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Koss Corporation reported a fiscal first-quarter net income of $0.2 million and earnings per share (EPS) of 3 cents for the period ending September 30, 2025, recovering from a net loss of $0.4 million and EPS loss of 5 cents a year earlier. Despite this return to profitability, KOSS shares have decreased 5.7% since the earnings announcement, compared to a 0.4% decline in the S&P 500, and have dropped 10.1% over the past month.
The company’s net sales reached $4.1 million, a 27.1% increase from $3.2 million in the same period last year, driven by strong demand and a 22.5% rise in direct-to-consumer (DTC) sales. Gross profit improved to $1.6 million with a gross margin of 40%, up from 36.6%, attributed to better customer market mix despite ongoing tariff challenges from high inventory costs.
Chairman and CEO Michael J. Koss noted that a large order from their education sector client significantly contributed to revenue growth. Management also highlighted a strategic focus on DTC sales and the promotion of Michael J. Koss, Jr. to executive vice president to enhance operational execution and product innovation.
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