SurgePays (SURG) AI Stock Analysis

• Market Cap: $24.14M
• Dividend Yield: N/A
• Average Volume (3M): 289.77K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.36
• Revenue Growth: -39.75%
• EPS Growth: -89.61%
• Country: US
• Employees: 130
• Sector: Communication Services
• Sector Strength: 97
• Industry: Software - Application
• EPS (TTM): -0.38
• Shares Outstanding: 23,433,037
• 10 Day Avg. Volume: 672,045
• 30 Day Avg. Volume: 289,769
• 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 Cap: 1.22
• Enterprise Value/Revenue: 0.59
• Enterprise Value/Gross Profit: -1.52
• Enterprise Value/Ebitda: -0.73
• 1Y Price Target: $9.75
• Price Target Upside: 257.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: $1.00 ▼(-63.37% Downside)

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.

Proprietary point-of-sale platform

Owning POS software that drives recurring transactions enhances stickiness with retail partners and enables margin-accretive fintech fees. Platform control supports upsells, operational data capture, and gradual monetization, strengthening long-term revenue diversification and unit economics.

Strategic partnerships & retail distribution

Commercial integration deals and broader retail reach expand customer acquisition channels and payment capabilities. These structural partnerships can amplify scale, lower customer-acquisition costs, and embed SurgePays in underserved payment ecosystems, supporting durable growth beyond a single channel.

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.

Large operating cash burn

Persistent negative operating and free cash flow forces dependence on external financing for growth and working capital. This limits ability to invest in distribution or product improvements, creates execution risk if markets tighten, and makes multi-quarter strategy vulnerable to funding gaps.

Negative unit economics & margins

Deeply negative gross and net margins imply current offerings lose money at scale absent structural changes. If unit economics don't improve, revenue growth can worsen losses; sustainable profitability depends on pricing, cost structure, or product mix shifts over ensuing quarters.

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 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 company earns money from retail commissions and partnerships with various mobile network operators and financial service providers. SurgePays also benefits from the growing demand for financial inclusion products, positioning itself as a key player in serving underserved demographics, which further enhances its earning potential.

SurgePays Financial Statement Overview

Summary

Despite strong TTM revenue growth, profitability and cash generation are severely pressured: deeply negative gross margin, very large net losses, heavy operating/free-cash-flow burn, and a weakened balance sheet with negative equity and higher debt—raising execution and financing risk.

Income Statement

TTM (Trailing-Twelve-Months) results show severe profitability pressure: revenue grew strongly (+38.2%), but gross profit is deeply negative (gross margin about -38.6%), with very large operating losses and a net margin around -83.4%. Profitability also deteriorated versus 2024 (already loss-making with negative gross profit), marking a sharp reversal from 2023 when the company was solidly profitable (about 26.0% gross margin and 15.0% net margin). Strength is top-line growth in the latest period; weakness is the magnitude and persistence of losses and negative unit economics in recent periods.

Balance Sheet

The balance sheet weakened materially in TTM (Trailing-Twelve-Months): stockholders’ equity is negative (about -$6.4M) while debt rose to roughly $12.4M, indicating elevated financial strain and limited balance-sheet flexibility. This contrasts with 2023–2024 when equity was positive and leverage was moderate (debt-to-equity around 0.19–0.30). The main positive is that total debt is not extremely large in absolute dollars, but the negative equity position and very poor returns in the latest period meaningfully increase risk.

Cash Flow

Cash generation is a key concern: TTM (Trailing-Twelve-Months) operating cash flow is about -$25.6M and free cash flow is about -$25.6M, worsening versus 2024 (still materially negative). While 2023 showed positive operating cash flow (~$10.3M) and positive free cash flow (~$10.0M), the business has since swung back to heavy cash burn, implying higher reliance on financing and less room to invest without dilution or added leverage. A relative positive is that free cash flow tracks net income closely (both deeply negative), but the absolute cash burn level is the dominant issue.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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

• Technical Analysis Sentiment: Negative
• Last Price: 2.73
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 1.50, above the 50-day MA of 1.64, and above the 200-day MA of 2.50, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 28.12 is Positive, neither overbought nor oversold. The STOCH value of 15.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SURG.

SurgePays Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
NTWK	58 Neutral	$39.28M	81.82	1.40%	―	7.70%	-36.01%
HKIT	52 Neutral	$57.43M	-23.56	-6.17%	―	-47.44%	-318.95%
LPSN	47 Neutral	$37.23M	-0.11	-605.44%	―	-23.03%	-107.34%
INLX	45 Neutral	$37.00M	-20.59	-15.71%	―	-7.76%	-291.41%
SURG	44 Neutral	$24.14M	-0.49	-313.72%	―	-39.75%	-89.61%
PHUN	43 Neutral	$33.51M	-2.81	-18.69%	―	―	―

SurgePays Corporate Events

SurgePays Announces Underwritten Public Equity Offering Agreement

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 45‑day option for the underwriter to purchase up to an additional 300,000 shares to cover any over‑allotments; closing was expected on January 22, 2026, when the company would deliver the shares and issue representative’s warrants equal to 3% of the total shares sold, exercisable six months after closing and running for five years. The financing, conducted under an existing shelf registration and accompanied by standard indemnification, lock‑up provisions for directors and officers, and a 180‑day restriction on new issuances without underwriter consent, is intended to fund expansion of SurgePays’ Lifeline business and general corporate purposes, while a concurrent prospectus supplement on January 20, 2026 updated the capacity of its at‑the‑market program with Titan Partners Group, further positioning the company to tap equity markets for ongoing capital needs.

The most recent analyst rating on (SURG) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on SurgePays stock, see the SURG Stock Forecast page.

SurgePays Appoints Interim CFO Under Outsourced Finance Model

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 agreement with MACK Financial Solutions, under which MACK will provide outsourced CFO, accounting, financial reporting and public-company compliance support, with Pullano serving part-time at a minimum of 40 hours per month. Compensation for the arrangement totals $10,000 per month, split evenly between Pullano’s CFO duties and other services from MACK, and includes standard indemnification protections for Pullano. The agreement can be terminated by either party on 60 days’ notice or immediately in the event of an uncured material breach, underscoring a flexible, outsourced finance model as SurgePays navigates its executive finance transition.

The most recent analyst rating on (SURG) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on SurgePays stock, see the SURG Stock Forecast page.

SurgePays Announces CFO Transition and Board Leadership Changes

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, Evers will serve as a consultant from January 1 to June 30, 2026, advising on the company’s finances, accounting, SEC filings, and the transition of his former CFO responsibilities, in exchange for $250,000 paid in twelve monthly installments and reimbursement of health insurance premiums through December 31, 2026; the agreement also includes customary non-disclosure, non-disparagement, and release-of-claims provisions. In related governance changes, director Richard Schurfeld resigned from the Board and all committee roles for personal reasons effective January 2, 2026, and on January 5, 2026, existing director David May was appointed to the Audit, Compensation, and Nominating and Corporate Governance Committees, and named chair of the Nominating and Corporate Governance Committee, helping maintain continuity of board oversight after Schurfeld’s departure.

The most recent analyst rating on (SURG) stock is a Buy with a $9.75 price target. To see the full list of analyst forecasts on SurgePays stock, see the SURG Stock Forecast page.