Surge Components, Inc. Announces First Quarter 2026 Results

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 first fiscal quarter ended February 28, 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 invest in future growth, including investments in product innovation, hiring new talent, and opening new regional sales offices
• Continues to advance its European sales operation, with strong growth from Surge division European sales and Challenge Electronics establishing a sales presence in Europe, expected by mid-2026
• Challenge Electronics continued to develop new products for its distribution channel, which resulted in new customers during the first fiscal quarter 2026

Financial Highlights for the First Quarter Ended February 28, 2026

• Drove net sales of $8.2 million, compared to $7.2 million in the prior-year period
• Increased gross profit to $2.4 million from $2.0 million in the prior-year period
• Improved gross profit margin to 29.4% from 28.3% in the prior-year period
• Net loss available to common shareholders of $36,775; earnings per share of $(0.01) compared to net income available to common shareholders of $54,856; earnings per share of $0.01 in the prior-year-period

“We are pleased to deliver meaningful growth in sales, gross profit, and expanded gross margins during the first 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. Challenge Electronics developed new products for its expanded distribution sales channel, which also attracted new customers during the quarter.

“We continue to invest in future growth, including investments in product innovation, hiring new talent, and opening new regional sales offices. These investments impacted the bottom line this quarter, but we expect them to drive profitable growth in the future. We are also actively expanding our global reach. The Surge division’s European sales operation continues to perform well, and we are optimistic about continued growth in that market through 2026. At the same time, our Challenge Electronics sales division is establishing a sales presence in Europe, which we anticipate by mid-2026.