Koss Corporation's first quarter 2027 revenue fell 24% after a significant custom order did not recur

Koss Corporation reported a net loss for the first quarter of fiscal year 2027, with results significantly impacted by the non-recurrence of a major custom product launch for an education customer in the prior year. The company swung to a loss as top-line contraction led to poor manufacturing overhead absorption.

Key Highlights

• Net sales declined 24.0% to $3.1 million, down from $4.1 million in the same period last year.
• Gross margin contracted by 50 basis points to 39.5%, driven by higher freight rates and fixed overhead costs despite a $76,000 tariff refund.
• Direct-to-consumer (DTC) sales reached approximately 37% of total turnover, continuing its trend as a high-margin growth channel.