SurgePays (SURG) AI Stock Analysis

• Market Cap: $50.26M
• Dividend Yield: N/A
• Average Volume (3M): 144.31K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.44
• Revenue Growth: -67.73%
• EPS Growth: -2274.78%
• Country: US
• Employees: 130
• Sector: Communication Services
• Sector Strength: 92
• Industry: Software - Application
• EPS (TTM): -0.36
• Shares Outstanding: 20,431,550
• 10 Day Avg. Volume: 256,627
• 30 Day Avg. Volume: 144,305
• 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: 1.34
• Enterprise Value/Revenue: 1.85
• Enterprise Value/Gross Profit: -2.73
• Enterprise Value/Ebitda: -1.42
• 1Y Price Target: $9.00
• Price Target Upside: 261.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 45 Neutral
• Price Target: $2.00 ▼(-19.68% Downside)

SurgePays faces significant financial challenges with declining revenues, negative profit margins, and strained cash flow, which heavily impact its overall score. The technical analysis indicates bearish momentum, further weighing down the score. Although the earnings call provided positive guidance and strategic growth initiatives, these are overshadowed by the current financial and technical weaknesses. The valuation is also a concern with a negative P/E ratio, reflecting unprofitability.

Positive Factors

Market Opportunity

There are ~100 million adults in the U.S. that are underbanked, representing a significant market opportunity for SurgePays’s products.

Revenue Guidance

SURG initiated revenue guidance of $75M-$90M for 2025, up 35% at the midpoint.

Stock Valuation

The stock is significantly undervalued especially when ACP returns as expected, with a raised 12-month price target to $9.00.

Negative Factors

Earnings

SurgePays Inc reported a net loss per share significantly below expectations due to continued service provision to ex-customers from the expired Affordable Connectivity Program without receiving revenue.

Program Expiration Impact

The expiration of the Affordable Connectivity Program created a significant revenue gap for SurgePays Inc as it was the source of 97% of the company's gross profit in 2023.

Revenue Forecast

Analyst's next-12-month revenue forecast of about $120M is well below reaffirmed guidance of over $200M.

SurgePays Business Overview & Revenue Model

Company Description

SurgePays, Inc. (SURG) is a technology and telecommunications company that focuses on providing financial and prepaid products to underserved communities. The company operates in sectors such as fintech, telecommunications, and e-commerce, offering a range of services that include prepaid wireless plans, mobile broadband, and financial services products. SurgePays aims to bridge the digital divide by delivering affordable and accessible solutions to its customers, primarily through its proprietary software platform and network of retail partners.

How the Company Makes Money

SurgePays generates revenue primarily through its multi-faceted business model that includes selling prepaid wireless and broadband services, facilitating mobile top-ups, and offering financial services products. The company partners with independent retailers and convenience stores to distribute its products, earning a commission or fee for each transaction processed through its platform. Additionally, SurgePays may engage in partnerships with telecom operators and financial service providers to expand its product offerings and enhance its distribution network. These collaborations and its focus on underserved markets contribute significantly to its revenue streams.

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: Neutral
• Last Price: 2.49
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SURG, the sentiment is Neutral. The current price of 2.49 is below the 20-day moving average (MA) of 2.62, below the 50-day MA of 2.85, and above the 200-day MA of 2.20, indicating a neutral trend. The MACD of -0.15 indicates Positive momentum. The RSI at 43.43 is Neutral, neither overbought nor oversold. The STOCH value of 41.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SURG.

SurgePays Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$43.67B	3.93	-13.01%	4.05%	1.89%	-42.25%
IDN	51 Neutral	$105.20M	―	-5.20%	―	7.13%	-99.15%
DUOT	51 Neutral	$120.37M	―	-274.34%	―	172.93%	34.97%
INLX	50 Neutral	$41.61M	―	-15.90%	―	-2.63%	-1080.14%
SURG	45 Neutral	$50.26M	―	-210.94%	―	-67.73%	-2274.78%
PHUN	37 Underperform	$53.09M	―	-21.38%	―	―	―
NUKK	―	$34.94M	0.25		―	―	―

SurgePays Corporate Events

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.