Koss Corporation Reports Profitable Second Quarter Results

Koss Corporation (NASDAQ: KOSS), the U.S. based high-fidelity headphone company, recently disclosed its financial results for the second quarter ending December 31, 2024. The company noted that net sales for the three-month period stood at $3,557,086 compared to $3,360,124 for the same period in the previous year, showing an increase of $196,962 or 5.9%. In terms of net income, the company reported a positive outcome of $94,142 for the second quarter of the fiscal year 2025, a significant turnaround from the net loss of $269,153 in the corresponding period of the prior fiscal year. Basic and diluted net income per common share for this quarter were recorded at $0.01, in contrast to a basic and diluted net loss per common share of $0.03 in the prior year.

For the six months ending December 31, 2024, Koss registered net sales of $6,758,954, marking a slight increase of $24,892, or 0.4%, compared to $6,734,062 in the same period last year. The net loss for the six-month period in 2024 was $325,393, showing a favorable position compared to the net loss of $526,762 for the equivalent period in 2023. Basic and diluted net loss per common share for the six months of fiscal year 2024 was $0.03, an improvement from $0.06 for the same period in 2023.

Michael J. Koss, the Chairman and CEO, expressed that the increase in sales during the first six months of the current fiscal year was mainly attributed to sales to the company’s two largest export distributors, driven by new product sales that exceeded expectations. He highlighted a boost in direct-to-consumer (DTC) sales and a significant custom order from a new domestic customer, which contributed to the growth. However, these gains were partly offset by lower sales to the Education market, e-tailers, and U.S. domestic distributors.

Koss further explained that increased DTC sales and new product sales in Europe contributed to higher margins, along with favorable volumes of higher margin sales to domestic distributors. This led to an increase in gross margins to 38.1% for the first half of the current fiscal year, up from 32.3% for the same period the previous year.

Looking ahead, Koss mentioned a slight uptick in freight costs during the first half of the fiscal year and anticipated further increases in the future. The company intends to closely monitor the supply chain and potential tariffs, taking necessary actions to address any adverse changes.

Koss Corporation is known for marketing a complete line of high-fidelity headphones, wireless Bluetooth® speakers, computer headsets, telecommunications headsets, active noise-canceling headphones, and wireless headphones.

The press release containing forward-looking statements underlines that actual events or results may differ materially due to various risks and uncertainties, including economic conditions, supply chain disruptions, public health events, geopolitical instability, consumer demand, competitive developments, currency fluctuations, and operational costs. Shareholders and investors are urged to consider these factors while evaluating the forward-looking statements and to not unduly rely on them. The Company pledges to provide timely updates and disclosures as necessary.

This summarized information is based on the recently filed 8-K SEC Filing by Koss Corporation.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Koss’s 8K filing here.

Koss Company Profile

Koss Corporation, together with its subsidiaries, engages in the design, manufacture, and sale of stereo headphones and related accessories in the United States, the Czech Republic, Sweden, Canada, Korea, Republic of Belgium, Malaysia, and internationally. It offers high-fidelity headphones, wireless bluetooth headphones, wireless bluetooth speakers, computer headsets, telecommunications headsets, and active noise canceling headphones.