Koss (KOSS) investor relations material

Executive summary

• Q1 FY2027 net sales fell 24.0% YoY to $3,094,078; net loss was $234,168 versus net income of $243,729 a year earlier.

• A prior-year education product rollout did not recur; domestic distributor strength and growing DTC sales partly offset the decline.

Financial highlights

• Gross profit was $1,221,835 versus $1,628,692; operating loss was $400,595 versus $46,040.

• SG&A decreased 3.1% to $1,622,430; total other income was $168,661, compared with $289,769 in the prior-year quarter.

• Net loss was $234,168, or $0.02 per basic and diluted share, versus net income of $243,729, or $0.03 per share.

• Operating cash outflow was $524K versus $763K inflow; investing outflow was $2.6K versus $1.052M, and cash declined $1.006M to $2.015M.

Outlook and guidance

• Management expects shipment costs to remain consistent or increase in the coming quarter as additional peak-season surcharges are assessed.

• Cash, U.S. Treasury investments and available credit are expected to meet working capital and capital expenditure needs for 12 months; reduced operating cash flow could require asset sales, lower capex or credit draws.

• Management cited domestic distributor strength and growing DTC contribution as positive trends for the fiscal year; acquisition-led diversification aims to add recurring revenue, with SG&A expected to rise during the acquisition phase.