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 endedMarch 31,
Year endedDecember 31,
2026
2025
2025
(Unaudited)
(Unaudited)
(Audited)
Revenues
$ 11,388
$ 15,026
$ 50,569
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
$ 765
$ 1,351
$ 3,611
Basic net income per share
$ 0.11
$ 0.23
$ 0.59
Diluted net income per share
$ 0.11
$ 0.22
$ 0.57
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
