Key Highlights

  • BOS raised its full-year 2026 Net Income guidance to more than $3.6 million while keeping its Revenue expectation above $51 million.
  • Second-quarter revenue rose 29% to $14.9 million, with net income of $1.4 million, or $0.19 per diluted share.
  • Backlog stood at $31 million at 30 June 2026, with about $20 million scheduled for delivery by the end of the year.

A higher profit target

B.O.S. Better Online Solutions Ltd. (NASDAQ:BOSC), the Israeli supply-chain and RFID specialist, reported second-quarter and first-half 2026 results on 20 August 2026. Alongside them, it raised its full-year net income guidance to more than $3.6 million, while maintaining its revenue expectation of more than $51 million.

Both figures are company expectations rather than reported results. They matter because first-half net income was $2.1 million, which means the company is implicitly guiding for a higher second half.

Second-quarter performance

Revenue for the quarter was $14.9 million, up 29% from $11.5 million a year earlier. Gross Profit was $3.4 million, a Margin of 23.0% against 22.8%. Operating Income rose to $1.1 million from $0.1 million, although the prior-year figure included a $0.7 million Goodwill impairment, which affects the comparison.

EBITDA was $1.3 million, compared with $0.9 million. Net income was $1.4 million, or $0.19 per diluted share, against $0.12 a year earlier.

The first half in context

BOS integrates Supply chain technologies for aerospace, defence, industrial and retail customers through three divisions: Supply Chain, which distributes franchised electronic components, RFID, and Intelligent Robotics. Its risk disclosures note dependence on one or a few major customers.

The second quarter followed a weaker first quarter. For the six months, revenue was $26.2 million, slightly below $26.6 million a year before. Gross profit was $6.2 million, a margin of 23.8% against 23.4%, and operating income was $1.7 million against $1.8 million.

First-half EBITDA fell to $2.2 million from $2.8 million, and net income was $2.1 million, or $0.30 per diluted share, against $0.33. Management attributed some of the margin pressure to a weaker US dollar against the shekel, which raised operating expenses by about $0.6 million in the half. Chief financial officer Moshe Zeltzer said management planned to respond by accelerating revenue growth and improving gross margins. The lower Earnings Per Share also reflected about 970,000 shares issued from Warrant and option exercises in the second half of 2025.

Segments, Backlog and balance sheet

By division, RFID revenue was $7.3 million in the half, up 17.5%, with operating income of $0.2 million compared with a loss of $0.5 million. Supply Chain Solutions revenue was $18.6 million, down 5.8%, with operating income of $2.0 million against $2.6 million; chief executive Eyal Cohen described that decline as temporary, based on backlog trends. Intelligent Robotics contributed $0.6 million of revenue, against $0.9 million.

In the second quarter alone, RFID revenue was $3.8 million, against $2.9 million, and Supply Chain revenue was $10.9 million, against $8.3 million, which explains most of the quarterly increase.

Backlog was $31 million, the highest level reported by the company, at 30 June 2026, unchanged from the previous quarter, with about $20 million scheduled for delivery by the end of the year. Cash and equivalents were $10.4 million, down from $11.8 million at the end of 2025. Total Assets were $47.5 million, total liabilities about $16.7 million and shareholders' Equity $30.9 million, with loans of only about $1.1 million.

What to watch

The central test for the second half is whether scheduled deliveries from the backlog turn into the revenue and profit implied by the guidance. Other points include whether the weaker dollar continues to pressure costs, whether RFID momentum persists, and whether cash falls further. The third-quarter report will show how the company is tracking against its own full-year targets.