SuperCom Ltd. reported substantial financial improvements for the third quarter and first nine months of 2025, marked by significant margin expansion and continued momentum in its electronic monitoring contract business. The company's nine-month performance showed revenue of $20.4 million compared to $21.3 million in the prior year period, while gross profit increased to $12.5 million from $10.7 million, representing a notable gross margin expansion to 61% from 50.1%. This margin improvement indicates enhanced operational efficiency and pricing power for the company's technology solutions.
Operating income nearly tripled to $3 million for the nine-month period, while net income more than doubled to $6 million compared to the same period last year. Non-GAAP net income reached $9.3 million, and EBITDA increased to $7.2 million, reflecting improved cost management and operational performance. The third quarter results showed particularly strong performance, with revenue of $6.2 million and gross margin climbing to 60.8% from 45.6% in the same quarter last year. Operating income for Q3 2025 rose to $0.64 million from $0.03 million in the prior year quarter, while net income improved to $0.7 million from a loss of $0.4 million.
The company also reported sharp gains in non-GAAP metrics, EBITDA and working capital, indicating strengthened financial health and operational performance. These results demonstrate SuperCom's successful execution of its business strategy and improved profitability across its operations. The company highlighted continued business momentum with more than 30 new electronic monitoring contracts secured since mid-2024, including entry into 12 new U.S. states, multiple incumbent replacements and major wins across Europe, Israel and North America. This contract growth underscores the increasing global demand for the company's PureSecurity platform and broader supervision solutions.
The expanding contract portfolio reflects SuperCom's growing market presence and the effectiveness of its technology offerings in the electronic monitoring space. The company's performance and contract wins are detailed in the full press release available at https://ibn.fm/yHaY6. Investors seeking additional information about SuperCom can access the latest news and updates in the company's newsroom at http://ibn.fm/SPCB. These financial results and contract achievements position SuperCom for continued growth in the global security and monitoring markets, with the expanded gross margins indicating improved operational efficiency and pricing power for its technology solutions.
