B.O.S. Better Online Solutions (BOSC) Q1 2026 earnings summary

Executive summary

• Achieved sustained revenue growth from $33.6 million in 2021 to a projected $51 million for 2025, driven by organic expansion and strategic positioning in defense and automation sectors.

• Q1 2026 revenues reached $11.4 million, compared to $15.0 million in Q1 2025, which included a one-time $2.5 million transaction; average quarterly revenue for 2025 was $12.6 million.

• Gross profit for Q1 2026 was $2.8 million with a margin of 24.9%, up from 23.9% in Q1 2025.

• Backlog increased 29% to $31 million as of March 31, 2026, from $24 million at year-end 2025.

• Benefiting from global defense budget increases, IDF inventory expansion, and rapid growth in the Indian defense market.

Financial highlights

• Q1 2026 gross profit margin improved to 24.9% from 23.9% year-over-year.

• Net income for Q1 2026 was $765,000 ($0.11 per basic share), down from $1.35 million ($0.23 per share) in Q1 2025.

• Operating income for Q1 2026 was $665,000, compared to $1.7 million in Q1 2025.

• Shareholders’ equity at $29 million and $9.5 million in cash net of loans.

• Price-to-earnings ratio at 11x, below the Russell 2000 average of 22x.

Outlook and guidance

• Full-year 2026 revenue guidance was raised, with expectations to exceed the previous target of $51 million.

• Net income target for 2026 is maintained at $3.6 million, despite currency headwinds.

• 83% of the annual revenue target already achieved by end of Q1 2026.

• Focused on accelerating revenue growth and improving gross profit margins to offset currency pressures.