SurgePays (SURG) AI Stock Analysis

• Market Cap: $59.81M
• Dividend Yield: N/A
• Average Volume (3M): 90.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.50
• Revenue Growth: -70.08%
• EPS Growth: -330.51%
• Country: US
• Employees: 130
• Sector: Communication Services
• Sector Strength: 76
• Industry: Software - Application
• EPS (TTM): -0.38
• Shares Outstanding: 20,411,549
• 10 Day Avg. Volume: 83,899
• 30 Day Avg. Volume: 90,058
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.67
• Enterprise Value/Revenue: 1.00
• Enterprise Value/Gross Profit: -1.58
• Enterprise Value/Ebitda: -0.78
• 1Y Price Target: $9.00
• Price Target Upside: 233.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 51 Neutral
• Price Target: $3.00 ▲(11.11% Upside)

SurgePays has potential growth opportunities highlighted by strategic partnerships and expansions, supported by recent financing. However, its financial performance is concerning, with declining revenues and profitability issues. The technical outlook is stable but cautious, and the valuation remains weak due to ongoing losses.

Positive Factors

Market Opportunity

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

Revenue Guidance

The company maintained strong 2025/26 revenue guidance of $200 million.

Negative Factors

Program Expiration

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.

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., 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 bodegas into tech-hubs for underbanked neighborhoods. The company offers voice and SMS text messaging services to subsidized and direct retail prepaid customers, as well as to low-income consumers. It also offers subsidized mobile broadband services to consumers in California, Colorado, Florida, Illinois, Maryland, Mississippi, Missouri, Nevada, New Jersey, Ohio, Oklahoma, Rhode Island, Tennessee, and Texas, as well as prepaid wireless plans. In addition, the company provides marketing business intelligence, plaintiff generation, and case load management solutions primarily to law firms in the mass tort industry. Further, it operates a bilingual operations center offering the Company with sales support, customer service, IT infrastructure design, graphic media, database programming, software development, revenue assurance, lead generation, and other various operational support services. The company is headquartered in Bartlett, Tennessee.

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. While some reductions in debt are positive, the company needs to address its operational inefficiencies and improve cash flow generation to stabilize its financial position.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	60.88M	137.14M	121.54M	51.06M	54.41M
Gross Profit	-14.32M	35.64M	13.47M	6.17M	2.47M
EBITDA	-41.22M	20.08M	2.39M	-5.23M	-5.40M
Net Income	-45.73M	20.62M	-680.76K	-18.80M	-16.90M
Balance Sheet
Total Assets	23.98M	41.93M	34.00M	19.50M	7.33M
Cash, Cash Equivalents and Short-Term Investments	11.79M	14.62M	7.04M	6.28M	674.00K
Total Debt	4.59M	5.44M	8.11M	7.68M	7.67M
Total Liabilities	8.71M	13.52M	28.89M	15.95M	18.05M
Stockholders Equity	15.32M	28.25M	4.99M	3.55M	-10.73M
Cash Flow
Free Cash Flow	-21.83M	10.01M	94.69K	-15.34M	-4.33M
Operating Cash Flow	-21.31M	10.29M	793.27K	-15.29M	-4.33M
Investing Cash Flow	-3.00M	-281.30K	-1.50M	-376.72K	8.35K
Financing Cash Flow	22.48M	-2.42M	1.46M	21.27M	4.65M

SurgePays Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.70
• 50DMA: Negative
• 100DMA: Positive
• 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 Positive. The current price of 2.7 is below the 20-day moving average (MA) of 2.93, below the 50-day MA of 2.94, and above the 200-day MA of 2.14, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 51.26 is Neutral, neither overbought nor oversold. The STOCH value of 33.83 is Neutral, 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
INLX	61 Neutral	$48.11M	―	-10.79%	―	3.21%	-550.35%
Sector *	56 Neutral	HK$63.39B	-0.68	-4.21%	5.27%	-2.16%	-18.87%
SURG	51 Neutral	$59.81M	―	-170.91%	―	-70.08%	-330.51%
IDN	51 Neutral	$98.83M	―	-4.57%	―	5.78%	54.19%
DUOT	48 Neutral	$83.75M	―	-189.13%	―	89.27%	26.30%
PHUN	37 Underperform	$54.06M	―	-19.87%	―	―	―
NUKK	―	$32.50M	0.29		―	―	―

SurgePays Corporate Events

SurgePays Confirms Directors and Ratifies Accounting Firm

On May 15, 2025, SurgePays, Inc. held its annual meeting of stockholders where approximately 69.86% of the company’s shares were represented, establishing a quorum. During the meeting, the election of five directors was confirmed, the selection of Rodefer Moss & Co., PLLC as the independent accounting firm was ratified, and the executive compensation was approved on a non-binding basis.

The most recent analyst rating on (SURG) stock is a Buy with a $9.50 price target. To see the full list of analyst forecasts on SurgePays stock, see the SURG Stock Forecast page.

SurgePays Secures $7M Convertible Note for Expansion

On May 12, 2025, SurgePays, Inc. entered into a $7 million senior secured convertible note agreement with an institutional shareholder to accelerate its growth strategy. The financing will support the nationwide launch of LinkUp Mobile and expand its MVNE wholesale business, with management projecting revenues to exceed $200 million over the next 12 months and achieving positive cash flow by the end of 2025.

The most recent analyst rating on (SURG) stock is a Buy with a $9.50 price target. To see the full list of analyst forecasts on SurgePays stock, see the SURG Stock Forecast page.