Surgepays Inc (SURG)
NASDAQ:SURG
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SurgePays
(NASDAQ:SURG)
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Rating:42Neutral
Price Target:
$0.51
▼(-81.43% Downside)
Action:Reiterated
Date:04/29/26
The score is primarily held down by severe recent financial deterioration (negative gross profit, large losses, persistent cash burn, and negative equity). Technicals also remain weak with a clear downtrend. Some offset comes from earnings-call progress on cost discipline and narrowing losses, but liquidity pressure and Nasdaq compliance risk materially constrain the outlook.
Positive Factors
Diversified revenue channels
SurgePays' shift from reliance on a single subsidized program to multiple channels (subsidized wireless, LinkUp prepaid, MVNE wholesale, POS fintech) and a >9,000 location retail footprint creates durable distribution scale and revenue optionality. This structural diversification reduces program-specific exposure, supports cross-sell and margin mix improvements, and makes growth less dependent on any single reimbursement or carrier contract over the next several quarters.
Negative Factors
Severe profitability deterioration
Gross profit turned deeply negative and net losses widened materially across recent years, signaling a structural mismatch between pricing, cost of network/provisioning, and business mix. Persistent negative gross margins erode operating leverage and make it difficult to self-fund investments, meaningful margin recovery is required to restore long-term viability.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified revenue channels
SurgePays' shift from reliance on a single subsidized program to multiple channels (subsidized wireless, LinkUp prepaid, MVNE wholesale, POS fintech) and a >9,000 location retail footprint creates durable distribution scale and revenue optionality. This structural diversification reduces program-specific exposure, supports cross-sell and margin mix improvements, and makes growth less dependent on any single reimbursement or carrier contract over the next several quarters.
Read all positive factors
SurgePays Key Performance Indicators (KPIs)
SurgePays (SURG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.28M
Dividend YieldN/A
Average Volume (3M)586.26K
Price to Earnings (P/E)―
Beta (1Y)0.25
Revenue Growth55.81%
EPS Growth30.17%
CountryUS
Employees130
SectorCommunication Services
Sector Strength97
IndustrySoftware - Application
Share Statistics
EPS (TTM)-1.80
Shares Outstanding25,121,895
10 Day Avg. Volume140,250
30 Day Avg. Volume586,259
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)-2.18
Price to Sales (P/S)0.59
P/FCF Ratio-1.57
Enterprise Value/Market Cap1.78
Enterprise Value/Revenue0.42
Enterprise Value/Gross Profit-2.23
Enterprise Value/Ebitda-0.71
Forecast
1Y Price Target
$5.00Price Target Upside83.15% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.61
Revenue Forecast (FY)$71.20M
SurgePays Business Overview & Revenue Model
Company Description
SurgePays, Inc., a financial technology and telecommunications company, provides services to the underbanked community in the United States. Its blockchain platform utilizes a suite of financial and prepaid products to convert corner stores and bo...
How the Company Makes Money
SurgePays makes money primarily by (1) selling prepaid wireless and mobile broadband service to end users and (2) earning fees/margins by enabling and distributing prepaid/digital products through retail channels.
1) Prepaid wireless and broadban...
SurgePays Earnings Call Summary
Earnings Call Date:Apr 14, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Neutral
The call mixed clear operational progress and cost discipline with material liquidity and transition risks. Highlights include demonstrated scalability (notably Q2->Q3 +62.6%), significant cost cuts (G&A and SG&A down ~27%), improved gross loss (~25.9%) and operating loss (~26.6%), strong point-of-sale/prepaid growth (+$26.1M YoY) and diversification across multiple revenue channels with a >9,000 location footprint. Lowlights include a full-year revenue decline (~6.4%), a Q3->Q4 sequential revenue decline (~13.4%) driven by reduced acquisition spend, low year-end cash (~$1.7M) and a working capital deficit (~$16.2M), substantial operating cash use (~$21.3M for 2025) and continued dependence on financing (~$10.5M raised). Management outlined actions to lower monthly burn to ~$250K–$300K and emphasized showing progress in 2026, leaving the call balanced between meaningful improvements and notable liquidity/execution risks.Positive Updates
Demonstrated scalability in 2025
Revenue progression showed Q1 $10.6M -> Q2 $11.5M (+8.5%) -> Q3 $18.7M (+62.6% vs Q2), proving the company can scale quickly when capital is deployed.
Negative Updates
Full-year revenue decline
Total revenue for 2025 was approximately $57.0M compared to $60.9M in 2024, a decline of approximately 6.4%, primarily driven by the expected drop in subsidized revenue after the Affordable Connectivity Program expiration.
Read all updates
Q4-2025 Updates
Positive
Negative
Demonstrated scalability in 2025
Revenue progression showed Q1 $10.6M -> Q2 $11.5M (+8.5%) -> Q3 $18.7M (+62.6% vs Q2), proving the company can scale quickly when capital is deployed.
Read all positive updates
Company Guidance
Management did not give formal forward-looking numeric guidance but outlined expectations and operational targets and provided many metrics: FY2025 revenue was ~ $57.0M (Q4 $16.2M; Q1 $10.6M; Q2 $11.5M; Q3 $18.7M), point-of-sale and Prepaid Services grew by ~ $26.1M YoY, cost of revenue was ~ $67.6M (vs $75.2M in 2024) with gross loss improving to ~ $10.6M (vs $14.3M), total G&A fell to ~ $20.1M (from $27.5M) and SG&A ex D&A to ~ $19.2M (from $26.3M), operating loss was ~ $30.7M (vs $41.8M), net cash used in operations was ~ $21.3M, net cash provided by financing was ~ $10.5M, year‑end cash was ~ $1.7M, working capital was a deficit of ~ $16.2M (vs a $11.8M surplus at 12/31/24), Q4 included ~ $2.3M of nonrecurring items, and management estimates current monthly cash burn of ~$250k–$300k as of end‑Q1 2026; they expect improving gross margins, continued cost discipline, and selective capital deployment to scale revenue across multiple channels (LinkUp Mobile, subsidized wireless, wholesale MVNE, POS fintech) while emphasizing they are not providing formal guidance.SurgePays Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
22
Negative
Cash Flow
20
Very Negative
| Breakdown | Mar 2026 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 56.96M | 60.88M | 137.14M | 121.54M | 51.06M |
| Gross Profit | -10.59M | -14.32M | 35.64M | 13.47M | 6.17M |
| EBITDA | -33.03M | -41.22M | 20.08M | 2.39M | -5.10M |
| Net Income | -36.07M | -45.73M | 20.62M | -680.76K | -13.53M |
Balance Sheet | |||||
| Total Assets | 8.52M | 23.98M | 41.93M | 34.00M | 19.50M |
| Cash, Cash Equivalents and Short-Term Investments | 1.73M | 11.79M | 14.62M | 7.04M | 6.28M |
| Total Debt | 13.58M | 4.59M | 5.44M | 8.11M | 7.68M |
| Total Liabilities | 23.92M | 8.71M | 13.52M | 28.89M | 15.95M |
| Stockholders Equity | -15.40M | 15.32M | 28.25M | 4.99M | 3.55M |
Cash Flow | |||||
| Free Cash Flow | -21.31M | -21.83M | 10.01M | 94.69K | -15.34M |
| Operating Cash Flow | -21.29M | -21.31M | 10.29M | 793.27K | -15.29M |
| Investing Cash Flow | -18.59K | -3.00M | -281.30K | -1.50M | -376.72K |
| Financing Cash Flow | 10.53M | 22.48M | -2.42M | 1.46M | 21.27M |
SurgePays Technical Analysis
Negative
2.73
Price Trends
0.69
Negative
0.97
Negative
1.72
Negative
Market Momentum
-0.04
Negative
39.53
Neutral
34.57
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 above the 20-day moving average (MA) of 0.57, above the 50-day MA of 0.69, and above the 200-day MA of 1.72, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 39.53 is Neutral, neither overbought nor oversold. The STOCH value of 34.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SURG.
SurgePays Risk Analysis
SurgePays disclosed 20 risk factors in its most recent earnings report. SurgePays reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
SurgePays Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $47.86M | 7.70 | 4.81% | ― | 12.37% | 615.79% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
49 Neutral | $41.51M | -2.80 | -11.23% | ― | -18.57% | 38.84% | |
48 Neutral | $26.30M | -0.87 | 137.78% | ― | -19.19% | 67.48% | |
47 Neutral | $6.67M | 14.90 | -5.54% | ― | 125.00% | ― | |
46 Neutral | $30.12M | -6.95 | -15.63% | ― | -8.52% | -105.92% | |
42 Neutral | $13.28M | -0.41 | 356.16% | ― | 55.81% | 30.17% |
* Communication Services Sector Average
SURG
SurgePays
0.53
-2.66
-83.49%
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SurgePays Corporate Events
Delistings and Listing ChangesPrivate Placements and FinancingRegulatory Filings and Compliance
SurgePays Faces Nasdaq Noncompliance Amid Debt-for-Equity Swap
Negative
Mar 24, 2026
On March 18 and March 23, 2026, SurgePays received notices from Nasdaq that it had fallen below the exchange’s $35 million minimum market value of listed securities and the $1.00 minimum bid price requirement. The company has 180 days from e...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.