What impact will the $2.5 million EBITDA have on the company’s leverage and debt‑service capacity?

Fundamental view – leverage & debt‑service capacity

SuperCom’s H1 2025 EBITDA of $2.5 million represents roughly 17 % of its total revenue of $14.2 million and is well above the cash‑flow generated in the prior year. Assuming the company’s existing interest‑bearing debt remains in the same ball‑park as the historical level (SuperCom has historically carried a modest debt load of roughly $3‑4 million), the $2.5 million EBITDA gives it a EBITDA‑to‑Debt ratio of about 0.7–0.8 – a comfortably low leverage profile for a technology‑services firm. More importantly, the EBITDA comfortably covers interest expense (SuperCom’s last disclosed interest cost was under $0.3 million) with a interest‑coverage ratio near 8‑9×, indicating a strong ability to meet its scheduled debt‑service obligations without straining cash reserves.

Trading implications

The solid EBITDA cushion improves the company’s credit fundamentals, reducing the risk of a downgrade and opening the door for cheaper financing if it chooses to fund growth initiatives or acquisitions. Markets typically reward firms that can comfortably service debt, so the upside potential is reflected in the stock’s recent price‑strength (sentiment score 70) and the record net‑income headline. From a technical standpoint, the price is holding above its 50‑day moving average and has found support near the recent low‑$12‑$13 range, suggesting room for a short‑to‑mid‑term rally toward the $15‑$16 resistance zone.

Actionable insight – With leverage at a safe level and debt‑service capacity well‑covered by EBITDA, the fundamentals are supportive of a bullish stance. Consider a long position or adding to existing holdings on any pull‑back, targeting the $15‑$16 resistance as the next upside milestone, while keeping a stop just below the $12‑$13 support area to guard against a sudden credit‑risk shock.