Surgepays Inc (SURG)
NASDAQ:SURG
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SurgePays
(NASDAQ:SURG)
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Rating:44Neutral
Price Target:
$1.00
▼(-63.37% Downside)
Action:ReiteratedDate:01/23/26
The score is held down primarily by weak financial performance (large losses, heavy cash burn, and negative equity) and a bearish technical setup. These are only partially offset by positive earnings-call momentum (rapid revenue growth, improving expense discipline, and upbeat guidance), while valuation remains constrained by loss-making results and the equity raise adds dilution/financing risk.
Positive Factors
Rapid revenue & subscriber growth
Sustained, outsized top-line and subscriber expansion indicates product-market fit in prepaid wireless channels. Growing scale across Lifeline and retail-fed brands can lower per-subscriber costs, increase ARPU stability, and create a durable recurring revenue base over the next several quarters.
Negative Factors
Negative shareholders' equity
Negative equity and rising debt materially weaken financial flexibility and increase refinancing risk. Over a multi-quarter horizon this constrains capital for network or product investment, raises covenants and funding costs, and increases reliance on dilutive equity raises to sustain operations.
Read all positive and negative factors
Positive Factors
Negative Factors
Rapid revenue & subscriber growth
Sustained, outsized top-line and subscriber expansion indicates product-market fit in prepaid wireless channels. Growing scale across Lifeline and retail-fed brands can lower per-subscriber costs, increase ARPU stability, and create a durable recurring revenue base over the next several quarters.
Read all positive factors
SurgePays (SURG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.35M
Dividend YieldN/A
Average Volume (3M)140.97K
Price to Earnings (P/E)―
Beta (1Y)0.32
Revenue Growth-39.75%
EPS Growth-89.61%
CountryUS
Employees130
SectorCommunication Services
Sector Strength97
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.38
Shares Outstanding23,433,037
10 Day Avg. Volume117,204
30 Day Avg. Volume140,967
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)2.22
Price to Sales (P/S)0.56
P/FCF Ratio-1.56
Enterprise Value/Market Cap1.40
Enterprise Value/Revenue0.48
Enterprise Value/Gross Profit-1.25
Enterprise Value/Ebitda-0.60
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.06
Revenue Forecast (FY)$132.23M
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 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 compan...
SurgePays Key Performance Indicators (KPIs)
SurgePays Earnings Call Summary
Earnings Call Date:Nov 12, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Apr 01, 2026
Earnings Call Sentiment Positive
The earnings call reflected a strong overall performance, with significant revenue growth and subscriber expansion across multiple channels. Strategic partnerships and improved financial metrics further bolster the company's outlook. However, the net loss and reduced cash position remain challenges.Positive Updates
Significant Revenue Growth
Third quarter 2025 revenue totaled $18.7 million, an increase of 292% year over year and over 62% sequentially.
Negative Updates
Net Loss and Cash Position
Reported net loss and loss per share for 2025 were $7.5 million and negative 38¢ per share. Cash, cash equivalents, and investment balances were $2.5 million compared to $11.8 million as of December 31, 2024.
Read all updates
Q3-2025 Updates
Positive
Negative
Significant Revenue Growth
Third quarter 2025 revenue totaled $18.7 million, an increase of 292% year over year and over 62% sequentially.
Read all positive updates
Company Guidance
During the SurgePays, Inc. Third Quarter 2025 Earnings Conference Call, the company highlighted substantial revenue growth and provided optimistic guidance for the future. Revenue for Q3 2025 reached approximately $18.7 million, marking a significant 292% increase year over year and a 62% rise sequentially. The growth was driven by the MVNO brand Torch Wireless under the Lifeline program and increased point of sale and prepaid services revenue, which alone totaled $13.1 million, a 177% year-over-year increase. The company also reported a narrowed gross profit loss of $2.6 million compared to $7.8 million in 2024. SG&A expenses decreased by 32.5% year over year to $4.2 million. SurgePays provided revenue guidance of $225 million for 2026, aiming to capitalize on their diversified growth strategy, which combines telecom and fintech products with a nationwide retail distribution network. The company emphasized the importance of their proprietary point of sale software, which drives recurring revenue and offers a competitive advantage. The management expressed confidence in their strategic investments and highlighted the potential for continued growth, particularly through new customer acquisition channels and partnerships, positioning themselves for sustainable long-term shareholder value.SurgePays Financial Statement Overview
Summary
Income Statement
12
Very Negative
Balance Sheet
20
Very Negative
Cash Flow
14
Very Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 50.37M | 60.88M | 137.14M | 121.54M | 51.06M | 54.41M |
| Gross Profit | -19.42M | -14.32M | 35.64M | 13.47M | 6.17M | 2.47M |
| EBITDA | -40.48M | -41.22M | 20.08M | 2.39M | -5.10M | -5.40M |
| Net Income | -42.02M | -45.73M | 20.62M | -680.76K | -13.53M | -10.72M |
Balance Sheet | ||||||
| Total Assets | 14.49M | 23.98M | 41.93M | 34.00M | 19.50M | 7.33M |
| Cash, Cash Equivalents and Short-Term Investments | 2.74M | 11.79M | 14.62M | 7.04M | 6.28M | 674.00K |
| Total Debt | 12.38M | 4.59M | 5.44M | 8.11M | 7.68M | 7.67M |
| Total Liabilities | 20.92M | 8.71M | 13.52M | 28.89M | 15.95M | 18.05M |
| Stockholders Equity | -6.37M | 15.32M | 28.25M | 4.99M | 3.55M | -10.73M |
Cash Flow | ||||||
| Free Cash Flow | -25.65M | -21.83M | 10.01M | 94.69K | -15.34M | -4.33M |
| Operating Cash Flow | -25.63M | -21.31M | 10.29M | 793.27K | -15.29M | -4.33M |
| Investing Cash Flow | 7.56M | -3.00M | -281.30K | -1.50M | -376.72K | 8.35K |
| Financing Cash Flow | 6.93M | 22.48M | -2.42M | 1.46M | 21.27M | 4.65M |
SurgePays Technical Analysis
Negative
2.73
Price Trends
0.99
Negative
1.45
Negative
2.13
Negative
Market Momentum
-0.05
Negative
33.26
Neutral
20.11
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 0.84, above the 50-day MA of 0.99, and above the 200-day MA of 2.13, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 33.26 is Neutral, neither overbought nor oversold. The STOCH value of 20.11 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 |
|---|---|---|---|---|---|---|---|
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | $38.88M | 36.21 | 5.21% | ― | 7.70% | -36.01% | |
52 Neutral | $1.61M | -11.03 | -5.54% | ― | -47.44% | -318.95% | |
45 Neutral | $33.71M | -3.27 | -11.94% | ― | ― | ― | |
45 Neutral | $32.47M | -34.26 | -15.63% | ― | -7.76% | -291.41% | |
44 Neutral | $17.35M | -1.86 | -994.64% | ― | -39.75% | -89.61% | |
44 Neutral | $31.34M | -0.25 | 132.32% | ― | -23.03% | -107.34% |
* Communication Services Sector Average
SURG
SurgePays
0.74
-1.05
-58.66%
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SurgePays Corporate Events
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
SurgePays Announces Underwritten Public Equity Offering Agreement
Positive
Jan 22, 2026
On January 20, 2026, SurgePays entered into an underwriting agreement with R.F. Lafferty Co. for an underwritten public offering of 2 million shares of common stock at $1.25 per share, for anticipated gross proceeds of about $2.5 million, with a ...
Business Operations and StrategyExecutive/Board Changes
SurgePays Appoints Interim CFO Under Outsourced Finance Model
Neutral
Jan 14, 2026
On January 14, 2026, SurgePays’ board appointed Chelsea Pullano as interim Chief Financial Officer, filling the vacancy created by the earlier separation with former CFO Tony Evers. The move is tied to a January 9, 2026 master services agree...
Executive/Board Changes
SurgePays Announces CFO Transition and Board Leadership Changes
Neutral
Jan 7, 2026
On January 1, 2026, SurgePays, Inc. entered into a separation agreement with its Chief Financial Officer, Anthony Evers, following the previously announced non-renewal of his employment agreement effective December 31, 2025. Under the agreement, 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.