Koss Kicks Off FY2026 With Strong Q1, Posts $243K Net Income
Koss Corporation, a leading manufacturer of high-quality headphones, has kicked off its fiscal year 2026 with a strong first quarter. The company reported a net income of $243,729, a significant turnaround from the net loss of $419,535 in the same period last year.
The quarter's success can be attributed to a considerable sale to the company's largest Education market customer and a 22.5% growth in direct-to-consumer (DTC) sales. Net sales for the quarter ended September 30, 2025, reached $4,070,778, marking a 27.1% increase from the same period in the prior year.
Koss Corporation's gross margins also improved by 340 basis points, moving from 36.6% to 40.0%. While sales to Europe declined year-over-year, strong sales to Asian markets helped make up for the shortfall in exports. The company's net income per share for the quarter was $0.03, compared to a net loss per share of ($0.05) in the first quarter of the prior fiscal year.
Michael J. Koss, Jr. was promoted to Executive Vice President in recognition of his significant contributions to the creation of new products, the growth of the Company's direct to consumer segment, and his leadership in enforcement actions related to the firm's patented intellectual property.
Despite facing various risks and uncertainties, including supply chain disruption and geopolitical instability, Koss Corporation has started its fiscal year 2026 on a positive note. The company continues to closely monitor the tariff landscape to minimize negative effects on its operations, given its reliance on products coming from China. With its strong first quarter performance, Koss Corporation looks set to continue its momentum in the coming quarters.
