SuperCom (SPCB) Q2 2026 earnings summary

Executive summary

• Achieved record quarterly revenue of $8.1 million in Q2 2026, up 13.3% year-over-year, and record EBITDA of $4.0 million, up 58% year-over-year, marking the ninth record quarter in the last ten since the 2021 turnaround.

• Growth driven by operational efficiency, technology investment, and expansion into new and existing markets, with significant wins in the U.S. and Europe.

• H1 2026 revenue reached $15.7 million, with record EBITDA of $7.3 million.

• Non-GAAP net income for Q2 2026 was $2.9 million, up 32% year-over-year; non-GAAP EPS was $0.52.

• U.S. electronic monitoring recurring revenues increased approximately 171% year-over-year.

Financial highlights

• Q2 2026 gross profit was $4.9 million with a 60.0% gross margin; H1 2026 gross profit was $9.7 million with a 61.7% margin.

• Operating income was $900,000, down from $1.1 million due to Israeli currency headwinds.

• GAAP net income for Q2 2026 was $1.11 million; GAAP EPS was $0.20.

• H1 2026 GAAP net income (excluding $4.1 million extraordinary gain in H1 2025) increased 50% to $2.4 million; GAAP EPS was $0.44.

• EBITDA up 55.6% to $4 million, highest in over a decade.

Outlook and guidance

• Continued focus on scaling business, executing pipeline, and expanding in U.S., Europe, and new regions.

• Anticipates further margin expansion and recurring revenue growth as programs mature and new contracts ramp.

• Sees robust pipeline in Europe (notably Italy and England) and U.S., with additional opportunities in APAC and LATAM.

• Management highlights strong operating leverage, scalability, and a growing recurring revenue base.

• Strategy focuses on expanding in key markets, with significant new contracts in Europe and the U.S.