📊 KOSS Key Takeaways
Is KOSS a Good Investment? Thesis Analysis
Koss faces fundamental operational challenges with persistent unprofitability (-$1.1M operating loss), negative free cash flow (-$311K), and stagnant revenue growth of 2.9% YoY. While the fortress balance sheet with zero debt and $30.3M equity provides runway, the company must demonstrate immediate operational improvements and cash flow stabilization to arrest ongoing value erosion.
Why Buy KOSS? Key Strengths
- No debt with pristine balance sheet and $30.3M stockholders' equity
- Exceptional liquidity position with 12.84x current ratio providing operational flexibility
- Healthy 35.5% gross margin demonstrates product profitability at unit economics level
KOSS Investment Risks to Consider
- Persistent operating losses with -15.3% operating margin and -$1.1M operating income
- Severe cash flow deterioration with negative free cash flow of -$311K despite positive revenue
- Stagnant revenue growth of only 2.9% YoY in competitive audio equipment market with minimal demand expansion
Key Metrics to Watch
- Operating margin trend and timeline to return to profitability
- Operating cash flow conversion and free cash flow stabilization
- Revenue growth acceleration relative to industry comparables and market demand
KOSS Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 12.84x current ratio provides a solid financial cushion.
KOSS Profitability Ratios
KOSS vs Default Sector
How KOSS CORP compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is KOSS Overvalued or Undervalued?
Based on fundamental analysis, KOSS CORP has mixed fundamental signals relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
KOSS Balance Sheet & Liquidity
KOSS 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: KOSS CORP's revenue has declined by 35% over the 5-year period, indicating business contraction. The most recent EPS of $-0.10 indicates the company is currently unprofitable.
KOSS Growth Metrics (YoY)
KOSS Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $2.9M | $94.1K | $0.01 |
| Q1 2026 | $3.2M | $243.7K | $0.03 |
| Q3 2025 | $2.6M | -$313.8K | $-0.03 |
| Q2 2025 | $3.4M | $94.1K | $0.01 |
| Q1 2025 | $3.2M | -$257.6K | $-0.03 |
| Q3 2024 | $2.6M | -$224.5K | $-0.02 |
| Q2 2024 | $3.3M | -$269.2K | $-0.03 |
| Q1 2024 | $3.4M | -$257.6K | $-0.03 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
KOSS Capital Allocation
KOSS SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for KOSS CORP (CIK: 0000056701)
📋 Recent SEC Filings
❓ Frequently Asked Questions about KOSS
What is the AI rating for KOSS?
KOSS CORP (KOSS) has an AI rating of SELL with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are KOSS's key strengths?
Claude: No debt with pristine balance sheet and $30.3M stockholders' equity. Exceptional liquidity position with 12.84x current ratio providing operational flexibility.
What are the risks of investing in KOSS?
Claude: Persistent operating losses with -15.3% operating margin and -$1.1M operating income. Severe cash flow deterioration with negative free cash flow of -$311K despite positive revenue.
What is KOSS's revenue and growth?
KOSS CORP reported revenue of $6.9M.
Does KOSS pay dividends?
KOSS CORP does not currently pay dividends.
Where can I find KOSS SEC filings?
Official SEC filings for KOSS CORP (CIK: 0000056701) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is KOSS's EPS?
KOSS CORP has a diluted EPS of $-0.03.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is KOSS a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, KOSS CORP has a SELL rating with 78% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is KOSS stock overvalued or undervalued?
Valuation metrics for KOSS: ROE of -1.1% (sector avg: 15%), net margin of -4.6% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy KOSS stock in 2026?
Our dual AI analysis gives KOSS CORP a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is KOSS's free cash flow?
KOSS CORP's operating cash flow is $1.8K, with capital expenditures of $312.8K. FCF margin is -4.5%.
How does KOSS compare to other Default stocks?
Vs Default sector averages: Net margin -4.6% (avg: 12%), ROE -1.1% (avg: 15%), current ratio 12.84 (avg: 1.8).