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 | 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.

*        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.

*        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.