- Surge Components (SPRS, Financial) reported a 2.5% increase in net sales to $7.2 million in Q1 2025, compared to Q1 2024.
- The company turned a net loss into profit with a net income of $57,356 ($0.01 per share).
- Gross profit remained stable at $2.0 million, though the margin decreased slightly to 28.3% from 29.0%.
Surge Components, Inc. (OTC Pink: SPRS), a major supplier of electronic components, announced its financial results for the first quarter of 2025, ending February 28. The company saw a 2.5% rise in revenue with net sales reaching $7.2 million, outperforming the $7.1 million generated in the same period the previous year.
The company successfully achieved a net income of $57,356, or $0.01 per share, a significant turnaround from a net loss of $72,001 in Q1 2024. Despite facing global tariffs, Surge maintained its gross profit at $2.0 million, although the gross profit margin slightly slipped to 28.3% from 29.0%.
Operational expenses were trimmed effectively, with selling and shipping expenses reduced by 2.8% to $653,367, and general administrative costs cut by 4.0%, amounting to $1.4 million. This cost management played a crucial role in the company's positive financial performance.
Surge Components continues adapting to the challenges posed by global tariffs by expanding distribution channels, enhancing sales talent, and moving production outside China. The company has been able to pass a portion of these tariff costs onto customers while focusing on acquiring new clients and expanding existing customer relationships.
Looking forward, the company's strategic initiatives, including regionalizing sales management and leveraging partnerships, aim to mitigate tariff-related impacts and foster long-term growth. Surge remains optimistic about the business outlook, buoyed by its resilient team and strong partner network.
