Quarterly ResultMay 7, 2026, 05:17 PM
Koss Q3 Net Sales +1.6% to $2.82M; Net Loss $0.06/Share
AI Summary
Koss Corporation reported a 1.6% increase in net sales to $2,824,763 for the third quarter ended March 31, 2026, driven by strong domestic distributor and education market sales. However, the company's net loss widened significantly to $546,587, or $0.06 per share, compared to a net loss of $316,742 in the prior year. Gross margins declined by 290 basis points for the nine-month period due to higher tariffed inventory and freight rates, despite a 23% growth in direct-to-consumer sales and a slowdown in European markets.
Key Highlights
- Q3 net sales increased 1.6% to $2,824,763 compared to prior year.
- Q3 net loss widened to $546,587, up from $316,742 in prior year.
- Q3 basic and diluted net loss per share was $0.06, up from $0.03.
- Nine-month net sales rose 2.3% to $9,756,920 year-over-year.
- Nine-month net loss increased to $868,265 from $642,135 prior year.
- Gross margins for nine months fell to 35.5% from 38.4% year-over-year.
- Direct-to-consumer (DTC) sales grew 23% year-over-year, becoming largest segment.
- European market sales slowed significantly due to reduced consumer confidence.