BOS Better Online Solutions (BOSC) Q2 2026 Earnings Report

The call conveyed a mostly positive business trajectory: strong top-line growth (29% YoY Q2 and ~30% sequential), a record $31M backlog with $20M deliverable by year-end, improved RFID performance, stable cash of $10M, and explicit plans to grow via disciplined M&A. Key risks tempering the outlook include a material FX-related operating expense headwind (~$1.2M annualized), supply-chain revenue volatility and margin sensitivity to deal mix, and geopolitical exposure in the Israeli commercial market. Management is focusing on price increases, gross margin improvement and AI-driven efficiency to offset FX pressure and expects to exceed prior-year net income, but execution of margin improvements and M&A remain critical.

Management guided that full‑year 2026 revenue is expected to exceed 2025 (about $51M), noting Q2 2026 revenue grew 29% YoY and consolidated revenue rose ~30% from Q1 to Q2, with trailing‑12‑month revenue now matching record 2025; backlog is a record $31M with roughly $20M scheduled for delivery by year‑end (H1 revenue plus those deliveries represent ~91% of FY2025 revenue). They expect net income to exceed the $3.6M earned in 2025, despite FX headwinds that increased operating expenses by about $600K in H1 (≈$1.2M annualized), and plan to offset that through revenue growth, improved gross margins and AI‑driven operational efficiency; RFID H1 revenue was up ~17% YoY while the Supply Chain segment saw ~6% decline in Q2. Financial flexibility includes $10M cash, $30.9M shareholders’ equity, a market cap of ≈$31M (EV ≈$21M), trading at ~1x book vs Russell Microcap ~2x and a P/E ~9x vs Russell ~16x, and M&A capacity up to ~$20M with potential 50% bank financing and target acquisition multiples of ~5–6x EBITDA; the company has added $4.7M of new orders since late July on top of $7.1M booked through May.