Q3 2026: Revenue of $7.5million, 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.
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CONSOLIDATED BALANCE SHEETS
---
(U.S. dollars in thousands)
As of As of
September
30, 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.
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CONSOLIDATED STATEMENTS OF OPERATIONS
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(U.S. dollars in thousands, except for EPS)
Three months ended
September September
30, 2026 30, 2025
Unaudited Una
udited
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.
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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 September
30, 2026 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.
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CONSOLIDATED STATEMENTS OF OPERATIONS
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(U.S. dollars in thousands, except for EPS)
Nine months ended
September September
30, 30,
2026 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)
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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
