SurgePays Reports 23% Month-Over-Month Growth in Smartphone Rent-to-Own Program, Reaching $176,000 in July Retail Sales

Rhea-AI Summary

SurgePays (NASDAQ: SURG) reported continued momentum in its smartphone rent-to-own program with LowWeeklyPayments, with July retailer sales reaching approximately $176,000, a 23% month-over-month increase from June sales of $142,725. Since launching in April at about $1,500 in monthly retailer sales, the program has scaled to more than $176,000 while operating across essentially the same dealer footprint of fewer than 50 locations.

According to SurgePays, the performance has led management to evaluate the offering as a distinct revenue channel within its fintech platform and to initiate discussions with LowWeeklyPayments on a potential joint venture to support broader rollout across its independent retail dealer network. The next phase under consideration contemplates expanding the program to a much larger number of locations, with further updates to be provided as discussions progress.

Positive

• July program sales approximately $176,000, up 23% from June’s $142,725
• Rapid scale from about $1,500 in April monthly retailer sales to over $176,000
• Strong performance achieved across fewer than 50 participating dealer locations
• Management evaluating program as a distinct revenue channel within SurgePays’ fintech platform
• Joint venture discussions initiated with LowWeeklyPayments to support broader program expansion

Negative

• None.

News Explained

The program’s structure is that LowWeeklyPayments purchases devices from participating retailers, rents them to customers through weekly payments, and transfers ownership after the device is paid off.

Market Context

Director David Allen May’s purchase of 40,250 shares provides a separate ownership signal alongside ...

Analysis

Director David Allen May’s purchase of 40,250 shares provides a separate ownership signal alongside this program update. The record adds context, while unfinalized joint-venture terms remain a risk to execution and scale.

Key Figures

July retail sales: $176,000 Month-over-month growth: 23% June retail sales: $142,725 +4 more

7 metrics

July retail sales $176,000 Smartphone rent-to-own program

Month-over-month growth 23% July versus June retail sales

June retail sales $142,725 Prior month

April retail sales $1,500 Program launch month

Current participating locations Fewer than 50 locations Dealer footprint

Potential expansion 500 locations Contemplated program scale

Potential eventual expansion 5,000 locations Contemplated program scale

Historical Context

5 past events · Latest: Aug 06 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Aug 06	Joint venture formation	Positive	+45.5%	Announced Redline JV with 20,000-plus dealer footprint and expected first-month cash flow positivity.
Aug 05	Joint venture formation	Positive	+45.5%	Formed Redline JV, combining LinkUp Mobile infrastructure with a 20,000-plus dealer distribution channel.
Jul 29	Smartphone program growth	Positive	-2.1%	Reported sales growth from $1,500 in April to $142,725 in June.
Jul 16	Conference appearance	Neutral	-0.1%	Announced executive panel participation and a new LinkUp Mobile dealer compensation model.
Jul 01	Carrier agreement amendment	Positive	+38.1%	Removed $50.0 million minimum spend and disclosed expected $10.3 million payable reduction.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Positive corporate announcements generally aligned with gains, but the prior rent-to-own growth release diverged with a -2.12% reaction.

Key Terms

joint venture, rent-to-own

2 terms

joint venture financial

"initiated discussions with LWP regarding a potential joint venture"

A joint venture is when two or more companies team up to work on a specific project or business idea, sharing both the risks and the rewards. It’s like friends starting a lemonade stand together—each contributes resources and they split the profits, making it easier to succeed than going alone.

rent-to-own financial

"growth in its smartphone rent-to-own program with All Prepaid"

A rent-to-own agreement lets a customer use an item or property by paying regular rental fees with the option to buy it later, often with part of those payments counting toward the purchase price. Think of it like a trial rental that can turn into ownership. For investors, these contracts affect how a company records revenue and assets, influence cash flow predictability, and carry credit and repossession risks that matter for valuation and credit analysis.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Joint Venture Discussions Continue as Company Evaluates Smartphone Rent-to-Own Program as Standalone Revenue Channel

BARTLETT, Tenn., Aug. 11, 2026 (GLOBE NEWSWIRE) -- SurgePays, Inc. (NASDAQ: SURG) ("SurgePays" or the "Company"), a wireless and fintech company connecting subprime and underserved consumers to essential mobile and financial services, today announced continued growth in its smartphone rent-to-own program with All Prepaid, LLC, dba LowWeeklyPayments ("LWP"). Retailer sales through the program reached approximately $176,000 in July, representing a 23% increase over June sales of $142,725. Since launching in April, the program has grown from approximately $1,500 in monthly retailer sales to more than $176,000 across essentially the same participating dealer footprint.

“July sales at approximately $176,000 confirms the trajectory of this offering is real, durable, and worthy of dedicated focus,” said K. Brian Cox, Chairman and Chief Executive Officer of SurgePays. “What began as an additional offering for our dealers has demonstrated enough traction for us to evaluate it as a distinct revenue channel within the SurgePays fintech platform. Based on the performance we have seen across fewer than 50 participating locations, we have initiated discussions with LWP regarding a potential joint venture to support the program’s continued expansion. The revenue potential of this program at 500 locations, and eventually 5,000, is what makes it worthy of dedicated focus today.”

Cox continued, “Dealer response has been striking because the program helps them move more inventory while giving consumers who lack traditional credit access to premium smartphones through an affordable weekly payment structure. LWP’s approval matrix meets these customers where they are, and the demand we are seeing tells us we are solving a real problem for the subprime consumer. We look forward to providing additional updates as discussions with LWP progress.”

The next phase contemplates a broader rollout of the smartphone rent-to-own program across the Company’s independent retail dealer footprint, with the companies evaluating the structure of a potential joint venture intended to capture this opportunity at scale. The Company will provide additional updates as appropriate.

About SurgePays, Inc.

SurgePays, Inc. (NASDAQ: SURG) is a wireless and fintech company connecting subprime and underserved consumers to essential mobile and financial services. The Company operates a nationwide retail network and proprietary technology platform that enables the distribution of wireless services, financial products, and essential services to consumers who primarily transact in person. By combining physical distribution with data-driven technology, SurgePays is building a scalable platform designed to increase engagement and drive recurring revenue across multiple product categories. For more information, please visit www.surgepays.com.

About Low Weekly Payments

All Prepaid, LLC, dba LowWeeklyPayments ("LWP"), is a Florida limited liability company headquartered in Doral, Florida that operates a rent-to-own platform focused on making quality smartphones and other electronics accessible to underbanked and subprime consumers. Under the LWP program, the Company purchases the product from participating retailers and rents the device to the customer under a low weekly payment structure until it is paid off, at which point the customer owns the device outright. LWP’s unique approval matrix is designed to deliver materially higher approval rates than traditional programs, enabling retail dealers to convert customers who would otherwise be turned away at the counter. For more information, please visit www.AllPrepaidRTO.com.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations, and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy, and other future conditions, including with respect to the performance and trajectory of the Company’s rent-to-own program with Low Weekly Payments, the potential expansion of that program across the Company’s dealer network, the possibility and structure of a joint venture with Low Weekly Payments, and the Company’s ability to recruit additional dealers. The July 2026 retail sales figure of approximately $176,000 disclosed in this release is preliminary and unaudited and remains subject to normal-course reconciliation. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements are discussed or identified in our filings with the Securities and Exchange Commission, including the risk factors contained in our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this press release. We undertake no obligation to update these statements as a result of new information or future events, except as required by law.

Investor Relations Contact

SurgePays, Inc.

ir@surgepays.com

Company Contact

SurgePays, Inc.

3124 Brother Blvd., Suite 104

Bartlett, TN 38133

www.surgepays.com

FAQ

What growth did SurgePays (NASDAQ: SURG) report for its smartphone rent-to-own program in July 2026?

SurgePays reported July retailer sales of approximately $176,000, a 23% month-over-month increase from June’s $142,725. According to SurgePays, the program has expanded from about $1,500 in April monthly retailer sales to over $176,000 while maintaining essentially the same dealer footprint.

How many locations are currently participating in SurgePays’ smartphone rent-to-own program (SURG)?

The smartphone rent-to-own program has achieved its sales performance across fewer than 50 participating locations. According to SurgePays, this concentrated footprint underscores the potential impact of a broader rollout across its independent retail dealer network if expansion plans move forward.

Is SurgePays planning a joint venture for its smartphone rent-to-own program with LowWeeklyPayments?

SurgePays has initiated discussions with LowWeeklyPayments about a potential joint venture to support program expansion. According to SurgePays, both companies are evaluating joint venture structures as part of the next phase, with the goal of capturing the opportunity at larger scale.

How is SurgePays positioning the smartphone rent-to-own program within its fintech platform (ticker SURG)?

SurgePays is evaluating the smartphone rent-to-own program as a distinct revenue channel within its fintech platform. According to SurgePays, the program’s growth and dealer response justify dedicated focus and could enhance recurring revenue across its nationwide independent retail network.

What does the smartphone rent-to-own partnership between SurgePays and LowWeeklyPayments offer subprime consumers?

The partnership offers subprime and underbanked consumers access to premium smartphones through affordable weekly payments under a rent-to-own model. According to SurgePays, LowWeeklyPayments’ approval matrix targets higher approval rates, enabling dealers to serve customers who often lack traditional credit options.