# Surge Components Q3 Sales Dip 1.8% as Year-to-Date Revenue Rises

- URL: https://stocks.freetheai.org/news/surge-components-q3-sales-dip-1-8-as-year-to-date-revenue-rises-568659
- Published: 2026-10-14T20:15:00Z
- Category: earnings; sentiment: mixed; impact: low
- Symbols: [OTC:SPRS](https://stocks.freetheai.org/symbols/OTC-SPRS)
- Written by our AI from expert market sources across the web for FreeTheAI Stocks, built by Vibhek Soni
- How write-ups are made: https://stocks.freetheai.org/how-we-write
- Not financial advice: https://stocks.freetheai.org/disclaimer

Surge Components, Inc. (OTC:SPRS) reported third-quarter 2026 net sales of $10.09 million, a 1.8% decline from the same period last year. Gross margin for the quarter compressed to 27.1% from 27.7% a year earlier as rising selling and administrative expenses associated with expansion weighed on near-term results. Shares of the company traded at $3.99, up 1.01% on the day.

Despite the quarterly dip, the company's nine-month performance reflected steady top-line growth. Net sales for the nine-month period increased 4.6% year-over-year to $27.65 million, while gross profit grew 6.1% to $8.04 million, pointing to broader demand resilience across the business.

Moving forward, market participants will monitor the company's ability to recover profit margins while absorbing tariff costs, which were partially passed through during the quarter. Key factors to watch include cost discipline around ongoing expansion spending and overall demand stability.

## Key points

- Surge Components reported Q3 net sales of $10.09 million, down 1.8% year-over-year.
- Quarterly gross margin declined to 27.1% compared to 27.7% in the prior-year period.
- Nine-month net sales grew 4.6% year-over-year to $27.65 million, with gross profit up 6.1% to $8.04 million.
- Operating expenses increased during Q3 as the company funded ongoing expansion efforts.

## Questions and answers

### What were Surge Components Q3 2026 sales results?

Surge Components reported Q3 2026 net sales of $10.09 million, down 1.8% year-over-year, while gross margin decreased to 27.1% from 27.7%.

### How did Surge Components perform over the first nine months?

For the nine-month period, net sales rose 4.6% year-over-year to $27.65 million, and gross profit increased 6.1% to $8.04 million.

### Why did Surge Components gross margin drop in Q3?

Gross margin slipped due to higher operating expenses from expansion efforts and partial pass-through of tariff costs.