Shares of Koss Corporation (KOSS) have declined 1.6% since the company reported its earnings for the quarter ended Dec. 31, 2024. This compares to the S&P 500 index’s 0.5% decline over the same time frame. Over the past month, the stock has declined 21.5% against the S&P 500’s 0.6% growth.See the Zacks Earnings Calendar to stay ahead of market-making news.For the fiscal second quarter, Koss reported earnings per share (EPS) of 1 cent against a loss per share of 3 cents in the prior-year quarter.The company ...

Financial Performance - Net sales for the three months ended December 31, 2024, were $3,557,086, representing a 5.9% increase from $3,360,124 in the same period of 2023[50]. - Gross profit for the three months ended December 31, 2024, was $1,404,957, with a gross profit margin of 39.5%, up from 33.0% in the prior year[50][55]. - Selling, general and administrative expenses for the three months ended December 31, 2024, decreased slightly to $1,546,741, or 43.5% of net sales, compared to 47.2% in the same period of 2023[50][57]. - Export sales for the three months ended December 31, 2024, were $1,376,000, a 90% increase compared to $693,000 in the prior year, driven by new product sales to European distributors[53]. - Domestic market sales declined by $486,000, or 18.2%, year over year for the three-month period ended December 31, 2024[54]. - The effective tax rate for the three months ended December 31, 2024, was 2.8%, compared to less than 1% in the same period of 2023[59]. Cash Flow and Investments - The company had $2.5 million in cash and cash equivalents and $7.2 million in short-term investments as of December 31, 2024[62]. - The Company experienced a net operating loss for the first half of fiscal year 2024, resulting in cash used in operating activities of $(50,419) compared to $(345,185) in the same period of fiscal year 2023[75]. - Cash used in investing activities for the six months ended December 31, 2024, was $(403,380), primarily for fixed asset expenditures, including approximately $346,000 for roof replacement[77]. - The Company had a net decrease in cash and cash equivalents of $(301,354) for the six months ended December 31, 2024, compared to $(566,808) in the prior year[75]. - The Company believes its existing cash and cash equivalents, along with cash provided by operating activities, will be sufficient to meet anticipated working capital and capital expenditure requirements over the next twelve months[80]. - The Company had no outstanding borrowings on its bank line of credit facility as of December 31, 2024[79]. Operational Challenges - The company expects shipment costs to increase in the coming quarters due to general rate increases and supply chain delays[56]. - The Company anticipates that economic uncertainties, including inflation and consumer confidence, will continue to impact its business performance[64]. - The Company continues to monitor supply chain disruptions and trade tensions, particularly with China, which may affect future shipments and costs[68]. - Cyberattacks are identified as a significant risk, potentially impacting the Company's operations and financial condition due to the reliance on information systems[72]. Strategic Decisions - The Company maintains a program focused on enforcing its intellectual property, particularly its wireless headphone technology patents[61]. - The lease for the Company's 126,000 square foot facility was renewed for five years at a fixed rate of $380,000 per year, with an option to renew for an additional five years starting July 1, 2028[83]. - The Company suspended sales to Russia following sanctions imposed due to the invasion of Ukraine, with no sales recorded during the three and six months ended December 31, 2024, and 2023[71]. - The Company issued 76,000 shares of common stock from employee stock option exercises during the six months ended December 31, 2024, compared to 20,000 shares in the same period of 2023[78].

Financial Performance - Net sales for Q2 2025 were $3,557,086, an increase of $196,962 or 5.9% compared to $3,360,124 in Q2 2024[2] - Net income for Q2 2025 was $94,142, a significant improvement from a net loss of $269,153 in Q2 2024, resulting in a basic and diluted net income per share of $0.01 compared to a loss of $0.03[2] - For the six months ended December 31, 2024, net sales were $6,758,954, up slightly by $24,892 or 0.4% from $6,734,062 in the prior year[3] - The company experienced a net loss of $325,393 for the six months ended December 31, 2024, an improvement from a net loss of $526,762 in the same period of the prior year[3] Gross Margin and Sales Growth - The gross margin increased to 38.1% for the first half of the fiscal year, compared to 32.3% for the same period in the prior year, driven by higher direct-to-consumer sales and new product sales[4] - Sales to the European market exceeded prior year sales by over 100%, contributing significantly to the overall sales growth[4] Expenses and Income - Selling, general and administrative expenses for the first half of the fiscal year were $3,356,800, compared to $3,120,802 in the prior year[9] - Interest income for the six months ended December 31, 2024, was $459,044, compared to $421,668 in the prior year[9] - The weighted-average number of basic shares for the six months ended December 31, 2024, was 9,332,844, slightly up from 9,238,002 in the prior year[9] Supply Chain and Costs - The company anticipates further increases in freight costs and is monitoring the supply chain and potential tariffs closely[4]

Core Insights - Koss Corporation reported a net sales increase of 5.9% for the second quarter ended December 31, 2024, reaching $3,557,086 compared to $3,360,124 in the same period last year [2] - The company achieved a net income of $94,142 for the second quarter, a significant turnaround from a net loss of $269,153 in the prior year [2] - For the six months ended December 31, 2024, net sales were $6,758,954, a slight increase of 0.4% from $6,734,062 in the same period last year, while the net loss improved to $325,393 from $526,762 [3] Financial Performance - Gross margins increased to 38.1% for the first half of the current fiscal year, up from 32.3% in the prior year, driven by higher direct-to-consumer sales and new product sales to Europe [4] - Selling, general and administrative expenses for the second quarter were $1,546,741, slightly down from $1,584,523 in the previous year [7] - The company reported a loss from operations of $141,784 for the second quarter, an improvement from a loss of $476,083 in the same period last year [7] Sales and Market Dynamics - Sales to the two largest export distributors significantly contributed to the sales increase, with new product sales exceeding expectations and surpassing prior year sales to the European market by over 100% [4] - Increased direct-to-consumer sales and a significant custom order from a new domestic customer also contributed to growth, although these gains were partially offset by lower sales to the education market and U.S. domestic distributors [4] - The company experienced slight increases in freight costs and anticipates further rises, indicating a need to monitor supply chain dynamics closely [4]

Core Insights - Koss Corporation reported a loss per share of 5 cents for Q1 fiscal 2025, widening from a 3 cents loss in the same quarter last year [1] - Net sales decreased by 5.1% year-over-year to $3.2 million, down from $3.4 million in Q1 fiscal 2024 [1][3] Sales Performance - The decline in sales was primarily attributed to lower demand from U.S. distributors and reduced orders from the Education and Music segments [2][3] - Despite the overall decline, Koss experienced notable growth in European markets and direct-to-consumer (DTC) channels, indicating strategic resilience [2][4] International and DTC Growth - International sales saw a significant increase, particularly from Koss' two largest European distributors, which grew by over 30% [4] - Direct-to-consumer sales, especially on Amazon, achieved record-setting sales days, driven by the successful launch of the Porta Pro Wireless 2.0 [4] Cost and Profitability - The cost of goods sold decreased to $2 million from $2.3 million in the previous year, contributing to an improved gross margin [5] - Gross profit increased to $1.2 million, up from $1.1 million, with gross margin climbing from 31.6% to 36.6% due to a favorable product mix [6] Expenses and Losses - Selling, general and administrative (SG&A) expenses rose by 17.8% to $1.8 million, reflecting increased spending on product launches and DTC enhancements [7] - The net loss for the quarter was $0.4 million, wider than the $0.3 million loss in Q1 fiscal 2024, driven by mixed sales performance and higher SG&A costs [9]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 0-3295 KOSS CORPORATION (Exact Name of Registrant as Specified in its Charter) DELAWARE 39-1168275 (State or other jurisdiction of (I.R.S. Employer Identif ...

4129 NORTH PORT WASHINGTON AVENUE, MILWAUKEE, WI 53212 / 414 964-5000 / WWW.KOSS.COM FOR IMMEDIATE RELEASE CONTACT: Michael J. Koss October 31, 2024 Chairman & CEO (414) 964-5000 mjkoss@koss.com Koss Corporation Releases First Quarter Results Milwaukee, Wisconsin: Koss Corporation (NASDAQ: KOSS) (the "Company"), the U.S. based high-fidelity headphone company, has reported its results for the first quarter ended September 30, 2024. Net sales for the first quarter ended September 30, 2024 were $3,201,868 comp ...

Core Viewpoint - Koss Corporation reported a decline in net sales and an increase in net loss for the first quarter of fiscal year 2025 compared to the same period last year, despite some positive developments in product launches and direct-to-consumer sales [2][3]. Financial Performance - Net sales for the first quarter ended September 30, 2024, were $3,201,868, a decrease of $172,070 or 5.1% from $3,373,938 in the prior year [2][7]. - The net loss for the quarter was $419,535, compared to a net loss of $257,609 in the same quarter of the previous fiscal year [2][7]. - Basic and diluted loss per common share was $0.05, up from $0.03 in the comparable period one year ago [2][7]. Sales and Market Dynamics - Sales to domestic distributors decreased primarily due to timing of orders, with declines noted in the Education and Music customer segments [3]. - Sales to the two largest European distributors increased by over 30% following the launch of the Porta Pro Wireless 2.0 in September 2024 [3]. - Direct-to-consumer sales saw an increase, driven by record-setting daily sales on Amazon and the successful launch of the new product [3]. Cost and Margin Analysis - Gross margins improved to 36.6% from 31.6% year-over-year, attributed to higher margins on new product sales and increased volume of higher-margin direct-to-consumer sales [3]. - The company experienced a write-off of older, excess inventory, but this was partially offset by capitalizing freight costs into inventory for future product purchases [4]. Supply Chain Considerations - The company noted a slight increase in freight rates and extended lead times due to port congestion, with expectations for transit rate increases to continue into the next quarter [4]. - Koss Corporation is actively monitoring potential supply chain disruptions to ensure adequate inventory levels ahead of the holiday season [4].

Core Insights - Koss Corporation celebrates the 40th Anniversary of the Koss Porta Pro with the launch of the next generation Koss Porta Pro Wireless Bluetooth Headphones [1][4] Product Features - The Koss Porta Pro Wireless combines the classic sound and design of the original Porta Pro with the convenience of true wireless technology [2] - The new headphones feature a dual steel headband that transmits audio signals without traditional overhead wires, maintaining the iconic fit and sound [3] - The headphones are equipped with a lightweight rechargeable lithium-ion battery that lasts over 20 hours on a single charge, with an analog bypass mode available for continued use when the battery is low [4][5] - Integrated on-board controls allow users to manage music, calls, and volume, enhancing user experience [5] Environmental Impact - The compact design and included carrying case have reduced packaging size by over 50% compared to the Porta Pro Classic, contributing to a lower environmental impact [5] Pricing and Availability - The Koss Porta Pro Wireless Bluetooth headphones are priced at $99.99 and are available in the USA through Koss.com and Amazon [6]

Core Insights - Koss Corporation reported a narrower loss per share of 1 cent for Q4 fiscal 2024, compared to a loss of 3 cents in Q4 fiscal 2023, with a net loss of $0.1 million versus $0.3 million in the prior year [1] - Revenues for the quarter decreased by 5.9% to $2.9 million from $3.1 million year-over-year [1] Financial Performance - The decline in sales was primarily due to reduced orders from the largest European distributor, linked to delayed inventory replenishments, although this was partially offset by a 60% increase in sales in the Education sector and a 16% rise in Direct-to-Consumer sales [2] - Koss faced financial struggles due to reduced sales in key export markets, particularly Europe and Asia, with European sales impacted by higher living costs and interest rates [3] - In Asia, decreased sales from an original equipment manufacturer of metal detectors negatively affected overall figures, but a nearly 50% increase in e-tailer sales and significant orders for custom headphones from a new client helped mitigate declines [4] Cost Management - The company's gross profit for the quarter was $1.2 million, an increase from $0.8 million in the previous year, indicating improved cost management despite lower sales volume [5] - Selling, general, and administrative expenses rose slightly to $1.5 million from $1.4 million, reflecting ongoing operational challenges [5] Full-Year Update - For fiscal 2024, Koss recorded revenues of $12.3 million, a 6.4% decrease from $13.1 million in the previous year, ending the fiscal year with a significant net loss of $1 million compared to a net income of $8.3 million in the prior year [6] - The company incurred a loss of 10 cents per share against earnings of 85 cents per share in fiscal 2023 [6]