Koss Corporation reports a 5.4% increase in Q3 net sales, but a slight increase in net loss compared to last year.
Quiver AI Summary
Koss Corporation has announced its financial results for the third quarter ending March 31, 2025, reporting a net sales increase of 5.4% to $2,781,006 compared to the same period last year. However, the company experienced a slight increase in its net loss, reaching $316,742, which is only marginally higher than the previous year's loss of $313,780. For the nine-month period, net sales also grew by 1.8% year-over-year, while net loss improved significantly from $840,542 to $642,135. CEO Michael J. Koss attributed the sales growth to increased international distributor sales, despite a significant drop in sales to education markets and domestic distributors. The company noted a notable improvement in profit margins and expressed concerns over potential impacts from recent tariff announcements affecting costs due to its reliance on Chinese sourcing.
Potential Positives
- Net sales increased by 5.4% for the third quarter, indicating growth and a positive market response.
- For the nine-month period, net sales also improved by 1.8%, reflecting overall stability and growth in revenue year-over-year.
- The company achieved a margin improvement of over 600 basis points, indicating better operational efficiency and cost management compared to the previous year.
Potential Negatives
- Despite a 5.4% increase in net sales for the third quarter, the company reported a net loss of $316,742, which is a slight increase from the previous year's loss, indicating ongoing financial challenges.
- The significant nearly 60% drop in sales to the education markets due to postponement of a large project suggests vulnerability in market segments critical to the company's revenue.
- The company faces potential negative impacts on product costs due to recent tariffs on products sourced from China, which could affect profitability and pricing strategies moving forward.
FAQ
What are Koss Corporation's Q3 2025 net sales figures?
Koss Corporation reported net sales of $2,781,006 for Q3 2025, a 5.4% increase from the previous year.
Did Koss Corporation experience a profit in Q3 2025?
No, Koss Corporation reported a net loss of $316,742 for Q3 2025, slightly higher than the previous year's loss.
How did sales to international markets affect Koss's performance?
Sales to distributors in Europe and Asia significantly boosted overall sales due to successful new product launches.
What impact did tariffs have on Koss Corporation's costs?
Recent tariff announcements are expected to significantly affect product costs, as many products are sourced from China.
How does Koss's direct-to-consumer sales contribute?
Direct-to-consumer sales continue to support growth, though they were partially offset by a decline in education market sales.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$KOSS Insider Trading Activity
$KOSS insiders have traded $KOSS stock on the open market 1 times in the past 6 months. Of those trades, 0 have been purchases and 1 have been sales.
Here’s a breakdown of recent trading of $KOSS stock by insiders over the last 6 months:
- JOHN C JR KOSS (Vice President - Sales) sold 25,000 shares for an estimated $184,725
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$KOSS Hedge Fund Activity
We have seen 12 institutional investors add shares of $KOSS stock to their portfolio, and 7 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- MARSHALL WACE, LLP added 60,580 shares (+inf%) to their portfolio in Q4 2024, for an estimated $447,080
- CITADEL ADVISORS LLC added 28,725 shares (+inf%) to their portfolio in Q4 2024, for an estimated $211,990
- JANE STREET GROUP, LLC added 16,982 shares (+inf%) to their portfolio in Q4 2024, for an estimated $125,327
- SUSQUEHANNA INTERNATIONAL GROUP, LLP added 13,919 shares (+inf%) to their portfolio in Q4 2024, for an estimated $102,722
- VIRTU FINANCIAL LLC added 12,399 shares (+inf%) to their portfolio in Q4 2024, for an estimated $91,504
- UBS GROUP AG added 3,915 shares (+97875.0%) to their portfolio in Q4 2024, for an estimated $28,892
- MORGAN STANLEY added 2,000 shares (+2500.0%) to their portfolio in Q4 2024, for an estimated $14,760
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
MILWAUKEE, May 08, 2025 (GLOBE NEWSWIRE) -- Koss Corporation (NASDAQ: KOSS) (the “Company”), the U.S. based high-fidelity headphone company, has reported its results for the third quarter ended March 31, 2025.
Net sales for the three months ended March 31, 2025 were $2,781,006 compared to $2,637,606 for the same three-month period in the prior year, an increase of $143,400, or 5.4%. The net loss for the third quarter ended March 31, 2025 was $316,742 compared to a net loss of $313,780 for the third quarter of the prior fiscal year. Basic and diluted net loss per common share for the third quarter of fiscal years 2025 and 2024 was $0.03.
For the nine months ended March 31, 2025, net sales $9,539,960, an increase of $168,292, or 1.8%, over the net sales of $9,371,668 for the comparable period in the prior year. The net loss of $642,135 for the nine months ended March 31, 2025 showed an improvement to the net loss of $840,542 for the same nine-month period in the prior year. Basic and diluted net loss per common share was $0.07 and $0.09 for the nine months ended March 31, 2025 and 2024, respectively.
“A substantial increase in sales to our distributors in Europe and Asia, mainly a result of the success of new product sales, was the primary driver of the improvement in overall sales for the fiscal year-to-date March 2025 period over the same period in the prior year,” Michael J. Koss, Chairman and CEO, said today. “Direct-to-consumer (DTC) sales continue to contribute to the sales growth but unfortunately, a near 60% drop in sales to the education markets, due to postponement of a large project, combined with lower sales to our domestic distributors, mostly offset the favorability.”
Koss further noted, “margin improvement of over 600 basis points during the first nine months of fiscal year 2025 compared to the same period last year was primarily a result of the adverse impact on prior year’s margins from the sell-through of inventory brought in at higher transit costs. The write-off of some obsolete products during the current year partially offset those gains.”
Additionally, Koss commented, “Given that a substantial portion of the Company’s products are sourced from China, the recent tariff announcements will have a significant impact on product costs. We are closely monitoring the latest updates and the potential impacts on our operations and financial condition. We have developed a strategic response and will finalize and implement as appropriate to mitigate adverse effects.”
About Koss Corporation
Koss Corporation markets a complete line of high-fidelity headphones, wireless Bluetooth® speakers, computer headsets, telecommunications headsets, active noise canceling headphones, and wireless headphones.
Forward-Looking Statements
This press release contains forward-looking statements. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as “aims,” "anticipates," "believes," "estimates," "expects," "intends," "plans," “thinks,” "may," "will," “shall,” "should," “could,” “would,” "forecasts," "predicts," "potential," "continue," or the negative of such terms and other comparable terminology. These statements are based on currently available operating, financial and competitive information and are subject to various risks and uncertainties. Actual events or results may differ materially. In evaluating forward-looking statements, you should specifically consider various factors that may cause actual results to vary from those contained in the forward-looking statements, such as general economic conditions, inflationary cost environment, supply chain disruption, the impacts of public health events, such as pandemics, geopolitical instability and war, consumer demand for the Company's and its customers' products, competitive and technological developments, foreign currency fluctuations, and costs of operations. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are only made as of the date of this press release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances or new information. In addition, such uncertainties and other operational matters are discussed further in the Company's quarterly and annual filings with the Securities and Exchange Commission.
KOSS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) |
|||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
March 31 | March 31 | ||||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||||
Net sales | $ | 2,781,006 | $ | 2,637,606 | $ | 9,539,960 | $ | 9,371,668 | |||||||
Cost of goods sold | 1,696,334 | 1,796,083 | 5,877,405 | 6,354,015 | |||||||||||
Gross profit | 1,084,672 | 841,523 | 3,662,555 | 3,017,653 | |||||||||||
Selling, general and administrative expenses | 1,603,678 | 1,451,247 | 4,960,478 | 4,572,049 | |||||||||||
Loss from operations | (519,006 | ) | (609,724 | ) | (1,297,923 | ) | (1,554,396 | ) | |||||||
Interest income | 208,175 | 214,814 | 667,219 | 636,482 | |||||||||||
Loss before income tax provision (benefit) | (310,831 | ) | (394,910 | ) | (630,704 | ) | (917,914 | ) | |||||||
Income tax provision (benefit) | 5,911 | (81,130 | ) | 11,431 | (77,372 | ) | |||||||||
Net loss | $ | (316,742 | ) | $ | (313,780 | ) | $ | (642,135 | ) | $ | (840,542 | ) | |||
Loss per common share: | |||||||||||||||
Basic | $ | (0.03 | ) | $ | (0.03 | ) | $ | (0.07 | ) | $ | (0.09 | ) | |||
Diluted | $ | (0.03 | ) | $ | (0.03 | ) | $ | (0.07 | ) | $ | (0.09 | ) | |||
Weighted-average number of shares: | |||||||||||||||
Basic | 9,375,795 | 9,254,795 | 9,346,952 | 9,243,559 | |||||||||||
Diluted | 9,375,795 | 9,254,795 | 9,346,952 | 9,243,559 | |||||||||||
CONTACT: |
Michael J. Koss
Chairman & CEO (414) 964-5000 [email protected] |
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