• BOS revenue up 36.4% to $11.5mln in Q2 2025.
• Net income up 52.7% to $765,000, or $0.13 per share.
• EBITDA increased to $898,000.
• Contracted backlog at $24mln.
• Cash and equivalents at $5.2mln.
BOS Better Online Solutions (NASDAQ: BOSC) reported robust financial results for the second quarter of 2025, showcasing significant growth and resilience in the face of operational challenges. The company's revenue surged by 36.4% to $11.5 million, while net income increased by 52.7% to $765,000, or $0.13 per share. EBITDA also improved to $898,000, demonstrating the company's strong operational performance.
The company's contracted backlog grew to $24 million, up from $22 million in the first quarter, indicating continued business momentum. Additionally, the company's cash and equivalents position improved to $5.2 million, up 44% from year-end 2024. This strong financial position enables BOS to fund expansion plans while maintaining operational stability.
However, BOS faced margin pressures during the quarter, with the consolidated gross profit margin declining to 22.8% from 26.0% year-over-year. The RFID division, in particular, experienced operational inefficiencies that led to a decrease in gross profit margin. The company has initiated restructuring initiatives to address these issues, aiming to normalize RFID gross margins to approximately 21% by the end of the fourth quarter.
Despite these margin challenges, BOS raised its full-year revenue and net income guidance. The company now expects revenues between $45 million and $48 million for the full year, up from the previous projection of $44 million. Net income is expected to range between $2.6 million and $3.1 million, compared to the prior estimate of $2.5 million.
The company's strategic focus on the defense sector, combined with efforts to diversify its customer base, has driven this impressive growth. The strong performance in Q2 2025 reflects BOS's ability to execute effectively in a competitive market environment.
BOS will host a video conference meeting on August 21, 2025, at 8:30 a.m. EDT to discuss these results further. Investors and financial professionals are encouraged to attend or access the recording on the BOS website.
References:
[1] https://www.stocktitan.net/news/BOSC/bos-continues-strong-growth-trajectory-in-q2-2025-sales-increase-36-2857c7906gad.html
[2] https://www.stocktitan.net/news/BOSC/
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