Surge Components, Inc. reported fiscal 2025 revenue of $36.32 million, up 16.4% from $31.21 million in 2024, while gross profit rose to $10.46 million, a 17.4% increase from $8.90 million the prior year. The company’s gross margin improved to 28.8% from 28.5%, reflecting a modest but meaningful expansion in pricing power and a favorable shift in product mix.
Tariff costs for the year totaled $941,564, up from $549,564 in 2024, indicating the company’s ability to pass increased import duties onto customers. Selling and shipping expenses increased to $2.91 million, a 6.1% rise, while general and administrative costs climbed to $6.22 million, up 19.9% largely due to a $538,361 stock‑based compensation expense. These cost increases were largely offset by higher sales volume and a higher‑margin customer mix.
Net income available to common shareholders reached $1.13 million, up from $820,677 in 2024, and earnings per share rose to $0.20 from $0.15. The earnings growth is driven by the combination of revenue expansion, margin improvement, and disciplined cost management, particularly in the face of rising tariff and supply‑chain costs.
Surge’s management highlighted continued expansion into European markets and the development of new products through its Challenge Electronics division, positioning the company to capture additional mid‑tier OEM demand. The company also noted exploration of opportunities within the AI ecosystem, signaling a proactive approach to emerging high‑growth markets.
CEO Ira Levy said, “We are very pleased with our strong performance in fiscal 2025, highlighted by meaningful growth in sales, expanding margins, and a significant increase in profitability year over year.” He added that the company’s strategic initiatives and strong financial performance position it well for continued growth and value creation in the year ahead.
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