📊 KOSS Key Takeaways
Is Koss Corp. (KOSS) a Good Investment?
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.
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.
Why Buy Koss Corp. Stock? 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
- 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 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
- 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 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
- Operating cash flow
- Operating margin
Koss Corp. (KOSS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 12.84x 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 |
|---|---|---|---|
| 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 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 Rating of SELL from Claude (SELL) and ChatGPT (SELL) with 71% combined 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. 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 with -15.3% operating margin and -$1.1M operating income. Severe cash flow deterioration with negative free cash flow of -$311K despite positive revenue. 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 $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 71% 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: 10%). 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 Industrial stocks?
Vs Industrial sector averages: Net margin -4.6% (avg: 10%), ROE -1.1% (avg: 15%), current ratio 12.84 (avg: 1.8).