Israel's SuperCom Q3 revenue rises on growth in US electronic monitoring contracts
SPCB•SuperCom's third-quarter revenue rose 21% year over year to $7.49 million, while adjusted EPS was $0.30. U.S. electronic monitoring recurring revenue grew 255%.
1. Revenue and earnings
SuperCom reported third-quarter revenue of $7.49 million, up 21% year over year and above the $6.95 million consensus estimate. Adjusted EPS was $0.30, compared with a consensus estimate of a $0.03 loss; net income was $54,000.
2. Monitoring growth
The company said rapid growth in U.S. electronic monitoring contracts and recurring revenue drove results. It secured more than 50 new electronic monitoring contracts and entered 21 new U.S. states since mid-2024. U.S. electronic monitoring recurring revenue grew 255% in the quarter.
3. Outlook and costs
SuperCom expects continued electronic monitoring expansion in the U.S. and Europe and said it is well positioned to scale recurring revenue globally. It cited higher sales and marketing expenses, driven by headcount expansion, as a factor affecting profitability, and sees an opportunity from its SafeGenie cybersecurity product suite.
