Koss Corporation filed its Form 10-Q for the quarterly period ended September 30, 2026 with the U.S. Securities and Exchange Commission on October 30, 2026, reporting a net loss and lower net sales compared to the same period a year earlier.

Key Highlights

  • Net loss of $234,168 for the three months ended September 30, 2026, compared to net income of $243,729 in the same period of 2025, according to the filing.
  • Net sales declined to $3,094,078 for the quarter, down from $4,070,778 in the three months ended September 30, 2025.
  • Gross profit was $1,221,835, with cost of goods sold of $1,872,243, resulting in a loss from operations of $400,595.
  • Total assets stood at $36,173,019 as of September 30, 2026, compared to $36,658,764 at June 30, 2026.
  • Available-for-sale investments of $16,707,708 represented the largest single asset on the balance sheet as of September 30, 2026.
  • Cash and cash equivalents decreased to $2,014,772 from $3,020,840 at June 30, 2026, a net decrease of $1,006,068 during the quarter.
  • Shares outstanding were 9,466,438 at October 26, 2026, unchanged from June 30, 2026.

Koss Reports Lower Sales and Swing to Operating Loss in September 2026 Quarter

According to the filing, Koss Corporation (NASDAQ:KOSS) reported net sales of $3,094,078 for the three months ended September 30, 2026, a decrease from $4,070,778 in the comparable prior-year quarter. Cost of goods sold was $1,872,243, yielding gross profit of $1,221,835. Selling, general and administrative expenses of $1,622,430 exceeded gross profit, resulting in a loss from operations of $400,595, compared with an operating loss of $46,040 in the three months ended September 30, 2025.

The company disclosed total other income, net, of $168,661 for the quarter, driven primarily by interest income of $169,070, partially offset by interest expense of $409. After an income tax provision of $2,234, the net loss for the period was $234,168, or $(0.02) per basic and diluted share. In the prior-year quarter, the company reported net income of $243,729, or $0.03 per basic and diluted share, the filing stated.

On the balance sheet, the company reported total stockholders' equity of $29,854,288 as of September 30, 2026, down from $30,159,655 at June 30, 2026. Retained earnings decreased to $16,195,737 from $16,429,905 over the same period. The filing also noted accumulated other comprehensive loss of $208,229 at September 30, 2026, compared to $104,949 at June 30, 2026, reflecting a $103,280 change in unrealized loss on available-for-sale securities during the quarter. Net cash used in operating activities was $524,275, and net cash used in investing activities was $479,232, with the largest investing outflow being $449,311 for purchases of equipment and leasehold improvements.

What Was Disclosed

Koss Corporation disclosed its unaudited condensed consolidated financial statements for the three months ended September 30, 2026, showing a net loss of $234,168, a decline in net sales to $3,094,078, and a reduction in cash and cash equivalents to $2,014,772 during the quarter.