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 $11.4 million. While revenues in the first quarter of 2025 were $15.0 million, that figure was boosted by a single outsized transaction of $2.5 million, making the 2025 full-year average quarterly revenue, of $12.6 million a more representative comparison.
Gross Profit in the first quarter of 2026 was $2.8 million with a gross profit margin of 24.9%, compared to $3.6 million with a gross profit margin of 23.9% in Q1 2025.
Operating Expenses in the first quarter of 2026 totaled $2.17 million, compared to $1.85 million in Q1 2025. The increase is primarily attributable to the 13.6% depreciation of the U.S. dollar against the New Israeli Shekel (NIS) from Q1 2025 to Q1 2026.
Operating Income in the first quarter of 2026 was $665,000 compared to $1.7 million in Q1 2025.
Financial Income in the first quarter of 2026 was $120,000 compared to financial expenses of $272,000 in Q1 2025. Our balance sheet includes significant net assets denominated in Israeli shekels, so changes in the exchange rate between the U.S. dollar and the NIS result in foreign‑currency gains or losses when the dollar depreciates or appreciates against the shekel.
Net Income in the first quarter of 2026 amounted to $765,000, or $0.11 per basic share compared to $1.35 million, or $0.23 per basic share in Q1 2025.
Cash and cash equivalents, net of loans, amounted to $9.5 million as of March 31, 2026, compared to $10.1 million as of December 31, 2025.
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 $3.3 million in orders from Indian customers compared to only $172,000 in the comparable quarter last year.
In March 2026, the Supply Chain division acquired the remaining 50% of the profit rights in a joint venture for the sale of wire products for the defense and aviation industries, for a total consideration of approximately $641,000, resulting in full ownership of the venture. Wire product revenues contributed $500,000 in the first quarter of 2026, and the division is well-positioned for continued growth in this segment.
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 29% from $24 million at year-end 2025 to $31 million as of March 31, 2026. We now anticipate exceeding our previously announced annual revenue target of $51 million. The depreciation of the U.S. dollar against the New Israeli Shekel is creating pressure on our profitability and as a result, at this stage, we are maintaining our net income target of $3.6 million for the full year. We are responding to the depreciation of the U.S dollar by working on accelerating revenue growth and improving gross profit margins."
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 | [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 OPERATIONSU.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 $ 11,388 $ 15,026 $ 50,569Cost of revenues 8,555 11,437 38,494Gross profit 2,833 3,589 12,075 Operating costs and expenses: Research and development 60 41 178Sales and marketing 1,477 1,263 5,242General and administrative 631 542 2,547Impairment of Goodwill - - 1,200Total operating costs and expenses 2,168 1,846 9,167 Operating income 665 1,743 2,908Financial income (expenses), net 120 (272) 590Income before taxes on income 785 1,471 3,498Income taxes benefits (expenses) (20) (120) 113Net income $ 765 $ 1,351 $ 3,611 Basic net income per share $ 0.11 $ 0.23 $ 0.59Diluted net income per share $ 0.11 $ 0.22 $ 0.57Weighted average number of shares used in computing basic net income per share 7,036 5,900 6,161Weighted 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
(U.S. dollars in thousands) March 31, 2026 December 31, 2025 (Unaudited) (Audited)ASSETS CURRENT ASSETS: Cash and cash equivalents $10,555 $11,825Restricted bank deposits 118 98Trade receivables 15,068 15,638Other receivable and prepaid expenses 2,245 1,440Inventories 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
(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 $775Operating lease liabilities, current 234 251Trade payables 6,431 6,778Employees and payroll accruals 1,173 1,266Deferred revenues 3,477 3,129Accrued expenses and other liabilities 762 983 Total current liabilities 12,214 13,182 LONG-TERM LIABILITIES: Long-term loans, net of current maturities 947 972Operating lease liabilities, non-current 730 768Long term deferred revenues 306 286Accrued 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
(U.S. dollars in thousands) Three months ended
March 31, Year ended
December 31, 2026 2025 2025 Operating income $ 665 $ 1,743 $ 2,908 Add: Impairment of Goodwill - - 1,200 Amortization of intangible assets 115 15 60 Stock-based compensation 6 9 41 Depreciation 108 101 419 EBITDA $ 894 $ 1,868 $ 4,628
SEGMENT INFORMATION
(U.S. dollars in thousands)
RFID SupplyChain 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.
(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.