SuperCom Reports Record Revenue and Record EBITDA of $4 Million in the Second Quarter of 2026

SuperCom Reports Record Revenue and Record EBITDA of $4 Million in the Second Quarter of 2026

Q2 2026: Record Revenue of $8.1million, 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:                              888-506-0062
Israel toll-free:                            1-809-423-853
International:                              973-528-0011
Access Code:                             SuperCom
Link:                                            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:
ir@supercom.com

* 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