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Koss Corporation Reports First Quarter Results

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Koss Corporation (NASDAQ: KOSS) reported results for the quarter ended September 30, 2025: net sales $4,070,778 (+27.1% vs prior year) and net income $243,729 versus a prior-year net loss of $419,535. EPS $0.03 basic and diluted compared with a ($0.05) loss per share a year earlier.

Drivers included a considerable sale to the Company's largest Education customer and direct-to-consumer (DTC) sales +22.5%. Gross margin rose 340 bps to 40.0%, partly offset by tariffs on China-produced goods at the highest 145% rate. Management promoted Michael J. Koss, Jr. to Executive Vice President and will continue monitoring tariff risk.

Koss Corporation (NASDAQ: KOSS) ha riportato i risultati per il trimestre terminato il 30 settembre 2025: vendite nette $4,070,778 (+27,1% rispetto all'anno precedente) e utile netto $243,729 contro una perdita netta di $419,535 nell'anno precedente. EPS $0,03 base e diluito rispetto a una perdita per azione di ($0,05) un anno prima.

I driver includono una consistente vendita al cliente Education più grande della società e vendite dirette al consumo (DTC) +22,5%. Il margine lordo è salito di 340 pb al 40,0%, parzialmente compensato da dazi sui prodotti provenienti dalla Cina al tasso massimo del 145%. La direzione ha promosso Michael J. Koss, Jr. a Vicepresidente Esecutivo e continuerà a monitorare il rischio da dazi.

Koss Corporation (NASDAQ: KOSS) reportó resultados para el trimestre terminado el 30 de septiembre de 2025: ventas netas $4,070,778 (+27.1% frente al año anterior) y ingreso neto $243,729 frente a una pérdida neta de $419,535 del año anterior. EPS $0.03 básico y diluido en comparación con una pérdida por acción de ($0.05) un año antes.

Entre los impulsores se incluyó una venta considerable al mayor cliente educativo de la empresa y ventas direct-to-consumer (DTC) +22.5%. El margen bruto subió 340 pb a 40.0%, en parte compensado por aranceles a productos fabricados en China en la tasa más alta del 145%. La dirección promovió a Michael J. Koss, Jr. como Vicepresidente Ejecutivo y continuará monitoreando el riesgo arancelario.

Koss Corporation (NASDAQ: KOSS)는 2025년 9월 30일 종료 분기에 대한 실적을 발표했습니다: 순매출 $4,070,778 (+전년 대비 27.1%), 전년 순손실 $419,535에 비해 순이익 $243,729. EPS $0,03 기본 및 희석 주당 순이익으로 전년 대비 손실 ($0,05).

주요 요인은 회사의 가장 큰 교육 부문 고객에 대한 상당한 판매와 소비자 직판(DTC) 매출 +22.5%였습니다. 총이익률이 340bp 상승하여 40.0%를 기록했으며, 중국산 상품에 대한 관세가 최고 145%로 일부 상쇄되었습니다. 경영진은 Michael J. Koss, Jr.를 사장대리로 승진시키고 관세 위험을 계속 주시할 것입니다.

Koss Corporation (NASDAQ: KOSS) a publié les résultats pour le trimestre terminé le 30 septembre 2025 : ventes nettes 4 070 778 $ (+27,1 % par rapport à l'année précédente) et bénéfice net 243 729 $ contre une perte nette de 419 535 $ l'année précédente. EPS 0,03 $ de base et dilué, contre une perte par action de (0,05 $) l'année précédente.

Parmi les moteurs figurent une vente importante au plus grand client Education de l'entreprise et les ventes direct-to-consumer (DTC) +22,5%. La marge brute a augmenté de 340 points de base pour atteindre 40,0%, partiellement compensée par les droits de douane sur les produits fabriqués en Chine au taux maximal de 145%. La direction a promu Michael J. Koss, Jr. au poste de Vice-président exécutif et continuera de surveiller le risque douanier.

Koss Corporation (NASDAQ: KOSS) hat Ergebnisse für das Quartal zum 30. September 2025 bekannt gegeben: Nettoumsatz $4,070,778 (+27,1% gegenüber dem Vorjahr) und Nettoeinkommen $243,729 gegenüber einem Vorjahresverlust von $419,535. EPS $0,03 Basis- und Verwässerung je Aktie im Vergleich zu einem Verlust von ($0,05) pro Aktie im Vorjahr.

Treiber waren unter anderem ein erheblicher Verkauf an den größten Education-Kunden des Unternehmens und Direct-to-Consumer (DTC) Umsatz +22,5%. Bruttomarge stieg um 340 Basispunkte auf 40,0%, teilweise ausgeglichen durch Zölle auf in China hergestellte Güter im Höchstmaß von 145%. Das Management beförderte Michael J. Koss, Jr. zum Executive Vice President und wird das Zollerisiko weiter beobachten.

شركة كوس (NASDAQ: KOSS) أبلغت عن النتائج للربع المنتهي في 30 سبتمبر 2025: المبيعات الصافية 4,070,778 دولار (+27.1% مقارنة بالعام السابق) وصافي الدخل 243,729 دولار مقابل صافي خسارة قدره 419,535 دولار في العام السابق. ربحية السهم 0.03 دولار أساسي ومخفف مقارنة بخسارة 0.05 دولار للسهم قبل عام.

وشملت المحركات بيعاً كبيراً لعميل التعليم الأكبر في الشركة والمبيعات المباشرة للمستهلك (DTC) +22.5%. هامش الربح الإجمالي ارتفع بمقدار 340 نقطة أساس ليصل إلى 40.0%، مدعوماً جزئياً برسوم الجمارك على السلع المصنوعة في الصين عند أعلى معدل 145%. قامت الإدارة بترقية Michael J. Koss, Jr. إلى نائب الرئيس التنفيذي وستستمر في مراقبة مخاطر الرسوم الجمركية.

Positive
  • Net sales +27.1% to $4,070,778 for Q1 FY2026
  • Net income turned positive to $243,729 vs loss $419,535 prior year
  • EPS $0.03 basic and diluted compared with ($0.05) prior year
  • Gross margin +340 bps to 40.0% year-over-year
  • DTC sales growth of 22.5% year-over-year
Negative
  • Operating loss of $46,040 in the quarter despite net income
  • Sales to Europe declined due to distributor reorder timing
  • Exposure to a 145% tariff on China-produced goods could materially affect operations
  • Company relied on $293,128 of interest income to support pre-tax results

Insights

Koss reports clear improvement: revenue up, GAAP net loss turned to net income and margins expanded.

Koss Corporation posted net sales of $4,070,778 for the three months ended September 30, 2025, a 27.1% increase year-over-year, and reported net income of $243,729 versus a prior-year net loss. Gross margin rose from 36.6% to 40.0%, driven by a higher mix of direct-to-consumer sales and a large Education market order; DTC growth was 22.5%.

The firm still shows operating loss but strong other income and interest drove the quarterly profit; key operational risks include exposure to higher tariffs on China-produced goods and distributor timing that reduced European sales this quarter. Watch whether tariff changes persist and whether distributor re-orders arrive in the next quarter, since those factors drive near-term revenue and margin sensitivity.

MILWAUKEE, Wis., Oct. 30, 2025 (GLOBE NEWSWIRE) -- Koss Corporation (NASDAQ: KOSS) (the “Company”), the U.S. based high-fidelity headphone company, has reported its results for the first quarter ended September 30, 2025.

For the three months ended September 30, 2025, net sales of $4,070,778 were $868,910, or 27.1%, higher compared to $3,201,868 for the same three-month period in the prior year. Net income of $243,729 for the quarter ended September 30, 2025 compared favorably to a net loss of $419,535 for the first quarter of the prior fiscal year. Both basic and diluted net income per share for the three months ended September 30, 2025 were $0.03 compared to basic and diluted net loss per common share for the first quarter of the prior fiscal year of ($0.05).

“A considerable sale to our largest Education market customer, together with a 22.5% growth in sales in our direct-to-consumer (DTC) business, led the way to the overall first quarter sales success. While sales to Europe declined year-over-year, due mainly to our two largest distributors pushing re-orders to next quarter, sales to the Asian markets came in strong, making up some of the export shortfall,” Michael J. Koss, Chairman and CEO, said today. “DTC sales benefitted from new product launches in addition to new colorways of products launched in the prior fiscal year.”

Koss went on to note that gross margins improved by 340 basis points in the first three months of fiscal year 2026 compared to the same period last year, moving from 36.6% to 40.0%, primarily due to a favorable customer and market mix, namely a higher volume of higher margin DTC sales.

Additionally, Koss stated, “While the Company experienced an adverse impact on gross margins related to the sale of product brought in at the highest 145% tariff on China-produced goods, higher absorption of fixed manufacturing costs and a reduction in the amount of reserve added for excess and obsolete inventory when compared to the first quarter in the prior fiscal year provided some offset. As an increase in tariffs could have a significant impact on the Company’s operations due to the Company’s reliance on products coming from China, the Company continues to closely monitor the tariff landscape and will act accordingly to minimize negative effects.

The Company also announced the promotion of Michael J. Koss, Jr. to Executive Vice President, in recognition of his significant contributions to the creation of new products, the growth of the Company’s direct to consumer segment, and his leadership in the enforcement actions related to the firm’s patented intellectual property. Mr. Koss will continue in his current role in Marketing and Product and add oversight of the sourcing and logistics team to his portfolio.
        
About Koss Corporation

 Koss Corporation markets a complete line of high-fidelity headphones, wireless Bluetooth® speakers, computer headsets, telecommunications headsets, active noise canceling headphones, and wireless headphones.

Forward-Looking Statements

This press release contains forward-looking statements. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as “aims,” "anticipates," "believes," "estimates," "expects," "intends," "plans," “thinks,” "may," "will," “shall,” "should," “could,” “would,” "forecasts," "predicts," "potential," "continue," or the negative of such terms and other comparable terminology. These statements are based on currently available operating, financial and competitive information and are subject to various risks and uncertainties. Actual events or results may differ materially. In evaluating forward-looking statements, you should specifically consider various factors that may cause actual results to vary from those contained in the forward-looking statements, such as general economic conditions, inflationary cost environment, supply chain disruption, the impacts of public health events, such as pandemics, geopolitical instability and war, consumer demand for the Company's and its customers' products, competitive and technological developments, foreign currency fluctuations, and costs of operations. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are only made as of the date of this press release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances or new information. In addition, such uncertainties and other operational matters are discussed further in the Company's quarterly and annual filings with the Securities and Exchange Commission.

 
KOSS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
       
 Three Months Ended 
 September 30 
 2025
 2024
 
Net sales$4,070,778  $3,201,868  
Cost of goods sold 2,442,086   2,028,942  
Gross profit 1,628,692   1,172,926  
       
Selling, general and administrative expenses 1,674,732   1,810,059  
       
Loss from operations (46,040)  (637,133) 
       
Other income (expense):      
Interest income 293,128   220,358  
Interest expense (599)    
Total other income, net 292,529   220,358  
       
Income (loss) before income tax provision 246,489   (416,775) 
       
Income tax provision 2,760   2,760  
       
Net income (loss)$243,729  $(419,535) 
       
Income (loss) per common share:      
Basic$0.03  $(0.05) 
Diluted$0.03  $(0.05) 
       
Weighted-average number of shares:      
Basic 9,456,438   9,310,002  
Diluted 9,537,817   9,310,002  


CONTACT:Michael J. Koss
 Chairman & CEO
 (414) 964-5000
 mjkoss@koss.com 



FAQ

What were KOSS net sales and growth for the quarter ended September 30, 2025?

KOSS reported net sales of $4,070,778, a 27.1% increase versus the same quarter last year.

Did KOSS report profit or loss for Q1 FY2026 and what was EPS (KOSS)?

KOSS reported net income of $243,729 and EPS of $0.03 basic and diluted for the quarter.

How did KOSS gross margin change in Q1 FY2026 (KOSS)?

Gross margin improved by 340 basis points to 40.0% versus the prior-year quarter.

What drove KOSS's sales increase in Q1 FY2026 (KOSS)?

A considerable sale to its largest Education customer and DTC sales growth of 22.5% were cited as primary drivers.

What tariff risk did KOSS disclose in its October 30, 2025 release (KOSS)?

The company noted an adverse margin impact from products subject to a 145% tariff on China-produced goods and said it is monitoring the tariff landscape.

Did KOSS change management in the October 30, 2025 announcement (KOSS)?

Yes, Michael J. Koss, Jr. was promoted to Executive Vice President with added oversight of sourcing and logistics.
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