BOS Reports Financial Results for the Fourth Quarter and Full Year 2025

Delivers Record Year Performance

Provides Initial 2026 Revenue and Net Income Guidance

RISHON LE ZION, Israel, March 31, 2026 (GLOBE NEWSWIRE) -- BOS Better Online Solutions Ltd. (BOSC) today reported financial results for the fourth quarter and full-year ended December 31, 2025, including record revenue and profitability.

Fourth Quarter 2025 Financial Highlights:

Revenues $12.6M +21.5% Compared to $10.4M in Q4 2024	EBITDA $944K +32% Compared to $715K in Q4 2024
Net Income $819K +68.9% Compared to $485K in Q4 2024	EPS $0.12 +50% Compared to $0.08 in Q4 2024
Cash & Equivalent $11.8M As of December 31, 2025	Contracted Backlog $24M As of December 31, 2025

Full Year 2025 Financial Highlights:

Revenues $50.6M +26.6% Compared to $39.9M in 2024	EBITDA $4.6M +42.6% Compared to $3.2M in 2024
Net Income $3.6M +57.0% Compared to $2.3M in 2024	EPS $0.59 +47.5% Compared to $0.40 in 2024

Eyal Cohen, Chief Executive Officer of BOS, stated: "We are pleased to report record revenues and net income for the full year 2025, capping an outstanding year of growth for BOS. We demonstrated sustained business momentum, most notably in our defense related business lines where we continue to see robust demand for both our supply chain and robotics solutions, and maintained our diligent operating discipline.

"Supply chain division revenues grew by 40% during the year, demonstrating the benefit of our global diversification strategy. We continue to focus on expanding our opportunities in this key sector through deeper engagement with existing customers, strategic wins with new customers and entry into additional global markets, such as India, which is a growing hub for subcontracting programs with Israeli defense customers.

"Our RFID division experienced a $665,000 operating loss for the full year, primarily due to a goodwill impairment charge of $1.2 million. Absent this charge, the division would have generated approximately $535,000 in operating income. The ongoing geopolitical tension in Israel since October 2023 negatively impacted the Israeli commercial market, which constitutes the primary revenue base for the RFID division; as a result, goodwill write-offs were recorded totaling $700,000 in 2024 and an additional $1.2 million in 2025. Q4 performance showed a 27% increase in revenues year-over-year, a positive indication that we can return this division to a growth trajectory in 2026."

"Finally, our Intelligent Robotics division continues to deliver steady profitability improvements year-over-year, as well as increased backlog, demonstrating our team's ability to drive operational excellence across all business units.

"Bringing our record year together, we generated strong operating cash flow and working capital performance that increased cash and cash equivalents to a record $11.8 million, providing a solid foundation to support our continued investment in strategic growth."

Cohen concluded: "We continue our policy of issuing a conservative initial outlook, with updates provided as the year progresses. While we maintain strong exposure to the defense markets, ongoing geopolitical tensions lead us to initially project 2026 at a level consistent with 2025 revenues of $51 million and net income of $3.6 million."

Investor Conference Call

Date & Time March 31, 2026 at 8:30 a.m

Format Video conference call followed by a question-and-answer session after management's presentation

Recording For those unable to participate in the live call, a recording will be available the following day on the BOS website: www.boscom.com

To access the video conference meeting, please click on the following link:

https://us06web.zoom.us/j/7481721806?pwd=pmXNiVvvvuicaar9aMkZVqRUNaqK3s.1&omn=85823576

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 operates three specialized divisions:

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

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

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

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

Contacts:

Matt Kreps, Managing Director | Darrow Associates | +1-214-597-8200 | [email protected]

Eyal Cohen, CEO | BOS | +972-542525925 | [email protected]

Use of Non-GAAP Financial Information

BOS reports financial results in accordance with U.S. GAAP and also provides certain 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 prepared in accordance with GAAP. The Company uses these non-GAAP measures to evaluate and manage its operations internally and is providing this information to assist investors in performing additional financial analysis 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.

Contracted backlog

Represents the estimated value of firm customer orders under contract as of the date indicated. Backlog is not a guarantee of future revenues, and may be canceled, modified, or delayed by customers.

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 a 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 ongoing armed conflict and security conditions in Israel and 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)
		Year ended December 31,								Three months ended December 31,
			2025				2024				2025				2024
		(Audited)								(Audited)
Revenues		$	50,569			$	39,949			$	12,623			$	10,388
Cost of revenues			38,494				30,655				9,602				8,007
Gross profit			12,075				9,294				3,021				2,381
Operating costs and expenses:
Research and development			178				175				47				50
Sales and marketing			5,242				4,394				1,336				1,118
General and administrative			2,547				2,113				826				656
Impairment of intangible assets			-				466
Impairment of Goodwill			1,200				707				500				1,173
Total operating costs and expenses			9,167				7,855				2,709				2,997
Operating income			2,908				1,439				312				(616	)
Financial income (expenses), net			590				(139	)			208				99
Income before taxes on income			3,498				1,300				520				(517	)
Taxes on income (income taxes)			(113	)			(1,000	)			(299	)			(1,002	)
Net income		$	3,611			$	2,300			$	819			$	485
Basic net income per share		$	0.59			$	0.40			$	0.12			$	0.08
Diluted net income per share		$	0.57			$	0.39			$	0.12			$	0.08
Weighted average number of shares used in computing basic net income per share			6,161				5,756				6,614				5,776
Weighted average number of shares used in computing diluted net income per share			6,312				5,887				6,779				5,975
Number of outstanding shares as of December 31, 2025 and 2024			7,029				5,793				7,029				5,793

CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
		December 31, 2025			December 31, 2024
		(Audited)			(Audited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	11,825		$	3,368
Restricted bank deposits			98			185
Trade receivables			15,638			11,787
Other receivable and prepaid expenses			1,440			1,150
Inventories			6,541			7,870
Total current assets			35,542			24,360
OTHER LONG-TERM ASSETS			128			177
PROPERTY AND EQUIPMENT, NET			3,449			3,417
OPERATING LEASE RIGHT-OF-USE ASSETS, NET			926			779
DEFERRED TAX ASSETS			1,250			1,000
OTHER INTANGIBLE ASSETS, NET			361			422
GOODWILL			2,988			4,188
Total assets		$	44,644		$	34,343

CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
		December 31, 2025			December 31, 2024
		(Audited)			(Audited)
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short term loan and Current maturities of long-term loans		$	775		$	439
Operating lease liabilities, current			251			176
Trade payables			6,778			6,362
Employees and payroll accruals			1,266			1,087
Deferred revenues			3,129			2,003
Accrued expenses and other liabilities			983			598
Total current liabilities			13,182			10,665
LONG-TERM LIABILITIES:
Long-term loans, net of current maturities			972			980
Operating lease liabilities, non-current			768			576
Long term deferred revenues			286			293
Accrued severance pay			732			498
Total long-term liabilities			2,758			2,347
TOTAL SHAREHOLDERS' EQUITY			28,704			21,331
Total liabilities and shareholders' equity		$	44,644		$	34,343

CONDENSED CONSOLIDATED EBITDA
(U.S. dollars in thousands)
		Year ended December 31,						Three months ended December 31,
			2025			2024			2025			2024
Operating income (loss)		$	2,908		$	1,439		$	312		$	(616	)
Add:
Impairment of Goodwill			1,200			1,173			500			1,173
Amortization of intangible assets			60			190			15			47
Stock-based compensation			41			74			10			11
Depreciation			419			370			107			100
EBITDA		$	4,628		$	3,246		$	944		$	715

SEGMENT INFORMATION
(U.S. dollars in thousands)
			RFID					Supply Chain Solutions				Intelligent Robotics				Intercompany				Consolidated
								Year ended December 31, 2025
Revenues		$	13,587				$	35,545			$	1,847			$	(410	)		$	50,569
Gross profit			2,900					8,745				430				-				12,075
Allocated operating expenses			2,365					4,277				276				-				6,918
Impairment and amortization of intangible assets			1,200					60				-								1,260
Unallocated operating expenses*			-					-				-								989
Income (loss) from operations		$	(665		)		$	4,408			$	154				-				2,908
Financial income and tax on income																				703
Net income																			$	3,611
			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 on income																				861
Net income																			$	2,300

* 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 December 31, 2025
Revenues		$	4,379				$	7,695			$	668			$	(119	)		$	12,623
Gross profit			1,092					1,861				68				-				3,021
Allocated operating expenses			727					1,073				65				-				1,865
Impairment and amortization of intangible assets			500					15				-								515
Unallocated operating expenses*																-				329
Income from operations		$	(135		)		$	773			$	3				-				312
Financial income and tax on income																				507
Net income																			$	819
			RFID					Supply Chain Solutions				Intelligent Robotics				Intercompany				Consolidated
								Three months ended December 31, 2024
Revenues		$	3,445				$	6,806			$	171				(34	)		$	10,388
Gross profit			1,151					1,186				44				-				2,381
Allocated operating expenses			605					883				84				-				1,572
Impairment of goodwill and intangible assets			984					189				-								1,173
Unallocated operating expenses*																				252
Income (loss) from operations		$	(438		)		$	114			$	(40	)							(616			)
Financial expenses and tax on income																				1,101
Net income																			$	485

* 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.