This article first appeared on GuruFocus .
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Revenue Growth:Increased from $33.6 million in 2021 to $51 million in 2025.
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Q1 2026 Orders from India:$3.3 million compared to $172,000 in the same quarter last year.
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Shareholders' Equity:$29 million.
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Cash Net of Loans:$9.5 million.
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Backlog as of March 31, 2026:$31 million.
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Q1 2026 Revenue and Backlog Combined:$42.4 million, 83% of the full-year target.
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Gross Profit Margin Q1 2026:24.9%, up from 23.9% in the same quarter last year.
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Net Income Target for 2026:$3.6 million.
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Backlog Growth in Q1 2026:Increased 29% from $24 million to $31 million.
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Price-to-Earnings Ratio:Approximately 11 times compared to 22 times for the Russell 2000 index.
Release Date: May 28, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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BOS Better Online Solutions Ltd ( NASDAQ:BOSC ) reported significant revenue growth from $33.6 million in 2021 to $51 million in 2025, indicating strong organic growth.
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The company is well-positioned to benefit from the global increase in defense budgets, which is a long-term structural trend.
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BOSC has successfully expanded its presence in the Indian market, with $3.3 million in orders in Q1 2026 compared to $172,000 in the same quarter last year.
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The company's backlog increased by 29% in the first quarter of 2026, reaching $31 million, which supports future revenue growth.
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BOSC maintains a solid balance sheet with $29 million in shareholders' equity and $9.5 million in cash net of loans, providing financial flexibility for acquisitions.
Negative Points
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The depreciation of the US dollar against the Israeli shekel is putting pressure on BOSC's profitability.
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The RFID division experienced lower profitability due to partial operations in March and increased labor costs from currency devaluation.
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Despite growth, BOSC's price-to-earnings ratio is lower than the Russell 2000 index, indicating potential undervaluation by investors.
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The company has not yet penetrated the drone market, which is a growing segment in the defense industry.
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BOSC's name may cause confusion among investors, as it does not reflect the company's current focus on defense and supply chain solutions.
Q & A Highlights
Q: With the devaluation of the dollar against the NIS, are you doing anything to hedge or compensate for this? A: Eyal Cohen, CEO, explained that while they are hedging on the balance sheet, the long-term solution is to increase business efficiency. This includes raising sales prices to improve gross profit margins and growing the business through acquisitions with a focus on profitability and synergy.
Q: Are any of your components used in drones, given their increasing importance in defense? A: Eyal Cohen, CEO, stated that currently, their components are not used in drones, but they are actively seeking manufacturers to collaborate with to enter this market.
Q: How is the expansion of RFID into the healthcare sector progressing? A: Eyal Cohen, CEO, mentioned that they have set up a team to expand RFID into the defense sector and are in the process of forming a team for the healthcare sector. He expects to start this expansion within the year.
Q: Can you break down which divisions contributed most to the 29% increase in backlog? A: Eyal Cohen, CEO, noted that the Supply Chain division was the primary contributor due to its long-term orders.
Q: What do you attribute the early success in the Indian market to? A: Eyal Cohen, CEO, attributed the success to the groundwork laid by their Israeli team. He believes that establishing a local team in India will further accelerate their growth in the market.
Q: How do you expect the RFID division to perform, considering the current geopolitical situation? A: Eyal Cohen, CEO, acknowledged that the RFID division faced challenges in Q1 due to partial operations and currency devaluation. However, he expects improved results in Q2 as they work on increasing gross profit margins.
Q: Do you see potential for expansion in other countries similar to India? A: Eyal Cohen, CEO, confirmed that they are exploring opportunities in the US and other regions in the Far East, following the business model used in India.
Q: Have you considered renaming the company to better reflect its current operations? A: Eyal Cohen, CEO, acknowledged the suggestion and mentioned that rebranding might occur after future acquisitions to better align with their business focus.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
