BOS Reports Financial Results for the First Quarter of 2026
Rhea-AI Summary
BOS (Nasdaq:BOSC) reported Q1 2026 revenue of $11.4M, versus $15.0M in Q1 2025, which included a one-time $2.5M deal. Gross profit was $2.8M (24.9% margin) and net income $765K or $0.11 per basic share.
Backlog rose 29% to $31M, and BOS now expects 2026 revenue to exceed its prior $51M target while maintaining full-year net income guidance of $3.6M. The company expanded in India, acquired full profit rights in a wire products venture, and is pushing RFID into Israel’s defense sector.
Positive
- Backlog increased 29% to $31M as of March 31, 2026
- 2026 revenue expected to exceed prior $51M annual target
- Full-year 2026 net income guidance maintained at $3.6M
- Q1 2026 gross margin improved to 24.9% from 23.9%
- $3.3M in Q1 2026 orders from Indian customers vs. $172K year earlier
- Acquired remaining 50% profit rights in wire products JV for ~$641K
Negative
- Q1 2026 revenue declined to $11.4M from $15.0M in Q1 2025
- Q1 2026 operating income fell to $665K from $1.7M
- Q1 2026 net income decreased to $765K from $1.35M
- Operating expenses rose to $2.17M from $1.85M, partly due to FX
- Cash and cash equivalents, net of loans, fell to $9.5M from $10.1M
News Market Reaction – BOSC
In the May 28 session, BOSC declined 9.68%, reflecting a notable negative market reaction. Argus tracked a trough of -15.9% from its starting point during tracking. Our momentum scanner triggered 20 alerts that day, indicating elevated trading interest and price volatility. Trading volume was exceptionally heavy at 6.3x the daily average, suggesting significant selling pressure.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Mar 31 | Q4/FY 2025 earnings | Positive | -10.2% | Record 2025 revenue and net income with conservative 2026 guidance. |
| Mar 31 | Q4/FY 2024 earnings | Neutral | -3.6% | 2024 revenue decline but higher net income and improved gross margin. |
| Nov 27 | Q3 2024 earnings | Neutral | -2.2% | Stable revenue, better profitability, but lowered full-year revenue forecast. |
| Aug 22 | H1/Q2 2024 earnings | Neutral | +2.2% | H1 revenue decline with higher margins and maintained 2024 outlook. |
| May 30 | Q1 2024 earnings | Positive | +3.9% | Q1 2024 margin and net income improvement despite lower revenue. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings-linked headlines have historically seen modestly negative average moves of -1.96%, with a mix of aligned and divergent reactions relative to generally positive fundamentals.
Recent BOS earnings communications have highlighted a transition from mixed 2024 performance to strong growth in 2025. The company moved from $39.9M revenue in 2024 to record $50.6M in 2025 with net income of $3.6M. Quarterly updates frequently emphasized margin improvement, backlog growth, and maintained or cautiously positive outlooks. Today’s Q1 2026 report and raised revenue expectations build on that trajectory, updating investors on how 2026 is tracking against March guidance and prior backlog strength.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Raises Full-Year 2026 Revenue Guidance
RISHON LE ZION, Israel, May 28, 2026 (GLOBE NEWSWIRE) -- BOS Better Online Solutions Ltd. ("BOS" or the "Company") (Nasdaq: BOSC), an integrator of supply chain technologies for the aerospace, defense, industrial, and retail sectors, today announced its financial results for the first quarter of 2026.
Quarter Ended March 31, 2026 Financial Results
Revenues for the first quarter of 2026 were
Gross Profit in the first quarter of 2026 was
Operating Expenses in the first quarter of 2026 totaled
Operating Income in the first quarter of 2026 was
Financial Income in the first quarter of 2026 was
Net Income in the first quarter of 2026 amounted to
Cash and cash equivalents, net of loans, amounted to
Business Updates
In March 2026, the Supply Chain division signed a new exclusive sales, marketing, and distribution agreement with Doppler Electronics Private Limited, an Indian corporation, to expand its business activities in the growing Indian market. During the first quarter of the year, we received
In March 2026, the Supply Chain division acquired the remaining
In May 2026, we announced a strategic initiative to expand our RFID division beyond its current retail focus to Israeli defense sector. Accordingly, we engaged a specialized consulting firm led by IDF veterans with hands-on experience in defense procurement. We view this move as part of a broader strategy to diversify our RFID customer base.
"The first quarter results are in line with our expectations," said Eyal Cohen, BOS' CEO. "Our backlog grew by
Investor Conference Call
BOS will host a video conference meeting on May 28, 2026, 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/89470679082?pwd=PlJwUwaXO74oZDDC3JiPS5rUvdZq6P.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 operates three specialized divisions:
Supply Chain Division
Distributes and integrates franchised electronic components directly into customer products.
RFID Division
Optimizes customers’ inventory management through state-of-the-art marking and tracking solutions, 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:
Toni McLaughlin, Director
Allele Communications | +1 786.290.7095 | tmclaughlin@allelecommunications.com
Eyal Cohen, CEO
BOS | +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.
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) | ||||||
| Three months ended March 31, | Year ended December 31, | |||||
| 2026 | 2025 | 2025 | ||||
| (Unaudited) | (Unaudited) | (Audited) | ||||
| Revenues | ||||||
| Cost of revenues | 8,555 | 11,437 | 38,494 | |||
| Gross profit | 2,833 | 3,589 | 12,075 | |||
| Operating costs and expenses: | ||||||
| Research and development | 60 | 41 | 178 | |||
| Sales and marketing | 1,477 | 1,263 | 5,242 | |||
| General and administrative | 631 | 542 | 2,547 | |||
| Impairment of Goodwill | - | - | 1,200 | |||
| Total operating costs and expenses | 2,168 | 1,846 | 9,167 | |||
| Operating income | 665 | 1,743 | 2,908 | |||
| Financial income (expenses), net | 120 | (272) | 590 | |||
| Income before taxes on income | 785 | 1,471 | 3,498 | |||
| Income taxes benefits (expenses) | (20) | (120) | 113 | |||
| Net income | ||||||
| Basic net income per share | ||||||
| Diluted net income per share | ||||||
| Weighted average number of shares used in computing basic net income per share | 7,036 | 5,900 | 6,161 | |||
| Weighted average number of shares used in computing diluted net income per share | 7,198 | 6,273 | 6,312 | |||
| Number of outstanding shares as of March 31, 2026 and 2025 | 7,050 | 5,924 | 7,029 | |||
| CONSOLIDATED BALANCE SHEETS (U.S. dollars in thousands) | ||||||
| March 31, 2026 | December 31, 2025 | |||||
| (Unaudited) | (Audited) | |||||
| ASSETS | ||||||
| CURRENT ASSETS: | ||||||
| Cash and cash equivalents | $ | 10,555 | $ | 11,825 | ||
| Restricted bank deposits | 118 | 98 | ||||
| Trade receivables | 15,068 | 15,638 | ||||
| Other receivable and prepaid expenses | 2,245 | 1,440 | ||||
| Inventories | 6,750 | 6,541 | ||||
| Total current assets | 34,736 | 35,542 | ||||
| OTHER LONG-TERM ASSETS | 146 | 128 | ||||
| PROPERTY AND EQUIPMENT, NET | 3,556 | 3,449 | ||||
| OPERATING LEASE RIGHT-OF-USE ASSETS, NET | 857 | 926 | ||||
| DEFERRED TAX ASSETS | 1,250 | 1,250 | ||||
| OTHER INTANGIBLE ASSETS, NET | 885 | 361 | ||||
| GOODWILL | 2,988 | 2,988 | ||||
| Total assets | $ | 44,418 | $ | 44,644 | ||
| CONSOLIDATED BALANCE SHEETS (U.S. dollars in thousands) | ||||||
| March 31, 2026 | December 31, 2025 | |||||
| (Unaudited) | (Audited) | |||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
| CURRENT LIABILITIES: | ||||||
| Short term loans and Current maturities of long-term loans | $ | 137 | $ | 775 | ||
| Operating lease liabilities, current | 234 | 251 | ||||
| Trade payables | 6,431 | 6,778 | ||||
| Employees and payroll accruals | 1,173 | 1,266 | ||||
| Deferred revenues | 3,477 | 3,129 | ||||
| Accrued expenses and other liabilities | 762 | 983 | ||||
| Total current liabilities | 12,214 | 13,182 | ||||
| LONG-TERM LIABILITIES: | ||||||
| Long-term loans, net of current maturities | 947 | 972 | ||||
| Operating lease liabilities, non-current | 730 | 768 | ||||
| Long term deferred revenues | 306 | 286 | ||||
| Accrued severance pay | 745 | 732 | ||||
| Total long-term liabilities | 2,728 | 2,758 | ||||
| TOTAL SHAREHOLDERS' EQUITY | 29,476 | 28,704 | ||||
| Total liabilities and shareholders' equity | $ | 44,418 | $ | 44,644 | ||
| CONDENSED CONSOLIDATED EBITDA (U.S. dollars in thousands) | ||||||||
| Three months ended March 31, | Year ended December 31, | |||||||
| 2026 | 2025 | 2025 | ||||||
| Operating income | ||||||||
| Add: | ||||||||
| Impairment of Goodwill | - | - | 1,200 | |||||
| Amortization of intangible assets | 115 | 15 | 60 | |||||
| Stock-based compensation | 6 | 9 | 41 | |||||
| Depreciation | 108 | 101 | 419 | |||||
| EBITDA | ||||||||
SEGMENT INFORMATION
(U.S. dollars in thousands)
| RFID | Supply Chain Solutions | Intelligent Robotics | Intercompany | Consolidated | |||||||||||||
| Three months ended March 31, 2025 | |||||||||||||||||
| Revenues | $ | 3,456 | $ | 7,650 | $ | 306 | $ | (24) | $ | 11,388 | |||||||
| Gross profit | 658 | 2,026 | 149 | - | 2,833 | ||||||||||||
| Allocated operating expenses | 563 | 1,143 | 111 | - | 1,817 | ||||||||||||
| Amortization of intangible assets | - | 115 | - | 115 | |||||||||||||
| Unallocated operating expenses* | - | 236 | |||||||||||||||
| Income from operations | $ | 95 | $ | 768 | $ | 38 | - | $ | 665 | ||||||||
| Financial income and tax on income | 100 | ||||||||||||||||
| Net income | $ | 765 | |||||||||||||||
| RFID | Supply Chain Solutions | Intelligent Robotics | Intercompany | Consolidated | |||||||||||||
| Three months ended March 31, 2025 | |||||||||||||||||
| Revenues | $ | 3,259 | $ | 11,390 | $ | 496 | $ | (119) | $ | 15,026 | |||||||
| Gross profit | 707 | 2,756 | 126 | - | 3,589 | ||||||||||||
| Allocated operating expenses | 529 | 1,048 | 68 | - | 1,645 | ||||||||||||
| Unallocated operating expenses* | 201 | ||||||||||||||||
| Income from operations | $ | 178 | $ | 1,708 | $ | 58 | $ | 1,743 | |||||||||
| Financial expenses and tax on income | (392) | ||||||||||||||||
| Net income | $ | 1,351 | |||||||||||||||
| * 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 | |||||||||||||
| 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 | |||||||||||||||
| * 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. | |||||||||||||||||
