Koss Corporation (NASDAQ: KOSS) reported a 27.1% increase in net sales for the first quarter ended September 30, 2025, totaling $4,070,778. Net income was $243,729, an improvement from a net loss of $419,535 in the same period last year. Both basic and diluted net income per share were $0.03.

Chairman and CEO Michael J. Koss highlighted a significant sale to the largest Education market customer and a 22.5% growth in direct-to-consumer (DTC) sales as key factors in the successful first quarter. Sales to Europe declined, but sales to Asian markets were strong. DTC sales benefited from new product launches and colorway additions.

Gross margins improved by 340 basis points in the first quarter of fiscal year 2026, reaching 40.0% compared to 36.6% in the same period last year. This improvement was primarily driven by a higher volume of higher margin DTC sales. The company closely monitors the impact of tariffs on operations and aims to minimize negative effects.

Michael J. Koss, Jr. was promoted to Executive Vice President for his significant contributions to new product development, growth of the DTC segment, and leadership in enforcing patented intellectual property. He will continue overseeing Marketing and Product, in addition to the sourcing and logistics team. Koss Corporation offers a range of high-fidelity headphones, wireless speakers, and more.

Read more at GlobeNewswire: Koss Corporation Reports First Quarter Results