCom believes are the principal indicators of the operating and financial performance of its business. Management believes the non-GAAP financial measures provided are useful to investors' understanding and assessment of SuperCom's ongoing core operations and prospects for the future, as the charges eliminated are not part of the day-to-day business or reflective of the core operational activities of the company. Management uses these non-GAAP financial measures as a basis for strategic decisions, forecasting future results and evaluating the Company's current performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, or as a substitute for, or superior to, operating loss or net income (loss) or any other performance measures derived in accordance with GAAP or as an alternative to net cash provided by operating activities or any other measures of our cash flows or liquidity. Non-GAAP EPS is defined as earnings before amortization and other non-cash or one-time expenses divided by weighted average outstanding shares. EBITDA is defined as earnings before interest, taxes, depreciation, amortization, and other non-cash or one-time expenses. SuperCom Investor Relations: [email protected] -Tables Follow- Logo: https://mma.prnewswire.com/media/1717536/SuperCom_Logo.jpg View original content:https://www.prnewswire.com/news-releases/supercom-reports-revenue-growth-and-record-profitability-for-the-first-quarter-of-2026-302772395.html