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PR Newswire · Press release

SuperCom Reports 21% Revenue Growth for the Third Quarter of 2026

SuperComNASDAQ-CM:SPCBDusseldorf:50S.DUFrankfurt:50S.FMunich:50S.MUNASDAQ:SPCBStuttgart:50S.SG
Industry BIMIndustry HTSIndustry CPRIndustry STWIndustry IOTSubject ERN

Original release from PR Newswire

As distributed by PR Newswire, unedited.


Q3 2026: Revenue of $7.5 million, EBITDA of $2.6 million, Non-GAAP EPS of $.30

First Nine Months 2026: Revenue of $23.2 million; EBITDA of $9.9 million

TEL AVIV, Israel, Nov. 12, 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 third quarter ended September 30, 2026.

Third Quarter 2026 Financial Highlights (Compared to the Third Quarter of 2025):  

  • Revenue of $7.5 million, an increase of 21% compared to $6.2 million.
  • Gross Profit of $3.7 million, with gross margin of 50%, compared to $3.8 million.
  • GAAP Net Income of $0.054 million, compared to $0.7 million, reflecting $0.38 million in additional costs from a 10% USD depreciation against the NIS and a $0.45 million (70%) increase in sales and marketing expenses, driven by headcount expansion to support future revenue growth.
  • Non-GAAP Net Income of $1.9 million compared to $1.9 million.
  • Non-GAAP EPS of $0.30.
  • EBITDA¹ of $2.6 million, an increase of 20% compared to $2.2 million.
  • Total shareholders' equity increased 28% to $55.6 million from $43.5 million as of December 31, 2025.
  • SuperCom's electronic monitoring ("EM") technology quarterly recurring revenues in the U.S. increased approximately 255%, reflecting rapid expansion across the United States.

First Nine Months Ended September 30, 2026 Financial Highlights (Compared to the First Nine Months of 2025): 

  • Revenue of $23.2 million, an increase of 14% compared to $20.4 million.
  • Gross Profit of $13.4 million, with gross margin of 57.8%, compared to $12.5 million.
  • Excluding the extraordinary financial gains of $4.1 million recorded in H1-25, GAAP Net Income increased by 32% to $2.5 million from $1.9 million.
  • GAAP EPS of $.43.
  • Excluding the extraordinary financial gains of $4.1 million recorded in H1-25, Non-GAAP Net Income increased by 45% to $7.5 million from $5.2 million.
  • Non-GAAP EPS of $1.32.
  • EBITDA¹ of $9.9 million, an increase of 36.7% compared to $7.2 million.

"We are pleased to report another strong quarter, with 21% revenue growth," commented Ordan Trabelsi, President and CEO of SuperCom. "Our results continue to reflect the operating leverage in our model. As our programs mature and more monitoring units are deployed, upfront onboarding and deployment costs are spread across a growing recurring revenue base, and we are seeing that dynamic in our profitability, despite continued foreign currency headwinds from the stronger Israeli shekel."

"Our electronic monitoring business continues to expand across both of our core markets. In the U.S., we have now secured more than 50 new electronic monitoring contracts and entered 21 new states since mid-2024, including our first contracts in Illinois and Indiana. Many of these wins replace long-standing incumbents. In Texas, every one of our five contracts since entering the state in December 2025 has involved displacing an incumbent provider, and our latest Utah contract came directly from the recommendation of an existing customer. In Europe, our more than 20 national project wins, including our new national program in Sweden, give us a strong foundation for continued growth."

"Following the quarter, we also introduced SafeGenie, a cybersecurity product suite for the real-time monitoring and control of autonomous AI agents, built on the proven kernel-level endpoint security technology of our subsidiary Safend. Electronic monitoring remains our primary growth driver, and SafeGenie complements it, creating an additional opportunity from technology and customer relationships we already have. With strong profitability with a TTM EBITDA of $12 million, a strong balance sheet and a growing pipeline across the U.S. and Europe, we believe SuperCom is well positioned to continue scaling its recurring revenue base globally."

Third Quarter 2026 Business and Operational Highlights:

  • Secured a direct county-level electronic monitoring contract with a community corrections agency in Indiana, marking the Company's entry into its 21st new U.S. state since mid-2024.
  • Secured a direct county-level electronic monitoring contract in Illinois to support a county sheriff's office in launching its newly established work-release program.
  • Secured a new county-level electronic monitoring contract with a Utah sheriff's agency directly following the recommendation of an existing SuperCom customer in another county and a trial of SuperCom's technology.
  • Won a new county-level electronic monitoring contract with a juvenile probation agency in the state of Texas.
  • 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.

Subsequent Events:

  • Won two new county-level electronic monitoring contracts with adult and juvenile probation agencies in the state of Texas.
  • Secured a direct county-level electronic monitoring contract with an adult probation and parole agency in New York State.
  • Introduced SafeGenie, a cybersecurity product suite for the real-time monitoring and control of autonomous artificial intelligence (AI) agents.

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, November 12, 2026, at 10 a.m. Eastern time (7 a.m. Pacific Time / 5 p.m. IL time) to discuss its financial results for the third quarter ended September 30, 2026.

Conference Call Dial-In Information:

Date:                            Thursday, November 12, 2026  

Time:                           10 a.m. Eastern time (7 a.m. Pacific time / 5 p.m. Israel time)

U.S. toll-free:               888-506-0062

Israel toll-free:            1-809-423-853

International:              973-528-0011

Access Code:             SuperCom 

Webcast:                     https://www.webcaster5.com/Webcast/Page/2259/54778

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization.

About SuperCom 

Founded in 1988, SuperCom (NASDAQ: SPCB) is a global provider of IoT, cybersecurity, and digital identity solutions for governments and enterprises worldwide.

SuperCom's IoT solutions combine proprietary wearable devices, communications technology, and monitoring software to deliver real-time electronic monitoring for public safety. Its PureSecurity suite, including the PureOne GPS monitoring solution and the PureProtect domestic violence monitoring solution, is deployed in government programs across Europe and North America.

Through its wholly owned cybersecurity subsidiary Safend, SuperCom provides endpoint data protection, data loss prevention, encryption, and device and port control solutions, helping organizations protect sensitive information and prevent unauthorized data access and transfer. SuperCom has also introduced SafeGenie, a suite for the real-time monitoring and control of AI agents.

SuperCom also delivers e-Government solutions for secure identification, biometric enrollment, document issuance, and border control.

For more information, please 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:

ir@supercom.com

 

 

SUPERCOM LTD.

CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands)







As of

September 30,



As of

December 31,





2026



2025





Unaudited



Audited











CURRENT ASSETS









   Cash and Cash Equivalents



12,921



9,829

Bank Deposits



-



2,366

Restricted Bank Deposits



9



57

Accounts Receivable



15,133



15,045

Patents



5,283



5,283

Other Accounts Receivable and Prepaid Expenses



2,031



2,566

Inventories, Net



3,419



2,209











Total Current Assets



38,796



37,355











LONG-TERM ASSETS









Long-Term Trade Receivables



12,882



9,614

Deferred Tax Long Term



4,781



3,021

Property and Equipment, Net



2,888



3,023

Other Intangible Assets, Net



6,179



5,791

Other Non-Current Assets



10,403



2,549

Goodwill



7,026



7,026











Total Long-Term Assets



44,159



31,024













Total Assets



82,955



68,379





CURRENT LIABILITIES









Trade Payables



1,285



1,151

Employees and Payroll Accruals



1,355



1,632

Accrued Expenses and Other Liabilities



961



345

Short-Term Operating Lease Liabilities



650



425

Short-Term Credit



388



359

Short-Term Deferred Revenues



343



778











Total Current Liabilities



4,982



4,690











LONG-TERM LIABILITIES



















Long-Term Loan



19,764



18,713

Long-Term Deferred Revenues



212



212

Long-Term Deferred Tax Liability



170



170

Long-Term Operating Lease Liabilities



2,207



1,082











Total Long-Term Liabilities



22,353



20,177











SHAREHOLDERS' EQUITY:









Ordinary Shares



74,827



74,823

Additional Paid-In Capital



80,846



71,228

Accumulated Deficit



(100,053)



(102,539)











Total Shareholders' Equity



55,620



43,512











Total Liabilities and Equity



82,955



68,379

 

 

SUPERCOM LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

(U.S. dollars in thousands, except for EPS)







Three months ended





September

30, 2026



September

30, 2025





Unaudited



Unaudited











REVENUES



7,485



6,224

COST OF REVENUES



(3,759)



(2,441)











GROSS PROFIT



3,726



3,783











OPERATING EXPENSES:









   Research and Development



933



882

   Selling and Marketing



1,076



634

   General and Administrative



1,866



1,496

   Other Expense, Net



140



132











Total Operating Expenses



4,015



3,144











OPERATING PROFIT (LOSS)



(289)



639

FINANCIAL INCOME (EXPENSES), NET



(327)



52











PROFIT (LOSS) BEFORE INCOME TAX 



(616)



691

INCOME TAX BENEFIT



670



-











NET INCOME FOR THE PERIOD



54



691

Net Income Per Share



0.01



0.14

 

 

SUPERCOM LTD.

Reconciliation Table of GAAP to Non-GAAP Figures and EBITDA to Net Income

(U.S. dollars in thousands, except for EPS)





Three months ended



September

30, 2026

September

30, 2025



Unaudited

Unaudited







GAAP Gross Profit

3,726

3,783

Amortization of Intangible Assets

88

88

Stock Based Compensation

7

-

Non-GAAP Gross Profit

3,821

3,871







GAAP Operating Profit (Loss)

(289)

639

Amortization of Intangible Assets

654

531

Foreign Currency Loss

1,349

433

Stock Based Compensation

340

105

Other One-Time Expenses

140

140

Non-GAAP Operating Profit

2,194

1,848







GAAP Net Profit (Loss)

54

691

Amortization of Intangible Assets

654

531

Stock Based Compensation

340

105

Income Tax Benefit

(670)

-

Foreign Currency Loss

1,349

433

Other One-Time Expenses

140

140

Non-GAAP Net Profit

1,867

1,900

Non-GAAP EPS

0.30

0.39







Net Profit (Loss) for the Period

54

691

Financial Expenses (Income), Net

327

(52)

Income Tax Benefit

(670)

-

Depreciation and Amortization

1,035

836

Stock Based Compensation

340

105

Foreign Currency Loss

1,349

433

Other One-Time Expenses

140

140

EBITDA *

2,575

2,153

* 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.

 

 

 

SUPERCOM LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

(U.S. dollars in thousands, except for EPS)







Nine months ended





September 30,

2026

September 30,

2025





Unaudited

Unaudited









REVENUES



23,185

20,412

COST OF REVENUES



(9,774)

(7,951)









GROSS PROFIT



13,411

12,461









OPERATING EXPENSES:







  Research and Development



2,956

2,695

  Selling and Marketing



3,050

1,996

  General and Administrative



5,133

4,552

  Other Expense, Net



476

261









Total Operating Expenses



11,615

9,504









OPERATING PROFIT



1,796

2,957

FINANCIAL INCOME (EXPENSES), NET



(1,070)

3,054









PROFIT BEFORE INCOME TAX



726

6,011

INCOME TAX BENEFIT



1,760

-









NET INCOME FOR THE PERIOD



2,486

6,011

Net Income Per Share



0.43

1.40

 

 

SUPERCOM LTD.

Reconciliation Table of GAAP to Non-GAAP Figures and EBITDA to Net Income

(U.S. dollars in thousands, except for EPS)

 



Nine months ended



September 30, 2026

September 30, 2025



Unaudited

Unaudited







GAAP Gross Profit

13,411

12,461

Amortization of Intangible Assets

265

265

Stock Based Compensation

21

-

Non-GAAP Gross Profit

13,697

12,726







GAAP Operating Profit

1,796

2,957

Amortization of Intangible Assets

1,770

1,663

Foreign Currency Loss

3,520

887

Stock Based Compensation

1,020

328

Other One-Time Expenses

502

436

Non-GAAP Operating Profit

8,608

6,271







GAAP Net Profit

2,486

6,011

Amortization of Intangible Assets

1,770

1,663

Stock Based Compensation

1,020

328

Income Tax Benefit

(1,760)

-

Foreign Currency Loss

3,520

887

Other One-Time Expenses

502

436

Non-GAAP Net Profit

7,538

9,325

Non-GAAP EPS

1.32

2.17







Net Profit for the Period

2,486

6,011

Financial Expenses (Income), Net

1,070

(3,054)

Income Tax Benefit

(1,760)

-

Depreciation and Amortization

3,027

2,611

Stock Based Compensation

1,020

328

Foreign Currency Loss

3,520

887

Other One-Time Expenses

502

436

EBITDA *

9,865

7,219

* 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.

 

 

 

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SOURCE SuperCom

Originally published by PR Newswire.

Source: SuperCom

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