SuperCom Reports Record Net Income of $5.3 Million and Non-GAAP EPS of $1.84 for First Half 2025

Rhea-AI Summary

SuperCom (NASDAQ: SPCB), a provider of e-Government, IoT, and Cybersecurity solutions, reported strong financial results for H1 2025. The company achieved record net income of $5.3 million, representing a 79.5% increase year-over-year, with non-GAAP EPS of $1.84.

First half highlights include revenue of $14.2 million, improved gross margin of 61.2%, and EBITDA of $5.1 million. Q2 2025 delivered revenue of $7.14 million with operating margin nearly tripling to 15.4%. The company's cash position strengthened to $15 million, up from $5.7 million.

SuperCom secured over 30 new electronic monitoring contracts across the United States since mid-2024, expanding into 11 new states. Notable achievements include winning the Israel Prison Service national contract and establishing new partnerships in multiple regions, demonstrating strong market penetration and incumbent displacement capabilities.

Positive

• Record net income of $5.3 million in H1 2025, up 79.5% year-over-year
• Significant gross margin expansion to 61.2% from 52.3% in H1
• Operating margin more than doubled to 16.2% in H1 2025
• Strong cash position of $15 million, up from $5.7 million
• Secured over 30 new electronic monitoring contracts and entered 11 new U.S. states
• Won major national contract with Israel Prison Service
• Book value of equity increased to $37.3 million from $13.8 million

Negative

• Slight revenue decline to $14.2 million in H1 2025 from $14.4 million in H1 2024
• Q2 revenue decreased to $7.14 million from $7.5 million year-over-year

Q2: Revenue of $7.14 Million; Net Income of $1.1 Million; non-GAAP EPS of $0.49 ; EBITDA of $2.5 Million

H1: Revenue of $14.2 Million; Gross Margin of 61.2%; Non-GAAP Net Income of $7.4 Million

TEL AVIV, Israel, Aug. 14, 2025 /PRNewswire/ -- SuperCom (NASDAQ: SPCB), a global provider of secured solutions for the e-Government, IoT, and Cybersecurity sectors, today reported results for the second quarter, ended June 30, 2025.

First Half Ended June 30, 2025, Financial Highlights (Compared to the First Half of 2024)

• Revenue was $14.2 million, compared to $14.4 million.
• Gross profit increased by 15.2% to $8.7 million from $7.5 million.
• Gross margin expanded to 61.2% from 52.3%.
• Operating income more than doubled to $2.3 million from $1.1 million.
• Operating margin more than doubled to 16.2% from 7.6%.
• Net income increased by 79.5% to $5.3 million from $3.0 million.
• Non-GAAP net income increased by 61.3% to $7.4 million from $4.6 million.
• EBITDA increased by 41.1% to $5.1 million, compared to $3.6 million.
• Non-GAAP EPS of $1.84.

Second Quarter Ended June 30, 2025, Financial Highlights (Compared to the Second Quarter of 2024)

• Revenue was $7.14 million, compared to $7.5 million.
• Gross profit grew 12.7% to $4.2 million from $3.7 million.
• Gross margin expanded to 59.1% from 49.6%.
• Operating income increased by 187% to $1.1 million from $0.4 million.
• Operating margin nearly tripled to 15.4% from 5.3%.
• Net income was $1.1 million compared to $2.2 million (or $0.4 million net financial gains of $1.8 million).
• Non-GAAP net income was $2.2 million compared to $3.3 million (or $1.5 million, net financial gains of $1.8 million).
• EBITDA increased by 56.3% to $2.5 million from $1.6 million.
• Non-GAAP EPS of $0.49.
• Working capital improved to $40.8 million, up from $26.1 million.
• Book Value of Equity increased to $37.3 million, up from $13.8 million.
• Cash and cash equivalents of $15 million, up from $5.7 million.

Recent Business Highlights:

• Since mid-2024, SuperCom has secured over 30 new electronic monitoring (EM) contracts across the United States, including entry into 11 new states, and 9 new partnerships with regional service providers. These achievements reflect strong market demand for SuperCom's technology and the company's growing ability to displace incumbents.
• On July 16, 2025, SuperCom secured a new EM contract in Tennessee with a state-based service provider that will transition existing GPS programs to SuperCom's platform and launch DV monitoring.
• On June 11, 2025, SuperCom's wholly owned subsidiary, Leaders in Community Alternatives (LCA), was awarded a reentry-services contract in Northern California valued at up to $2.5 million over five years.
• On June 6, 2025, SuperCom signed a new agreement with a Southeastern service provider to introduce its EM technology in Florida and Mississippi.
• On June 4, 2025, SuperCom was awarded a statewide technology procurement contract by the North Carolina Sheriff's Association, emerging as the only new EM technology provider selected. This vehicle enables counties to contract directly with SuperCom on preset terms.
• On May 27, 2025, SuperCom secured a new EM contract in Nebraska through an agreement with a regional service provider that will transition its GPS programs to SuperCom's PureSecurity™ platform.
• On May 20, 2025, SuperCom secured a new EM contract in Virginia with an established service provider to deploy its PureSecurity™ technology. SuperCom was selected following rigorous testing and displaced the incumbent vendor.
• SuperCom, together with partner Electra Security, was awarded a five-to-nine-year national EM contract by the Israel Prison Service to cover all EM offender monitoring in Israel. As part of this project, over 1,500 units of SuperCom's PureSecurity™ Suite have already been delivered, reflecting recent growth with potential for more.
• On May 8, 2025, SuperCom announced a new contract with a seasoned Canadian EM service provider to introduce its PureSecurity™ Suite into the provider's operations.
• On April 29, 2025, SuperCom was awarded a new EM contract in Utah through a competitive process with multiple other vendors, further signaling SuperCom's momentum in displacing legacy systems.
• On April 17, 2025, SuperCom announced a new direct agency contract in Kentucky to deploy its GPS tracking technology under a daily lease model.
• On April 10, 2025, SuperCom entered a contract with a regional service provider in the U.S. Midwest to expand operations into Wisconsin, Minnesota, and Michigan. The agreement includes DV monitoring.
• On February 20, 2025, SuperCom announced it was awarded a new national domestic violence monitoring project in the EMEA region, marking the company's seventh national DV contract globally.

Management Commentary:

"We're pleased to report record first-half results, with GAAP net income of $5.32 million—approximately 80% higher year over year—and first-half gross margin of 61.2%," commented Ordan Trabelsi, President and CEO of SuperCom. "Operating profitability also improved significantly, with first-half operating margin more than doubling to 16.3%, and Q2 operating margin tripling to 15.4%. In addition, we expanded into new geographies and deployed more units within existing projects. These achievements were driven by strong project execution, the technological advantages of our solutions, strategic financial agreements, and the operational leverage inherent in our business model."

"Globally, we continued to evolve complex national-level projects, including the national Israeli EM project, the Swedish Ministry of Justice project, the Romanian Ministry of Interior project, and our seventh national domestic-violence program in EMEA. In the U.S., we advanced our strategy with new state entries in Virginia, Nebraska, and Tennessee; secured a statewide procurement vehicle in North Carolina that streamlines county-level contracting; and expanded service-provider partnerships in the Southeast and Midwest, while also adding new wins in Utah and Kentucky. We were also awarded another reentry services contract in Northern California. Together, these initiatives broaden our recurring revenue base and underscore our ability to displace incumbents with our PureSecurity™ technology," Trabelsi added.

"In recent years, we have invested significantly in establishing our presence in Europe, where we won over 15 nationwide EM projects with a historical RFP win rate surpassing 65%. Over the past 12 months, we sharpened our focus in the United States, where the market opportunity is substantially larger and the economics are more attractive, and we secured over 30 new contracts and entered 11 states in less than a year. This demonstrates our proven ability to deliver superior technology and expand rapidly in the electronic monitoring market. We are encouraged by the momentum across the U.S., Europe, and other regions, and we remain committed to disciplined execution and expanding our global footprint. Supported by strong financials and growing recurring relationships, we continue to advance our public-safety mission and deliver value to our stakeholders," Trabelsi concluded.

Conference Call

The company will hold a conference call today (August 14, 2025) at 10:00 a.m. Eastern Time (7:00 a.m. Pacific time/ 5:00 p.m. IL time) to discuss these results, followed by a question and answer session.

Conference Call Dial-In Information:

Date:                                 Thursday, August 14, 2025
Time:                                 10:00 a.m. Eastern time (7:00 a.m. Pacific time)
U.S. toll-free:                     877-545-0523
Israel toll-free:                   1-809-423-853
International:                     973-528-0016
Access Code:                    SuperCom
Link:                                  https://www.webcaster4.com/Webcast/Page/2259/52814

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, 2024, filed with the U.S. Securities and Exchange Commission (the "SEC") on April 28, 2025 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 estimate 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 and 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

 

 

[Tables to follow]

 

SUPERCOM LTD. CONSOLIDATED BALANCE SHEETS (U.S. dollars in thousands)
		As of June 30,			As of December 31,
		2025				2024
		Unaudited				Audited
CURRENT ASSETS
Cash and cash equivalents		15,030				3,150
Restricted bank deposits		390				388
Trade receivable, net		19,826				12,767
Patents		5,283				5,283
Other accounts receivable and prepaid expenses		2,019				2,153
Inventories, net		2,634				2,521
Total current assets		45,182				26,262
LONG-TERM ASSETS
Deferred tax long term		919				919
Property and equipment, net		4,056				3,261
Other intangible assets, net		5,687				5,638
Other non-current assets		2,609				2,818
Goodwill		7,026				7,026
Total long-term assets		20,297				19,662
Total Assets		65,479				45,924
CURRENT LIABILITIES
Trade payables		1,137				878
Employees and payroll accruals		1,231				1,165
Accrued expenses and other liabilities		668				470
Short-term Operating lease liabilities		348				445
Short-term credit		443				423
Deferred revenues ST		564				366
Total current liabilities		4,391				3,747
LONG-TERM LIABILITIES
Long-term loan		23,618				29,748
Deferred revenues		49				444
Deferred tax liability LT		170				170
Long-term Operating lease liabilities		-				118
Total long-term liabilities		23,837				30,480
SHAREHOLDERS' EQUITY:
Ordinary shares		61,088				29,238
Additional paid-in capital		77,130				88,746
Accumulated deficit		(100,967)				(106,287)
Total shareholders' equity		37,251				11,697
Total liabilities and equity		65,479				45,924

 

SUPERCOM LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands)
		Six months ended
		June 30, 2025	June 30, 2024
		Unaudited	Unaudited
REVENUES		14,188	14,397
COST OF REVENUES		(5,510)	(6,867)
GROSS PROFIT		8,678	7,530
OPERATING EXPENSES:
Research and development		1,813	1,900
Selling and marketing		1,362	1,210
General and administrative		3,056	2,748
Other expense, net		129	570
Total operating expenses		6,360	6,428
OPERATING PROFIT		2,318	1,102
FINANCIAL INCOME, NET		3,002	1,443
PROFIT BEFORE INCOME TAX		5,320	2,545
INCOME TAX BENEFIT		-	418
NET PROFIT FOR THE PERIOD		5,320	2,963

 

SUPERCOM LTD. Reconciliation Table of GAAP to Non-GAAP Figures and EBITDA to Net Income (U.S. dollars in thousands)
	Six months ended
	June 30, 2025	June 30, 2024
	Unaudited	Unaudited
GAAP gross profit	8,678	7,530
Amortization of intangible assets	177	177
Non-GAAP gross profit	8,855	7,707
GAAP Operating profit	2,318	1,102
Amortization of intangible assets	1,132	1,065
Stock Based Compensation	223	-
Foreign Currency Loss	454	353
Non-cash or one-time expenses	296	639
Non-GAAP operating profit	4,423	3,159
GAAP net profit	5,320	2,963
Amortization of intangible assets	1,132	1,065
Foreign Currency Loss	454	353
Stock Based Compensation	223	-
Income tax benefit	-	(418)
Non-cash or one-time expenses	296	639
Non-GAAP net profit	7,425	4,602
Net profit for the period	5,320	2,963
Financial expenses, net	(3,002)	(1,443)
Income tax benefit	-	(418)
Stock Based Compensation	223	-
Depreciation and Amortization	1,775	1,497
Foreign Currency Loss	454	353
Non-cash or one-time expenses	296	639
* EBITDA	5,066	3,591
* 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)
	Three months ended
	June 30, 2025	June 30, 2024
	Unaudited	Unaudited
REVENUES	7,140	7,545
COST OF REVENUES	(2,922)	(3,802)
GROSS PROFIT	4,218	3,743
OPERATING EXPENSES:
Research and development	880	999
Selling and marketing	684	686
General and administrative	1,462	1,359
Other expenses, net	89	315
Total operating expenses	3,115	3,359
OPERATING PROFIT	1,103	384
FINANCIAL EXPENSES, NET	(8)	1,804
PROFIT BEFORE INCOME TAX	1,095	2,188
INCOME TAX EXPENSE (BENEFIT)	-	-
NET INCOME FOR THE PERIOD	1,095	2,188

 

SUPERCOM LTD. Reconciliation Table of GAAP to Non-GAAP Figures and EBITDA to Net Income (U.S. dollars in thousands)
	Three months ended
	June 30, 2025	June 30, 2024
	Unaudited	Unaudited
GAAP gross profit	4,218	3,743
Amortization of intangible assets	89	89
Non-GAAP gross profit	4,307	3,832
GAAP Operating Profit	1,103	384
Amortization of intangible assets	544	552
Foreign Currency Loss	254	153
Stock Based Compensation	41	-
Non-cash or one-time expenses	256	359
Non-GAAP operating profit	2,198	1,448
GAAP net Profit	1,095	2,189
Amortization of intangible assets	544	552
Stock Based Compensation	41	-
Foreign Currency Loss	254	153
Non-cash or one-time expenses	256	359
Non-GAAP net Profit	2,190	3,253
Net Profit for the period	1,095	2,189
Financial expenses (income), net	8	(1,805)
Depreciation and Amortization	886	730
Stock Based Compensation	41	-
Foreign Currency Loss	254	153
Non-cash or one-time expenses	256	359
* EBITDA	2,540	1,626
* 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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FAQ

What were SuperCom's (SPCB) earnings for the first half of 2025?

SuperCom reported record net income of $5.3 million for H1 2025, a 79.5% increase year-over-year, with non-GAAP EPS of $1.84 and revenue of $14.2 million.

How many new contracts did SuperCom secure in the United States since mid-2024?

SuperCom secured over 30 new electronic monitoring contracts across the United States and expanded into 11 new states since mid-2024.

What was SuperCom's cash position in Q2 2025?

SuperCom reported cash and cash equivalents of $15 million, significantly up from $5.7 million in the previous period.

How did SuperCom's gross margin perform in H1 2025?

SuperCom's gross margin expanded to 61.2% in H1 2025 from 52.3% in H1 2024, showing significant improvement in operational efficiency.

What major contracts did SuperCom win in 2025?

SuperCom won several major contracts including the Israel Prison Service national contract, a statewide contract in North Carolina, and new contracts in Tennessee, Nebraska, Virginia, and other U.S. states.