📊 KOSS Key Takeaways
Is Koss Corp. (KOSS) a Good Investment?
Koss Corp operates an unprofitable business with negative operating and free cash flow (-$897.3K), indicating core operations are unsustainable. While the balance sheet remains strong with no debt and improving loss trends suggest potential, only $1.9M in cash reserves against high burn rates creates material financial distress risk within 2-3 years.
Koss maintains a debt-free, highly liquid balance sheet, but the core business remains subscale with negative operating and net margins and slightly negative free cash flow. Modest revenue growth and incremental loss improvement have not translated into sustainable profitability. Until operating cash flow and margins turn consistently positive, fundamentals skew unfavorable.
Koss Corp. Key Strengths (KOSS)
- Zero debt with clean balance sheet; $29.7M stockholders equity provides financial stability
- Reasonable gross margins (35.5%) demonstrate product market fit and pricing power in consumer audio segment
- Improving loss trajectory; net loss and EPS improving 8.0% and 10.0% YoY respectively shows positive momentum
- Debt-free balance sheet with strong liquidity
- Mid-30s gross margin provides room for operating leverage
- Net loss and EPS improved year over year
KOSS Stock Risks: Koss Corp. Investment Risks
- Persistent operating losses (-18.2% operating margin) with negative operating cash flow (-$580.8K) indicate core business cannot self-sustain
- Severe free cash flow burn (-$897.3K annually) against minimal cash reserves ($1.9M) creates runway of only 2-3 years before potential liquidity crisis
- Marginal profitability improvement remains deeply negative; business has not demonstrated path to breakeven or sustainable profitability
- Persistent operating losses and negative free cash flow
- Small revenue base and scale constraints in a competitive category
- Potential margin pressure from pricing, input costs, and working capital inefficiency
Key Metrics to Watch
- Operating cash flow inflection - must turn positive to validate operational viability
- Operating margin expansion - must progress substantially from -18.2% toward breakeven
- Revenue growth acceleration - currently 2.9% YoY is insufficient to drive profitability at current cost structure
- Cash burn rate and runway - monitor quarterly cash depletion trajectory and months of liquidity remaining
- Operating cash flow
- Operating margin
Koss Corp. (KOSS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 15.36x current ratio provides a solid financial cushion.
KOSS Profit Margin, ROE & Profitability Analysis
KOSS vs Industrial Sector: How Koss Corp. Compares
How Koss Corp. compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Koss Corp. Stock Overvalued? KOSS Valuation Analysis 2026
Based on fundamental analysis, Koss Corp. has mixed fundamental signals relative to the Industrial 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 Corp. Balance Sheet: KOSS Debt, Cash & Liquidity
KOSS Revenue & Earnings Growth: 5-Year Financial Trend
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 Revenue Growth, EPS Growth & YoY Performance
KOSS Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $2.8M | -$316.7K | $-0.03 |
| 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 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Koss Corp. Dividends, Buybacks & Capital Allocation
KOSS SEC Filings: Latest 10-K & 10-Q 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 a Combined AI Grade of C from Claude (D) and ChatGPT (C) with 71% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are KOSS's key strengths?
Claude: Zero debt with clean balance sheet; $29.7M stockholders equity provides financial stability. Reasonable gross margins (35.5%) demonstrate product market fit and pricing power in consumer audio segment. ChatGPT: Debt-free balance sheet with strong liquidity. Mid-30s gross margin provides room for operating leverage.
What are the risks of investing in KOSS?
Claude: Persistent operating losses (-18.2% operating margin) with negative operating cash flow (-$580.8K) indicate core business cannot self-sustain. Severe free cash flow burn (-$897.3K annually) against minimal cash reserves ($1.9M) creates runway of only 2-3 years before potential liquidity crisis. ChatGPT: Persistent operating losses and negative free cash flow. Small revenue base and scale constraints in a competitive category.
What is KOSS's revenue and growth?
Koss Corp. reported revenue of $9.8M.
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 $-0.09.
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 grade reflects both perspectives for balanced insights.
What is KOSS's fundamental grade?
Based on our AI fundamental analysis in May 2026, Koss Corp. has a C grade with 71% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is KOSS stock overvalued or undervalued?
Valuation metrics for KOSS: ROE of -2.9% (sector avg: 15%), net margin of -8.9% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is KOSS's AI grade for 2026?
Our dual AI analysis gives Koss Corp. a combined C grade 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 $-580.8K, with capital expenditures of $316.5K. FCF margin is -9.2%.
How does KOSS compare to other Industrial stocks?
Vs Industrial sector averages: Net margin -8.9% (avg: 10%), ROE -2.9% (avg: 15%), current ratio 15.36 (avg: 1.8).