Ladies and gentlemen, good morning and welcome to Supercom's second quarter 2026 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 zero. 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'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 20F and Form 6K 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, 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.

Hello, everyone. We're pleased to report another record quarter for Supercom. In the second quarter of 2026, we achieved more than eight-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 build on 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, Thank you for joining us. Revenue increased 13.3% to $8.1 million compared with $7.1 million in the second quarter of 2025. Gross profit increased 16% 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 their prior year period. EBITDA increased by 55.6% 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. Gap earnings per share were approximately $0.20, and non-gap 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 crash equivalents totaled approximately $7.4 million as of June 30, 2026, compared to $9.8 million at the end of June 30, 2021. During the quarter, we strategically deployed capital to support working capital needs and accelerated 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 30th, an increase of 28% from approximately $37 million at June 30th, 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 ages of AI adoption. As we continue to introduce new products, 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 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 win across all five 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 and within the markets where we are currently established. Over the four-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 multi-year 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. 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's 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 five 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 British pounds. 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 with our technology, we're in a better position 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 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 peer 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'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 five-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 One 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 six times 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 six months or longer, particularly when a customer wants to transition from an incumbent provider and replaced 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 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 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'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 turn the call back to the operator for questions.

Thank you. Ladies and gentlemen, if you wish to ask a question on today's call, you will need to press star, then number one on your telephone. If you're 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 two. One moment, please, for the first question. And our first question today is coming from Matthew Galinko with Maxim Group. Matthew, your line is live. Please go ahead.

Hey, congratulations on another strong quarter. Can you maybe touch on... Sure. 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...

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 offender counts or monitoring counts, do you anticipate that that number could actually accelerate from the current rate of growth?

The number's been accelerating this year. I think in the last quarter we announced up to 180%. Now we're at 290%. and so on. 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. There was smaller county projects that had been growing in size, and now we're at a level of roughly 100 to 250. Of course, there's much larger projects in the U.S., and some of our projects in Europe, as we discussed, Sweden was 1,000 units and expected to be 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 after project, 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 two years, we expanded into 19 new states, and it took us much longer to reach that kind of presence in Europe.

Got it. Very good. I think you touched on Romania headwinds, but is it reasonable? 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?

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 the 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 was an 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 Thank you for joining us. And we're excited about the path ahead.

Thanks. 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 are 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?

So we touched on some of this also in the past. We are taking a lot of 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 in 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, 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. I'm 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 inventory management, other processes 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.

Thank you. Your next question is coming from Greg Mesnias from Kingswood. Greg, your line is live. Please go ahead.

Thank you. Hi, Ordan. How are you? I'm great. How are you doing?

Good, good.

Thanks for joining. Two questions. First one's 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?

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 sensitive, 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 sense 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 at the 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. And they provide the penetration tests, and they do the cybersecurity audits. In Europe, the national projects, there's 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 with the two 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 the revenue recognition is consistent. That's throughout our customers in the US, whether it's direct agency customer or through a service provider. But in the US, we don't have subcontractors that we have to put some of the costs to. So when we receive things, they're already at 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 it on-premise deployment where you're buying servers and installing the firewalls and the infrastructure and connecting into their database, into their census, and providing the deployment work that could take as quick as three 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 of 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.

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

So when you say renewal period, what do you mean?

After, say, two or three years, the contract is renegotiated.

So typically the contracts are three to five years, the initial term. It could be three years, two expansions, or it could be five years with some expansions, but then it goes up for rebid. 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 the three to five 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 a long-term relationship that we believe will go on for many years with each of these customers that we have a strong deployment with.

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

The new customer onboarding costs. Some of the projects are recognized as revenue percentage completion. Not exactly capitalizing costs, but for some components, you can look at it indirectly as that. But it is sometimes a milestone for... Thank you. Your next question is coming from Jack Giuliano from Blavin Capital Management. Jack, your line is live. Please go ahead.

Hey, Ordan. Thanks for letting us join the call and congrats on the results. Thank you. Just two quick questions from us. Firstly, in terms of opportunities, you know, outside of Europe and the Americas, we noticed that you hired two directors of sales or are actively hiring two directors of sales in APAC and LATAM. and so could you potentially tell us about the opportunities you're seeing there and then the timelines on those as well?

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 US and Europe as well and Supercom, we have over 38 years of experience serving over 40 nations around the world. and many others. 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 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, yeah, we have now looking for directors of sales in those two regions, Latam and Asia-Pacific. And Asia-Pacific specifically has actually developed and the electronic monitoring market that we haven't yet accessed. 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. We look forward to competing against them there as well.

It sounds great. 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. Maybe you can walk us through what you're seeing in terms of other opportunities outside of Italy and the UK, which you mentioned on your previous call. If there's other opportunities outside of that, it'd be great to hear about those as well.

I'll say there are many opportunities in Europe. In the past, we had over 65% win rate in Europe. Recently, the last few programs we bid on, we won three out of three. Sometimes that win rate is even as high as 100% over prolonged periods of time. And there's some opportunities. We talked about Italy, we talked about England. England is not just the national opportunity, which is over 150 million pounds. 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 a heads up to competition, so we try to keep it limited on exactly the names we're sharing and where we plan to... to bid and expand to. But I think we've done an amazing job, the team here has done an amazing job of winning Contra 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 a service provider sees all the technology in the industry, and if they choose to take our technology on and display it to others, then these are savvy 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. The U.S. market is six times 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 European market is doing great for us, and we expect to have continued wins and expansion there as well.

Sounds great. Thanks, Ordan.

Thank you.

Thank you. Your next question is coming from Sean Westrop from DeepSail Capital. Sean, your line is live. Please go ahead.

Thank you. Thanks, Ordan, for having the call and a good quarter here. Just wanted to touch on Sweden a little bit. Kind of wondering on contract ramp. I know it's like a You guys have a nine-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? How is that looking?

We can't at this point express exactly how it's going to be in a specific program, but we have shared that many times when the programs launch, there's the initial plan and the customer Lester Villeneuve 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, 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. In many of our countries, we have multiple programs, three, four, five 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.

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?

That's a good question. By the standard competitive process, they can't give advantage to one vendor over the 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 that are much faster and more effective fashion. Great. That makes sense.

Great. I 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 that just kind of a mix of everything?

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 sales people 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. Sometimes it could be a service provider that has a thousand 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 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.

Great.

All right. Great. Thanks a lot. That's all I had.

Thank you very much.

Thank you. Should anyone have any further questions at this time, you may press star 1 on your telephone keypad. Once again, if there are any further questions at this time, please press star one on your keypad to join the queue. Please hold a moment while we re-poll 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.

Thank you, Operator, and I want to thank all of you for participating in today's conference call and for your continued interest in Super Comp. 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.

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.