BOSC BOS Better Online Solutions

BOS Continues Strong Growth Trajectory in Q2 2025, Sales Increase 36% Year-Over-Year

BOS Continues Strong Growth Trajectory in Q2 2025, Sales Increase 36% Year-Over-Year

Company Raises Full-Year Revenue and Net Income Guidance

RISHON LE ZION, Israel, Aug. 21, 2025 (GLOBE NEWSWIRE) -- BOS Better Online Solutions Ltd. ("BOS" or the "Company") (Nasdaq: BOSC) reported financial results for the second quarter and first half ended June 30, 2025, continuing its growth trajectory.

Second Quarter 2025 Financial Highlights

  • Revenue increased 36.4% to $11.5 million, compared to $8.5 million in Q2 2024.
  • Net income increased 52.7% to $765,000, or $0.13 per basic share, compared to $501,000, or $0.09 per basic share, in Q2 2024.
  • EBITDA increased to $898,000 compared to $817,000 in Q2 2024.
  • Contracted Backlog was $24 million as of June 30, 2025, compared to $22 million on March 31, 2025, and $27 million on December 31, 2024.
  • Cash and Equivalents were $5.2 million as of June 30, 2025, compared to $3.6 million as of December 31, 2024.



Eyal Cohen, Chief Executive Officer of BOS, stated: "Our strategic focus on the defense sector, combined with efforts to diversify our customer base and expand our product offerings, delivered robust 36% revenue growth in the second quarter. Year-to-date, we have achieved a record $26.5 million in sales and record net income of $2.1 million, or $0.36 per share.

"Based on these strong results and contracted activity for the second half of the year with both existing and new customers, we are raising our 2025 financial outlook. We now expect revenues between $45 million and $48 million (previously $44 million) and net income between $2.6 million and $3.1 million (previously $2.5 million) for the full year.

"With $24 million in shareholders' equity and $5.2 million in cash, we have established a solid financial foundation to execute our expansion plans while maintaining operational stability," Cohen concluded.

Moshe Zeltzer, Chief Financial Officer of BOS, stated: "While we continued to achieve strong sales growth, we are focused on addressing temporary margin pressures in our RFID division. During the second quarter, consolidated gross profit margin was 22.8% compared to 26.0% in the prior year quarter, primarily driven by temporary challenges in our RFID division.

"The RFID division's gross profit margin decreased to 19.1% from 21.1% in the prior year quarter, due to operational inefficiencies that we have identified and are actively addressing through comprehensive restructuring initiatives. We expect these measures to return the RFID division to normalized performance levels of approximately 21% gross margin by the fourth quarter of 2025.

"The Supply Chain division's gross profit margin was 24% in Q2 2025, compared to 28% in Q2 2024, which had benefited from a particularly favorable product mix.

"In connection with the RFID restructuring initiatives, the Company recorded a non-cash goodwill impairment charge of $700,000. This charge was largely offset by a $696,000 gain from the appreciation of the New Israeli Shekel (NIS) against the US dollar in the second quarter," Zeltzer concluded.

Investor Conference Call

BOS will host a video conference meeting on August 21, 2025 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 (except share and per share numbers)
 
  Six months ended

June 30,
 Three months ended

June 30,
  2025 2024 2025 2024
  (Unaudited) (Unaudited)
     
Revenues $26,553  $19,734  $11,527  $8,447 
Cost of revenues  20,334   14,976   8,896   6,249 
Gross profit  6,219   4,758   2,631   2,198 
                 
Operating costs and expenses:                
Research and development  87   84   45   40 
Sales and marketing  2,540   2,213   1,277   1,051 
General and administrative  1,081   956   539   448 
Impairment of Goodwill  700   -   700   - 
Total operating costs and expenses  4,408   3,253   2,561   1,539 
                 
Operating income  1,811   1,505   70   659 
Financial income (expenses), net  424   (262)  696   (157)
Income before taxes on income  2,235   1,243   766   502 
Taxes on income  121   1   1   1 
Net income $2,114  $1,242  $765  $501 
                 
Basic net income per share $0.36  $0.22  $0.13  $0.09 
Diluted net income per share $0.33  $0.21  $0.12  $0.09 
Weighted average number of shares used in computing basic net income per share  5,925   5,748   5,950   5,748 
Weighted average number of shares used in computing diluted net income per share  6,385   5,833   6,438   5,837 
                 
Number of outstanding shares as of June 30, 2025 and  2024  6,060   5,748   6,060   5,748 



 
CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
 
  June 30,

2025
 December 31,

2024
   (Unaudited)   (Audited) 
ASSETS        
         
CURRENT ASSETS:        
Cash and cash equivalents $5,170  $3,368 
Restricted bank deposits  65   185 
Trade receivables  15,689   11,787 
Other accounts receivable and prepaid expenses  1,165   1,150 
Inventories  6,917   7,870 
         
Total current assets  29,006   24,360 
         
LONG-TERM ASSETS  146   177 
         
PROPERTY AND EQUIPMENT, NET  3,483   3,417 
         
OPERATING LEASE RIGHT-OF-USE ASSETS, NET  834   779 
         
DEFERRED TAX ASSETS  1,082   1,000 
         
OTHER INTANGIBLE ASSETS, NET  392   422 
         
GOODWILL  3,488   4,188 
         
Total assets $38,431  $34,343 



 
CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
 
  June 30,

2025
 December 31,

2024
  (Unaudited) (Audited)
     
LIABILITIES AND SHAREHOLDERS' EQUITY        
         
CURRENT LIABILITIES:        
Current maturities of long term loans $278  $439 
Operating lease liabilities, current  223   176 
Trade payables  6,088   6,362 
Employees and payroll accruals  1,072   1,087 
Deferred revenues  3,174   2,003 
Accrued expenses and other liabilities  844   598 
         
Total current liabilities  11,679   10,665 
         
LONG-TERM LIABILITIES:        
Long-term loans, net of current maturities  971   980 
Operating lease liabilities, non-current  652   576 
Long term deferred revenues  290   293 
Accrued severance pay  609   498 
         
Total long-term liabilities  2,522   2,347 
         
         
TOTAL SHAREHOLDERS' EQUITY  24,230   21,331 
         
         
Total liabilities and shareholders' equity $38,431  $34,343 



 
CONDENSED CONSOLIDATED EBITDA
(U.S. dollars in thousands)
 
  Six months ended

June 30,
 Three months ended

June 30,
  2025 2024 2025 2024
         
Operating income $1,811  $1,505  $70  $659 
  Add:                
Impairment of Goodwill  700   -   700   - 
Amortization of intangible assets  30   95   15   47 
Stock-based compensation  20   42   10   21 
Depreciation  204   179   103   90 
EBITDA $2,765  $1,821  $898  $817 



 
SEGMENT INFORMATION
(U.S. dollars in thousands)
 
  RFID Supply

Chain

Solutions
 Intelligent

Robotics
 Intercompany Consolidated
  Six months ended June 30,

2025
           
           
Revenues $6,168  $19,734  $868  $(217 $26,553 
                     
Gross profit  1,261   4,753   205   -   6,219 
                     
Allocated operating expenses  1,060   2,076   141   -   3,277 
                     
Impairment of goodwill and intangible assets  700   30   -       730 
                     
Unallocated operating expenses*  -   -   -       401 
                     
Income (loss) from operations $(499) $2,647  $64   -   1,811 
                     
Financial income and tax on income                  303 
                     
Net income                 $2,114 
                     
                     
   RFID   Supply

Chain

Solutions
   Intelligent

Robotics
   Intercompany   Consolidated 
   Six months ended June 30,

2024
 
                     
                     
Revenues $6,662  $12,687  $401  $(16 $19,734 
                     
Gross profit  1,620   2,988   150   -   4,758 
                     
Allocated operating expenses  1,103   1,683   122   -   2,908 
                     
Unallocated operating expenses*  -   -   -       345 
                     
Income from operations $517  $1,305  $28   -   1,505 
                     
Financial expenses and tax on income                  (263)
                     
Net income                 $1,242 
                     

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

 
SEGMENT INFORMATION
(U.S. dollars in thousands)
 
  RFID Supply

Chain

Solutions
 Intelligent

Robotics
 Intercompany Consolidated
  Three months ended June 30,

2025
           
           
Revenues $2,910  $8,344  $371  $(98 $11,527 
                     
Gross profit  555   1,997   79   -   2,631 
                     
Allocated operating expenses  531   1,042   73   -   1,646 
                     
Impairment of goodwill and intangible assets  700   15   -       715 
                     
Unallocated operating expenses*              -   200 
                     
Income (loss) from operations $(676) $940  $6   -   70 
                     
Financial income and tax on income                  695 
                     
Net income                 $765 
                     
                     
   RFID    Supply

Chain

Solutions
   Intelligent

Robotics
   Intercompany   Consolidated  
   Three months ended June 30,

2024
 
                     
                     
Revenues $2,979  $5,330  $152  $(14 $8,447 
                     
Gross profit  629   1,503   66   -   2,198 
                     
Allocated operating expenses  538   774   60   -   1,372 
                     
Unallocated operating expenses*              -   167 
                     
Income from operations $91  $729  $6   -   659 
                     
Financial expenses and tax on income                  (158)
                     
Net income                 $501 
                     

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



EN
21/08/2025

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