B.O.S. Better Online Solutions (BOSC) investor relations material

Strategic focus and business model

• Operates through three divisions: Supply Chain, Robotics, and RFID, each targeting different supply chain challenges.

• 65% of business is defense-related, with a growing focus on expanding RFID into defense.

• More than 80% of revenues are highly predictable, driven by consumables and service contracts.

• Global expansion leverages relationships with major defense clients and contract manufacturers in India, the U.S., and Europe.

• Engineering team doubled and manufacturer representation tripled in two years to meet rising demand.

Financial performance and outlook

• Achieved 21 consecutive profitable quarters, with $51 million in 2025 revenue, $3.6 million net income, and $4.6 million EBITDA.

• Q1 2026 revenue reached $11 million, with a $31 million backlog, securing 80% of annual revenue target.

• Expects to exceed 2025 revenue in 2026, supported by strong backlog and accelerating demand.

• Gross profit margin improved to 24.9% in Q1 2026 despite currency headwinds.

• Trades at book value with a P/E of 9x, compared to Russell 2000's 2.4x book and 20x P/E.

Growth drivers and market trends

• Revenue growth driven by increased manufacturer partnerships, expanded sales engineering, and robust defense demand.

• Structural tailwinds include rising global defense budgets, replenishment of Israeli defense inventory, and India's emergence as a defense hub.

• India and the U.S. are prime growth markets, with significant recent order growth from India.

• Flexibility for acquisitions up to $20 million, targeting profitable, synergistic companies with no shareholder dilution.

• Acquisition financing split evenly between bank loans and internal resources.