SurgePays shares fall 18.72% after-hours as $2.5M public offering priced at $1.25, a discount to current trading price.

SurgePays Inc. (NASDAQ: SURG) fell 18.72% in after-hours trading following the announcement of a $2.5 million public offering priced at $1.25 per share, a 33.3% discount to its closing price of $1.87. The offering, comprising 2 million shares with a 45-day over-allotment option for 300,000 additional shares, signaled potential dilution and raised concerns about the company’s financial health. The price discount and SurgePays’ existing cash burn of $25.65 million over the past year, coupled with Q3 2025 earnings missing EPS forecasts and negative operating margins, reinforced investor skepticism. The move reflects ongoing challenges in monetizing its fintech and wireless ecosystem, exacerbating fears of operational inefficiencies and liquidity risks.