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1. Company Snapshot

1.a. Company Description

SurgePays, Inc., a financial technology and telecommunications company, provides services to the underbanked community in the United States.Its blockchain platform utilizes a suite of financial and prepaid products to convert corner stores and bodegas into tech-hubs for underbanked neighborhoods.The company offers voice and SMS text messaging services to subsidized and direct retail prepaid customers, as well as to low-income consumers.


It also offers subsidized mobile broadband services to consumers in California, Colorado, Florida, Illinois, Maryland, Mississippi, Missouri, Nevada, New Jersey, Ohio, Oklahoma, Rhode Island, Tennessee, and Texas, as well as prepaid wireless plans.In addition, the company provides marketing business intelligence, plaintiff generation, and case load management solutions primarily to law firms in the mass tort industry.Further, it operates a bilingual operations center offering the Company with sales support, customer service, IT infrastructure design, graphic media, database programming, software development, revenue assurance, lead generation, and other various operational support services.


The company is headquartered in Bartlett, Tennessee.

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1.b. Last Insights on SURG

SurgePays' recent performance was negatively impacted by a quarterly loss of $0.36 per share, which lagged revenue estimates. The company's Q2 2025 earnings call revealed a widening loss, despite a year-ago loss of $0.66 per share. However, revenue guidance for 2025 and 2026 was updated to $75M-$90M and $225M-$240M, respectively. The company's new "Phone-in-a-Box" prepaid service, launched in June, aims to drive growth. A potential positive is the presentation at the iAccess Alpha Virtual Best Ideas Summer Investment Conference and a fireside chat hosted by Water Tower Research.

1.c. Company Highlights

2. SurgePays' Q3 2025 Earnings: A Strong Growth Story Unfolds

SurgePays, Inc. reported a robust third-quarter 2025, with revenue surging to $18.7 million, a 292% year-over-year increase and a 62% sequential increase. The company's gross profit loss narrowed to $2.6 million, and SG&A expenses decreased by 32.5% year-over-year to $4.2 million. The reported net loss and loss per share were $7.5 million and negative 38¢ per share, respectively, with actual EPS coming in at -0.38 relative to estimates at -0.17.

Publication Date: Nov -24

📋 Highlights
  • Revenue Surge:: Q3 revenue hit $18.7M (+292% YoY, +62% sequential), driven by Lifeline program and $13.1M in point-of-sale/prepaid services (+177% YoY).
  • Subscriber Growth:: Over 125,000 subscribers with strategic investments in AT&T integration, operational tech, and talent since 2022.
  • Diversified Revenue Streams:: Includes Torch Wireless, LinkUp Mobile, MVNE, and Clearline SaaS, with 3 MVNO partners and a CorePay partnership.
  • Profitability Focus:: Aims for profitability with minimal dilution, maintaining 2026 revenue guidance of $225M despite $7M loss from operations.
  • High-Margin Expansion:: Launched data partnerships division targeting recurring revenue, alongside narrowed gross profit loss ($2.6M) and 32.5% lower SG&A expenses.

Revenue Growth Drivers

The company's revenue growth was primarily driven by the Lifeline program and point of sale and prepaid services, which increased by 177% year-over-year to $13.1 million. SurgePays has over 125,000 subscribers and is well-positioned for continued growth, with a diversified revenue streams, including Torch Wireless, LinkUp Mobile, Hero, MVNE, prepaid top-up, and Clearline SaaS point of sale.

Operational Highlights

The company's experienced team has been investing in integration with AT&T, operational infrastructure, technology, and talent deployment since 2022. SurgePays has onboarded three MVNO partners, which serve thousands of subscribers and are looking to grow quickly. Additionally, Clearline, the company's SaaS marketing platform, has a strategic partnership with CorePay to integrate its marketing and customer engagement platform into CorePay's cloud-native payment processing solution.

Valuation and Growth Prospects

With a P/S Ratio of 0.74, the company's valuation appears reasonable, considering its growth prospects. Analysts estimate next year's revenue growth at 122.4%. The company's immediate goal is to achieve profitability with minimal impact on the cap table and dilution. SurgePays remains confident in its 2026 revenue guidance of $225 million, positioning it for sustainable long-term shareholder value.

New Initiatives and Future Outlook

The company recently launched a new growth marketing and data partnerships division, which is expected to generate high-margin recurring revenue through data partnerships, analytics integrations, and targeted marketing programs. This initiative marks a significant step forward in transforming the company's expanding consumer data ecosystem into a scalable, high-margin growth engine.

3. NewsRoom

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SurgePays Adds Three New Subprime Lead Generation Aggregators to Accelerate ProgramBenefits.com Activations

Dec -04

Source: globenewswire.com

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SurgePays, Inc. (SURG) Q3 2025 Earnings Call Transcript

Nov -13

Source: seekingalpha.com

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

Nov -12

Source: globenewswire.com

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GPO Plus, Inc. Increases Revenue Nearly 6X Since Entering the DSD Market, Now Scaling Phase Toward National Expansion

Nov -06

Source: accessnewswire.com

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SurgePays to Host Third Quarter 2025 Earnings Conference Call

Nov -03

Source: globenewswire.com

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SurgePays Announces Free Wireless Service for SNAP/EBT Households Impacted by Government Shutdown

Oct -30

Source: globenewswire.com

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SurgePays Unlocks New Revenue Channel with Launch of Growth Marketing & Data Partnerships Division

Oct -30

Source: globenewswire.com

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SurgePays Signs Strategic Agreement with Payment Technology Provider, QorPay, to Integrate ClearLine into Next-Generation Payments Solution and Accelerate New Growth Channel

Oct -27

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.50%)

6. Segments

Mobile Virtual Network Operator

Expected Growth: 11.47%

SurgePays' Mobile Virtual Network Operator (MVNO) growth is driven by increasing demand for affordable wireless services, strategic partnerships with major carriers, and innovative digital distribution channels. Additionally, the company's focus on underserved markets, such as rural areas and low-income communities, contributes to its rapid expansion.

Comprehensive Platform Services

Expected Growth: 11.7%

SurgePays' Comprehensive Platform Services growth of 11.7% is driven by increasing demand for digital payment solutions, expansion into new markets, strategic partnerships, and innovative product offerings. Additionally, the company's focus on providing a seamless user experience, robust security features, and competitive pricing strategies have contributed to its rapid growth.

Lead Generation

Expected Growth: 11.7%

SurgePays, Inc.'s 11.7% lead generation growth is driven by increasing adoption of digital payment solutions, strategic partnerships, and expansion into new markets. Additionally, the company's innovative marketing strategies, improved user experience, and enhanced data analytics capabilities have contributed to this growth.

Other

Expected Growth: 11.47%

SurgePays, Inc.'s 11.47% growth is driven by increasing demand for its fintech solutions, strategic partnerships, and expansion into new markets. The company's innovative payment processing platform and digital wallet services are gaining traction, contributing to revenue growth. Additionally, SurgePays' focus on underserved markets and its ability to provide affordable financial services are key factors in its rapid expansion.

7. Detailed Products

SurgePays Marketplace

A digital marketplace that connects buyers and sellers, offering a wide range of products and services.

SurgePays Payment Platform

A payment processing platform that enables businesses to accept online payments, manage transactions, and track sales.

SurgePays Digital Wallet

A digital wallet that allows users to store, send, and receive funds securely and efficiently.

SurgePays Business Solutions

A suite of business solutions that provide payment processing, inventory management, and logistics support.

SurgePays Affiliate Network

An affiliate network that connects publishers with advertisers, enabling them to monetize their online presence.

8. SurgePays, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

SurgePays, Inc. operates in a niche market, but there are some substitutes available. However, the company's unique value proposition and strong brand recognition mitigate the threat of substitutes.

Bargaining Power Of Customers

SurgePays, Inc. has a diverse customer base, and no single customer has significant bargaining power. The company's pricing strategy and customer relationships also reduce the bargaining power of customers.

Bargaining Power Of Suppliers

SurgePays, Inc. relies on a few key suppliers for its operations. While the company has some bargaining power, the suppliers also have some leverage due to the specialized nature of their products.

Threat Of New Entrants

The fintech industry is rapidly evolving, and new entrants can easily disrupt the market. SurgePays, Inc. needs to continuously innovate and improve its offerings to stay ahead of new competitors.

Intensity Of Rivalry

The fintech industry is highly competitive, and SurgePays, Inc. faces intense rivalry from established players and new entrants. The company needs to focus on differentiating its offerings and improving its operational efficiency to stay competitive.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 15.26%
Debt Cost 9.75%
Equity Weight 84.74%
Equity Cost 11.25%
WACC 11.02%
Leverage 18.01%

11. Quality Control: SurgePays, Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
MoneyLion

A-Score: 4.8/10

Value: 4.0

Growth: 6.2

Quality: 6.3

Yield: 0.0

Momentum: 9.0

Volatility: 3.3

1-Year Total Return ->

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Where Food Comes From

A-Score: 4.7/10

Value: 2.4

Growth: 6.4

Quality: 7.2

Yield: 0.0

Momentum: 8.0

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
Aware

A-Score: 4.4/10

Value: 7.8

Growth: 3.6

Quality: 4.7

Yield: 0.0

Momentum: 8.0

Volatility: 2.3

1-Year Total Return ->

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Vimeo

A-Score: 4.2/10

Value: 1.8

Growth: 7.6

Quality: 5.6

Yield: 0.0

Momentum: 8.5

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
SurgePays

A-Score: 3.7/10

Value: 7.2

Growth: 2.9

Quality: 2.4

Yield: 0.0

Momentum: 8.5

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
PubMatic

A-Score: 3.5/10

Value: 6.3

Growth: 6.6

Quality: 5.0

Yield: 0.0

Momentum: 0.5

Volatility: 2.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.77$

Current Price

1.77$

Potential

-0.00%

Expected Cash-Flows