SuperCom Wins Second New Electronic Monitoring Contract in Texas Within Weeks of State Entry

Rhea-AI Summary

SuperCom (NASDAQ: SPCB) won a second juvenile probation electronic monitoring contract in Texas, replacing an incumbent provider and deploying its GPS tracking and proprietary monitoring platform under a recurring revenue model based on active daily units. The award follows SuperCom's recent entry into Texas and underscores rapid U.S. expansion, already present in 16 U.S. states with over 35 new contracts secured since mid-2024. Management cited $6.0 million in net income and EBITDA margins >35% for the first nine months of 2025 and highlighted a tenth European country adopting its domestic violence monitoring technology.

Positive

• Second Texas juvenile probation contract won within weeks, showing rapid state-level traction
• Deployment uses SuperCom GPS tracking and proprietary monitoring platform
• Company reports $6.0 million net income in first nine months of 2025
• EBITDA margins exceeding 35% in first nine months of 2025
• Presence expanded to 16 U.S. states and >35 new contracts since mid-2024

Negative

• None.

Key Figures

Net income $6.0 million First nine months of 2025 mentioned in the release

EBITDA margin exceeding 35% First nine months of 2025 mentioned in the release

Domestic violence monitoring countries 10 countries Tenth country to adopt domestic violence monitoring technology

Other national EM projects 15 projects 15 other national EM projects won, per management comment

U.S. state expansion 16 U.S. states Expansion into 16 U.S. states as cited in the release

New contracts since mid-2024 over 35 contracts Over 35 new contracts secured since mid-2024

Market Reality Check

$8.41 Last Close

Volume Volume 169,659 vs. 61,789 20-day average (2.75x relative volume) suggests elevated interest before this news. high

Technical Price $7.91 is trading below the $9.34 200-day MA, indicating a weaker pre-news trend.

Peers on Argus

SPCB was down 6.72% while key peers like VRME (+8.42%), SUGP (+4.21%), KSCP (+2.73%), and GFAI (+1%) were up, indicating stock-specific weakness rather than a sector-wide move.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Jan 06	European EM contract	Positive	-1.6%	Won national EM contract in Western Europe, 10th domestic violence nation.
Dec 16	U.S. state expansion	Positive	+1.3%	New EM contract in North Carolina, expanding U.S. footprint to 15 states.
Dec 09	Germany EM award	Positive	+2.4%	Germany national EM contract with estimated $7M program budget over 4 years.
Dec 04	First Texas EM deal	Positive	+3.8%	First Texas juvenile probation EM contract, expanding footprint to 14 states.
Nov 19	Arizona DOC contract	Positive	+1.8%	First state-level DOC EM contract in Arizona under behavioral health program.

Pattern Detected

Positive contract-and-expansion news has usually aligned with modest price gains, with one recent instance of the stock declining despite upbeat headlines.

Recent Company History

Over recent months, SuperCom reported multiple contract wins and geographic expansion. It secured a national EM contract in Western Europe, its 10th domestic violence monitoring nation, with rollout expected in Q1 2026. U.S. growth included new EM contracts in Texas, North Carolina, and a state-level Department of Corrections deal in Arizona. Across these updates, management highlighted record net income of $6 million, EBITDA margins above 35%, and more than 30–35 U.S. contract wins since mid-2024, framing today’s Texas award as part of a continuing expansion pattern.

Market Pulse Summary

This announcement adds a second juvenile probation electronic monitoring contract in Texas within weeks of initial entry, reinforcing SuperCom’s expansion into 16 U.S. states and over 35 new contracts since mid-2024. Management highlighted $6.0 million net income and EBITDA margins above 35% for the first nine months of 2025. Investors may focus on recurring revenue growth, contract duration, and geographic diversification when assessing the long-term impact of these wins.

Key Terms

electronic monitoring technical

"secured a new electronic monitoring (EM) contract with another juvenile"

Electronic monitoring is the use of digital devices and software to collect, transmit and review real‑time data about people, equipment or processes for safety, compliance or performance — in medical and regulatory settings this often means remote patient tracking and electronic capture of trial or safety data. Investors care because it can speed decision‑making, cut costs and reduce regulatory risk by replacing paper records with a live dashboard, while introducing technology, privacy and compliance considerations.

gps tracking technical

"The deployment will utilize SuperCom's GPS tracking solution and proprietary"

GPS tracking uses signals from navigation satellites to determine and record the real-time location and movement of a vehicle, device, person, or asset, creating a digital breadcrumb trail. Investors care because it enables efficiency, cost savings, liability control and new service opportunities—similar to how a delivery app’s map improves route and timing—so adoption or improvements can affect a company’s revenue, margins and competitive position.

recurring revenue model financial

"The contract follows a simpe recurring revenue model based on active daily"

A recurring revenue model is a way businesses earn money by providing products or services on a regular, ongoing basis, rather than through one-time sales. It’s similar to a subscription or membership that customers pay for repeatedly, creating a steady stream of income. This model is important to investors because it can indicate stable, predictable earnings and long-term growth potential.

rfid technical

"all-in-one field-proven RFID & mobile technology and product suite"

RFID, or Radio Frequency Identification, is a technology that uses radio waves to automatically identify and track objects, animals, or people. It involves small tags or chips that emit signals when scanned, similar to a barcode but without needing direct line-of-sight. For investors, RFID enhances supply chain efficiency and inventory management, potentially reducing costs and improving business operations.

biometrics technical

"innovative solutions for traditional and biometrics enrollment, personalization,"

Biometrics are measurable physical or behavioral traits—like fingerprints, facial features, voice patterns, heart rate or gait—that uniquely identify or monitor a person, similar to how a key or signature proves identity. Investors care because biometric technology drives products and services in security, payments and health monitoring, affecting revenue opportunities, adoption trends and regulatory or privacy risks that can influence a company’s value and future growth.

AI-generated analysis. Not financial advice.

Another juvenile probation agency selects SuperCom to replace incumbent technology provider, underscoring rapid expansion momentum

TEL AVIV, Israel, Jan. 9, 2026 /PRNewswire/ -- SuperCom (NASDAQ: SPCB), a global provider of secure solutions for the e-Government, IoT, and Cybersecurity sectors, announced today that it has secured a new electronic monitoring (EM) contract with another juvenile probation agency in the state of Texas. This award represents SuperCom's second contract win in Texas, following its initial entry into the state announced last month, and highlights the company's ability to scale quickly within newly entered U.S. markets.

Under the agreement, the agency selected SuperCom to fully replace its incumbent electronic monitoring technology provider and modernize its offender supervision capabilities. The deployment will utilize SuperCom's GPS tracking solution and proprietary monitoring platform to modernize juvenile supervision programs with enhanced reliability, accuracy, and operational efficiency. The contract follows a simpe recurring revenue model based on active daily units.

"Winning a second juvenile probation contract in Texas within weeks of entering the state reinforces the expansion pattern we are executing across the U.S.," said Ordan Trabelsi, President and CEO of SuperCom. "Once we enter a new state, local agencies are increasingly selecting our platform, transitioning away from legacy systems and adopting our advanced technology solutions that can scale quickly and reliably."

"Our continued expansion is supported by a strong operational foundation, including a widening base of recurring revenue, a broad partner ecosystem, and record financial performance, with $6.0 million in net income and EBITDA margins exceeding 35% in the first nine months of 2025," Trabelsi added. "Recent national wins in Europe, including the tenth country to adopt our domestic violence monitoring technology after 15 other national EM projects won, reflect the global demand for our solutions. Combined with our expansion into 16 U.S. states and over 35 new contracts secured since mid-2024, we believe we are well positioned to drive sustained expansion across both existing and new markets," Trabelsi concluded.

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, worldwide. 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, please visit SuperCom's website: 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 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.

SuperCom Investor Relations:

ir@supercom.com

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SOURCE SuperCom

FAQ

What did SuperCom (SPCB) announce on January 9, 2026 about Texas contracts?

SuperCom announced a second juvenile probation electronic monitoring contract in Texas that replaces an incumbent provider and will deploy its GPS tracking platform.

How does the Texas contract with SuperCom (SPCB) generate revenue?

The contract uses a simple recurring revenue model based on active daily units for its electronic monitoring services.

What financial results did SuperCom (SPCB) report for the first nine months of 2025?

Management reported $6.0 million in net income and EBITDA margins exceeding 35% for the first nine months of 2025.

How extensive is SuperCom's (SPCB) U.S. expansion as of this announcement?

The company stated it has expanded into 16 U.S. states and secured over 35 new contracts since mid-2024.

What technology will SuperCom (SPCB) deploy for the juvenile probation agency in Texas?

SuperCom will deploy its GPS tracking solution together with its proprietary monitoring platform to modernize juvenile supervision programs.