SuperCom (NasdaqCM:SPCB) Conference January 22, 2026 08:30 AM ET Company ParticipantsOrdan Trabelsi - President and CEOConference Call ParticipantsBrendan McCarthy - Equity Research AnalystBrendan McCarthyOkay, welcome everybody, and thank you for joining us today at the Sidoti Microcap Conference. My name is Brendan McCarthy. I'm an analyst here with Sidoti, and I'm very pleased to welcome SuperCom, ticker SPCB. Joining us from the company is CEO Ordan Trabelsi. And before I hand it over, a quick reminder ...

Follow-on deployment in the state builds on initial PureOne rollout announced in December TEL AVIV, Israel, Jan. 22, 2026 /PRNewswire/ -- SuperCom (NASDAQ: SPCB), a global provider of secure solutions for the e-Government, IoT, and Cybersecurity sectors, today announced its third electronic monitoring (EM) contract in North Carolina. The new agreement builds on SuperCom's recent momentum in the state, following its initial PureOne rollout with a local service provider announced in December 2025 and the stat ...

Expansion builds on SuperCom's initial entry into Wisconsin several months ago and demonstrates its ability to scale within established regions TEL AVIV, Israel, Jan. 13, 2026 /PRNewswire/ -- SuperCom (NASDAQ: SPCB), a global provider of secure solutions for the e-Government, IoT, and Cybersecurity sectors, today announced the expansion of its footprint into an additional county in the state of Wisconsin. The new electronic monitoring (EM) project marks SuperCom's second county-level project in the state, ...

Core Viewpoint - SuperCom (SPCB) has secured a new electronic monitoring contract with a juvenile probation agency in Texas, marking its second contract win in the state and demonstrating its ability to scale quickly in new U.S. markets [1] Group 1: Contract Details - The new contract involves replacing the incumbent electronic monitoring technology provider and modernizing offender supervision capabilities [1] - SuperCom will deploy its GPS tracking solution and proprietary monitoring platform to enhance juvenile supervision programs, focusing on reliability, accuracy, and operational efficiency [1] - The contract operates on a simple recurring revenue model based on active daily units [1]

Core Insights - SuperCom has secured a national electronic monitoring contract in a Western European country, marking the expansion of its domestic violence solutions to a tenth nation globally [1][5] - The contract will support multiple national government agencies and includes various public safety programs such as domestic violence monitoring and GPS tracking of offenders [2][3] Group 1: Contract Details - The contract is structured as a multi-year framework with a minimum term of three years, allowing for expansion as additional monitoring needs arise [4] - The project is expected to launch in the first quarter of 2026 and involves the purchase of monitoring devices along with ongoing monthly service fees [4] Group 2: Company Performance and Strategy - SuperCom's President and CEO highlighted that this contract validates the company's technology and execution capabilities, reinforcing its position in public safety [5] - The company has achieved over 16 national electronic monitoring project wins across Europe and more than 35 new contract wins in the U.S. since mid-2024, indicating strong international momentum [5] Group 3: Technology and Solutions - SuperCom's PureSecurity Suite is a comprehensive electronic monitoring platform featuring advanced GPS and RF tracking, anti-tamper mechanisms, and multi-factor biometrics [6] - The modular architecture of the PureSecurity Suite supports various use cases, including domestic violence prevention and community supervision [6] Group 4: Financial Performance - SuperCom reported a net income of $6.0 million and over 35% EBITDA margins through the first nine months of 2025, positioning the company for long-term growth and expansion [5]

Core Insights - SuperCom has secured a new electronic monitoring service provider contract in North Carolina, marking its first deployment in the state and expanding its reach to 15 U.S. states since mid-2024 [1][2][3] - The contract establishes SuperCom as the primary EM technology partner, transitioning existing GPS tracking infrastructure to its proprietary technology and software platform, following a recurring revenue model based on active daily units [2][3] - The decision by the North Carolina service provider reflects a competitive evaluation and ongoing demand for SuperCom's advanced EM solutions among regional providers [3] Company Expansion - SuperCom's entry into North Carolina is part of its U.S. expansion strategy, with 16 service provider contracts signed and 15 new states entered since mid-2024 [4] - The company emphasizes its ability to displace incumbent vendors and establish a durable presence in new geographies [4] Financial Performance - SuperCom reported a record net income of $6 million and an EBITDA margin exceeding 35% for the first nine months of 2025, indicating strong operational and financial health to support continued expansion [4]

Core Insights - SuperCom has secured its first state-level Department of Corrections contract in the U.S. through a strategic partnership, marking a significant milestone in its expansion strategy [1][2][3] - The contract involves deploying GPS-based electronic monitoring technology as part of Arizona's statewide Behavioral Health services, with implementation set to begin in January 2026 [1][2] - The partnership with a leading Arizona-based service provider was crucial in winning the competitive RFP process, allowing SuperCom to displace the incumbent vendor [3][4] Company Strategy - The achievement reflects the maturation of SuperCom's strategy, which began with regional partners and smaller county agencies, now progressing to state-level contracts [4] - The company aims to leverage this contract as a reference point for pursuing similar opportunities across the U.S. [3][4] - SuperCom's experience in Europe, where it transitioned from smaller projects to larger contracts, is seen as a parallel to its U.S. strategy [4] Financial Performance - SuperCom reported a record net income of $6 million and gross margins above 60% for the first nine months of the year, indicating a strong financial foundation to support larger state-level programs [4]

Accessibility StatementSkip Navigation The decision by the Missouri provider follows a competitive evaluation of available solutions and reflects continued demand for SuperCom's advanced EM solutions among regional providers seeking to modernize and enhance their programs. "Our entry into Missouri represents another strategic step forward in scaling our U.S. footprint through trusted service providers," said Ordan Trabelsi, President and CEO of SuperCom. "It is another example of how our technology is outpe ...

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $6.2 million, down from $6.9 million in Q3 2024, reflecting a decrease due to revenue mix and timing of contract launches [13][16] - Gross profit increased to $3.8 million, with gross margins expanding to 60.8%, up from 45.6% a year ago [14] - Operating income surged to $640,000, up from around $30,000 in Q3 2024, with operating margins increasing to 10.3% [15] - EBITDA doubled to $2.2 million from $1.1 million in Q3 2024, reflecting EBITDA margins of 34.6% [15] - Net income reached $700,000, a turnaround from a net loss of $400,000 in the prior year [15] - Non-GAAP net income surged to $1.9 million, up from $350,000 last year [15] Business Line Data and Key Metrics Changes - The company secured over 30 new electronic monitoring contracts in the US since mid-2024, including entry into 12 new states [4][5] - The US presence was reinforced by a five-year reentry services contract valued at up to $2.5 million through its subsidiary, LCA [6] - The company expanded its international presence with a $7 million electronic monitoring project in Germany, marking a strategic foothold in Europe [7][8] Market Data and Key Metrics Changes - The electronic monitoring market is projected to reach $2.3 billion by 2028, with approximately 95% of that opportunity concentrated in the US and Europe [12] - The US market is estimated to be more than six times the size of the European market, making it a particularly attractive driver for long-term growth [12] Company Strategy and Development Direction - The company aims to address challenges in modern justice systems, including high recidivism rates and prison overcrowding, by providing scalable alternatives to incarceration [11] - The company continues to evaluate strategic acquisition opportunities in the US market to enhance market penetration and operational synergies [10] - The operational advantage in the US includes a cloud-based centralized platform, enabling faster and more cost-effective program launches [10][40] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of continuous innovation and investment in R&D, with over $45 million invested in electronic monitoring solutions [11][12] - The company expects to see more consistency in revenues as the US market matures and recurring revenue becomes a larger portion of total revenues [32][46] - Management noted that the current margins reflect a favorable mix of projects and contracts, with expectations for long-term margin resilience and expansion [19] Other Important Information - The company reduced its net debt by nearly $25 million over the past two years through strategic debt-to-equity exchanges [17] - Working capital stood at $41.8 million as of September 30, 2025, up from $26.1 million a year ago [18] - Book value of equity tripled to $40.8 million, up from $13.3 million a year ago [18] Q&A Session Summary Question: Market opportunity in Germany - The company sees potential for expansion in Germany following a recent $7 million project win, with expectations for growth in scale and capabilities [24] Question: Repeatable opportunities with service providers in the US - The company has signed 14 service providers this year, with many replacing existing technologies with SuperCom's advanced solutions [25][26] Question: Debt position decline in Q3 - The company confirmed ongoing strategic debt-to-equity swaps to reduce debt balance [27] Question: Revenue breakdown by geography - The company noted that revenue volatility is influenced by the mix of projects in different stages, with the US market showing strong growth potential [30][31] Question: Contract lengths and renewal rates - US contracts typically span five to ten years, with a high likelihood of renewal once agencies are satisfied with the technology [33][34] Question: Accounts receivable buildup - The company clarified that the increase in accounts receivable is due to the timing of revenue recognition in long-term projects, not collection issues [49][50] Question: Buyout rumors - The company acknowledged interest from various firms but emphasized that any decision will prioritize shareholder value [54]

Accessibility StatementSkip Navigation 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 , Fin ...