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B.o.s. Better Online Solutions (BOSC)
:BOSC
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BOS Better Online Solutions (BOSC) AI Stock Analysis

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BOSC

BOS Better Online Solutions

(NASDAQ:BOSC)

Rating:74Outperform
Price Target:
$5.50
▲(12.24% Upside)
BOS Better Online Solutions scores well due to strong financial performance and an optimistic earnings call with raised guidance. The valuation is attractive, although technical indicators suggest neutral momentum. Inconsistent revenue growth and challenges in the RFID division are minor concerns.
Positive Factors
Revenue Growth
Significant revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial prospects.
Strategic Expansion
Expansion into India's defense and aerospace sector opens new growth avenues, strengthening BOSC's market position and revenue base.
Financial Stability
Improved cash reserves enhance BOSC's ability to invest in growth opportunities and weather economic fluctuations, ensuring long-term stability.
Negative Factors
Gross Margin Decline
Declining gross margins could pressure profitability, indicating potential challenges in cost management or pricing power.
Inconsistent Revenue Growth
Fluctuating revenue growth can signal market volatility or strategic misalignment, posing risks to sustained business expansion.
RFID Division Challenges
Operational issues in the RFID division could hinder overall performance, requiring strategic adjustments to restore profitability.

BOS Better Online Solutions (BOSC) vs. SPDR S&P 500 ETF (SPY)

BOS Better Online Solutions Business Overview & Revenue Model

Company DescriptionB.O.S. Better Online Solutions Ltd. provides intelligent robotics, radio frequency identification (RFID), and supply chain solutions for enterprises worldwide. The Intelligent Robotics Division provides custom-made machines for industrial automation and assembly of products and packing that offer technological solutions. The RFID Division provides hardware products, such as thermal and barcode printers; RFID and barcode scanners and readers; wireless, mobile, and forklift terminals; wireless infrastructure; active and passive RFID tags; ribbons, labels, and tags; and RFID systems for libraries. It also develops Warehouse Management System, a data collection solution for logistics management in logistic centers and warehouses; RFID-based systems for tracking inventory in a produce packing house; automatic systems for industrial packing lines; automatic systems to track the production line; and automatic systems to identify and track vehicles for transportation-related settings. In addition, this segment provides maintenance and repair services for data collection equipment, as well as warehouse and on-site service plans; on-site inventory count services in various fields; and asset tagging and counting services for corporate and governmental entities. The Supply Chain Division offers electro-mechanical components, electronics components, communications products, and components consolidation services to aerospace, defense, and other industries. This segment also provides inventory and quality control management of components entering production lines; and inventory management services for ongoing projects. The company markets its products through direct sales and sales agents, as well as through distributors. B.O.S. Better Online Solutions Ltd. was incorporated in 1990 and is headquartered in Rishon LeZion, Israel.
How the Company Makes MoneyBOS Better Online Solutions generates revenue through multiple streams, primarily from service fees charged for its digital marketing and e-commerce solutions. The company offers subscription-based pricing for ongoing services such as SEO and social media management, providing a steady income source. Additionally, BOSC earns money through project-based contracts for website development and custom digital solutions tailored to specific client needs. Significant partnerships with major advertising platforms and technology providers also contribute to its revenue by enabling BOSC to offer clients access to advanced tools and resources, making their services more attractive. These partnerships often involve revenue-sharing agreements that further enhance the company's earnings potential.

BOS Better Online Solutions Earnings Call Summary

Earnings Call Date:Aug 21, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 26, 2025
Earnings Call Sentiment Positive
The earnings call demonstrated significant positive performance with strong revenue growth, increased profitability, and strategic focus on the defense sector. However, there were challenges with declining gross margins and temporary issues in the RFID division. The overall sentiment is optimistic, given the raised guidance and financial stability.
Q2-2025 Updates
Positive Updates
Strong Revenue Growth
Sales jumped 36% year-over-year to $11.5 million this quarter, driven primarily by a 57% increase in the Supply Chain division's revenues.
Increased Profitability
Net income surged 53% to $765,000, with earnings per share at $0.13 for the quarter. EBITDA increased to $900,000 from about $800,000 in the second quarter of 2024.
Raised Full-Year Guidance
Full-year revenue guidance increased to between $45 million and $48 million, up from previous guidance of $44 million. Net income guidance was also raised to between $2.6 million and $3.1 million.
Financial Stability and Flexibility
Cash and equivalents grew to $5.2 million from $3.6 million at year-end, with a robust financial foundation allowing for potential strategic acquisitions.
Defense Sector Growth
More than 60% of total revenues are defense-based, with anticipated growth due to increased demand in this sector.
Negative Updates
Gross Margin Decline
Overall gross profit margin decreased to 23% from 26% in the same quarter last year, with the RFID division's margin falling to 19.1% from 21.1%.
Temporary Challenges in RFID Division
The RFID division faced service line challenges leading to decreased margins, though restructuring initiatives are expected to normalize performance by Q4 2025.
Noncash Goodwill Charge
A noncash goodwill charge of $700,000 was recorded in the RFID division, largely offset by favorable currency fluctuations.
Company Guidance
During the BOS Second Quarter 2025 Earnings Call, the company announced a significant upward revision to its full-year guidance, citing strong performance and strategic initiatives. The revenue guidance was increased to between $45 million and $48 million, up from a previous $44 million estimate, representing about a 16% year-over-year organic growth. The net income guidance was raised from $2.5 million to between $2.6 million and $3.1 million, marking a 24% year-over-year increase at the midpoint. BOS highlighted a 36% year-over-year revenue growth to $11.5 million for the quarter, driven by the Supply Chain division's 57% revenue increase to $8.3 million. Net income surged by 53% to $765,000, translating to earnings of $0.13 per share. The EBITDA increased to $900,000 from $800,000 a year ago, supporting operational cash flow for growth investments. The company also reported a contracted backlog of $24 million as of June 30, 2025, and cash and equivalents grew to $5.2 million, underscoring a robust financial position to support strategic expansions.

BOS Better Online Solutions Financial Statement Overview

Summary
BOS Better Online Solutions shows strong profit margins and a stable balance sheet. The company has improved cash flow management and reduced leverage, enhancing financial stability. However, inconsistent revenue growth poses some risk.
Income Statement
72
Positive
The income statement shows a strong gross profit margin and improved net profit margin over several years. Revenue growth has been inconsistent, with a decline in the most recent year. EBIT and EBITDA margins have improved but remain moderate. Overall, the company is stabilizing its profitability, though revenue fluctuations pose some risk.
Balance Sheet
75
Positive
The balance sheet reflects a solid equity position with an improving debt-to-equity ratio, indicating financial stability. The equity ratio is healthy, and return on equity has shown significant improvement, demonstrating effective utilization of shareholder funds. The company's leverage is manageable, suggesting a low risk of financial distress.
Cash Flow
68
Positive
Cash flow analysis reveals positive free cash flow growth and a strong operating cash flow to net income ratio. Free cash flow to net income has also improved, signaling enhanced cash generation relative to profit. However, fluctuations in cash flows and capital expenditures indicate potential volatility in cash management.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue40.45M39.95M44.18M41.51M33.63M33.55M
Gross Profit9.00M9.29M9.21M9.06M6.59M6.12M
EBITDA2.89M2.06M2.96M2.29M775.00K-344.00K
Net Income2.24M2.30M2.00M1.28M451.00K-1.04M
Balance Sheet
Total Assets31.70M34.34M32.48M30.59M24.76M23.03M
Cash, Cash Equivalents and Short-Term Investments2.01M3.37M2.34M1.76M1.88M1.04M
Total Debt2.22M2.17M2.31M3.01M2.52M2.96M
Total Liabilities10.95M13.01M13.64M13.96M10.41M11.16M
Stockholders Equity20.75M21.33M18.84M16.63M14.35M11.87M
Cash Flow
Free Cash Flow0.00775.00K1.49M-1.14M-370.00K974.00K
Operating Cash Flow0.001.29M1.83M1.28M9.00K1.06M
Investing Cash Flow0.00-519.00K-772.00K-3.09M-379.00K71.00K
Financing Cash Flow0.00217.00K-389.00K1.58M1.31M-532.00K

BOS Better Online Solutions Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.90
Price Trends
50DMA
4.91
Negative
100DMA
4.57
Positive
200DMA
4.12
Positive
Market Momentum
MACD
-0.01
Negative
RSI
54.40
Neutral
STOCH
39.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BOSC, the sentiment is Positive. The current price of 4.9 is above the 20-day moving average (MA) of 4.83, below the 50-day MA of 4.91, and above the 200-day MA of 4.12, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 54.40 is Neutral, neither overbought nor oversold. The STOCH value of 39.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BOSC.

BOS Better Online Solutions Risk Analysis

BOS Better Online Solutions disclosed 40 risk factors in its most recent earnings report. BOS Better Online Solutions reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

BOS Better Online Solutions Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$29.00M9.5414.32%15.66%56.99%
61
Neutral
$36.70B12.21-10.39%1.84%8.50%-7.32%
61
Neutral
$79.21M-30.53%58.04%21.09%
60
Neutral
$70.43M-5.41%12.67%80.62%
49
Neutral
$23.69M-13.41%-34.53%-50.58%
48
Neutral
$10.81M-60.43%19.14%49.74%
39
Underperform
$8.20M-57.64%-35.27%-227.55%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BOSC
BOS Better Online Solutions
4.83
2.03
72.50%
CLRO
Clearone Communications
4.73
-3.94
-45.44%
OCC
Optical Cable
9.79
6.95
244.72%
UTSI
UTStarcom
2.31
-0.55
-19.23%
AMPG
AmpliTech Group
3.82
2.98
354.76%
SYNX
Silynxcom Ltd.
1.58
-1.47
-48.20%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 28, 2025