SurgePays(SURG) - 2025 Q3 - Quarterly Results

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].