Koss Corporation Reports 5.9% Increase in Q2 Net Sales and Transition to Profitability for Fiscal Year 2025

Koss Corporation reported Q2 2025 net sales of $3.56 million, with net income of $94,142, reversing last year's losses.

Quiver AI Summary

Koss Corporation has announced its financial results for the second quarter ending December 31, 2024, reporting net sales of $3.56 million, a 5.9% increase from the previous year. The company also recorded a net income of $94,142, a significant improvement from a net loss of $269,153 in the same quarter last year. For the first half of the fiscal year, net sales totaled $6.76 million, up slightly by 0.4% compared to the previous year, while the net loss decreased to $325,393 from $526,762. The growth in sales was largely driven by strong performances from major export distributors and new products, although sales to the education market declined. Gross margins increased thanks to a shift toward direct-to-consumer sales and higher margin items. The company is closely monitoring freight costs and supply chain dynamics as they anticipate further increases in freight expenses.

Potential Positives

• Net sales increased by 5.9% in the second quarter compared to the same period last year, demonstrating strong sales growth.
• Net income of $94,142 in the second quarter, a significant turnaround from a net loss of $269,153 in the prior year, indicating improved profitability.
• Gross margins improved to 38.1% in the first half of the fiscal year, up from 32.3% in the same period last year, reflecting better cost management and product sales.
• Sales to the European market surged by over 100%, highlighting successful expansion and demand for new products abroad.

Potential Negatives

• Despite a net income turnaround compared to the prior year, the overall sales growth of only 0.4% for the first half raises concerns about long-term growth prospects.
• The significant drop in sales to the Education market and U.S. domestic distributors indicates vulnerability in those sectors, suggesting potential instability in revenue streams.
• Increased freight costs and potential future rises could further squeeze margins and impact profitability going forward.

FAQ

What were Koss Corporation's net sales for Q2 2025?

Koss Corporation reported net sales of $3,557,086 for the second quarter ended December 31, 2024, a 5.9% increase from the prior year.

How did Koss's net income change in Q2 2025?

The net income for Q2 2025 was $94,142, compared to a net loss of $269,153 in Q2 2024.

What contributed to Koss Corporation's sales growth?

Sales growth was driven by new product launches, increased direct-to-consumer sales, and custom orders from a new domestic customer.

What were Koss Corporation's gross margins for the first half of 2025?

Koss Corporation's gross margins increased to 38.1% for the first half of fiscal year 2025, up from 32.3% in the previous year.

How does Koss Corporation address supply chain challenges?

Koss Corporation monitors supply chain conditions and anticipates actions to mitigate risks related to freight costs and potential tariffs.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

$KOSS Insider Trading Activity

$KOSS insiders have traded $KOSS stock on the open market 1 times in the past 6 months. Of those trades, 0 have been purchases and 1 have been sales.

Here’s a breakdown of recent trading of $KOSS stock by insiders over the last 6 months:

• JOHN C JR KOSS (Vice President - Sales) sold 25,000 shares for an estimated $184,725

To track insider transactions, check out Quiver Quantitative's insider trading dashboard.

$KOSS Hedge Fund Activity

We have seen 8 institutional investors add shares of $KOSS stock to their portfolio, and 7 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

• DIMENSIONAL FUND ADVISORS LP removed 145,958 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $1,078,629
• VANGUARD GROUP INC removed 11,565 shares (-4.4%) from their portfolio in Q3 2024, for an estimated $85,465
• UBS GROUP AG removed 4,106 shares (-99.9%) from their portfolio in Q3 2024, for an estimated $30,343
• GEODE CAPITAL MANAGEMENT, LLC added 1,744 shares (+2.9%) to their portfolio in Q3 2024, for an estimated $12,888
• TOWER RESEARCH CAPITAL LLC (TRC) added 1,456 shares (+333.9%) to their portfolio in Q3 2024, for an estimated $10,759
• ROYAL BANK OF CANADA removed 1,242 shares (-82.7%) from their portfolio in Q3 2024, for an estimated $9,178
• NORTHERN TRUST CORP removed 117 shares (-1.0%) from their portfolio in Q3 2024, for an estimated $864

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

Full Release

MILWAUKEE, Jan. 30, 2025 (GLOBE NEWSWIRE) -- Koss Corporation (NASDAQ: KOSS) (the “Company”), the U.S. based high-fidelity headphone company, has reported its results for the second quarter ended December 31, 2024.

For the three months ended December 31, 2024, net sales were $3,557,086 compared to $3,360,124 for the same three-month period in the prior year, an increase of $196,962 or 5.9%. Net income for the second quarter ended December 31, 2024 was $94,142 compared to a net loss of $269,153 for the second quarter of the prior fiscal year. Basic and diluted net income per common share for the second quarter of fiscal year 2025 was $0.01 compared to basic and diluted net loss per common share of $0.03 for the same three-month period one year ago.

Net sales of $6,758,954 for the six months ended December 31, 2024 were up slightly by $24,892, or 0.4%, over the sales of $6,734,062 for the comparable period in the prior year. The net loss of $325,393 for the six months ended December 31, 2024 was $201,369, favorable to the net loss of $526,762 for the same period in the prior year. Basic and diluted net loss per common share was $0.03 for the six months ended December 31, 2024 compared to basic and diluted net loss of $0.06 for the six months ended December 31, 2023.

“Sales to our two largest Export distributors played a major role in the increase in sales for the first six months of the current fiscal year. This improvement was driven by new product sales that far exceeded our expectations, surpassing prior year sales to the European market by over 100%,” Michael J. Koss, Chairman and CEO, said today. “Greater direct-to-consumer (DTC) sales and a significant custom order from a new domestic customer also contributed to the growth compared to the same six-month period in the prior year. Unfortunately, most of these gains were offset by lower sales to the Education market, e-tailers and U.S. domestic distributors.”

Koss continued, stating that “Increased DTC sales and new product sales to Europe helped drive higher margins, along with favorable volumes of higher margin sales to our domestic distributors. Gross margins increased to 38.1% for the first half of our current fiscal year compared to 32.3% for the same period in the prior year. The prior year margins were also negatively impacted by the sell-through of inventory landed in at higher freight rates.”

Koss further noted, “During the first half of our fiscal year, we experienced slight increases in freight costs and anticipate further rises in the future. We will continue to monitor the supply chain and potential tariffs closely and take necessary actions to address any adverse changes.”

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

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 “aims,” "anticipates," "believes," "estimates," "expects," "intends," "plans," “thinks,” "may," "will," “shall,” "should," “could,” “would,” "forecasts," "predicts," "potential," "continue," 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 general economic conditions, inflationary cost environment, supply chain disruption, the impacts of public health events, such as pandemics, geopolitical instability and war, consumer demand for the Company's and its customers' products, competitive and technological developments, foreign currency fluctuations, and costs of operations. 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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.