SuperCom Reports Revenue Growth and Record Profitability for the First Quarter of 2026

Rhea-AI Summary

SuperCom (NASDAQ: SPCB) reported Q1 2026 revenue of $7.6 million, up 8% year-over-year, with record gross profit $4.8 million, record operating income $1.2 million, and record EBITDA $3.3 million.

GAAP EPS was $0.24, Non-GAAP EPS $0.51, cash $11.02 million, and equity $45.6 million. U.S. electronic monitoring recurring revenue rose about 88%, and EM ARR grew over 180% year-over-year, supported by a new $17 million Sweden contract and 40+ new EM contracts since mid-2024.

Positive

• Revenue increased 8% year-over-year to $7.6 million
• Record gross profit of $4.8 million with gross margin slightly above 63%
• Record operating income of $1.23 million and EBITDA of $3.3 million
• Non-GAAP net income up 155% to $2.78 million excluding prior extraordinary gains
• GAAP net income rose to $1.33 million excluding Q1 2025 extraordinary gains
• Cash and cash equivalents increased to $11.02 million; equity to $45.6 million
• U.S. EM quarterly recurring revenues up approximately 88%
• EM ARR run-rate up over 180% from May 2025 to May 2026
• Awarded a $17 million national EM contract in Sweden
• Over 40 new EM contracts across 16 new U.S. states since mid-2024

Negative

• None.

News Market Reaction – SPCB

-2.56%

9 alerts

-2.56% Session close to close

+4.7% Peak Tracked

-10.5% Trough Tracked

$62.58M Market Cap

1.0x Rel. Volume

In the May 14 session, SPCB declined 2.56%, reflecting a moderate negative market reaction. Argus tracked a peak move of +4.7% during that session. Argus tracked a trough of -10.5% from its starting point during tracking. Our momentum scanner triggered 9 alerts that day, indicating moderate trading interest and price volatility.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement highlights record Q1 2026 performance, including revenue of $7.6M, gross profit of...

Analysis

This announcement highlights record Q1 2026 performance, including revenue of $7.6M, gross profit of $4.8M, EBITDA of $3.34M, and non-GAAP EPS of $0.51, alongside cash of $11.02M and equity of $45.6M. It also underscores rapid expansion in electronic monitoring, with over 40 new U.S. contracts and a ~$17M national deal in Sweden. Investors may monitor future quarters for recurring revenue growth, margin durability, and continued contract wins in both U.S. and European markets.

Key Figures

Q1 2026 Revenue: $7.6M Q1 2026 Gross Profit: $4.8M Q1 2026 EBITDA: $3.34M +5 more

8 metrics

Q1 2026 Revenue $7.6M First quarter 2026 revenue, up 8% YoY from $7.05M

Q1 2026 Gross Profit $4.8M First quarter 2026 gross profit, up 8% YoY and 10+ year record

Q1 2026 EBITDA $3.34M First quarter 2026 EBITDA, up 32% from $2.53M

Q1 2026 GAAP EPS $0.24 Reported GAAP earnings per share for Q1 2026

Q1 2026 Non-GAAP EPS $0.51 Reported Non-GAAP earnings per share for Q1 2026

Cash & Equivalents $11.02M Cash and cash equivalents balance as of Q1 2026

Book Value of Equity $45.6M Equity at Q1 2026 vs $43.5M at year-end 2025

Sweden EM Contract $17M National electronic monitoring contract value with Sweden

Historical Context

5 past events · Latest: May 07 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
May 07	New EM contracts	Positive	+0.5%	Four new New York electronic monitoring contracts, displacing three incumbents.
May 06	Earnings call date	Neutral	+8.3%	Announcement of Q1 2026 results release and conference call scheduling.
Apr 28	Full-year results	Positive	-2.9%	Record 2025 revenue, EBITDA and net income plus strong balance sheet metrics.
Apr 23	Earnings call date	Neutral	-2.4%	Scheduling of Q4 and full-year 2025 results release and conference call.
Mar 19	Major EM contract	Positive	+5.5%	Award of ~$17M national electronic monitoring contract in Sweden.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent news has generally been positive (record results, major EM wins) with mixed price reactions—some strong gains on scheduling/contract news and at least one selloff on record full-year results, indicating inconsistent alignment between fundamentals and short-term trading.

Recent Company History

Over the past few months, SuperCom reported record full-year 2025 results with revenues of $27.9M, EBITDA of $9.4M, and GAAP net income of $3.75M, alongside strong cash and equity positions. It also secured a national electronic monitoring contract in Sweden valued at about $17M and multiple new U.S. county contracts, including four in New York. Earnings date announcements on April 28, 2026 and May 14, 2026 saw varied price reactions. Today’s Q1 2026 record profitability extends this theme of operational momentum and recurring revenue expansion.

Key Terms

ebitda, non-gaap eps, recurring revenues, annualized recurring revenues (arr), +1 more

5 terms

ebitda financial

"Record EBITDA of $3.3 million; Revenue of $ 7.6 million"

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

View in glossary

non-gaap eps financial

"Revenue of $ 7.6 million and Non-GAAP EPS $0.51"

Non-GAAP EPS is a measure of a company's profit per share that excludes certain expenses or income items that are included in standard accounting reports. It is used by investors to get a clearer picture of the company's core performance, much like removing one-time costs from a personal budget to see regular spending habits. This adjusted figure helps investors compare companies more consistently and understand their ongoing profitability.

recurring revenues financial

"technology quarterly recurring revenues in the U.S. increased approximately 88%"

Recurring revenues are the portion of a company's income that repeats at regular intervals—like subscription fees, service contracts, or maintenance payments—rather than one-off sales. Investors value them because they act like a steady paycheck for the business, making cash flow more predictable and company performance easier to forecast; that stability often leads to higher valuations and lower risk compared with firms relying mostly on one-time sales.

annualized recurring revenues (arr) financial

"Annualized Recurring Revenues (ARR) run-rate is accelerating"

Annualized recurring revenues (ARR) is the yearly value of a company’s predictable, subscription-style income based on current contracts or customers, calculated by converting recurring payments into a 12-month run rate and excluding one-time charges. Investors use ARR like a landlord uses projected annual rent: it reveals how much steady cash the business can expect, how fast that base is growing or shrinking, and helps assess company stability, valuation, and sensitivity to customer loss.

domestic violence (dv) solutions medical

"expansion of SuperCom's proprietary domestic violence (DV) solutions to a tenth nation"

Domestic violence (DV) solutions are products, services and programs aimed at preventing intimate partner abuse, protecting survivors and helping them access safety, legal help, counseling and shelter. Investors track this sector because demand is persistent, funding often combines private payments with public grants or contracts, and regulatory, social and reputational factors can strongly affect revenue and growth—think of it like investing in emergency services or community healthcare with both social impact and potential steady income.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Record Gross Profit of $4.8 million, Record Operating Income of $1.2 million, Record EBITDA of $3.3 million; Revenue of $ 7.6 million and Non-GAAP EPS $0.51

TEL AVIV, Israel, May 14, 2026 /PRNewswire/ -- SuperCom (NASDAQ: SPCB), a global provider of secured solutions for the e-Government, IoT, and Cybersecurity sectors, today reported results for the first quarter, ended March 31, 2026.

First Quarter Ended March 31, 2026, YoY Financial Highlights (Compared to the First Quarter of 2025)

• Revenue increased 8% to $7.6 million from $7.05 million.
• Gross profit increased 8% to $4.8 million from $4.5 million, an over 10-year record.
• Gross margin remained robust at slightly above 63%.
• Operating income increased to $1.23 million from $1.21 million, an over 10-year record.
• Excluding the extraordinary financial gains of $4.1 million recorded in Q1-25, GAAP net income surged to $1.33 million in Q1-26 from $0.1 million in Q1-25. These gains are related to conversions of debt to equity at negotiated premium prices of up to $43 per share in Q1-25.
• Excluding the extraordinary financial gains of $4.1 million recorded in Q1-25, Non-GAAP net income surged 155% to $2.78 million in Q1-26 from $1.1 million in Q1-25.
• EBITDA increased 32% to $3.34 million from $2.53 million, an over 10-year record.
• GAAP EPS was $0.24.
• Non-GAAP EPS was $0.51.
• Cash and cash equivalents increased to $11.02 million.
• Book Value of Equity increased to $45.6 million from $43.5 million at year-end 2025.
• SuperCom's electronic monitoring ("EM") technology quarterly recurring revenues in the U.S. increased approximately 88%, reflecting rapid expansion across the United States.
• SuperCom's electronic monitoring ("EM") technology Annualized Recurring Revenues (ARR) run-rate is accelerating, reflecting growth of over 180% from May 2025 to May 2026.
  
  

Recent Business Highlights:

• Since mid-2024, SuperCom has secured over 40 new electronic monitoring (EM) contracts across the United States, including entry into 16 new states and 17 new partnerships with regional service providers. These achievements demonstrate SuperCom's continued expansion across the U.S electronic monitoring market and its growing ability to displace incumbent providers.
• On May 7, 2026, SuperCom secured four new direct county EM contracts in New York, displacement three incumbent vendors and expanding the Company's footprint to five counties in the state.
• On March 19, 2026, SuperCom was awarded a $17 million national electronic monitoring (EM) contract by Sweden's Prison and Probation Service. Under the agreement, SuperCom will deploy its PureSecurity EM Suite across a range of public safety programs, including GPS tracking of offenders, home detention monitoring, and indoor facility monitoring, and there is potential for significant expansion through additional programs.
• On March 10, 2026, SuperCom announced that it secured its fourth direct agency EM contract with a county government agency in Kentucky.
• On February 12, 2026, SuperCom signed a new EM service provider contract in Louisiana, marking the company's 16th new state since its rapid expansion into the U.S. starting mid-2024.
• On February 2, 2026, SuperCom expanded into its third county in Wisconsin following its initial entry into the state in September of 2025 with another EM contract. This underscores the company's ability to rapidly scale in states once its presence is established.
• On January 22, 2026, SuperCom signed its third EM contract in North Carolina. The agreement builds on SuperCom's momentum in the state following its PureOne rollout in December 2025 and the statewide procurement vehicle awarded in 2025 by the North Carolina Sheriff's Association.
• On January 9, 2026, SuperCom signed a new EM contract with another juvenile probation agency in the state of Texas. This represents SuperCom's second contract win in Texas, following its entry into the state in December 2025, underscoring the company's ability to scale quickly within newly entered U.S. markets.
• On January 6, 2026, SuperCom signed a national EM contract in a Western European country, further strengthening its position in Europe. This win marks the expansion of SuperCom's proprietary domestic violence (DV) solutions to a tenth nation globally.

"We are pleased to begin 2026 with record gross profit, record operating income, and record EBITDA of $3.3 million for the first quarter, reflecting continued execution across our business and the scalability of our recurring revenue model," commented Ordan Trabelsi, President and CEO of SuperCom. "The quarter also reflected continued momentum in our electronic monitoring operations, with strong growth in U.S. electronic monitoring technology recurring revenues, expanding operating leverage, and accelerating deployment activity across our U.S. and international markets."

"We continued to achieve strong progress and expansion momentum from our global operations during the quarter. Since mid-2024, we have secured over 40 new electronic monitoring contracts across 16 new states and 17 regional service-provider partnerships, including four new New York counties in May where we displaced three established incumbent industry providers. In Europe, we were awarded Sweden's $17 million national contract and extended our domestic violence solutions to a tenth nation. At the same time, our U.S. electronic monitoring technology annualized recurring revenue run-rate has expanded by over 180% year-over-year, reflecting the accelerating impact of our rapid deployment growth and expanding customer footprint across the United States," continued Ordan.

 "Q1 2026 marked one of the strongest and most profitable quarters in SuperCom's modern history. The Company also maintained a strong balance sheet with equity of $45.6 million and over $11 million in cash and cash equivalents. Combined with a growing pipeline of opportunities across both the U.S. and Europe, we believe SuperCom is well positioned to continue scaling its recurring revenue base, expanding profitability, and strengthening its market position throughout 2026 and the years to come, " Ordan concluded.

Conference Call

The Company will hold a conference call on Thursday, May 14, 2026, at 10 a.m. Eastern time (7 a.m. Pacific Time / 5 p.m. IL time) to discuss its financial results for the first quarter ended March 31, 2026. Financial results will be issued in a press release prior to the call.

Conference Call Dial-In Information:

Date:                                    Thursday, May 14, 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/2259/54007 

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, 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

-Tables Follow-

 

SUPERCOM LTD. CONSOLIDATED BALANCE SHEETS (U.S. dollars in thousands)
		As of  March 31,			As of December 31,
		2026				2025
		Unaudited				Audited
CURRENT ASSETS
Cash and Cash Equivalents		11,016				9,829
Bank Deposits		-				2,366
Restricted Bank Deposits		55				57
Trade Receivables, Net		15,675				15,045
Patents		5,283				5,283
Other Accounts Receivable and Prepaid Expenses		1,978				2,566
Inventories, Net		2,163				2,209
Total Current Assets		36,170				37,355
LONG-TERM ASSETS
Deferred Tax Long Term		3,441				3,021
Property and Equipment, Net		2,966				3,023
Other Intangible Assets, Net		5,879				5,791
Other Non-Current Assets		15,347				12,163
Goodwill		7,026				7,026
Total Long-Term Assets		34,659				31,024
Total Assets		70,829				68,379
CURRENT LIABILITIES
Trade Payables		1,080					1,151
Employee and Payroll Accruals		1,679					1,632
Accrued Expenses and Other Liabilities		548					345
Short-Term Operating Lease Liabilities		249					425
Short-Term Credit		852					359
Short-Term Deferred Revenues		460					778
Total Current Liabilities		4,868					4,690
LONG-TERM LIABILITIES
Long-Term Loan		18,926					18,713
Long-Term Deferred Revenues		212					212
Long-Term Deferred Tax Liability		170					170
Long-Term Operating Lease Liabilities		1,082					1,082
Total Long-Term Liabilities		20,390					20,177
SHAREHOLDERS' EQUITY:
Ordinary Shares		74,823					74,823
Additional Paid-In Capital		71,962					71,228
Accumulated Deficit		(101,214)					(102,539)
Total Shareholders' Equity		45,571					43,512
Total Liabilities and Equity		70,829					68,379

 

 

SUPERCOM LTD. CONSOLIDATED STATEMENTS OF OPERATIONS (U.S. dollars in thousands, except for EPS)
		Three months ended
			March 31, 2026	March 31, 2025
		Unaudited		Unaudited
REVENUES			7,612	7,048
COST OF REVENUES			(2,810)	(2,588)
GROSS PROFIT			4,802	4,460
OPERATING EXPENSES:
Research and Development			984	933
Selling and Marketing			992	678
General and Administrative			1,556	1,594
Other Expense, Net			43	40
Total Operating Expenses			3,575	3,245
OPERATING PROFIT			1,227	1,215
FINANCIAL INCOME (EXPENSES), NET			(322)	3,010
PROFIT BEFORE INCOME TAX			905	4,225
INCOME TAX BENEFIT			420	-
NET INCOME FOR THE PERIOD			1,325	4,225
Net Income Per Share			0.24	1.20

 

 

SUPERCOM LTD. Reconciliation Table of GAAP to Non-GAAP Figures and Net Profit to EBITDA (U.S. dollars in thousands)
		Three months ended
			March 31, 2026	March 31, 2025
		Unaudited		Unaudited
GAAP Gross Profit			4,802	4,460
Amortization of Intangible Assets			88	88
Stock Based Compensation			7	-
Non-GAAP Gross Profit			4,897	4,548
GAAP Operating Profit			1,227	1,215
Amortization of Intangible Assets			615	588
Foreign Currency Loss			880	200
Stock Based Compensation			340	182
Other One-Time Expenses			43	40
Non-GAAP Operating Profit			3,105	2,225

 

	GAAP Net Profit			1,325	4,225
	Amortization of Intangible Assets			615	588
	Stock Based Compensation			340	182
	Income Tax Benefit			(420)	-
	Foreign Currency Loss			880	200
	Other One-Time Expenses			43	40
	Non-GAAP Net Profit			2,783	5,235
	Non-GAAP EPS			0.51	1.48
	Net Profit for the Period			1,325	4,225
	Financial Income (Expenses), Net			322	(3,010)
Income Tax Benefit				(420)	-
	Depreciation and Amortization			849	889
	Stock Based Compensation			340	182
	Foreign Currency Loss			880	200
	Other One-Time Expenses			43	40
	EBITDA *			3,339	2,526
	* 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.

Logo: https://mma.prnewswire.com/media/1717536/SuperCom_Logo.jpg

 

View original content:https://www.prnewswire.com/news-releases/supercom-reports-revenue-growth-and-record-profitability-for-the-first-quarter-of-2026-302772395.html

SOURCE SuperCom

FAQ

What were SuperCom (SPCB) Q1 2026 revenue and earnings results?

SuperCom reported Q1 2026 revenue of $7.6 million, GAAP EPS of $0.24, and Non-GAAP EPS of $0.51. According to SuperCom, revenue grew 8% year-over-year, supported by record gross profit of $4.8 million and record EBITDA of $3.3 million.

How profitable was SuperCom (SPCB) in the first quarter of 2026?

SuperCom recorded record operating income of $1.23 million and record EBITDA of $3.3 million in Q1 2026. According to SuperCom, Non-GAAP net income reached $2.78 million, up 155% year-over-year when excluding extraordinary financial gains recorded in Q1 2025.

How fast did SuperCom (SPCB) electronic monitoring recurring revenue grow by May 2026?

SuperCom’s electronic monitoring technology annualized recurring revenue run-rate grew over 180% from May 2025 to May 2026. According to SuperCom, U.S. electronic monitoring quarterly recurring revenues also increased about 88%, reflecting rapid expansion and deployment across its U.S. customer base.

What is the value of SuperCom (SPCB) Sweden electronic monitoring contract announced in March 2026?

SuperCom was awarded a national electronic monitoring contract in Sweden valued at $17 million. According to SuperCom, the deal covers deployment of its PureSecurity EM Suite across public safety programs and may allow further expansion through additional Swedish Prison and Probation Service programs.

How many new electronic monitoring contracts has SuperCom (SPCB) signed in the U.S. since mid-2024?

Since mid-2024, SuperCom has secured over 40 new electronic monitoring contracts across the United States. According to SuperCom, these wins include entry into 16 new states and 17 new partnerships with regional service providers, displacing incumbent vendors in several counties.

What does SuperCom (SPCB) Q1 2026 balance sheet reveal about cash and equity?

SuperCom ended Q1 2026 with $11.02 million in cash and cash equivalents and equity of $45.6 million. According to SuperCom, both cash and book value of equity increased compared to year-end 2025, supporting continued growth in its recurring revenue business.

How did SuperCom (SPCB) adjust for extraordinary financial gains in comparing Q1 2026 to Q1 2025?

Excluding $4.1 million in extraordinary financial gains from Q1 2025, GAAP net income rose to $1.33 million in Q1 2026 from $0.1 million. According to SuperCom, Non-GAAP net income similarly increased to $2.78 million from $1.1 million under this adjusted comparison.