Want to see SURG full AI Analyst Report?
Top Page
SurgePays
(NASDAQ:SURG)
Select Model
Select Model
Rating:43Neutral
Price Target:
$0.12
▼(-36.11% Downside)
Action:Reiterated
Date:10/15/26
The score is primarily weighed down by weak financial performance (deep losses, negative cash flow, and recent negative equity) and bearish technicals (price below all key moving averages with negative MACD). Corporate actions provide some offset via improved equity compliance and strategic initiatives, but ongoing listing/regulatory risks and an unhelpful loss-making valuation profile keep the overall score low.
Positive Factors
Scalable wireless platform
Opening GrowthLine to partner brands could extend SurgePays’ wireless infrastructure beyond its own customer acquisition efforts. A growing partner base may increase subscriber scale and platform utilization while allowing partners to focus spending on marketing and customer acquisition.
Negative Factors
Deep profitability deterioration
Revenue growth has not translated into profitable operations, with negative gross profit and very large operating and net losses in the latest period. This suggests pricing or cost pressures are absorbing growth and weakens the company’s ability to fund expansion from internally generated earnings.
Read all positive and negative factors
Positive Factors
Negative Factors
Scalable wireless platform
Opening GrowthLine to partner brands could extend SurgePays’ wireless infrastructure beyond its own customer acquisition efforts. A growing partner base may increase subscriber scale and platform utilization while allowing partners to focus spending on marketing and customer acquisition.
Read all positive factors
SurgePays Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Measures segment-level profit after operating expenses, indicating which parts of the business generate sustainable operating earnings, which require ongoing investment, and how overhead allocation affects overall profitability.
Measures segment-level profit after operating expenses, indicating which parts of the business generate sustainable operating earnings, which require ongoing investment, and how overhead allocation affects overall profitability.
Data provided by:
The Fly
The FlySurgePays (SURG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.21M
Dividend YieldN/A
Average Volume (3M)8.84M
Price to Earnings (P/E)―
Beta (1Y)0.74
Revenue Growth83.91%
EPS Growth38.02%
CountryUS
Employees125
SectorCommunication Services
Sector Strength97
IndustrySoftware - Application
Share Statistics
EPS (TTM)-1.52
Shares Outstanding52,908,424
10 Day Avg. Volume3,616,345
30 Day Avg. Volume8,839,979
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)-2.18
Price to Sales (P/S)0.59
P/FCF Ratio-1.57
Enterprise Value/Market Cap3.44
Enterprise Value/Revenue0.37
Enterprise Value/Gross Profit-1.89
Enterprise Value/Ebitda-0.70
Forecast
1Y Price Target
$3.75Price Target Upside1983.33% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.7
Revenue Forecast (FY)$65.00M
SurgePays Business Overview & Revenue Model
Company Description
SurgePays, Inc. operates as a financial technology and telecommunications enterprise dedicated to serving the underbanked communities across the United States. A core component of its strategy is a blockchain-powered platform that transforms local...
How the Company Makes Money
SurgePays generates revenue primarily from (1) telecommunications services and (2) fintech/payment and distribution-related services. In telecom, it earns money by selling prepaid wireless plans and related services to end customers (often through...
SurgePays Earnings Call Summary
Earnings Call Date:Apr 14, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Nov 17, 2026
Earnings Call Sentiment Neutral
The call mixed clear operational progress and cost discipline with material liquidity and transition risks. Highlights include demonstrated scalability (notably Q2->Q3 +62.6%), significant cost cuts (G&A and SG&A down ~27%), improved gross loss (~25.9%) and operating loss (~26.6%), strong point-of-sale/prepaid growth (+$26.1M YoY) and diversification across multiple revenue channels with a >9,000 location footprint. Lowlights include a full-year revenue decline (~6.4%), a Q3->Q4 sequential revenue decline (~13.4%) driven by reduced acquisition spend, low year-end cash (~$1.7M) and a working capital deficit (~$16.2M), substantial operating cash use (~$21.3M for 2025) and continued dependence on financing (~$10.5M raised). Management outlined actions to lower monthly burn to ~$250K–$300K and emphasized showing progress in 2026, leaving the call balanced between meaningful improvements and notable liquidity/execution risks.Positive Updates
Demonstrated scalability in 2025
Revenue progression showed Q1 $10.6M -> Q2 $11.5M (+8.5%) -> Q3 $18.7M (+62.6% vs Q2), proving the company can scale quickly when capital is deployed.
Negative Updates
Full-year revenue decline
Total revenue for 2025 was approximately $57.0M compared to $60.9M in 2024, a decline of approximately 6.4%, primarily driven by the expected drop in subsidized revenue after the Affordable Connectivity Program expiration.
Read all updates
Q4-2025 Updates
Positive
Negative
Demonstrated scalability in 2025
Revenue progression showed Q1 $10.6M -> Q2 $11.5M (+8.5%) -> Q3 $18.7M (+62.6% vs Q2), proving the company can scale quickly when capital is deployed.
Read all positive updates
Company Guidance
Management did not give formal forward-looking numeric guidance but outlined expectations and operational targets and provided many metrics: FY2025 revenue was ~ $57.0M (Q4 $16.2M; Q1 $10.6M; Q2 $11.5M; Q3 $18.7M), point-of-sale and Prepaid Services grew by ~ $26.1M YoY, cost of revenue was ~ $67.6M (vs $75.2M in 2024) with gross loss improving to ~ $10.6M (vs $14.3M), total G&A fell to ~ $20.1M (from $27.5M) and SG&A ex D&A to ~ $19.2M (from $26.3M), operating loss was ~ $30.7M (vs $41.8M), net cash used in operations was ~ $21.3M, net cash provided by financing was ~ $10.5M, year‑end cash was ~ $1.7M, working capital was a deficit of ~ $16.2M (vs a $11.8M surplus at 12/31/24), Q4 included ~ $2.3M of nonrecurring items, and management estimates current monthly cash burn of ~$250k–$300k as of end‑Q1 2026; they expect improving gross margins, continued cost discipline, and selective capital deployment to scale revenue across multiple channels (LinkUp Mobile, subsidized wireless, wholesale MVNE, POS fintech) while emphasizing they are not providing formal guidance.SurgePays Financial Statement Overview
Summary
Income Statement
12
Very Negative
Balance Sheet
8
Very Negative
Cash Flow
10
Very Negative
| Breakdown | TTM | Mar 2026 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 67.06M | 56.96M | 60.88M | 137.14M | 121.54M | 51.06M |
| Gross Profit | -13.11M | -10.59M | -14.32M | 35.64M | 13.47M | 6.17M |
| EBITDA | -35.34M | -32.95M | -41.22M | 20.08M | 2.39M | -5.10M |
| Net Income | -32.11M | -36.07M | -45.73M | 20.62M | -680.76K | -13.53M |
Balance Sheet | ||||||
| Total Assets | 9.24M | 8.52M | 23.98M | 41.93M | 34.00M | 19.50M |
| Cash, Cash Equivalents and Short-Term Investments | 2.38M | 1.73M | 11.79M | 14.62M | 7.04M | 6.28M |
| Total Debt | 17.88M | 13.58M | 4.59M | 5.44M | 8.11M | 7.68M |
| Total Liabilities | 29.99M | 23.92M | 8.71M | 13.52M | 28.89M | 15.95M |
| Stockholders Equity | -20.69M | -15.40M | 15.32M | 28.25M | 4.99M | 3.55M |
Cash Flow | ||||||
| Free Cash Flow | -15.39M | -21.31M | -21.83M | 10.01M | 94.69K | -15.34M |
| Operating Cash Flow | -15.39M | -21.29M | -21.31M | 10.29M | 793.27K | -15.29M |
| Investing Cash Flow | 0.00 | -18.59K | -3.00M | -281.30K | -1.50M | -376.72K |
| Financing Cash Flow | 13.37M | 10.53M | 22.48M | -2.42M | 1.46M | 21.27M |
SurgePays Technical Analysis
Neutral
0.18
Price Trends
0.16
Negative
0.25
Negative
0.55
Negative
Market Momentum
>-0.01
Negative
48.71
Neutral
66.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SURG, the sentiment is Neutral. The current price of 0.18 is above the 20-day moving average (MA) of 0.14, above the 50-day MA of 0.16, and below the 200-day MA of 0.55, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.71 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $92.03M | 30.69 | 7.84% | ― | 12.53% | -0.08% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
47 Neutral | $39.39M | -2.96 | -13.83% | ― | 14.63% | 11.10% | |
44 Neutral | $18.43M | -6.40 | -26.38% | ― | -5.53% | -56.77% | |
43 Neutral | $7.21M | -0.09 | 193.81% | ― | 83.91% | 38.02% |
* Communication Services Sector Average
SURG
SurgePays
0.14
-2.77
-95.33%
NTWK
Netsol Technologies
7.70
3.20
71.11%
PHUN
Phunware
1.93
-0.76
-28.44%
INLX
Intellinetics
4.10
-5.79
-58.54%
SurgePays Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
SurgePays Updates Investor Presentation to Enhance Transparency
Positive
Oct 15, 2026
On or about October 15, 2026, SurgePays, Inc. added an updated investor presentation, dated October 2026, to its corporate website under the Investors section, providing refreshed information about the company and its business for current and pros...
Delistings and Listing ChangesRegulatory Filings and Compliance
SurgePays Granted Nasdaq Extension to Regain Bid Compliance
Negative
Sep 29, 2026
On September 28, 2026, SurgePays received notice from Nasdaq granting the company an additional 180 days, until March 22, 2027, to regain compliance with the exchange’s minimum $1.00 bid price requirement, after an initial cure period that e...
Business Operations and StrategyDelistings and Listing ChangesM&A TransactionsRegulatory Filings and ComplianceStock Split
SurgePays Completes Asset Sale, Strengthens Nasdaq Compliance
Positive
Sep 10, 2026
On September 7, 2026, SurgePays agreed to sell its ClearLine engagement platform, media network, related technology, and GPOX Wireless business to ClearLine Apps, a subsidiary of GPO Plus, for $27.5 million payable in 25 million shares of GPO Plus...
Business Operations and Strategy
SurgePays Forms Joint Venture Entity for Smartphone Program
Neutral
Sep 3, 2026
On September 2, 2026, SurgePays, Inc. formed LWP-SURGE, LLC in Wyoming as the proposed operating entity for a joint venture with All Prepaid, LLC, which does business as LowWeeklyPayments. LWP-SURGE is intended to run a smartphone rent-to-own prog...
Business Operations and Strategy
SurgePays Forms Redline Wireless Joint Venture for Expansion
Positive
Aug 5, 2026
On August 3, 2026, SurgePays formed Redline Wireless Group, a Wyoming joint venture with one of the largest wireless master distribution organizations in the U.S., owning 51% and consolidating it as a controlled subsidiary. Redline is structured w...
Legal ProceedingsRegulatory Filings and Compliance
SurgePays Subsidiary Torch Wireless Challenges FCC Forfeiture Notice
Negative
Jul 29, 2026
In July 2026, SurgePays subsidiary Torch Wireless received a Notice of Apparent Liability for Forfeiture from the FCC, prompting inaccurate online claims that the company was refusing to cooperate with regulators. SurgePays states that Torch engag...
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.