Koss(US:KOSS)2026-01-29 22:18Financial Performance - Net sales for Q2 2026 were $2,861,379, a decrease of $695,707 or 19.6% from $3,557,086 in Q2 2025[2] - The company reported a net loss of $565,407 for Q2 2026, compared to a net income of $94,142 in Q2 2025, resulting in a basic and diluted net loss per share of $0.06[2] - For the first six months of fiscal year 2026, net sales increased by $173,203 or 2.6% to $6,932,157 compared to $6,758,954 in the same period last year[3] - Selling, general and administrative expenses rose to $1,845,384 in Q2 2026, compared to $1,546,741 in Q2 2025[9] - The loss from operations for Q2 2026 was $1,014,578, significantly higher than the loss of $141,784 in Q2 2025[9] - Total other income for Q2 2026 was $451,931, compared to $238,686 in Q2 2025, contributing to a net loss before tax of $562,647[9] Gross Margin and Costs - The gross margin decreased by 260 basis points from 38.1% in the first half of fiscal year 2025 to 35.5% in the first half of fiscal year 2026, primarily due to high tariffs on products sourced from China[4] - The company anticipates continued challenges due to economic fluctuations and trade tensions, particularly with tariffs affecting product costs[7] Direct-to-Consumer Business - The direct-to-consumer (DTC) business accounted for approximately 25% of total sales and experienced a year-over-year growth of 13%[4] Share Information - The weighted-average number of basic shares outstanding was 9,462,416 for Q2 2026, compared to 9,355,686 for Q2 2025[9]