Overview

* Surge Components ( SPRS ) Q3 net sales rose 29% yr/yr to $10.3 mln

* Gross profit increased 14% yr/yr to $2.8 mln despite lower gross margin

* Net income available to common shareholders grew 6% yr/yr

Outlook

* Surge Components ( SPRS ) is cautiously optimistic about the next quarter and early 2026

* Company notes potential tariff impacts on customers exporting from Mexico

Result Drivers

* INVENTORY NORMALIZATION - Surge attributes revenue growth to normalization of excess inventory in the electronics industry, stimulating renewed purchasing activity

* CUSTOMER EXPANSION - Increased business with new and existing customers contributed to higher net sales

* TARIFF MITIGATION - Co has mitigated some tariff impacts by passing costs to customers and adjusting delivery routes

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales $10.30

mln

Q3 EPS $0.08

Q3 Gross 27.70%

Margin

Q3 Gross $2.80

Profit mln

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)