HUB Cyber Security Ltd. (NASDAQ: HUBC) has secured a NIS 16 million (≈US$5 million) contract with the Israeli Ministry of Interior to deploy, integrate, and provide ongoing operational support for secure cyber and data‑protection capabilities in mission‑critical government environments over a period of up to two years. The deal is expected to generate approximately NIS 14.5 million (≈US$4.5 million) in revenue for HUB, representing a high‑margin service stream that will be executed through the company’s Professional Services division.
The contract marks HUB’s third institutional award in December, underscoring sustained demand for its Secured Data Fabric platform and confidential‑computing solutions. Expanding its presence in the Israeli public‑sector market, the win signals confidence from a key national agency in HUB’s AI‑powered data‑fabric technology and positions the company for additional high‑value government contracts in similar regulated environments.
Financially, the contract adds to HUB’s backlog and revenue visibility at a time when the company has been navigating a significant debt burden and a negative shareholders’ equity deficit. In 2024, HUB reported total revenue of $29.56 million with a gross margin of 17.07 %. In the second half of 2024, revenue rose to $13.8 million with a gross margin of 25.6 %, and in the first half of 2025 revenue was $15.1 million with a gross margin of 23 %. The new contract will help offset recent revenue declines and support the company’s ongoing financial restructuring efforts.
CEO Noah Hershcoviz said, “Governments and regulated institutions seek to engage HUB where systems are critical and the margin for error is zero.” The statement highlights the high‑stakes nature of the work and the company’s focus on delivering secure, high‑margin services to mission‑critical clients.
Investors reacted positively to the announcement, reflecting confidence in HUB’s ability to secure high‑value government contracts. While analyst coverage remains limited and a sell consensus has been noted, the contract’s strategic importance and the company’s demonstrated ability to win multiple institutional awards in a short period suggest a favorable outlook for future growth in the public‑sector cybersecurity market.
Overall, the NIS 16 million contract strengthens HUB’s high‑margin revenue base, enhances its backlog, and reinforces its strategy of securing long‑term, recurring revenue from regulated sectors. The win positions HUB to pursue additional government contracts and to leverage its Secured Data Fabric platform in other high‑value markets, supporting the company’s long‑term growth trajectory.
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