B.O.S. Better Online Solutions Q2 2025 Earnings Call Transcript: Revenue Jumps 36% YoY to $11.5M

B.O.S. Better Online Solutions Ltd. reported Q2 2025 earnings with revenue increasing 36% YoY to $11.5 million, driven primarily by the Supply Chain division's 57% revenue growth to $8.3 million. The company's focus on the defense sector while diversifying its customer base is paying off, with momentum from Q1 continuing in Q2.

B.O.S. Better Online Solutions Ltd. (NASDAQ: BOSC) reported its Q2 2025 earnings, showcasing significant revenue growth driven primarily by the Supply Chain division. The company's strategic focus on the defense sector and efforts to diversify its customer base have paid off, as Q2 results indicate continued momentum from the first quarter.

For the second quarter, B.O.S. reported sales of USD 11.53 million, a 36.4% increase year-over-year (YoY) [2]. Net income was USD 0.765 million, up from USD 0.501 million a year ago. Basic earnings per share from continuing operations were USD 0.13 compared to USD 0.09 a year ago, while diluted earnings per share were USD 0.12 compared to USD 0.09 a year ago.

The Supply Chain division played a pivotal role in this growth, with its revenue increasing by 57% YoY to USD 8.3 million [2]. This growth is attributed to a favorable product mix and the company's ability to integrate franchised components directly into customer products.

The company's full-year guidance was also raised, with revenues now expected to be between USD 45-48 million and net income between USD 2.6-3.1 million [2]. This optimism is driven by strong performance and a contracted backlog of USD 24 million, providing revenue visibility for upcoming quarters.

However, the company faced margin pressures, with consolidated gross profit margin declining to 22.8% from 26.0% YoY, primarily due to operational inefficiencies in the RFID division [2]. Management has identified these issues and implemented restructuring initiatives expected to normalize RFID gross margins to about 21% by Q4.

The $700,000 non-cash goodwill impairment charge related to this restructuring was effectively neutralized by a $696,000 currency gain [2]. Despite these challenges, B.O.S. has established a strong foundation for continued growth, with record year-to-date sales of USD 26.5 million and net income of USD 2.1 million.

The company's ability to expand revenue while addressing operational challenges demonstrates effective management execution in a competitive market environment. B.O.S. will host an investor conference call on August 21, 2025, at 8:30 a.m. EDT to discuss these results further.

References:
[1] https://www.marketscreener.com/news/b-o-s-better-online-solutions-ltd-reports-earnings-results-for-the-second-quarter-and-six-months-e-ce7c51d3d18bf326
[2] https://www.stocktitan.net/news/BOSC/bos-continues-strong-growth-trajectory-in-q2-2025-sales-increase-36-2857c7906gad.html