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Surge Components Reports Lower 3Q 2026 Net Income as Quarterly Revenue Drops 1.8%

MixedMedium impact
SPRS$3.99 1.01%

Surge Components, Inc. (OTC:SPRS) delivered its third-quarter financial results for fiscal 2026, generating $10.09 million in revenue. That reflects a 1.8% dip from $10.27 million in the same quarter last year. Net income dropped to $220.53 thousand from $472.21 thousand a year earlier, while diluted earnings per share reached $0.04 compared to $0.08 in the third quarter of 2025.

Despite the softer quarterly profitability, nine-month sales rose 4.6% year over year to $27.6 million, lifted by new and expanded client relationships. Nine-month diluted earnings per share remained flat at $0.10. Operating performance benefited from growth in higher-margin products and expansion in Challenge customized design services for audible components.

Looking ahead, investors will be monitoring how recent operational investments pay off. Surge Components has expanded its sales and marketing teams across Europe and Hong Kong to support Asian manufacturing operations and fuel European expansion. The business also boosted sales headcount, enhanced transfer capabilities between the U.S. and Asia, and placed funds into Treasury investments to strengthen company liquidity.

Key points

  • Surge Components posted third-quarter 2026 revenue of $10.09 million, down 1.8% from $10.27 million in the year-ago period.
  • Quarterly net income decreased to $220.53 thousand from $472.21 thousand in the prior-year quarter.
  • Diluted earnings per share for the quarter fell to $0.04 from $0.08, while year-to-date diluted EPS held steady at $0.10.
  • Consolidated nine-month revenue grew 4.6% year over year to $27.6 million due to new and expanded client orders.
  • The company expanded its presence in Hong Kong and Europe and made Treasury investments to support liquidity.

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Questions and answers

What were Surge Components 3Q 2026 earnings?

Surge Components reported third-quarter 2026 net income of $220.53 thousand, or $0.04 per diluted share, down from $472.21 thousand and $0.08 per diluted share in the year-ago quarter.

How much revenue did Surge Components generate in 3Q 2026?

Surge Components generated $10.09 million in third-quarter 2026 revenue, representing a 1.8% decline compared to $10.27 million in the prior-year period.

How did Surge Components perform over the first nine months of 2026?

For the first nine months of 2026, consolidated sales increased 4.6% year over year to $27.6 million, while diluted earnings per share remained unchanged at $0.10.