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A heritage audio equipment company, like a smaller, specialized competitor to Sony's headphone division.

A niche audio brand specializing in headphones, akin to a much smaller Sennheiser.

A long-standing audio manufacturer, comparable to a smaller Bose focused primarily on headphones.

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• Headphones: Koss manufactures a diverse range of headphones, including over-ear, on-ear, in-ear, and portable models, designed for various personal audio needs.
• Headsets: The company also produces headsets, which combine headphones with integrated microphones, primarily for communication, gaming, and professional applications.

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Koss (symbol: KOSS) primarily sells its headphones and audio products directly to individual consumers through various retail channels (online and brick-and-mortar) and its own website. While they also note sales to government agencies, their core consumer product business is B2C.

The company serves the following categories of individual customers:

• Everyday Listeners & Casual Users: This broad category encompasses individuals who purchase headphones for general personal use, entertainment, communication, and daily audio consumption. These customers typically acquire products through major online and brick-and-mortar retailers.
• Value-Oriented Buyers: These are customers who seek a strong balance between audio performance and affordability. Koss is recognized for offering good sound quality at competitive price points, making its products attractive to those looking for quality without a premium price tag.
• Audio Enthusiasts & Retro Fans: A distinct segment of consumers, particularly drawn to Koss's iconic and long-standing models (such as the Porta Pro), who appreciate specific sound signatures, unique design aesthetics, and the brand's heritage. This group often includes audiophiles and those with a nostalgic interest in classic audio gear.

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Michael J. Koss, Chairman, President & Chief Executive Officer

Michael J. Koss has held various positions at Koss Corporation since 1976 and has been a director since 1985. He was elected President and Chief Operating Officer in 1987, and became Chief Executive Officer in 1991. He has served as Chairman since 2015. Mr. Koss previously served as an Independent Director for STRATTEC Security Corp. and on the board of Genius Products, Inc. He received his undergraduate degree from Beloit College.

Kim M. Schulte, Chief Financial Officer & Corporate Secretary

Kim M. Schulte was appointed Chief Financial Officer of Koss Corporation in 2021. She also serves as Corporate Secretary.

John C. Koss, Jr., Vice President — Sales

John C. Koss, Jr. is the Vice President of Sales at Koss Corporation, a position he has held since 1988. He is the son of the company's founder, John C. Koss, and was a significant beneficiary of stock sales during the 2021 GameStop short squeeze.

Michael J. Koss, Jr., Vice President — Marketing and Product

Michael J. Koss, Jr. serves as the Vice President of Marketing and Product at Koss Corporation, a role he began in 2016. He is the son of CEO Michael J. Koss and also benefited from stock sales during the GameStop short squeeze in 2021.

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The key risks to Koss Corporation's (KOSS) business operations include intense competition within the audio market, ongoing challenges and costs associated with intellectual property enforcement, and vulnerabilities to global economic factors and supply chain disruptions.

1. Intense Competition and Market Position: Koss operates in a highly competitive global market for audio devices, facing numerous larger and better-resourced competitors such as Shure and Jabra. The company is ranked 30th among 148 active competitors. This crowded landscape makes it challenging for Koss, a smaller entity, to maintain and grow its market share and profitability.
2. Intellectual Property Enforcement and Litigation Risks: While Koss actively pursues patent infringement claims, particularly concerning its wireless headphone technology, this strategy presents significant risks. The company has engaged in costly and complex lawsuits against major industry players like Apple, Bose, and Plantronics. Despite some successes, such as a settlement with Apple, patent litigation is an expensive and time-consuming endeavor. Furthermore, some of Koss's patent claims have been found invalid in court, which can lead to issue preclusion in future cases and undermine the value of their intellectual property portfolio.
3. Global Economic Factors and Supply Chain Disruptions: Koss is susceptible to various macroeconomic pressures and international trade complexities. Recent financial communications highlight a slowdown in consumer sales, attributed partly to inflation, high energy costs, and government spending. The company also faces risks from potential trade restrictions, its inability to fully pass on increased tariffs and freight charges to customers, and adverse fluctuations in currency exchange rates. Geopolitical events, such as the conflict in Ukraine, have directly impacted Koss's sales in affected regions and its international supply chain, influencing overall profitability.

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The rapidly growing consumer demand and technological advancements in immersive and spatial audio experiences (e.g., Apple Spatial Audio, Sony 360 Reality Audio, Dolby Atmos for headphones). As major technology companies and audio brands increasingly integrate these features, traditional stereo headphones, which form the core of Koss's product line, may be perceived as offering a less advanced or engaging listening experience. This shift in consumer expectation and technological capability could marginalize Koss's product offerings if they cannot compete effectively in this emerging audio paradigm.

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Koss Corporation (KOSS) primarily operates within the audio accessories market, with its main products being headphones, earphones, and to a lesser extent, headsets. The addressable markets for these products are substantial and global in scope.

The global market for earphones and headphones was valued at approximately USD 69.04 billion in 2025 and is projected to reach USD 102.74 billion by 2030. Another report estimated the global market size at USD 41.75 billion in 2024, with a projection to reach USD 103.55 billion by 2033. The Asia Pacific region held the largest revenue share for earphones and headphones in 2023, at about 32.6%, while North America accounted for 30.5% of the market share in 2024.

For the broader category of headsets, which can include headphones with microphones often used for communication or gaming, the global market was valued at USD 109.95 billion in 2024. This market is projected to reach a significant USD 1,528.64 billion by 2034, growing at a compound annual growth rate (CAGR) of 30.11% from 2025 to 2034. The Asia Pacific region also led the headset market with a 36% share in 2024 and is anticipated to hold around 42% by 2035. North America is also expected to experience rapid growth in the headset market.

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Here are 3-5 expected drivers of future revenue growth for Koss (KOSS) over the next 2-3 years:

1. Growth in Direct-to-Consumer (DTC) Sales: Koss has seen significant increases in its direct-to-consumer business, which has contributed to overall sales success and improved gross margins. For example, in Q1 FY2026, DTC sales grew by 22.5%, and in fiscal year 2025, they saw an uptick of 16.5%. This channel is expected to continue benefiting from new product launches and online advertising.
2. Launch and Growth of New Products and Colorways: New product introductions, such as the Porta Pro Wireless, KPH30 Wireless, and the KSC75 Stealth Grey, along with new color options for existing products, have been identified as key contributors to sales growth. These new offerings are specifically driving DTC sales.
3. Expansion in International Markets: Increased sales to European customers and strong performance in Asian markets have been noted as drivers of overall sales growth, helping to offset declines in domestic distributor sales. This international growth, particularly through distributors in Europe and Asia, has been boosted by successful new product launches.
4. Sales to the Education Market: A substantial sale to Koss's largest education market customer was a primary factor in the company's Q1 FY2026 sales growth. While potentially subject to budget cycles, this customer segment can represent a significant revenue stream.

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Share Repurchases

• Koss Corporation has an authorized stock repurchase program for an aggregate of $45,500,000 of common stock.
• As of June 30, 2024, $43,360,247 of the authorized amount had been expended.
• No shares were repurchased by the company during the fiscal years ended June 30, 2025, 2024, or 2023.

Share Issuance

• Weighted average basic shares were 9,251,373 for fiscal year 2024 and 9,192,799 for fiscal year 2023.
• Stock option exercises generated $134,975 in cash from 65,000 shares in fiscal year 2024, and $171,350 from 87,000 options in fiscal year 2023.
• Shareholders approved the 2023 Equity Incentive Plan in July 2023, authorizing 2,000,000 shares of common stock for issuance.

Capital Expenditures

• Management notes that if insufficient cash flow is generated from operations, capital expenditures may need to be reduced.
• The company anticipates that existing working capital, operating activities, and investments will cover capital expenditure requirements for the next twelve months.