KOSS

Financial Performance: Koss Corporation reported a 27.1% increase in net sales for Q1 2025, totaling $4,070,778, and achieved a net income of $243,729, a significant turnaround from a net loss of $419,535 in the same quarter last year.

Sales Growth Drivers: The sales success was attributed to a major sale to an education market customer and a 22.5% growth in direct-to-consumer sales, despite a decline in European sales due to distributor re-orders.

Gross Margin Improvement: Gross margins improved from 36.6% to 40.0% year-over-year, primarily due to a favorable mix of higher-margin direct-to-consumer sales, although tariffs on Chinese goods posed challenges.

Leadership Changes: Michael J. Koss, Jr. was promoted to Executive Vice President, recognizing his contributions to product development and the growth of the direct-to-consumer segment, while also taking on oversight of sourcing and logistics.

Fourth Quarter Performance: Koss Corporation reported a 6.6% increase in sales for the fourth quarter of fiscal year 2025, totaling $3,084,210, but experienced a net loss of $232,696 compared to a smaller loss of $110,369 in the previous year.

Annual Sales Growth: For the fiscal year ending June 30, 2025, Koss achieved sales of $12,624,170, a 2.9% increase from the prior year, with a reduced net loss of $874,831 compared to $950,911 in the previous year.

Market Insights: The growth was driven by a significant rise in export sales, particularly to European markets, and an 18% increase in Direct-to-Consumer sales, although domestic distributor orders declined due to excess inventory.

Future Challenges: The company anticipates challenges ahead due to newly imposed tariffs on goods from China, which may negatively impact profit margins, despite expectations for stabilization in freight costs.

Fourth Quarter Performance: Koss Corporation reported a 6.6% increase in sales for Q4 2025, totaling $3,084,210, but experienced a net loss of $232,696 compared to a smaller loss of $110,369 in the previous year.

Annual Sales Growth: For the fiscal year ending June 30, 2025, Koss saw a 2.9% rise in sales to $12,624,170, with a reduced net loss of $874,831 compared to $950,911 the prior year.

Market Trends: The growth was driven by a significant increase in export sales (49%) and an 18% rise in Direct-to-Consumer sales, although domestic distributor orders declined due to excess inventory.

Future Outlook: Koss anticipates challenges from new tariffs on Chinese goods affecting margins, while expecting freight costs to stabilize in the upcoming quarter.