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what it is
Koss makes headphones, headsets, and audio accessories.
how it gets paid
Last year Koss made $13M in revenue. Stereo headphones was the main engine at $10.9M, or 84% of sales.
why it's growing
Revenue grew 2.9% last year. Revenue rose 142% from a year earlier, but the quarter still lost money.
what just happened
Quarterly revenue hit $7M, and EPS was still -$0.03.
At a glance
C++ balance sheet — some cracks in the foundation
25/100 earnings predictability — expect surprises
26.4% return on capital — every dollar works hard here
-$0.09 fy2025 eps est
$13M fy2025 rev est
xvary composite: 31/100 — weak
What they do
Koss makes headphones, headsets, and audio accessories.
Koss sells through stores, the internet, and distributors. That keeps the brand in front of buyers without giant overhead. But 84% of FY2025 sales still came from stereo headphones, so your bet is one product family, not a broad machine.
How they make money
$13M
annual revenue · their business grew +2.9% last year
Stereo headphones
$10.9M
+2.9%
Communications headsets
$0.8M
flat
Education headsets
$0.7M
flat
Metal detector and accessory products
$0.6M
flat
The products that matter
flagship on-ear headphones
Porta Pro®
since 1984 · legacy product
it has been sold since 1984, which tells you the brand still has recognition. It also tells you how little of the story is coming from new product momentum.
legacy brand
online and retail sales channel
Direct-to-Consumer Sales
Q1 2026 · +27%
DTC revenue rose 27% in Q1 2026. That's encouraging, but the company still does only $13M in annual sales, so small wins need to stack up fast.
small-base growth
new acquisition initiative
Corporate Development
targets $2–4M EBITDA deals
announced march 16, 2026, this is the real strategic swing. A company with $2.5M in cash is now looking for businesses that could be as profitable as Koss itself.
pivot watch
Key numbers
$13M
FY2025 revenue
On $13M in sales, a one-point miss is real money because the whole business is tiny.
13.8%
operating margin
You lose 13.8 cents on every sales dollar before taxes and interest.
26.4%
return on capital
Each dollar tied up in the business produced 26.4 cents of operating profit.
1.6
beta
A 1.6 beta means the stock has moved about 60% more than the market.
Financial health
C++
strength
- balance sheet grade C++ — below average — limited financial resources
- risk rank 5 — safer than 5% of stocks
- price stability 5 / 100
- long-term debt $2M (6% of capital)
C++ — below average. watch for debt servicing and cash burn.
Total return vs. market
Return history isn't available for KOSS right now.
source: institutional data · return history unavailable
What just happened
missed estimates
Quarterly revenue hit $7M, and EPS was still -$0.03.
Revenue rose 142% from a year earlier, but the quarter still lost money. Gross margin was 35.5%, so the business sold more without turning the profit line positive.
$7.0M
revenue
-$0.03
eps
35.5%
gross margin
the number that mattered
The $7M quarter mattered because it was up 142% from a year earlier, but Koss still lost $0.03 a share.
source: company earnings report, 2025
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What could go wrong
the #1 risk here is failing to find a workable second act beyond legacy headphones.
high
legacy headphone category stays too small
Headphone sales are $12.4M out of $13M total revenue. If this category keeps treading water, the core business remains a niche, not a platform.
puts almost the entire revenue base at risk of stagnation
high
acquisition pivot fails to land
Koss has $2.5M in cash and is targeting $2–4M EBITDA deals. That's ambitious relative to its size, and a bad deal would matter immediately.
could consume cash without changing the earnings story
med
tariffs and freight keep squeezing margins
management already cited tariffs on China-produced goods and freight costs. On a 35.5% gross margin, more pressure leaves less room to cover overhead.
could push gross profit lower even if sales hold up
med
volatility overwhelms fundamentals
price stability is 5 / 100 and risk rank is 5. That means the stock can move like an event vehicle even when the business barely moves at all.
you can be directionally right on the business and still get a chaotic stock
with $13M in annual revenue, $2.5M in cash, and a projected -$0.09 in full-year EPS, Koss does not have much room for a failed pivot or another margin squeeze.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
cash balance vs. the pivot
$2.5M in cash sounds fine until you remember the company is loss-making and exploring acquisitions. This is the balance that decides how much time management has.
date
next earnings report
scheduled for may 07, 2026. You want to see whether the -$0.06 EPS loss was a temporary stumble or the new baseline.
trend
direct-to-consumer momentum
Q1 2026 DTC revenue rose 27%. If that keeps compounding, it can improve channel mix. If it fades, it was just a nice quarter.
risk
first acquisition announcement
the first real deal will tell you whether this strategy is disciplined or just hopeful. In a $37M company, one acquisition can rewrite the whole story.
Analyst rankings
earnings predictability
25 / 100
earnings can be hard to model. in human-speak, expect noisy quarters and limited visibility.
risk rank
5
this stock is riskier than 95% of names in the dataset. You do not own this for stability.
source: institutional data
Institutional activity
institutional ownership data for KOSS is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$4
current price
n/a
target midpoint · n/a from current
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