BOS Continues Strong Growth Trajectory in Q2 2025, Sales Increase 36% Year-Over-Year
Rhea-AI Summary
BOS Better Online Solutions (NASDAQ:BOSC) reported strong Q2 2025 financial results, with revenue surging 36.4% to $11.5 million compared to Q2 2024. Net income increased 52.7% to $765,000 ($0.13 per basic share), while EBITDA rose to $898,000.
The company achieved record year-to-date sales of $26.5 million and net income of $2.1 million. Based on strong performance, BOS raised its 2025 guidance, now expecting revenues between $45-48 million and net income of $2.6-3.1 million.
However, the company faced margin pressures, with consolidated gross profit margin declining to 22.8% from 26.0%, primarily due to RFID division challenges. BOS recorded a $700,000 non-cash goodwill impairment charge, offset by a $696,000 currency gain.
Positive
- Revenue growth of 36.4% year-over-year to $11.5 million in Q2 2025
- Net income increased 52.7% to $765,000 in Q2 2025
- Strong contracted backlog of $24 million as of June 30, 2025
- Cash position improved to $5.2 million from $3.6 million at year-end 2024
- Raised full-year 2025 guidance for both revenue and net income
- Record year-to-date sales of $26.5 million and net income of $2.1 million
Negative
- Consolidated gross profit margin declined to 22.8% from 26.0% year-over-year
- RFID division experiencing operational inefficiencies with margin drop to 19.1%
- Supply Chain division gross margin decreased to 24% from 28%
- Non-cash goodwill impairment charge of $700,000 recorded
News Market Reaction
On the day this news was published, BOSC declined 1.63%, reflecting a mild negative market reaction. Argus tracked a trough of -13.6% from its starting point during tracking. Our momentum scanner triggered 2 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $482K from the company's valuation, bringing the market cap to $29M at that time. Trading volume was above average at 1.9x the daily average, suggesting increased trading activity.
Data tracked by StockTitan Argus on the day of publication.
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
"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
"With
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
"The RFID division's gross profit margin decreased to
"The Supply Chain division's gross profit margin was
"In connection with the RFID restructuring initiatives, the Company recorded a non-cash goodwill impairment charge of
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
mkreps@darrowir.com
Eyal Cohen, CEO
+972-542525925
eyalc@boscom.com
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.
FAQ
What were BOS (NASDAQ:BOSC) Q2 2025 earnings results?
What is BOS's revenue guidance for 2025?
How much cash does BOS (NASDAQ:BOSC) have as of Q2 2025?
What caused BOS's margin decline in Q2 2025?
What is BOS's current contract backlog?
