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olivLaw · US equity research

SurgePays, Inc. SURG

Telephone Communications (No Radiotelephone) · SIC 4813 · Vertical: Telephone Communications (No Radiotelephone) (SIC 4813)

0.15USD+0.98% · 1 dayClose 04 Nov 2026

SurgePays is a fintech company and mobile virtual network operator that sells prepaid wireless services and financial products through its network of neighborhood stores and digital channels, mainly to low-income and rural consumers. Revenue fell in 2025 after the ACP program ended, but in the first quarter of 2026 the company reported growth of 51 percent, led by its point of sale and prepaid segment, a shift that shows how much its development depends on new revenue channels.

At the close of 04 Nov 2026, SurgePays, Inc. (SURG) stock was 0.15 USD (+0.98% on the day), with market capitalisation 8.2 m USD, beta 0.81, 52-week range 0.12–2.85 USD. Latest reported quarter (Q2 2026): revenue of 16.2 m USD (+40.7% YoY), net income of 1.3 m USD, diluted EPS 0.05 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
8.2 m USD
shares as of 19 Aug 2026
P/E (TTM)
unavailable
Diluted EPS TTM -1.51 · TTM to 30 Jun 2026
E/P (TTM)
-980.50%
TTM to 30 Jun 2026
Dividend yield
unavailable
Beta (2y)
0.81
Volatility (1y) 127%
52-week range
0.122.85

Price history

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Technical reading

RSI (14)
53.4
neutral
Bollinger (20, 2)
0.11 – 0.17
in the upper half of the band · %B 0.75 · band width 44.2%
SMA 50 / 200
0.15 / 0.49
mixed trend
MACD (12, 26, 9)
0.00 / -0.00
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month+6.6%−1.1%+7.6 pp—
3 months−30.7%−0.5%−30.3 pp—
6 months−71.6%+4.4%−76.0 pp—
Year to date−90.7%+12.3%−103.1 pp—
1 year−93.8%+13.5%−107.3 pp−10.6%
3 years−96.8%+76.4%−173.2 pp+20.5%
5 years−95.2%+63.7%−158.9 pp—
Max drawdown (1y)
−95.9%
11 Nov 2025 → 19 Oct 2026
Max drawdown (5y)
−98.7%
12 Feb 2024 → 19 Oct 2026
Compound annual growth (5y)
−45.5%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q2 2026 · 30 Jun 2026

Revenue
16.2 m USD
+40.7% YoY
Net income
1.3 m USD
unavailable YoY
Diluted EPS
0.05
unavailable YoY
net / operating
8.0% / 21.3%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ3 '24Q4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26
Revenue4.8 m9.6 m10.6 m11.5 m18.7 m16.2 m16.0 m16.2 m
Cost of revenue12.6 m20.8 m13.5 m14.2 m21.3 m18.6 m23.7 m16.6 m
SG&A6.4 m7.1 m4.6 m4.2 m4.4 m6.9 m3.5 m4.6 m
Operating income-14.3 m-20.1 m-7.6 m-6.8 m-7.0 m-12.8 m-11.2 m3.5 m
Depreciation & amortisation282.1 k81.4 k86.1 k66.4 k26.8 k26.8 k26.8 k26.8 k
Interest expense112.8 k192.1 k119.4 k279.3 k424.7 k1.2 m881.9 k1.0 m
Pre-tax income-14.3 m-20.1 m-7.6 m-7.1 m-7.5 m-13.9 m-12.1 m1.3 m
Income tax0 ≈-100.0 k——————
Net income-14.3 m-19.8 m-7.6 m-7.1 m-7.5 m-13.9 m-12.1 m1.3 m
Diluted EPS-0.73-1.01 ≈-0.38-0.36-0.38-0.67 ≈-0.510.05
Operating cash flow-13.3 m ≈-7.9 m-7.0 m-6.1 m ≈-4.6 m ≈-3.6 m-4.6 m-2.6 m ≈

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Fiscal years

Fiscal year20182019202020212022202320242025
Revenue15.2 m25.7 m54.4 m51.1 m121.5 m137.1 m60.9 m57.0 m
Revenue YoY+13.3%+68.9%+111.3%−6.2%+138.0%+12.8%−55.6%−6.4%
Net income-1.5 m-8.4 m-10.7 m-13.5 m-680.8 k20.6 m-45.7 m-36.1 m
Net income YoY−155.7%unavailableunavailableunavailableunavailableunavailable−321.8%unavailable
Diluted EPSunavailableunavailableunavailable-3.09-0.051.38-2.39-1.80
Diluted EPS YoYunavailableunavailableunavailableunavailableunavailableunavailable−273.2%unavailable
net %-10.1%-32.8%-19.7%-26.5%-0.6%15.0%-75.1%-63.3%
Free cash flow-1.3 m-6.8 m-4.3 m-15.3 m781.9 kunavailable-21.8 m-21.3 m

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2025 · 31 Dec 2025

Cash
1.7 m USD
Financial debt
32.2 m USD
Net debt
30.5 m USD
Equity
-15.4 m USD
Total assets
8.5 m USD
Debt / equity
unavailable
Current ratio
0.38x
ROE
unavailable
ROA
-222.0%
FCF margin
-37.4%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2023
137.1 m
2024
60.9 m
2025
57.0 m

SEC (XBRL)· 15 Apr 2026verified

Cost of revenue
2023
101.5 m
2024
75.2 m
2025
67.6 m

SEC (XBRL)· 15 Apr 2026verified

Gross profit
2023
35.6 m ≈
2024
-14.3 m ≈
2025
-10.6 m ≈

SEC (XBRL)· 15 Apr 2026derived

SG&A
2023
16.8 m
2024
27.5 m
2025
20.1 m

SEC (XBRL)· 15 Apr 2026verified

Operating income
2023
18.9 m
2024
-43.5 m
2025
-34.1 m

SEC (XBRL)· 15 Apr 2026verified

Depreciation & amortisation
2023
935.0 k
2024
942.5 k
2025
206.2 k

SEC (XBRL)· 15 Apr 2026verified

EBITDA
2023
19.8 m ≈
2024
-42.5 m ≈
2025
-33.9 m ≈

SEC (XBRL)· 15 Apr 2026derived

Interest expense
2023
—
2024
554.2 k
2025
2.0 m

SEC (XBRL)· 15 Apr 2026verified

Pre-tax income
2023
18.4 m
2024
-43.1 m
2025
-36.1 m

SEC (XBRL)· 15 Apr 2026verified

Income tax
2023
-2.3 m
2024
2.9 m
2025
—

SEC (XBRL)· 25 Mar 2025verified

Net income
2023
20.6 m
2024
-45.7 m
2025
-36.1 m

SEC (XBRL)· 15 Apr 2026verified

Diluted EPS
2023
1.38
2024
-2.39
2025
-1.80

SEC (XBRL)· 15 Apr 2026verified

Weighted average diluted shares
2023
14.9 m
2024
19.1 m
2025
20.1 m

SEC (XBRL)· 15 Apr 2026verified

Balance sheet · USD

Cash
2023
14.6 m
2024
11.8 m
2025
1.7 m

SEC (XBRL)· 15 Apr 2026verified

Receivables
2023
9.5 m
2024
3.0 m
2025
4.0 m

SEC (XBRL)· 15 Apr 2026verified

Inventories
2023
9.0 m
2024
1.8 m
2025
339.6 k

SEC (XBRL)· 15 Apr 2026verified

Current assets
2023
33.4 m
2024
17.9 m
2025
7.0 m

SEC (XBRL)· 15 Apr 2026verified

Property, plant & equipment, net
2023
361.8 k
2024
591.1 k
2025
403.5 k

SEC (XBRL)· 15 Apr 2026verified

Goodwill
2023
1.7 m
2024
3.3 m
2025
—

SEC (XBRL)· 25 Mar 2025verified

Intangibles (excl. goodwill)
2023
2.1 m
2024
1.5 m
2025
819.2 k

SEC (XBRL)· 15 Apr 2026verified

Total assets
2023
41.9 m
2024
24.0 m
2025
8.5 m

SEC (XBRL)· 15 Apr 2026verified

Accounts payable
2023
—
2024
—
2025
—

SEC (XBRL)· 30 Mar 2023verified

Short-term debt
2023
—
2024
—
2025
17.0 m

SEC (XBRL)· 20 May 2026verified

Long-term debt
2023
5.0 m
2024
4.0 m
2025
15.2 m

SEC (XBRL)· 20 May 2026verified

Current liabilities
2023
12.7 m
2024
6.1 m
2025
18.2 m

SEC (XBRL)· 19 Aug 2026verified

Total liabilities
2023
13.5 m
2024
8.7 m
2025
23.9 m

SEC (XBRL)· 15 Apr 2026verified

Equity
2023
28.4 m
2024
15.3 m
2025
-15.4 m

SEC (XBRL)· 15 Apr 2026verified

Cash flow · USD

Operating cash flow
2023
10.3 m
2024
-21.3 m
2025
-21.3 m

SEC (XBRL)· 15 Apr 2026verified

Capex
2023
—
2024
518.2 k
2025
18.6 k

SEC (XBRL)· 15 Apr 2026verified

Free cash flow
2023
—
2024
-21.8 m ≈
2025
-21.3 m ≈

SEC (XBRL)· 15 Apr 2026derived

Investing cash flow
2023
-281.3 k
2024
-3.0 m
2025
-18.6 k

SEC (XBRL)· 15 Apr 2026verified

Financing cash flow
2023
-2.4 m
2024
22.5 m
2025
10.5 m

SEC (XBRL)· 15 Apr 2026verified

Share repurchases
2023
—
2024
—
2025
—

SEC (XBRL)· 02 Apr 2021verified

Computed indicators

Growth

Revenue growth (YoY)
-6.4%
computed by olivLawFY 2025
Revenue CAGR 3Y
-22.3%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
0.9%
computed by olivLawFY 2020 → FY 2025
EBIT growth (YoY)
unavailable
the base of the ratio is not positive
Net income growth (YoY)
unavailable
the base of the ratio is not positive
Net income CAGR 3Y
unavailable
the base of the ratio is not positive
Net income CAGR 5Y
unavailable
the base of the ratio is not positive
EPS growth (YoY)
unavailable
the base of the ratio is not positive
EPS CAGR 3Y
unavailable
the base of the ratio is not positive
EPS CAGR 5Y
unavailable
input data missing
FCF growth (YoY)
unavailable
the base of the ratio is not positive

Profitability

Gross margin
-19.6%
computed by olivLawTTM to 30 Jun 2026
EBITDA margin
-40.8%
computed by olivLawTTM to 30 Jun 2026
EBIT margin
-41.0%
computed by olivLawTTM to 30 Jun 2026
Net margin
-47.9%
computed by olivLawTTM to 30 Jun 2026
FCF margin
-23.0%
computed by olivLawTTM to 30 Jun 2026

Returns

ROE
unavailable
equity is negative: the ratio is not economically meaningful (not by itself insolvency; usually the result of buybacks)
ROA
-262.6%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROIC
unavailable
equity is negative: buybacks shrink the invested capital and ROIC would come out large without meaning anything
ROCE
unavailable
insufficient data
Payout ratio (EPS)
unavailable
input data missing
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
35.0 m USD
computed by olivLawbalance sheet at 30 Jun 2026
Net debt / EBITDA
unavailable
insufficient data
Debt / equity
unavailable
equity is negative: the ratio is not economically meaningful (not by itself insolvency; usually the result of buybacks)
Interest coverage
-7.7x
computed by olivLawTTM to 30 Jun 2026

Liquidity

Current ratio
0.2x
computed by olivLawbalance sheet at 30 Jun 2026
Quick ratio
0.2x
computed by olivLawbalance sheet at 30 Jun 2026
Cash ratio
0.1x
computed by olivLawbalance sheet at 30 Jun 2026

Cash

Operating cash flow
-15.4 m USD
computed by olivLawTTM to 30 Jun 2026
Capital expenditure
18.6 k USD
computed by olivLawFY 2025
Free cash flow
-15.4 m USD
computed by olivLawTTM to 30 Jun 2026
FCF conversion
unavailable
insufficient data
Cash conversion
unavailable
insufficient data

Efficiency

Days sales outstanding
12 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Days inventory outstanding
6 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Days payables outstanding
unavailable
input data missing
Cash conversion cycle
unavailable
input data missing

Market and valuation

Market capitalisation
8.2 m USD
computed by olivLawbalance sheet at 30 Jun 2026
Enterprise value
43.2 m USD
computed by olivLawbalance sheet at 30 Jun 2026
Market cap / net income TTM
unavailable
insufficient data
P/E (TTM)
unavailable
insufficient data
Earnings yield
-980.5%
computed by olivLawTTM to 30 Jun 2026
P/B
unavailable
equity is negative: the ratio is not economically meaningful (not by itself insolvency; usually the result of buybacks)
P/S
0.1x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
EV/EBITDA
unavailable
insufficient data
EV/EBIT
unavailable
insufficient data
EV/Sales
0.6x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
P/FCF
unavailable
the base of the ratio is not positive
FCF yield
-188.5%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero
Shareholder yield (distributions)
unavailable
input data missing

1 indicators that do not apply to the sector.

Valuation

olivLaw classification

Insufficient data
What is missing
  • indicators available: 5 of at least 6
  • score weight coverage: 33.3% of at least 60%
  • valuation methods computed: 0 of at least 1

A scoring methodology on indicators and valuation, not investment advice.

Closing price

0.15 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 8.2 m USD

Key indicators

Market capitalisation
8.2 m USD
computed by olivLawbalance sheet at 30 Jun 2026
P/E (TTM)
unavailable
insufficient data
P/B
unavailable
equity is negative: the ratio is not economically meaningful (not by itself insolvency; usually the result of buybacks)
EV/EBITDA
unavailable
insufficient data
ROE
unavailable
equity is negative: the ratio is not economically meaningful (not by itself insolvency; usually the result of buybacks)
Net margin
-47.9%
computed by olivLawTTM to 30 Jun 2026
Revenue growth (YoY)
-6.4%
computed by olivLawFY 2025
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero

Coverage and freshness

33/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 30 Jun 2026
Latest balance sheet date: 30 Jun 2026
Share count (cover of the latest filing), as of: 19 Aug 2026
Source: SEC (XBRL)published 19 Aug 2026
verified 1857derived 153

Score by group

33% · Insufficient data

Estimated value range

unavailable — no valuation method could be computed

Valuation assumptions are editorial choices, not measured; beta is not measured.

Valuation methods

  • DCF (discounted cash flow)unavailable · the base of the ratio is not positive
  • Peers: EV/EBITDAunavailable · the base of the ratio is not positive
  • Peers: P/Eunavailable · the base of the ratio is not positive
  • Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption

no valuation method could be computed

Multiple comparisons use the SIC vertical: Telephone Communications (No Radiotelephone) (SIC 4813)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Insufficient data

Minimum-evidence gate: indicators available: 5 of at least 6; score weight coverage: 33.3% of at least 60%; valuation methods computed: 0 of at least 1

FactorValueScoreWeight used
ROIC · Qualityunavailableunavailable—
Net margin · Quality-47.9%0 (vs peers)19%
FCF conversion · Qualityunavailableunavailable—
Revenue CAGR 3Y · Growth-22.3%0 (on a fixed band)25%
EPS CAGR 3Y · Growthunavailableunavailable—
Net debt / EBITDA · Balance sheetunavailableunavailable—
Interest coverage · Balance sheet-7.7x0 (on a fixed band)19%
Current ratio · Balance sheet0.2x0 (on a fixed band)13%
P/E (TTM) · Valuationunavailableunavailable—
EV/EBITDA · Valuationunavailableunavailable—
FCF yield · Valuation-188.5%0 (on a fixed band)25%
Shareholder yield (distributions) · Returnsunavailableunavailable—
Payout ratio (FCF) · Returnsunavailableunavailable—

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet0/100 · 2/3 factors with a value
  • Growth· partial0/100 · 1/2 factors with a value
  • Quality· partial0/100 · 1/3 factors with a value
  • Returns· partialunavailable · 0/2 factors with a value
  • Valuation· partial0/100 · 1/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

SURGEPAYS, INC. (SURG). Latest full fiscal year: 2025; data up to 2026-06-30.

Figures computed from the financial statements: revenue 57.0 m USD in 2025; YoY growth -6.4%; net margin -47.9%.

Valuation cannot be computed from the available data.

Insufficient data for a verdict (indicators available: 5 of at least 6; score weight coverage: 33.3% of at least 60%; valuation methods computed: 0 of at least 1).

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

No signal among the computed factors. That is not an absence of risk: factors without data were not assessed, and business risks (margins, inventory, demand) are in the source-based analysis.

What contradicts it

  • Net margin: -47.9%
  • Revenue CAGR 3Y: -22.3%
  • Interest coverage: -7.7x
  • Current ratio: 0.2x
  • FCF yield: -188.5%

Not assessed (insufficient data or a ratio without meaning): ROIC, FCF conversion, EPS CAGR 3Y, Net debt / EBITDA, P/E (TTM), EV/EBITDA, Shareholder yield (distributions), Payout ratio (FCF).

Versus the vertical median

Telephone Communications (No Radiotelephone) (SIC 4813) · same industry (4-digit SIC) · compared with 20 companies

Multiples and returns vs the median

P/E
—
vertical median 11.8x
EV/EBITDA
—
vertical median 3.8x
P/S
0.1x
vertical median 1.1x
below median (−89.3%)
P/B
—
vertical median 1.3x
ROE
—
vertical median 10.5%
Net margin
-47.9%
vertical median 8.4%
below median (−667.8%)
EBIT margin
-41.0%
vertical median 7.3%
below median (−662.1%)
Revenue YoY
-6.4%
vertical median 2.7%
below median (−334.3%)
Net debt/EBITDA
—
vertical median 0.4x
Dividend yield
—
vertical median 0.4%

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
AMXAmerica Movil Sab De Cv1,508.4 bn1,107.56.8%3.2%−11.2%+8% / +38%
VZVerizon Communications Inc.191.4 bn11.815.4%11.8%+2.5%+12% / +20%
TAt&T Inc.147.1 bn11.810.5%10.2%+2.7%−16% / +32%
LUMNLumen Technologies, Inc.4.6 bn——-5.8%−5.4%−45% / +241%
TDSTelephone And Data Systems, Inc.4.1 bn11.48.2%33.2%−5.3%−11% / +83%
ATEXAnterix Inc.1.5 bn22.227.9%933.0%+7.8%+278% / +138%
UNITUniti Group Inc.1.3 bn1.7666.9%30.4%+91.5%−14% / −41%
SHENShenandoah Telecommunications Company575.2 m—-4.4%-10.2%+9.1%−5% / −53%
ATNIAtn International, Inc.397.3 m2.432.2%23.2%−0.2%+22% / −15%
CXDOCrexendo, Inc.174.7 m43.65.6%4.5%+12.0%−25% / +78%
NXPLNextPlat Corp21.8 m—-43.1%-17.8%−17.8%+34% / −47%
IQSTIQSTEL Inc.9.0 m—-56.0%-2.2%+11.9%−80% / −94%
SURGSurgepays, Inc.8.2 m——-47.9%−6.4%−94% / −97%
CTGGQwest Corp0—-15.8%-40.1%−13.8%unavailable / unavailable
TIMBTim S.A.——17.1%16.2%+4.6%−22% / +3%
TEOTelecom Argentina SA——-2.4%-2.0%+53.0%−17% / +26%
BCEBce Inc.——32.5%26.6%+0.2%−10% / −46%
PHIPLDT Inc.——29.3%14.9%+2.8%−19% / −22%
KTKT Corporation——2.8%1.7%+0.4%+1% / +41%
IDTIDT Corporation—24.325.4%6.7%+5.4%+69% / +186%
TKCTurkcell Iletisim Hizmetleri A S——10.8%11.7%+14.6%−15% / −5%

1- and 3-year price returns: for SURG from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
3 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
5 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
What moves the 3-year price the most

    AI analysis

    AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

    In brief

    SurgePays is a fintech company and mobile virtual network operator that sells prepaid wireless services and financial products through its network of neighborhood stores and digital channels, mainly to low-income and rural consumers. Revenue fell in 2025 after the ACP program ended, but in the first quarter of 2026 the company reported growth of 51 percent, led by its point of sale and prepaid segment, a shift that shows how much its development depends on new revenue channels.

    SWOT

    Strengths

    • The company has an extensive network of partner stores and infrastructure already in place, allowing it to activate new services quickly.
    • Growth in the point of sale and prepaid segment shows that revenue diversification is starting to produce results.
    • Customer acquisition costs have fallen after bringing marketing in-house, supporting operating efficiency.

    Weaknesses

    • Reliance on public funding for Lifeline programs makes revenue vulnerable to government decisions.
    • Gross margins in the MVNO segment remain negative and operating losses continued into 2026.
    • Liabilities and payment obligations have grown considerably, and stockholders' equity is negative.

    Opportunities

    • New wholesale contracts and distributor partnerships could expand transaction volume through the existing network.
    • In-store advertising and loyalty platforms could generate additional revenue without large incremental costs.
    • Rural and underserved communities remain segments with steady demand and limited competition.

    Threats

    • Elimination or reduction of Lifeline funding could seriously affect revenue and operational stability.
    • Larger competitors with greater financial resources could cut prices and pressure margins.
    • FCC regulatory changes could restrict the operating model or raise compliance costs.

    Risks

    • Liquidity and debthigh

      The company has low cash and large payment obligations, which could limit its ability to fund growth without new equity or debt.

    • Dilution from share issuancesmedium

      Shares issued for services, convertible notes and the at-the-market program could dilute existing shareholders.

    • Litigation and legal costsmedium

      The company is involved in several legal proceedings whose outcomes are hard to predict and could involve significant damages.

    • Integration of acquisitions and partnershipslow

      Integrating acquired businesses or new partnerships, including with Alpha Modus, could face operational and financial difficulties.

    Investment thesis

    What would need to be true (bull case)

    • If the point of sale and prepaid segment keeps growing, revenue diversification could reduce dependence on public programs.
    • Wholesale contracts and the HERO platform could generate recurring revenue on a broader base than retail alone.
    • Lower acquisition costs and reduced overhead could improve margins if the trend is sustained.

    What would break the thesis

    • If Lifeline funding were reduced, the company could lose an important share of revenue without a fast enough alternative.
    • Payment obligations and negative stockholders' equity could limit financial flexibility and could force further share issuances.
    • Negative margins in the MVNO segment could persist if volumes do not grow fast enough.

    What to watch

    • Gross margin trend in the MVNO segment and return to positive resultslate 2026
    • Contribution of HERO platform wholesale revenue after customer launchesQ3 2026
    • Trend in debt levels and operating cash flowQ3 2026
    • Status of Lifeline program funding and the number of eligible subscribers2027

    Products, market & competition

    AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

    The business

    SurgePays, Inc. is a wireless and point of sale technology company serving underserved and value-conscious consumers through a combination of retail distribution and digital channels such as ProgramBenefits.com 1. It provides mobile connectivity, financial technology services and transaction processing, and its revenue comes from recurring wireless services, transaction fees and other value-added services 1. According to first quarter 2026 results, wireless subscriber lines surpassed 200,000 across the LinkUp Mobile and Torch Wireless brands 3.

    Segments

    MVNO Telecommunications

    This segment includes subsidized Lifeline services, which partly replaced the ACP program that ended in 2024, and non-subsidized prepaid services under the LinkUp Mobile brand 1. MVNO segment revenue fell from 43,450,244 dollars in 2024 to 13,453,150 dollars in 2025 1.

    Point of Sale and prepaid services

    The segment processes prepaid top-ups, SIM activations and financial transactions for partner stores and became the company's largest revenue source, at 43,509,771 dollars in 2025 1. It also includes the ClearLine solution and the Managed Marketing Services in-store advertising platform 1.

    HERO platform and wholesale

    The HERO platform provides SIM provisioning, billing and network access to third-party providers without direct carrier agreements, and contracts signed in the first quarter of 2026 are expected to contribute to third quarter 2026 revenue 3.

    Market context

    The company targets approximately 138 million subprime consumers in the United States, a segment with limited access to traditional banking and telecommunications services 3. The prepaid segment is forecast to expand at a 5.2 percent compound annual growth rate through 2030, while roughly 18 percent of the population is rural and remains underserved 1.

    Trends

    • End of the ACP programheadwind

      Federal ACP funding ended and the company lost a major revenue source, so its strategy now depends on Lifeline and prepaid sales 1. If Lifeline funding were reduced, the impact on revenue could be significant.

    • Growth in prepaid services through storestailwind

      Demand for top-ups and prepaid services through the neighborhood store network has grown, and the point of sale segment rose 71 percent in the first quarter of 2026 3.

    • Digital customer acquisitiontailwind

      Cost per lead fell by about 28 percent after subscriber acquisition moved to an in-house marketing team, which could support growth if conversion holds 3.

    • Regulation and government fundingmixed

      Changes in FCC regulation or in public program funding could quickly alter demand and operating conditions, creating a mixed effect on the outlook.

    Competitive position

    SurgePays competes with national wireless carriers, other mobile virtual network operators, financial technology companies and traditional prepaid service distributors 1. Competition is based on price, service quality, distribution reach and customer experience, and larger competitors may have greater financial resources 1.

    • National wireless carriers

      Larger competitors with greater financial and operational resources, named only generically in the source

    • Other MVNOs and MVNEs

      Companies offering similar wireless services, sometimes focused on niche markets or regions

    • Financial technology companies

      Competing providers of financial services to credit-constrained and underbanked consumers

    • Traditional prepaid service distributors

      Networks selling top-ups and cards through stores, competing for the same distribution space

    News & filings

    In the press

    No news in our archive over the last 180 days.

    SEC filings

    Sources

    1. [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / SurgePays, Inc. · 15 Apr 2026
    2. [2] Form 10-Q, quarter ended 2026-06-30 · SEC / SurgePays, Inc. · 19 Aug 2026
    3. [3] Form 8-K, results release (exhibit 99.1) · SEC / SurgePays, Inc. · 20 May 2026

    Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.