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 (NASDAQ: 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™ 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™ 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™ platform.
On May 20, 2025, SuperCom secured a new EM contract in Virginia with an established service provider to deploy its PureSecurity™ 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™ 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™ 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:

[email protected]

[
Tables
to follow]

SUPERCOM LTD. CONSOLIDATED BALANCE SHEETS (U.S. dollars in thousands)
	As of September 30,	As of 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 30, 2025	September 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, 2025	September 30, 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.