Koss Corporation reported first‑quarter 2026 results with net sales of $4,070,778, up 27.1% year‑over‑year, and a net income of $243,729, a turnaround from a $419,535 loss in the same quarter a year earlier. Earnings per share were $0.03 on both basic and diluted measures, the first positive EPS for the company in a full fiscal year.
The company’s gross margin rose to 40.0% from 36.6% in the prior year, driven by a 22.5% increase in direct‑to‑consumer sales and a large education‑market customer sale. Higher absorption of fixed manufacturing costs and a reduced reserve for excess inventory helped offset the impact of a 145% tariff on China‑produced goods.
Export sales fell due to delayed re‑orders from major European distributors, but Asian market sales increased enough to offset the shortfall. The company noted that tariff‑related cost pressures on China‑produced goods remain a concern, and it is adjusting sourcing and logistics to minimize negative effects on margins.
Management highlighted the promotion of Michael J. Koss Jr. to Executive Vice President, recognizing his role in product development, DTC growth, and intellectual‑property enforcement. The company reiterated its close monitoring of the evolving tariff landscape and its intent to adjust sourcing and logistics to minimize negative effects on margins.
In the prior quarter (Q4 FY2025), Koss reported net sales of $3,201,868 and a net loss of $419,535. The first‑quarter 2026 results represent a significant turnaround from the $257,609 loss reported in Q1 FY2025, underscoring the company’s improved profitability trajectory.
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