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

1. BOSC's Q2 revenue rose by 36.4% year-over-year. 2. Net income increased by 52.7% to $765,000. 3. The company raises full-year revenue guidance to $45-$48 million. 4. RFID division faces temporary margin pressures but expects recovery. 5. BOSC shows a solid financial foundation with $5.2 million cash.

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Why Bullish?

The significant revenue and net income growth indicate strong operational performance. Historical patterns show stocks often rise after positive revenue guidance.

How important is it?

The article highlights strong earnings growth and optimistic forward guidance, significantly influencing market sentiment and stock value.

Why Short Term?

Immediate investor interest likely due to raised guidance; impacts are perceived quickly in stock prices.

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BOSC
Company Raises Full-Year Revenue and Net Income Guidance August 21, 2025 07:30 ET  | Source: B.O.S. Better Online Solutions Ltd. 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 DirectorDarrow Associates+1-214-597-8200mkreps@darrowir.com Eyal Cohen, CEO+972-542525925eyalc@boscom.com Use of Non-GAAP Financial InformationBOS 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 StatementsThe 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 OPERATIONSU.S. dollars in thousands (except share and per share numbers)   Six months endedJune 30, Three months endedJune 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 endedJune 30, Three months endedJune 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 SupplyChain 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   SupplyChain 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    SupplyChain 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.

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