SuperCom Reports Record Net Income of $6 Million and Non-GAAP EPS of $2.17 for the First Nine Months of 2025

Rhea-AI Summary

SuperCom (NASDAQ: SPCB) reported record results for the nine months ended September 30, 2025, with net income of $6.0 million and non-GAAP EPS of $2.17. Revenue was $20.4 million while gross margin expanded to 61.0% and EBITDA rose to $7.2 million (35.4% margin). Cash and cash equivalents more than doubled to $13.1 million, working capital grew to $41.8 million, and book value per share reached $8.06. The company listed multiple US state wins and a $7 million national EM contract in Germany as growth drivers.

Positive

• Net income of $6.0 million for first nine months
• Non-GAAP EPS of $2.17 for first nine months
• EBITDA increased to $7.2 million; margin 35.4%
• Gross margin expanded to 61.0% from 50.1%
• Cash more than doubled to $13.1 million
• Working capital grew 60% to $41.8 million

Negative

• None.

Insights

Equity Financial Analyst

Record profitability and margin expansion despite slight revenue decline signal materially improved operating leverage and cash strength.

Revenue for the first nine months fell slightly to $20.4 million from $21.3 million, yet gross profit rose to $12.5 million and gross margin expanded to 61.0% from 50.1%, implying cost structure improvements or higher-margin mix. Operating income nearly tripled to $3.0 million and net income more than doubled to $6.0 million, while non-GAAP net income increased to $9.3 million with non-GAAP net margin at 45.7%. EBITDA rose to $7.2 million and EBITDA margin to 35.4%, showing scaled profitability on reported activity.

Balance-sheet and liquidity metrics strengthened: working capital grew to $41.8 million, cash and cash equivalents more than doubled to $13.1 million, and book value rose to $40.8 million with book value per share at $8.06. Operationally, the company reported numerous contract wins including a $7 million national EM contract in Germany and over 30 new U.S. EM contracts since mid-2024, indicating expanding recurring-revenue opportunities. Watch near-term audit adjustments (results are unaudited estimates) and the conference call on November 13, 2025 for management’s discussion and any reconciliation between GAAP and non-GAAP figures within the next reporting cycle.

Q3: Non-GAAP Net Income $1.9 Million; EBITDA Margin of 34.6%; EBITDA of $2.2 Million; Non-GAAP EPS $0.39

9 Months: Non-GAAP Net Margin of 45.7%; Non-GAAP Net Income $9.3 Million

TEL AVIV, Israel, Nov. 13, 2025/PRNewswire/ -- SuperCom (NASDAQ: SPCB), a global provider of secured solutions for the e-Government, IoT, and Cybersecurity sectors, today reported results for the three and nine months ended September 30, 2025.

First Nine Months Ended September 30 , 2025 , Financial Highlights (Compared to First Nine months of 2024)

• Revenue decreased slightly to $20.4 million from $21.3 million.
• Gross profit increased to $12.5 million from $10.7 million.
• Gross margin expanded to 61.0% from 50.1%.
• Operating income nearly tripled to $3.0 million from $1.1 million.
• Net income more than doubled to $6.0 million from $2.5 million.
• Non-GAAP net income increased to $9.3 million from $4.9 million.
• Non-GAAP net margin more than doubled to 45.7% compared to 23.2%.
• EBITDA increased to $7.2 million from $4.6 million.
• EBITDA margin increased to 35.4% from 21.9%.
• Non-GAAP EPS of $2.17.

Third Quarter Ended September 30 , 2025 , Financial Highlights (Compared to the Third Quarter of 2024)

• Revenue decreased to $6.2 million from $6.9 million.  
• Gross profit increased to $3.8 million from $3.2 million.
• Gross margin expanded to 60.8% from 45.6%.
• Operating income surged to $0.64 million from $0.03 million.
• Net income increased to $0.7 million from a net loss of $0.4 million.
• Non-GAAP net income surged 450% to $1.9 million from $0.3 million.
• Non-GAAP net margin surged to 30.5% from 5%.
• EBITDA doubled to $2.2 million from $1.1 million.
• EBITDA margin more than doubled to 34.6% from 15.6%.
• Non-GAAP EPS surged 129% to $0.39 compared to $0.17.
• Working capital grew 60% to $41.8 million from $26.0 million.
• Book value more than tripled to $40.8 million from $13.3 million.
• Cash and cash equivalents more than doubled to $13.1 million from $6.2 million.
• Book value per share was $8.06.

Recent Business Highlights :

• Since mid-2024, SuperCom has secured over 30 new electronic monitoring (EM) contracts across the United States, including entry into 12 new states, and 14 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 November 6, 2025, SuperCom signed two new EM service provider partnerships in Alabama, including one that replaced an incumbent provider. These wins mark the company's third and fourth deployments in the state within a year.
• On October 16, 2025, SuperCom secured a second sheriff agency contract in Utah this year to deploy its PureSecurity™ platform. The agency selected SuperCom to replace an incumbent vendor and modernize its monitoring program.
• On October 8, 2025, SuperCom signed a second reseller partnership in Virginia this year to support community supervision programs. The provider is set to fully transition its GPS operations to SuperCom's platform.
• On September 22, 2025, SuperCom was awarded a $7 million national EM contract in Germany, displacing an over 20-year incumbent. The win marks a strategic expansion into Europe's largest economy and includes four nationwide program types under a multi-year framework.
• On September 17, 2025, SuperCom secured a new contract in Wisconsin to launch a domestic violence monitoring program through a regional service provider. The agency also plans to expand into GPS tracking.
• On August 20, 2025, SuperCom signed a direct agency contract with a community corrections agency in Alabama. The project will deploy the PureSecurity™ platform and marks SuperCom's second agency win in the state.
• 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.
• 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.
• On October 10, 2024, 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.

Management Commentary:

"We are excited to report record results and improvements in profitability for the first nine months of 2025," commented Ordan Trabelsi, President and CEO of SuperCom. "Net income reached a record of $6.0 million, approximately 140% higher year over year. Gross margin expanded to 61.0%, EBITDA margin surpassed 35%, and EBITDA reached $7.2 million. In the third quarter, this trend continued, with EBITDA doubling year over year to $2.2 million along with similar gross and EBITDA margins, demonstrating strong execution and the scalability of our model."

"Since our last quarterly earnings call, we continued to expand our footprint with new EM contracts in Tennessee and Wisconsin, follow-on wins in Virginia and Utah, and our 4^th contract this year in Alabama, including multiple competitive wins against incumbent providers. We also secured a $7 million national contract in Germany, extending our reach into Europe's largest economy. These wins not only demonstrate the strength of our proprietary technology but also validate our ability to earn trust in new markets, expand rapidly through follow-on wins, and displace legacy vendors time after time. They reflect growing confidence in our offering and signal a clear path for continued expansion across both U.S. and international markets."

"We continued to make progress on large-scale projects in the EMEA region, including national electronic monitoring programs in Israel, Sweden, Romania, Denmark and Finland. In the U.S., our growth trajectory follows a familiar pattern. We enter a new state, demonstrate value quickly, and expand through follow-on contracts. This approach was recently demonstrated in Alabama, where we secured multiple new agreements within months of market entry. This mirrors our successful model in Europe, where initial national project wins often lead to long-term expansion across programs and regions."

"Our international expansion strategy remains a key driver of long-term growth, with over 15 national project wins and an RFP win rate above 65% in Europe. In the U.S., we've secured more than 30 new contracts and entered 12 states since mid-2024. Many of these wins involved replacing long-term incumbent providers, reflecting the competitive strength of our PureSecurity technology. With increasing adoption of our solutions across our core markets, we remain focused on scaling operations, expanding recurring revenue, strengthening our industry leadership, and delivering value to our stakeholders," Trabelsi concluded.

Conference Call

SuperCom will hold a conference call today (Thursday, November 13, 2024) at 10:00 a.m. Eastern time (7:00 a.m. Pacific time; 5:00 p.m. Israel time) to discuss the company's financial and operating results for the three and nine months ended September 30, 2025, followed by a question and answer session.

Conference Call Dial-In Information:

Date:                              Thursday, November 13, 2025
Time:                              10:00 a.m. Eastern time (7:00 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/2259/53136

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 September 30,			As of December 31,
		2025				2024
		Unaudited				Audited
CURRENT ASSETS
Cash and cash equivalents		13,125				3,150
Restricted bank deposits		407				388
Trade receivable, net		23,027				12,767
Inventories, net		3,086				2,521
Other accounts receivable and prepaid expenses		2,558				2,153
Patents		5,283				5,283
Total current assets		47,486				26,262
LONG-TERM ASSETS
Deferred tax long term		919				919
Property and equipment, net		4,199				3,261
Other intangible assts, net		5,695				5,638
Other non-current assets		2,522				2,818
Goodwill		7,026				7,026
Total long-term assets		20,361				19,662
Total Assets		67,847				45,924

 

CURRENT LIABILITIES
Trade payables		1,596		878
Employees and payroll accruals		1,274		1,165
Accrued expenses and other liabilities		733		470
Short-term Operating lease liabilities		260		445
Short-term credit		1,193		423
Deferred revenues ST		672		366
Total current liabilities		5,728		3,747
LONG-TERM LIABILITIES
Long-term loan		21,108		29,748
Deferred revenues		49		444
Deferred tax liability LT		170		170
Long-term Operating lease liabilities		-		118
Total long-term liabilities		21,327		30,480
SHAREHOLDERS' EQUITY:
Ordinary shares		69,909		29,238
Additional paid-in capital		71,159		88,746
Accumulated deficit		(100,276)		(106,287)
Total shareholders' equity		40,792		11,697
Total liabilities and equity		67,847		45,924

 

 

SUPERCOM LTD. CONSOLIDATED STATEMENTS OF OPERATIONS (U.S. dollars in thousands, except for EPS)
		Three months ended
			September 30, 2025	September 30, 2024
		Unaudited		Una udited
REVENUES			6,224	6,911
COST OF REVENUES			(2,441)	(3,758)
GROSS PROFIT			3,783	3,153
OPERATING EXPENSES:
Research and development			882	933
Selling and marketing			634	625
General and administrative			1,496	1,474
Other expenses, net			132	90
Total operating expenses			3,144	3,122
OPERATING PROFIT			639	31
FINANCIAL EXPENSES, NET			52	(474)
PROFIT (LOSS) BEFORE INCOME TAX			691	(443)
INCOME TAX EXPENSE (BENEFIT)			-	-
NET INCOME ( LOSS) FOR THE PERIOD			691	(443)
Net Profit ( LOSS) Per Share			0.14	(0.21)

 

 

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, 2025	September 30, 2024
		Unaudited			Unaudited
GAAP gross profit			3,783		3,153
Amortization of intangible assets			88		88
Non-GAAP gross profit			3,871		3,241
GAAP Operating Profit			639		31
Amortization of intangible assets			531		540
Foreign Currency Loss			433		159
Stock Based Compensation			105		-
Non-cash or one-time expenses			140		90
Non-GAAP operating profit			1,848		820

 

GAAP net Profit (loss)			691	(443)
Amortization of intangible assets			531	540
Stock Based Compensation			105	-
Foreign Currency Loss			433	159
Non-cash or one-time expenses			140	90
Non-GAAP net Profit			1,900	346
Non-GAAP EPS			0.39	0.17
Net Profit (loss) for the period			691	(443)
Financial expenses (income), net			(52)	474
Depreciation and Amortization			836	797
Stock Based Compensation			105	-
Foreign Currency Loss			433	159
Non-cash or one-time expenses			140	90
EBITDA *			2,153	1,077
* 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, 2025	September 30, 2024
		Unaudited	Unaudited
REVENUES		20,412	21,308
COST OF REVENUES		(7,951)	(10,625)
GROSS PROFIT		12,461	10,683
OPERATING EXPENSES:
Research and development		2,695	2,833
Selling and marketing		1,996	1,835
General and administrative		4,552	4,222
Other expense, net		261	660
Total operating expenses		9,504	9,550
OPERATING PROFIT		2,957	1,133
FINANCIAL INCOME, NET		3,054	969
PROFIT BEFORE INCOME TAX		6,011	2,102
INCOME TAX BENEFIT		-	418
NET PROFIT FOR THE PERIOD		6,011	2,520
Net Profit Per Share		1.4	1.6

 

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, 2025	September  30, 2024
	Unaudited	Unaudited
GAAP gross profit	12,461	10,683
Amortization of intangible assets	265	265
Non-GAAP gross profit	12,726	10,948
GAAP Operating profit	2,957	1,133
Amortization of intangible assets	1,663	1,604
Stock Based Compensation	328	-
Foreign Currency Loss	887	512
Non-cash or one-time expenses	436	660
Non-GAAP operating profit	6,271	3,909
GAAP net profit	6,011	2,520
Amortization of intangible assets	1,663	1,604
Foreign Currency Loss	887	512
Stock Based Compensation	328	-
Income tax benefit	-	(418)
Non-cash or one-time expenses	436	660
Non-GAAP net profit	9,325	4,878
Non-GAAP E.P.S	2.17	3.05
Net profit for the period	6,011	2,520
Financial income, net	(3,054)	(969)
Income tax benefit	-	(418)
Stock Based Compensation	328	-
Depreciation and Amortization	2,611	2,293
Foreign Currency Loss	887	512
Non-cash or one-time expenses	436	660
EBITDA *	7,219	4,598
* 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

FAQ

What did SuperCom (SPCB) report for net income in the first nine months of 2025?

SuperCom reported net income of $6.0 million for the first nine months of 2025.

How much was SuperCom's non-GAAP EPS (SPCB) for the first nine months of 2025?

Non-GAAP EPS was reported at $2.17 for the first nine months of 2025.

What were SuperCom's (SPCB) EBITDA and EBITDA margin for the first nine months of 2025?

EBITDA was $7.2 million with an EBITDA margin of 35.4% for the first nine months of 2025.

Did SuperCom (SPCB) grow cash and working capital by September 30, 2025?

Yes. Cash and cash equivalents more than doubled to $13.1 million, and working capital grew to $41.8 million as of September 30, 2025.

What recent contracts did SuperCom (SPCB) announce that could drive growth?

Recent wins include over 30 new US EM contracts since mid-2024, entry into 12 new states, and a $7 million national EM contract in Germany.

How did SuperCom's (SPCB) gross margin change in the nine months to September 30, 2025?

Gross margin expanded to 61.0% compared with 50.1% in the prior-year period.