Revenue accelerated to $166.8M in Q2 2026 (up 14.3% YoY) with gross margin expanding to 42.4%, driving operating income up 40% YoY to $24.9M.
Knowles Corporation (KN) annual income statement — 14-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Sales/Revenue | 635M | 593.2M | 553.5M | 456.8M | 478.8M | 868.1M | 764.3M | 854.8M | 826.9M | 744.2M | 755.7M | 849.6M | 1.14B | 1.21B | 1.12B |
| Revenue Growth % | 12.77% | 7.17% | 21.17% | -4.59% | -44.85% | 13.58% | -10.59% | 3.37% | 11.11% | -1.52% | -11.05% | -25.56% | -6.05% | 8.66% | - |
| Cost of Goods Sold | 366.5M | 348.7M | 332.3M | 256.7M | 251.8M | 526.6M | 505M | 531.2M | 510.4M | 460.1M | 476.2M | 534.6M | 927.9M | 824.97M | 710.62M |
| COGS % of Revenue | - | 58.78% | 60.04% | 56.2% | 52.59% | 60.66% | 66.07% | 62.14% | 61.72% | 61.82% | 63.01% | 62.92% | 81.3% | 67.91% | 63.56% |
| Gross Profit | 268.5M | 244.5M | 221.2M | 200.1M | 227M | 341.5M | 259.3M | 323.6M | 316.5M | 284.1M | 279.5M | 315M | 213.4M | 389.84M | 407.37M |
| Gross Margin % | 42.28% | 41.22% | 39.96% | 43.8% | 47.41% | 39.34% | 33.93% | 37.86% | 38.28% | 38.18% | 36.99% | 37.08% | 18.7% | 32.09% | 36.44% |
| Gross Profit Growth % | - | 10.53% | 10.54% | -11.85% | -33.53% | 31.7% | -19.87% | 2.24% | 11.4% | 1.65% | -11.27% | 47.61% | -45.26% | -4.3% | - |
| Operating Expenses | 175M | 166.8M | 164.5M | 150.7M | 136.2M | 223.3M | 211.4M | 235.5M | 236.6M | 212.7M | 223.7M | 264.7M | 236.9M | 229.72M | 265.44M |
| OpEx % of Revenue | - | 28.12% | 29.72% | 32.99% | 28.45% | 25.72% | 27.66% | 27.55% | 28.61% | 28.58% | 29.6% | 31.16% | 20.76% | 18.91% | 23.74% |
| Selling, General & Admin | 141.5M | 142.8M | 127.4M | 119.2M | 116.7M | 130.5M | 118.5M | 138.7M | 136M | 119.3M | 131.7M | 171.9M | 153.9M | 147.15M | 188.14M |
| SG&A % of Revenue | - | 24.07% | 23.02% | 26.09% | 24.37% | 15.03% | 15.5% | 16.23% | 16.45% | 16.03% | 17.43% | 20.23% | 13.48% | 12.11% | 16.83% |
| Research & Development | 41.6M | 40.2M | 37.1M | 31.5M | 81.7M | 92.8M | 92.9M | 96.8M | 100.6M | 93.4M | 92M | 92.8M | 83M | 82.57M | 77.3M |
| R&D % of Revenue | - | 6.78% | 6.7% | 6.9% | 17.06% | 10.69% | 12.15% | 11.32% | 12.17% | 12.55% | 12.17% | 10.92% | 7.27% | 6.8% | 6.91% |
| Other Operating Expenses | -2M | -16.2M | 0 | 0 | -62.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 93.5M | 77.7M | 56.7M | 49.4M | 90.8M | 118.2M | 47.9M | 88.1M | 79.9M | 71.4M | 55.8M | 50.3M | -23.5M | 160.12M | 141.93M |
| Operating Margin % | 14.72% | 13.1% | 10.24% | 10.81% | 18.96% | 13.62% | 6.27% | 10.31% | 9.66% | 9.59% | 7.38% | 5.92% | -2.06% | 13.18% | 12.69% |
| Operating Income Growth % | - | 37.04% | 14.78% | -45.59% | -23.18% | 146.76% | -45.63% | 10.26% | 11.9% | 27.96% | 10.93% | 314.04% | -114.68% | 12.82% | - |
| EBITDA | 130.6M | 114M | 94.3M | 75.6M | 144.7M | 180.7M | 108.5M | 142.5M | 132.3M | 125.2M | 124.8M | 127.2M | 128.1M | 291.03M | 256.81M |
| EBITDA Margin % | 20.57% | 19.22% | 17.04% | 16.55% | 30.22% | 20.82% | 14.2% | 16.67% | 16% | 16.82% | 16.51% | 14.97% | 11.22% | 23.96% | 22.97% |
| EBITDA Growth % | 34.36% | 20.89% | 24.74% | -47.75% | -19.92% | 66.54% | -23.86% | 7.71% | 5.67% | 0.32% | -1.89% | -0.7% | -55.98% | 13.33% | - |
| D&A (Non-Cash Add-back) | 37.1M | 36.3M | 37.6M | 26.2M | 53.9M | 62.5M | 60.6M | 54.4M | 52.4M | 53.8M | 69M | 76.9M | 151.6M | 130.91M | 114.88M |
| EBIT | 93.4M | 73.3M | 54.8M | 44.7M | 91.6M | 119M | 28.4M | 81.6M | 77.7M | 39.8M | 47.9M | 35.4M | -48.4M | 143.53M | 135.39M |
| Net Interest Income | -7.3M | -9.3M | -16.3M | -5.4M | -3.9M | -14.2M | -16.4M | -14.5M | -16M | -20.2M | -19.7M | -12.7M | -6.6M | -42.02M | -56.47M |
| Interest Income | 0 | 0 | 3.8M | 2M | 400K | 200K | 700K | 800K | 600K | 200K | 100K | 100K | 100K | 0 | 0 |
| Interest Expense | 7.3M | 9.3M | 20.1M | 7.4M | 4.3M | 14.4M | 17.1M | 15.3M | 16.6M | 20.4M | 19.8M | 12.8M | 6.7M | 42.02M | 56.47M |
| Other Income/Expense | -8M | -13.7M | -22M | -12.1M | -3.1M | -13.6M | -36.6M | -21.8M | -18.8M | -52M | -27.7M | -27.7M | -31.6M | -58.61M | -63.01M |
| Pretax Income | 85.5M | 64M | 34.7M | 37.3M | 87.7M | 104.6M | 11.3M | 66.3M | 61.1M | 19.4M | 28.1M | 22.6M | -55.1M | 101.51M | 78.92M |
| Pretax Margin % | 13.46% | 10.79% | 6.27% | 8.17% | 18.32% | 12.05% | 1.48% | 7.76% | 7.39% | 2.61% | 3.72% | 2.66% | -4.83% | 8.36% | 7.06% |
| Income Tax | 12.3M | 13.1M | 11.3M | -28.3M | 21.3M | -45.6M | 8.4M | 16.6M | -4.5M | 12.9M | 8.3M | 6.1M | 31.9M | -4.3M | -181K |
| Effective Tax Rate % | 14.39% | 20.47% | 32.56% | -75.87% | 24.29% | -43.59% | 74.34% | 25.04% | -7.36% | 66.49% | 29.54% | 26.99% | -57.89% | -4.24% | -0.23% |
| Net Income | 67.5M | 44.2M | -239.5M | 72.4M | -430.1M | 150.4M | 6.6M | 49.1M | 66.1M | 6M | -16.7M | -233.8M | -87M | 105.81M | 79.1M |
| Net Margin % | 10.63% | 7.45% | -43.27% | 15.85% | -89.83% | 17.33% | 0.86% | 5.74% | 7.99% | 0.81% | -2.21% | -27.52% | -7.62% | 8.71% | 7.07% |
| Net Income Growth % | 192.21% | 118.46% | -430.8% | 116.83% | -385.97% | 2178.79% | -86.56% | -25.72% | 1001.67% | 135.93% | 92.86% | -168.74% | -182.22% | 33.78% | - |
| Net Income (Continuing) | 73.2M | 50.9M | 23.4M | 65.6M | 66.4M | 150.2M | 2.9M | 49.7M | 65.6M | 6.5M | 19.8M | 16.5M | -87M | 105.81M | 79.1M |
| Discontinued Operations | -1.6M | -6.7M | -262.9M | 6.8M | -496.5M | 200K | 3.7M | -600K | 500K | -500K | -36.5M | -250.3M | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.77 | 0.50 | -2.67 | 0.79 | -4.69 | 1.59 | 0.03 | 0.53 | 0.74 | 0.75 | -0.47 | -2.69 | -1.02 | 1.24 | 0.93 |
| EPS Growth % | 179.39% | 118.73% | -437.97% | 116.84% | -394.97% | 4996.15% | -94.11% | -28.38% | -1.33% | 259.57% | 82.53% | -163.73% | -182.26% | 33.33% | - |
| EPS (Basic) | - | 0.51 | -2.69 | 0.80 | -4.69 | 1.63 | 0.03 | 0.54 | 0.75 | 0.76 | -0.48 | -2.69 | -1.02 | 1.24 | 0.93 |
| Diluted Shares Outstanding | 87.9M | 87.3M | 90.1M | 91.6M | 91.7M | 94.7M | 92.88M | 93.44M | 91.19M | 90.49M | 89.18M | 86.8M | 85.05M | 85.03M | 85.03M |
| Basic Shares Outstanding | 85.7M | 85.8M | 88.9M | 90.9M | 91.7M | 92.3M | 91.7M | 91.16M | 90.05M | 89.33M | 88.67M | 86.8M | 85.05M | 85.03M | 85.03M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying KN stock.
For fiscal year 2025, Knowles Corporation (KN) reported total revenue of $593.2M. This represents a 46.9% decline compared to $1.12B in 2012.
Knowles Corporation (KN) is profitable, generating $44.2M in net income for the fiscal year ending 2025 with a net profit margin of 7.5%.
Knowles Corporation (KN) reported an operating income of $77.7M, resulting in an operating profit margin of 13.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Knowles Corporation (KN) generated $244.5M in gross profit for the year, representing a gross profit margin of 41.2%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Customer concentration and mix shift
Metrics are mathematically derived from official filings.
Revenue Momentum Accelerates on Mix Shift
Knowles' revenue grew 14.3% year-over-year in Q2 2026, reaching $166.8M, the highest in the reported period, according to the latest quarterly financials. This marks the fourth consecutive quarter of accelerating growth, suggesting sustained demand across segments.
The revenue trajectory has clearly inflected upward, with growth accelerating from -0.8% in Q1 2025 to 14.3% by Q2 2026. This appears driven by a favorable mix shift toward Precision Devices and continued strength in Audio, as evidenced by the sequential revenue gains. The durability of this growth will depend on the sustainability of design wins in medtech and defense, which are less cyclical than consumer electronics.
Gross Margin Expansion Reflects Product Mix
Gross margin improved to 42.4% in Q2 2026, up from 40.8% a year earlier, as reported in the income statement. This expansion suggests a favorable shift toward higher-margin Precision Devices and disciplined cost management in manufacturing.
The 160 basis point year-over-year gross margin improvement indicates that the company is successfully executing its strategy to pivot toward higher-value products. However, the absolute margin level remains below peers like MACOM (54.9%), highlighting the dilutive impact of the consumer Audio segment. Investors should monitor whether this expansion is sustainable as the mix shift progresses.
Operating Leverage Emerges as Costs Stabilize
Operating income surged to $24.9M in Q2 2026, a 40% increase from the prior year, while SG&A as a percentage of revenue declined to 21.5% from 21.8%. This demonstrates improving operating leverage, according to the quarterly data.
The company is scaling operating income faster than revenue, with operating margin expanding from 12.2% to 14.9% year-over-year. This appears driven by revenue growth outpacing fixed cost increases, particularly in SG&A. The recent EPS miss relative to estimates, however, suggests that some cost pressures may be emerging, warranting close attention to expense discipline in coming quarters.
Earnings Quality Tempered by SBC and Tax Items
Net income of $19.4M in Q2 2026 includes $6.2M in stock-based compensation, representing 32% of net income, as per the income statement. This high SBC level may inflate reported EPS relative to cash earnings.
The recurring SBC expense, which has been present in most quarters, reduces the quality of reported earnings. Additionally, the Q2 2026 EPS of $0.22 was below the consensus estimate of $0.36, despite revenue beating guidance, implying possible one-time costs or margin pressure. Investors should adjust for SBC to assess true cash-generating ability.
R&D and SG&A Discipline Drives Margin Gains
R&D spending remained flat at $10.0M in Q2 2026, while SG&A rose modestly to $35.8M, resulting in combined operating expenses as a percentage of revenue falling to 27.5% from 28.6% a year ago. This cost discipline is a key margin driver.
The company has maintained tight control over R&D and SG&A, allowing operating leverage to flow through. However, R&D intensity is critical for maintaining its technological edge in balanced armature and MEMS; any underinvestment could jeopardize long-term competitiveness. The flat R&D spend despite revenue growth suggests efficiency, but investors should watch for potential catch-up spending.
Consumer Cyclicality and Concentration Risks Loom
Despite strong recent growth, Knowles' Audio segment remains exposed to volatile smartphone and TWS markets, with customer concentration a key risk. The Q2 2026 EPS miss despite a revenue beat highlights potential margin fragility, as reported in the latest earnings release.
Short-sellers might argue that the company's growth is heavily dependent on a few large OEMs in consumer electronics, making it vulnerable to design losses or demand shocks. The recent divergence between revenue and EPS suggests that pricing power may be limited, and any downturn in consumer demand could quickly erode margins. Additionally, the high SBC and modest cash conversion relative to earnings warrant scrutiny.