SurgePays Revenue for the Third Quarter 2025 Increases 292% Year-Over-Year and 62% Sequentially

Rhea-AI Summary

SurgePays (NASDAQ:SURG) reported Q3 2025 net revenue of $18.7 million, up 292% year-over-year and 62% sequentially. The company reaffirmed 2026 revenue guidance of $225 million.

Operational highlights include Torch Wireless revenue of $5.6 million with over 125,000 subscribers, LinkUp Mobile reaching over 95,000 recurring active subscribers, three MVNE partners onboarded, and expanded retail distribution via partners such as HT Hackney. Gross profit loss improved to $(2.6) million from $(7.8) million a year earlier; SG&A improved to $4.2 million from $6.2 million.

As of Nov 10, 2025, common shares outstanding totaled 20,431,549. A conference call and webcast were scheduled for Nov 12, 2025 at 5:00 p.m. ET.

Positive

• Revenue $18.7M in Q3 2025, +292% YoY
• Reaffirmed $225M revenue guidance for 2026
• Torch Wireless $5.6M revenue and >125,000 subscribers
• LinkUp Mobile >95,000 recurring active subscribers
• Gross loss improved to $(2.6)M from $(7.8)M YoY
• SG&A reduced to $4.2M, a 32.5% improvement YoY

Negative

• Negative gross profit of $(2.6)M in Q3 2025

Insights

Senior Financial Analyst

SurgePays reports sharply higher revenue, improved losses, and reiterates $225 million 2026 guidance.

Revenue grew to $18.7 million in Q3 2025, up 292% year‑over‑year and 62% sequentially, driven by Lifeline (Torch Wireless, $5.6 million, ~125,000 subscribers) and the April launch of LinkUp Mobile (≈95,000 recurring active subscribers). Gross loss narrowed to $(2.6) million from $(7.8) million a year earlier, and SG&A declined to $4.2 million from $6.2 million, showing operational leverage as scale builds.

The company reiterates 2026 revenue guidance of $225 million, anchored on Lifeline growth, prepaid retail expansion, MVNE partner additions, and ClearLine monetization. Key execution dependencies include reaching broader retail distribution (near‑term goal: 100,000 locations) and onboarding additional MVNE partners; failure to scale distribution or convert subscribers into durable revenue would weaken the outlook. Monitor the company’s ability to sustain subscriber growth, margin improvement, and the pace of new distribution agreements through 2026.

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. (NASDAQ: 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 September 30,								For the Nine Months Ended 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

FAQ

What were SurgePays (SURG) Q3 2025 revenues and growth rates?

SurgePays reported $18.7 million in Q3 2025 revenue, up 292% YoY and 62% sequentially.

What revenue guidance did SurgePays (SURG) give for 2026 and when is it expected?

SurgePays reaffirmed $225 million revenue guidance for 2026, supported by subscriber and distribution expansion.

How many subscribers did SurgePays’ Torch Wireless and LinkUp Mobile have in Q3 2025?

Torch Wireless reported over 125,000 subscribers and LinkUp Mobile surpassed 95,000 recurring active subscribers.

How did SurgePays’ profitability metrics change in Q3 2025?

Gross profit loss improved to $(2.6) million from $(7.8) million in Q3 2024; SG&A declined to $4.2 million from $6.2 million.

When and how could investors access the SurgePays Q3 2025 earnings call?

The company held a conference call and webcast on Nov 12, 2025 at 5:00 p.m. ET, with a replay available on the investor site for one year.