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]

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 Viewpoint - SurgePays, Inc. is experiencing significant revenue growth, estimating over 60% sequential increase for Q3 2025, driven by a multi-channel growth strategy and a focus on underserved communities [1][8]. Revenue Growth Drivers - SurgePays operates through five key revenue channels: Lifeline Wireless (subsidized), LinkUp Mobile (prepaid), Prepaid Wireless Top-Up (fintech POS platform), HERO MVNE Services (B2B enablement), and ClearLine (SaaS marketing platform) [4][7][8]. - The Lifeline program has over 125,000 subscribers and is expected to provide a stable revenue base due to its permanent federal funding [5][6]. - The ClearLine SaaS platform is designed to enhance marketing capabilities and drive additional revenue through upselling opportunities [8][11]. Strategic Execution - The company has built a strong operational infrastructure since 2022, integrating with AT&T and developing a distribution network that supports multiple high-margin revenue streams [3][10]. - SurgePays aims to achieve profitability while minimizing dilution and maintaining a diversified revenue model, which is crucial for transitioning from a micro-cap to a small-cap company [8][10]. - The management's strategic plan includes moderating sales to secure inventory and adapt to market conditions, which has resulted in over 60% sequential revenue growth despite a slower growth rate than initially expected [8][11]. Future Outlook - SurgePays projects a full-year revenue guidance of $225 million for 2026, indicating confidence in scaling its operations and revenue streams [3][8]. - The company is well-positioned to leverage its established foundation for sustained growth and to navigate potential challenges in the industry [3][8].

Core Insights - SurgePays, Inc. reported a second quarter revenue of $11.5 million, reflecting an 8.9% sequential increase from $10.6 million in Q1 2025, and is on track for record-breaking results in 2026 due to strong subscriber activations and growth across various platforms [2][8]. Financial Performance - The company expects 2025 revenue to be between $75 million and $90 million, and for 2026, revenue is projected to be between $225 million and $240 million, driven by subscriber growth and new partnerships [3][9]. - In Q2 2025, the company experienced a net loss of $7.08 million, compared to a net loss of $12.87 million in Q2 2024, with total revenues for the first half of 2025 at $22.1 million, down from $46.5 million in the same period of 2024 [17][18]. Subscriber Growth and Business Expansion - SurgePays has seen significant subscriber growth, particularly with its Torch Wireless brand, which activated 20,000 subscribers in June and 57,000 in July, with expectations of reaching 80,000 to 90,000 activations per month by September [5][11]. - The LinkUp Mobile prepaid platform has shipped over 250,000 SIMs, with activations more than doubling to over 30,000 subscribers between April and July 2025 [11]. Operational Highlights - The company completed a nationwide launch on the AT&T network and fully integrated by April 1, 2025, enhancing its service capabilities [11]. - SurgePays has expanded its prepaid POS fintech network, driving recurring revenue from over 9,000 retail locations [11]. Financial Position - As of June 30, 2025, the company reported total assets of $15.2 million, a decrease from $24.0 million at the end of 2024, with current liabilities increasing to $8.7 million from $6.1 million [16][17]. - The company secured $6 million in financing from a large shareholder to accelerate growth initiatives [11].

Summary of Surg Pays Inc. Presentation Company Overview - Surg Pays Inc. is publicly traded on Nasdaq under the symbol SURG with a current market cap of $55 million and revenue guidance exceeding $200 million through April 2026 [4][3] Industry Insights - The US MVNO (Mobile Virtual Network Operator) market reached $30 billion last year and is projected to grow to nearly $53 billion by 2032 [6] - Approximately one-third of the US population utilizes prepaid products due to socioeconomic challenges, representing over 100 million Americans [6] Core Business Model - Surg Pays operates a derisked, non-seasonal model with high insider ownership at 30% and aims for profitability by the end of the year [5] - The company empowers over 9,000 retailers with prepaid services, positioning its network as significant distribution points for products and services [5][16] Revenue Streams - **LinkUp Mobile**: A prepaid brand offering plans starting at $10, focusing on expanding dealer footprint and upselling through existing stores [7] - **Torch**: A subsidized channel providing free wireless service to low-income individuals through the Lifeline program, which has generated hundreds of millions in revenue over the past 20 years [8][9] - **Hero Platform**: A mobile virtual network enabler (MVNE) that allows other companies to become wireless providers, with three partners onboarded and two more in the pipeline [10][12] Competitive Advantages - Ownership of a point-of-sale platform that turns checkout counters into profit centers, generating transactional revenue without requiring inventory [14] - A digital advertising solution integrated with store POS systems to enhance marketing efforts and customer engagement [15] - A bilingual call center with 120 representatives to support a growing customer base and expand into Hispanic product revenue channels [20] Financial Performance - Revenue from the prepaid channel increased from under $1 million per month to over $3.4 million within a year, with expectations to exceed $4 million per month by July [18][19] Future Outlook - The company is built to scale without plateauing, with a leadership team experienced in generating billions in revenue [20] - Surg Pays is positioned to dominate its sector, with a focus on integrating with third-party POS systems and leveraging credibility to push higher-margin products [17][19] Conclusion - Surg Pays Inc. is at a pivotal moment in its history, ready to scale and enhance shareholder value through strategic growth and market expansion [21]

Core Insights - SurgePays has completed its integration with AT&T and launched its services nationwide, positioning the company for significant growth [1][2] - The company aims to generate over $200 million in revenue over the next 12 months starting April 1, 2025, with expectations of positive operating cash flow by year-end [1][6] Financial Performance - For Q1 2025, SurgePays reported revenues of $10.58 million, a decrease from $31.43 million in Q1 2024 [12][14] - The company incurred a net loss of $7.64 million in Q1 2025, compared to a net income of $1.22 million in the same period last year [14] - Cash and cash equivalents as of March 31, 2025, were $5.4 million, down from $11.79 million at the end of 2024 [12] Operational Highlights - SurgePays shipped over 250,000 SIM cards and has an additional 290,000 in inventory, with plans to ship another 250,000 by June 2025 [8] - The company has fully integrated three MVNOs and is onboarding two more, expanding its MVNE pipeline [8] - The launch of the "Phone in a Box" product exceeded expectations, selling out 2,600 smartphones in under 30 days [8] Strategic Developments - SurgePays secured $7 million in financing, including $6 million in cash, to support its growth initiatives [2][8] - The transition from a reseller model to a direct carrier partner is seen as a transformative milestone for the company [2] - The company is focused on scaling its MVNO and POS platforms, anticipating significant revenue growth and margin expansion [6][7]

Financial Data and Key Metrics Changes - In 2024, the company reported revenues of $60.9 million, a decrease of 56% compared to $137.1 million in 2023, primarily due to the shutdown of the Affordable Connectivity Program (ACP) federal funding [19][20] - Gross loss was $14.3 million in 2024, compared to a gross profit of $35.6 million in 2023, significantly impacted by the end of ACP funding [21][24] - The net loss for 2024 was $45.7 million, translating to a loss per share of $2.39, adversely affected by the cessation of ACP [24] Business Line Data and Key Metrics Changes - The platform service revenue grew to $17.4 million in 2024 from $11.3 million in 2023, driven by a new sales director [20] - The top-up platform experienced over 300% revenue growth from Q1 to Q4 in 2024, indicating strong activation readiness [14] Market Data and Key Metrics Changes - The company has built a retail distribution network of nearly 9,000 convenience community stores nationwide, enhancing its market presence [8] - The company expects to ship 250,000 to 300,000 SIMs per month moving forward, reflecting strong demand [17][38] Company Strategy and Development Direction - The company aims to transition subscribers to either the non-subsidized MVNO business model (LinkUp Mobile) or into another subsidized program (Lifeline) [21][24] - A multiyear agreement with AT&T was announced, providing customers with access to the largest wireless network, which is expected to drive growth [16] - The company is focusing on a diversified revenue model, emphasizing the importance of not relying on a single revenue stream [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving over $200 million in revenue over the next twelve months, with expectations of exiting 2025 cash flow positive [18] - The management noted that economic conditions could lead consumers to seek value, which may benefit the company's offerings [70][72] Other Important Information - SG&A expenses increased by 57% year-over-year, primarily due to additional non-cash stock compensation for management [22] - The company is prioritizing cash allocation to finance the transition of subscribers and establish the Linco Mobile brand [26] Q&A Session Summary Question: Inquiry about SIM card orders and delivery - Management confirmed that SIM card activation was historically dependent on physical SIM cards, but now eSIM capabilities have been added to bypass physical cards [32] Question: Clarification on projected revenue of $200 million - The projected revenue of over $200 million is for the next twelve months starting from April 1, 2025 [39][43] Question: Economics and margin profile of SIM cards - The blended average margin for LinkUp Mobile is expected to be between $8 to $15 per subscriber, with various margins for different plans [50] Question: Composition of revenue target for the next twelve months - Over 50% of the projected revenue will come from the wireless segment, primarily from LinkUp Mobile and Lifeline [55] Question: Economic outlook for the working class - Management noted that economic tightness often leads consumers to seek value, which could positively impact the company's business [70][72] Question: Strategy for converting ACP customers - Approximately one-third of the 280,000 ACP customers have been converted to Lifeline, with efforts ongoing to transition the remaining customers [80][86]