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SuperCom
(NASDAQ:SPCB)
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Rating:56Neutral
Price Target:
$11.00
▲(2.71% Upside)
Action:Reiterated
Date:07/10/26
The score is mainly held back by weak financial quality due to persistent negative operating and free cash flow despite improved profitability and a stronger balance sheet. Technicals are moderately supportive with price above key moving averages and neutral momentum. Valuation is a headwind given the high P/E and lack of dividend yield.
Positive Factors
Revenue growth and profitability turnaround
Material top-line expansion and a swing to positive operating profit and net income in 2025 indicate the company’s solutions are gaining traction. Sustained revenue growth and demonstrated ability to reach profitability support long-term cash generation potential if execution remains consistent.
Negative Factors
Persistent negative operating & free cash flow
Consistent negative operating and free cash flow erode financial flexibility and increase reliance on external funding. Even with accounting profits, the lack of sustained cash conversion raises earnings‑quality concerns and creates ongoing refinancing or dilution risk for capital needs.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth and profitability turnaround
Material top-line expansion and a swing to positive operating profit and net income in 2025 indicate the company’s solutions are gaining traction. Sustained revenue growth and demonstrated ability to reach profitability support long-term cash generation potential if execution remains consistent.
Read all positive factors
SuperCom (SPCB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$67.83M
Dividend YieldN/A
Average Volume (3M)74.93K
Price to Earnings (P/E)38.4
Beta (1Y)1.57
Revenue Growth2.26%
EPS Growth-86.02%
CountryUS
Employees133
SectorIndustrials
Sector Strength72
IndustrySecurity & Protection Services
Share Statistics
EPS (TTM)0.28
Shares Outstanding6,280,452
10 Day Avg. Volume157,083
30 Day Avg. Volume74,931
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)0.95
Price to Sales (P/S)1.48
P/FCF Ratio-4.74
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$18.00Price Target Upside68.07% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.39
Revenue Forecast (FY)$30.51M
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 entiti...
How the Company Makes Money
SuperCom makes money by selling and supporting electronic monitoring and digital identity solutions, primarily through contracts (often with government agencies or program operators) that combine hardware, software, and ongoing services. Revenue i...
SuperCom Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q2-2026)
| Next Earnings Date:Nov 12, 2026
Earnings Call Sentiment Positive
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.
Read all updates
Q2-2026 Updates
Positive
Negative
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.
Read all positive updates
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 Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
70
Positive
Cash Flow
28
Negative
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 27.90M | 27.64M | 26.57M | 17.65M | 12.27M |
| Gross Profit | 15.39M | 13.38M | 10.22M | 6.39M | 6.20M |
| EBITDA | 7.98M | 5.46M | 1.47M | -3.29M | -4.26M |
| Net Income | 3.75M | 661.00K | -4.02M | -7.46M | -10.14M |
Balance Sheet | |||||
| Total Assets | 68.38M | 45.92M | 44.75M | 42.04M | 42.12M |
| Cash, Cash Equivalents and Short-Term Investments | 12.25M | 3.54M | 5.21M | 4.04M | 3.54M |
| Total Debt | 20.58M | 30.73M | 35.35M | 34.16M | 31.75M |
| Total Liabilities | 24.87M | 34.23M | 39.94M | 38.91M | 37.73M |
| Stockholders Equity | 43.51M | 11.70M | 4.82M | 3.13M | 4.39M |
Cash Flow | |||||
| Free Cash Flow | -8.69M | -4.64M | -5.73M | -6.79M | -11.10M |
| Operating Cash Flow | -7.80M | -1.29M | -2.37M | -4.65M | -9.41M |
| Investing Cash Flow | -5.44M | -3.35M | -3.37M | -2.19M | -1.64M |
| Financing Cash Flow | 19.59M | 2.60M | 6.80M | 6.74M | 11.70M |
SuperCom Technical Analysis
Negative
10.71
Price Trends
10.92
Negative
10.21
Positive
9.63
Positive
Market Momentum
-0.03
Negative
48.78
Neutral
29.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPCB, the sentiment is Negative. The current price of 10.71 is below the 20-day moving average (MA) of 10.77, below the 50-day MA of 10.92, and above the 200-day MA of 9.63, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 48.78 is Neutral, neither overbought nor oversold. The STOCH value of 29.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SPCB.
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 0 New Risks
SuperCom Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $67.83M | 38.39 | 2.03% | ― | 2.26% | -86.02% | |
52 Neutral | $4.24M | -0.59 | -57.42% | ― | 4.37% | 73.29% | |
46 Neutral | $30.22M | -0.43 | -143.53% | ― | 25.86% | 68.12% | |
45 Neutral | $3.49M | -1.44 | -17.78% | ― | 5.89% | -209.52% | |
44 Neutral | $11.20M | -0.96 | -19.46% | ― | -3.07% | 31.46% | |
42 Neutral | $9.44M | -1.81 | -42.75% | ― | -40.12% | -9.90% |
* Industrials Sector Average
SPCB
SuperCom
10.75
0.29
2.77%
BKYI
BIO-key International
3.76
-4.16
-52.53%
VRME
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0.70
-0.23
-24.73%
GFAI
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0.35
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-71.40%
KSCP
Knightscope Inc Class A
1.48
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-75.13%
SUGP
SU Group Holdings Ltd
2.04
-28.46
-93.31%
SuperCom Corporate Events
SuperCom Raises $7.5 Million in July Registered Direct Share Offering
Jul 15, 2026
SuperCom Ltd., a Tel Aviv‑based Nasdaq‑listed provider of e‑Government, IoT and cybersecurity solutions, specializes in traditional and digital identity systems for governments and public and private organizations. Its proprietar...
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.