Koss (KOSS) AI Stock Analysis

Koss

(NASDAQ:KOSS)

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Rating:40Underperform

Price Target:$3.00▼(-11.25% Downside)

Action:downgraded

Date:10/30/26

Koss's overall score of 40 reflects a company in significant distress. The most critical factor is the extremely poor financial performance, driven by persistent operating losses and accelerating cash burn that are eroding an otherwise strong, debt-free balance sheet. This is compounded by a bearish technical trend, with the stock in a sustained downtrend across all major moving averages. While stable corporate governance offers a sliver of support, it is insufficient to offset the severe fundamental and market headwinds.

Positive Factors

Conservative leverageVery low leverage gives Koss greater financial flexibility than a heavily indebted competitor and reduces pressure from interest obligations. A large equity base can help the company absorb operating volatility and preserve capacity to support its audio business while it works to restore profitability.

Negative Factors

Revenue contractionThe TTM revenue decline signals weakening demand or reduced commercial traction across Koss’s audio products. Continued contraction would make it harder to spread operating costs, invest in product development, and regain profitability, while also limiting the scale benefits available to the business.

Koss Key Performance Indicators (KPIs)

Revenue by GeographyWhether Koss relies heavily on U.S. sales or is growing abroad indicates exposure to domestic consumer demand, currency swings, tariffs, and retailer relationships. Heavy concentration in one region raises risk if local spending or retail partners falter; expanding international revenue points to new markets, higher upside, and diversification of demand.

Chart Insights

United States revenues dominate and drive performance, showing repeated troughs and a pronounced Q3‑2025 spike that looks like a lumpy, likely one‑time order or channel restocking rather than sustained growth; Export sales are smaller and sporadic—late‑2024 recovery proved short‑lived and collapsed by Q1‑2026. Net: KOSS is highly dependent on volatile U.S. demand with inconsistent international traction, which makes earnings lumpy; treat large quarterly jumps cautiously and watch management commentary and margins for evidence of durable demand.

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The Fly

Koss (KOSS) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $32.09M
Dividend Yield: ―
Average Volume (3M): 33.24K
Price to Earnings (P/E): -36.8
Beta (1Y): 0.98
Revenue Growth: -10.74%
EPS Growth: -304.85%
Country: US
Employees: 29
Sector: Technology
Sector Strength: 61
Industry: Consumer Electronics

Koss Business Overview & Revenue Model

Company Description

Koss Corporation, along with its affiliated companies, specializes in the design, manufacturing, and global distribution of stereo headphones and various related audio accessories. Their products are marketed across numerous countries, including the...

Koss Financial Statement Overview

Summary

Financial performance is critically weak, scoring 37. While the balance sheet is a fortress with minimal debt (Score 72), the income statement (Score 18) and cash flow statement (Score 15) are deeply distressed. The company is burning cash, posting operating losses, and seeing revenues shrink, indicating a business in decline that is eroding its strong capital base.

Income Statement

18Very Negative

Balance Sheet

72Positive

Cash Flow

15Very Negative

Financial statement breakdown
Breakdown	TTM	Jun 2026	Jun 2025	Jun 2024	Jun 2023	Jun 2022
Income Statement
Total Revenue	12.04M	13.02M	12.62M	12.27M	13.10M	17.71M
Gross Profit	5.05M	5.45M	4.77M	4.19M	4.46M	6.72M
EBITDA	-790.48K	-1.21M	-2.50M	-2.62M	-2.51M	1.57M
Net Income	-869.36K	-391.46K	-874.83K	-950.91K	8.32M	1.27M
Balance Sheet
Total Assets	36.17M	36.66M	37.18M	37.20M	39.09M	29.96M
Cash, Cash Equivalents and Short-Term Investments	2.01M	19.82M	15.69M	14.94M	20.16M	9.21M
Total Debt	2.24M	2.31M	2.54M	2.78M	3.02M	3.25M
Total Liabilities	6.32M	6.50M	6.57M	6.05M	7.28M	7.26M
Stockholders Equity	29.85M	30.16M	30.61M	31.15M	31.81M	22.70M
Cash Flow
Free Cash Flow	-1.61M	122.72K	-705.63K	-652.29K	10.64M	-1.05M
Operating Cash Flow	-847.68K	439.21K	-214.91K	-190.53K	10.74M	-942.53K
Investing Cash Flow	335.40K	-237.50K	-120.28K	-198.43K	-17.02M	1.81M
Financing Cash Flow	11.14K	11.33K	305.91K	134.97K	171.35K	1.39M

Koss Technical Analysis

Technical Analysis SentimentNegative

Last Price3.38

Price Trends

50DMA3.62Negative

100DMA3.72Negative

200DMA3.93Negative

Market Momentum

MACD-0.09Positive

RSI35.02Neutral

STOCH8.89Positive

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 3.38 is below the 20-day moving average (MA) of 3.62, below the 50-day MA of 3.62, and below the 200-day MA of 3.93, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 35.02 is Neutral, neither overbought nor oversold. The STOCH value of 8.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KOSS.

Koss Risk Analysis

Koss disclosed 24 risk factors in its most recent earnings report. Koss reported the most risks in the "Macro & Political" category.

Macro & Political - Risks related to catastrophic events or geopolitical conditions that may disrupt the company’s business

Latest Risks Added

3 New Risks

1.Future acquisitions or other strategic transactions could negatively impact our reputation, business, financial position, results of operations and cash flows.Q2, 2026

2.Cybersecurity threats or other disruptions to our information systems, or those of our third-party service providers, could adversely affect our business.Q2, 2026

3.Artificial intelligence may increase cybersecurity, operational and fraud risks.Q2, 2026

Koss Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

KOSS against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AXIL	70Outperform	$37.66M	13.80	22.55%	―	10.34%	105.04%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
FEBO	44Neutral	$7.19M	-3.69	-45.62%	―	-19.75%	32.28%
WLDS	43Neutral	$3.26M	-0.03	-53.43%	―	66.59%	88.55%
KOSS	40Underperform	$32.09M	-36.85	-2.90%	―	-10.74%	-304.85%

* Technology Sector Average

Performance Comparison

KOSS and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
KOSS	Koss Corporation	3.39	-1.39	-29.08%
MSN	Emerson Radio	0.32	-0.18	-36.07%
AXIL	Axil Brands, Inc.	5.52	-0.22	-3.83%
WLDS	Wearable Devices Ltd.	1.32	-19.02	-93.49%
FEBO	Fenbo Holdings Limited	0.65	-0.10	-13.33%

Koss Corporate Events

Business Operations and StrategyExecutive/Board ChangesShareholder Meetings

Koss Shareholders Reinforce Board and Governance Stability

Positive

Oct 16, 2026

On October 14, 2026, Koss Corporation held its annual meeting of stockholders, at which shareholders re-elected Thomas L. Doerr, Michael J. Koss, William J. Sweasy, Lenore E. Lillie and Michael J. Koss, Jr. to the board of directors. The meeting also...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 30, 2026

Koss AI Stock Analysis