SurgePays (SURG) AI Stock Analysis

• Market Cap: $56.80M
• Dividend Yield: N/A
• Average Volume (3M): 98.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.36
• Revenue Growth: -67.73%
• EPS Growth: -2274.78%
• Country: US
• Employees: 130
• Sector: Communication Services
• Sector Strength: 97
• Industry: Software - Application
• EPS (TTM): -0.36
• Shares Outstanding: 20,431,550
• 10 Day Avg. Volume: 128,580
• 30 Day Avg. Volume: 98,968
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 1.85
• Enterprise Value/Gross Profit: -2.73
• Enterprise Value/Ebitda: -1.42
• 1Y Price Target: $9.50
• Price Target Upside: 247.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 52 Neutral
• Price Target: $3.00 ▲(9.89% Upside)

SurgePays' overall stock score is primarily impacted by its challenging financial performance, with declining revenues and profitability issues. However, the positive guidance and strategic partnerships highlighted in the earnings call provide some optimism. The technical analysis indicates moderate bullish momentum, but the valuation remains unattractive due to ongoing losses.

Positive Factors

Strategic Partnerships

The partnership with AT&T enhances network reliability and strategic positioning, providing a competitive edge in the telecommunications sector.

Subscriber Growth

Strong subscriber growth in the Lifeline program indicates increasing market penetration and potential for sustained revenue expansion.

Cost Management

Significant reduction in SG&A expenses reflects improved cost management, which can enhance profitability and operational efficiency over time.

Negative Factors

Revenue Volatility

Revenue volatility poses a challenge to financial stability, making it difficult to predict future cash flows and plan long-term investments.

Cash Flow Constraints

Negative cash flow indicates potential liquidity issues, limiting the company's ability to invest in growth opportunities and manage debt.

Profitability Challenges

Negative profit margins highlight operational inefficiencies and the need for strategic adjustments to achieve sustainable profitability.

SurgePays Business Overview & Revenue Model

Company Description

SurgePays (SURG) is a financial technology company that operates primarily in the telecommunications and financial services sectors. It focuses on providing affordable mobile services and payment solutions to underserved communities, leveraging its extensive network of retail locations and digital platforms. The company offers a range of core products, including mobile phone services, prepaid cards, and payment processing solutions, aimed at enhancing accessibility and convenience for its customers.

How the Company Makes Money

SurgePays generates revenue through multiple streams. The primary revenue sources include mobile service subscriptions, where customers pay for prepaid wireless plans, and transaction fees from payment processing services. Additionally, the company earns money from retail commissions and partnerships with various mobile network operators and financial service providers. SurgePays also benefits from the growing demand for financial inclusion products, positioning itself as a key player in serving underserved demographics, which further enhances its earning potential.

SurgePays Financial Statement Overview

Summary

SurgePays is facing a challenging financial environment with declining revenues, profitability issues, and cash flow constraints. The income statement reveals significant revenue volatility and negative profit margins. The balance sheet shows manageable leverage but a concerning decline in stockholders' equity. Cash flow is strained with negative operating and free cash flow, highlighting cash management issues.

Income Statement

SurgePays has experienced significant revenue volatility with a major decline from 2023 to 2024. Gross and net profit margins have turned negative, indicating a challenging profitability environment. The company faces substantial EBIT and EBITDA losses, which reflect operational difficulties and inefficiencies.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, suggesting manageable leverage. However, the equity ratio indicates a reliance on liabilities. The decline in stockholders' equity over recent periods is a concern, although the reduction in total debt is a positive aspect.

Cash Flow

The cash flow position is strained, with negative operating and free cash flow in 2024. This marks a sharp reversal from the previous year's positive cash flow, raising concerns about cash management and sustainability. The operating cash flow to net income ratio is negative, highlighting cash flow inefficiencies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	36.46M	60.88M	137.14M	121.54M	51.06M	54.41M
Gross Profit	-24.66M	-14.32M	35.64M	13.47M	6.17M	2.47M
EBITDA	-47.58M	-41.22M	20.08M	2.39M	-5.10M	-5.40M
Net Income	-48.81M	-45.73M	20.62M	-680.76K	-13.53M	-10.72M
Balance Sheet
Total Assets	15.22M	23.98M	41.93M	34.00M	19.50M	7.33M
Cash, Cash Equivalents and Short-Term Investments	4.40M	11.79M	14.62M	7.04M	6.28M	674.00K
Total Debt	1.37M	4.59M	5.44M	8.11M	7.68M	7.67M
Total Liabilities	15.15M	8.71M	13.52M	28.89M	15.95M	18.05M
Stockholders Equity	61.39K	15.32M	28.25M	4.99M	3.55M	-10.73M
Cash Flow
Free Cash Flow	-34.82M	-21.83M	10.01M	94.69K	-15.34M	-4.33M
Operating Cash Flow	-34.30M	-21.31M	10.29M	793.27K	-15.29M	-4.33M
Investing Cash Flow	-3.02M	-3.00M	-281.30K	-1.50M	-376.72K	8.35K
Financing Cash Flow	3.30M	22.48M	-2.42M	1.46M	21.27M	4.65M

SurgePays Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.73
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SURG, the sentiment is Negative. The current price of 2.73 is below the 20-day moving average (MA) of 2.78, below the 50-day MA of 2.78, and above the 200-day MA of 2.44, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 45.96 is Neutral, neither overbought nor oversold. The STOCH value of 51.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SURG.

SurgePays Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTWK	―	$50.91M	17.48	8.04%	―	7.65%	311.31%
Sector *	―	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
HKIT	―	$62.99M	―	-6.17%	―	-47.44%	-318.95%
SURG	―	$56.80M	―	-210.94%	―	-67.73%	-2274.78%
INLX	―	$49.96M	―	-15.90%	―	-2.63%	-1080.14%
LPSN	―	$59.03M	-0.20	―	―	-24.89%	-72.84%
PHUN	―	$50.67M	-3.49	-21.38%	―	―	―

SurgePays Corporate Events

SurgePays CFO Anthony Evers to Depart by Year-End

SurgePays, Inc. has announced that the employment agreement of its Chief Financial Officer, Anthony Evers, will not be renewed upon its expiration on December 31, 2025. The company and Mr. Evers plan to discuss his future role and continued service with SurgePays.

The most recent analyst rating on (SURG) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on SurgePays stock, see the SURG Stock Forecast page.

SurgePays Inc’s Earnings Call Highlights Growth Amid Challenges

SurgePays Inc’s recent earnings call painted a picture of optimism mixed with challenges. The company reported strong revenue growth, bolstered by strategic partnerships and a significant increase in Lifeline program subscribers. However, these positives were tempered by ongoing losses and reduced cash reserves. Despite these hurdles, the overall sentiment was positive, driven by strategic initiatives and partnerships that suggest a promising future.

SurgePays Reports Growth and Sets Ambitious Revenue Targets

SurgePays, Inc. is a wireless and fintech company that focuses on providing mobile connectivity and financial services to underserved communities, operating as both a mobile virtual network operator (MVNO) and mobile virtual network enabler (MVNE).

SurgePays Announces $15M At-The-Market Offering

On August 5, 2025, SurgePays, Inc. entered into an At The Market Offering Agreement with Titan Partners Group LLC to potentially sell shares of its common stock, with an aggregate offering price of up to $15 million. The proceeds from the offering, if any, will be used for the expansion of SurgePays’ Lifeline business, working capital, and general corporate purposes, potentially impacting its market positioning and operations.

The most recent analyst rating on (SURG) stock is a Buy with a $9.00 price target. To see the full list of analyst forecasts on SurgePays stock, see the SURG Stock Forecast page.