SuperCom Reports Record Net Income of $6 Million and Non-GAAP EPS of $2.17 for the First Nine Months of 2025

Financial Performance - For the third quarter ended September 30, 2025, SuperCom reported a revenue of $6.2 million, a decrease from $6.9 million in the same period of 2024 [5] - Gross profit increased to $3.8 million from $3.2 million, resulting in a gross margin expansion to 60.8% from 45.6% [5] - Operating income surged to $0.64 million from $0.03 million, and net income increased to $0.7 million from a net loss of $0.4 million [5] - Non-GAAP net income surged 450% to $1.9 million from $0.3 million, with a non-GAAP net margin of 30.5% compared to 5% [5] - EBITDA doubled to $2.2 million from $1.1 million, with an EBITDA margin more than doubling to 34.6% from 15.6% [5] Year-to-Date Performance - For the first nine months of 2025, SuperCom reported revenues of $20.4 million, a slight decrease from $21.3 million in the same period of 2024 [21] - Gross profit increased to $12.5 million from $10.7 million, leading to a gross margin of 61.0%, up from 50.1% [21] - Operating profit rose to $2.96 million from $1.13 million, and net profit reached $6.0 million, up from $2.5 million [21] - Non-GAAP net income increased to $9.3 million from $4.9 million, with a non-GAAP net margin of 45.7%, compared to 23.2% [21] Business Highlights - Since mid-2024, SuperCom has secured over 30 new electronic monitoring contracts across the U.S., entering 12 new states and forming 14 new partnerships with regional service providers [5][6] - Recent contract wins include a $7 million national electronic monitoring contract in Germany, marking a strategic expansion into Europe's largest economy [7] - The company has continued to expand its footprint with new contracts in Tennessee, Wisconsin, and Alabama, including multiple competitive wins against incumbent providers [6][8] Management Commentary - The President and CEO of SuperCom expressed excitement over record results and improvements in profitability, highlighting a 140% year-over-year increase in net income and strong execution of their business model [6] - The company aims to continue its international expansion strategy, with over 15 national project wins and a high RFP win rate in Europe, while also focusing on scaling operations and expanding recurring revenue [8]