Delivered Solid Q2 Net Sales of $9.4 Million representing year-over-year growth of 5.0%
Gross Profit of $2.9 Million, representing year-over-year growth of 7.5% and Gross Margin expansion of 70 basis points
Delivered earnings per share of $0.07 compared to $0.02 in the prior-year-period
DEER PARK, N.Y., July 14, 2026--(BUSINESS WIRE)--Surge Components, Inc. ("Surge" or the "Company") (OTC Pink: SPRS), a leading supplier of capacitors, discrete semi-conductors, switches, and audible/sounding devices, today announced financial results for the second fiscal quarter ended May 31, 2026.
Operational Highlights
Continues to strengthen its distribution sales channel, with distribution partners remaining a key growth driver in addition to sales through subcontractor relationships
Continues to expand its European sales operation
Continues to invest in future growth, including the hiring of new engineering talent during the quarter
Financial Highlights for the Second Quarter Ended May 31, 2026
Drove net sales of $9.4 million, compared to $8.9 million in the prior-year period
Increased gross profit to $2.9 million from $2.7 million in the prior-year period
Improved gross profit margin to 30.9% from 30.2% in the prior-year period
Net income available to common shareholders of $404,558; earnings per share of $0.07 compared to net income available to common shareholders of $117,964; earnings per share of $0.02 in the prior-year-period
"We are pleased to deliver meaningful growth in sales, gross profit, and expanded margins during the second quarter," said Ira Levy, President and Chief Executive Officer of Surge.
"In addition to our sales directly with customers, we continued to strengthen our distribution sales channel and sales through subcontractors who manufacture on behalf of our customers. By deepening these channels, we effectively open the door to a broad base of end customers.
"We are also actively expanding our global reach. Our European sales operation continues to perform well, we are expanding our presence in Europe, and we remain optimistic about continued growth in that market through 2026.
"Margins expanded during the quarter, driven in part by our customized design capabilities for individual customers, a differentiator that commands higher margins. We were able to achieve these margins while continuing to invest in future growth, including the hiring of new engineering talent during the quarter.
"We would also like to touch on industry trends. With continued growth across the AI ecosystem, it is possible that demand may outpace supply, potentially resulting in longer lead times and supply constraints across parts of the industry. Our manufacturing partners' shorter lead times potentially position Surge to capitalize on these industry dynamics by helping customers secure critical products when existing suppliers cannot meet their needs. The Company will begin pursuing opportunities within the AI ecosystem, targeting potential new customers whose applications require the products that Surge supplies.