BOS Reports Record $15 Million in Revenues for the First Quarter of 2025

RISHON LE ZION, Israel, May 29, 2025 (GLOBE NEWSWIRE) -- BOS Better Online Solutions Ltd. ("BOS" or the "Company") (NASDAQ: BOSC) reported its financial results for the first quarter of the year 2025.

First Quarter 2025 Financial Highlights:

Revenues increased by 33.1% to $15.0 million from $11.3 million in the first quarter of the year 2024; Gross profit margin improved to 23.9% compared to 22.7% in the first quarter of the year 2024; EBITDA increased by 86.2% to $1.9 million compared to $1.0 million in the first quarter of the year 2024; Operating expenses increased by only 7.7% compared to the 33.1% increase in revenues, demonstrating operating leverage; Net income increased by 82.3% to $1.35 million or $0.23 per basic share compared to $741,000 or $0.13 per basic share in the first quarter of the year 2024; Backlog was $22 million as of March 31, 2025 compared to $27 million as of December 31, 2024.

Eyal Cohen, Chief Executive Officer at BOS, stated: “I am pleased to report record revenues and record net income in the first quarter, demonstrating the success of our strategic focus on the defense sector and diligent operating efficiency. We continue to capitalize on the growing opportunities in this rapidly changing sector by increasing contracting activity with existing customers and securing new customers.”

“Based on our first quarter performance and contracted backlog, we are optimistic about surpassing our full-year outlook for 2025, which are revenues of $44 million and net income of $2.5 million,” Cohen concluded.

“Our record results in the first quarter reflect BOS’s long-term investments in developing a diverse product offering and establishing a robust operational and financial framework, all of which are specifically designed to meet the evolving and distinct demands of the defense industry,” said Avidan Zelicovsky, BOS President.

BOS will host a video conference meeting on May 29, 2024 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/83920447982?pwd=nxng3dstyBqK9argz8YQSsH9Cx4VkE.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
[email protected]

Eyal Cohen, CEO
+972-542525925
[email protected]

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 OPERATIONSU.S. dollars in thousands Three months ended
March 31, Year ended
December 31, 2025 2024 2024 (Unaudited) (Unaudited) (Audited) Revenues $15,026 $11,287 $39,949 Cost of revenues 11,437 8,727 30,655 Gross profit 3,589 2,560 9,294 Operating costs and expenses: Research and development 41 44 175 Sales and marketing 1,263 1,162 4,394 General and administrative 542 508 2,113 Impairment of intangible assets and Goodwill - - 1,173 Total operating costs and expenses 1,846 1,714 7,855 Operating income 1,743 846 1,439 Financial expenses, net (272) (105) (139)Income before taxes on income 1,471 741 1,300 Income taxes benefits (expenses) (120) - 1,000 Net income $1,351 $741 $2,300 Basic net income per share $0.23 $0.13 $0.40 Diluted net income per share $0.22 $0.13 $0.39 Weighted average number of shares used in computing basic net income per share 5,900 5,748 5,756 Weighted average number of shares used in computing diluted net income per share 6,273 5,828 5,887 Number of outstanding shares as of March 31, 2025 and 2024 and December 31, 2024 5,924 5,748 5,793

CONSOLIDATED BALANCE SHEETS(U.S. dollars in thousands) March 31, 2025 December 31, 2024 (Unaudited) (Audited) ASSETS CURRENT ASSETS: Cash and cash equivalents $3,844 $3,368 Restricted bank deposits 66 185 Trade receivables, net 15,839 11,787 Other accounts receivable and prepaid expenses 1,235 1,150 Inventories 7,505 7,870 Total current assets 28,489 24,360 LONG-TERM ASSETS 167 177 PROPERTY AND EQUIPMENT, NET 3,362 3,417 OPERATING LEASE RIGHT-OF-USE ASSETS, NET 727 779 DEFERRED TAX ASSETS 981 1,000 OTHER INTANGIBLE ASSETS, NET 407 422 GOODWILL 4,188 4,188 Total assets $38,321 $34,343

CONSOLIDATED BALANCE SHEETS(U.S. dollars in thousands) March 31, 2025December 31, 2024(Unaudited) (Audited) LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Current maturities of long-term loans $342 $439 Operating lease liabilities, current 161 176 Trade payables 7, 769 6,362 Employees and payroll accruals 1,128 1,087 Deferred revenues 2,543 2,003 Accrued expenses and other liabilities 1,091 598 Total current liabilities 13,034 10,665 LONG-TERM LIABILITIES: Long-term loans, net of current maturities 921 980 Operating lease liabilities, non-current 530 576 Long-term deferred revenues 273 293 Accrued severance pay, net 514 498 Total long-term liabilities 2,238 2,347 TOTAL SHAREHOLDERS' EQUITY 23,049 21,331 Total liabilities and shareholders' equity $38, 321 $34,343

CONDENSED CONSOLIDATED EBITDA(U.S. dollars in thousands) Three months ended
March 31, Year ended
December 31, 2025 2024 2024 Operating income $1,743 $846 $1,439 Add: Impairment of Goodwill and other intangible assets - 1,173 Amortization of intangible assets 15 47 190 Stock-based compensation 9 21 74 Depreciation 101 89 370 EBITDA $1,868 $1,003 $3,246

SEGMENT INFORMATION(U.S. dollars in thousands) 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

RFID Supply
Chain Solutions Intelligent
Robotics Intercompany Consolidated Three months ended March 31, 2024 Revenues $ 3,683 $ 7,356 250 (2 ) $ 11,287 Gross profit 992 1,484 84 - 2,560 Allocated operating expenses 565 909 62 - 1,536 Unallocated operating expenses* - - - 178 Income  from operations $ 427 $ 575 $ 22 846 Financial expenses and tax on income (105 ) Net income $ 741

SEGMENT INFORMATION(U.S. dollars in thousands) RFID Supply Chain Solutions Intelligent
Robotics Intercompany Consolidated Year ended December 31, 2024 Revenues $ 12,877 $ 25,829 1,410 (167 ) $ 39,949 Gross profit 3,533 5,430 331 9,294 Allocated operating expenses 2,273 3,338 274 5,885 Impairment of goodwill and intangible assets 984 189 - 1,173 Unallocated operating expenses* - - - 797 Income from operations $ 276 $ 1,903 $ 57 1,439 Financial expenses and tax benefit 861 Net income $ 2,300

*Unallocated operating expenses include costs not specific to a particular segment but general to the entire group, such as expenses incurred for insurance of directors and officers, public company fees, legal fees, and other similar corporate costs.