Surge Components, Inc. is a supplier of electronic products and components. The company focuses on capacitors, discrete semiconductors such as diodes transistors and rectifiers, and audible components including buzzers speakers and microphones. Its products are used in the electronic circuitry of automobiles telecom audio cellular phones computers consumer electronics garage door openers household appliances power supplies and security equipment. Surge Components, Inc. operates primarily through its wholly owned subsidiaries Challenge/Surge, Inc. and Surge Components, Limited. The firm maintains inventory of over one hundred million component units representing more than three thousand different part numbers to meet customer demand.

The company generates revenue primarily from the sale of its electronic components to original equipment manufacturers and to distributors who resell the products. In addition Surge Components, Inc. earns commission revenue by acting as the exclusive sales agent for Lelon Electronics in North America receiving a fee based on the profit margin of each sale. Product sales include capacitors which accounted for about 28% of total sales in fiscal 2025 and fiscal 2024 discrete components which made up the remainder of sales and audible components sold through its Challenge division. Commission revenue totaled $312,389 in fiscal 2025 and $95,584 in fiscal 2024. The company also generates revenue from engineering services that support product customization and new product development with its supplier partners.

The company operates through the following segments.

• Surge: This segment supplies capacitors and discrete semiconductor components such as diodes transistors and rectifiers that are used in a wide range of electronic applications including power supplies automotive telecom and consumer electronics.

• Challenge: This segment focuses on audible components including buzzers speakers microphones and related transducers that are employed in alarms backup power supplies automotive safety devices and consumer audio products.

Surge Components, Inc. competes in the highly fragmented electronic components industry where it faces numerous well established manufacturers and distributors. Its principal competitors in the capacitor market include Nichicon Panasonic Illinois Capacitor NIC AVX Murata Epcos United Chemicon Rubycon Vishay and Kemet. In the discrete component space the company competes with Vishay General Semiconductor Division General Instrument Corp OnSemi Inc Microsemi Corp Diodes Inc Littlefuse and Copper Bussman Division. For audible products the main rivals are AVX Murata Panasonic Projects Unlimited International Components Corp and Star Micronics. Despite being smaller than many of these competitors Surge Components, Inc. benefits from long standing relationships with a diversified base of Asian manufacturers and a flexible sourcing model that allows it to offer a broad product catalogue and responsive customer service.

The company sells to original equipment manufacturers and to distributors across industries such as automotive telecommunications audio computing consumer electronics home appliances power supplies and security equipment. While specific customer names are not disclosed two customers accounted for 18% and 14% of net sales in fiscal 2025 and 19% and 15% in fiscal 2024 indicating a concentration among a few key accounts. The majority of sales are distributed through a network of independent sales representatives and regional distributors that enable Surge Components, Inc. to reach a broad base of end users.