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SuperCom Reports Record Revenue and Record EBITDA of $4 Million in the Second Quarter of 2026

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SuperCom Reports Record Revenue and Record EBITDA of $4 Million in the Second Quarter of 2026 Q2 2026: Record Revenue of $8.1 million, Non-GAAP Net Income of $2.9 million, Non-GAAP EPS of $0.52

H1 2026: Revenue of $15.7 million; Record EBITDA of $7.3 million

TEL AVIV, Israel, Aug. 13, 2026 /PRNewswire/ -- SuperCom Ltd. ("SuperCom" or the "Company") (NASDAQ: SPCB), a global provider of secure solutions for the e-Government, IoT and Cybersecurity sectors, today reported results for the second quarter ended June 30, 2026

Second Quarter 2026 Financial Highlights (Compared to the Second Quarter of 2025):

First Half Ended June 30, 2026 Financial Highlights (Compared to the First Half of 2025):

"We are pleased to report another record quarter for SuperCom, reaching record revenue and EBITDA levels," commented Ordan Trabelsi, President and CEO of SuperCom. "These results demonstrate the increasing operating leverage in our business as we scale our recurring revenue base, expand existing programs and continue to improve the efficiency of our operations. Our electronic monitoring business has grown at a compound annual rate of approximately 30% over 4-year period ending in 2025, while our EBITDA has grown at approximately 47% over the same period, reflecting the underlying strength and scalability of our business model."

"Our strategy remains focused on going wider and deeper across our key markets. In Europe, we added two significant national programs during the quarter, including our new contract with Sweden's Prison and Probation Service, with a $75 million budget as published by the customer, and Norway with a $6.1 million budget as published by the customer, which completed our expansion into across all five Nordic countries. At the same time, more than $3 million in new orders from an existing European Ministry of Justice customer demonstrates the opportunity to grow within markets where our technology is already deployed. In the U.S., we have now secured more than 45 new electronic monitoring contracts since mid-2024, expanding our presence across 19 new states, while our U.S. electronic monitoring technology annualized recurring revenue run-rate has increased approximately 290% year-over-year."

"Together, including more than 20 national electronic monitoring project wins across Europe and continued expansion across the U.S., reflect the durability of our technology-driven approach as we scale into new and existing markets. With record revenue and profitability, a strengthened balance sheet, a growing global pipeline and substantial opportunities to expand both within existing markets and into new ones, we believe SuperCom is better positioned than at any point in our history to scale our recurring revenue base and build on our leadership in electronic monitoring."

Second Quarter 2026 Business and Operational Highlights:

Subsequent Events:

1. EBITDA is a non-GAAP measure defined in the section titled "Use of Non-GAAP Financial Information" below and reconciled to the most directly comparable GAAP measure at the end of this release.

Conference Call

The Company will hold a conference call on Thursday, August 13, 2026, at 10 a.m. Eastern time (7 a.m. Pacific Time / 5 p.m. IL time) to discuss its financial results for the second quarter ended June 30, 2026. Financial results will be issued in a press release prior to the call.

Conference Call Dial-In Information:

Date: Thursday, August 13, 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/2259/54375

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 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]

SUPERCOM LTD.

CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands)

As of

June 30,

As of

December 31,

2026

2025

Unaudited

Audited

CURRENT ASSETS

Cash and Cash Equivalents

7,429

9,829

Bank Deposits

-

2,366

Restricted Bank Deposits

26

57

Trade Receivables, Net

17,074

15,045

Patents

5,283

5,283

Other Accounts Receivable and Prepaid Expenses

2,382

2,566

Inventories, Net

3,538

2,209

Total Current Assets

35,732

37,355

LONG-TERM ASSETS

Deferred Tax Long Term

4,111

3,021

Property and Equipment, Net

2,876

3,023

Other Intangible Assets, Net

6,010

5,791

Other Non-Current Assets

20,332

12,163

Goodwill

7,026

7,026

Total Long-Term Assets

40,355

31,024

Total Assets

76,087

68,379

CURRENT LIABILITIES

Trade Payables

2,346

1,151

Employee and Payroll Accruals

1,490

1,632

Accrued Expenses and Other Liabilities

564

345

Short-Term Operating Lease Liabilities

673

425

Short-Term Credit

797

359

Short-Term Deferred Revenues

348

778

Total Current Liabilities

6,218

4,690

LONG-TERM LIABILITIES

Long-Term Loan

19,341

18,713

Long-Term Deferred Revenues

212

212

Long-Term Deferred Tax Liability

170

170

Long-Term Operating Lease Liabilities

2,349

1,082

Total Long-Term Liabilities

22,072

20,177

SHAREHOLDERS' EQUITY:

Ordinary Shares

74,824

74,823

Additional Paid-In Capital

73,080

71,228

Accumulated Deficit

(100,107)

(102,539)

Total Shareholders' Equity

47,797

43,512

Total Liabilities and Equity

76,087

68,379

SUPERCOM LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

(U.S. dollars in thousands, except for EPS)

Three months ended

June 30,

2026

June 30,

2025

Unaudited

Unaudited

REVENUES

8,088

7,140

COST OF REVENUES

(3,205)

(2,922)

GROSS PROFIT

4,883

4,218

OPERATING EXPENSES:

Research and Development

1,039

880

Selling and Marketing

982

684

General and Administrative

1,711

1,462

Other Expense, Net

293

89

Total Operating Expenses

4,025

3,115

OPERATING PROFIT

858

1,103

FINANCIAL INCOME (EXPENSES), NET

(421)

(8)

PROFIT BEFORE INCOME TAX

437

1,095

INCOME TAX BENEFIT

670

-

NET INCOME FOR THE PERIOD

1,107

1,095

Net Income Per Share

0.20

0.24

SUPERCOM LTD.

Reconciliation Table of GAAP to Non-GAAP Figures and EBITDA to Net Income

(U.S. dollars in thousands)

Three months ended

June 30,

2026

June 30,

2025

Unaudited

Unaudited

GAAP Gross Profit

4,883

4,218

Amortization of Intangible Assets

89

89

Stock Based Compensation

7

-

Non-GAAP Gross Profit

4,979

4,307

GAAP Operating Profit

858

1,103

Amortization of Intangible Assets

501

544

Foreign Currency Loss

1,291

254

Stock Based Compensation

340

41

Other One-Time Expenses

319

256

Non-GAAP Operating Profit

3,309

2,198

GAAP Net Profit

1,107

1,095

Amortization of Intangible Assets

501

544

Stock Based Compensation

340

41

Income Tax Benefit

(670)

-

Foreign Currency Loss

1,291

254

Other One-Time Expenses

319

256

Non-GAAP Net Profit

2,888

2,190

Non-GAAP EPS

0.52

0.49

Net Profit for the Period

1,107

1,095

Financial Expenses (Income), Net

421

8

Income Tax Benefit

(670)

-

Depreciation and Amortization

1,143

886

Stock Based Compensation

340

41

Foreign Currency Loss

1,291

254

Other One-Time Expenses

319

256

EBITDA *

3,951

2,540

SUPERCOM LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

(U.S. dollars in thousands, except for EPS)

Six months ended

June 30,

2026

June 30,

2025

Unaudited

Unaudited

REVENUES

15,700

14,188

COST OF REVENUES

(6,015)

(5,510)

GROSS PROFIT

9,685

8,678

OPERATING EXPENSES:

Research and Development

2,023

1,813

Selling and Marketing

1,974

1,362

General and Administrative

3,267

3,056

Other Expense, Net

336

129

Total Operating Expenses

7,600

6,360

OPERATING PROFIT

2,085

2,318

FINANCIAL INCOME (EXPENSES), NET

(743)

3,002

PROFIT BEFORE INCOME TAX

1,342

5,320

INCOME TAX BENEFIT

1,090

-

NET INCOME FOR THE PERIOD

2,432

5,320

Net Income Per Share

0.44

1.32

SUPERCOM LTD.

Reconciliation Table of GAAP to Non-GAAP Figures and EBITDA to Net Income

(U.S. dollars in thousands)

Six months ended

June 30,

2026

June 30,

2025

Unaudited

Unaudited

GAAP Gross Profit

9,685

8,678

Amortization of Intangible Assets

177

177

Stock Based Compensation

14

-

Non-GAAP Gross Profit

9,876

8,855

GAAP Operating Profit

2,085

2,318

Amortization of Intangible Assets

1,116

1,132

Foreign Currency Loss

2,171

454

Stock Based Compensation

680

223

Other One-Time Expenses

362

296

Non-GAAP Operating Profit

6,414

4,423

GAAP Net Profit

2,432

5,320

Amortization of Intangible Assets

1,116

1,132

Stock Based Compensation

680

223

Income Tax Benefit

(1,090)

-

Foreign Currency Loss

2,171

454

Other One-Time Expenses

362

296

Non-GAAP Net Profit

5,671

7,425

Non-GAAP EPS

1.04

1.84

Net Profit for the Period

2,432

5,320

Financial Expenses (Income), Net

743

(3,002)

Income Tax Benefit

(1,090)

-

Depreciation and Amortization

1,992

1,775

Stock Based Compensation

680

223

Foreign Currency Loss

2,171

454

Other One-Time Expenses

362

296

EBITDA *

7,290

5,066

* 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.

SOURCE SuperCom