Koss (KOSS) AI Stock Analysis

• Market Cap: $40.95M
• Dividend Yield: N/A
• Average Volume (3M): 45.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.89
• Revenue Growth: 11.58%
• EPS Growth: 81.08%
• Country: US
• Employees: 28
• Sector: Technology
• Sector Strength: 88
• Industry: Consumer Electronics
• EPS (TTM): -0.06
• Shares Outstanding: 9,456,438
• 10 Day Avg. Volume: 60,405
• 30 Day Avg. Volume: 45,735
• PEG Ratio: 8.27
• Price to Book (P/B): 1.56
• Price to Sales (P/S): 3.78
• P/FCF Ratio: -67.67
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 3.20
• Enterprise Value/Gross Profit: 8.79
• Enterprise Value/Ebitda: -20.45
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: $4.50 ▲(4.41% Upside)

Overall score is held back primarily by weak profitability and negative cash flow despite a strong, low-debt balance sheet. Technical signals are neutral-to-soft, and valuation is constrained by losses (negative P/E) with no dividend support.

Positive Factors

Low Leverage Balance Sheet

Very low debt relative to equity gives the company durable solvency and financial flexibility. This reduces interest burden and provides optionality to fund working capital, inventory or strategic initiatives without relying on immediate external financing, supporting resilience over months.

Multi-Channel Revenue Model

A dual wholesale and direct-to-consumer model diversifies distribution risk and preserves margin upside via DTC. Structurally, this enables broader market reach, better customer data capture and incremental margin control, strengthening long-term revenue durability.

Stable Gross Margin

Consistent high-30% gross margins indicate resilient unit economics for core products. If fixed costs are managed or volumes recover, these gross margins provide a clear path to restore operating profitability, making earnings recovery feasible over a multi-month horizon.

Negative Factors

Negative Cash Generation

Sustained negative operating and free cash flows erode liquidity and force reliance on the balance sheet or external capital to fund operations. Over months this constrains reinvestment, increases financing risk, and limits the company's ability to scale marketing or inventory.

Weak Operating Profitability

Material negative EBIT margins show the business currently fails to cover operating costs from core sales. Persistent operating losses weaken return on capital and hinder reinvestment, making durable margin improvement necessary before sustainable EPS recovery is credible.

Recent Revenue Contraction

Trailing revenue decline reduces scale benefits and strains fixed-cost absorption. Over several months, shrinking top-line makes margin recovery harder, limits cash flow stabilization, and raises execution risk around competing for shelf space and retail/distributor priority.

Koss Business Overview & Revenue Model

Company Description

Koss Corporation, together with its subsidiaries, designs, manufactures, and sells stereo headphones and related accessories in the United States, the Czech Republic, Sweden, Canada, the Russian Federation, Japan, Malaysia, and internationally. It offers high-fidelity headphones, wireless Bluetooth headphones, wireless Bluetooth speakers, computer headsets, telecommunications headsets, active noise canceling headphones, and compact disc recordings under the Koss Classics label. The company sells its products through distributors, international distributors, audio specialty stores, the internet, national retailers, grocery stores, electronics retailers, military exchanges, and prisons under the Koss name, as well as private label. It also sells its products to distributors for resale to school systems, as well as directly to other manufacturers. The company also exports its products. Koss Corporation was founded in 1953 and is headquartered in Milwaukee, Wisconsin.

How the Company Makes Money

Koss generates revenue primarily through the sale of its audio products, which are marketed both directly to consumers and through various retail channels. The company's key revenue streams include wholesale distribution to electronics retailers, direct sales through its online platform, and partnerships with other brands and retailers. Additionally, Koss engages in strategic collaborations that enhance its market presence and product offerings. The company's focus on innovation and quality helps to maintain a loyal customer base, driving repeat sales and sustaining revenue growth. Seasonal promotions and marketing campaigns also play a crucial role in boosting sales during peak shopping periods.

Koss Financial Statement Overview

Summary

Mixed financial profile: a conservative, low-leverage balance sheet (debt-to-equity ~0.08) supports solvency, but operating performance is weak (negative EBIT margin ~-13.7%, slightly negative net margin) and TTM revenue declined (-5.2%). Cash generation is a key risk with negative operating cash flow and free cash flow, indicating ongoing cash burn.

Income Statement

TTM (Trailing-Twelve-Months) revenue declined (-5.2%) and profitability remains weak: operating results are negative (EBIT margin about -13.7%) and net margin is slightly negative. While gross margin is relatively steady around the high-30% range, the company has not translated that into positive operating earnings over the last several periods. Results also look volatile historically (including a large one-off profit year in 2023 that did not persist), which lowers confidence in earnings quality and durability.

Balance Sheet

The balance sheet appears conservatively levered, with low debt relative to equity (debt-to-equity ~0.08 in TTM (Trailing-Twelve-Months)), providing financial flexibility. Total equity is sizable versus total debt, which helps limit solvency risk. The key weakness is returns: losses in recent periods translate into slightly negative return on equity in TTM (Trailing-Twelve-Months), indicating the capital base is not currently producing attractive shareholder returns.

Cash Flow

Cash generation is currently pressured: TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are both negative, and free cash flow growth is sharply negative versus the prior period. While free cash flow has at times been stronger historically (notably 2023), the more recent pattern shows ongoing cash burn, which can increase reliance on the balance sheet if it persists.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	12.62M	12.27M	13.10M	17.71M	19.55M
Gross Profit	4.77M	4.19M	4.46M	6.72M	6.73M
EBITDA	-2.50M	-2.62M	-2.51M	1.20M	-87.88K
Net Income	-874.83K	-950.91K	8.32M	1.27M	493.59K
Balance Sheet
Total Assets	37.18M	37.20M	39.09M	29.96M	29.96M
Cash, Cash Equivalents and Short-Term Investments	15.69M	14.94M	20.16M	9.21M	9.21M
Total Debt	2.54M	2.78M	3.02M	3.25M	3.25M
Total Liabilities	6.57M	6.05M	7.28M	7.26M	7.26M
Stockholders Equity	30.61M	31.15M	31.81M	22.70M	22.70M
Cash Flow
Free Cash Flow	-705.63K	-652.29K	10.64M	-1.05M	-251.42K
Operating Cash Flow	-214.91K	-190.53K	10.74M	-942.53K	348.74K
Investing Cash Flow	-120.28K	-198.43K	-17.02M	1.81M	-704.21K
Financing Cash Flow	305.91K	134.97K	171.35K	1.39M	3.31M

Koss Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KOSS, the sentiment is Negative. The current price of 4.31 is below the 20-day moving average (MA) of 4.39, below the 50-day MA of 4.53, and below the 200-day MA of 5.13, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 46.16 is Neutral, neither overbought nor oversold. The STOCH value of 24.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KOSS.

Koss Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AXIL	69 Neutral	$46.33M	42.67	14.37%	―	0.07%	-61.71%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
KOSS	46 Neutral	$40.95M	-46.66	-0.69%	―	11.58%	81.08%
FEBO	44 Neutral	$11.73M	-5.25	―	―	11.95%	-956.47%
WLDS	41 Neutral	$6.20M	-0.12	-268.12%	―	-9.05%	77.41%