SuperCom (50S) AI Stock Analysis

SuperCom

(Frankfurt:50S)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Recurring revenue growthRapid growth in recurring electronic-monitoring revenue indicates stronger customer adoption and expanding contracted activity. This model can improve revenue visibility as deployments mature, while scale across more states and contracts supports durable market presence and operating leverage.

Negative Factors

Persistent negative cash flowNegative operating and free cash flow indicate that reported profitability has not yet converted consistently into internally generated cash. Continued cash usage can increase reliance on external funding and constrain flexibility to finance deployments, working capital, and future expansion.

SuperCom (50S) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 63.18M
Dividend Yield: ―
Average Volume (3M): 2,000
Price to Earnings (P/E): 62.9
Beta (1Y): 0.82
Revenue Growth: >-0.01%
EPS Growth: -56.69%
Country: Germany
Employees: 133
Sector: Industrials
Sector Strength: 63
Industry: Security & Protection Services

SuperCom Business Overview & Revenue Model

Company Description

SuperCom Ltd., an Israeli company founded in Tel Aviv-Yafo in 1988, delivers a diverse range of digital identity, Internet of Things (IoT) and connectivity, and cybersecurity solutions. Serving governments and both private and public sector entities...

SuperCom Earnings Call Summary

Earnings Call Date:Aug 12, 2026(Q2-2026)|% Change Since:-3.90%|Next Earnings Date:May 26, 2021

Earnings Call SentimentPositive

The call conveyed strong operational momentum and multiple record financial metrics (revenue +13.3%, gross profit +16%, EBITDA +55.6%, US ARR +~290%) alongside meaningful balance‑sheet improvements (net debt cut from ~$35M to < $10M, $7.5M equity raise). Operational enhancements (in‑house support, centralized hubs, AI, U.S. cloud model) and a growing pipeline (Sweden national program, 20+ national European wins, >45 U.S. contracts) underpin scalable, recurring revenue growth. Short‑term challenges include Israeli FX headwinds (≈17% shekel move) that reduced operating income, cash deployed for strategic growth (cash down to $7.4M), revenue timing/ lumpy nature of large European contracts (Romania example), and remaining procurement competition/uncertainty for very large opportunities. On balance, highlights substantially outweigh lowlights and indicate positive momentum and positioning for further scale.

Positive Updates

Record Financial Performance

Revenue increased 13.3% year-over-year to $8.1M (Q2 2026 vs Q2 2025). Gross profit rose 16% to $4.9M and gross margin expanded ~90 basis points to 60%. EBITDA grew 55.6% to $4.0M (highest quarterly EBITDA in >10 years). GAAP net income was roughly $1.1M (flat YoY), non-GAAP net income increased to $2.9M from $0.3M, GAAP EPS ≈ $0.20 and non-GAAP EPS $0.52.

Negative Updates

Operating Income Impacted by FX Headwinds

Operating income declined to $0.9M from $1.1M year‑over‑year, largely due to Israeli foreign currency headwinds driven by an approximately 17% year‑over‑year increase in the average shekel‑to‑dollar exchange rate, which pressured Israeli operations.

Company Guidance

Management guided continued execution of its growth and diversification strategy—expecting continued scaling in the U.S. and Europe, increasing operating leverage as programs mature, and further margin expansion from centralization and AI-driven efficiencies—and supported that outlook with many metrics: Q2 2026 revenue +13.3% to $8.1M, gross profit +16% to $4.9M, gross margin ~60% (≈+90 bps), EBITDA +55.6% to $4.0M, GAAP EPS ≈$0.20 and non‑GAAP EPS $0.52, non‑GAAP net income $2.9M (vs $0.3M prior); balance‑sheet improvements of cash ~$7.4M (6/30/26), net debt reduced from ≈$35M to < $10M, blended long‑term debt rate ~6% with no cash payments until end‑2028, ~$7.5M raised in July, and book equity ≈$48M (+28% Y/Y); product and pipeline scale including >20 European national wins, >45 U.S. contracts since mid‑2024, presence in 22 U.S. states (multi‑county in 12), 19 new states/18 service‑provider partnerships, US EM ARR growth ~290% July 2025–July 2026, EM revenue 4‑yr CAGR ≈30% and EBITDA 4‑yr CAGR ≈47%, plus large opportunities such as Sweden ($17M base case to $75M published budget, up to ~6,000 offenders) and prior Romania programs (~15,000 units).

SuperCom Risk Analysis

SuperCom disclosed 38 risk factors in its most recent earnings report. SuperCom reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

1 New Risk

1.The COVID-19 pandemic is adversely impacting our global economy, which could adversely impact other parts of our business, including our ability to access capital markets, if and when required. Additional factors could exacerbate such negative consequences and/or cause other and potentially materially adverse effects.Q4, 2020

SuperCom Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

DE:50S against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BKYI	44Neutral	$5.49M	-0.66	-53.82%	―	-0.79%	67.82%
KSCP	42Neutral	$11.04M	-0.14	-152.20%	―	88.02%	63.33%
GFAI	40Underperform	$5.66M	-0.51	-23.20%	―	-4.57%	21.93%
SUGP	37Underperform	$3.85M	-0.43	-21.40%	―	-13.97%	-130.91%

* Industrials Sector Average

Performance Comparison

DE:50S and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:50S	SuperCom Ltd.	8.86	-0.18	-1.99%
BKYI	Bio-Key International	2.70	-4.25	-61.18%
GFAI	Guardforce Ai Co., Ltd.	0.18	-0.67	-79.05%
KSCP	Knightscope Inc Class A	0.47	-3.87	-89.24%
SUGP	SU Group Holdings Ltd	1.60	-172.40	-99.08%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

SuperCom AI Stock Analysis