1. SurgePays integrates fully with AT&T, boosting growth potential. 2. Company forecasts over $200 million revenue for the next year. 3. Secured $7 million financing to accelerate business initiatives. 4. AT&T integration allows for increased wireless service distribution. 5. Significant operational metrics indicate strong future growth.
The successful integration with AT&T positions SurgePays for growth, which historically enhances stock value. Positive projections on revenue and cash flow further reinforce market confidence.
The article outlines significant corporate developments and financial expectations that underscore SurgePays' strategic positioning, which is likely to impact its stock price.
Sustained revenue growth from AT&T integration indicates long-term strategic benefits, similar to previous market advancements seen in similar companies after major partnerships.
BARTLETT, Tenn., May 13, 2025 /PRNewswire/ -- SurgePays, Inc. (Nasdaq: SURG) ("SurgePays" or the "Company"), a wireless and point-of-sale technology company, today announced its financial results for the first quarter ended March 31, 2025. Following the successful nationwide launch and full integration with AT&T, the Company is reaffirming its outlook of generating over $200 million in revenue for the twelve months beginning April 1, 2025, with positive operating cash flow expected before year-end.
Brian Cox, Chairman and CEO, commented: "The investments we've made in our team, technology, distribution, and strategic partnerships have set the stage for the most significant growth phase in SurgePays' history. With our AT&T integration now complete, we've launched nationwide across our wireless ecosystem as both a Mobile Virtual Network Operator (MVNO) and Enabler (MVNE). To accelerate this expansion, we recently closed a $7 million financing, including $6 million in cash, with one of our largest shareholders. This transition from a reseller model to a direct carrier partner is a transformative milestone, positioning us to scale rapidly and profitably in both retail and wholesale."
The first quarter results tracked closely with Q4 2024 and were in line with expectations. The Company continues to transition from the federally funded ACP era, which concluded in 2024. Investments made in the first quarter — including the AT&T integration, MVNE platform development, and expansion of the POS software network — have laid the foundation for our goal of a return to growth and profitability in 2025.
Cash, cash equivalents and investments balances as of March 31, 2025, were $5.4 million. Subsequent to the end of the quarter, the Company closed on a $7 million senior secured convertible note (the "Note") with interest rate of 15% per annum that matures 24-months from the date of closing. Amortization of the Note begins at month eight with a prepayment option in excess of amortization in whole or in part at any time with five days' advance notice at a 2% premium to the principal amount plus accrued interest. The Note has a fixed conversion price of $4 per share beginning at month eight from the date of issuance, subject to monthly conversion limits. Included in the Note is a dilution offset clause in which the investor will exchange 333,333 shares of the Company's common stock previously held by the investor for $999,999 of principal at $3 per share. Additionally, the Company will issue 700,000 5-year warrants at an exercise price of $6.00 per share.
With the nationwide launch of LinkUp Mobile and a growing pipeline of MVNE partnerships, SurgePays expects to surpass $200 million in revenue over the next 12 months beginning April 1, 2025. The Company also anticipates generating positive operating cash flow before the end of the year, marking a pivotal shift toward sustained profitability and scalable growth.
This guidance is based solely on the monetization of core MVNO and POS platforms already deployed. As these platforms scale, both through direct customer acquisition and wholesale MVNE relationships, the Company anticipates significant revenue growth as well as margin expansion.
SurgePays management will host a webcast today at 5 p.m. ET / 2 p.m. PT to discuss these results.
The live webcast of the call can be accessed on the Company's investor relations website at ir.surgepays.com, or by registering at the following link: SurgePays First Quarter Earnings Conference Call.
Telephone access:
- U.S.: 877-545-0523
- International: 973-528-0016
- Participant Access Code: 877643
A telephone replay will be available approximately one hour following completion of the call until May 27, 2025. Replay: 877-481-4010 (U.S.) or 919-882-2331 (Intl.) Replay Passcode: 52439
SurgePays, Inc. is a wireless and fintech company focused on delivering mobile connectivity and financial services to underserved communities. As both a mobile virtual network operator (MVNO) and mobile virtual network enabler (MVNE), SurgePays operates its own wireless brand while also providing back-end infrastructure, including provisioning and billing, to other wireless providers. The Company's proprietary point-of-sale platform is used nationwide in thousands of retail locations, enabling SIM activations, top-ups, and digital financial services. SurgePays is built to scale and uniquely positioned to grow across both retail and wholesale wireless channels. Visit www.SurgePays.com for more information.
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, 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 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.
March 31, 2025
Cash and cash equivalents: $5,397,770
Restricted cash - held in escrow: -
Accounts receivable - net: $2,486,889
Inventory: $1,781,365
Prepaids and other: $184,596
Total Current Assets: $9,850,620
Note receivable: $176,851
Intangibles - net: $1,309,510
Goodwill: $3,300,000
Operating lease - right of use asset - net: $503,502
Total Other Assets: $5,289,863
Total Assets: $15,664,039
Accounts payable and accrued expenses: $3,760,820
Accounts payable and accrued expenses - related party: -
Operating lease liability: $248,069
Note payable - related party: $1,731,366
Total Current Liabilities: $5,740,255
Note payable - related party: $1,416,513
Notes payable - SBA government: $466,627
Operating lease liability: $259,205
Total Long Term Liabilities: $2,142,345
Total Liabilities: $7,882,600
Common stock, $0.001 par value, 500,000,000 shares authorized 20,431,549 shares issued and 20,068,929 shares outstanding, respectively, at March 31, 2025 and December 31, 2024: $20,435
Additional paid-in capital: $76,997,997
Treasury stock - at cost (362,620 and 0 shares, respectively): $(631,967)
Accumulated deficit: $(68,550,511)
Stockholders' equity: $7,835,954
Non-controlling interest: $(54,515)
Total Stockholders' Equity: $7,781,439
Total Liabilities and Stockholders' Equity: $15,664,039
For the Three Months Ended March 31,
Revenues: $10,577,429
Costs and expenses:
Cost of revenues: $13,519,775
General and administrative expenses: $4,637,556
Total costs and expenses: $18,157,331
Income (loss) from operations: $(7,579,902)
Other income (expense):
Interest expense: $(119,434)
Interest income: $56,903
Other income: $7,140
Gain on investment in CenterCom: -
Total other income (expense) - net: $(55,391)
Net income (loss) before provision for income taxes: $(7,635,293)
Provision for income tax (expense): -
Net income (loss) including non-controlling interest: $(7,635,293)
Non-controlling interest: $(209)
Net income (loss) available to common stockholders: $(7,635,084)
Earnings per share - attributable to common stockholders:
Basic: $(0.38)
Diluted: $(0.38)
Weighted average number of shares outstanding - attributable to common stockholders:
Basic: 20,068,929
Diluted: 20,068,929
For the Three Months Ended March 31,
Operating activities:
Net income (loss) - including non-controlling interest: $(7,635,293)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operations:
Depreciation and amortization: $249,574
Amortization of right-of-use assets: $61,279
Amortization of internal use software development costs: -
Stock issued for services: -
Recognition of stock based compensation - unvested shares - related parties: $155,119
Recognition of share based compensation - options - related party: -
Interest expense adjustment - SBA loans: -
Right-of-use asset lease payment adjustment true up: -
Gain on equity method investment - CenterCom: -
Changes in operating assets and liabilities (Increase) decrease in:
Accounts receivable: $513,320
Inventory: -
Prepaids and other: $113,764
Deferred income taxes - net: -
Increase (decrease) in:
Accounts payable and accrued expenses: $(168,375)
Accounts payable and accrued expenses - related party: $(192,845)
Accrued income taxes payable: -
Deferred revenue: -
Operating lease liability: $(60,027)
Net cash provided by (used in) operating activities: $(6,963,484)
Purchase of leasehold improvements: $(18,590)
Net cash used in investing activities: $(18,590)
Proceeds from stock issued for cash: -
Proceeds from exercise of common stock warrants: -
Cash paid as direct offering costs: -
Repayments of loans - related party: $(407,776)
Repayments on notes payable - SBA government: $(2,769)
Net cash provided (used in) by financing activities: $(410,545)
Net increase (decrease) in cash, cash equivalents and restricted cash: $(7,392,619)
Cash, cash equivalents and restricted cash - beginning of period: $12,790,389
Cash, cash equivalents and restricted cash - end of period: $5,397,770
Cash paid for interest: $90,860
Cash paid for income tax: $-
Reclassification of accrued interest - related party to note payable - related party: $-
Exercise of warrants - cashless: $-
Goodwill (ClearLine Mobile, Inc.): $-
Right-of-use asset obtained in exchange for new operating lease liability: $-
SOURCE SurgePays