BOS Continues Record Year Performance in Q3 2025, Sales Increase 16% Year-Over-Year

Rhea-AI Summary

BOS Better Online Solutions (NASDAQ:BOSC) reported Q3 2025 results on Nov 25, 2025: revenue rose 15.9% to $11.4M, net income increased 17.9% to $677k ($0.11 basic), and EBITDA climbed 29.5% to $920k. Contracted backlog was $24M and cash and cash equivalents reached a record $7.3M as of Sept 30, 2025.

For the nine months ended Sept 30, 2025, revenue increased 28.4% to $37.9M, net income rose 53.8% to $2.8M ($0.46), and EBITDA increased 45.6% to $3.7M. Management raised full-year 2025 guidance toward the high end of the prior range of $45–48M revenue and $2.6–3.1M net income. A video conference call was scheduled for Nov 25, 2025 at 8:30 a.m. EDT; replay available on the company website.

Positive

• Revenue +15.9% in Q3 2025 to $11.4M
• Nine‑month revenue +28.4% to $37.9M
• Net income +53.8% in nine months to $2.8M
• Record cash balance of $7.3M as of Sept 30, 2025

Negative

• RFID division reported a nominal operating loss in Q3 due to Israel logistics slowdowns

Insights

Senior Corporate Finance Analyst

Strong top‑line and margin gains lift guidance; cash pile and backlog support continued execution.

BOS reported third‑quarter revenue of $11.4 million and nine‑month revenue of $37.9 million, representing 15.9% and 28.4% increases respectively versus prior year. Profitability measures improved alongside revenue: Q3 net income rose to $677,000 and nine‑month net income to $2.8 million, while EBITDA expanded by 29.5% in Q3 and 45.6% year‑to‑date, indicating operational leverage on growing sales.

The company increased full‑year 2025 guidance toward the high end of prior ranges ($45–48 million revenue and $2.6–3.1 million net income), backed by a $24 million contracted backlog and record cash of $7.3 million as of September 30, 2025. Key near‑term items to watch are actual Q4 revenue relative to the revised guidance and any backlog conversions over the next two quarters.

Operational & Segment Performance Analyst

Segment mix drove overall strength, though RFID softness and geopolitical impacts merit monitoring.

The Supply Chain division drove revenue and margin gains through defense sector work and global diversification, while Intelligent Robotics showed steady profitability improvement year‑over‑year. The RFID division suffered a "nominal operating loss" in Q3 due to logistics center slowdowns in Israel, a specific operational drag noted by management.

The recovery of RFID depends on improving regional logistics and implemented operational fixes; these are monitorable operational signals to track over the next two quarters. Also watch cash flow conversion from the $24 million backlog and any segment‑level disclosures on margin contribution in the next quarterly filing.

Raises Full-Year 2025 Revenue and Net Income Guidance

RISHON LE ZION, Israel, Nov. 25, 2025 (GLOBE NEWSWIRE) -- BOS Better Online Solutions Ltd. (BOSC) today reported financial results for the third quarter and nine months ended September 30, 2025, demonstrating continued record-breaking performance in both revenue and profitability.

Third Quarter 2025 Financial Highlights

• Revenue increased 15.9% to $11.4 million, compared to $9.8 million in Q3 2024.
• Net income increased 17.9% to $677,000, or $0.11 per basic share, compared to $574,000, or $0.10 per basic share, in Q3 2024.
• EBITDA increased 29.5% to $920,000 compared to $710,000 in Q3 2024.
• Contracted backlog remained strong at $24 million as of September 30, 2025, compared to $24 million on June 30, 2025, and $22 million on March 31, 2025.
• Cash and cash equivalents reached a record level of $7.3 million as of September 30, 2025.

Nine Months 2025 Financial Highlights

• Revenue increased 28.4% to $37.9 million, compared to $29.6 million in the first nine months of 2024.
• Net income increased 53.8% to $2.8 million, or $0.46 per basic share, compared to $1.8 million, or $0.32 per basic share, in the first nine months of 2024.
• EBITDA increased 45.6% to $3.7 million compared to $2.5 million in the first nine months of 2024.

Eyal Cohen, Chief Executive Officer of BOS, stated: "We are pleased to report another quarter of robust growth, continuing our record-setting pace in both revenue and profitability. Our year-to-date performance demonstrates the strength of our Supply Chain division's defense sector focus and our successful global diversification strategy. We continue to capitalize on expanding opportunities in this dynamic sector through deeper engagement with existing customers and strategic wins with new ones.

"While our RFID division experienced a nominal operating loss in Q3 due to logistics center slowdowns in Israel, we are confident that improving geopolitical conditions in the Middle East, combined with operational enhancements we have implemented, will drive a return to growth. Meanwhile, our Intelligent Robotics division continues to deliver steady profitability improvements year-over-year, demonstrating our team's ability to drive operational excellence across all business units.

"We are also generating strong cash flows from our efficient operating platform, bringing cash and cash equivalents to $7.3 million—providing a solid foundation to support our continued strategic growth initiatives."

Cohen concluded: "Given our strong execution and $24 million backlog, we are raising our full-year 2025 financial guidance. We now expect our results to be at the high end of our previous guidance range of $45-$48 million in revenue and $2.6-$3.1 million in net income."

Investor Conference Call

BOS will host a video conference call on November 25, 2025 at 8:30 a.m. EDT. A question-and-answer session will follow management's presentation. To access the video conference, please click on the following link:

https://us06web.zoom.us/j/84586132530?pwd=MR8FSUWdKBSvsBtc0KTHYDZRZQiIcb.1

For those unable to participate in the live call, a recording will be available the following 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 operates 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, delivering innovative solutions that meet evolving customer needs.

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

Contacts

Matt Kreps, Managing Director 
Darrow Associates
+1-214-597-8200
mkreps@darrowir.com

Eyal Cohen, CEO 
+972-542525925
eyalc@boscom.com

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.

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 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, among 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 with 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 ongoing regional conflicts, 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 U.S. 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)
	Nine months ended September 30,								Three months ended September 30,
		2025				2024				2025				2024
	(Unaudited)								(Unaudited)
Revenues	$	37,945			$	29,561			$	11,392			$	9,827
Cost of revenues		28,892				22,648				8,558				7,672
Gross profit		9,053				6,913				2,834				2,155
Operating costs and expenses:
Research and development		130				125				44				41
Sales and marketing		3,906				3,276				1,366				1,063
General and administrative		1,721				1,457				640				500
Impairment of Goodwill		700				-				-				-
Total operating costs and expenses		6,457				4,858				2,050				1,604
Operating income		2,596				2,055				784				551
Financial income (expenses), net		382				(238	)			(42	)			24
Income before taxes on income		2,978				1,817				742				575
Taxes on income		186				2				65				1
Net income	$	2,792			$	1,815			$	677			$	574
Basic net income per share	$	0.46			$	0.32			$	0.11			$	0.10
Diluted net income per share	$	0.43			$	0.31			$	0.10			$	0.10
Weighted average number of shares used in computing basic net income per share		6,005				5,750				6,163				5,753
Weighted average number of shares used in computing diluted net income per share		6,448				5,854				6,663				5,884
Number of outstanding shares as of September 30, 2025 and 2024		6,186				5,761				6,186				5,761

CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
	September 30, 2025			December 31, 2024
	(Unaudited)			(Audited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	7,316		$	3,368
Restricted bank deposits		67			185
Trade receivables		14,061			11,787
Other accounts receivable and prepaid expenses		1,074			1,150
Inventories		6,619			7,870
Total current assets		29,137			24,360
LONG-TERM ASSETS		139			177
PROPERTY AND EQUIPMENT, NET		3,466			3,417
OPERATING LEASE RIGHT-OF-USE ASSETS, NET		774			779
DEFERRED TAX ASSETS		1,000			1,000
OTHER INTANGIBLE ASSETS, NET		376			422
GOODWILL		3,488			4,188
Total assets	$	38,380		$	34,343

CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
	September 30, 2025			December 31, 2024
	(Unaudited)			(Audited)
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long term loans	$	137		$	439
Operating lease liabilities, current		210			176
Trade payables		5,247			6,362
Employees and payroll accruals		1,083			1,087
Deferred revenues		3,209			2,003
Accrued expenses and other liabilities		685			598
Total current liabilities		10,571			10,665
LONG-TERM LIABILITIES:
Long-term loans, net of current maturities		989			980
Operating lease liabilities, non-current		624			576
Long term deferred revenues		270			293
Accrued severance pay		700			498
Total long-term liabilities		2,583			2,347
TOTAL SHAREHOLDERS' EQUITY		25,226			21,331
Total liabilities and shareholders' equity	$	38,380		$	34,343

CONDENSED CONSOLIDATED EBITDA
(U.S. dollars in thousands)
	Nine months ended September 30,						Three months ended September 30,
	2025			2024			2025			2024
Operating income	$	2,596		$	2,055		$	784		$	551
Add:
Impairment of Goodwill		700			-			-			-
Amortization of intangible assets		45			143			16			47
Stock-based compensation		31			63			11			21
Depreciation		313			269			109			91
EBITDA	$	3,685		$	2,530		$	920		$	710

        

SEGMENT INFORMATION
(U.S. dollars in thousands)
		RFID					Supply Chain Solutions				Intelligent Robotics				Intercompany				Consolidated
								Nine months ended September 30, 2025
Revenues		$	9,208				$	27,850			$	1,179			$	(292	)		$	37,945
Gross profit			1,808					6,883				362				-				9,053
Allocated operating expenses			1,638					3,203				211				-				5,052
Impairment and amortization of intangible assets			700					46				-								746
Unallocated operating expenses*			-					-				-								659
Income (loss) from operations		$	(530		)		$	3,634			$	151				-			$	2,596
Financial income and tax on income																				196
Net income																			$	2,792
		RFID					Supply Chain Solutions				Intelligent Robotics				Intercompany				Consolidated
								Nine months ended September 30, 2024
Revenues		$	9,432				$	19,023			$	1,239			$	(133	)		$	29,561
Gross profit			2,382					4,244				287				-				6,913
Allocated operating expenses			1,669					2,455				189				-				4,313
Unallocated operating expenses*			-					-				-								545
Income from operations		$	713				$	1,789			$	98				-			$	2,055
Financial expenses and tax on income																				(240			)
Net income																			$	1,815

*        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 September 30, 2025
Revenues		$	3,040				$	8,116				$	311				$	(75		)		$	11,392
Gross profit			546					2,131					157					-					2,834
Allocated operating expenses			578					1,127					70					-					1,775
Amortization of intangible assets			-					16					-										16
Unallocated operating expenses*																		-					259
Income (loss) from operations		$	(32		)		$	988				$	87					-					784
Financial expenses and tax on income																							(107	)
Net income																						$	677
		RFID					Supply Chain Solutions					Intelligent Robotics					Intercompany					Consolidated
							Three months ended September 30, 2024
Revenues		$	2,770				$	6,336				$	838				$	(117		)		$	9,827
Gross profit			762					1,256					137					-					2,155
Allocated operating expenses			566					771					67					-					1,404
Unallocated operating expenses*																		-					200
Income from operations		$	196				$	485				$	70					-					551
Financial income and tax on income																							23
Net income																						$	574

*        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.

FAQ

What were BOSC Q3 2025 revenue and EPS reported on Nov 25, 2025?

BOSC reported Q3 2025 revenue of $11.4M and net income of $677k or $0.11 per basic share.

How did BOSC revise full‑year 2025 guidance on Nov 25, 2025?

Management raised guidance toward the high end of the prior range of $45–48M revenue and $2.6–3.1M net income.

What is BOSC's contracted backlog and cash position as of Sept 30, 2025?

Contracted backlog was $24M and cash and cash equivalents reached a record $7.3M as of Sept 30, 2025.

Why did BOSC's RFID division have a loss in Q3 2025?

The company cited logistics center slowdowns in Israel as causing a nominal operating loss in the RFID division in Q3 2025.

When and how can investors access BOSC's Nov 25, 2025 investor call recording?

The video conference occurred Nov 25, 2025 at 8:30 a.m. EDT and a recording is available the following day on the company's website.