Koss (KOSS) Q4 2026 earnings summary

Executive summary

• Fourth quarter net sales rose 5.8% year-over-year to $3.26 million, with net income of $476,801 versus a net loss in the prior year.

• Full year net sales increased 3.1% to $13.02 million, driven by custom headphones for the Education segment and strong direct-to-consumer (DTC) sales.

• Net loss for the year narrowed to $391,464 from $874,831 in the previous year.

Financial highlights

• Gross margin improved to 41.9% for fiscal 2026 from 37.8% in 2025, aided by $1 million in tariff refunds and favorable sales mix.

• Fourth quarter EPS was $0.05, compared to a loss of $0.02 per share in the prior year.

• Full year EPS was a loss of $0.04, improved from a loss of $0.09 in the previous year.

Outlook and guidance

• The company is pursuing a 'diversification by acquisition' strategy to create predictable, recurring revenue streams over the next five years.