SurgePays 2025 Q2 Earnings Net Loss Narrows by 45%

SurgePays (SURG) reported its fiscal 2025 Q2 earnings on Aug 13th, 2025, showcasing a 45% reduction in net loss compared to the previous year, despite a notable 23.6% decline in total revenue.

Revenue
Total revenue for SurgePays declined by 23.6% to $11.52 million in 2025 Q2, compared to $15.09 million in 2024 Q2. The company’s revenue was primarily driven by its Point-of-Sale and Prepaid Services segment, which accounted for $9.24 million of the total revenue. The Mobile Virtual Network Operators (MVNO) segment contributed $2.27 million. There were no revenues attributed to the "Other Corporate Overhead" segment, resulting in a total revenue of $11.52 million for the quarter.

Earnings/Net Income
SurgePays reduced its net loss to $-7.08 million in 2025 Q2, a 45% improvement from the $-12.89 million loss in 2024 Q2. On a per-share basis, the company narrowed its losses to $0.36 from $0.66, representing a 45.5% improvement. The reduction in losses reflects progress in cost management and operational efficiency, although the company still reported a negative net income for the quarter.

Price Action
Following the earnings release, the stock price of SurgePays has edged down 1.03% during the latest trading day and has dropped 3.68% during the most recent full trading week. The price has also declined 3.68% month-to-date, reflecting investor caution and mixed market sentiment.

Post-Earnings Price Action Review
The strategy of buying SurgePays (SURG) shares after a revenue raise quarter-over-quarter on the financial report release date and holding for 30 days resulted in poor performance over the past three years. The strategy yielded a return of -50.85%, significantly underperforming the benchmark return of 46.32%. The excess return was -97.17%, and the strategy's CAGR was -21.75%, indicating substantial losses and a declining portfolio value. With a maximum drawdown of 0% and a Sharpe ratio of -0.24, the strategy also implied a high risk, as the volatility was high at 92.38%.

CEO Commentary
CEO Kevin Brian Cox highlighted Q2 2025 as a foundational period, with post-quarter momentum driving strong sequential revenue growth. He noted an 8.9% sequential revenue increase and emphasized the accelerating performance of the Lifeline program under Torch Wireless and the LinkUp Mobile MVNO platform, both of which have seen significant subscriber growth and top-up revenue spikes. Cox expressed confidence in revenue guidance for 2025 and 2026, citing the scalability of the SurgePays platform, expanded retail distribution, and a direct partnership with AT&T. He emphasized the company's focus on high-margin, scalable models, particularly in states offering higher-margin Lifeline subsidies, to drive cash flow and profitability.

Guidance
SurgePays provided revenue guidance of $75 million to $90 million for 2025 and $225 million to $240 million for 2026, reflecting a projected acceleration in growth across all business verticals, including Lifeline, LinkUp, and MVNE. The CEO expressed confidence in these targets, driven by continued activation scaling, expanded distribution, and the scalable infrastructure supporting recurring revenue models.

Additional News
Recent international developments include the successful launch of satellite internet low-orbit Group 08, with significant implications for global connectivity and infrastructure. Domestic policy shifts are also gaining traction, with the Chinese government releasing signals of strong economic support, including the launch of China's first commercial electron beam lithography machine in Hangzhou. In the United States, political tensions remain high, particularly around the potential "Trump-Putin" meeting and its implications for global diplomacy and security. Additionally, the U.S. Treasury Secretary has proposed a policy to ban members of Congress from trading individual stocks, aiming to prevent potential conflicts of interest and enhance market integrity.