BOS Reports Second Quarter and First Half 2026 Financial Results

Second Quarter Revenue Grew 29% Year-Over-Year to $14.9 Million
Raises Full-Year 2026 Net Income Guidance

RISHON LE ZION, Israel, Aug. 20, 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 second quarter and first half ended June 30, 2026.

Second Quarter 2026 Financial Highlights

• Revenue was $14.9 million, up 29% from $11.5 million in the second quarter of 2025.
• Gross profit was $3.4 million, or 23.0% of revenue, compared to $2.6 million, or 22.8% of revenue, in the second quarter of 2025.
• Operating income was $1.1 million, compared to $0.1 million in the second quarter of 2025, which included a $0.7 million goodwill impairment charge.
• EBITDA was $1.3 million, compared to $0.9 million in the second quarter of 2025.
• Net income was $1.4 million, or $0.19 per diluted share, compared to net income of $0.8 million, or $0.12 per diluted share, in the second quarter of 2025.
  
  

First Half 2026 Financial Highlights

• Revenue was $26.2 million, compared to $26.6 million in the first half of 2025.
• Gross profit was $6.2 million, or 23.8% of revenue, compared to $6.2 million, or 23.4% of revenue, in the first half of 2025.
• Operating income was $1.7 million, compared to $1.8 million in the first half of 2025; the 2025 period included a $0.7 million goodwill impairment charge.
• EBITDA was $2.2 million, compared to $2.8 million in the first half of 2025.
• Net income was $2.1 million, or $0.30 per diluted share, compared to net income of $2.1 million, or $0.33 per diluted share, in the first half of 2025.
  
  

“Second-quarter 2026 revenue grew 29% year-over-year, helping offset a softer first quarter of 2026 and bringing first-half 2026 revenue roughly in line with last year,” said Eyal Cohen, BOS’ CEO. “Our backlog remained at a record $31 million as of the end of the second quarter of 2026, unchanged from the previous quarter, despite 30% quarter-over-quarter revenue growth. Approximately $20 million of the backlog is scheduled for delivery by year-end. Together with first-half revenue, this amount represents approximately 91% of our full-year 2025 revenue. Accordingly, we continue to expect full-year 2026 revenue to exceed $51 million, and we are raising our net income guidance to exceed $3.6 million.

Growth in the first half was led by our RFID division, up 17.5% year-over-year, while Supply Chain revenue softened by 5.8%, which we view as temporary based on backlog trends," concluded Eyal Cohen.

Moshe Zeltzer, BOS' Chief Financial Officer, stated: “The depreciation of the U.S. dollar against the New Israeli Shekel increased our operating expenses by approximately $0.6 million in the first half of 2026, compared to the first half of 2025, creating pressure on our profitability. We are responding to the depreciation of the U.S. dollar by working to accelerate revenue growth and improve gross profit margins.

The diluted earnings per share for the first half declined to $0.30 from $0.33 in the comparable period primarily due to 970,000 shares issued upon warrant and option exercises in the second half of 2025. The proceeds from the exercises amounted to $2.9 million, which we plan to deploy toward acquisitions that are expected to increase our earnings. We remain focused both on organic growth across all three divisions and on continuing to evaluate selective bolt-on acquisitions.”

Investor Conference Call

BOS will host a video conference meeting on August 20, 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/82362585684?pwd=TxUMoGZQB7b9WbbKaNtkDb3Tn95gEq.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 | [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)
		Six months ended June 30,						Three months ended June 30,
		2026			2025			2026			2025
		(Unaudited)						(Unaudited)
Revenues		$	26,242		$	26,553		$	14,853		$	11,527
Cost of revenues			19,999			20,334			11,444			8,896
Gross profit			6,243			6,219			3,409			2,631
Operating costs and expenses:
Research and development			114			87			54			45
Sales and marketing			3,104			2,540			1,627			1,277
General and administrative			1,290			1,081			658			539
Impairment of goodwill			-			700			-			700
Total operating costs and expenses			4,508			4,408			2,339			2,561
Operating income			1,735			1,811			1,070			70
Financial income, net			415			424			295			696
Income before taxes on income			2,150			2,235			1,365			766
Taxes on income			20			121			-			1
Net income		$	2,130		$	2,114		$	1,365		$	765
Basic net income per share		$	0.30		$	0.36		$	0.19		$	0.13
Diluted net income per share		$	0.30		$	0.33		$	0.19		$	0.12
Weighted average number of shares used in computing basic net income per share			7,043			5,925			7,050			5,950
Weighted average number of shares used in computing diluted net income per share			7,193			6,385			7,194			6,438
Number of outstanding shares as of June 30, 2026 and 2025			7,060			6,060			7,060			6,060

CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
		June 30, 2026			December 31, 2025
		(Unaudited)			(Audited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	10,378		$	11,825
Restricted bank deposits			130			98
Trade receivables, net			17,739			15,638
Other receivable and prepaid expenses			2,025			1,440
Inventories			7,726			6,541
Total current assets			37,998			35,542
OTHER LONG-TERM ASSETS			129			128
PROPERTY AND EQUIPMENT, NET			3,517			3,449
OPERATING LEASE RIGHT-OF-USE ASSETS, NET			856			926
DEFERRED TAX ASSETS			1,250			1,250
OTHER INTANGIBLE ASSETS, NET			810			361
GOODWILL			2,988			2,988
Total assets		$	47,548		$	44,644

CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
		June 30, 2026			December 31, 2025
		(Unaudited)			(Audited)
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short term loans and current maturities of long-term loans		$	139		$	775
Operating lease liabilities, current			280			251
Trade payables			8,202			6,778
Employees and payroll accruals			1,376			1,266
Deferred revenues			3,285			3,129
Accrued expenses and other liabilities			623			983
Total current liabilities			13,905			13,182
LONG-TERM LIABILITIES:
Long-term loans, net of current maturities			972			972
Operating lease liabilities, non-current			744			768
Long term deferred revenues			345			286
Accrued severance pay, net			701			732
Total long-term liabilities			2,762			2,758
TOTAL SHAREHOLDERS' EQUITY			30,881			28,704
Total liabilities and shareholders' equity		$	47,548		$	44,644

CONDENSED CONSOLIDATED EBITDA
(U.S. dollars in thousands)
		Six months ended June 30,						Three months ended June 30,
		2026			2025			2026			2025
Operating income		$	1,735		$	1,811		$	1,070		$	70
Add:
Impairment of goodwill			-			700			-			700
Amortization of intangible assets			190			30			75			15
Stock-based compensation			23			20			17			10
Depreciation			224			204			116			103
EBITDA		$	2,172		$	2,765		$	1,278		$	898

SEGMENT INFORMATION
(U.S. dollars in thousands)
		RFID				Supply Chain Solutions			Intelligent Robotics			Intercompany				Consolidated
						Six months ended June 30, 2026
Revenues		$	7,251			$	18,595		$	617		$	(221	)		$	26,242
Gross profit			1,423				4,564			256			-				6,243
Allocated operating expenses			1,207				2,384			216			-				3,807
Amortization of intangible assets			-				190			-			-				190
Unallocated operating expenses*			-				-			-							511
Income from operations		$	216			$	1,990		$	40			-			$	1,735
Financial income and tax on income																	395
Net income																$	2,130

		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

*        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, 2026
Revenues							$	3,794					$	10,946					$	311					$	(198			)		$	14,853
Gross profit								765						2,538						106						-						3,409
Allocated operating expenses								645						1,240						105						-						1,990
Amortization of intangible assets								-						75						-												75
Unallocated operating expenses*								-										-		-						-						274
								-						-						-
Income from operations							$	120					$	1,223					$	1						-					$	1,070
Financial income and tax on income																																295
Net income																															$	1,365

		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

*        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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