B.O.S. Better Online Solutions

Ladies and gentlemen, welcome to BOSQ2 Investor Summit. Thank you for joining us today. Before we begin, a brief reminder that this call contains forward-looking statements relating to BOS's business, financial condition, and results of operations. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated. Such statements include, but are not limited to, matters relating to product demand, pricing, market acceptance, economic conditions, and technology development, as further detailed in the company's filings with the various securities authorities. Before I turn things over to management, I would like to give a brief recap of the results we just released. The growth momentum continued. Second quarter 2026 revenue grew 29% year over year, helping offset a softer first quarter of 2026 and bringing trailing 12-month revenue to the same level as our record 2025 revenue. We anticipate that full year 2026 revenue will exceed full year 2025 revenue. Our backlog remained at a record $31 million as of the end of the second quarter of 2026. Approximately $20 million of the backlog is scheduled for delivery by year end. Together with first half revenue, this amount represents approximately 91% of our full year 2025 revenue. Despite the increase in our operating expenses due to the dollar's devaluation, We believe we will offset this through revenue growth and improved gross profit margins, and as a result, we expect net income for full year 2026 to exceed $3.6 million we achieved in year 2025. Our balance sheet is solid. Shareholders' equity stands at $30.9 million, That gives us the flexibility to capitalize on organic and M&A opportunities. B.O.S. is a company with a growing backlog, accelerating revenues, a clean balance sheet, and exposure to some of the strongest structural trends in the global economy. Defense spending, automation, and supply chain modernization. And yet, B.O.S. currently has a market capitalization Thank you for watching. Now I will turn the call over to Eyal Cohen

Good morning, great to see you again in our quarterly conference. Joining me today is Moshe, our Chief Financial Officer. I am pleased to see strong participation today, including many new names following the recent virtual conferences we participated in during May, June and July. Let me start by sharing a few thoughts on how the business is progressing. I am very pleased with our financial performance, financial position, management team, board members, and the growth opportunities in front of us. This has given us the confidence to grow year after year, and we remain focused on continuing that trend. I am pleased that the commercial market in Israel has recovered, as reflected in 17% growth in the RFID revenue in the first half of the year, as compared to the comparable period. Demand in the defense segment continues to be strong, as reflected in our record backlog, most of which relates to our supply chain petitions. The penetration of our robotics division into more factories in the defense segment is going very well. We are successfully implementing AI RubinBot for internal use to improve our operational efficiency and in software development for commercial use, commercial sale. I believe these steps will yield improved operational margins

On the financial front, despite 30% growth in the total revenue between Q1-26 and Q2-26, cash remained roughly unchanged at $10 million. We grew without needing to burn cash, which is a strong indication of highly efficient cash management, with our vendors helping to finance our clients. We will deploy this cache to support our external growth through M&A. On the M&A front, we have several opportunities on the table that we have been evaluating carefully.