SurgePays Inc. Reports Strong Q3 Growth Amid Challenges

Surgepays Inc ((SURG)) has held its Q3 earnings call. Read on for the main highlights of the call.Meet Your ETF AI Analyst Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow. SurgePays Inc. recently held its third-quarter earnings call, revealing a robust performance characterized by impressive revenue growth and subscriber expansion. The company showcased strategic partnerships and improved financial metrics, painting a positive outlook despite challenges such as a net loss and reduced cash position. Significant Revenue Growth SurgePays reported a remarkable revenue increase for the third quarter of 2025, totaling $18.7 million. This figure represents a 292% year-over-year growth and a 62% sequential rise, underscoring the company’s strong market position and effective growth strategies. Strong Subscriber Growth The Lifeline program under Torch Wireless demonstrated significant subscriber growth, expanding from 20,000 subscribers in June to over 125,000. This surge highlights the program’s potential and the company’s ability to attract and retain customers. Expansion of LinkUp Mobile LinkUp Mobile achieved a milestone by surpassing 95,000 recurring active subscribers. This growth was fueled by expanded retail distribution and targeted marketing efforts, showcasing the company’s strategic focus on expanding its customer base. Successful Integration and Partnerships SurgePays has successfully integrated Clearline with CorePay’s payment processing, forming strategic partnerships expected to generate new recurring revenue streams. These collaborations are pivotal in enhancing the company’s financial performance. Improvement in Gross Profit Loss The company reported a narrowed gross profit loss of $2.6 million for 2025, a significant improvement from the $7.8 million loss in 2024. This reduction reflects the company’s efforts to enhance operational efficiency and profitability. Decrease in SG&A Expenses SG&A expenses saw a 32.5% reduction year over year, amounting to $4.2 million in 2025. This decrease indicates effective cost management and operational optimization by the company. Net Loss and Cash Position Despite the positive developments, SurgePays reported a net loss of $7.5 million and a loss per share of negative 38¢ for 2025. Additionally, the company’s cash, cash equivalents, and investment balances decreased to $2.5 million from $11.8 million as of December 31, 2024, highlighting areas needing attention. Forward-Looking Guidance SurgePays provided optimistic guidance for the future, with revenue for Q3 2025 reaching $18.7 million, driven by the MVNO brand Torch Wireless and increased point of sale and prepaid services revenue. The company aims for a revenue target of $225 million for 2026, leveraging its diversified growth strategy and proprietary point of sale software. Management expressed confidence in strategic investments and new customer acquisition channels, positioning the company for sustainable long-term shareholder value. In conclusion, SurgePays Inc.’s earnings call painted a picture of strong growth and strategic advancements. While the company faces challenges such as a net loss and reduced cash reserves, its impressive revenue and subscriber growth, coupled with strategic partnerships, provide a solid foundation for future success. Investors and stakeholders can look forward to the company’s continued focus on expanding its market presence and enhancing shareholder value.