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

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: 

https://us06web.zoom.us/j/89556415958?pwd=xKCYjpZC4qc0QbhuTFkZD5jaRzBDOs.1

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

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 www.boscom.com.

For additional information, contact:

Matt Kreps, Managing Director

Darrow Associates

+1-214-597-8200

[email protected]

Eyal Cohen, CEO

+972-542525925

[email protected]

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.