Koss Q4 turns profit on 36% DTC sales surge
Koss Corporation (KOSS) reported improved fourth quarter and full-year results for the periods ended June 30, 2026.
Rhea-AI Filing Summary
Koss Corporation (KOSS) reported improved fourth quarter and full-year results for the periods ended June 30, 2026. Fourth quarter net sales were $3.26 million, up 5.8% from $3.08 million a year earlier, with net income of $476,801 versus a net loss of $232,696, and earnings of $0.05 per share versus a loss of $0.02.
Growth in the quarter was driven by direct-to-consumer sales, which increased 36.2% year over year, including a 45.6% increase in Koss.com sales, and roughly 12% growth to certain domestic distributors, while European markets declined as distributors reduced inventory.
For fiscal 2026, net sales were $13.0 million, up 3.1% from $12.6 million, primarily from a custom headphones sale to an Education customer and stronger DTC and domestic distributor sales. The company’s net loss narrowed to $391,464 from $874,831, with loss per share improving to $0.04 from $0.09. Tariff refunds of $1.0 million and a more favorable sales mix lifted gross margin from 37.8% to 41.9%. Koss highlighted a “diversification by acquisition” strategy aimed at building additional recurring revenue streams over the next five years.
Positive
- Net loss more than cut in half: fiscal 2026 net loss was $391,464 versus $874,831 in 2025, with loss per share improving from $0.09 to $0.04.
- Gross margin expanded to 41.9% from 37.8% year over year, aided by $1.0 million in tariff refunds and a higher-margin sales mix including DTC and domestic distributor growth.
Negative
- Company remains unprofitable for the full year despite improvement, with a fiscal 2026 net loss of $391,464 and continued dependence on factors like tariff relief and mix for profitability.
Filing Explained
Fiscal-year operations remained loss-making, while interest and other income reduced the reported net loss; the filing adds no holder-ownership mechanics.
On
The results information is furnished, and Koss states it is not deemed filed under Section 18 or incorporated by reference; for existing common holders, the filing’s direct effect is updated financial information rather than a disclosed ownership transaction.
The annual statement shows a
8-K Event Classification
Key Figures
Key Terms
direct-to-consumer (DTC) sales financial
gross margin financial
tariff refunds financial
diversification by acquisition financial
forward-looking statements regulatory
Earnings Snapshot
FAQ
How did KOSS perform in the fourth quarter of fiscal 2026?
What were KOSS’s full-year 2026 sales and earnings?
How fast are KOSS’s direct-to-consumer and Koss.com sales growing?
What drove KOSS’s gross margin improvement in fiscal 2026?
What strategic direction did KOSS outline for future growth?
How are KOSS’s European and domestic distributor markets performing?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
(Exact name of registrant as specified in its charter)
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
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Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On August 27, 2026, Koss Corporation issued a press release (the “Press Release”) announcing its financial results for the quarter and year ended June 30, 2026. A copy of the Press Release is being furnished as Exhibit 99.1 to this Form 8-K and is incorporated herein by reference.
The information in this Item 2.02 Results of Operations and Financial Condition, including Exhibit 99.1 attached hereto, is being furnished pursuant to Item 2.02 of Form 8-K. In accordance with General Instruction B.2 of Form 8-K, the information in this Item 2.02 and Exhibit 99.1 shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
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Number | Description |
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Exhibit 99.1 | Press release of Koss Corporation dated August 27, 2026 |
Exhibit 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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August 27, 2026 | KOSS CORPORATION | |
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| By: | /s/ Michael J. Koss |
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| Michael J. Koss |
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| Chairman and Chief Executive Officer |
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FOR IMMEDIATE RELEASE |
CONTACT: |
Michael J. Koss |
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August 27, 2026 |
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Chairman & CEO |
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(414) 964-5000 |
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mjkoss@koss.com |
Koss Corporation Releases Fourth Quarter and Full Year Results
Milwaukee, Wisconsin: Koss Corporation (NASDAQ: KOSS) (the “Company”), the U.S. based high-fidelity headphone company, has reported its results for the fourth quarter and fiscal year ended June 30, 2026.
For the three months ended June 30, 2026, net sales of $3,263,853 reflected an increase of $179,643, or 5.8%, over net sales of $3,084,210 for the same period in fiscal year 2025. The net income for the fourth quarter of fiscal year 2026 was $476,801 compared to a net loss of $232,696 for the fourth quarter of the prior fiscal year, an increase of $709,497. Basic and diluted net income per common share for the quarter ended June 30, 2026 were $0.05, compared to basic and diluted net loss of $0.02 for the same fiscal quarter in the prior year.
“Direct-to-consumer (DTC) sales were the biggest contributor to growth for the three months ended June 30, 2026, with an increase of 36.2% over the prior year’s same fiscal quarter, led by strong performances in the Porta Pro wired and wireless headphones family. Koss.com sales showed a remarkable 45.6% increase over the same period in the prior fiscal year,” Michael J. Koss, Chairman and CEO, said in a statement today. “Sales to certain domestic distributors remained strong in the fourth quarter, increasing approximately 12% year over year, however, our European markets continue to show year over year declines as those distributors slow down stock replenishments and maintain lower stock levels.”
For the year ended June 30, 2026, sales of $13,020,773 were up $396,603, or 3.1%, over prior year sales of $12,624,170, with the primary driver being a custom headphones sale to a customer in the Education market segment. DTC sales and sales to several domestic distributors also showed substantial increases for the full fiscal year compared to the prior year. Net loss for the full fiscal year 2026 of $391,464 declined $483,367 compared to a net loss of $874,831 for fiscal year 2025. Both basic and diluted net loss per common share for the years ended June 30, 2026 and 2025 were $0.04 and $0.09, respectively.
“Full fiscal year sales growth was primarily driven by the custom headphones sale to the Education market, along with strong DTC sales supported by online marketing and social media campaigns, and continued strength in a segment of our domestic distributor business as inventory levels were replenished to adequate levels,” Koss continued. “Tariff refunds of $1.0 million received in the fourth quarter of fiscal year 2026 for previously paid import duties imposed on products from China helped to offset the adverse impact of tariffs paid during the year, resulting in gross margin improvement from 37.8% for the fiscal year ended June 30, 2025 to 41.9% for the 2026 fiscal year. The favorable customer mix, which included higher volumes of higher margin DTC and domestic distributor sales, also helped fuel the increase in margins. The Company’s previously announced ‘diversification by acquisition’ strategy is intended to reshape its profile over the next five years by creating additional predictable, recurring revenue streams for the company.”
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.
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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 "anticipates," "believes," "estimates," "expects," "intends," "plans," "may," "will," "should," “could,” “would,” “shall,” "forecasts," "predicts," "potential," "continue," “seeks,” “goal,” “projects” 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 continued future fluctuations in economic conditions; the Company’s ability to successfully develop new products and assess potential market opportunities; the receptivity of consumers to new consumer electronics technologies; the Company’s ability to successfully and profitably market its products; the rate and consumer acceptance of new product introductions; the amount and nature of competition for the Company’s products; pricing; the number and nature of customers and their product orders; the Company’s ability to meet demand for products; production by third party vendors; foreign manufacturing, sourcing, and sales (including foreign government regulation, trade and importation concerns); uncertainties associated with the pandemics and other health crises or natural disasters, including their possible effects on the Company’s operations and its supply chain; changes in trade policies and tariffs, import and export restrictions; the impact of the ongoing conflict in Eastern Europe and the instability in the Middle East on the Company’s operations; the effects of any judicial, executive or legislative action affecting the Company or the audio/video industry; borrowing costs; changes in tax rates; volatility in the price and trading volume of our common stock; the outcome of any litigation, government investigations, enforcement actions or other legal proceedings; any impacts of future acquisitions or other strategic transactions; the possibility that costs or difficulties related to the integration of acquired businesses’ operations will be greater than expected and the possibility that integration efforts will disrupt our business and strain management time and resources; the Company’s ability to retain and hire key personnel and other risk factors described in the Risk Factors and Management’s Discussion and Analysis of Financial Condition and Results of Operations sections in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2026. 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.
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KOSS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
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Three Months Ended |
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Twelve Months Ended |
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June 30, |
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June 30, |
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2026 |
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2025 |
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2026 |
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2025 |
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Net sales |
$ |
3,263,853 |
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$ |
3,084,210 |
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$ |
13,020,773 |
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$ |
12,624,170 |
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Cost of goods sold |
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1,273,701 |
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1,973,166 |
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7,568,362 |
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7,850,572 |
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Gross profit |
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1,990,152 |
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1,111,044 |
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5,452,411 |
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4,773,598 |
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Selling, general and administrative expenses |
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1,722,854 |
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1,550,243 |
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6,964,862 |
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6,510,721 |
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Income (loss) from operations |
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267,298 |
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(439,199) |
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(1,512,451) |
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(1,737,123) |
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Interest income |
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213,508 |
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212,555 |
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883,995 |
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879,774 |
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Other income |
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- |
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- |
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250,000 |
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- |
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Interest expense |
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(458) |
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- |
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(2,116) |
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- |
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Total other income, net |
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213,050 |
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212,555 |
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1,131,879 |
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879,774 |
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Income (loss) before income tax provision |
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480,348 |
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(226,644) |
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(380,572) |
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(857,349) |
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Income tax provision |
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3,547 |
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6,052 |
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10,892 |
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17,482 |
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Net income (loss) |
$ |
476,801 |
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$ |
(232,696) |
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$ |
(391,464) |
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$ |
(874,831) |
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Income (loss) per common share: |
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Basic |
$ |
0.05 |
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$ |
(0.02) |
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$ |
(0.04) |
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$ |
(0.09) |
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Diluted |
$ |
0.05 |
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$ |
(0.02) |
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$ |
(0.04) |
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$ |
(0.09) |
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Weighted-average number of shares: |
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Basic |
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9,466,438 |
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9,390,855 |
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9,462,904 |
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9,363,117 |
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Diluted |
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9,466,438 |
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9,390,855 |
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9,462,904 |
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9,363,117 |
3