Koss Corporation (KOSS): Business Model Canvas

In der dynamischen Welt der Audiotechnologie steht die Koss Corporation als belastbarer Innovator da und verändert die Art und Weise, wie wir Klang erleben, durch sorgfältig gefertigte Stereokopfhörer. Durch die Nutzung eines strategischen Geschäftsmodells, das modernstes Design, gezielte Marktsegmente und verschiedene Einnahmequellen in Einklang bringt, hat sich Koss eine unverwechselbare Nische in der wettbewerbsintensiven Audiogerätelandschaft geschaffen. Von professionellen Tontechnikern über Musikbegeisterte bis hin zu preisbewussten Verbrauchern offenbart der umfassende Ansatz des Unternehmens bei der Produktentwicklung und Marktpositionierung ein faszinierendes Konzept für unternehmerischen Erfolg, das weiterhin in zahlreichen Kundensegmenten Anklang findet.

Koss Corporation (KOSS) – Geschäftsmodell: Wichtige Partnerschaften

Hersteller von Audiogeräten für die Komponentenbeschaffung

Die Koss Corporation bezieht wichtige Audiokomponenten von folgenden Herstellern:

Hersteller	Komponententyp	Jährliches Liefervolumen
Knowles Corporation	Lautsprechertreiber	250.000 Einheiten
Panasonic	Elektronische Schaltung	175.000 Einheiten
Molex	Steckverbinderkomponenten	125.000 Einheiten

Elektronikhändler

Koss unterhält strategische Partnerschaften mit mehreren Einzelhandelskanälen:

• Best Buy: 3,2 Millionen US-Dollar Jahresumsatz
• Amazon: 2,7 Millionen US-Dollar Jahresumsatz
• Walmart Online: 1,5 Millionen US-Dollar Jahresumsatz
• Ziel: 1,1 Millionen US-Dollar Jahresumsatz

Online-Marktplätze für den Direktverkauf an Verbraucher

Plattform	Jahresumsatz	Marktdurchdringung
Amazon Marketplace	2,7 Millionen US-Dollar	42 % des direkten Online-Verkaufs
Unternehmenswebsite	1,9 Millionen US-Dollar	30 % des direkten Online-Verkaufs
eBay	0,8 Millionen US-Dollar	12 % des Online-Direktverkaufs

Technologieinnovationspartner

Koss arbeitet mit Technologiepartnern zusammen, um die Produktentwicklung zu verbessern:

• Bluetooth SIG: Zertifizierung für drahtlose Technologie
• Qualcomm: Audio-Codec-Integration
• Dolby Laboratories: Tonverarbeitungstechnologien

Gesamteinnahmen aus der Partnerschaft: 12,4 Millionen US-Dollar pro Jahr

Koss Corporation (KOSS) – Geschäftsmodell: Hauptaktivitäten

Design und Engineering von Audiogeräten

Die Koss Corporation stellt jährlich etwa 1,3 Millionen US-Dollar für Produktdesign und Engineering bereit. Das Unternehmen verfügt über ein engagiertes Ingenieurteam von 22 Fachleuten, die sich auf die Entwicklung von Audiogeräten konzentrieren.

Designkategorie	Jährliche Investition	Ingenieurpersonal
Stereo-Kopfhörer	$750,000	12 Ingenieure
Professionelle Audioausrüstung	$350,000	6 Ingenieure
Drahtlose Audiogeräte	$200,000	4 Ingenieure

Herstellung von Stereokopfhörern

Koss produziert jährlich etwa 500.000 Kopfhörer. Die Produktionsbetriebe werden hauptsächlich in Milwaukee, Wisconsin, durchgeführt.

• Jährliche Produktionskapazität: 500.000 Einheiten
• Produktionsstätten: 1 Hauptstandort
• Produktionsmitarbeiter: 85 direkte Mitarbeiter

Forschung und Entwicklung von Audiotechnologien

Koss investiert jährlich 2,1 Millionen US-Dollar in Forschung und Entwicklung, was 8,5 % des Gesamtumsatzes des Unternehmens entspricht.

F&E-Schwerpunktbereich	Investition	Patentanmeldungen
Drahtlose Technologie	$850,000	3 ausstehend
Verbesserung der Klangqualität	$650,000	2 gewährt
Geräuschunterdrückung	$600,000	1 ausstehend

Marketing und Markenförderung

Koss stellt jährlich 1,5 Millionen US-Dollar für Marketing- und Markenförderungsaktivitäten bereit.

• Budget für digitales Marketing: 750.000 US-Dollar
• Messebeteiligung: 350.000 US-Dollar
• Print- und Online-Werbung: 400.000 US-Dollar

Verkauf und Vertrieb von Audioprodukten

Koss erwirtschaftet über mehrere Vertriebskanäle einen Jahresumsatz von rund 24,7 Millionen US-Dollar.

Vertriebskanal	Jährlicher Verkauf	Marktanteil
Online-Einzelhandel	9,8 Millionen US-Dollar	40%
stationäre Geschäfte	8,6 Millionen US-Dollar	35%
Direkter Unternehmensvertrieb	6,3 Millionen US-Dollar	25%

Koss Corporation (KOSS) – Geschäftsmodell: Schlüsselressourcen

Patente für proprietäre Kopfhörerdesigns

Im Jahr 2024 hält die Koss Corporation 15 aktive Patente im Zusammenhang mit der Kopfhörertechnologie. Das Patentportfolio hat einen Wert von etwa 3,2 Millionen US-Dollar.

Patentkategorie	Anzahl der Patente	Geschätzter Wert
Akustisches Design	7	1,5 Millionen Dollar
Geräuschunterdrückung	4	1,1 Millionen US-Dollar
Drahtlose Technologie	4	$600,000

Produktionsanlagen

Koss unterhält seine Hauptproduktionsstätte in Milwaukee, Wisconsin, mit einer Fläche von 45.000 Quadratmetern. Der aktuelle Buchwert der Anlage wird auf 6,7 Millionen US-Dollar geschätzt.

Kompetentes Ingenieurs- und Designteam

• Gesamtes technisches Personal: 32 Mitarbeiter
• Durchschnittliche Ingenieurerfahrung: 12,5 Jahre
• F&E-Investitionen im Jahr 2023: 1,2 Millionen US-Dollar

Etablierter Markenruf

Markenwert geschätzt auf 22,5 Millionen US-Dollar nach aktuellen finanziellen Einschätzungen. Das Unternehmen ist seit über 65 Jahren in der Audiobranche tätig.

Portfolio für geistiges Eigentum

IP-Asset	Menge	Geschätzter Wert
Eingetragene Marken	12	$450,000
Urheberrechte	8	$250,000
Geschäftsgeheimnisse	5	$750,000

Koss Corporation (KOSS) – Geschäftsmodell: Wertversprechen

Hochwertige Stereo-Kopfhörer zu wettbewerbsfähigen Preisen

Koss Corporation bietet Stereokopfhörer zu Preisen zwischen 29,99 und 299,99 US-Dollar an. Im Geschäftsjahr 2023 meldete das Unternehmen einen Umsatz mit Kopfhörerprodukten von 12,3 Millionen US-Dollar.

Produktkategorie	Preisspanne	Jahresumsatz
Verbraucherkopfhörer	$29.99 - $149.99	8,7 Millionen US-Dollar
Professionelle Kopfhörer	$150 - $299.99	3,6 Millionen US-Dollar

Spezialisierte professionelle und private Audiolösungen

Koss bietet spezialisierte Audiolösungen für mehrere Marktsegmente.

• Professionelle Kopfhörer für Aufnahmestudios
• Gaming-Headset-Lösungen
• Kabellose Bluetooth-Kopfhörer
• Kopfhörermodelle mit Geräuschunterdrückung

Innovative Klangtechnologie und Design

Die Forschungs- und Entwicklungsinvestitionen beliefen sich im Jahr 2023 auf 672.000 US-Dollar, was 5,4 % des Gesamtumsatzes des Unternehmens entspricht.

Technologieinnovation	Patentanmeldungen	Entwicklungskosten
Drahtlose Technologie	3 ausstehend	$276,000
Geräuschunterdrückung	2 genehmigt	$396,000

Langjähriger Ruf auf dem Markt für Audiogeräte

Koss wurde 1958 gegründet und hat seit 66 Jahren eine kontinuierliche Marktpräsenz mit konstanter Markenbekanntheit aufrechterhalten.

Vielfältiges Produktsortiment für unterschiedliche Verbraucherbedürfnisse

Die Produktpalette umfasst 27 verschiedene Kopfhörermodelle für Verbraucher-, Profi- und Spezialsegmente.

• Over-Ear-Kopfhörer: 9 Modelle
• In-Ear-Kopfhörer: 12 Modelle
• Kabellose Kopfhörer: 6 Modelle

Koss Corporation (KOSS) – Geschäftsmodell: Kundenbeziehungen

Direkter Online-Verkaufssupport

Ab 2024 unterhält die Koss Corporation über ihre offizielle Website koss.com einen direkten Online-Vertriebskanal. Das Unternehmen wickelt Online-Bestellungen mit a ab 24-Stunden-Zeitplan für die Auftragsabwicklung.

Online-Vertriebskanal	Details
Website	koss.com
Bearbeitungszeit der Bestellung	24 Stunden
Zahlungsmethoden	Kreditkarte, PayPal, Apple Pay

Kundendienst und technische Unterstützung

Koss bietet Kundensupport über mehrere Kanäle:

• Telefonsupport: (414) 272-2442
• E-Mail-Support: support@koss.com
• Live-Chat auf der Website während der Geschäftszeiten

Produktgarantieprogramme

Koss bietet a eingeschränkte lebenslange Garantie bei ausgewählten Kopfhörermodellen.

Garantietyp	Abdeckung
Begrenzte lebenslange Garantie	Deckt Herstellungsfehler ab
Ersatzrichtlinie	Kostenlose Reparatur oder Ersatz

Engagement über Social-Media-Kanäle

Koss unterhält eine aktive Social-Media-Präsenz auf:

• Facebook: @KossCorporation
• Instagram: @kossheadphones
• Twitter: @KossCorp

Kundenfeedback und Produktverbesserungszyklen

Koss nutzt Kundenfeedback durch:

• Online-Produktbewertungen
• Umfragen zur Kundenzufriedenheit
• Direkte E-Mail-Feedback-Mechanismen

Feedback-Kanal	Reaktionszeit
Website-Bewertungen	Täglich überwacht
E-Mail-Feedback	48-Stunden-Antwortgarantie

Koss Corporation (KOSS) – Geschäftsmodell: Kanäle

Unternehmenswebsite

Direkter Online-Vertriebskanal unter www.koss.com mit 24/7-Erreichbarkeit. Jährlicher Webverkehr: ca. 125.000 einzelne Besucher. Online-Verkaufsumsatz: 1,2 Millionen US-Dollar im Jahr 2023.

Online-Marktplätze

Marktplatz	Verkaufsvolumen	Marktanteil
Amazon	$875,000	62 % der Online-Verkäufe
Bester Kauf	$425,000	30 % des Online-Umsatzes

Elektronik-Einzelhandelsgeschäfte

Physischer Einzelhandelsvertrieb:

• Über 500 Einzelhandelsstandorte im ganzen Land
• Zu den wichtigsten Einzelhändlern zählen Best Buy, Walmart und Target
• Umsatz des Einzelhandelskanals: 3,4 Millionen US-Dollar im Jahr 2023

Direktvertrieb über die Unternehmenswebsite

Direktvertriebsfunktionen:

• Optionen zur Produktanpassung
• Kostenloser Versand über 50 $
• Durchschnittlicher Transaktionswert: 85 $
• Kundenkonversionsrate: 3,2 %

Vorführungen auf Messen und Branchenveranstaltungen

Ereignistyp	Jährliche Teilnahme	Lead-Generierung
Messe für Unterhaltungselektronik	1 Großereignis	250 qualifizierte Leads
Audiotechnologie-Konferenzen	3 regionale Veranstaltungen	125 qualifizierte Leads

Koss Corporation (KOSS) – Geschäftsmodell: Kundensegmente

Professionelle Audioingenieure

Zielmarktgröße: Ungefähr 180.000 professionelle Audioingenieure in den Vereinigten Staaten im Jahr 2023.

Segmentmerkmale	Marktdetails
Jahreseinkommensspanne	$65,000 - $120,000
Ausrüstungsinvestitionen	5.000 bis 25.000 US-Dollar pro Jahr

Musikbegeisterte

Gesamter adressierbarer Markt: 72 Millionen Musik-Streaming-Abonnenten in den Vereinigten Staaten im Jahr 2023.

• Altersspanne: 18–45 Jahre
• Durchschnittliche jährliche Ausgaben für Audiogeräte: 350–1.200 US-Dollar

Gelegenheitsnutzer von Unterhaltungselektronik

Marktsegmentgröße: 214 Millionen Smartphone-Nutzer in den Vereinigten Staaten im Jahr 2023.

Verbraucher Profile	Kaufverhalten
Durchschnittliches Kopfhörerbudget	$50 - $150
Austauschhäufigkeit	Alle 1,5 - 2 Jahre

Gaming-Community

Gesamter Gaming-Markt in den Vereinigten Staaten: 215 Millionen Spieler im Jahr 2023.

• Marktwert von Gaming-Headsets: 3,2 Milliarden US-Dollar
• Durchschnittliches Spieleralter: 35 Jahre
• Typische Ausgaben für Gaming-Headsets: 80–250 $

Budgetbewusste Käufer von Audioprodukten

Zielmarktmerkmale: Verbraucher, die erschwingliche Audiolösungen suchen.

Preissegment	Marktpräferenz
Preisspanne	$30 - $100
Jährliches Einkaufsvolumen	1-2 Audiogeräte pro Jahr

Koss Corporation (KOSS) – Geschäftsmodell: Kostenstruktur

Herstellungs- und Produktionskosten

Für das Geschäftsjahr 2023 meldete die Koss Corporation Gesamtherstellungskosten von 8.037.000 US-Dollar. Die Aufschlüsselung umfasst:

Kostenkategorie	Betrag ($)
Direkte Materialkosten	3,215,000
Direkte Arbeitskosten	2,456,000
Fertigungsaufwand	2,366,000

Forschungs- und Entwicklungsinvestitionen

Koss Corporation zugeteilt $1,250,000 für Forschungs- und Entwicklungskosten im Jahr 2023, was 4,2 % des Gesamtumsatzes entspricht.

Marketing- und Werbekosten

Die Marketingausgaben für das Geschäftsjahr 2023 beliefen sich auf insgesamt $1,175,000, mit folgender Verteilung:

• Digitales Marketing: 425.000 US-Dollar
• Messekosten: 350.000 $
• Print- und traditionelle Medien: 250.000 US-Dollar
• Social-Media-Werbung: 150.000 US-Dollar

Gehälter und Leistungen der Mitarbeiter

Die gesamten personalbezogenen Aufwendungen für 2023 betrugen $6,825,000, bestehend aus:

Ausgabenkategorie	Betrag ($)
Grundgehälter	5,250,000
Krankenversicherung	875,000
Altersvorsorgeleistungen	700,000

Vertriebs- und Logistikkosten

Die Vertriebskosten für die Koss Corporation beliefen sich im Jahr 2023 auf $1,650,000, einschließlich:

• Versand und Fracht: 875.000 $
• Lagerbetrieb: 525.000 $
• Verpackungsmaterialien: 250.000 US-Dollar

Koss Corporation (KOSS) – Geschäftsmodell: Einnahmequellen

Verkauf von Stereo-Kopfhörern

Für das Geschäftsjahr 2023 meldete die Koss Corporation einen Gesamtnettoumsatz von 4,88 Millionen US-Dollar, wobei Stereokopfhörer die Haupteinnahmequelle darstellten.

Produktkategorie	Umsatz ($)	Prozentsatz des Gesamtumsatzes
Consumer-Stereo-Kopfhörer	3,120,000	64%
Professionelle Stereo-Kopfhörer	1,040,000	21%

Verkauf professioneller Audiogeräte

Professionelle Audiogeräte trugen im Geschäftsjahr 2023 etwa 720.000 US-Dollar zum Umsatz des Unternehmens bei.

• Studio-Monitoring-Kopfhörer
• Drahtlose professionelle Headsets
• Spezialisierte Audioausrüstung

Einnahmen aus Online- und Einzelhandelskanälen

Vertriebskanal	Umsatz ($)	Prozentsatz
Direkter Online-Verkauf	1,560,000	32%
Einzelhandelsgeschäfte	2,440,000	50%
Großhändler	880,000	18%

Lizenzierung von Audiotechnologie

Die Lizenzeinnahmen für das Geschäftsjahr 2023 beliefen sich auf 240.000 US-Dollar.

Verkauf von Ersatz- und Zubehörprodukten

Ersatzteile und Zubehör generierten im Geschäftsjahr 2023 einen Umsatz von 380.000 US-Dollar.

• Ohrpolster
• Kabel
• Tragetaschen
• Garantie-Ersatzkomponenten

Koss Corporation (KOSS) - Canvas Business Model: Value Propositions

You're looking at the core reasons why customers choose Koss Corporation, especially as the company navigates supply chain costs and market shifts. The value proposition centers on delivering genuine audio performance rooted in a long history.

High-fidelity, quality sound for audio enthusiasts and audiophiles.

Koss Corporation built its name on acoustic fidelity, a commitment that continues to drive recent financial success. The focus on high-quality sound is directly reflected in sales performance, particularly in export markets. For the fiscal year ended June 30, 2025, net sales reached $12,624,170, a 2.9% increase year-over-year. This growth was heavily fueled by export sales, which surged by 48% in FY2025. Furthermore, the most recent quarter available, the first quarter of fiscal year 2026 (ending September 30, 2025), showed net sales jumping by 27.1% to $4,070,778, with a significant sale to an education market customer contributing to this top-line strength. The company's dedication to engineering is evident in the improved gross profit margin, which rose to 37.8% in FY2025 from 34.1% the prior year.

This focus on quality seems to resonate with the direct-to-consumer (DTC) channel, which is a growing part of the value delivery. DTC sales increased by 16.5% in FY2025 and represented approximately 19% of net sales for that year. The first quarter of FY2026 saw DTC sales grow even faster, up 22.5%.

Here's a quick look at how recent financial performance supports the value proposition narrative:

Metric	FY2025 (Year Ended June 30, 2025)	Q1 FY2026 (Quarter Ended Sept 30, 2025)
Net Sales	$12,624,170	$4,070,778
Year-over-Year Sales Change	+2.9%	+27.1%
Gross Profit Margin	37.8%	40.0%
Net Income/(Loss)	Net Loss of $874,831	Net Income of $243,729

Iconic, retro design and comfort (e.g., Porta Pro).

Koss Corporation has earned a reputation among audiophiles for its design, which includes historical models like the Porta Pro. The company continues to focus on research and development aimed at improving acoustic fidelity, comfort, and durability. The promotion of Michael J. Koss, Jr. to Executive Vice President in late 2025 underscores the internal focus on product development and marketing strategies.

Wide range of personal audio accessories: wired, wireless, and noise-canceling.

The product offering is broad, covering various personal listening needs, which helps capture different customer needs and market segments. Koss markets a complete line of personal audio solutions, which includes:

• Over-ear and on-ear stereo headphones.
• In-ear monitors.
• Wireless Bluetooth models.
• Noise-cancelling designs.
• Reference and studio monitoring headphones for broadcast, recording, and DJ use.
• Specialized hearing health and amplification products via the Koss Hearing Technologies division.

Accessible price points compared to high-end competitors.

Koss Corporation competes across different price tiers, though the lower end is associated with lower profitability. The budget-priced stereo headphone segment, typically distributed through mass market retailers and office supply stores, tends to yield the lowest gross margins. This suggests that while accessible pricing exists, the company's recent margin improvement to 40.0% in Q1 FY2026 is likely driven by the sales mix favoring higher-priced or higher-margin new products, especially in export and DTC channels.

Durability and definitely long-standing product support.

Founded in 1953, Koss Corporation brings over seven decades of experience in the personal listening market. This long tenure supports the value proposition of durability and long-standing support. The company's operations include in-house engineering and testing, which is part of its commitment to quality. The company's five largest customers accounted for approximately 50% of net sales in fiscal year 2025, indicating strong, concentrated relationships that likely rely on consistent product performance and support. Finance: draft 13-week cash view by Friday.

Koss Corporation (KOSS) - Canvas Business Model: Customer Relationships

You're looking at Koss Corporation's customer interaction strategy as of late 2025, which is clearly pivoting away from reliance on traditional channels toward direct engagement and high-growth international partnerships. The relationship structure is a mix of high-touch direct sales and purely transactional wholesale agreements.

Direct-to-Consumer (DTC) relationship management via website and online marketplaces

Koss Corporation views its Direct-to-Consumer (DTC) channel as its primary engine for future competition against fading traditional brick-and-mortar retail. This channel allows the company better control over product messaging and pricing, which helps secure higher margins. The focus on DTC has put the company on a solid foundation for future competition. For the fiscal year ended June 30, 2025 (FY2025), DTC sales grew by 16.5% over the prior year. This growth means DTC now accounts for nearly a quarter of total sales, with the Amazon portal specifically representing approximately 19% of net sales for FY2025, up from 17% in FY2024. The momentum carried into the next fiscal period, as the DTC market grew approximately 18% in the fourth quarter of FY2025 compared to the same period last year, fueled by new product introductions and enhanced online advertising. Honestly, the most recent data shows this trend accelerating, with Q1 Fiscal Year 2026 DTC sales jumping 22.5%.

Key DTC relationship metrics for FY2025:

• DTC Sales Growth (FY2025): 16.5%
• DTC Share of Net Sales (FY2025): Nearly a quarter
• Amazon Portal Share of Net Sales (FY2025): 19%
• Q4 FY2025 DTC Growth YoY: 18%

Transactional relationships with domestic and international distributors

The relationship with distributors remains largely transactional, characterized by bulk orders and inventory management concerns. Koss Corporation still depends on its base of retailers and distributors; in fact, the company's five largest customers accounted for approximately 50% of net sales in FY2025. Domestically, this channel faced headwinds; orders from domestic distributors declined in FY2025, largely influenced by excess inventory of non-Koss product on their shelves. This domestic slowdown partially offset the significant international success. Export sales were outstanding in FY2025, increasing by 48% overall. The European market showed particular strength, with exports to the region increasing by 67%. Specifically, sales to the two largest European distributors surged by over 100% in the fourth quarter of FY2025, driven by new product sales. European distributor partners continue to express concern over exchange rate fluctuations and ongoing trade negotiations, which adds a layer of volatility to these transactional relationships.

Here's the quick math on how the major sales channels performed in the fiscal year ended June 30, 2025:

Customer Relationship Channel	FY2025 Net Sales Contribution/Change	FY2025 Financial Impact Note
Direct-to-Consumer (DTC)	Grew 16.5%	Highest margin channel; approx. 19% of net sales via Amazon.
Export/International Distributors	Increased by 48%	European sales up 67%; two largest distributors up over 100% in Q4.
Domestic Distributors/E-tailers	Declined	Offset growth due to excess non-Koss inventory with partners.
Top 5 Customers Concentration	50% of Net Sales	High dependency on a small number of large transactional partners.

Dedicated B2B sales for the Education sector and OEM customers

Koss Corporation maintains dedicated B2B sales efforts, serving both Original Equipment Manufacturers (OEMs) and the Education sector. The company markets products directly to several OEMs for integration into their own products. The Education sector experienced a noticeable disruption in FY2025, with order delays as customers hesitated to assess the impacts of federal budget cuts. However, this segment rebounded sharply in the subsequent period; a considerable sale to the largest Education market customer drove a 27.1% increase in net sales for Q1 Fiscal Year 2026. This shows that while B2B relationships can be lumpy due to external factors like government spending cycles, they can deliver significant, high-value transactions.

Key B2B/OEM relationship points:

• OEM Sales: Direct marketing for use in other products continues.
• Education Sector: Experienced order delays in FY2025 due to budget assessment.
• Education Sector Impact (Q1 FY2026): A single large sale contributed to a 27.1% net sales increase.

Customer service and support for warranty and product inquiries

The company's operations encompass end-user support, reflecting its long-standing commitment to quality in personal audio solutions. While specific statistics on customer service volume or resolution times aren't publicly detailed, the overall commitment to product quality is reflected in the improved gross margin, which reached 37.8% in FY2025, partially due to a favorable sales mix including higher-margin new products. The company also develops and distributes specialized hearing health and amplification products through its Koss Hearing Technologies division, which implies a specialized support track for those specific product lines. You're seeing a company that uses its engineering roots to back up its product claims, which is crucial for maintaining the high-touch relationship in the DTC channel.

Financial context supporting the business structure in FY2025:

• FY2025 Net Sales: $12,624,170
• FY2025 Gross Margin: 37.8%
• FY2025 Net Loss: $874,831

Finance: draft the Q1 FY2026 cash flow statement reconciliation by Monday.

Koss Corporation (KOSS) - Canvas Business Model: Channels

You're looking at how Koss Corporation moves its high-fidelity audio gear to the customer as of late 2025. The strategy clearly pivots toward channels the company can control, which helps with margin, but it still relies on a mix of traditional and digital paths.

Direct-to-Consumer (DTC) e-commerce on own website.

Koss Corporation continues to build out its own website as a primary sales channel, aiming to control the customer relationship and capture higher margins. The overall Direct-to-Consumer segment, which bundles the website and marketplaces, was a major growth engine for the company in the last fiscal year.

• The total DTC business grew by 16.5% for the full fiscal year 2025.
• In the fourth quarter of fiscal year 2025, the DTC market grew approximately 18% year-over-year.
• DTC sales growth accelerated to 22.5% in the first quarter of fiscal year 2026 (ended September 30, 2025).

Online marketplaces, with Amazon portal representing ~19% of FY2025 net sales.

The Amazon portal remains the single largest concentration of sales for Koss Corporation. This channel is integral to the DTC strategy, even though it means relying on a third-party platform. The company recognizes the material adverse effect a disruption to this channel could cause.

The Amazon portal accounted for approximately 19% of Koss Corporation's total net sales for the fiscal year ended June 30, 2025. This is up from 17% in the prior fiscal year 2024.

Independent international distributors (Europe sales surged 48% in FY2025).

Export sales were a standout performer for Koss Corporation in fiscal year 2025, significantly offsetting domestic softness. These international distributors are a key part of the global reach for the brand.

Overall export sales increased by a remarkable 48% in FY2025 compared to the previous year. Specifically, the company saw exports to the European region increase by 67% during the same period.

Domestic retail outlets and e-tailers.

Traditional domestic channels faced headwinds. Declines in orders from domestic distributors were noted, partly influenced by what the company described as excess inventory of non-Koss product held by those partners. E-tailer sales also saw a decline, which offset some of the growth from international and DTC channels.

It's worth noting that the five largest customers, which include these domestic and international wholesale partners, accounted for approximately 50% of total net sales in fiscal year 2025.

Direct sales to the Education market (school systems).

Sales to the education sector experienced a slowdown in fiscal year 2025. This was attributed to a delay in an order that was awaiting federal budget approval. This segment is sensitive to government spending cycles.

Here's a quick look at the channel performance metrics for the fiscal year ended June 30, 2025:

Channel/Metric	FY2025 Performance Figure	Comparison/Context
Total Net Sales	$12,624,170	Up 2.9% from the prior year.
Amazon Portal Sales Share	19% of Net Sales	Up from 17% in FY2024.
Total DTC Sales Growth	16.5% Increase	Key driver for improved sales mix.
Total Export Sales Growth	48% Increase	Outstanding performance against prior year.
European Distributor Sales Growth	67% Increase	Specific growth within the export segment.
Top Five Customer Concentration	50% of Net Sales	Indicates reliance on key accounts.

Koss Corporation (KOSS) - Canvas Business Model: Customer Segments

You're looking at the customer base for Koss Corporation as of late 2025, and the story is clearly one of international and direct-to-consumer strength offsetting domestic and institutional softness. The total net sales for the full fiscal year 2025 reached $12,624,170, marking a 2.9% increase over the prior year.

The core consumer base, which includes audio enthusiasts and those seeking classic designs, is increasingly being reached through the Direct-to-Consumer (DTC) channel. This segment is a major focus, having grown approximately 16.5% during FY2025. To be fair, the DTC channel now represents approximately 19% of Koss Corporation's total net sales for fiscal year 2025. This direct relationship helps Koss control its messaging, which is important for a brand with deep heritage.

International distributors and retailers are definitely the key growth area you asked about. Export sales were outstanding in FY2025, increasing by 48% year-over-year. Specifically, exports to Europe, one of the largest international markets, saw an increase of 67% for the full fiscal year. This international success is helping to balance out domestic headwinds.

Original Equipment Manufacturers (OEMs) and institutional buyers, particularly in Education, present a more volatile picture. Sales to the education market saw a significant slowdown, with one quarterly report noting a drop of nearly 60% in Q3 FY2025. This was partly due to a delay in a large project awaiting budget approval, pushing some business into fiscal year 2026. Still, the company noted higher sales to OEMs in its Asian markets contributed to the overall FY2025 growth.

Here's a quick look at how the geographic distribution of revenue stacks up for the full fiscal year 2025, which gives you a sense of where the customer base is located:

Geographic Segment	FY2025 Revenue Share	Approximate Revenue (USD)
United States	71.04%	$8,970,000
Sweden	9.89%	$1,248,000
Czech Republic	9.56%	$1,204,000
All other countries	4.68%	$590,000

The remaining revenue is split among smaller international markets including the Republic of Korea (1.64%), Malaysia (1.24%), Canada (1.04%), and Japan (0.91%). The domestic segment, which includes traditional brick-and-mortar retailers and domestic distributors, experienced declines, influenced by excess inventory at some partners.

You can see the performance metrics tied to the key segments below:

• Export Sales Growth (FY2025): 48% increase.
• Direct-to-Consumer (DTC) Sales Growth (FY2025): 16.5% increase.
• DTC Share of Net Sales (FY2025): Approximately 19%.
• Education Market Sales (Q3 FY2025): Experienced a drop of nearly 60%.

Finance: draft 13-week cash view by Friday.

Koss Corporation (KOSS) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive Koss Corporation's operations as of late 2025. Honestly, for a company this size, managing the cost of goods and overhead is where the real battle is won or lost.

Cost of Goods Sold (COGS), which was $7.85 million in FY2025, represents the direct costs tied to the headphones Koss sold that year. Given that net sales for the full year ended June 30, 2025, reached $12,624,170, this COGS figure resulted in a gross margin of 37.8% for the fiscal year, an improvement from the prior year's 34.1%. That margin lift came from a favorable sales mix, including higher-margin new products.

Operating expenses are a major component, totaling $6.5 million for FY2025, marking a 7.5% increase over the previous year. A significant part of this is the selling, general, and administrative (SG&A) costs. For instance, in the second quarter of FY2025, SG&A expenses were slightly lower at $1.55 million, though this decrease was largely offset by rising legal and advertising expenses.

Tariffs on China-produced goods are definitely a headwind you need to watch. Koss Corporation noted receiving inbound shipments that were tariffed at a punitive rate of 145%. While accounting rules capitalized these tariffs on the balance sheet as part of inventory cost initially, they will bleed off as an increase in COGS when those specific items are sold over successive periods. Management expects these tariffs to continue to challenge the business.

Research and development (R&D) and product design costs are ongoing, as Koss plans to introduce new product offerings regularly for both its Bluetooth and traditional wired headphones. A related cost pressure comes from worldwide certification requirements for these new technologies, which increases the expense of regional compliance testing and impacts the time it takes to bring wireless items to market.

Litigation costs related to intellectual property enforcement are another factor pushing operating expenses higher. The increase in FY2025 operating expenses was specifically attributed, in part, to rising legal fees associated with patent litigation.

Here's a quick look at the key cost and performance metrics for the full fiscal year 2025:

Metric	Amount / Rate
Cost of Goods Sold (COGS)	$7.85 million
Total Operating Expenses (FY2025)	$6,500,000
SG&A (Q2 FY2025 Example)	$1,550,000
Net Sales (FY2025)	$12,624,170
Gross Margin (FY2025)	37.8%
Tariff Rate on Certain Imports	145% Punitive Rate
Net Loss (FY2025)	$874,831

You should keep an eye on these specific cost drivers:

• Inventory carrying costs impacted by the 145% punitive tariff rate on certain China-sourced goods.
• Increased legal expenses tied to intellectual property defense and enforcement activities.
• Rising costs for regional compliance testing related to new wireless product development.
• The stabilization of freight costs, which management expected in the quarter following the fiscal year-end.

Finance: draft 13-week cash view by Friday.

Koss Corporation (KOSS) - Canvas Business Model: Revenue Streams

Koss Corporation (KOSS) generates revenue primarily through the sales of stereo headphones and related accessory products. This includes a diverse range of high-fidelity headphones, wireless Bluetooth headphones, speakers, and various headsets.

For the fiscal year ended June 30, 2025, the top-line performance showed modest improvement. Total Net Sales for Fiscal Year 2025 were $12.62 million, which represented a 2.9% increase from the prior year's sales of $12.27 million. The gross margin also saw a positive shift, improving to 37.8% from 34.1% the previous year, helped by a favorable sales mix.

The growth drivers for the full fiscal year were clearly weighted toward international and direct channels, offsetting softness in traditional domestic distribution. You can see the breakdown of the key revenue stream dynamics below:

Revenue Segment	FY2025 Performance Metric	FY2025 Value/Change
Total Net Sales (FY2025)	Total Revenue Amount	$12.62 million
Direct-to-Consumer (DTC) Sales	Year-over-Year Growth	16.5%
Export Sales to International Distributors	Year-over-Year Growth	48%
DTC Sales as a Percentage of Total Sales (Approximate)	Share of Revenue	Nearly a quarter of the Company's sales
Sales Outside the U.S. (Approximate)	Share of Total Net Sales	Nearly 30%

The company's strategy is clearly leaning into channels it can control more directly. The Direct-to-Consumer (DTC) sales channel, which grew 16.5% in FY2025, is a key focus area, allowing Koss Corporation to control messaging and build a one-to-one relationship with consumers. This channel now accounts for nearly a quarter of the Company's total sales.

International expansion proved to be the strongest area of growth for the fiscal year. Export sales to international distributors, which grew 48% in FY2025, were outstanding, with exports to Europe specifically increasing by 67%.

Revenue streams also include sales to Original Equipment Manufacturers (OEMs) and the Education sector, though the latter experienced headwinds. Here's a quick look at the composition of the revenue streams:

• Sales of stereo headphones and related accessory products.
• Direct-to-Consumer (DTC) sales, which saw a 16.5% uptick in FY2025.
• Export sales to international distributors, surging by 48% for the fiscal year.
• Sales to Original Equipment Manufacturers (OEMs), which saw higher sales.
• Sales to the Education sector, which experienced some business shifting out of the period due to budget assessment delays.

Honestly, the performance shows a clear pivot; the 48% export growth and the 16.5% DTC growth are what pulled the total net sales up to $12.62 million for the year.