SuperCom (SPCB) Q1 2026 earnings summary

Executive summary

• Achieved record gross profit, operating income, and EBITDA in Q1 2026, reflecting strong execution and scalability of the recurring revenue model.

• Expanded in Europe with two new national contracts, including a $17 million contract from Sweden's Ministry of Justice.

• U.S. electronic monitoring technology ARR run rate grew over 180% year-over-year as of May 2026, driven by rapid deployment and customer expansion.

Financial highlights

• Q1 2026 revenue increased 8% year-over-year to $7.6 million; gross profit up 8% to $4.8 million, with gross margin above 63%.

• Operating income reached $1.23 million, a 10-year record; GAAP net income surged to $1.33 million from $0.1 million, excluding prior year extraordinary gains.

• Non-GAAP net income rose 155% to $2.78 million; EBITDA up 32% to $3.34 million, both 10-year records.

• GAAP EPS was $0.24; non-GAAP EPS was $0.51.

• Cash and cash equivalents increased by $11 million; book value of equity rose to $45.6 million.

Outlook and guidance

• U.S. market expected to surpass Europe in revenue contribution over time, given the larger addressable market ($1.8 billion vs. $300 million by 2028).

• Active pipeline of large European national projects, including upcoming bids in Italy and England, with improved positioning due to stronger balance sheet and references.