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Koss Corporation

KOSS
21
Consumer Electronics · Technology
Price
$3.80
-0.06 (-1.55%)
Market Cap
$36.0M
Exchange
NASDAQ Capital Market
Winston Score
21
Winston is worried
Weak fundamentals across most pillars.

Share count falling — buybacks

2.9% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 9.6M (2021) → 9.4M (2025)

Koss Corporation makes headphones and audio equipment for everyday consumers. The company is one of the oldest headphone brands in the United States, having invented the stereo headphone in 1958. Its products range from basic earbuds to higher-end over-ear headphones, sold mainly to individual consumers through retail stores and online channels.

Koss earns money by selling its headphones directly to retailers and consumers, primarily in the United States, though it has some international sales. The company is very small, with a market cap near zero and an operating loss, meaning it currently spends more than it earns. Koss has some brand recognition from its long history, but it faces intense competition from much larger companies like Sony, Bose, and Apple, which have far greater resources for product development and marketing. The main risk is whether Koss can find a way to grow revenue and cut costs before its losses become unsustainable.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+1.6% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

-70.7% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$213,870/ year

Declining (-10% vs prior year)

1.7% of revenue

Below sector average (15%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

41.9%ownership

Insiders own a meaningful stake in the company

Cash Runway

~8 years

$19M cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

$19M cash & investments at current burn rate

Growth context

Koss Corporation is growing revenue at 2% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
35.5%
Modest — 35.5% gross margin
Operating Margin
-25.5%
Losing money on operations — -25.5%
ROCE
-2.4%
Weak — -2.4% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY
-12.2%
Shrinking sales (-12.2% YoY)
EPS YoY
N/A
Data not available
EPS Consistency
0/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
N/A
Data not available
FCF Margin
-16.4%
Burning cash (-16.4%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity
0.01
Conservative — low debt load (0.01)
Interest Cover
N/A
Data not available

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Valuation

P/E Ratio (TTM)
N/M
Negative earnings — P/E not meaningful
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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