SurgePays (SURG) AI Stock Analysis

• Market Cap: $60.27M
• Dividend Yield: N/A
• Average Volume (3M): 142.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.40
• 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: 83,363
• 30 Day Avg. Volume: 142,880
• 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: 1.12
• Enterprise Value/Revenue: 1.85
• Enterprise Value/Gross Profit: -2.73
• Enterprise Value/Ebitda: -1.42
• 1Y Price Target: $2.50
• Price Target Upside: -15.25% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 47 Neutral
• Price Target: $2.50 ▼(-15.25% Downside)

SurgePays' overall stock score is primarily impacted by its challenging financial performance, with significant revenue volatility and cash flow issues. While the earnings call provided positive guidance and strategic initiatives, the negative valuation metrics and mixed technical indicators contribute to a lower score.

Positive Factors

Strategic Partnerships

The AT&T partnership enhances network reliability and strategic positioning, providing a competitive edge in telecommunications and expanding market reach.

Subscriber Growth

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

SG&A Expenses Reduction

Significant reduction in SG&A expenses improves operational efficiency, potentially leading to better profitability and financial health over the long term.

Negative Factors

Revenue Volatility

Revenue volatility and declining trends indicate challenges in maintaining stable income streams, which could affect long-term financial stability and growth prospects.

Cash Flow Constraints

Negative cash flow highlights inefficiencies and potential liquidity issues, limiting the company's ability to invest in growth and manage operations effectively.

Net Loss

Continued net losses reflect operational challenges and may hinder the company's ability to achieve profitability, affecting long-term financial health.

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: Positive
• Last Price: 2.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SURG, the sentiment is Positive. The current price of 2.95 is above the 20-day moving average (MA) of 2.71, above the 50-day MA of 2.78, and above the 200-day MA of 2.29, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 60.23 is Neutral, neither overbought nor oversold. The STOCH value of 80.52 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SURG.

SurgePays Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DUOT	52 Neutral	144.05M	-6.93	-219.87%	―	172.93%	34.97%
INLX	52 Neutral	54.33M	-29.61	-15.06%	―	-2.63%	-1080.14%
IDN	51 Neutral	107.00M	-113.62	0.00%	―	7.13%	-99.15%
SURG	47 Neutral	$60.27M	―	-210.94%	―	-67.73%	-2274.78%
PHUN	37 Underperform	55.51M	-3.82	0.00%	―	0.00%	0.00%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

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.