SurgePays Reports 2024 Financial Results and Issues Revenue Guidance of Over $200 Million in Next 12 Months
PR Newswire
BARTLETT, Tenn., March 25, 2025
Completed AT&T integration positions company for its most aggressive growth phase to date with projected positive cash flow from operations in 2025
BARTLETT, Tenn., March 25, 2025 /PRNewswire/ -- SurgePays, Inc. (Nasdaq: SURG) ("SurgePays" or the "Company"), a wireless and point of sale technology company, today announced its financial results for the year ended December 31, 2024, and is issuing guidance of over $200 million in revenue over the next 12 months and positive cash flow from operations before the end of 2025, following the successful integration and official launch with AT&T.
Brian Cox, Chairman and CEO, commented, "We built the infrastructure. Now we are scaling. With AT&T integration complete and LinkUp Mobile launching nationally, SurgePays is positioned for the most aggressive revenue growth phase in our history."
2024 Operational Highlights:
-- Nationwide Launch of LinkUp Mobile: SurgePays has begun its national
rollout of its retail prepaid wireless brand, LinkUp Mobile. The Company
expects monthly SIM card shipments of 250,000--300,000, driven by robust
demand from its retail distribution network of nearly 9,000 convenience
and community stores.
-- AT&T Integration Complete: In November 2024, SurgePays signed a
multi-year strategic agreement with AT&T to deliver full access to 4G LTE
and 5G wireless services across North America. As of April 1, 2025, the
integration is complete and live.
-- MVNE Wholesale Business Launch: SurgePays now offers wireless
infrastructure services, including SIM provisioning and billing, to other
wireless companies as a Mobile Virtual Network Enabler (MVNE). This
high-margin revenue channel is expected to scale rapidly.
-- Lifeline Subscriber Retention: Following the end of ACP funding,
SurgePays retained a portion of its wireless subscriber base and is
transitioning eligible customers to the federally supported Lifeline
program. Daily Lifeline enrollments are ongoing through the Company's
Torch Wireless brand.
-- POS Platform Growth: SurgePays' point-of-sale software platform, used in
thousands of retail locations, grew prepaid wireless top-up revenue over
400% from Q1 to Q2 2024. The POS platform is a critical distribution and
activation tool for both LinkUp Mobile and third-party services.
-- Leadership Expansion: The Company strengthened its leadership team with
the promotion of Mark Garner to Executive Vice President, and Allison
Seyler to VP of Sales.
2024 Financial Results:
2024 marked the end of the federally funded ACP era. As expected, revenue and gross profit were impacted. However, strategic investments made during this transition -- including AT&T integration, POS growth, and the development of our MVNE platform -- have built the foundation for 2025's goal to return to growth and profitability.
2025 Financial Guidance:
SurgePays expects first quarter 2025 revenue to remain consistent with Q4 2024. With the national launch of LinkUp Mobile and expanding MVNE partnerships, revenue is projected to exceed $200 million over the next 12 months and the Company anticipates achieving positive cash flow from operations before the end of 2025.
This guidance is based solely on the monetization of core MVNO and POS platforms already deployed. As these platforms scale -- both through direct customer acquisition and wholesale MVNE relationships -- we anticipate expanding both revenue and margins.
"We've earned the right to scale," added Mr. Cox. "The heavy lifting is behind us. Now we are focused on execution, revenue acceleration, and delivering long-term value to shareholders."
Fourth Quarter 2024 Results Conference Call:
SurgePays management will host a webcast today at 5 p.m. ET / 2 p.m. PT to discuss these results.
The live webcast of the call can be accessed on the Company's investor relations website at ir.surgepays.com, or by registering at the following link: Fourth Quarter Results Call.
Telephone access:
- U.S.: 888-506-0062
- International: 973-528-0011
- Participant Access Code: 937037
A telephone replay will be available approximately one hour following completion of the call until April 8, 2025.
Replay: 877-481-4010 (U.S.) or 919-882-2331 (Intl.)
Replay Passcode: 52151
About SurgePays, Inc.
SurgePays, Inc. is a wireless and point-of-sale $(POS.AU)$ technology company. SurgePays operates a unique ecosystem that blends prepaid wireless, government-subsidized mobile plans, and a point-of-sale software platform used in thousands of community retail stores. SurgePays is a platform -- built for stores in underserved communities, built to scale, and built for growth. Please 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 and profitability potential along with the statements under the heading 2025 Financial Guidance 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 revenue is projected to exceed $200 million over the next 12 months and the Company anticipates achieving positive cash flow from operations before the end of 2025, statements about our future financial performance, including our revenue, cash flows, costs of revenue and operating expenses; our anticipated growth; and our predictions about our industry. 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, 2023 and the to-be-filed 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.
SurgePays, Inc. and Subsidiaries
Consolidated Balance Sheets
December 31, December 31,
2024 2023
------------- -------------
Assets
Current Assets
Cash and cash equivalents $ 11,790,389 $ 14,622,060
Restricted cash - held in escrow 1,000,000 -
Accounts receivable - net 3,000,209 9,536,074
Inventory 1,781,365 9,046,594
Prepaids and other 298,360 161,933
------------ ------------
Total Current Assets 17,870,323 33,366,661
Property and equipment - net 591,088 361,841
Other Assets
Note receivable 176,851 176,851
Intangibles - net 1,472,962 2,126,470
Internal use software development
costs - net - 539,424
Goodwill 3,300,000 1,666,782
Investment in CenterCom - 464,409
Operating lease - right of use asset
- net 564,781 387,869
Deferred income taxes - net - 2,835,000
------------ ------------
Total Other Assets 5,514,594 8,196,805
------------ ------------
Total Assets $ 23,976,005 $ 41,925,307
============ ============
Liabilities and Stockholders'
Equity
-----------------------------------
Current Liabilities
Accounts payable and accrued
expenses $ 3,929,195 $ 6,439,120
Accounts payable and accrued
expenses - related party 192,845 1,048,224
Accrued income taxes payable - 570,000
Deferred revenue - 20,000
Operating lease liability 248,069 43,137
Note payable - related party 1,689,367 4,584,563
------------ ------------
Total Current Liabilities 6,059,476 12,705,044
Long Term Liabilities
Note payable - related party 1,866,288 -
Notes payable - SBA government 469,396 460,523
Operating lease liability 319,232 356,276
------------ ------------
Total Long Term Liabilities 2,654,916 816,799
Total Liabilities 8,714,392 13,521,843
------------ ------------
Stockholders' Equity
Common stock, $0.001 par value,
500,000,000 shares authorized
20,431,549 shares issued and
20,068,929 shares outstanding,
respectively, at December 31, 2024
14,403,261 shares issued and
outstanding at December 31, 2023 20,435 14,404
Additional paid-in capital 76,842,878 43,421,019
Treasury stock - at cost (362,620
and 0 shares, respectively) (631,967) -
Accumulated deficit (60,915,427) (15,186,203)
------------ ------------
Stockholders' equity 15,315,919 28,249,220
Non-controlling interest (54,306) 154,244
------------ ------------
Total Stockholders' Equity 15,261,613 28,403,464
------------ ------------
Total Liabilities and Stockholders'
Equity $ 23,976,005 $ 41,925,307
============ ============
SurgePays, Inc. and Subsidiaries
Consolidated Statements of Operations
For the Years Ended December 31,
------------------------------------
2024 2023
------------------- ---------------
Revenues $ 60,881,173 $ 137,141,832
Costs and expenses
Cost of revenues 75,205,372 101,499,341
General and administrative
expenses 27,458,152 16,777,107
--------------- --------------
Total costs and expenses 102,663,524 118,276,448
Income (loss) from operations (41,782,351) 18,865,384
--------------- --------------
Other income (expense)
Interest expense (554,200) (595,975)
Loss on lease termination -
net (194,863) -
Other income 636,868 -
Interest income 105,395 -
Realized gains - investments 13,613 -
Dividends, interest, and other
income - investments 355,549 -
Gain on investment in
CenterCom 33,864 110,203
Impairment loss - CenterCom (498,273) -
Impairment loss - internal use
software development costs (316,594) -
Impairment loss - goodwill (866,782) -
--------------- --------------
Total other income (expense) -
net (1,285,423) (485,772)
--------------- --------------
Net income (loss) before
provision for income taxes (43,067,774) 18,379,612
Provision for income tax
benefit (expense) (2,870,000) 2,265,000
--------------- --------------
Net income (loss) including
non-controlling interest (45,937,774) 20,644,612
Non-controlling interest (208,550) 26,709
--------------- --------------
Net income (loss) available to
common stockholders $ (45,729,224) $ 20,617,903
=============== ==============
Earnings per share -
attributable to common
stockholders
Basic $ (2.39) $ 1.45
=============== ==============
Diluted $ (2.39) $ 1.38
=============== ==============
Weighted average number of
shares outstanding -
attributable to common
stockholders
Basic 19,119,181 14,258,172
=============== ==============
Diluted 19,119,181 14,922,881
=============== ==============
SurgePays, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
For the Years Ended December 31,
------------------------------------
2024 2023
------------------- ---------------
Operating activities
Net income (loss) - including
non-controlling interest $ (45,937,774) $ 20,644,612
Adjustments to reconcile net
income (loss) to net cash
provided by (used in)
operations
Bad debt expense - 90,009
Depreciation and amortization 942,450 935,039
Amortization of right-of-use
assets 126,970 43,483
Amortization of internal use
software development costs 222,830 129,060
Impairment loss - CenterCom 498,273 -
Impairment loss - internal use
software development costs 316,594 -
Impairment loss - goodwill 866,782 -
Stock issued for services 411,740 1,290,024
Recognition of stock based
compensation - unvested
shares - related parties 6,752,706 529,534
Recognition of stock-based
compensation 1,602,997 -
Recognition of share based
compensation - options - 576,625
Recognition of share based
compensation - options -
related party 6,196 37,176
Realized gain in sale of
investments (13,613) -
Interest expense adjustment -
SBA loans 19,750 -
Right-of-use asset lease
payment adjustment true up (267,347) -
Gain on equity method
investment - CenterCom (33,864) (110,203)
Cash paid for lease
termination (212,175) -
Loss on lease termination -
net 194,863 -
Changes in operating assets
and liabilities
(Increase) decrease in
Accounts receivable 6,535,865 (395,718)
Inventory 7,265,229 2,139,648
Prepaids and other (136,427) (50,409)
Deferred income taxes - net 2,835,000 (2,835,000)
Increase (decrease) in
Accounts payable and accrued
expenses (2,509,925) 654,746
Accounts payable and accrued
expenses - related party (356,388) (680,497)
Accrued income taxes payable (570,000) 570,000
Installment sale liability -
net - (13,018,184)
Deferred revenue (20,000) (223,110)
Operating lease liability 148,665 (39,490)
--------------- --------------
Net cash provided by (used in)
operating activities (21,310,603) 10,287,345
--------------- --------------
Investing activities
Purchase of property and
equipment (518,189) -
Purchase of investments - net (10,159,444) -
Proceeds from sale of
investments 10,173,057 -
Cash paid for acquisition of
Clearline Mobile, Inc.
assets (2,500,000) -
Capitalized internal use
software development costs - (281,304)
--------------- --------------
Net cash used in investing
activities (3,004,576) (281,304)
--------------- --------------
Financing activities
Proceeds from stock issued for
cash 17,249,994 -
Proceeds from exercise of
common stock warrants 8,799,257 207,240
Cash paid as direct offering
costs (1,395,000) -
Repayments of loans - related
party (1,527,899) (1,017,385)
Repayments on notes payable - (1,595,167)
Repayments on notes payable -
SBA government (10,877) (14,323)
Treasury shares repurchased
(share buy-backs) (631,967) -
--------------- --------------
Net cash provided (used in) by
financing activities 22,483,508 (2,419,635)
--------------- --------------
Net increase (decrease) in
cash, cash equivalents and
restricted cash (1,831,671) 7,586,406
Cash, cash equivalents and
restricted cash - beginning
of year 14,622,060 7,035,654
--------------- --------------
Cash, cash equivalents and
restricted cash - end of
year $ 12,790,389 $ 14,622,060
=============== ==============
Supplemental disclosure of
cash flow information
Cash paid for interest $ 470,208 $ 222,326
=============== ==============
Cash paid for income tax $ - $ -
=============== ==============
Supplemental disclosure of
non-cash investing and
financing activities
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 $ 327,139
=============== ==============
Right-of-use asset obtained in
exchange for new operating
lease liability $ 664,288 $ -
=============== ==============
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SOURCE SurgePays
/CONTACT: Investor Contact: ir@surgepays.com; Media Contact: surgepays@feintuchpr.com, Henry Feintuch: 914-548-6924; Doug Wright: 201-952-6033
(END) Dow Jones Newswires
March 25, 2025 16:05 ET (20:05 GMT)
