SuperCom Reports Revenue Growth and Record Profitability for the First Quarter of 2026

SuperCom Reports Revenue Growth and Record Profitability for the First Quarter of 2026 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)

Recent Business Highlights:

"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]

-Tables Follow-

SUPERCOM LTD.

CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands)

As of

March 31,

As of

December 31,

2026

2025

Unaudited

Audited

CURRENT ASSETS

Cash and Cash Equivalents

11,016

9,829

Bank Deposits

2,366

Restricted Bank Deposits

Trade Receivables, Net

15,675

15,045

Patents

5,283

Other Accounts Receivable and Prepaid Expenses

1,978

2,566

Inventories, Net

2,163

2,209

Total Current Assets

36,170

37,355

LONG-TERM ASSETS

Deferred Tax Long Term

3,441

3,021

Property and Equipment, Net

2,966

3,023

Other Intangible Assets, Net

5,879

5,791

Other Non-Current Assets

15,347

12,163

Goodwill

7,026

Total Long-Term Assets

34,659

31,024

Total Assets

70,829

68,379

CURRENT LIABILITIES

Trade Payables

1,080

1,151

Employee and Payroll Accruals

1,679

1,632

Accrued Expenses and Other Liabilities

548

345

Short-Term Operating Lease Liabilities

249

425

Short-Term Credit

852

359

Short-Term Deferred Revenues

460

778

Total Current Liabilities

4,868

4,690

LONG-TERM LIABILITIES

Long-Term Loan

18,926

18,713

Long-Term Deferred Revenues

212

Long-Term Deferred Tax Liability

170

Long-Term Operating Lease Liabilities

1,082

Total Long-Term Liabilities

20,390

20,177

SHAREHOLDERS' EQUITY:

Ordinary Shares

74,823

Additional Paid-In Capital

71,962

71,228

Accumulated Deficit

(101,214)

(102,539)

Total Shareholders' Equity

45,571

43,512

Total Liabilities and Equity

70,829

68,379

SUPERCOM LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

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

Three months ended

March 31,

2026

March 31,

2025

Unaudited

REVENUES

7,612

7,048

COST OF REVENUES

(2,810)

(2,588)

GROSS PROFIT

4,802

4,460

OPERATING EXPENSES:

Research and Development

984

933

Selling and Marketing

992

678

General and Administrative

1,556

1,594

Other Expense, Net

Total Operating Expenses

3,575

3,245

OPERATING PROFIT

1,227

1,215

FINANCIAL INCOME (EXPENSES), NET

(322)

3,010

PROFIT BEFORE INCOME TAX

905

4,225

INCOME TAX BENEFIT

420

NET INCOME FOR THE PERIOD

1,325

4,225

Net Income Per Share

0.24

1.20

SUPERCOM LTD.

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

(U.S. dollars in thousands)

Three months ended

March 31,

2026

March 31,

2025

Unaudited

GAAP Gross Profit

4,802

4,460

Amortization of Intangible Assets

Stock Based Compensation

Non-GAAP Gross Profit

4,897

4,548

GAAP Operating Profit

1,227

1,215

Amortization of Intangible Assets

615

588

Foreign Currency Loss

880

200

Stock Based Compensation

340

182

Other One-Time Expenses

Non-GAAP Operating Profit

3,105

2,225

GAAP Net Profit

1,325

4,225

Amortization of Intangible Assets

615

588

Stock Based Compensation

340

182

Income Tax Benefit

(420)

Foreign Currency Loss

880

200

Other One-Time Expenses

Non-GAAP Net Profit

2,783

5,235

Non-GAAP EPS

0.51

1.48

Net Profit for the Period

1,325

4,225

Financial Income (Expenses), Net

322

(3,010)

Income Tax Benefit

(420)

Depreciation and Amortization

849

889

Stock Based Compensation

340

182

Foreign Currency Loss

880

200

Other One-Time Expenses

EBITDA *

3,339

2,526

* 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.

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SOURCE SuperCom