Koss Corporation reported net sales of $4.1 million for the first quarter ended September 30, 2025, an increase of $0.9 million, or 27.1%, compared to $3.2 million in the same period of the prior year. Net income for the quarter was $0.2 million, compared to a net loss of $0.4 million in the first quarter of the previous fiscal year. Both basic and diluted net income per share were $0.03, compared to a basic and diluted net loss per share of $0.05 in the prior year. The company attributed the increase in sales to a significant sale to its largest Education market customer and a 22.5% growth in direct-to-consumer business, supported by new product launches and new colorways. Sales to Europe declined due to delayed re-orders by two major distributors, while sales to Asian markets increased, offsetting some of the export shortfall. Gross margins rose from 36.6% to 40.0%, primarily due to a higher volume of direct-to-consumer sales. The company noted an adverse impact on gross margins from products subject to a 145% tariff on China-produced goods, but this was partially offset by higher absorption of fixed manufacturing costs and a reduction in reserves for excess and obsolete inventory. Koss Corporation also announced the promotion of Michael J. Koss, Jr. to Executive Vice President, expanding his responsibilities to include oversight of sourcing and logistics in addition to his roles in marketing, product development, and intellectual property enforcement.