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:
[email protected]

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SOURCE SuperCom