Koss Corporation Reports First Quarter Results
Key Highlights
- ➤Q1 net sales $3,094,078, down 24.0% year over year
- ➤Q1 net loss $234,168 versus prior-year net income of $243,729
- ➤Gross margin fell 50 basis points to 39.5%
- ➤DTC sales reached approximately 37% of total turnover
- ➤Final tariff refund contributed $76,000 to gross margin
Expert Statements
Michael J. Koss, Chairman and CEO of Koss Corporation
“Sales to certain domestic distributors were strong in the first quarter of fiscal year 2027 compared with the prior-year period. However, the significant custom order that shipped in the first quarter of last year for an Education customer’s new product launch did not recur this year. European distributor sales for the three months ended September 30, 2026 were on par to those for the same period in the prior year, supported by necessary inventory replenishment orders.”
Michael J. Koss, Chairman and CEO of Koss Corporation
“Direct-to-consumer (DTC) sales continue to positively impact sales growth and now represent approximately 37% of the Company’s total turnover.”
Michael J. Koss, Chairman and CEO of Koss Corporation
“The Company’s gross margin declined 50 basis points to 39.5% in the first quarter of fiscal 2027, compared with 40.0% a year earlier. The benefit to gross margins of a favorable customer mix of higher margin DTC and domestic distributor sales, along with the recognition of a final tariff refund of $76,000 for previously paid import duties on product from China, were negated by the impact of fixed manufacturing overhead absorption on a lower sales base, coupled with higher freight rates due to general rate increases and peak season surcharges.”
Michael J. Koss, Chairman and CEO of Koss Corporation
“We remain encouraged by the strength of our domestic distributor business and the growing contribution of DTC sales, which position the Company to build on these positive trends as the fiscal year progresses.”
MILWAUKEE, Oct. 29, 2026 (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, 2026.
Net sales for the first quarter ended September 30, 2026 were $3,094,078, a decline of $976,700, or 24.0%, compared to net sales of $4,070,778 for the three months ended September 30, 2025. A net loss of $234,168 was generated for the three months ended September 30, 2026 compared to net income of $243,729 for the same period in the prior year. Basic and diluted net loss per common share for the first quarter of fiscal year 2027 was $0.02 compared to basic and diluted net income per common share of $0.03 for the same three-month period one year ago.
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