SuperCom Ltd.

Second-quarter revenue increased 13.3% year over year to $8.1 million versus $7.1 million in Q2 2025. Gross profit rose 16% to $4.9 million, and gross margin expanded about 90 basis points to 60%. Operating income was $900 thousand versus $1.1 million in the prior-year period, while GAAP net income was roughly $1.1 million, similar to last year. Non-GAAP net income was $2.9 million versus $300 thousand a year ago, EBITDA increased 55.6% to $4 million, GAAP EPS was approximately $0.20, and non-GAAP EPS was $0.52. For the balance sheet, cash and cash equivalents were about $7.4 million at June 30, 2026, net debt was under $10 million, and the company raised about $7.5 million gross in early July through a registered direct offering. Management did not provide formal next-quarter or full-year financial guidance on the call, but said deployments and revenue recognition can be uneven due to customer ordering cycles, especially in Europe, and that the U.S. recurring revenue base continues to grow as contracts deploy.

CEO Ordan Trabelsi framed the quarter as another record period and emphasized that SuperCom is seeing operating leverage as programs mature and the recurring revenue base expands. He highlighted the company’s strategy of growing both in existing markets and new markets, and said the business is supported by a stronger balance sheet and improving operational efficiency. His tone was upbeat and confident, repeatedly pointing to record results, strong technology validation, and a broad pipeline in Europe and the U.S.

The CFO commentary was delivered by management through detailed financial remarks rather than a separate CFO speaker. They cited 13.3% revenue growth to $8.1 million, gross profit of $4.9 million, 60% gross margin, EBITDA of $4 million, and GAAP net income of roughly $1.1 million. On capital structure, management said net debt has fallen from close to $35 million to under $10 million, long-term debt carries a blended interest rate of about 6%, and no cash payments are due until the end of 2028. Cash was about $7.4 million at June 30, 2026, and the company added about $7.5 million gross after quarter-end to support working capital and deployments.

Analysts focused on whether U.S. ARR growth could accelerate as deployments scale, what was happening in Romania, and what is driving gross margin strength. Management said U.S. ARR growth has accelerated from about 180% in the prior quarter to 290% now, but noted that growth rates will naturally moderate as the base gets larger; they also said U.S. projects have grown from smaller county deployments to roughly 100 to 250 units. On Romania, management said the customer remains active, that election-related timing slowed ordering, and that the decline there masked roughly 40% underlying revenue growth in 2025 for the rest of the business. On margins, management said higher U.S. mix, in-sourcing of European logistics/support, and maturing contracts are all helping gross margin, with AI-based automation also contributing.