Revenue Performance - SurgePays reported third quarter 2025 revenue of approximately $18.7 million, representing a 292% increase year-over-year and a 62% increase sequentially [2]. - The company reaffirmed its revenue guidance for 2026 at $225 million, supported by continued growth in Lifeline subscribers and expansion of prepaid retail distribution [5]. - Torch Wireless, a key growth driver, achieved revenue of $5.6 million with over 125,000 subscribers during the third quarter [4]. - Revenues for the three months ended September 30, 2025, were $18.68 million, a decrease from $51.28 million in the same period of 2024 [17]. Subscriber Growth - LinkUp Mobile surpassed 95,000 recurring active subscribers by the end of the third quarter, driven by expanded retail distribution and competitive pricing [4]. - The company aims to expand its retail locations operating on the SurgePays platform to 100,000, driven by organic growth and new distribution agreements [10]. - SurgePays has onboarded three MVNO partners to date, with additional partnerships in progress, enhancing its high-margin business model [10]. Financial Performance - SurgePays improved its gross profit loss to $(2.6) million in Q3 2025, compared to $(7.8) million in Q3 2024 [10]. - Selling, General and Administrative (SG&A) expenses decreased to $4.2 million, a 32.5% improvement year-over-year from $6.2 million [10]. - Total costs and expenses for the three months ended September 30, 2025, were $25.63 million, compared to $19.05 million in the same period of 2024, representing a 34.5% increase [17]. - Net loss available to common stockholders for the three months ended September 30, 2025, was $7.49 million, compared to a loss of $14.28 million in the same period of 2024 [17]. - Basic and diluted earnings per share for the three months ended September 30, 2025, were both $(0.38), an improvement from $(0.73) in the same period of 2024 [17]. - The company reported a net loss including non-controlling interest of $22.21 million for the nine months ended September 30, 2025, compared to $25.95 million in the same period of 2024 [19]. Cash Flow and Liquidity - Net cash used in operating activities for the nine months ended September 30, 2025, was $17.73 million, compared to $13.41 million in the same period of 2024 [19]. - Net cash provided by financing activities for the nine months ended September 30, 2025, was $7.47 million, a decrease from $23.03 million in the same period of 2024 [19]. - Cash, cash equivalents, and restricted cash at the end of the period were $2.51 million, down from $13.65 million at the end of the same period in 2024 [19]. Other Financial Metrics - The company recognized stock-based compensation of $526.13 thousand for unvested shares related to parties during the nine months ended September 30, 2025 [19]. - The company had a total other income (expense) - net of $(539.16) thousand for the three months ended September 30, 2025, compared to $1.02 thousand in the same period of 2024 [17]. - Total current liabilities increased to $17.7 million as of September 30, 2025, compared to $6.1 million at the end of 2024 [15].

Core Insights - SurgePays, Inc. has launched ProgramBenefits.com, a platform aimed at converting verified benefit-qualified consumers into recurring revenue opportunities targeting the underserved and subprime consumer market [1][3][5] - The platform is a reengineered version of SurgePays' legacy LogicsIQ system, designed to create a scalable data monetization strategy [1][4] - The initiative is part of SurgePays' broader strategy to transform its consumer data ecosystem into a high-margin revenue growth engine [2][8] Company Strategy - The launch of ProgramBenefits.com is a direct execution of the company's Growth Marketing and Data Partnerships roadmap, which aims to connect individuals receiving government benefits to various products and services [3][5] - SurgePays is focused on monetizing verified consumer engagement at scale, utilizing advanced technology for consumer verification and data analytics [4][5][8] - The company aims to reduce customer acquisition costs while creating new revenue streams through its wireless brands and data assets [5][6] Market Position - SurgePays targets a significant market, with nearly 57% of U.S. consumers classified as underserved or subprime, equating to approximately 138 million adults [5][6] - The company is positioned to grow across both retail and online channels, evolving into a leading digital marketplace for underserved populations [7][8] - By leveraging its existing infrastructure, SurgePays can generate revenue from marketing qualified leads and convert consumers into wireless subscribers [4][5]

Financial Data and Key Metrics Changes - Third quarter 2025 revenue totaled approximately $18.7 million, an increase of 292% year-over-year compared to $4.8 million in Q3 2024, and over 62% sequentially [5][14] - Gross profit loss narrowed to $2.6 million in Q3 2025 from a loss of $7.8 million in Q3 2024, indicating an improvement in gross margin [14] - Loss from operations was $7 million in Q3 2025, down from $14.3 million in Q3 2024 [15] - Reported net loss for Q3 2025 was $7.5 million, translating to a loss per share of negative $0.38 [15] Business Line Data and Key Metrics Changes - Revenue from the MVNO brand, Torch Wireless, increased from virtually zero in Q3 2024 to $5.6 million in Q3 2025, driven by the Lifeline program [6] - Point of sale and prepaid services revenue rose to $13.1 million, a 177% increase year-over-year [7] - The Clearline SaaS platform is expected to achieve positive gross margins by the end of 2025 [14] Market Data and Key Metrics Changes - SurgePays has over 125,000 subscribers for Torch Wireless, growing from 20,000 subscribers since activation in June [6] - The subprime market has expanded from $100 million to approximately $137 million over the past four years, indicating a growing target market for the company [22][23] Company Strategy and Development Direction - The company is focused on integrating technology with a nationwide retail distribution network to serve underserved communities [4] - SurgePays aims to achieve profitability with minimal impact on the cap table and dilution, while targeting $225 million in revenue for 2026 [12][16] - A new Growth Marketing and Data Partnerships division has been launched to transform consumer data into a scalable, high-margin growth engine [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute its strategy and navigate the industry, highlighting the importance of customer intelligence and marketing execution as competitive advantages [12][19] - The company is in "acceleration mode," with activation growth and expanding distribution supporting its confidence in creating significant shareholder value [19] Other Important Information - SurgePays is in advanced talks with national convenience store distributors to expand its retail footprint [9] - The partnership with Corpay aims to integrate Clearline's marketing tools into Corpay's payment processing solution, creating new revenue streams [11] Q&A Session Summary Question: Feedback from convenience store owners regarding the underserved market - Management noted that convenience store owners are open to new products and services, especially during uncertain times, creating opportunities for SurgePays [22][23] Question: Impact of consolidation among major convenience store brands - Management believes that the autonomy of store owners will remain intact despite consolidation, and they continue to build strong relationships with these owners [26][28]

Revenue Performance - SurgePays reported a revenue increase of $13,910,620, or 291.6%, from $4,769,697 in Q3 2024 to $18,680,317 in Q3 2025[438] - The Mobile Virtual Network Operator (MVNO) segment generated $5,561,124 in revenue, a significant increase of $5,537,516, or 23456.1%, primarily due to the expansion of the Lifeline program in California[438] - Point-of-Sale and Prepaid Services revenues rose by $8,373,105, or 176.4%, attributed to an expanded sales force and renewed focus on this segment[440] - Total revenue decreased by $10,508,618 (20.5%) from $51,284,531 in the nine months ended September 30, 2024 to $40,775,913 in the nine months ended September 30, 2025[454] - Mobile Virtual Network Operator revenue decreased by $31,299,052 (75.6%) from $41,419,705 in 2024 to $10,120,653 in 2025 due to the lack of additional funding from Congress[454] - Point-of-Sale and Prepaid Services revenue increased by $20,801,763, attributed to an expanded sales force and renewed focus on this segment[456] - Total revenues for the nine months ended September 30, 2025 were $40,775,913, a decrease of $10,508,618 from $51,284,531 in 2024, attributed to the elimination of the ACP during the first half of 2024[477] - Mobile Virtual Network Operators revenue for the nine months ended September 30, 2025 decreased by $31,299,052 compared to the same period in 2024[475] - Point-of-Sale and Prepaid Services revenue increased by $20,801,763 or 211.1% for the nine months ended September 30, 2025, reaching $30,655,260 compared to $9,853,497 in 2024[476] Cost and Profitability - The cost of revenue for Q3 2025 was $21,276,771, compared to $12,602,057 in Q3 2024, reflecting increased operational scale[446] - Gross profit for Q3 2025 was a loss of $2,596,454, an improvement from a loss of $7,832,360 in Q3 2024[446] - Gross profit margin for the Mobile Virtual Network Operator segment was -75.5% in 2025 compared to -8.2% in 2024, indicating a significant decline[460] - The Company expects to achieve positive gross margins in the Point-of-Sale and Prepaid Services segment by the end of 2025[460] Expenses and Financial Management - Selling, general and administrative expenses decreased by $2,003,058 (32.5%) from $6,166,335 in 2024 to $4,163,277 in 2025[448] - Compensation expenses decreased by $1,458,461 (44.0%) from $3,313,320 in 2024 to $1,854,859 in 2025, primarily due to changes in stock compensation[449] - General and administrative expenses for the nine months ended September 30, 2025 totaled $13,147,086, down from $20,312,185 in 2024[461] - Selling, general and administrative expenses (S, G & A) decreased by $6,973,781 or 35.9% from $19,451,184 in 2024 to $12,477,403 in 2025[462] - Compensation expenses decreased by $5,522,894 or 50.6% from $10,922,462 in 2024 to $5,399,568 in 2025, primarily due to a change in one-time non-cash stock compensation for the CEO and CFO[462] Subscriber and Service Expansion - SurgePays launched the HERO platform in late 2024, designed to support independent MVNOs and enhance revenue channels with minimal incremental costs[424] - The company transitioned over 80,000 subscribers to the Lifeline program during 2024, leveraging a Master Services Agreement with TerraCom, Inc.[439] - The company plans to scale Lifeline enrollments and expand prepaid retail distribution across rural and multicultural markets as part of its growth strategy[432] - The Company signed a Master Services Agreement with TerraCom, Inc. to offer Lifeline services to its existing ACP subscriber base, transitioning over 80,000 subscribers[455] Financing and Capital Management - The Company repurchased 333,333 shares of its common stock for $999,999 at $3 per share, increasing the principal balance of the related convertible note by the same amount[469] - The Company entered into a one-year Note Purchase Agreement with LGH Investments for $770,000, accruing interest at 8% per annum[465] - The company issued a Senior Secured Convertible Note for $6,999,999, resulting in net cash proceeds of $6,000,000 and the repurchase of 333,333 shares at $3/share[481] - The company plans to utilize the At the Market Offering Agreement to fund ongoing working capital needs, with an aggregate offering price of up to $15,000,000[481] - The company issued a six-month Note for $1,000,000, with warrants for 30,000 shares at an exercise price of $2.50/share[483] Asset and Liability Management - Total assets decreased by $9,481,104 from $23,976,005 at December 31, 2024 to $14,494,901 at September 30, 2025[479] - Current assets decreased from $17,870,323 at December 31, 2024 to $9,227,180 at September 30, 2025, resulting in a working capital deficit of $1,751,392[478] - As of September 30, 2025, total liabilities increased to $20,919,381 from $8,714,392 at December 31, 2024, marking a $12,204,873 increase[480] - Total stockholders' deficit was $6,424,480 compared to total stockholders' equity of $15,261,613 at December 31, 2024[482] Cash Flow and Financial Position - Net cash used in operating activities for the nine months ended September 30, 2025, was $(17,728,805), compared to $(13,412,714) in 2024, primarily due to a net loss of $22,207,395[490] - The company reported a net cash decrease of $10,050,580 in 2025, contrasting with a cash increase of $23,812,520 in 2024 driven by capital raises and warrant exercises[492] Strategic Initiatives - The company launched its Growth Marketing and Data Partnerships Division to monetize its consumer data ecosystem and enhance customer acquisition efficiency[442] - The company has initiated the launch of LinkUp Mobile SIM cards and a phone in a box program, with thousands of phones purchased by convenience stores[497] - The company is exploring strategic opportunities for acquisitions but has no current commitments or known timing for such transactions[498] Accounting and Risk Management - The company evaluates new accounting pronouncements to assess their potential impact on Consolidated Financial Statements[518] - There are no applicable quantitative and qualitative disclosures about market risk[519] - Warrants issued for compensation are measured using the Black-Scholes option pricing model, while those meeting the definition of a derivative liability use a binomial pricing model for fair value determination[515] - Warrants issued with common stock are recorded at fair value as a reduction in additional paid-in capital[517] - All other service-related warrants are recorded at fair value and expensed over the requisite service period or at the date of issuance if no service period exists[517]

Core Insights - SurgePays, Inc. reported a significant revenue increase of 292% year-over-year and 62% sequentially, reaching approximately $18.7 million for Q3 2025, and reiterated its revenue guidance of $225 million for 2026 [1][2][6] Financial Highlights - Q3 2025 net revenue was $18.7 million, compared to $4.8 million in Q3 2024, marking a 292% increase year-over-year and a 62% increase sequentially [5][17] - Gross profit loss improved to $(2.6) million from $(7.8) million in Q3 2024 [5] - Selling, General and Administrative (SG&A) expenses decreased to $4.2 million, down 32.5% year-over-year from $6.2 million in Q3 2024 [5] Operational Highlights - Torch Wireless, a Lifeline-subsidized brand, generated $5.6 million in revenue with over 125,000 subscribers [5] - LinkUp Mobile, the affordable prepaid wireless brand, launched in April and achieved over 95,000 recurring active subscribers by the end of Q3 2025 [5] - The company aims to expand its retail distribution network to 100,000 locations, leveraging both organic growth and new distribution agreements [5] Strategic Positioning - The company emphasizes its multi-channel growth platform, which integrates technology with a nationwide retail distribution network, targeting underserved communities [2][9] - SurgePays is focused on building a sustainable competitive advantage through its unique combination of telecom and fintech products [2][9] Future Guidance - SurgePays reaffirms its revenue guidance for 2026 at $225 million, supported by continued growth in Lifeline subscribers and expansion of its prepaid and retail distribution [6]

Core Insights - SurgePays, Inc. plans to host a conference call to report its financial results for the third quarter ended September 30, 2025, on November 12, 2025 [1] - The company focuses on connecting underserved consumers to essential mobile and financial services through its wireless and fintech technology [3] Company Overview - SurgePays, Inc. operates its own wireless brands and proprietary point-of-sale platform, which is deployed nationwide in thousands of retail locations [3] - The company enables SIM activations, top-ups, and digital financial transactions, targeting underserved communities [3] Business Expansion - SurgePays is expanding into data-driven marketing and digital partnerships aimed at converting verified consumer engagement into recurring, high-margin revenue streams [4] - The company is positioned to grow across both retail and online channels, evolving into a leading data intelligence and digital marketplace platform for America's underserved population [4]

Core Insights - SurgePays, Inc. plans to host a conference call to report its financial results for the third quarter ended September 30, 2025, on November 12, 2025 [1] - The company focuses on connecting underserved consumers to essential mobile and financial services through its wireless and fintech technology [3] Company Overview - SurgePays operates its own wireless brands and a proprietary point-of-sale platform deployed nationwide in thousands of retail locations [3] - The company is expanding into data-driven marketing and digital partnerships to convert consumer engagement into recurring, high-margin revenue streams [4] - SurgePays aims to evolve into a leading data intelligence and digital marketplace platform serving America's underserved population [4]

Core Points - SurgePays, Inc. has launched a free wireless program under its LinkUp Mobile brand for households receiving Supplemental Nutrition Assistance Program (SNAP) benefits, providing unlimited talk, text, and 3GB of data for up to five users per household [1][2][3] - The initiative aims to support families facing uncertainty due to potential funding cuts to SNAP amid a government shutdown, which could leave millions without essential food assistance [2][3] - The CEO of SurgePays emphasized the company's commitment to serving underbanked and underserved markets, highlighting the importance of maintaining communication and access to digital services during challenging times [3][4] Company Overview - SurgePays, Inc. operates as a wireless and fintech technology company, focusing on connecting underserved communities to essential mobile and financial services [5] - The company has developed its own wireless brands and proprietary point-of-sale platform, which is utilized nationwide in thousands of retail locations for various services [5] - SurgePays is expanding into data-driven marketing and digital partnerships to create recurring, high-margin revenue streams, positioning itself as a leading data intelligence and digital marketplace platform for underserved populations [6]

Core Insights - SurgePays, Inc. has launched a new Growth Marketing and Data Partnerships Division to enhance monetization of its data ecosystem and expand high-margin recurring revenue opportunities [1][6] - The division will be led by James Herber, who has extensive experience in digital acquisition and partnership development within the fintech and telecommunications sectors [2][6] - The initiative aims to transform SurgePays' consumer data ecosystem into a scalable growth engine, leveraging verified consumer interactions for targeted marketing and cross-selling opportunities [5][6] Company Strategy - The new division is a strategic milestone in SurgePays' growth trajectory, focusing on underserved markets and utilizing the DigitizeIQ platform for consumer marketing [4][5] - SurgePays aims to reduce customer acquisition costs by generating additional revenue through complementary services, enhancing long-term shareholder value [5][6] - The company is transitioning from a transactional platform to a data-driven revenue network, positioning itself for sustained competitive advantage [5][6] Leadership and Expertise - James Herber will oversee the integration of marketing performance, partner analytics, and audience management across SurgePays' ecosystem, including Torch Wireless and LinkUp Mobile [3][6] - The leadership aims to eliminate customer acquisition costs and expects the new division to become a significant revenue driver within the next 12 to 18 months [6] Revenue Generation - The initiative is expected to generate high-margin recurring revenue through data partnerships, analytics integrations, and targeted marketing programs [6] - SurgePays is uniquely positioned to grow across both retail and online channels, evolving into a leading data intelligence and digital marketplace platform for underserved populations [8]

Core Insights - SurgePays, Inc. has announced a strategic partnership with QorPay Inc. to integrate its ClearLine marketing platform into QorPay's payment processing solution, creating a new growth channel and recurring revenue opportunity [1][2] Company Overview - SurgePays, Inc. is a wireless and fintech company focused on providing mobile connectivity and financial services to underserved communities, operating as both a mobile virtual network operator (MVNO) and mobile virtual network enabler (MVNE) [5] Partnership Details - The integration of ClearLine's SaaS-based marketing tools into QorPay's payment ecosystem will enable retailers to engage customers from the moment of transaction, enhancing customer loyalty and engagement [2][3] - This partnership is expected to create new recurring revenue streams for both SurgePays and QorPay while providing value-added functionality to merchants and resellers [2][3] Market Impact - The collaboration is designed to transform routine merchant transactions into measurable revenue opportunities by embedding marketing capabilities directly into the point-of-sale experience [3] - The partnership expands SurgePays' addressable market and deepens its presence across retail and fintech channels, introducing a differentiated offering for independent sales organizations (ISOs) and software vendors (ISVs) [3] Future Plans - Beta testing of the integrated solution is currently underway, with a full commercial release planned for early 2026 [4]