HUB Cyber Security Rallies on Third Israeli Government Contract Win
Company secures NIS 16 million deal with Ministry of Interior, signaling growing momentum with government agencies.
Shares of HUB Cyber Security (NASDAQ: HUBC) surged more than 10% in trading after the Tel Aviv-based company announced it had secured a significant contract with the Israeli government, its third such win this month alone.
The latest award is a NIS 16 million (approximately $4.3 million) contract from the Israeli Ministry of Interior. According to the company's official announcement, the project is expected to generate around NIS 14.5 million in revenue over a two-year period. The deal was secured through a competitive procurement process and will be managed by HUB's Professional Services division, focusing on deploying and supporting critical cyber and data protection systems.
The contract win builds on a recent pattern of success for the cybersecurity firm. It follows the announcement of two other deals with government bodies earlier in the month. While the financial terms of the two prior contracts were not disclosed, the succession of wins in a short period suggests growing momentum and deepening trust with sensitive government clients.
"We are proud to be consistently selected to lead and deploy mission-critical cyber security projects for the Israeli government," stated Noah Hershcoviz, CEO of HUB Cyber Security. He added that the wins demonstrate "trust earned through execution and delivery," highlighting that governments engage HUB for critical systems where there is no margin for error.
The news provided a significant boost to the company's stock, which has seen considerable volatility over the past year. Shares climbed to approximately $0.43, reflecting a relief rally for the nano-cap firm, which holds a market capitalization of just over $14 million. The stock has traded in a wide range over the last 52 weeks, between a low of $0.32 and a high of $14.00, underscoring its speculative nature.
HUB Cyber Security, founded by veterans of the Israeli Defense Forces' intelligence units, specializes in confidential computing and protecting clients' sensitive data from hardware-level intrusions. These recurring government contracts are crucial for the company, as they provide a stable revenue base and increase its backlog, enhancing future revenue visibility. However, HUBC remains a largely under-the-radar company on Wall Street, with negligible coverage from institutional analysts.
While the series of contract wins provides a strong validation of HUB's technology and strategic position within Israel's national security apparatus, the company's stock performance reflects the high-risk, high-reward nature of a nano-cap technology firm still in its growth phase. Investors will be watching closely to see if this operational momentum can translate into sustained financial performance and a more stable market valuation.