SuperCom Ltd. Stock Price: Quote, Forecast, Splits & News (SPCB)

Perplexity Finance

SPCB

SuperCom Ltd.

SPCB

NASDAQ

Market Closed

Saturday, May 24, 2025

$8.69

-$0.29

3.23%

At close: May 23, 4:00:01 PM EDT

$8.70

+$0.01

0.12%

After hours: 6:47:46 PM EDT

Change

-$0.29

3.23%

Financial Profile

Prev Close

$8.98

Market Cap

$38.66M

Day Range

$8.26 - $9.08

Open

$8.85

P/E Ratio

11.1

52W Range

$2.55 - $18.95

24H Volume

$1.52M

Dividend Yield

0.00%

EPS

0.78

Earnings

Report Date

May 14, 2025

Rev Estimate

—

Avg 1d Change

5.08%

Report Period

Q1 2025

EPS Estimate

—

Implied Move 1d

—

Transcript

13m 38s

For a reconciliation of this non GAAP financial measure to net loss, a comparable GAAP financial measure, please see the reconciliation table located in SuperCom's earnings press release. That accompanies this call. Reconciliations for other non GAAP financial measures and comparable GAAP financial financial measures. Are available there as well. The content of this call contains time sensitive information that is accurate only of today. 05/14/2025. Except as required by law, SuperCom disclaims any obligation to publicly update or revise any information to reflect events or circumstances that occur after this call. It is now my pleasure to turn the call over to SuperCom's President and CEO. [indiscernible] Thank you, operator. And good morning, everyone. And thank you for joining us today. Earlier this morning, we released our financial results for the first quarter ended March 31, 2025.

14m 37s

You can find a copy of the press release in the Investor Relations section of our website at supercom.com.

14m 43s

Today, I'll provide an overview of our first quarter performance, including financial highlights followed by the Q and A session. But first, provide a high level overview of our business and strategy. We're pleased to report a strong start to 2025 building on our record breaking success in 2024, with even more milestone achievements this quarter. However, we are working with numerous governments around the world on making big changes the way they help protect their communities. This takes time. And thus our outlook is long term. With many multiyear government contracts running in unison, reviewing one specific quarter, or a small few may not suffice to understand the long term progress of our business. I'll try to give a high level view for you to understand our goals, our progress, and what levers to track to understand that progress going forward.

15m 34s

At SuperComm, our mission is to revolutionize public safety through cutting edge electronic monitoring technology, and data driven solutions. For over three decades, we have partnered with dozens of national governments across the globe to deliver secure, scalable, and innovative platforms that enhance security for their country. Our focus in recent years has shifted more and more towards solutions to criminal justice and offender electronic monitoring technology with ankle bracelets. Our strategy is centered around three pillars. One, innovative technology. We've invested over $40,000,000 in our technology platforms. And our proprietary solutions consistently outperform in competitive tenders. Particularly in Europe, where we've had a win rate of approximately 65%. Our platform supports critical programs such as GPS tracking, house arrest, and violence protection. Recently, we have also integrated AI driven analytics to enhance predictive insights and client outcomes in our system. Second pillar is expanding our global presence. Our global presence is significant and expanding rapidly. With more and more geographies adopting our electronic monitors and technology. Our strategic focus electronic monitoring market where we see growing demand and where the market is is projected to reach around $2,300,000,000 by 2028. Estimates show that The US and Europe account for roughly 95% of this market.

16m 59s

And our third pillar is delivering outstanding service. Our reputation as a trusted partner grows with each new deployment. Some of our government customers have been with us for more than twenty years. Often starting with a single program and expanding into multiple solutions over time. Since 2018, we've secured over 70 multiyear government prod across multiple regions. In the past year, we've experienced accelerated expansion. Whereby we added more than 20 new contracts across North America. Alongside five strategic partnerships with leading regional service providers. We continue to amplify our technological leadership with significant R and D investments leading to the launch of advanced solutions like PureProtect, also branded as Pure Shield and Pure One, These offerings are already making headway in various markets, including The US, and our pivotal and SuperCom expansion. ShearProtect or PureShield is a life saving domestic violence monitoring solution, providing preventive measures to families suffering from domestic violence or stalking, thereby increasing their safety. Pier one is an all in one GPS tracking ankle bracelet monitoring solution, integrating comprehensive monitoring capabilities into a single device. Like many of our products, it offers top notch features, placing it above the competition in most metrics. Such as battery life, weight, and other tracking and security features.

18m 23s

Our tethered ankle bracelet technology, together with our cloud based software enabled peer security product line has been particularly effective in continuously monitoring offenders and managing real time information. The real time advantage is a game changer, empowering authorities with actionable insights and timely interventions to mitigate potential risks and enhance public safety. Our technology is not just enabling better outcomes, it's actively redefining industry standards. We consistently displace long term incumbents, such as a twenty four year incumbent EM provider in Sweden, and the nearly twenty year incumbent EM provider in Israel. Both which we displaced. And in both cases, our technology edge agility, and innovation prove decisive in the competitive tenders. We've also helped governments establish their first ever national electronic monitoring program, as seen in countries such as Romania. Where we're supporting a program for up to 15,000 simultaneously monitored individuals, and Croatia, where we were selected to lead the country's first step into modern electronic supervision. These wins underscore the adaptability of our platform and the growing demand for comprehensive EM solutions. Around the world. Our continued investment in product innovation is driving measurable market expansion. The successful adoption of Pure Protect and Tier one has expanded our addressable market.

19m 44s

Supporting deeper penetration into existing geographies and entry into new ones particularly in The US and Europe. We've also reinforced the operational infrastructure and enhance our go to market approach. Our sales team with industry veterans, has played a key role in securing wins and building our pipeline. In the fourth quarter, together with Electro Security, our partner, we secured a multiyear national contract with the Israel Prison Service to deploy our Pure Security Suite. The program encompasses all offender monitoring nationwide. This one follows a rigorous competitive process and replaced a provider that's health the contract for nearly two decades, underscoring our technological advantage and proven execution capability.

20m 29s

As of today, over 1,200 individuals are actively monitored under this program. With that number continuing to grow as the rollout progresses. More broadly, we continue to gain momentum in competitive tenders across Europe and The US. Often displacing incumbents. Our strong track record and reliable delivery remain core to our growth. We view every new deployment as a start of a long term relationship. By planting seeds in multiple regions and consistently delivering value we've seen customers expand their engagement with us over time. Often growing into multiple growing projects that span over years. In Europe, strategic execution continues to drive long term growth. Over the past few years, we've secured over the past years, we've secured over 15 national electronic monitoring programs in Europe, through competitive tenders, including large scale domestic violence initiatives. Aligned with regional public safety priorities. Notably, in Romania, we were awarded the largest industry award of 2022. An over $33,000,000 program covering up to 15,000 individuals simultaneously. This project remains active and demonstrates the scalability of our Pure Security platform. Another great example of our long term expansion strategy, which reflects the strength of our reputation, is Sweden. Since our initial award from the Ministry of Justice in 02/2019, we've been selected again and again by Swedish government agencies.

21m 59s

Including the Swedish Police Authority and Juvenile Justice System. This ongoing trust reflects our consistent delivery and the high level of with our technology and support. We also expanded in Finland with a national deployment of our domestic violence solution and recently launched our third national project in Latvia, awarded via formal tender. To support the state police with offender compliance and victim protection. In parallel, we continue to actively run programs in other European countries such as Denmark and Bulgaria. And continue to receive follow on orders from existing European partners. These follow ons highlight the reliability of technology and the strength of our relationships. And as governments increasingly adopt proactive monitoring policies, we believe our proven model positions us well for sustained success. In the region. While Europe maintains an important remains an important growth driver, The U. S. Market presents an even greater long term opportunity. Projected to grow to six times the size of the European market in coming years. With the launch of PURE-one and our domestic violence solutions, we believe SuperCom is well positioned to unlock substantial growth, potential. In this untapped market. From the research that shows 2,300,000,000.0 total market size expected in 2028 The U. S. Market is six times that.

23m 25s

Of Europe in the estimates. And also, although SuperCom already does business in multiple US states, we're actively focused on further expanding our presence in The US market. Our subsidiary, LCA continues to grow in California through new contracts and rebids, while our nationwide expansion strategy has gained significant traction. Since mid twenty twenty four, we've secured over 20 new electronic monitoring contracts. Entered eight new US states, and formed five new strategic partnerships with regional service providers to accelerate market access. Through a mix of direct government contracts and partner led deployments, we've established a presence in key new states including Utah, Kentucky, Alabama, South Dakota, Arizona, Ohio, and others. We are also expanding into Wisconsin, Minnesota and Michigan through the Midwest focused partnership. And launched a GPS modernized initiative in Canada with a longstanding provider. These wins demonstrate our growing ability to displace legacy vendors and deliver recurring revenue from both urban and rural jurisdictions. Our strong technology capabilities, coupled with our proactive go to market approach continue to differentiate SuperCom and competitive bids. Our expanded sales organization has driven a sharp increase in demos, pilot programs and qualified opportunities resulting in the growing U. Pipeline Of Recurring Revenue Opportunities.

24m 45s

With Sustained Demand And Good Execution, We Believe We Are Well Positioned To Further Scale Our US footprint throughout 2025 and beyond. One of our advantages in The US is a centralized system on the cloud. Centralized inventory management, and a twenty four seven service and support center, which supports active projects nationwide. This structure significantly improves operational efficiency and lowers costs compared to Europe. Where projects typically require country specific servers, local language adaptations, and decentralized support. As a result, we're able to launch programs in US more quickly, and more cost effectively. Whether at small scale or statewide, giving us greater flexibility and faster time to revenue. Along with higher potential margins. Despite macroeconomic uncertainties and ongoing global challenges, including those in Israel, SuperCom solutions are becoming increasingly relevant. We continue to see growth driven by high recidivism rates escalating cost of incarceration, and a surge in the of victim protection solutions worldwide. The company's pure security technology solutions have been designed to address these trends, offering an effective way for institutions to enforce home confinement ease prison overcrowding, and lower cost significantly. For example, monitoring an offender on home confinement or GPS, about 10 to $35 a day.

26m 7s

Which is 90% less than the hundred to a hundred $40 a day cost at a correctional facility in The US. Moreover, home confinement helps reduce repeat offenses, highlighting its effectiveness in helping offenders improve their lives and communities. In parallel, we continue to evaluate strategic acquisition opportunities in The U. S. Market, Acquiring established local service providers can expand our our footprint, unleash synergies, and enhance vertical integration. A proven example is our 2016 acquisition of LCA, in California, which has since generated over $35,000,000 in project wins in California alone. I'll now turn to the financials. Considering this quarter Q1 in comparison to the same period last year. Pleased to report another strong quarter of financial performance. Reflecting the maturing of our project portfolio disciplined execution, and operating leverage across geographies. Note that since our projects are mostly multiyear contracts, this can create variability on a quarterly basis, so trends are best understood in the context of a broader multi year period. Look at the quarterly performance. Of Q1 twenty twenty five. Revenue increased to $7,050,000 up from 6,850,000.00 driven by new contract wins and continued expansion across both U. S. And European programs as well as EMEA.

27m 36s

Gross profit increased to $4,460,000,000 a 17.8% increase from $3,790,000 in the same period last year. Gross margin improved significantly to 63.6% compared to 55.3% This significant margin expansion of nearly 8% reflects improved scale and favorable revenue mix from projects. Operating income doubled year over year, to $1,220,000 up from $720,000 with operating margin improving to 17.3% compared to 10.5%. Last year. We also reported GAAP net income of $4,230,000 a substantial improvement from $800,000 last year. This growth was driven by contributions from new projects and improved revenue mix, ongoing operational efficiencies and the positive impact of strategic deals with our debt holders. Which together further strengthen our capital structure. On a non GAAP basis, net income totaled $5,240,000 up from $1,350,000,000 last year. EBITDA for the quarter reached $2,500,000 compared with $2,000,000 last year, representing a 25% year over year increase and make marketing our eleventh consecutive order of positive EBITDA and further demonstrating the strength and consistency of our core operations. GAAP earnings per share was $1.2 compared to $0.8 in Q1 of twenty four. Adjusted for reverse split. And non GAAP EPS was $1.5 compared to 1.4 in Q1 of twenty four again adjusted for reverse split.

29m 16s

From the balance sheet perspective, we ended the quarter with stronger position Long term loans were reduced to $24,200,000 down from $29,700,000 at the year end. And from $34,300,000 in Q1 last year. Reflecting a total reduction of over $10,000,000 year over year. This is achieved through a debt to equity exchanges at premiums of up to over 100%. Above market price, and an amendment to our senior debt agreement. Which extended maturity to December 28, December 2028 and lowered our interest rate. Following the reduction of debt, we raised over $60,000,000 of gross proceeds including $6,000,000 through a registered direct offering and $10,200,000 for warrant exercises leading to solid cash position. With cash and cash equivalents in increasing to $17,100,000 up from 3,200,000.0 at year end 2024. Working capital increased to $38,900,000 compared to $22,600,000 at year end as well. In closing, I want to thank our global team for their continued commitment and execution. We've entered 2025 with strong momentum. Delivering record financial results, accelerating expansion in key markets, and further validating the effectiveness of our solutions. As governments seek smarter, more humane, and more cost effective alternatives to incarceration, SuperCom is uniquely positioned to lead Our proven technology, growing contract base, and scalable infrastructure provide us a strong foundation to continue our growth across The US, Europe, and beyond.

30m 51s

And to better understand our progress, we encourage stakeholders to track several key indicators. Our win rate in competitive tenders, expansion into new geographies, and new projects from existing customers. Another important thing to remember is project mix. This quarter gross margin reached 63.3% reflecting reflecting the increasing contribution of high margin programs. While not yet are set steady states, it offers a blimp into our long term profitability potential where projects tend to achieve higher margins over time as they mature and grow. We remain focused on advancing public safety, creating long term value, and building on the consistent progress we've achieved in recent years. With that, I'll turn the call over to the operator. To open for questions. Operator?

31m 40s

Thank you. Ladies you. Please pick up your handset before entering your request and speaking on the call. If your question has been answered and you wish to withdraw your question, One moment, please. The first question today is coming from Matthew Galinko from Maxim Group.

32m 18s

Matthew, your line is live.

32m 20s

Hi, thanks for taking my questions.

32m 24s

Orhan, congrats on the great results in the first quarter.

32m 29s

Can you maybe touch on where your R and focus is at this point? I know you've kind of led with you know, your win rate and how your tech technology is just better than most of the competitors who go into tenders against. But how do you maintain that going forward? And what sorts of work do you do to make sure that you have an edge?

32m 53s

Okay, great question. One of the things that we've been adding on recently is the integration of AI. That we started describing, and we hope to improve on that. We're improving the quality of our GPS solutions in terms of reliability. Many of our competitors can't track effectively. Underground in subways or within cities because of interference. We use GNSS and we integrate many other location protocols as well, and that helps us track within cities within buildings, underground and so we continue to improve on that. We also improve the battery life for our solutions, battery life bracelets can reach up to one year as many of our competitors only have one or two days battery life. So we continue to add on to our existing solutions while adding additional features and also looking at new solutions which will help complement the needs of our customer and customers. Reliability is also an important factor which we continue to improve on from every additional project. That we deploy.

33m 57s

Got it.

33m 58s

I guess the follow-up maybe can you give us a big picture view of how The US opportunity is shaping up and how important is it that your continuing to add new speech? And geographies within The U. S. Market? Does a win in Utah sort of support additional wins in Utah? Or how does that kind of expansion work? Great question. And it's important to understand the difference in The US market and Europe. In Europe, we entered through national projects RFPs which are sometimes more defined in size It's much more competitive. There's a longer competitive process where they evaluate you more in-depth on a national scale. And the size of the project is pretty much well defined at the beginning. They they typically add or many times we see them add additional projects, because they like our relationship and what we're doing as we've seen in Sweden or in Finland. But the size is better defined In The US, it's much more fragmented. We see county level, state level, there's resellers and value added providers, there's federal level projects. And what we're doing in The US at this point is mainly trying plant seeds. We're trying to plant more seeds in more locations and more states and more providers and they see our technology and they like it and they choose to add it to their portfolio or to select us, that could start with hundred units and grow to 500 units, thousand units and more.

35m 32s

It depends which opportunity and which geography you're at. So for us to grow over the long term it's important for us to plant our seed into and our presence into as many places as possible. And together over time as we've seen the user technology, they like it more and more and they expand and expand and expand. Our goal over long term is to have, you know, larger projects and more numerous projects in many regions throughout the world and that's by expanding our presence and by deploying our technologies and our capabilities into every region we've expanded in and by deploying effectively, that's how you grow the programs. Thank you. Plus in The States, to add on to that, in The States and the counties, it's a small niche industry. Everyone talks to one another so at the beginning in Europe was harder for us we have projects that were Lithuania and Latvia which were hundreds of thousands of dollars, then we grew to projects of $7,000,000 in Sweden. Or over $33,000,000 in in Romania. Similarly, in The U. We're still on the smaller size and as the get to see us and understand how well we perform, begin to larger projects and it expands from word-of-mouth and the organic expansion becomes much more significant as we continue to deliver good results and good technology.

36m 58s

Okay.

37m

Thank you. And once again, Once again, that's star one Once again, that is star one on your phone at this time. If you wish to ask a question. It's star one we did have a follow-up coming from Matthew.

37m 44s

Matthew Galinko your line is live.

37m 47s

Thanks for taking my follow-up question. You know, I know we're I think, watching the fall on election in Romania to see you know, sort of what the outcome is there. And I'm curious, how you're looking at that Is there Is there a risk if it goes in one direction or the other? Or there would you say the program is fairly popular across, you know, the political spectrum in that country. [indiscernible] repeat the last part? Just had a hard time hearing. You're asking about Romania and the political atmosphere there, but what was the second part of that? Question?

38m 29s

Yeah. I guess is [indiscernible] is your sense that there's support for the program regardless of the outcome of the election, and is it a fairly popular program in the the country.

38m 43s

Yes, the program has actually been doing very well. And, the deployment has, even has been faster than even expected. It's supported by the major parties. It's mandated by the EU. So the EU directive to implement domestic violence there. They pretty much have to do it The situation with the elections could impact various additional programs but the existing program is going very well and [indiscernible] is very much needed. And we we see that from the from the responses from the customer.

39m 24s

Got it. Thank you.

39m 30s

Thank you. On your phone. If you wish to ask a question at this time.

39m 47s

And the next question is coming from Dan Shaitz And Dan is a private investor. Dan, your line is live.

39m 59s

Dan, your line is live. Please go ahead with your question.

40m 3s

Hey, can you guys hear me now? Sorry, I think I was on mute.

40m 7s

Yes, go ahead.

40m 8s

Okay, great.

40m 9s

Hey, Orden, wonderful quarter. It's wonderful to see the gross profit and the margins increase and trending up. A couple of questions for you. One more strategically strategically with The U. S. Market, What percentage of opportunities do you see SuperCom working through a reseller or service provider versus doing direct. Is it almost all through another agency, service provider or reseller? It's a great question. And in The US, it's different from Europe, because in Europe there's different languages, different laws, and it's you have to adapt to each location. We typically have a local provider that helps us partnership to handle all different projects with the different environments in The US, we're very familiar with the environment there. It's all in English. And the the programs run pretty similar, and they all run on the same cloud software. We we typically bring in the value added resellers when the customer is looking for also services like human services, not just technology services, like someone to meet the fender to put the bracelet on the fender to check up on them. And what we see in The US is some of the larger counties and agencies and states, have their own officers who run these programs, but the smaller ones it's hard for them to understand the different technologies, to stay up to date.

41m 46s

They outsource everything. Also the also the services, the human services and also technology services. And then you see these value added resellers aggregate them That's what we saw in LCA, did that acquisition 2016. We got very close, understood the market from a very detailed matter on the different counties and the needs that's how we adopted our solution for The U. S. And we've been expanding also directly with many of our contracts and also we're now starting to expand also through Valletta resellers. But it's valuable to be able to offer so many different solutions whether it's GPS or alcohol monitoring or or house arrest or domestic violence and services if needed and so forth. That's how we open up the market and we are able to access a much bigger opportunity.

42m 39s

Great.

42m 40s

And if I can infer from your comments on this call and from previous call that you you guys are looking at possibly strategic acquisitions of additional service providers or some part potential partnerships with other service providers that exist here in The US. Yes, yes. We've done the deal in 2016, and we're very well for us, and we work we know the industry well and we work with just recently, in the last year we signed up five new service providers as we work with them and we see their operations, sometimes it's a great opportunity for acquisition. Because then they give you presence, physical presence of personnel in that location. And you know, nothing like having persons there that are close to the government customers that know of the RFPs coming out that have good relationships and are able to offering a more comprehensive solutions. Also, synergies are almost immediate because all these companies, they procure their hardware and software technologies from vendors in the field. There's roughly 10 players in the field. And we would upon acquisition be able to replace to put our technology. So very nice synergies there off the bat. And also on top line, now that they have our technology which usually scores very well in the competitive tenders as you see, they're able to go to existing customers, offer more capabilities better technology and also grow their top line.

44m 9s

If the price is right, let's say, then there's interesting opportunities there and we look at that closely and over time we'll see if it makes sense to do that again like we did in 2016. Great. And then I guess extending on that a little bit, sounds like you're recently did we raised some additional capital. We're sitting on a significant amount of cash on the books now that's then we've reduced our long term debt but that's now they're actually not too far apart from each other. You looked at the long term debt versus the cash on the books, we're only slightly negative. We're Previously, we had significant net debt But what are do you have specific plans? We also receive I just want say we're also receiving we're receiving interest on the cash, which is close to the level of interest that we're paying on the loans.

45m 7s

Which is Okay.

45m 8s

It's also interesting. Yeah. But Kinda offsetting each other.

45m 12s

Yes. Yes. Okay.

45m 14s

Close. Do you have specific plans with that cash for use? I'm assuming you do. Otherwise, you wouldn't have done that. Yeah, plans with the cash balance is to allow for increases of working capital when we need them. Projects like Romania and others that we're looking to and hopefully win over time Once you win it you have a very short period of time to deploy tons and tons of units. And so it's hard in that process to go secure a loan or some other type of financing. You don't know exactly where the stock's going to be there. At the time so and where the market's gonna be. So it's good to have that as we continue to see more and more demand from customers around the world. And we also the potential acquisitions is also something we'd be able to implement more effectively with this cash balance. So it's both, but in general for strategic growth of the business and to be able to respond to various needs and changes as our relationships in the market evolve.

46m 23s

Okay.

46m 24s

Makes perfect sense.

46m 26s

One last thing. What is the if we're fully diluted, what's the fully diluted share count? As of the end of the first quarter? Mr. Chirik, I don't have the exact number down at the quarter, but we we filed recently f filed recently filing to register older warrants that we issued. And that had the count roughly 4.5 Four point five million? Okay. Yeah.

46m 58s

At the at the date of the filing. Yeah. Just recently. Okay. That's I'll check that out. That's all I have.

47m 7s

Okay.

47m 8s

Thank you.

47m 11s

Thank you.

47m 17s

That's star one And there were no other questions. From the lines at this time.

47m 33s

At this time, will pass the call back to Ardan for closing remarks.

47m 37s

Just want to update one thing on the last question. Asked about the the fully diluted. The 4.5 that we filed is more or less the outstanding, the exact numbers on filing. On top of that, there's additional 700,000 a little over 700,000 of warrants. And they're at $13.50. Exercise price. The diluted will be the combination of both. Thank you.

48m 12s

Thank you. And there were no other questions at this time, or [indiscernible] And Ordon, any further closing comments?

48m 29s

Yes. So that's it. I want to thank all of for participating in today's call and for your interest in SuperCom. Please contact us direct if you have any additional questions. We look forward to sharing our progress with you. On our next conference call. Filings, and press releases. Thank you. And have a good day.

48m 49s

Thank you. This does conclude today's conference. You may disconnect at this time, and have a wonderful day. Thank you for your participation.

49m 48s

Goodbye.

Key Insights

SuperCom reported strong Q1 2025 results, with revenue rising to $7.05M (from $6.85M YoY), gross profit up 17.8% to $4.46M, and gross margin improving to 63.6% (from 55.3% YoY); GAAP net income was $4.23M (vs. $0.8M YoY), and EBITDA reached $2.5M, marking the eleventh consecutive quarter of positive EBITDA.
The company continues to expand globally, securing over 20 new contracts in North America since mid-2024, entering eight new US states, and forming five new strategic partnerships; it also maintains a strong presence in Europe with over 15 national electronic monitoring programs.
SuperCom’s technology edge is highlighted by a 65% win rate in European tenders, ongoing integration of AI-driven analytics, and product innovations like PureProtect and PureOne, which offer superior battery life and tracking capabilities compared to competitors.
The balance sheet strengthened significantly: long-term loans reduced to $24.2M (from $34.3M YoY), cash and equivalents increased to $17.1M (from $3.2M at 2024 year-end), and working capital rose to $38.9M; recent capital raises and debt restructuring further improved financial flexibility.
Looking forward, SuperCom is focused on scaling its US footprint, pursuing strategic acquisitions, and leveraging its strong cash position for growth opportunities; management expects continued margin expansion as high-margin projects mature and emphasizes tracking win rates, geographic expansion, and project mix as key performance indicators.

Recent Transcripts

Q1 2025 delivered record financial results with strong revenue, margin, and cash improvements.

Supercom achieved record revenue, GAAP profitability, and expanded in the US and Europe in 2024.

First GAAP profit since 2015

Income Statement

Revenue

	2020	2021	2022	2023	2024
Revenue	$12M	$12M	$18M	$27M	$28M
Cost of Revenue	$6.2M	$6.1M	$11M	$16M	$14M
Gross Profit	$5.6M	$6.2M	$6.4M	$10M	$13M
Gross Profit %	47%	51%	36%	38%	48%
R&D Expenses	$2.4M	$2.8M	$3.4M	$3.1M	$3.4M

2020

2021

2022

2023

2024

Revenue

$12M

$18M

$27M

$28M

Cost of Revenue

$6.2M

$6.1M

$11M

$16M

$14M

Gross Profit

$5.6M

$6.2M

$6.4M

$10M

$13M

Gross Profit %

47%

51%

36%

38%

48%

R&D Expenses

$2.4M

$2.8M

$3.4M

$3.1M

$3.4M

Cash Flow

Net Income

	2020	2021	2022	2023	2024
Net Income	-$7.9M	-$10M	-$7.5M	-$4M	$661K
Dep. & Amort.	$2.7M	$2.2M	$2.7M	$3M	$3.4M
Def. Tax	$384K	$2K	-$299K	$0	-$418K
Stock Comp.	$211K	$31K	$138K	$243K	$805K
Chg. in WC	-$1.6M	-$1.5M	-$26K	-$1.5M	-$5.6M

2020

2021

2022

2023

2024

Net Income

-$7.9M

-$10M

-$7.5M

-$4M

$661K

Dep. & Amort.

$2.7M

$2.2M

$2.7M

$3M

$3.4M

Def. Tax

$384K

$2K

-$299K

-$418K

Stock Comp.

$211K

$31K

$138K

$243K

$805K

Chg. in WC

-$1.6M

-$1.5M

-$26K

-$1.5M

-$5.6M

Balance Sheet

Cash

	2020	2021	2022	2023	2024
Cash	$3.1M	$3.5M	$4M	$5.2M	$3.2M
ST Investments	$0	$0	$0	$0	$388K
Cash & ST Inv.	$3.1M	$3.5M	$4M	$5.2M	$3.5M
Receivables	$12M	$11M	$11M	$13M	$13M
Inventory	$2.4M	$3.6M	$3.4M	$2.5M	$3.6M

2020

2021

2022

2023

2024

Cash

$3.1M

$3.5M

$4M

$5.2M

$3.2M

ST Investments

$388K

Cash & ST Inv.

$3.1M

$3.5M

$4M

$5.2M

$3.5M

Receivables

$12M

$11M

$13M

Inventory

$2.4M

$3.6M

$3.4M

$2.5M

$3.6M

Go Deeper

Financial information provided by Financial Modeling Prep. Options data provided by Unusual Whales. Live transcripts provided by Quartr. Reported revenue and EPS data from Earnings powered by FinChat.io. All data is provided for informational purposes only, and is not intended for trading purposes or financial, investment, tax, legal, accounting or other advice.

Market Cap: $39M
IPO Date: 2/17/05
CEO: Mr. Ordan Trabelsi
Fulltime Employees: 124
Sector: Industrials
Industry: Security & Protection Services
Country: IL
Exchange: NASDAQ Capital Market

Peers

SSC Security Services Corp.

$1.75

SECUF

Plymouth Rock Technologies Inc.

$0.04

PLRTF

11.03%

Blue Line Protection Group, Inc.

$0.06

BLPG

Guardforce AI Co., Limited

$1.14

GFAI

3.39%

Iveda Solutions, Inc.

$2.06

IVDA

0.48%

Bridger Aerospace Group Holdings, Inc. Common Stock

$1.32

BAER

8.33%

Guardforce AI Co., Limited

Watchlist

Earnings

Report Date

May 14, 2025

Rev Estimate

—

Avg 1d Change

5.08%

Report Period

Q1 2025

EPS Estimate

—

Implied Move 1d

—

Transcript

13m 38s

14m 37s

You can find a copy of the press release in the Investor Relations section of our website at supercom.com.

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32m 18s

Matthew, your line is live.

32m 20s

Hi, thanks for taking my questions.

32m 24s

Orhan, congrats on the great results in the first quarter.

32m 29s

32m 53s

33m 57s

Got it.

33m 58s

35m 32s

36m 58s

Okay.

37m

37m 44s

Matthew Galinko your line is live.

37m 47s

38m 29s

Yeah. I guess is [indiscernible] is your sense that there's support for the program regardless of the outcome of the election, and is it a fairly popular program in the the country.

38m 43s

39m 24s

Got it. Thank you.

39m 30s

Thank you. On your phone. If you wish to ask a question at this time.

39m 47s

And the next question is coming from Dan Shaitz And Dan is a private investor. Dan, your line is live.

39m 59s

Dan, your line is live. Please go ahead with your question.

40m 3s

Hey, can you guys hear me now? Sorry, I think I was on mute.

40m 7s

Yes, go ahead.

40m 8s

Okay, great.

40m 9s

41m 46s

42m 39s

Great.

42m 40s

44m 9s

45m 7s

Which is Okay.

45m 8s

It's also interesting. Yeah. But Kinda offsetting each other.

45m 12s

Yes. Yes. Okay.

45m 14s

46m 23s

Okay.

46m 24s

Makes perfect sense.

46m 26s

46m 58s

At the at the date of the filing. Yeah. Just recently. Okay. That's I'll check that out. That's all I have.

47m 7s

Okay.

47m 8s

Thank you.

47m 11s

Thank you.

47m 17s

That's star one And there were no other questions. From the lines at this time.

47m 33s

At this time, will pass the call back to Ardan for closing remarks.

47m 37s

48m 12s

Thank you. And there were no other questions at this time, or [indiscernible] And Ordon, any further closing comments?

48m 29s

48m 49s

Thank you. This does conclude today's conference. You may disconnect at this time, and have a wonderful day. Thank you for your participation.

49m 48s

Goodbye.

Key Insights

SuperCom reported strong Q1 2025 results, with revenue rising to $7.05M (from $6.85M YoY), gross profit up 17.8% to $4.46M, and gross margin improving to 63.6% (from 55.3% YoY); GAAP net income was $4.23M (vs. $0.8M YoY), and EBITDA reached $2.5M, marking the eleventh consecutive quarter of positive EBITDA.
The company continues to expand globally, securing over 20 new contracts in North America since mid-2024, entering eight new US states, and forming five new strategic partnerships; it also maintains a strong presence in Europe with over 15 national electronic monitoring programs.
SuperCom’s technology edge is highlighted by a 65% win rate in European tenders, ongoing integration of AI-driven analytics, and product innovations like PureProtect and PureOne, which offer superior battery life and tracking capabilities compared to competitors.
The balance sheet strengthened significantly: long-term loans reduced to $24.2M (from $34.3M YoY), cash and equivalents increased to $17.1M (from $3.2M at 2024 year-end), and working capital rose to $38.9M; recent capital raises and debt restructuring further improved financial flexibility.
Looking forward, SuperCom is focused on scaling its US footprint, pursuing strategic acquisitions, and leveraging its strong cash position for growth opportunities; management expects continued margin expansion as high-margin projects mature and emphasizes tracking win rates, geographic expansion, and project mix as key performance indicators.

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