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 $(SPCB)$, 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 $8.06.
Recent Business Highlights :
-- Since mid-2024, SuperCom has secured over 30 new electronic monitoring
(EM) contracts across the United States, including entry into 12 new
states, and 14 new partnerships with regional service providers. These
achievements reflect strong market demand for SuperCom's technology and
the company's growing ability to displace incumbents.
-- On November 6, 2025, SuperCom signed two new EM service provider
partnerships in Alabama, including one that replaced an incumbent
provider. These wins mark the company's third and fourth deployments in
the state within a year.
-- On October 16, 2025, SuperCom secured a second sheriff agency contract in
Utah this year to deploy its PureSecurity$(TM)$ 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(TM) 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(TM) platform.
-- On May 20, 2025, SuperCom secured a new EM contract in Virginia with an
established service provider to deploy its PureSecurity(TM) 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(TM) 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(TM) 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 As of
September 30, 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 September
30, 2025 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, September 30,
2025 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.
Logo: https://mma.prnewswire.com/media/1717536/SuperCom_Logo.jpg
View original content:https://www.prnewswire.com/news-releases/supercom-reports-record-net-income-of-6-million-and-non-gaap-eps-of-2-17-for-the-first-nine-months-of-2025--302614583.html
SOURCE SuperCom
(END) Dow Jones Newswires
November 13, 2025 09:15 ET (14:15 GMT)
Comments