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DATE

Thursday, Aug. 13, 2026 at 10:00 a.m. ET

CALL PARTICIPANTS

• President and Chief Executive Officer - Ordan Trabelsi

TAKEAWAYS

• Revenue -- $8.1 million, an increase of 13.3% compared with $7.1 million in the second quarter of 2025.
• Gross Profit -- $4.9 million, representing 16% growth over the prior year period.
• Gross Margin -- 60%, reflecting a expansion of approximately 90 basis points due to project maturation and a higher mix of centralized US cloud-based revenue.
• EBITDA -- $4 million, an increase of 55.6% from $2.5 million in the prior year period, marking the highest quarterly level in over a decade.
• Non-GAAP Net Income -- $2.9 million, compared with $300,000 in the second quarter of 2025.
• GAAP Net Income -- $1.1 million, sustained at levels similar to the prior year despite foreign currency headwinds.
• Non-GAAP EPS -- $0.52 per share, compared to $0.05 in the second quarter of 2025.
• US Electronic Monitoring ARR -- 290% growth from July 2025 to July 2026, indicating an acceleration in recurring revenue billings.
• Sweden National Project Value -- $17 million to $75 million, with the higher end reflecting expansion potential for up to 6,000 active offenders and additional mobile solutions.
• Net Debt -- Under $10 million, reduced from approximately $35 million over the past several years.
• Debt Structure -- 6% blended interest rate with no cash payments due until the end of 2028.
• Registered Direct Offering -- $7.5 million in gross proceeds raised in July 2026 at $10.25 per share to support working capital and new contract deployments.
• Book Value of Equity -- $48 million as of June 30, 2026, an increase of 28% from $37 million one year ago.
• US Contract Momentum -- 45 new electronic monitoring contracts secured since mid-2024, expanding the company's presence into 19 new states.
• California Contract Value -- $35 million in new contracts secured in the state since the acquisition of Leaders in Community Alternatives.
• Operating Income -- $900,000, compared to $1.1 million in the prior year, primarily impacted by a 17% year-over-year increase in the average Israeli shekel to US dollar exchange rate.
• LCA Service Contract -- $2.5 million value for a new five-year reentry services project.
• US State Presence -- 22 states, with operations in 12 states already expanded to include multiple counties.
• European EM Win Rate -- 100% across the last three programs bid on, maintaining a presence in all five Nordic countries.
• Cash and Cash Equivalents -- $7.4 million as of June 30, 2026, prior to the impact of the July equity offering.
• Compound Annual Growth Rates -- 30% for electronic monitoring revenue and 47% for EBITDA during the four-year period ending Dec. 31, 2025.
• Romania Growth Normalization -- 40% underlying revenue growth in 2025 when excluding the temporary impact of ordering moderations in Romania.

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RISKS

• Trabelsi stated, "During the second quarter, our Israel operations experienced foreign currency headwinds from approximately 17% year over year increases in the average Israeli currency to the US currency exchange rate," noting the impact on operating income.
• Trabelsi noted that in the US market, "full deployment can take 6 months or longer" following a contract win, leading to an inherent lag between signing and revenue recognition.
• Trabelsi acknowledged that in Europe, "ordering activity temporarily moderated amid political uncertainty" in Romania, causing fluctuations in regional revenue.

SUMMARY

Management reported record performance for the second quarter, highlighted by double-digit revenue growth and significantly improved profitability metrics. The company stated that the business model is benefiting from increased operating leverage as electronic monitoring programs in Europe and the United States reach maturity. SuperCom indicated a focus on transitioning from smaller county-level deployments to large-scale national projects, supported by a strengthened balance sheet and recent capital infusions. The strategy involves both geographic expansion into the APAC and LatAm regions and the introduction of artificial intelligence to optimize operational efficiency and reduce labor requirements.

• CEO Trabelsi noted that the US expansion is moving faster than the previous European cycle, stating, "We are building our references and moving up in project sizes similar to the pattern we experienced when we started our European expansion. Only this time, it is faster."
• The company is actively recruiting sales directors for the APAC and LatAm regions, with an initial focus on establishing a presence in Australia and New Zealand.
• Trabelsi highlighted that AI is already delivering results, stating, "AI has already helped accelerate development introduce new automation, and improve efficiency across deployment and customer support activities."
• The Sweden national project represents a significant scale-up from previous efforts, with the potential to reach 6,000 active offenders, roughly sixfold the count from the initial 2019 launch.
• Management identified Italy and England as primary upcoming opportunities in Europe, noting the England program alone is valued at over £150 million.
• The US operating model offers higher margin potential than the European model due to a unified infrastructure, one shared language, and a common cloud-based operating environment.
• The company has moved more IT and customer support responsibilities in-house, establishing 24-hour support capabilities to reduce reliance on subcontractors and improve service efficiency.

INDUSTRY GLOSSARY

• ASC 606: The current accounting standard for revenue recognition from contracts with customers.
• Electronic Monitoring (EM): The use of technology, such as GPS or radio frequency, to track and monitor the location and compliance of offenders in the justice system.
• LCA (Leaders in Community Alternatives): A wholly owned subsidiary of SuperCom providing reentry and rehabilitation services in California.
• MAGNA: SuperCom's proprietary platform for national ID registries, e-passports, and biometric visas.
• Pure All: A mobile device solution for electronic monitoring.
• Pure One: An all-in-one GPS tracking solution for offender monitoring.
• PureRF: A suite of RFID technology used for asset tracking and personnel management.
• PureSecurity: The company's core technology platform for electronic monitoring and public safety.
• PureTag: A radio frequency bracelet used for monitoring individuals under house arrest.

Full Conference Call Transcript

Operator: Ladies and gentlemen, good morning, and welcome to SuperCom's Second Quarter 26 financial results and Corporate Update Conference Call. At this time, all participants are in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by 0. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then 1 on your telephone keypad. To withdraw your question, please press star then 2. Participants of this call are advised that the audio of this conference call is being broadcast live over the Internet. Joining me from SuperCom's leadership team is Ordan Trabelsi, Supercom's president and chief executive officer.

I would like to remind you that during this call, Supercom management may be making forward looking statements, including statements that address Supercom's expectations for future performance or operational results. Forward looking statements involve risks, uncertainties, and other factors that may cause Supercom's actual results to differ materially from those statements. For more information about these risks, uncertainties, and factors, please refer to the risk factors described in SuperCom's most recently filed periodic reports on form 20 f and form 6-K and Supercom's press release that accompanies this call, particularly the cautionary statements in it. Today's conference call includes EBITDA, a non GAAP financial measure that Supercom believes can be useful in evaluating its performance.

You should not consider this additional information in isolation or as a substitute for results prepared in accordance with GAAP. For a reconciliation of this non GAAP financial measure to net loss, a comparable GAAP financial measure, please see the reconciliation table located in Supercom's earning press release that accompanies this call. Reconciliations for other non GAAP financial measures and comparable GAAP financial measures are available there as well. The content of this call contains time sensitive information that is accurate only as of today, 8/13/2026. Except as required by law, Supercom disclaims any obligation to publicly update or revise any information to reflect events or circumstances that occur after this call.

It is now my pleasure to turn the call over to Supercom's president and CEO, Ordan Trabelsi.

Ordan Trabelsi: Hello, everyone. We are pleased to report another record quarter for SuperCom. In the second quarter of 26, we achieved more than 8-year records for revenue, gross profit, and EBITDA. We are marking our ninth record quarter of the last 10 since the company turnaround began in 2021. These results build on the progress we have delivered over the past several quarters and demonstrate the increasing scale and build an operating leverage of our business model. As we expand the delivery of our proprietary electronic monitoring and public safety technologies to local and national governments around the world, we are seeing continued improvement across our key financial and operational metrics.

This performance is being driven by greater operational efficiency, continued to invest in our technology, and our strategy of simultaneously expanding both into new markets and within the markets we already serve. Combined with our significantly strengthened balance sheet, these advancements provide us with a strong foundation to continue scaling the business. I will now turn to our financial results for the second quarter of 26. Revenue increased 13.3% to $8.1 million compared with $7.1 million in the second quarter of 25. Gross profit increased 16% to $4.9 million. Gross margin also expanded by approximately 90 basis points to 60%.

Operating income was $900 thousand compared to $1.1 million in the prior year period, and this was largely impacted by the Israeli foreign currency headwinds. During the second quarter, our Israel operations experienced foreign currency headwinds from approximately 17% year over year increases in the average Israeli currency to the US currency exchange rate. The shekel to the dollar. Despite these pressures, we sustained GAAP net income levels at roughly $1.1 million for the quarter similar to the same quarter in the prior year period. On a non-GAAP basis, net income increased to $2.9 million compared with $300 thousand in the prior year period.

EBITDA increased by 55.6% to $4 million this quarter compared to $2.5 million in the second quarter of 25 representing our highest quarterly EBITDA in more than a decade. GAAP earnings per share were approximately $0.20, and non-GAAP earnings per share were $0.52. We have also made substantial progress in strengthening our balance sheet. Over the past several years, we have reduced our net debt from close to $35 million to under $10 million Our outstanding long term debt now carries a blended interest rate of approximately 6%, with no cash payments due until the end of 28. This structure provides us with greater flexibility to invest in growth.

Cash and cash equivalents totaled approximately $7.4 million as of 6/30/2026 compared to $9.8 million at the end of June 30-- sorry, at the end of 2025. During the quarter, we strategically deployed capital to support working capital needs and accelerate customer onboarding, installations, and technology integration across new contracts in the United States and Europe. Subsequent to quarter end, in early July, we raised approximately $7.5 million in gross proceeds from a common shares only registered direct offering. with a few institutional investors. This additional capital further strengthens our financial position and provides us with increased flexibility to support new deployments and continue executing against our growing pipeline.

Finally, our book value of equity totaled approximately $48 million as of June 30, an increase of 28% from approximately $37 million at 6/30/2025. Next, I would like to spend some time discussing the operating leverage in our business and the factors contributing to our profitability and margin expansion. The economics of our programs improve as they mature. At the outset of a new program, we incur upfront costs associated with onboarding, training, development, and deployment. As additional monitoring units are deployed, those initial costs are spread across a larger recurring revenue base. This increases the contribution from each incremental unit and creates meaningful operating leverage.

As more of our customer relations mature, we are seeing the benefits of this dynamic reflected in our gross margins. We have also taken several important steps to improve our operational efficiencies. In Europe, we have consolidated logistics, equipment handling, and shipments through a centralized hub in Romania. At the same time, we have brought more IT and customer support responsibilities in house from our subcontractors. This has reduced our reliance on local partners and we have established our own 24 hour support capabilities across multiple projects. These initiatives give us greater control over the customer experience while also improving the efficiency of our operations and building our customer support network.

We also continue to incorporate AI capabilities into our operational processes. AI has already helped accelerate development introduce new automation, and improve efficiency across deployment and customer support activities. We believe these are still in the early ages of AI adoption. As we continue to introduce new products, technologies, and automation, see the potential to further reduce labor, support, and administrative requirements associated with operating and scaling our programs. The centralized deployment model we have developed in the United States provides another important operational advantage and leverages economies of scale.

Our cloud based platform integrated inventory management, and 24 hour support capabilities allow us to serve programs throughout the country, with a unified infrastructure, 1 shared language, and a common operating environment directly reducing project costs. European national programs often require country specific infrastructure local language customization, and more decentralized support. And while our experience, enables us to manage that complexity effectively, more standardized US model allows us to launch and support new country and state level programs more efficiently and cost effectively. As the US presence expands, we believe its model can support fast deployments and attractive margin potential, or even more attractive than it is today. Underlying all these efforts is the strength of our technology.

Many European national programs are awarded through rigorous technology based evaluation processes. In markets including Sweden, Germany, Israel, and Norway, we have displaced incumbent providers that have supported these programs approximately 20 to 25 years. Our win across all 5 Nordic countries, often against longstanding incumbents. Provide compelling validation of the performance, reliability, and capabilities of our technology. As well as our ability to meet the demanding requirements of national electronic monitoring programs. I will now turn our to our growth and diversification strategy. Which remains focused expanding both into new markets and within the markets where we are currently established.

Over the 4-year period until 12/31/2025 revenue from our electronic monitoring business grew at a compound annual rate of approximately 30%. Per year, while EBITDA grew at a compound annual rate of approximately 47%. This performance reflects the continued expansion of our recurring revenue base and the increase in operating leverage in our business. In Europe, our results can fluctuate between periods, because our revenue increased includes several large multiyear national programs with each customer's ordering cycle potentially affecting the timing of revenue recognition. Romania, for example, represented a significant portion of our European revenue in prior periods but ordering activity temporarily moderated amid political uncertainty.

And as our EMEA contract base has grown, Romania as a similar contract represents less of our revenue. Blend. Romanian program remains active, though. And, important to note, the temporary decline in Romania masked strong growth across the rest of our electronic monitoring business. Excluding the impact of Romania this decline, our underlying revenue would have grown approximately 40% between 2024 and 2025. Until today, we have secured more than 20 wins across European national electronic monitoring programs. And maintain a presence in all 5 Nordic countries. These accomplishments give us a strong regional foundation. But we have continued to see meaningful opportunities to expand further within our existing markets and in new ones.

Several significant European opportunities are expected to come to market over the next 18 to 24 months. Including the opportunity in Italy among others. We have also discussed the opportunity in England previously, which remains a substantial opportunity for SuperCom valued at over £150 million. We competed for this England opportunity historically and came in second place. When SUPERCOM had a less developed reference base and significantly more leveraged balance sheet. Since then, we have strengthened our financial position, expanded our European presence, and established a broader record of successfully executing national electronic monitoring programs and makes us a more viable candidate for the England program win. There could be no assurance regarding the outcome of any individual procurement.

However, our success in markets that rely mostly on objective, technology based evaluation processes for example, across the Nordic region, gives us confidence that our technology, we are, we are better positioned today. so we can be for this and other large national opportunities. The United States remains another important driver for our growth. Our strategy is not only to enter additional states, but also to expand into more counties, agencies, and programs within each state where we already have an established presence. Since mid 24, we have secured more than 45 new US electronic monitoring contracts and entered 19 new states with access to additional markets through our 18 new regional service provider partnerships.

We are also seeing the scale of our contracts increase over time. From smaller initial deployments to more recent awards involving approximately 100 to 250 simultaneous units. We are building our references and moving up in project sizes similar to the pattern we experienced when we started our European expansion. Only this time, it is faster. Many of these wins have involved agencies and service providers transitioning from incumbent vendors and legacy systems to our pure security platform. We have seen this pattern in markets including Alabama, Utah, and Virginia, where customers have selected our technology to modernize their electronic monitoring programs. These wins demonstrate the reliability, flexibility, and scalability of our platform.

They also highlight the versatility of our operating model. Which enables us to serve government agencies directly while also supporting regional service providers across a variety of program structures. We currently operate in 22 states, and in 12 of those, we have already expanded to multiple counties. As you build a reputation and establish successful reference programs in each state, we believe there is significant opportunity to deepen our presence in those markets. Our US platform is also supported by leaders in community alternatives. Our wholly owned subsidiary in California. LCA provides reentry and rehabilitation services that complement our core monitoring technology and broaden the range of outcomes we can support for our customers.

LCA recently secured a 5-year reentry services contract valued at $2.5 million. And since we acquired LCA, Supercom has secured more than $35 million in new contracts in California alone. Together, our electronic monitoring technology and complementary service capabilities allow us to support customers across a broader range of monitoring, compliance, and rehabilitation needs. Turning now to our pipeline. We continue to see a robust and growing range of opportunities across key markets. 1 of the most significant developments during the quarter was our expansion in Sweden, In June, we announced that we have signed and launched a new national electronic monitoring project with the Swedish Prison and Probation Service.

The total estimated project value ranges from $17 million reflecting the previously announced base case scenario, to the $75 million budget published by the customer. That published budget reflects the potential for expansion through a higher number of active offenders and the addition of capabilities such as alcohol monitoring, our pure GPS, solution, our PureOne GPS solution, and the Pure All mobile device solution. The program is expected to expand to as many as 6 thousand active offenders. Representing approximately 6x the number from the program we first launched with this customer in 2019. Where we displaced the incumbent of 25 years. with more capabilities and more features this time around.

Revenue recognized under the contract will ultimately depend on actual usage levels, and the scope of the capabilities deployed. We are also continuing to build momentum in the United States. Recent contract wins in Michigan, Georgia, Ohio, New York, and Kansas demonstrate the increased demand for our technology and the continued expansion of our national footprint. it is important to remember that there is an inherent lag between the signing of a contract and recognizing the associated revenue. Especially in The US where everything is usually charged on a recurring per-unit-per-day model. In some cases, full deployment can take 6 months or longer. Particularly when a customer must transition from an incumbent provider and replace existing monitoring units.

With our technology. In both Europe and The United States, deployment schedules and customer ordering patterns can affect the timing of revenue, recognition from period to period. Despite this timing dynamic, the recurring revenue base associated with our US electronic monitoring technology continues to grow. Our US EM technology annualized recurring revenues has been accelerating. Reflecting growth of approximately 290% from July 2025 to July 2026. This progression provides an encouraging indication of how our recent contract wins are beginning to translate into recurring revenue. We continue to see substantial room for expansion. There are many markets, both the United States and Europe, that we have not entered yet.

And as we increase our scale, strengthen our financial position, and build a broader record of successful deployments, we believe it will be qualified to pursue an expanding range of opportunities. In summary, I am extremely pleased with the progress we delivered during the second quarter and with the consistent growth and profitability we have sustained over the past several quarters. As well as securing highly valuable new contracts such as the national projects announced in Sweden and Norway. We achieved record revenue gross profit, and EBITDA. While continuing to invest in new deployments. Advancing our technology, and expanding our presence across the United States and Europe.

We are also seeing increasing operating leverage as our programs mature and our recurring revenue base grows. We believe Supercom is stronger today than at any point in its history, with an exceptional global team, a significantly improved balance sheet, proven and differentiated technology, and a growing range of opportunities to expand into new markets and within the markets we already serve, and the record revenue and EBITDA numbers. At this point, as we look ahead, we remain focused on executing our pipeline, supporting our customers, and building on our position as a global leader in electronic monitoring and public safety technology. This concludes our prepared remarks, and I will turn the call back to the operator for questions.

Operator: Thank you. To ask a question on today's call, you will need to press star then the number 1 on your telephone. You are using a speakerphone, please pick up your handset before entering your request and speaking on the call. If your question has been answered and you wish to withdraw your request, you may do so by pressing star then 2. 1 moment, please, for the first question. And our first question today is coming from Matthew Evan Galinko with Maxim Group. Matthew, your line is live. Please go ahead.

Matthew Evan Galinko: Hey. Congratulations on another strong quarter. Can you maybe touch on-- sure. With-- we can obviously see the momentum, I think, in the U. S. Market in terms of expanding your territory. And appreciate the metrics you provided on growth rates. At what point, I guess, do you expect that to mean, I guess, maybe firstly, do you expect that to accelerate as you to your point, move into higher scale deployments in the US market. So, as you move into higher offender count or monitoring counts, do you anticipate that number could actually accelerate from the current rate of growth?

Ordan Trabelsi: The number's been accelerating this year, I think, in the last quarter, we announced, up to 180%. Now we are at 290. Year over year ARR. At some point, naturally, as the numbers get larger and larger, the acceleration will stop, and the growth will continue, though. In The US market, we started with, you know, smaller county projects I am sorry. there is-- there we go. Calling out of Tel Aviv. They were smaller county project, and then growing in size, and now we are at level of roughly a 100 to 250.

Of course, there is much larger projects in The US and some of our projects in Europe as we discussed, Sweden was a thousand units and expected to reach 6 thousand this time around. Romania was 15 thousand units. So we deployed much larger projects in Europe, But, originally, in Europe, it was also 50 units or 100 units, and we still scaled project or project, and that is what we are doing in The US. We are just doing it much faster this time around. So in the last 2 years, we expanded into 19 new states it took us much longer to reach that kind of presence in Europe.

Matthew Evan Galinko: Got it. Well, very good. I think you touched on Romania. Headwinds, but is it reasonable to can you maybe characterize where that opportunity is today as far as maybe expansion of scope or is there potential to bring orders back from Romania or how does that look today?

Ordan Trabelsi: So Romania is still an active customer of ours. The like, many of our customers when we start the program, if the relationship is good and deployment is successful as it was, they can order at a planned rate or faster than planned, and that is what we saw there. And So we saw this initial fast ramp. At some point, there were elections, and those elections happened twice. And some things slowed down a little bit, and you saw a decline of revenues in Romania in 2025. Which masked an underlying growth of 40% for revenues that year for the rest of the business, if you avoid that decline.

But Romania is still active, and there is expansion opportunities just like any of our contracts, and we are we only started with them in 2022. Many of these contracts we have provided, for example, are Israel, Sweden, Norway, are over 20, 25 years with the same incumbent provider. So once you start a relationship with them, and you are doing well as we believe we are doing there, there is more expansions, more opportunities, and we are excited about the path ahead.

Matthew Evan Galinko: Thanks. Alright. Last question for me, and I will jump back in the queue. Your gross margin has been, you know, very strong, I think, for the last couple of quarters. Can you point to any is it predominantly the revenue mix and where you are in the contract cycle? Or is it the implementation of AI and efficiency contributing to that gross margin? And I guess how sustainable are we kind of in the 55% to 60% range?

Ordan Trabelsi: So we touched on some of this also in the past. We are taking a lot of the projects in Europe, there is different deployments in different regions with local subcontractors and local languages. We have been taking a lot of that in house. And that lowers the cost that we are shipping out to subcontractors so that improves margins. The US market where we are having more revenues has higher margins than in Europe because it is all centralized on the cloud and in English.

Also, the existing projects that we have in Europe are reaching a later stage, maturing And the more the project matures, the more you are just adding additional units at a very high gross margin compared to the initial deployment where you have a lot of installations and hardware and security and training and adaptations. And so when you are in later stage projects, as your projects mature, gross margins are naturally higher. And we still have opportunity in the business to grow margins more, especially when revenues are higher because there is significant operating leverage in this business model. AI also, as we described, and I am talking about AI not in the products, which is a separate thing.

I am talking about AI just from our operations. A lot of the things are becoming more automated, more seamless, and that is improving everything in terms of the inventory management, other processes that we have to do. And it is helping us deploy a lot of efficiencies. And we think that is just the beginning. We think there is much more that can be done, and we will not give a spoiler. But over time, we will have more updates along the way as those things go.

Operator: Thank you. Your next question is coming from Gregory Mesniaeff from Kingswood. Gregory, your line is live. Please go ahead.

Gregory Mesniaeff: Thank you. Hi, Ordan. How are you?

Ordan Trabelsi: I am great. How are you doing? Good. Thanks for joining.

Gregory Mesniaeff: 2 questions. First 1's kind of a general. On the newer contracts that you have announced recently, what is the typical duration period of the contract and how is it structured? Is there a percentage of the contract that is earmarked for service and support And is that optional, or is that included in the overall contract? And, also, what kind of cybersecurity guarantees are you required to provide? Given the sensitive nature of some of this data and the fact that you are dealing with law enforcement and governments.

Ordan Trabelsi: I will start with the latter just because it is a little interesting to remind, but we have ISO 27 thousand and other certifications, but also at SuperCom, in our history. We have Cyber capabilities. We used to do penetration testing and advise various organizations on this. We have cybersecurity software as part of part of our operation. So we are very sensitive, and all the people here are from cybersecurity in their past experience at SuperCom. So while we are deploying our technology, big focus is cybersecurity, and we are handling very sensitive data.

The projects we did in the history of SuperCom before electronic monitoring was in identification, which was the full census of the country, of all the citizens. You know, and all their taxes and their criminal records and their passports. And so we have a lot of experience in that department, of course, that lays over to what we are doing with electronic monitoring. So especially on premise deployments that we see in Europe, cybersecurity is a big part of it, and we are I think we are able to show very strong capabilities, and it helps us score the highest in the technology portions of the bids.

Now in terms of the and they provide the penetration tests, and they do the cybersecurity audits. In Europe, the national projects, there is several levels of evaluation. And in those evaluations, besides testing our products and the accuracy of the location tracking, and the reliability and the consistency, they are also assessing the cybersecurity capabilities. That was the second 1. The first question was around the contracts.

Gregory Mesniaeff: I do not know if you are asking about Europe or The US. So I will speak in general with the 2 models.

Ordan Trabelsi: In The US, it is actually quite mature, the market in a in a more homogeneous fashion. And usually, the projects are priced at per unit per day for active offender being tracked. And that is how and the revenue recognition is consistent. that is throughout our customers in The US, whether it is direct agency customer or through a service provider. But in The US, we do not we do not have we do not have subcontractors that we have to that we have to put the some of the cost to. So when we receive things, they are already at a higher margin and Mhmm. it is all recurring per unit per day.

Also, the cash payments are consistently per month. In Europe, you have some projects that are purchased where they are acquiring the equipment. And other ones that are still leased, but they have a large deployment. Because you are doing it on premise deployment where you are buying servers, and installing the firewalls and the infrastructure and connecting into their database in their census, and providing the deployment work that could take as quick as 3 weeks, for initial stages, like we did in Romania, and it could take much longer, up to a year. And in Europe, we get paid for that portion, of course.

And then we have the deployment revenues as well as the after ongoing revenues and maintenance and deployment of additional units. And that is what we are seeing in our European customers, and each 1 is a little bit different. it is not homogeneous to 1 kind of contract model like it is in The US. Everyone has the way that they like to do it, and we conform to many different customers and many different structures. it is all fine by us.

Gregory Mesniaeff: And what is typically the renewal period? Of the newer contracts, particularly in The US?

Ordan Trabelsi: So you say renewal period. What do you mean the After stage after say, 2 or 3 years, the contract is, you know, renegotiated. Okay. So, typically, the contracts are 3 to 5 years. The initial term. It could be 3 years, 3-year, 2-year, 2 expansions. Or it could be 5 years with some expansions, but then it goes up for rebid. And if the customer likes you and they believe in you, then you know, you have a good chance of winning again if you put out a strong bid, which is why some of the vendors that we have that we displaced were there for 20, 25 years in Europe.

A lot of these counties that were displacing the incumbent technology provider, these are legacy providers that have been there for a while. They have been there for 10 years, 15 years. Sometimes we give notes to that. But it is usually much more than the 3 to 5 years. Got it. If you have not done anything wrong or you are doing you are doing well, it typically renews for more and more. that is what is interesting about this market. it is a little bit hard to penetrate into new contracts, into new regions.

So once you are there, it is very sticky, and we feel great about what we have achieved, and we had over 20 national wins and over 45 new contracts in The US. Those hard to get those, and each of those provides us a moat and long term relationship that we believe will have gone for many years with each of these customers. That we have a strong deployment with.

Gregory Mesniaeff: Great. Thanks. And just 1 quick follow-up, Ordan. Are you capitalizing any of the new customer onboarding costs?

Ordan Trabelsi: The new customer onboarding costs. Some of the some of the some of the projects are, recognized as revenue of percentage completion. Not exactly capitalized in cost, but for some components, you can look at indirectly as but it is sometimes a milestone for progression together with cost progression for revenues for these projects. And that depends on ASC 606 and how the 2 projects are categorized and classified. Got it. Thank you. Yes. You are welcome. Thank you. Thank you.

Operator: Your next question is coming from Jack Gvili from Blaven Capital Management. Jack, your line is live. Please go ahead.

Jack Giuliano: Hey, Ordan. Thanks for letting me join the call, and congrats on the results. Thank you. Just 2 quick questions from us. Firstly, in terms of opportunities, outside of Europe and The Americas, we noticed that you hired 2 directors of sales and are actively hiring 2 directors of sales. In APAC and LatAm. And so, could you potentially tell us about the opportunities you are seeing there and then the timing on those as well?

Ordan Trabelsi: Okay. Interesting that you saw those. Yeah. We have our hires on our career portion of our website. So we believe that there are interesting markets outside of the US and Europe as well. And Supercom, we have over 38 years of experience serving over 40 nations around the world. Different type of government, large scale government deployments, and we think we are well positioned to expand there as well. The technology has been tested and has been successful time and time again in different regions of Europe and different areas of The US.

The same, let's say, physical and technological requirements apply to other regions of the world. it is more just getting them up to speed with the process of running electronic monitoring programs. And we have done this as well. In Croatia, we launched brand new program. Romania, it is a brand new program. They have not done this before. So we think we can be great partners for a lot of these countries. Outside of The US and Europe, and we are seeing opportunities come up. And we saw the time to capitalize on that as well. So, yeah, we are looking for directors of sales in those 2 regions for LATAM and Asia Pacific.

Asia-Pacific, specifically, has actually developed electronic monitoring that we have not yet accessed. Our initial focus will be there in Australia and New Zealand. There are many different programs and have a lot of experience doing that there. Some of the same players that we are displacing in Europe and The US are over there. We look forward to competing against them there as well.

Jack Giuliano: Sounds great. You and secondly, I know there is a lot of focus on The US. but, you know, when it comes to Europe, there is a lot of opportunities there as well. And so maybe you can walk us through what you are seeing in terms of other opportunities outside of, you know, Italy and the UK, which you mentioned on your previous call, and there are other opportunities outside of that, it would be great to hear about those as well.

Ordan Trabelsi: Yeah. I will also say there are there are many opportunities in Europe. And in the past, we had over 65% win rate. In Europe, recently, the last few programs we bid on, we have won 3 out of 3. So sometimes the that win rate is even as high as 100% over prolonged periods of time, and there is some opportunities. We talked about it earlier. England. England is not just the national opportunity, which is over £50 million. there is also other small ones in different regions. it is a whole market that we are that we are looking to enter. And there is other ones in Europe.

We do not always wanna give a heads up to competition. So we try to keep it limited on exactly the names we are sharing and where we plan to bid and expand to. But we I think we have done an amazing job. The team here has done an amazing job at winning contracts in Europe, in new regions where we have not had any past experience. Or relationships, and we have overcome you know, all the hurdles to come in as a brand-new provider And displace the incumbents that they have had for a very long period of time, even over 20 years in many of these.

So we are still excited about the European projects, and, also, they are much larger in size. The projects as in the US. And we think a lot of our growth will continue to come from Europe, But at the same time, you see that in the US market, things are starting to ramp up quickly, and we are having great references and great feedback from service providers who are not just aware of 1 technology because typically, the service provider sees all the technology in the industry If they choose to take our technology on and displace the others, these are savvy. You know, they know they work with technology a lot.

They are not necessarily government officials, which might know 1 technology or the other. We think it is really good feedback. And a good testament to where we are going in the US. So the US market is 6x bigger than Europe, and it is I think, gonna be a nice part of our future growth potential. But meanwhile, as that grows, Europe, the European market's doing great for us. And we expect to have continued wins and expansion there as well.

Jack Giuliano: Sounds great. Thanks, Ordan. Thank you. Thank you.

Operator: Your next question is coming from Sean Weston from DeepSale Capital. Sean, your line is live. Please go ahead.

Sean Westrop: Thank you. Thanks, Ordan, for having the call, and a good quarter here. Just wanted to touch on Sweden a little bit. I am kind of wondering on contract ramp. I know it is like a you guys have a 9-year contract there. Is it going to be very front loaded in 2026 and 2027, kind of similar to what we saw in Romania? Or do you think it is gonna be more spread out? Like, how is that looking?

Ordan Trabelsi: So we cannot, at this point, express exactly how it is going to be on a specific program. But we have shared that many times when the program's launched, there is the initial plan, and the customer likes what we are doing, and they end up ordering and deploying it much faster. And we have the experience to do so. We deploy many contracts, probably more than any other vendor in Europe. We are deploying many contracts at a very high, very fast pace with new technology deployments and new cycles, and so we are very well versed to support their, let's say, growing needs of speed and acceleration. So we are ready to deploy as fast as needed.

And as in many contracts in the past, we have seen that we have seen the deployments be much faster than originally anticipated. And here, when you talk about Sweden, note it is not just so they already they already have a program there. They are deploying a new 1. Right. But they are also looking to add on things like alcohol and other capabilities and things that we are also very ready to deploy. We are doing in many of our countries, we have multiple programs, 3, 4, or 5 different programs. So that is that is very easy for us to add those modules. And then the amount of accounts that they are looking to grow significantly.

We have the capacity to support that as well. So we cannot say exactly how fast it will be, but we know we can support it.

Sean Westrop: And the fact that you guys already have an appointment there, does that mean it is a little faster and a little cheaper for you guys to deploy this additional larger contract there?

Ordan Trabelsi: that is a good question. By the standard competitive process, you know, they cannot give an advantage to 1 vendor over another even if they are the incumbent. But, naturally, as you can expect when you have experience in the country and you build a record reputation and you understand how things work, you can plan better and do things at a much faster and more effective fashion.

Sean Westrop: Great. That makes sense. Great. Just wanted to touch then on The US growth. So in the press release, you know noted the 171% recurring revenue growth. Can you just talk about what is driving that? Is that mainly contracts you won from last year ramping? Or is that some of these larger contracts that you won more recently like the Arizona State coming into play, or is it just kind of a mix of everything?

Ordan Trabelsi: it is a little bit of a mix. I would say that the initial projects when we started mid 24 were much smaller in size, and they are growing. You know, as we continue to move forward, our sales people focus on larger and larger contracts, and we are able to win them. And then we take the references from those and go to larger ones. And, also, the contracts that we have, we are we are growing the amount of units. And sometimes it could be say, a service provider that has a thousand units.

And they will start us off with 100 or 150 units because they like the technology, but then they will see it is working really well, and they could give more units and more units. And sometimes it is just a contract that the whole size county contract was 100 units, and that is bigger than what we had in the past. So we are we are active. Yet, we still have a lot to deploy with the contracts we currently have announced. Not at full capacity at all. Those are scaling up. We expect them to scale up more than the numbers that we disclosed. And there is we expect more contracts, of course.

But the numbers we have now is just the billings based on what has already been deployed, and that is part of the, you know, active unit per unit per day recurring revenue charges.

Sean Westrop: Great. Alright. Great. Thanks a lot. that is all I had. Thank you very much. Yeah. Thank you.

Operator: Should anyone have any further questions at this time, you may press 1 on your telephone keypad. Once again, if there are any further questions at this time, please press 1 on your keypad to join the queue. Please hold a moment while we repoll for questions. And there are no further questions in queue at this time, and this does conclude our question and answer session. At this time, I will pass the call back to Ordan for closing remarks.

Ordan Trabelsi: Thank you, operator. And I want to thank all of you for participating in today's conference call. And for your continued interest in SuperCom. We look forward to sharing our progress on our next conference call filings, and press releases. Thank you very much. And have a great day.

Operator: Thank you. This does conclude today's conference call. You may disconnect at this time. Have a wonderful day. Thank you once again for your participation.