BOS at Q2 Virtual Investor Summit: Strong Q1 Performance Fuels Confidence

On Tuesday, 10 June 2025, BOS Better Online Solutions (NASDAQ:BOSC) presented at the Q2 Virtual Investor Summit Event, highlighting its robust first-quarter performance driven by a defense-focused strategy. While the company celebrated record net revenues and net income, it also acknowledged the challenges of maintaining growth amid global economic uncertainties.

Key Takeaways

• BOS achieved record net revenues and net income, bolstered by a $22 million backlog.
• The company aims to exceed its 2025 targets of $44 million in revenues and $2.5 million in net income.
• BOS’s three divisions—Robotics, RFID, and Supply Chain—are central to its growth strategy.
• The company’s strong balance sheet, with $23 million in equity and zero bank debt, supports strategic expansion.
• BOS’s valuation metrics suggest attractive upside compared to broader market indices.

Financial Results

• Record net revenues and net income were reported for the quarter.
• BOS targets $44 million in revenues and $2.5 million in net income for 2025.
• The company maintains a $22 million backlog, providing a solid foundation for future growth.
• Overseas sales in the Supply Chain Division reached $4 million in 2025.
• BOS boasts $23 million in equity, $4 million in cash, and zero bank debt, offering financial flexibility.

Operational Updates

• The Supply Chain division has doubled its engineering team and tripled the number of manufacturers represented.
• A new cabling line has been launched, leveraging existing client relationships.
• BOS is expanding internationally, partnering with Israeli defense clients’ global subcontractors.
• The Robotics division is set to install a European production line this year, marking a significant milestone.

Future Outlook

• BOS plans to pursue organic growth within its existing sectors.
• The company aims to deepen client relationships by expanding its value proposition.
• Continued international expansion is a priority, especially in the defense sector.
• BOS is positioned to capitalize on increasing defense budgets worldwide, with Israel’s budget up 73% year-over-year and Europe’s up 16%.

Q&A Highlights

• No questions were asked during the Q&A session, indicating a comprehensive presentation.

BOS Better Online Solutions remains optimistic about its growth trajectory, supported by a strong balance sheet and strategic initiatives. For more details, please refer to the full transcript below.

Full transcript - Q2 Virtual Investor Summit Event:

Operator: Summit Virtual. We appreciate your participation in today’s virtual event. Up next, we are pleased to introduce BOS Better Online Solution Limited. If you would like to ask a question during the webcast, you may click the q and a icon button on the right side of your screen. Please type your question into the box and click send to submit it.

At this time, it is my pleasure to hand over the session to Eyal Cohen, CEO at BOS Better Online Solutions Limited, who will lead the presentation. Sir, the floor is yours.

Eyal Cohen, CEO, BOS Better Online Solutions Limited: Good morning, everyone. Thank you, and I am excited to participate in the Investor Summit, and I appreciate you you taking the time to to join us today. Joining me is Moshe Zeltzer, our CFO. Let’s dive into presentation. BOSS integrates cutting edge technology to streamline and enhance supply chain operation across three specialized divisions.

The robotic division automate inventory process by replacing manual labor with robotic solutions. The RFID division optimizes inventory management by tagging and tracking inventory through the supply chain, and the supply chain division integrates our franchised electromechanical components directly into our clients’ products. Let’s explore each division in more details. The supply our supply chain division is is dedicated to integrating franchise electromechanical component into the products of fleeting defense and IT companies. Our engineering team works hand in hand with our customers’ R and B department to ensure seamless integration into innovative designs, generating long term OEM revenue as products move into production.

The primary growth driver here is a number of components we embed into our clients’ product. That’s why expanding our integration capabilities is central to our strategy. Over the last two years, we have doubled our engineering team and tripled the number of manufacturers we represent, strengthening our market position and growth trajectory. We are proud to serve global defense leaders such as Israeli Aerospace Industries, Elbit Systems, and Rafale. Our network extends both directly to these companies and indirectly via their subcontractor across The USA, India, and Europe.

This network serve our launchpad for global expansion without the need for costly overseas sales offices. Our RFID division enhances inventory management across the supply chain by integrating proprietary software with cutting edge off the shelf equipment. We deploy ruggedized solution for industrial and logistics operation such as handle computers, forklift mounted tablet, industrial scanners, thermal printers, RFID readers, and wireless systems from top brands like Zebra and Honeywell. Our proprietary interfaces ensure that every on-site inventory transaction is instantly reported to declined ERP, WMS or MES system in real time. As a value added service, our expert team performs inventory counts for warehouses and stores using specialized hardware and software.

Our business model is designed to generate recurrent revenue, annual service contract from hardware and software, inventory account services, and ongoing demand from consumers like barcode labels, RFID tags, reboots. We are proud to serve top tier enterprises across Israel like Supersal in the food retail, IKEA on the non food retail, and Teva in the pharmaceutical sector. Our robotic division streamlines industrial and logistics processes by automating labor intensive tasks. Our multidisciplinary team includes mechanical and control engineers for grammars and production crews specializing in mechanical assembly. Together, we deliver robotic cells that reduce dependency on labor, increase production capacity, and improve accuracy all within three years ROI.

We offer two main types of robotic solutions. our custom built robotic cells. These are designed and built from ground from the scratch up to meet our each client unique needs. we integrate off the shelf robotic arms, as you see in the video, using top tier models from Fanuc and Yaskawa. We customize them with specialized grippers and programming, adapting them perfectly to our clients’ production or logistic processes.

Today, 90% of our robotics projects serve the defense sector, where production is still heavily reliant on labor and facing increasing pressure for faster and higher quality output. This shift present both a challenge to the industry and a major opportunity for us. Our flagship client here is Elbit Systems with additional high-tech clients validating our capabilities in this space. BOSS is led by a skilled executive team of eight and four board members. Given the importance of technology, we employed two dedicated CTOs, one for the robotics and one for the RFID.

Our total team includes 80 professionals with 30% being engineers and technicians. Operational results and outlook. We delivered exceptional results this quarter with record net revenues and record net income that underscore the strength of our defense focused strategy. These results reflect years of deliberate investment in product diversification and operational excellence, positioning us to capitalize on the different sectors to boost growth trajectory. With our strong Q1 performance and a healthy $22,000,000 backlog, we are raising our confidence in exceeding our full year 2025 targets of $44,000,000 in revenues and $2,500,000 in net income.

Our outlook remained grounded in the organic opportunities we see today and maintaining our conservative approach. Our growth strategy rests on two foundational pillars. deep in client relationship. We are expanding our value proposition to our defense customers through complementary offering exemplified by our successful launch of a new cabling line that leverages existing client relationships. international expansion.

We are strategically expanding overseas by partnering with our Israeli defense clients, global subcontractor. This approach generated $4,000,000 in overseas sales in year twenty twenty five to our supply chain division. Our robotic division will install its European production line this year, marking a significant milestone in our international growth. BOSS presents compelling investment opportunity built on four key strengths. we hold a strong and expanding position in the global defense industry during the period of accelerating market growth.

The defense sector fundamentals continue to strengthen globally. Israel’s defense budget increased 73% year over year, while Europe rose 16%. This creates a sustained demand environment that directly benefits our core business. we have demonstrated consistent profitability with steady net income growth year after year with a compounded annual growth rate of 49% through the years ’21 and ’25. our balance sheet provides flexibility for strategic growth.

With $23,000,000 in equity, zero bank debt and $4,000,000 in cash, we have the financial foundation to execute our expansion plans while maintaining operational stability. our valuation offers attractive upside compared to Russell two thousand index multiples. Price to earning ratio of Russell is 18 versus 11 for BOSS. Price to book value ratio of Russell is two versus 1.2 for BOSS. Thank you for your time and attention.

Moshe and I are now happy to take your questions.

Unidentified speaker: Alright. Thank you, Eyal, for that. Alright. Thank you, Eyal, for that. Feel free to drop your question at the q and a button or chat button so Eyal can answer it.

Eyal Cohen, CEO, BOS Better Online Solutions Limited: Okay. There are no questions. So thank you again for joining us today. If you need more details or would like to follow-up, please feel free to reach out. Wishing you all a great day.

Thank you.

Operator: That concludes POS Better Online Solutions Limited’s presentation. You may now disconnect. For details on upcoming presentations, please refer to the conference agenda. Thank you for your participation, and we look forward to welcoming you to the next session.

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