Third quarter 2025 revenue totaled approximately $18.7 million, an increase of 292% year-over-year and 62% sequentially
Company is reiterating revenue guidance for 2026 of $225 million
Conference call today at 5:00 p.m. ET
BARTLETT, Tenn., Nov. 12, 2025 (GLOBE NEWSWIRE) -- SurgePays, Inc. (Nasdaq: SURG) ("SurgePays" or the "Company"), a wireless and fintech technology company connecting subprime and underserved consumers to essential mobile and financial services, today announced revenue growth of 292% year-over-year and 62% sequentially to $18.7 million for the third quarter ended September 30, 2025. The Company is reiterating revenue guidance of $225 million for 2026.
"The 2025 third quarter represented an important inflection point for our multi-channel growth platform, which yielded revenue growth of 292% year-over-year and 62% sequentially," said Brian Cox, President and CEO. "Each of our revenue channels are synergistic, not isolated initiatives, that together strengthen with every subscriber, transaction, and retailer added to our ecosystem. We believe our strength lies in our ability to combine cutting-edge technology with a nationwide retail distribution network, bringing telecom and fintech products directly to underserved communities where people live and shop. This powerful combination of technology and retail provides us with a sustainable competitive advantage, positioning us as a long-term leader in a large, total addressable market that is very difficult to replicate. Today, the platform and development of distribution, technology, and new products are well established, and will support higher margin revenue streams for years of sustained growth. This synergy generates recurring revenue, provides competitive advantages that are extremely difficult to replicate, and lays the foundation for significant year-over-year growth."
Mr. Cox concluded, "As we continue to scale our platform and expand our leadership across the subprime and underserved markets, we are confident in our ability to deliver strong growth and achieve our 2026 revenue guidance of $225 million."
Third Quarter 2025 and Subsequent Operational Highlights:
-- Torch Wireless, SurgePays' Lifeline-subsidized brand, continued to be a
key growth driver during the 2025 third quarter, with revenue growth to
$5.6 million, with over 125,000 subscribers.
-- LinkUp Mobile, the Company's affordable prepaid wireless brand, was fully
launched in April and surpassed 95,000 recurring active subscribers by
the end of the third quarter. This growth was driven by expanded retail
distribution, targeted marketing, and competitive pricing, reinforcing
SurgePays' ability to capture market share in the prepaid wireless
segment.
-- "Phone-in-a-Box" kits and prepaid services through major distribution
partners, including HT Hackney, which services more than 40,000 retail
locations. The Company's near-term goal is to expand to 100,000 retail
locations operating on the SurgePays platform, driven by both organic
growth and new distribution agreements.
-- MVNE $(HERO)$ Wholesale: Onboarded three MVNO partners to date, with
additional partnerships in progress. This high-margin business model
benefits from minimal incremental cost and offers significant scalability
through direct carrier access.
-- Growth Marketing & Data Partnerships: Relaunched legacy DigitizeIQ assets
into a modern intake and monetization engine focused on underserved
consumer marketing, designed to lower subscriber acquisition cost, and
add high-margin revenue streams.
Third Quarter 2025 Financial Highlights:
-- Net Revenue totaled $18.7 million, compared to $4.8 million in Q3 2024,
an increase of 292% year-over-year and 62% sequentially.
-- Gross Profit loss improved to $(2.6) million, compared to $(7.8) million
in Q3 2024.
-- SG&A improved to $4.2 million, compared to $6.2 million in Q3 2024, an
improvement of 32.5% year-over-year.
-- As of November 10, 2025, SurgePays had 20,431,549 shares of common stock
outstanding.
2026 Guidance:
SurgePays reaffirms its 2026 revenue guidance of $225 million, supported by continued Lifeline subscriber growth, expansion of prepaid/retail distribution, additional MVNE partners, and ClearLine monetization.
Third Quarter 2025 Financial Results Conference Call
Date: Wednesday, November 12, 2025
Time: 5:00 p.m. ET
Dial-in Number: 1-888-506-0062
Access Code: 350444
Webcast: https://ir.surgepays.com/company-events
Replay of the webcast will be available for a one year period.
About SurgePays, Inc.
SurgePays, Inc. $(SURG)$ is a wireless, fintech, and point-of-sale technology company focused on connecting subprime and underserved communities to essential mobile and financial services. The company operates its own wireless brands and proprietary point-of-sale platform, which is deployed nationwide in thousands of retail locations, enabling SIM activations, top-ups, and digital financial transactions.
Building on its nationwide wireless and fintech network, SurgePays is expanding into data-driven marketing and digital partnerships designed to convert verified consumer engagement into recurring, high-margin revenue streams. The company is uniquely positioned to grow across both retail and online channels while evolving into a leading data intelligence and digital marketplace platform serving America's underserved population.
Visit www.SurgePays.com for more information.
Cautionary Note Regarding Forward-Looking Statements
This press release includes express or implied statements that are not historical facts and are considered forward-looking within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. Forward-looking statements involve substantial risks and uncertainties and generally relate to future events or our future financial or operating performance. These statements may include projections, guidance, or other estimates regarding revenue, cash flow, business growth, market expansion, or customer acquisition. In some cases, you can identify forward-looking statements by the following words: "may," "will," "could," "would," "should," "expect," "intend," "plan," "anticipate," "believe," "estimate," "predict," "project," "potential," "continue," "ongoing," "attempting," or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words.
Although we believe the expectations reflected in these forward-looking statements, such as regarding our revenue guidance for 2026, revenue, margins, expectations for customer demand, and profitability potential are reasonable, these statements relate to future events or our future operational or financial performance and involve known and unknown risks, uncertainties, and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control, including, without limitation, the assumption that the Company will be able to obtain high-margin recurring revenues, statements about our revenue guidance for 2026 and future financial performance, including our revenue, cash flows, costs of revenue and operating expenses; our anticipated growth; and our predictions about our industry and customer demand. These include, but are not limited to, our ability to scale our prepaid wireless business, transition ACP subscribers to Lifeline, maintain our MVNE partnerships, and achieve financial targets. The forward-looking statements contained in this release are also subject to other risks and uncertainties, including those more fully described in our filings with the Securities and Exchange Commission ("SEC"), including in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. The forward-looking statements in this press release speak only as of the date on which the statements are made. We undertake no obligation to update, and expressly disclaim the obligation to update, any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.
Investor Relations Contact:
Valter Pinto, Managing Director
KCSA Strategic Communications
212.896.1254
SurgePays@KCSA.com
SurgePays, Inc. and Subsidiaries
Consolidated Balance Sheets
September 30, 2025 December 31, 2024
(Unaudited) (Audited)
Assets
---------------------------
Current Assets
Cash and cash equivalents $ 2,514,862 $ 11,790,389
Restricted cash - line of
credit reserve 224,947 -
Restricted cash - held in
escrow - 1,000,000
Accounts receivable - net 4,291,222 3,000,209
Inventory 1,917,617 1,781,365
Prepaids and other 278,532 298,360
Total Current Assets 9,227,180 17,870,323
Property and equipment -
net 430,352 591,088
Other Assets
Note receivable 176,851 176,851
Intangibles - net 982,606 1,472,962
Goodwill 3,300,000 3,300,000
Operating lease - right of
use asset - net 377,912 564,781
Total Other Assets 4,837,369 5,514,594
Total Assets $ 14,494,901 $ 23,976,005
Liabilities and
Stockholders' Equity
(Deficit)
---------------------------
Current Liabilities
Accounts payable and
accrued expenses $ 8,335,599 $ 3,929,195
Accounts payable and
accrued expenses - related
party 200,240 192,845
Operating lease liability 227,005 248,069
Notes payable 1,822,426 -
Note payable - related
party 1,968,468 1,689,367
Convertible notes payable -
net 5,120,308 -
Total Current Liabilities 17,674,046 6,059,476
Long Term Liabilities
Note payable - related
party 762,328 1,866,288
Notes payable - SBA
government 461,248 469,396
Operating lease liability 157,183 319,232
Convertible notes payable -
net 1,864,576 -
Total Long Term Liabilities 3,245,335 2,654,916
Total Liabilities 20,919,381 8,714,392
Stockholders' Equity
(Deficit)
Common stock, $0.001 par
value, 500,000,000 shares
authorized 20,761,231 and
20,431,549 shares issued
and 20,065,278 and
20,068,929 shares
outstanding, at September
30, 2025 and December 31,
2024, respectively 20,765 20,435
Additional paid-in capital 78,363,849 76,842,878
Treasury stock - at cost
(695,953 and 362,620
shares, respectively) (1,631,966) (631,967)
Accumulated deficit (83,122,177) (60,915,427)
Stockholders' equity
(deficit) (6,369,529) 15,315,919
Non-controlling interest (54,951) (54,306)
Total Stockholders' Equity
(Deficit) (6,424,480) 15,261,613
Total Liabilities and
Stockholders' Equity
(Deficit) $ 14,494,901 $ 23,976,005
SurgePays, Inc. and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
For the Three Months Ended For the Nine Months Ended
September 30, September 30,
2025 2024 2025 2024
Revenues $18,680,317 $ 4,769,697 $ 40,775,913 $ 51,284,531
Costs and
expenses
Cost of revenues 21,276,771 12,602,057 48,969,378 54,377,300
General and
administrative
expenses 4,353,684 6,448,402 13,147,086 20,312,185
Total costs and
expenses 25,630,455 19,050,459 62,116,464 74,689,485
Loss from
operations (6,950,138) (14,280,762) (21,340,551) (23,404,954)
Other income
(expense)
Interest expense (424,665) (112,814) (756,518) (362,119)
Loss on lease
termination - (194,862) - (194,862)
Interest income - 183,537 63,913 183,537
Other income - 239 7,140 637,107
Unrealized gains
- investments - 38,292 - 38,292
Dividends,
interest and
other income -
investments - 86,626 - 86,626
Gain on
investment in
CenterCom - - - 33,864
Amortization of
debt discount (114,492) - (181,379) -
Total other
income
(expense) -
net (539,157) 1,018 (866,844) 422,445
Net loss before
provision for
income taxes (7,489,295) (14,279,744) (22,207,395) (22,982,509)
Provision for
income tax
benefit
(expense) - - - (2,970,000)
Net loss
including
non-controlling
interest (7,489,295) (14,279,744) (22,207,395) (25,952,509)
Non-controlling
interest (227) (4,397) (645) (35,992)
Net loss
available to
common
stockholders $(7,489,068) $(14,275,347) $(22,206,750) $(25,916,517)
Earnings per
share -
attributable to
common
stockholders
Basic $ (0.38) $ (0.73) $ (1.11) $ (1.37)
Diluted $ (0.38) $ (0.73) $ (1.11) $ (1.37)
Weighted average
number of shares
outstanding -
attributable to
common
stockholders
Basic 19,839,159 19,689,010 19,931,668 18,940,689
Diluted 19,839,159 19,689,010 19,931,668 18,940,689
SurgePays, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
For the Nine Months Ended September 30,
2025 2024
Operating activities
Net loss - including
non-controlling
interest $ (22,207,395) $ (25,952,509)
Adjustments to reconcile
net loss to net cash
used in operations
Depreciation and
amortization 669,682 693,880
Amortization of
right-of-use assets 186,869 70,857
Amortization of debt
discount/debt issue
costs 181,379 -
Amortization of
internal use
software development
costs - 167,121
Stock issued for
services 25,830 411,740
Recognition of stock
based compensation -
unvested shares -
related parties 526,125 6,237,976
Recognition of share
based compensation -
options - related
party - 6,196
Interest expense
adjustment - SBA
loans - 19,750
Right-of-use asset
lease payment
adjustment true up - (148,584)
Gain on equity method
investment -
CenterCom - (33,864)
Cash paid for lease
termination - (212,175)
Loss on lease
termination - net - 194,862
Changes in operating
assets and liabilities
(Increase) decrease
in
Accounts
receivable (1,291,013) 8,022,078
Inventory (136,252) 683,456
Prepaids and other 19,828 (150,746)
Deferred income
taxes - net - 2,835,000
Increase (decrease)
in
Accounts payable
and accrued
expenses 4,471,860 (5,765,152)
Accounts payable
and accrued
expenses -
related party 7,395 (86,857)
Accrued income
taxes payable - (470,000)
Deferred revenue - (20,000)
Operating lease
liability (183,113) 84,257
Net cash used in
operating activities (17,728,805) (13,412,714)
Investing activities
Purchase of leasehold
improvements (18,590) -
Advances made for
construction-in-process
costs - (518,189)
Purchase of investments
- net - (10,068,506)
Net cash used in
investing activities (18,590) (10,586,695)
Financing activities
Proceeds from stock
issued for cash 649,383 17,249,994
Proceeds from exercise
of common stock
warrants - 8,799,257
Cash paid as direct
offering costs - common
stock (58,880) (1,395,000)
Proceeds from issuance
of notes payable 2,274,698 -
Proceeds from issuance
of convertible notes
payable 6,700,000 -
Cash paid as direct
offering costs -
convertibles note
payable (602,500) -
Repayments of loans -
related party (824,859) (1,132,074)
Repayments on notes
payable (657,826) -
Repayments on notes
payable - SBA
government (8,148) (8,138)
Treasury shares
repurchased (share
buy-backs) - (485,131)
Net cash provided by
financing activities 7,471,868 23,028,908
Net decrease in cash,
cash equivalents and
restricted cash (10,275,527) (970,501)
Cash, cash equivalents
and restricted cash -
beginning of period 12,790,389 14,622,060
Cash, cash equivalents
and restricted cash -
end of period $ 2,514,862 $ 13,651,559
Supplemental disclosure
of cash flow
information
Cash paid for interest $ 264,510 $ 372,579
Cash paid for income tax $ - $ -
Supplemental disclosure
of non-cash investing
and financing
activities Reserve deposit - amount withheld from lender $ 224,947 $ - Treasury stock reacquired in connection with convertible debt financing $ 999,999 $ - Debt discount - convertible notes payable - original issue discount $ 70,000 Debt discount - convertible notes payable - issuance of common stock $ 85,800 Debt discount - convertible notes payable - issuance of warrants $ 227,587 Stock issued in settlement of accounts payable $ 65,456 $ - Reclassification of accrued interest - related party to note payable - related party $ - $ 498,991 Exercise of warrants - cashless $ - $ 41 Termination of ROU operating lease assets and liabilities $ - $ 309,826 Goodwill (ClearLine Mobile, Inc.) $ - $ 2,500,000 Right-of-use asset obtained in exchange for new operating lease liability $ - $ 98,638
(END) Dow Jones Newswires
November 12, 2025 09:20 ET (14:20 GMT)
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