SuperCom Reports Record Revenue and Record EBITDA of $4 Million in the Second Quarter of 2026
Rhea-AI Summary
SuperCom (NASDAQ: SPCB) reported Q2 2026 record revenue of $8.1 million, up 13.3% year over year, with gross profit of $4.9 million and 60.0% margin. GAAP net income was $1.1 million (EPS $0.20), while non-GAAP net income rose 32% to $2.9 million (non-GAAP EPS $0.52). EBITDA reached a record $4.0 million, up 58%.
For H1 2026, revenue grew 10.7% to $15.7 million and EBITDA increased to a record $7.3 million. Excluding a $4.1 million extraordinary gain in H1 2025, GAAP net income increased 50% to $2.4 million. SuperCom highlighted rapid expansion in electronic monitoring, with U.S. quarterly EM recurring revenue up about 171% and global EM ARR run-rate up about 290% year over year, plus major national contracts in Sweden (budget up to $75 million) and Norway ($6.1 million).
Positive
- Q2 2026 revenue $8.1M, up 13.3% year over year, an 8-year record
- Q2 2026 EBITDA $4.0M, up 58% year over year, over 10-year record
- Q2 2026 non-GAAP net income $2.9M, up 32% from $2.2M
- H1 2026 EBITDA $7.3M vs. $5.1M in H1 2025, over 10-year record
- Shareholders’ equity $47.8M, up 28% from $37.2M year over year
- U.S. EM quarterly recurring revenue up ~171%, ARR run-rate up ~290% year over year
Negative
- Q2 2026 GAAP operating profit $0.9M vs. $1.1M in Q2 2025
- H1 2026 non-GAAP net income $5.7M, down 23% from $7.4M
- H1 2026 GAAP net income $2.4M vs. $5.3M in H1 2025 including prior extraordinary gain
- H1 2026 financial result $0.7M expense vs. $3.0M income in H1 2025
- Cash and bank deposits $7.4M cash and $0 deposits vs. $9.8M cash and $2.4M deposits at year-end 2025
- H1 2026 foreign currency loss $2.2M and Q2 loss $1.3M, amid higher ILS/USD rates
News Explained
SuperCom completed a
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Aug 04 | Earnings date notice | Neutral | +1.8% | Scheduled Q2 2026 results and conference call for August 13 |
| Aug 03 | Ohio EM contract | Positive | +1.3% | Won second Ohio contract and displaced incumbent provider |
| Jul 29 | New York EM contract | Positive | -2.0% | Won sixth New York contract and replaced incumbent provider |
| Jul 20 | Kansas EM contract | Positive | +0.4% | Entered Kansas with a county-level recurring-revenue contract |
| Jul 16 | Ministry orders | Positive | -0.4% | Received European Ministry of Justice orders exceeding stated value |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent contract announcements produced mixed 24-hour reactions, with two gains and two declines rather than a consistent directional pattern.
Key Terms
non-gaap net income financial
ebitda financial
annualized recurring revenues financial
registered direct offering financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Q2 2026: Record Revenue of $8.1 million, Non-GAAP Net Income of
H1 2026: Revenue of
Second Quarter 2026 Financial Highlights (Compared to the Second Quarter of 2025):
- Revenue of
$8.1 million 13.3% compared to$7.1 million - Gross Profit of
$4.9 million 60.0% , compared to$4.2 million - GAAP Net Income of
$1.11 million $1.10 million 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 58% compared to$2.5 million - Total Shareholders' Equity was
$47.8 million 28% compared to 37.2 million. - SuperCom's electronic monitoring ("EM") technology quarterly recurring revenues in the
U.S . increased approximately171% , reflecting rapid expansion acrossthe 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 10.7% compared to$14.2 million - Gross Profit of
$9.7 million 61.7% , compared to 8.7 million. - Excluding the extraordinary financial gains of
$4.1 million 50% to$2.4 million $1.2 million 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 73% to$5.7 million $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 $5.1 million
"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
"Our strategy remains focused on going wider and deeper across our key markets. In
"Together, including more than 20 national electronic monitoring project wins across
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 acrossthe United States , including entry into 19 new states and 17 new partnerships with regional service providers. - Signed and launched a
$6.1 million 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 - 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 a100% conversion rate inNew 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 U.S . andEurope . - 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)
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
SUPERCOM LTD. | ||||
CONSOLIDATED BALANCE SHEETS | ||||
( | ||||
As of | As of | |||
2026 | 2025 | |||
Unaudited | Audited | |||
CURRENT ASSETS | ||||
Cash and Cash Equivalents | 7,429 | 9,829 | ||
Bank Deposits | - | 2,366 | ||
Restricted Bank Deposits | 26 | 57 | ||
Trade Receivables, Net | 17,074 | 15,045 | ||
Patents | 5,283 | 5,283 | ||
Other Accounts Receivable and Prepaid Expenses | 2,382 | 2,566 | ||
Inventories, Net | 3,538 | 2,209 | ||
Total Current Assets | 35,732 | 37,355 | ||
LONG-TERM ASSETS | ||||
Deferred Tax Long Term | 4,111 | 3,021 | ||
Property and Equipment, Net | 2,876 | 3,023 | ||
Other Intangible Assets, Net | 6,010 | 5,791 | ||
Other Non-Current Assets | 20,332 | 12,163 | ||
Goodwill | 7,026 | 7,026 | ||
Total Long-Term Assets | 40,355 | 31,024 | ||
Total Assets | 76,087 | 68,379 | ||
CURRENT LIABILITIES | ||||
Trade Payables | 2,346 | 1,151 | ||
Employee and Payroll Accruals | 1,490 | 1,632 | ||
Accrued Expenses and Other Liabilities | 564 | 345 | ||
Short-Term Operating Lease Liabilities | 673 | 425 | ||
Short-Term Credit | 797 | 359 | ||
Short-Term Deferred Revenues | 348 | 778 | ||
Total Current Liabilities | 6,218 | 4,690 | ||
LONG-TERM LIABILITIES | ||||
Long-Term Loan | 19,341 | 18,713 | ||
Long-Term Deferred Revenues | 212 | 212 | ||
Long-Term Deferred Tax Liability | 170 | 170 | ||
Long-Term Operating Lease Liabilities | 2,349 | 1,082 | ||
Total Long-Term Liabilities | 22,072 | 20,177 | ||
SHAREHOLDERS' EQUITY: | ||||
Ordinary Shares | 74,824 | 74,823 | ||
Additional Paid-In Capital | 73,080 | 71,228 | ||
Accumulated Deficit | (100,107) | (102,539) | ||
Total Shareholders' Equity | 47,797 | 43,512 | ||
Total Liabilities and Equity | 76,087 | 68,379 | ||
SUPERCOM LTD. | |||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||
( | |||||
Three months ended | |||||
June 30, | June 30, | ||||
Unaudited | Unaudited | ||||
REVENUES | 8,088 | 7,140 | |||
COST OF REVENUES | (3,205) | (2,922) | |||
GROSS PROFIT | 4,883 | 4,218 | |||
OPERATING EXPENSES: | |||||
Research and Development | 1,039 | 880 | |||
Selling and Marketing | 982 | 684 | |||
General and Administrative | 1,711 | 1,462 | |||
Other Expense, Net | 293 | 89 | |||
Total Operating Expenses | 4,025 | 3,115 | |||
OPERATING PROFIT | 858 | 1,103 | |||
FINANCIAL INCOME (EXPENSES), NET | (421) | (8) | |||
PROFIT BEFORE INCOME TAX | 437 | 1,095 | |||
INCOME TAX BENEFIT | 670 | - | |||
NET INCOME FOR THE PERIOD | 1,107 | 1,095 | |||
Net Income Per Share | 0.20 | 0.24 | |||
SUPERCOM LTD. | ||||
Reconciliation Table of GAAP to Non-GAAP Figures and EBITDA to Net Income | ||||
( | ||||
Three months ended | ||||
June 30, | June 30, | |||
Unaudited | Unaudited | |||
GAAP Gross Profit | 4,883 | 4,218 | ||
Amortization of Intangible Assets | 89 | 89 | ||
Stock Based Compensation | 7 | - | ||
Non-GAAP Gross Profit | 4,979 | 4,307 | ||
GAAP Operating Profit | 858 | 1,103 | ||
Amortization of Intangible Assets | 501 | 544 | ||
Foreign Currency Loss | 1,291 | 254 | ||
Stock Based Compensation | 340 | 41 | ||
Other One-Time Expenses | 319 | 256 | ||
Non-GAAP Operating Profit | 3,309 | 2,198 | ||
GAAP Net Profit | 1,107 | 1,095 | ||
Amortization of Intangible Assets | 501 | 544 | ||
Stock Based Compensation | 340 | 41 | ||
Income Tax Benefit | (670) | - | ||
Foreign Currency Loss | 1,291 | 254 | ||
Other One-Time Expenses | 319 | 256 | ||
Non-GAAP Net Profit | 2,888 | 2,190 | ||
Non-GAAP EPS | 0.52 | 0.49 | ||
Net Profit for the Period | 1,107 | 1,095 | ||
Financial Expenses (Income), Net | 421 | 8 | ||
Income Tax Benefit | (670) | - | ||
Depreciation and Amortization | 1,143 | 886 | ||
Stock Based Compensation | 340 | 41 | ||
Foreign Currency Loss | 1,291 | 254 | ||
Other One-Time Expenses | 319 | 256 | ||
EBITDA * | 3,951 | 2,540 | ||
SUPERCOM LTD. | |||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||
( | |||||
Six months ended | |||||
June 30, | June 30, | ||||
Unaudited | Unaudited | ||||
REVENUES | 15,700 | 14,188 | |||
COST OF REVENUES | (6,015) | (5,510) | |||
GROSS PROFIT | 9,685 | 8,678 | |||
OPERATING EXPENSES: | |||||
Research and Development | 2,023 | 1,813 | |||
Selling and Marketing | 1,974 | 1,362 | |||
General and Administrative | 3,267 | 3,056 | |||
Other Expense, Net | 336 | 129 | |||
Total Operating Expenses | 7,600 | 6,360 | |||
OPERATING PROFIT | 2,085 | 2,318 | |||
FINANCIAL INCOME (EXPENSES), NET | (743) | 3,002 | |||
PROFIT BEFORE INCOME TAX | 1,342 | 5,320 | |||
INCOME TAX BENEFIT | 1,090 | - | |||
NET INCOME FOR THE PERIOD | 2,432 | 5,320 | |||
Net Income Per Share | 0.44 | 1.32 | |||
SUPERCOM LTD. | ||||
Reconciliation Table of GAAP to Non-GAAP Figures and EBITDA to Net Income | ||||
( | ||||
Six months ended | ||||
June 30, | June 30, | |||
Unaudited | Unaudited | |||
GAAP Gross Profit | 9,685 | 8,678 | ||
Amortization of Intangible Assets | 177 | 177 | ||
Stock Based Compensation | 14 | - | ||
Non-GAAP Gross Profit | 9,876 | 8,855 | ||
GAAP Operating Profit | 2,085 | 2,318 | ||
Amortization of Intangible Assets | 1,116 | 1,132 | ||
Foreign Currency Loss | 2,171 | 454 | ||
Stock Based Compensation | 680 | 223 | ||
Other One-Time Expenses | 362 | 296 | ||
Non-GAAP Operating Profit | 6,414 | 4,423 | ||
GAAP Net Profit | 2,432 | 5,320 | ||
Amortization of Intangible Assets | 1,116 | 1,132 | ||
Stock Based Compensation | 680 | 223 | ||
Income Tax Benefit | (1,090) | - | ||
Foreign Currency Loss | 2,171 | 454 | ||
Other One-Time Expenses | 362 | 296 | ||
Non-GAAP Net Profit | 5,671 | 7,425 | ||
Non-GAAP EPS | 1.04 | 1.84 | ||
Net Profit for the Period | 2,432 | 5,320 | ||
Financial Expenses (Income), Net | 743 | (3,002) | ||
Income Tax Benefit | (1,090) | - | ||
Depreciation and Amortization | 1,992 | 1,775 | ||
Stock Based Compensation | 680 | 223 | ||
Foreign Currency Loss | 2,171 | 454 | ||
Other One-Time Expenses | 362 | 296 | ||
EBITDA * | 7,290 | 5,066 | ||
* 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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