BOS Reports Record $15 Million in Revenues for the First Quarter of 2025

RISHON LE ZION, Israel, May 29, 2025 (GLOBE NEWSWIRE) -- BOS Better Online Solutions Ltd. ("BOS" or the "Company") (NASDAQ: BOSC) reported its financial results for the first quarter of the year 2025.

First Quarter 2025 Financial Highlights:

• Revenues increased by 33.1% to $15.0 million from $11.3 million in the first quarter of the year 2024;
  
  
  
  
• Gross profit margin improved to 23.9% compared to 22.7% in the first quarter of the year 2024;
  
  
  
  
• EBITDA increased by 86.2% to $1.9 million compared to $1.0 million in the first quarter of the year 2024;
  
  
  
  
• Operating expenses increased by only 7.7% compared to the 33.1% increase in revenues, demonstrating operating leverage;
  
  
  
  
• Net income increased by 82.3% to $1.35 million or $0.23 per basic share compared to $741,000 or $0.13 per basic share in the first quarter of the year 2024;
  
  
  
  
• Backlog was $22 million as of March 31, 2025 compared to $27 million as of December 31, 2024.
  
  

Eyal Cohen, Chief Executive Officer at BOS, stated: “I am pleased to report record revenues and record net income in the first quarter, demonstrating the success of our strategic focus on the defense sector and diligent operating efficiency. We continue to capitalize on the growing opportunities in this rapidly changing sector by increasing contracting activity with existing customers and securing new customers.”

“Based on our first quarter performance and contracted backlog, we are optimistic about surpassing our full-year outlook for 2025, which are revenues of $44 million and net income of $2.5 million,” Cohen concluded.

“Our record results in the first quarter reflect BOS’s long-term investments in developing a diverse product offering and establishing a robust operational and financial framework, all of which are specifically designed to meet the evolving and distinct demands of the defense industry,” said Avidan Zelicovsky, BOS President.

BOS will host a video conference meeting on May 29, 2024 at 8:30 a.m. EDT. A question-and-answer session will follow management’s presentation. To access the video conference meeting, please click on the following link:

For those unable to participate in the video conference, a recording of the meeting will be available the next day on the BOS website: 

About BOS

BOS integrates cutting-edge technologies to streamline and enhance supply chain operations for global customers in the aerospace, defense, industrial and retail sectors. The Company integrates three specialized divisions:

- Intelligent Robotics Division: Automates industrial and logistics inventory processes through advanced robotics technologies, improving efficiency and precision.

- RFID Division: Optimizes inventory management with state-of-the-art solutions for marking and tracking, ensuring real-time visibility and control.

- Supply Chain Division: Integrates franchised components directly into customer products, meeting their evolving needs for developing innovative solutions.

For more information on BOS Better Online Solutions Ltd., visit .

For additional information, contact:

Matt Kreps, Managing Director

Darrow Associates

Eyal Cohen, CEO

Use of Non-GAAP Financial Information

BOS reports financial results in accordance with US GAAP and herein provides some non-GAAP measures. These non-GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures. These non-GAAP measures are intended to supplement the Company's presentation of its financial results that are prepared in accordance with GAAP. The Company uses the non-GAAP measures presented to evaluate and manage the Company's operations internally. The Company is also providing this information to assist investors in performing additional financial analysis that is consistent with financial models developed by research analysts who follow the Company. The reconciliation set forth below is provided in accordance with Regulation G and reconciles the non-GAAP financial measures with the most directly comparable GAAP financial measures.

Safe Harbor Regarding Forward-Looking Statements



The forward-looking statements contained herein reflect management's current views with respect to future events and financial performance. These forward-looking statements are subject to certain risks and uncertainties that could cause the actual results to differ materially from those in the forward-looking statements, all of which are difficult to predict and many of which are beyond the control of BOS. These risk factors and uncertainties include, amongst others, the dependency of sales being generated from one or few major customers, the uncertainty of BOS being able to maintain current gross profit margins, inability to keep up or ahead of technology and to succeed in a highly competitive industry, inability to maintain marketing and distribution arrangements and to expand our overseas markets, uncertainty with respect to the prospects of legal claims against BOS, the effect of exchange rate fluctuations, general worldwide economic conditions, the effect of the war against the Hamas and other parties in the region, the continued availability of financing for working capital purposes and to refinance outstanding indebtedness; and additional risks and uncertainties detailed in BOS' periodic reports and registration statements filed with the US Securities and Exchange Commission. BOS undertakes no obligation to publicly update or revise any such forward-looking statements to reflect any change in its expectations or in events, conditions or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements.

CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands
		Three months ended March 31,										Year ended December 31,
			2025					2024					2024
			(Unaudited)					(Unaudited)						(Audited)
Revenues		$	15,026				$	11,287				$	39,949
Cost of revenues			11,437					8,727					30,655
Gross profit			3,589					2,560					9,294
Operating costs and expenses:
Research and development			41					44					175
Sales and marketing			1,263					1,162					4,394
General and administrative			542					508					2,113
Impairment of intangible assets and Goodwill			-					-					1,173
Total operating costs and expenses			1,846					1,714					7,855
Operating income			1,743					846					1,439
Financial expenses, net			(272	)				(105	)				(139		)
Income before taxes on income			1,471					741					1,300
Income taxes benefits (expenses)			(120	)				-					1,000
Net income		$	1,351				$	741				$	2,300
Basic net income per share		$	0.23				$	0.13				$	0.40
Diluted net income per share		$	0.22				$	0.13				$	0.39
Weighted average number of shares used in computing basic net income per share			5,900					5,748					5,756
Weighted average number of shares used in computing diluted net income per share			6,273					5,828					5,887
Number of outstanding shares as of March 31, 2025 and 2024 and December 31, 2024			5,924					5,748					5,793

CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
		March 31, 2025				December 31, 2024
		(Unaudited)				(Audited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	3,844			$	3,368
Restricted bank deposits			66				185
Trade receivables, net			15,839				11,787
Other accounts receivable and prepaid expenses			1,235				1,150
Inventories			7,505				7,870
Total current assets			28,489				24,360
LONG-TERM ASSETS			167				177
PROPERTY AND EQUIPMENT, NET			3,362				3,417
OPERATING LEASE RIGHT-OF-USE ASSETS, NET			727				779
DEFERRED TAX ASSETS			981				1,000
OTHER INTANGIBLE ASSETS, NET			407				422
GOODWILL			4,188				4,188
Total assets		$	38,321			$	34,343

CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
		March 31, 2025				December 31, 2024
		(Unaudited)				(Audited)
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term loans		$	342			$	439
Operating lease liabilities, current			161				176
Trade payables			7, 769				6,362
Employees and payroll accruals			1,128				1,087
Deferred revenues			2,543				2,003
Accrued expenses and other liabilities			1,091				598
Total current liabilities			13,034				10,665
LONG-TERM LIABILITIES:
Long-term loans, net of current maturities			921				980
Operating lease liabilities, non-current			530				576
Long-term deferred revenues			273				293
Accrued severance pay, net			514				498
Total long-term liabilities			2,238				2,347
TOTAL SHAREHOLDERS' EQUITY			23,049				21,331
Total liabilities and shareholders' equity		$	38, 321			$	34,343

CONDENSED CONSOLIDATED EBITDA
(U.S. dollars in thousands)
		Three months ended March 31,								Year ended December 31,
			2025				2024					2024
Operating income		$	1,743			$	846				$	1,439
Add:
Impairment of Goodwill and other intangible assets							-					1,173
Amortization of intangible assets			15				47					190
Stock-based compensation			9				21					74
Depreciation			101				89					370
EBITDA		$	1,868			$	1,003				$	3,246

SEGMENT INFORMATION
(U.S. dollars in thousands)
		RFID				Supply Chain Solutions				Intelligent Robotics			Intercompany			Consolidated
											Three months ended March 31, 2025
Revenues		$	3,259			$	11,390				496		(119	)		$	15,026
Gross profit			707				2,756				126		-				3,589
Allocated operating expenses			529				1,048				68		-				1,645
Unallocated operating expenses*							-				-						201
Income from operations		$	178			$	1,708			$	58						1,743
Financial expenses and tax on income																	(392	)
Net income																$	1,351

		RFID				Supply Chain Solutions			Intelligent Robotics			Intercompany			Consolidated
								Three months ended March 31, 2024
Revenues		$	3,683		$	7,356		250				(2	)			$	11,287
Gross profit			992			1,484		84				-					2,560
Allocated operating expenses			565			909		62				-					1,536
Unallocated operating expenses*			-			-			-								178
Income  from operations		$	427		$	575		$	22								846
Financial expenses and tax on income																	(105	)
Net income																$	741

SEGMENT INFORMATION
(U.S. dollars in thousands)
			RFID					Supply Chain Solutions			Intelligent Robotics					Intercompany					Consolidated
							Year ended December 31, 2024
Revenues			$	12,877				$	25,829			1,410				(167			)			$	39,949
Gross profit				3,533					5,430			331											9,294
Allocated operating expenses				2,273					3,338			274											5,885
Impairment of goodwill and intangible assets				984					189			-											1,173
Unallocated operating expenses*				-					-			-											797
Income from operations			$	276				$	1,903		$	57											1,439
Financial expenses and tax benefit																							861
Net income																						$	2,300

*Unallocated operating expenses include costs not specific to a particular segment but general to the entire group, such as expenses incurred for insurance of directors and officers, public company fees, legal fees, and other similar corporate costs.