Cuộc họp công bố kết quả kinh doanh Quý 2/2026 của SuperCom (SPCB): Doanh thu, EBITDA và Tăng trưởng định kỳ tại Mỹ

Điểm chính

• Doanh thu quý 2/2026 tăng 13,3% so với cùng kỳ năm ngoái lên 8,1 triệu USD, trong khi lợi nhuận gộp tăng 60% lên 4,9 triệu USD. Ban lãnh đạo cho biết biên lợi nhuận gộp đạt 60%, tăng khoảng 90 điểm cơ bản.
• EBITDA tăng khoảng 58% lên 4,0 triệu USD, mức EBITDA theo quý cao nhất của công ty trong hơn một thập kỷ. Lợi nhuận ròng theo GAAP duy trì ở mức gần 1,1 triệu USD, trong khi lợi nhuận ròng phi GAAP tăng lên 2,9 triệu USD.
• Doanh thu thường niên quy đổi (ARR) từ công nghệ giám sát điện tử tại Mỹ đã tăng khoảng 290% từ tháng 7/2025 đến tháng 7/2026. Kể từ giữa năm 2024, SuperCom đã giành được hơn 45 hợp đồng tại Mỹ và mở rộng sang 19 bang mới.
• Dự án giám sát điện tử cấp quốc gia mới của Thụy Điển có giá trị ước tính dao động từ kịch bản cơ sở 17 triệu USD đến ngân sách công bố 75 triệu USD của khách hàng. Chương trình có thể mở rộng quy mô lên tới 6.000 đối tượng giám sát hoạt động.
• Nợ ròng đã giảm từ gần 35 triệu USD xuống dưới 10 triệu USD trong vài năm qua. SuperCom cũng đã huy động được khoảng 7,5 triệu USD tổng tiền thu được sau khi kết thúc quý thông qua đợt phát hành đăng ký trực tiếp chỉ gồm cổ phiếu phổ thông.
• Ban lãnh đạo đã dẫn ra sự hoàn thiện của các hợp đồng, hạ tầng tập trung tại Mỹ, việc tự thực hiện thay vì thuê ngoài ở Châu Âu và việc áp dụng AI trong vận hành là những động lực thúc đẩy hiệu quả và mở rộng biên lợi nhuận.

Kết quả tài chính cốt lõi

Kết quả hoạt động kinh doanh và vận hành

SuperCom cho biết quý 2 đánh dấu các mức cao nhất trong hơn 8 năm qua về doanh thu, lợi nhuận gộp và EBITDA, đồng thời là quý kỷ lục thứ 9 trong số 10 quý gần nhất kể từ khi quá trình xoay chuyển tình thế bắt đầu vào năm 2021.

Công ty cho rằng khả năng sinh lời mạnh mẽ hơn là nhờ đòn bẩy hoạt động trong các chương trình giám sát điện tử của mình. Các đợt triển khai mới ban đầu yêu cầu chi phí đào tạo tiếp nhận, phát triển và lắp đặt. Khi các chương trình dần ổn định và nhiều thiết bị giám sát được kích hoạt hơn, các chi phí đó được phân bổ trên một cơ sở doanh thu thường xuyên lớn hơn.

Tại Châu Âu, SuperCom đã tập trung hóa hoạt động hậu cần, xử lý thiết bị và vận chuyển thông qua một trung tâm ở România. Công ty cũng đã tự đưa nhiều chức năng CNTT và hỗ trợ khách hàng vào nội bộ, giảm sự phụ thuộc vào các nhà thầu phụ địa phương. Ban lãnh đạo cho biết AI đang hỗ trợ phát triển, quản lý hàng tồn kho, triển khai và tự động hóa dịch vụ khách hàng, đồng thời vẫn còn nhiều cơ hội nâng cao hiệu quả hơn nữa.

Mô hình tại Mỹ mang lại biên lợi nhuận cao hơn so với Châu Âu, theo ban lãnh đạo, do sử dụng hạ tầng điện toán đám mây tập trung, quản lý hàng tồn kho tích hợp, hỗ trợ bằng tiếng Anh và môi trường vận hành chung. Các hợp đồng tại Mỹ thường được tính phí theo từng thiết bị hoạt động mỗi ngày, tạo ra doanh thu thường xuyên hàng tháng.

SuperCom hiện hoạt động tại 22 bang ở Mỹ và đã mở rộng sang nhiều hạt ở 12 bang trong số đó. Các đợt triển khai gần đây đã tăng từ các dự án nhỏ hơn lên các hợp đồng liên quan đến khoảng 100–250 thiết bị đồng thời. Ban lãnh đạo cho biết các hợp đồng hiện tại đã công bố vẫn chưa đạt mức triển khai tối đa.

Tại Châu Âu, SuperCom đã giành được hơn 20 chương trình giám sát điện tử cấp quốc gia và hoạt động trên khắp cả 5 quốc gia Bắc Âu. Công ty cho biết một số cơ hội tại Châu Âu có thể tiến ra thị trường trong 18–24 tháng tới, bao gồm cả Ý. Công ty cũng xác định một cơ hội cấp quốc gia tại Anh trị giá hơn 150 triệu bảng Anh, đồng thời nhấn mạnh rằng kết quả mua sắm công vẫn chưa chắc chắn.

Dự án cấp quốc gia tại Thụy Điển có thể mở rộng từ kịch bản cơ sở ước tính 17 triệu USD lên mức ngân sách 75 triệu USD được khách hàng công bố, tùy thuộc vào mức độ sử dụng và việc triển khai các tính năng bổ sung. Các tính năng này có thể bao gồm giám sát nồng độ cồn, Pure GPS, PureOne GPS và giải pháp thiết bị di động Pure Officer.

Rủi ro và các điểm cần theo dõi

• Biến động tỷ giá hối đoái tại Israel đã đè nặng lên lợi nhuận từ hoạt động kinh doanh. Ban lãnh đạo dẫn ra mức tăng khoảng 17% so với cùng kỳ năm ngoái của tỷ giá hối đoái trung bình giữa đồng shekel và đô la Mỹ trong quý.
• Doanh thu tại Châu Âu có thể biến động vì các chương trình cấp quốc gia lớn có chu kỳ đặt hàng và lịch trình triển khai riêng biệt tùy thuộc vào từng khách hàng.
• România vẫn là một khách hàng hiện hữu, nhưng việc đặt hàng đã chậm lại trong bối cảnh bất ổn chính trị và các cuộc bầu cử liên tiếp. Ban lãnh đạo cho biết sự sụt giảm tại România đã che lấp mức tăng trưởng doanh thu cốt lõi khoảng 40% của phần còn lại trong hoạt động kinh doanh từ năm 2024 đến năm 2025.
• Các hợp đồng tại Mỹ có thể mất từ 6 tháng trở lên để đạt mức triển khai tối đa, đặc biệt là khi khách hàng thay thế các thiết bị giám sát đã lắp đặt của nhà cung cấp hiện tại.
• Giá trị cuối cùng của dự án Thụy Điển phụ thuộc vào mức độ sử dụng thực tế và các tính năng được triển khai. Ban lãnh đạo không đưa ra lộ trình gia tăng quy mô cụ thể.
• SuperCom cho biết không có gì bảo đảm rằng công ty sẽ giành chiến thắng trong bất kỳ đợt mua sắm công riêng lẻ nào, bao gồm cả các cơ hội lớn đang được xem xét tại Châu Âu.

Các điểm chính trong phần Hỏi & Đáp với chuyên gia phân tích

Tăng trưởng tại Mỹ: Ban lãnh đạo cho biết mức tăng trưởng doanh thu thường xuyên tại Mỹ đã tăng tốc khi SuperCom giành được các hợp đồng lớn hơn và mở rộng số lượng thiết bị ở các khách hàng hiện hữu. Các nhà cung cấp dịch vụ ban đầu có thể triển khai 100–150 thiết bị trước khi phân bổ thêm khối lượng sau khi đánh giá công nghệ.

Tính bền vững của biên lợi nhuận: Công ty nhận thấy tiềm năng biên lợi nhuận cao hơn nữa từ các hợp đồng đã ổn định, doanh thu có biên lợi nhuận cao hơn từ Mỹ, việc tự thực hiện dịch vụ tại Châu Âu và tự động hóa bằng AI. Ban lãnh đạo cũng lưu ý rằng doanh thu cao hơn có thể tạo ra thêm đòn bẩy hoạt động.

Thời hạn hợp đồng và khả năng giữ chân khách hàng: Các hợp đồng ban đầu tại Mỹ thường kéo dài từ 3 đến 5 năm, thường có tùy chọn gia hạn trước khi đấu thầu lại. Ban lãnh đạo mô tả thị trường này là khó gia nhập nhưng có độ gắn kết tương đối cao một khi nhà cung cấp thiết lập được đợt triển khai thành công.

An ninh mạng: SuperCom đã nhấn mạnh chứng nhận ISO 27001, phần mềm an ninh mạng và kinh nghiệm trước đây về kiểm thử xâm nhập cũng như dữ liệu chính phủ nhạy cảm. Các đợt đấu thầu cấp quốc gia ở Châu Âu thường đánh giá an ninh mạng cùng với độ chính xác theo dõi, độ tin cậy và hiệu suất sản phẩm.

Mở rộng ra ngoài Châu Âu và Mỹ: Công ty đang theo đuổi vị thế dẫn đầu về doanh số tại Mỹ Latinh và Châu Á - Thái Bình Dương. Trọng tâm ban đầu tại Châu Á - Thái Bình Dương dự kiến sẽ bao gồm Australia và New Zealand, nơi ban lãnh đạo xác định là một thị trường giám sát điện tử đã hình thành.

Toàn văn Biên bản Cuộc họp Báo cáo Kết quả Kinh doanh

Toàn văn cuộc gọi công bố kết quả kinh doanh

Phần trình bày của ban lãnh đạo

Operator

Ladies and gentlemen, good morning, and welcome to SuperCom's Second Quarter 2026 Financial Results and Corporate Update Conference Call. [Operator Instructions] 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'd 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 earnings 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, August 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're pleased to report another record quarter for SuperCom. In the second quarter of 2026, we achieved more than 8-year records for revenue, gross profit and EBITDA, 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 built-in 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 investment 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'll now turn to our financial results for the second quarter of 2026. Revenue increased 13.3% to $8.1 million compared with $7.1 million in the second quarter of 2025. Gross profit increased 60% to $4.9 million. Gross margin also expanded by approximately 90 basis points to 60%. Operating income was $900,000 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 U.S. 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 $300,000 in the prior year period. EBITDA increased by 55.6% (sic) [ 58% ] to $4 million this quarter compared to $2.5 million in the second quarter of 2025, 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've also made substantial progress in strengthening our balance sheet. Over the past several years, we've 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 2028. This structure provides us with greater flexibility to invest in growth. Cash and cash equivalents totaled approximately $7.4 million as of June 30, 2026, compared to $9.8 million at the end of June 30, 2020 -- 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 June 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 relationships mature, we are seeing the benefits of this dynamic reflected in our gross margins.

We've 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 stages of AI adoption. As we continue to introduce new products, technologies and automation, we see the potential to further reduce the labor, support and administrative requirements associated with operating and scaling of 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, one 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, the more standardized U.S. model allows us to launch and support new country and state-level programs more efficiently and cost effectively.

As the U.S. presence expands, we believe this model can support faster deployments and attractive margin potential or even more attractive than it is today. Underlying all of 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 for approximately 20 to 25 years. Our wins across all 5 Nordic countries, often against long-standing 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'll now turn to our growth and diversification strategy, which remains focused on expanding both into new markets within and within the markets where we are currently established. Over the 4-year period until December 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 increasing operating leverage in our business.

In Europe, our results can fluctuate between periods because our revenue increase 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 single contract, represents less of our revenue blend. The 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, the decline, our underlying revenue would have grown approximately 40% between 2024 and 2025. Until today, we have secured more than 20 wins across Europe national electronic monitoring programs and maintain a presence of all 5 Nordic countries. These accomplishments give us a strong regional foundation, but we continue 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've also discussed the opportunity in England previously, which remains a substantial opportunity for SuperCom valued at over GBP 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 make us a more viable candidate to secure the England program win.

There can 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 -- that with our technology, we're better positioned today to compete 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 established presence. Since mid-2024, we have secured more than 45 new U.S. electronic monitoring contracts and entered 19 new states with access to additional markets through our 18 regional service -- 18 new regional service provider partnerships. We're 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's faster.

Many of these wins have involved agencies and service providers transitioning from incumbent vendors and legacy systems to our PureSecurity 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've already expanded into multiple counties. As we build our reputation and establish successful reference programs in each state, we believe there is significant opportunity to deepen our presence in those markets.

Our U.S. 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 electronic monitoring technology and broaden the range of outcomes we can support for our customers. LCA recently secured a 5-year reentry services contract valued up to $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. One 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 Officer mobile device solution.

The program is expected to expand to as many as 6,000 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're 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's important to remember that there's an inherent lag between the signing of a contract and recognizing the associated revenue, especially in the U.S. 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 wants to 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 U.S. electronic monitoring technology continues to grow. Our U.S. 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 in 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 we will be qualified to pursue an expanding range of opportunities.

In summary, I'm 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're 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. We have an exceptional global team, a significantly improved balance sheet, proven and differentiated technology and a growing range of opportunities to expand both into new markets and within the markets we already serve and the record revenue and EBITDA numbers to 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 market.

This concludes our prepared remarks, and I'll now turn the call back to the operator for questions.

Operator

[Operator Instructions] And our first question today is coming from Matthew Galinko with Maxim Group.

Phần hỏi đáp

Matthew Galinko

Congratulations on another strong quarter. Can you maybe touch on -- we could 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 -- I mean, I guess, maybe firstly, do you expect that to accelerate as you -- to your point, move into higher-scale deployments in the U.S. market? So like as you move into higher vendor count or monitoring counts, do you anticipate that, that number could actually accelerate from the current rate of growth?

Ordan Trabelsi

The number has been accelerating this year. I think in the last quarter, we announced up to 180%. Now we're 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 U.S. market, we started with smaller county projects -- I'm sorry, there's -- there we go, calling out of Tel Aviv. There was smaller county projects that have been growing in size, and now we're at a level of roughly 100 to 250.

Of course, there's much larger project in the U.S. And some of our projects in Europe, as we discussed, Sweden was 1,000 units and expected to reach 6,000 this time around. Romania was 15,000 units. So we've deployed much larger projects in Europe. But originally, in Europe, it was also 50 units or 100 units, and we scaled project or projects, and that's what we're doing in the U.S. We're just doing it much faster this time around. So in the last 2 years, we expanded into 19 new states, and it took us much longer to reach that kind of presence in Europe.

Matthew 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. Like many customers of ours, when we start the program, if the relationship is good and deployment is successful as it was, they can order at the planned rate or faster than planned, and that's what we saw there. And so it's 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 our revenues in Romania in 2025, which masked an underlying growth of 40% for revenues that year from the rest of the business if you avoid that decline.

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

Matthew Galinko

All right. Last question for me, and I'll jump back in the queue. Your gross margin has been very strong, I think, for the last couple of quarters. Can you point to any -- is it predominantly kind of the revenue mix and where you are in the contract cycle? Or is 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 -- so a lot of the -- in the projects in Europe, there's different deployments in different regions with local subcontractors and local languages. We've been taking a lot of that in-house, and that lowers the cost that we're shipping out to subcontractors so that improves margins. The U.S. market, where we're having more revenues has higher margins than Europe because it's all centralized on the cloud and in English.

But also the existing projects that we have in Europe are reaching a later stage maturing. And the more the project matures, the more you're 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're in later-stage projects or as your projects mature, the gross margins are naturally higher. And we still have opportunity in the business to grow margins more, especially when revenues are higher because there's significant operating leverage in this business model.

AI also that we described, and I'm talking about AI not in the products, which is a separate thing, talking about AI just from our operations. A lot of the things are becoming more automated, more seamless, and that's improving everything in terms of the inventory management, other process that we have to do, and it's helping us deploy a lot of efficiencies. And we think that's just the beginning. We think there's much more that can be done, and we won't give a spoiler. But over time, we'll have more updates along the way as those things go.

Operator

Your next question is coming from Greg Mesniaeff from Kingswood.

Gregory Mesniaeff

Two questions. First one is kind of a general. On the newer contracts that you've announced recently, what's the typical duration period of the contract? And how is it structured? Is there a percentage of the contract that's earmarked for service and support? And is that option 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're dealing with law enforcement and governments?

Ordan Trabelsi

I'll start with the latter just because it's a little interesting to remind, but we have ISO 27001 and other certifications, but also SuperCom in our history, we have cybersecurity capabilities. We used to do penetration testing and advise various organizations on this. We have cybersecurity software as part of our operations. So we're very -- and a lot of people here are from cybersecurity in their past experience and in SuperCom.

So while we're deploying our technology, a big focus is cybersecurity, and we're 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 and all their taxes and their criminal rates and their passports. And so we have a lot of experience in that department. And of course, that lays over to what we're doing with electronic monitoring.

So especially on-premise deployments that we see in Europe, cybersecurity is a big part of it, and I think we're 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 are several levels of evaluation. And those evaluations, besides testing our products and the accuracy of the location tracking and the reliability and the consistency, they're also assessing the cybersecurity capabilities. That was the second one.

The first question was around the contracts. I don't know if you're asking about Europe or the U.S. So I'll speak in general about the 2 models. In the U.S., it's actually quite mature the market in a more homogeneous fashion. And usually, the projects are priced at per unit per day for active offender being tracked. And that's how you -- and the revenue recognition is consistent. That's throughout our customers in the U.S., whether it's direct agency customer or through a service provider. But in the U.S., we don't have subcontractors that we have to put some of the costs to. So when we receive things, they're already have a higher margin. And it's 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're acquiring the equipment and other ones that are still leased, but they have a large deployment because you're doing an on-premise deployment where you're buying servers and installing the firewalls in the infrastructure and connecting into their database, into their census and providing that 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 after ongoing revenues and maintenance and deployment of additional units. And that's what we're seeing in our European customers. And each one is a little bit different. It's not homogeneous to one kind of contract model like it is in the U.S. Everyone has the way that they like to do it, and we conform to many different customers and many different structures. It's all fine by us.

Gregory Mesniaeff

And what is typically the renewal period of the newer contracts, particularly in the U.S.?

Ordan Trabelsi

So when you say renewal period, what do you mean the...

Gregory Mesniaeff

I mean, after, say, 2 or 3 years, the contract is renegotiated.

Ordan Trabelsi

Okay. So typically, the contracts are 3 to 5 years, the initial term. It could be 3 years, 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 have a good chance of winning again if you put out a strong bid, which is why some of the vendors that we displaced were there for 20, 25 years in Europe. A lot of these counties that we're displacing the incumbent technology provider, these are legacy providers that have been there for a while. They've been there for 10 years, 15 years, and sometimes we give notes to that. But it's usually much more than 3 to 5 years.

If you haven't done anything wrong or you're doing well, it typically renews for more and more. That's what's interesting about this market. It's a little bit hard to penetrate into new contracts, into new regions. But once you're there, it's very sticky. And we feel great about what we've achieved, and we had over 20 national wins and over 45 new contracts in the U.S. It was hard to get those. And each of those provides us a moat and long-term relationship that we believe will go on for many years with each of these customers that we have a strong deployment with.

Gregory Mesniaeff

Great. And just one quick follow-up, Ordan. Are you capitalizing any of the new customer onboarding costs?

Ordan Trabelsi

The new customer onboarding costs. Some of the projects are recognized as revenue percentage completion, not exactly capitalized in cost, but for some components, you could look at indirectly as that. But it is sometimes a milestone progression together with cost progression for revenues for these projects. And that depends on ASC 606 and how the projects are categorized and classified.

Operator

Your next question is coming from [ Jack Giuliano ] from [ Blavin Capital Management ].

Unknown Analyst

Congrats on the results. 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 or are actively hiring 2 directors of sales in APAC and Lat Am. And so could you potentially tell us about the opportunities you're seeing there and then the time lines on those as well?

Ordan Trabelsi

Okay. Interesting, you saw those. We have our hires on our career portion of our website. So we believe that there are interesting markets outside of the U.S. and Europe as well. And SuperCom, we have over 38 years of experience over 40 nations around the world, different type of government, large-scale government deployments. And so we think we're 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 U.S. The same, let's say, physical and technological requirements apply to other regions of the world. It's more just getting them up to speed with the process of running electronic monitoring programs. And we've done this as well.

In Croatia, we launched a brand-new program. Romania, it's a brand-new program. They haven't done this before. So we think we could be great partners for a lot of these countries outside the U.S. and Europe. And we're seeing opportunities come up, and we thought it's time to capitalize on that as well. So yes, we have been looking for directors of sales in those 2 regions for Lat Am and Asia Pacific.

In Asia Pacific, specifically, there's actually a developed electronic monitoring market that we haven't yet accessed and our initial focus will be there in Australia and New Zealand. There are many different programs. They have a lot of experience doing that there. Some of the same players that we're displacing in Europe and the U.S. are over there, and we look forward to competing against them there as well.

Unknown Analyst

Sounds great. And secondly, I know there's a lot of focus on the U.S., but when it comes to Europe, there's a lot of opportunities there as well. And so maybe you can walk us through what you're seeing in terms of other opportunities outside of Italy and the U.K., which you mentioned on your previous call. If there's other opportunities outside of that, it would be great to hear about those as well.

Ordan Trabelsi

So I'll say there are many opportunities in Europe. And in the past, we had over 65% win rate in Europe. But recently, the last few programs we bid on, we won 3 out of 3. So sometimes that win rate is even as high as 100% over a long period of time. And there's some opportunities. We talked about Italy, we talk about England. England is not just the national opportunity, which is over GBP 150 million. There's also other small ones in different regions. It's a whole market that we're looking to enter. And there's other ones in Europe.

We don't always want to give the heads up to competition. So we try to keep it limited on exactly the names we're sharing where we plan to bid and expand to. But I think we've done an amazing job. The team here has done an amazing job of winning contract in Europe in new regions where we haven't had any past experience or relationships, and we've overcome all the hurdles to come in as a brand-new provider and displace the incumbents that they've had for a very long period of time, even over 20 years in many of these.

So we're still excited about the European projects and also they're much larger in size than the projects in the U.S. And we think a lot of our growth will continue to come from Europe. But at the same time, you see that in the U.S. market, things are starting to ramp up quickly, and we're having great references and great feedback from service providers who are not just aware of one 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, and these are savvy, they know they work with the technology a lot. They're not necessarily government officials, which might know one technology or the other. We think it's really good feedback and a good testament to where we're going in the U.S. So the U.S. market is 6x bigger than Europe, and it's, I think, going to be a nice part of our future growth potential. But meanwhile, as that grows, the Europe -- European market is doing great for us, and we expect to have continued wins and expansion there as well.

Operator

Your next question is coming from Sean Westropp from Deep Sail Capital.

Sean Westropp

A good quarter here. Just wanted to touch on Sweden a little bit. Kind of wondering on contract ramp. I know it's like you guys have a 9-year contract there. Is it going to be very front-loaded in '26 and '27 kind of similar to what we saw in Romania? Or do you think it's going to be more spread out? Like how is that looking?

Ordan Trabelsi

So we can't, at this point, express exactly how it's going to be a specific program, but we have shared that many times when the program is launched, there's initial plan and the customer likes what we're 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're deploying many contracts at a very high -- very fast pace with new technology deployments and new cycles. And so we're very well versed to support their, let's say, growing needs of speed and acceleration. So we're ready to deploy as fast as needed.

And as in many contracts in the past, we've seen the deployments be much faster than originally anticipated. And here, when you talk about Sweden, note, it's not just -- so they already have a program there. They're deploying a new one, but they're also looking to add on things like alcohol and other capabilities and things that we're also very ready to deploy. We're doing -- in many of our countries, we have multiple programs, 3, 4, 5 different programs. So that's very easy for us to add those modules. And then the amount of accounts that they're looking to grow significantly, we have the capacity to support that as well. So we can't say exactly how fast it will be, but we know we can support it.

Sean Westropp

And the fact that you guys already have a deployment there, does that mean it's a little faster and a little cheaper for you guys to deploy this additional larger contract there?

Ordan Trabelsi

That's a good question. By the standard competitive process, they can't give advantage to one vendor over other, even if they're the incumbent. But naturally, as you can expect, when you have experience in the country and you build a good reputation and you understand how things work, you can plan better and do things in a much faster and more effective fashion.

Sean Westropp

Great. That makes sense. Great. Just wanted to touch then on the U.S. growth. So in the press release, you noted the 171% recurring revenue growth. Can you just talk about what's driving that? Is that mainly contracts you won, kind of, 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's a little bit of a mix. I'd say that the initial projects when we started mid-2024 were much smaller in size, and they're growing as we continue to move forward. Our salespeople focus on larger and larger contracts, and we're 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're growing the amount of units.

And sometimes it could be, let's say, a service provider that has 1,000 units, and they'll start us off with 100 or 150 units because they like the technology, but then they'll see it's working really well and they could give more units and more units. And sometimes it's just a contract that the whole size county contract was 100 units, and that's bigger than what we had in the past. So we're active.

We still have a lot to deploy with the contracts we currently have announced. They're not at full capacity at all. Those are scaling up. We expect them to scale up more than the numbers that we disclosed. And 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's part of the active unit per unit per day recurring revenue charges.

Operator

[Operator Instructions] 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, and have a wonderful day. Thank you once again for your participation.