SuperCom Achieves Record Revenue, Record EBITDA, Record Net Income and $3.66 Non-GAAP EPS for Full Year 2024

Rhea-AI Summary

SuperCom (NASDAQ: SPCB) reported record-breaking financial results for FY 2024, marking significant achievements across key metrics. Revenue increased 4% to $27.6 million, with gross margin expanding to 48.4%. The company achieved its first full-year GAAP profitability since 2015 with a net income of $661,000.

Q4 2024 showed revenue growth of 11.6% to $6.33 million, though it recorded a net loss of $1.86 million due to one-time items including $1.5 million in bad debt expense. The company's four-year transformation (2020-2024) demonstrated substantial growth, with revenue increasing 134% from $11.8 million in 2020.

Recent business highlights include securing over 20 new electronic monitoring contracts across the US, expanding into seven new states, and winning national contracts in Israel and European countries. SuperCom also reduced its outstanding debt by 32% and raised over $16 million in early 2025 through a Registered Direct Offering and warrant exercises.

Positive

• Record revenue of $27.6M in 2024, up 4% YoY
• First full-year GAAP profitability since 2015 with $661K net income
• Gross margin expansion to 48.4% from 38.5% YoY
• Secured 20+ new EM contracts and expanded to 7 new US states
• Won national contracts in Israel and European countries
• Reduced outstanding debt by 32%
• Raised $16M in new capital in early 2025

Negative

• Q4 2024 net loss of $1.86M
• $1.5M bad debt expense impacting Q4 results

Insights

Financial Analyst

SuperCom achieves 9-year profitability milestone with record revenues, dramatic margin expansion, and successful debt restructuring while securing multiple national contracts.

SuperCom's FY2024 results mark a transformative milestone with the company's first GAAP profitability in nearly a decade. Revenue increased 4% to a record $27.6 million, but the real story is in the dramatic margin expansion to 48.4% from 38.5% – driving gross profit up by 31% to $13.4 million.

The shift from a $4.0 million loss to $661,000 profit demonstrates significant operational improvements, while EBITDA grew 31% to $6.3 million, marking a 9-year record. The company has now achieved ten consecutive quarters of positive EBITDA, establishing a pattern of sustainable operational profitability.

Q4 results continue this momentum with 11.6% revenue growth to $6.33 million, despite $2 million in one-time items affecting bottom-line performance. The $1.5 million bad debt expense appears to be an isolated event rather than a systemic issue.

Looking at the four-year transformation reveals the scale of improvement: 134% revenue growth since 2020, 140% gross profit increase, and an $8 million turnaround in non-GAAP net income. These metrics reflect fundamental business strengthening rather than cosmetic improvements.

SuperCom's financial engineering deserves attention – reducing outstanding debt by 32% through premium-priced share issuances at $43.70 per share, followed by raising over $16 million in early 2025. This sequencing optimized the balance sheet while minimizing dilution, demonstrating sophisticated capital structure management.

Technology/Security Industry Expert

SuperCom's electronic monitoring technology gaining widespread adoption with 20+ new US contracts and multiple national implementations across Europe, validating its technical superiority.

SuperCom's strategic expansion across the electronic monitoring market demonstrates exceptional product-market fit and execution capabilities. The company secured over 20 new contracts since mid-2024 and expanded into seven previously untapped US states, including Ohio, Arizona, and New York, while strengthening positions in California and Kentucky.

Particularly notable is SuperCom's ability to displace incumbent providers, suggesting their PureSecurity suite offers technological or economic advantages compelling enough for agencies to switch providers – a significant hurdle in government procurement contexts.

The five-year national contract with the Israel Prison Service represents total market capture for electronic monitoring in that geography. Similarly, national domestic violence monitoring programs implemented in Latvia and another EU country in the second half of 2024 indicate growing government acceptance of SuperCom's technological approach to victim protection.

The consistent win rate across geographically diverse markets validates SuperCom's technology platform against international competition. Each national implementation serves as a case study for other potential government clients, creating a flywheel effect in the sales pipeline.

SuperCom's focus on domestic violence prevention technology appears particularly strategic, as this represents a growing application within the broader electronic monitoring market. With seven national domestic violence contracts secured in the EMEA region, the company is establishing leadership in this critical public safety subcategory.

The company's ability to execute this significant market expansion while simultaneously improving margins indicates efficient deployment capabilities and scalable technology architecture – critical success factors in government-focused security technology.

FY 2024: Record Revenues of $27.6 Million; Gross Margin 48.4%; Record EBITDA of $6.3 Million
Q4 2024: Revenues of $6.3 Million; EBITDA of $1.7 Million

TEL AVIV, Israel, April 28, 2025 /PRNewswire/ -- SuperCom (NASDAQ: SPCB), a global provider of secured solutions for the e-Government, IoT, and Cybersecurity sectors, today reported results for the twelve months and fourth quarter, ended December 31, 2024.

Financial Highlights for Twelve-Months Ended December 31, 2024 (Compared to the Prior Year Period)

• Revenue increased 4% to $27.6 million from $26.6 million, marking a 7-year-record and the fourth consecutive year of revenue growth.
• Gross profit increased 31% to $13.4 million from $10.2 million.
• Gross margin expanded to 48.4%, up from 38.5%.
• Net Income improved to a $661 thousand profit, compared to a ($4.0) million loss, reflecting SuperCom's first full-year GAAP profitability since 2015, marking a 9-year record.
• Non-GAAP Net Income increased 99% to $6.33 million from $3.19 million.
• EBITDA increased 31% to $6.3 million from $4.8 million, marking a 9-year-record.
• Non-GAAP EPS of $3.66 for the full year 2024.

Financial Highlights for Fourth Quarter 2024 Ended December 31, 2024 (Compared to the Fourth Quarter of 2023)

• Revenue increased 11.6% to $6.33 million from $5.67 million.
• Gross profit increased to $2.7 million from $2.35 million, with gross margin strengthening to 42.7%.
• Net Loss of ($1.86 million) compared to ($1.56 million), the Q4-2024 result was significantly impacted by approximately $2 million of one-time items including $1.5 million of bad debt expense.
• Non-GAAP Net Income of $1.39 million compared to $1.69 million.
• EBITDA reached $1.66 million compared to $1.09 million.
• Non-GAAP EPS $0.66 for the fourth quarter of 2024.

Four-Year Business & Financial Transformation (2020 to 2024)

Following the placement of a new management team and business strategy in 2021, SuperCom executed a transformation that drove substantial improvements across key financial and operational metrics over the four-year period, while navigating global challenges such as the COVID-19 pandemic, geopolitical conflicts, surging interest rates, supply chain disruptions, and volatile capital markets.

Metric	2024	2020
Revenue	$27.6 million	$11.8 million
Gross Profit	$13.4 million	$5.6 million
GAAP Net Income (Loss)	$661 thousand	($7.9 million)
Non-GAAP Net Income (Loss)	$6.33 million	($1.7 million)
EBITDA	$6.3 million	$2.8 million

Twelve-Months Ended December 31, 2024 (Compared to the Full Year 2020)

• Revenue increased by 134% to $27.6 million from $11.8 million.
• Gross profit increased by 140% to $13.4 from $5.6 million.
• GAAP net income improved to a profit of $661 thousand in 2024 from a loss of ($7.9 million) in 2020.
• Non-GAAP net income shifted to a $6.33 million profit from a ($1.7 million) loss, a turnaround of more than $8.0 million.
• EBITDA more than doubled, growing to $6.3 million from $2.8 million.

This four-year transformation underscores the success of SuperCom's strategic roadmap, technological innovation, and disciplined operational management, establishing a strong foundation for continued expansion.

Recent Business Highlights:

• Since mid-2024, SuperCom has secured more than 20 new electronic monitoring (EM) contracts across the United States, including entry into seven new states—Ohio, Arizona, Alabama, South Dakota, New York, West Virginia, and Maryland. The Company also expanded its footprint in key existing markets such as California and Kentucky, reflecting strong adoption of its advanced technologies, including domestic violence monitoring, and its ability to successfully displace incumbent providers.
• SuperCom established new partnerships across the nation to support its U.S. expansion, introducing its proprietary technologies, including those for domestic violence prevention and community supervision programs. These collaborations allow for efficient market penetration and extend the Company's presence in the U.S. public safety sector.
• SuperCom, together with partner company Electra Security, was awarded a five-year national electronic monitoring contract by the Israel Prison Service to cover the entire EM offender population in Israel. The project, currently active on offenders, utilizes advanced GPS and RF technologies from SuperCom's PureSecurity™ Suite and includes options for up to four additional years of extension.
• SuperCom launched national domestic violence electronic monitoring programs in Latvia and another EU country during the second half of 2024, both secured through formal competitive tenders. These wins further reinforce the Company's leadership position in Europe's public safety technology market.
• In early 2025, SuperCom secured a new national domestic violence monitoring project in the EMEA region, marking its seventh national DV contract in that geography. The program will utilize SuperCom's advanced PureTrack and PureShield technologies to support victim protection and offender compliance.
• The Company reduced its outstanding debt by 32%, since the end of 2023, through premium-priced share issuances, including a $4.37 million reduction at $43.70 per share, enhancing its ability to capitalize on growth opportunities.
• After the debt reduction, in early 2025, SuperCom strengthened its balance sheet by raising over $16 million in gross proceeds, including a $6.0 million Registered Direct Offering and approximately $10.2 million from warrant exercises.

Management Commentary:

"2024 was a breakthrough year for SuperCom, as we achieved record financial and operational milestones that demonstrate the success of the strategic transformation we initiated in 2021," commented Ordan Trabelsi, President and CEO of SuperCom. "We achieved record revenues of $27.6 million — a 134% increase over 2020 — together with record EBITDA and net income, and delivered our first full year of GAAP profitability in nearly a decade. Our gross margins expanded by nearly 10 percentage points year-over-year to 48.4%, and we maintained our streak of ten consecutive quarters of positive EBITDA. These results are a testament to the resilience of our business model and the dedication of our global team."

"Our growth strategy is already bearing fruits across multiple markets. In the U.S., we secured over 20 new contracts and expanded into seven new states, providing our PureOne and PureShield solutions to a growing number of agencies. In Europe, we reinforced our leadership position with new national domestic violence monitoring wins and expanded deployments. These milestones and other recent accomplishments, including a 32% reduction in our outstanding debt balance followed by over $16 million in capital raised, have strengthened our foundation for sustainable expansion," continued Ordan.

"As we look ahead to 2025 and beyond, we remain sharply focused on scaling our business, expanding our global reach, and continuing to deliver impactful solutions that enhance public safety, strengthen communities, and drive positive social change. With strong momentum, proven technology, and a diversified base of recurring revenues, we believe we are well-positioned to drive meaningful value," Ordan concluded.

Conference Call

The Company will hold a conference call on April 28, 2025, at 10:00 a.m. Eastern Time (7:00 a.m. Pacific time) Time / 5:00 p.m. IL time) to discuss the fourth quarter and year end 2024 results, followed by a question and answer session.

Conference Call Dial-In Information:

Date:                                  Monday, April 28, 2025
Time:                                 10:00 a.m. Eastern time (7:00 a.m. Pacific time)
U.S. toll-free:                     888-506-0062
Israel toll-free:                   1-809-423-853
International:                     973-528-0011
Access Code:                    SuperCom
Link:                                   https://www.webcaster4.com/Webcast/Page/2259/52340

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization.

About SuperCom 

Since 1988, SuperCom has been a global provider of traditional and digital identity solutions, providing advanced safety, identification and security solutions to governments and organizations, both private and public, throughout the world. Through its proprietary e-government platforms and innovative solutions for traditional and biometrics enrollment, personalization, issuance and border control services, SuperCom has inspired governments and national agencies to design and issue secure Multi-ID documents and robust digital identity solutions to its citizens and visitors. SuperCom offers a unique all-in-one field-proven RFID & mobile technology and product suite, accompanied by advanced complementary services for various industries including healthcare and homecare, security and safety, community public safety, law enforcement, electronic monitoring, and domestic violence prevention. For more information, visit www.supercom.com.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements preceded or followed by or that otherwise include the words "believes", "expects", "anticipates", "intends", "projects", "estimates", "plans", and similar expressions or future or conditional verbs such as "will", "should", "would", "may" and "could" are generally forward-looking in nature and not historical or current facts. These forward-looking statements are subject to risks and uncertainties that could cause our actual results to differ materially from the statements made. Examples of these statements include, but are not limited to, statements regarding business and economic trends, the levels of consumer, business and economic confidence generally, the adverse effects of these risks on our business or the market price of our ordinary shares, and other risks and uncertainties described in the forward looking statements and in the section captioned "Risk Factors" in our Annual Report on Form 20-F for the year ended December 31, 2024, filed with the U.S. Securities and Exchange Commission (the "SEC") on April 28, 2025 our reports on Form 6-K filed from time to time with the SEC and our other filings with the SEC. Except as required by law, we not undertake any obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this press release.

Results presented in this press release are based on management's estimated unaudited analysis of financial results for the presented periods. SuperCom's independent registered accounting firm has not audited the financial data discussed in this press release. During the course of SuperCom's quarter- and fiscal year-end closing procedures and review process, SuperCom may identify items that would require it to make adjustments, which may be material, to the information presented in this press release. As a result, the estimate financial results constitute forward-looking information and are subject to risks and uncertainties, including possible adjustments to such results.

Use of Non-GAAP Financial Information

In addition to disclosing financial results calculated in accordance with the generally accepted accounting principles in the United States ("GAAP"), this release also contains non-GAAP financial measures, which SuperCom believes are the principal indicators of the operating and financial performance of its business.

Management believes the non-GAAP financial measures provided are useful to investors' understanding and assessment of SuperCom's ongoing core operations and prospects for the future, as the charges eliminated are not part of the day-to-day business or reflective of the core operational activities of the company. Management uses these non-GAAP financial measures as a basis for strategic decisions, forecasting future results and evaluating the Company's current performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, or as a substitute for, or superior to, operating loss and or net income (loss) or any other performance measures derived in accordance with GAAP or as an alternative to net cash provided by operating activities or any other measures of our cash flows or liquidity.

Non-GAAP EPS is defined as earnings before amortization and other non-cash or one-time expenses divided by weighted average outstanding shares.

EBITDA is defined as earnings before interest, taxes, depreciation, amortization, and other non-cash or one-time expenses.

SuperCom Investor Relations:
ir@supercom.com

 

 

 

-Tables Follow-

 

SUPERCOM LTD.
CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
		As of December 31,
		2024		2023
		Audited		Audited
CURRENT ASSETS
Cash and cash equivalents		3,150		5,206
Restricted bank deposits		388		371
Trade receivable, net		12,767		13,357
Patents		5,283		5,283
Other accounts receivable and prepaid expenses		2,153		1,742
Inventories, net		2,521		2,503
Total current assets		26,262		28,462
LONG-TERM ASSETS
Deferred tax long term		919		501
Property and equipment, net		3,261		2,701
Other intangible assts, net		5,638		5,576
Other non-current assets		2,818		487
Goodwill		7,026		7,026
Total long-term assets		19,662		16,291
Total Assets		45,924		44,753

 

CURRENT LIABILITIES
Short-term credit			423		792
Trade payables			878		1,883
Employees and payroll accruals			1,165		1,015
Related parties			-		100
Accrued expenses and other liabilities			470		485
Short-term Operating lease liabilities			445		401
Deferred revenues ST			366		726
Total current liabilities			3,747		5,403
LONG-TERM LIABILITIES
Long-term loan			29,748		33,952
Deferred revenues			444		305
Deferred tax liability LT			170		170
Long-term Operating lease liabilities			118		108
Total long-term liabilities			30,480		34,535
SHAREHOLDERS' EQUITY:
Ordinary shares			29,238		9,094
Additional paid-in capital			88,746		102,670
Accumulated deficit			(106,287)		(106,948)
Total shareholders' equity			11,697		4,816
Total liabilities and equity			45,924		44,754

 

 

 

SUPERCOM LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except for EPS)
		Year ended December 31,
			2024	2023
		Audited		Audited
REVENUES			27,635	26,570
COST OF REVENUES			(14,251)	(16,347)
GROSS PROFIT			13,384	10,223
OPERATING EXPENSES:
Research and development			3,417	3,110
Selling and marketing			2,401	2,200
General and administrative			6,344	5,460
Other expense (income), net			1,999	2,812
Total operating expenses			14,161	13,582
OPERATING LOSS			(777)	(3,359)
FINANCIAL EXPENSES, NET			1,020	(663)
LOSS BEFORE INCOME TAX			243	(4,022)
INCOME TAX EXPENSE			418	-
NET INCOME (LOSS) FOR THE PERIOD			661	(4,022)
Earning Per Share			0.38	(12)

 

 

 

SUPERCOM LTD.
Reconciliation Table of GAAP to Non-GAAP Figures and EBITDA to Net Income
(U.S. dollars in thousands, except for EPS)
		Year ended December 31,
			2024		2023
		Unaudited			Unaudited
GAAP gross profit			13,384		10,223
Amortization of intangible assets			354		354
One-time inventory write-off			120		180
Stock-based compensation expenses			4		13
Non-GAAP gross profit			13,862		10,770
GAAP Operating Loss			(777)		(3,359)
Amortization of intangible assets			2,379		2,144
Stock-based compensation to employees & others			805		243
One-time inventory write-off			120		180
Foreign Currency Loss			720		1,247
One-time reorganization expenses			528		1,967
Allowance for doubtful debt in legacy business			1,540		1,457
Non-GAAP operating profit			5,315		3,849

 

GAAP net Profit			661		(4,022)
Amortization of intangible assets			2,379		2,114
Stock-based compensation to employees & others			805		243
One-time inventory write-off			120		180
Foreign Currency Loss			720		1,247
Income tax expense			(418)		-
One-time reorganization expenses			528		1,967
Allowance for doubtful debt in legacy business			1,540		1,457
Non-GAAP net Profit			6,335		3,186
Non-GAAP E.P.S			3.66		9.4
Net loss for the period			661		(4,022)
Income tax expense			(418)		-
Financial expenses (income), net			(1,020)		663
Depreciation and Amortization			3,386		3,104
One-time inventory write-off			120		180
Stock-based compensation to employees & others			805		243
Foreign Currency Loss			720		1,247
Allowance for doubtful debt in legacy business			1,540		1,457
One-time reorganization expenses			528		1,967
EBITDA *			6,322		4,839
* EBITDA is a non-GAAP financial measure generally defined as earnings before  interest, taxes, depreciation and amortization and other non-cash or one-time expenses .

 

 

 

SUPERCOM LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands)
		Three months ended December 31,
			2024	2023
		Unaudited		Unaudited
REVENUES			6,327	5,668
COST OF REVENUES			(3,626)	(3,320)
GROSS PROFIT			2,701	2,348
OPERATING EXPENSES:
Research and development			584	651
Selling and marketing			566	541
General and administrative			2,122	1,993
Other expense, net			1,339	1,614
Total operating expenses			4,611	4,799
OPERATING LOSS			(1,910)	(2,451)
FINANCIAL EXPENSES, NET			51	896
LOSS BEFORE INCOME TAX			(1,859)	(1,555)
INCOME TAX EXPENSE			-	-
NET LOSS FOR THE PERIOD			(1,859)	(1,555)

 

 

 

SUPERCOM LTD.
Reconciliation Table of GAAP to Non-GAAP Figures and EBITDA to net Income
(U.S. dollars in thousands, except for EPS)
		Three months ended
		December 31,
		2024			2023
		Unaudited			Unaudited
GAAP gross profit		2,701			2,348
Amortization of intangible assets		89			89
One-time inventory write-off		120			180
Stock-based compensation expenses		4			13
Non-GAAP gross profit		2,914			2,630
GAAP Operating Loss		(1,910)			(2,451)
Amortization of intangible assets		775			685
Stock-based compensation to employees & others		805			243
One-time inventory write-off		120			180
Foreign Currency Loss		208			238
One-time reorganization expenses		(201)			451
Allowance for doubtful debt in legacy business		1,540			1,457
Non-GAAP operating profit		1,337			803
GAAP net Loss		(1,859)			(1,555)
Amortization of intangible assets		775			685
Stock-based compensation to employees & others		805			243
One-time inventory write-off		120			180
Foreign Currency Loss		208			238
One-time reorganization expenses		(201)			451
Allowance for doubtful debt		1,540			1,457
Non-GAAP net Profit		1,388			1,699
Non-GAAP E.P.S		0.66			3
Net loss for the period		(1,859)			(1,555)
Financial expenses (income), net		(51)			(896)
Depreciation and Amortization		1,093			975
One-time inventory write-off		120			180
Stock-based compensation to employees & others		805			243
Foreign Currency Loss		208			238
Allowance for doubtful debt in legacy business		1,540			1,457
One-time reorganization expenses		(201)			451
EBITDA *		1,655			1,093
* EBITDA is a non-GAAP financial measure generally defined as earnings before interest, taxes, depreciation and amortization and other non-cash or one-time expenses.

                                                   

                                                    

Logo: https://mma.prnewswire.com/media/1717536/SuperCom_Logo.jpg

 

View original content:https://www.prnewswire.com/news-releases/supercom-achieves-record-revenue-record-ebitda-record-net-income-and-3-66-non-gaap-eps-for-full-year-2024--302439703.html

SOURCE SuperCom

FAQ

What were SuperCom's (SPCB) key financial achievements in FY 2024?

SuperCom achieved record revenue of $27.6M, 48.4% gross margin, EBITDA of $6.3M, and its first full-year GAAP profitability since 2015 with $661K net income.

How many new electronic monitoring contracts did SPCB secure in 2024?

SuperCom secured over 20 new electronic monitoring contracts across the United States, including expansion into seven new states.

What was SPCB's revenue growth from 2020 to 2024?

SuperCom's revenue grew 134% from $11.8 million in 2020 to $27.6 million in 2024.

How did SuperCom (SPCB) strengthen its financial position in early 2025?

SuperCom raised over $16 million through a $6.0M Registered Direct Offering and approximately $10.2M from warrant exercises.

What caused SPCB's Q4 2024 net loss?

The Q4 2024 net loss of $1.86M was primarily due to approximately $2M in one-time items, including $1.5M of bad debt expense.