Koss Corporation Reports First Quarter Results

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

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