Koss Corporation Announces Financial Results for First Quarter 2025

On October 31, 2024, Koss Corporation, a U.S.-based high-fidelity headphone company listed on the Nasdaq Capital Market under the symbol KOSS, released its financial outcomes for the quarter ending September 30, 2024.

According to the report, net sales for the first quarter concluded on September 30, 2024, were noted at $3,201,868, showcasing a decline compared to $3,373,938 for the same period in the previous year, representing a 5.1% drop. The net loss for the three months ending September 30, 2024, was $419,535 in contrast to a net loss of $257,609 in the prior year’s first quarter. Basic and diluted loss per common share for the initial quarter of fiscal year 2025 was detailed at $0.05, contrasting with $0.03 per share for the corresponding three-month period one year ago.

Michael J. Koss, the Chairman and CEO of the company, outlined reasons for the diminished sales to domestic distributors, primarily citing order timing, alongside reduced sales to Education and Music customers. He highlighted a successful launch of the next generation Porta Pro Wireless 2.0 in September 2024, which led to sales growth with two major European distributors surpassing previous year levels by over 30% and an increase in Direct-to-Consumer sales.

Koss attributed an improvement in gross margins to 36.6% compared to 31.6% from a year ago to a favorable mix of customer and product sales. He noted that while a write-off in fiscal 2025’s first quarter on older, surplus inventory occurred, it was somewhat offset by the capitalization of freight costs into inventory for upcoming product purchases.

Regarding the future outlook, Koss highlighted the effects of increased freight rates and extended lead times, intending to manage potential disruptions in the supply chain and enhance inventory levels in preparation for the upcoming holiday season. Koss underscored that the company anticipates ongoing transit rate increases in the subsequent quarter.

About Koss Corporation, the entity focuses on marketing a comprehensive range of high-fidelity headphones, wireless Bluetooth® speakers, computer headsets, telecommunications headsets, active noise-canceling headphones, and wireless headphones.

This press release contains forward-looking statements and advises shareholders and potential investors to judiciously consider various factors affecting the company’s financial performance. The company vows to update any changes or new information promptly. Visit the SEC site for further operational insights and uncertainties.

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.