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- **292% YoY Growth**: Q3 revenue surged 292% to $18.7 million, Lifeline and LinkUp Mobile drove expansion into 125,000 locations. 
- **2026 Target**: $225 million revenue guidance, with positive gross margin by year-end. 
- **Convenience Store Expansion**: Autonomous store model allows stores to add wireless activations and prepaid services, integrating with subprime consumer data. 


**【Management Opening Remarks】**
- Valter Pinto introduced the call, noting Q3 revenue growth of 292% YoY to $18.7 million, driven by the Lifeline program and LinkUp Mobile. The company operates in 125,000 locations, with 95,000 active subscribers. 

**【CEO Kevin Cox】**
- Q3 revenue reached $18.7 million, up 292% YoY, fueled by 125,000 subscribers and partnerships with convenience stores. The ClearLine SaaS platform integrates with Corpay for payment processing, targeting $225 million in 2026. 

**【CFO Anthony Evers】**
- Gross profit loss narrowed to $2.6 million, with positive gross margin expected by year-end. Cash reserves of $2.5 million support expansion into subprime consumer data. 

**【Q&A Highlights】**
- Convenience store owners are open to new products, with no impact from market consolidation due to store autonomy. The company’s platform enables stores to offer wireless activations and prepaid services, driving incremental revenue. 


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

- **Revenue Acceleration**: Q2 2025 revenue up 8.9% sequentially, with 2025 guidance of $75M-$90M and 2026 targeting $225M-$240M.
- **Lifeline Surge**: Activations leap from 20,000/month to 57,000/month, with Q3 targeting 80,000-90,000/month, driven by state subsidies and AT&T partnership.
- **Prepaid Growth**: Top-up revenue up 4x year-over-year to $4.3M in July, projecting $60M+ annual run rate.
- **Financial Transition**: Gross loss narrowed to $2.7M; SG&A down 45% YoY, reflecting cost control amid ACP-to-Lifeline shift.
- **Strategic Differentiation**: Owned platform, field agent incentives, and device reimbursement drive competitive advantage in Lifeline and LinkUp markets.

**【CEO Summary Section】**
- **Revenue Growth**: Q2 2025 revenue of $11.5 million, up 8.9% sequentially, with H1 2025 total at $22.1 million. Guidance for 2025: $75M-$90M; 2026: $225M-$240M.
- **Lifeline Momentum**: Activations surged from 20,000 in June to 57,000 in July, targeting 80,000-90,000/month by September. AT&T partnership provides network reliability and MVNE capabilities.
- **LinkUp Expansion**: 10,000 activations in April, doubling to 20,500 in July via retail distribution and competitive pricing. Prepaid top-up revenue reached $4.3M in July, projecting $5M in August (run rate >$60M).
- **MVNE Pipeline**: 3 MVNO partners onboarded, with talks for national convenience store distribution. Phone-in-a-Box rollout aims for 100,000 retail locations.

**【CFO Financial Commentary】**
- **Q2 Financials**: Revenue $11.5M (8.9% sequential growth); platform service revenue $9.2M (vs. $2.5M in Q2 2024). Gross loss $2.7M (vs. $3.4M in Q2 2024). SG&A down 45% YoY to $4.1M. Net loss $7.1M (-$0.35 EPS).
- **Balance Sheet**: Cash $4.4M as of June 30, 2025 (vs. $11.8M at year-end 2024). Transitioning from ACP to Lifeline/LinkUp model.

**【Q&A Key Highlights】**
- **Lifeline Drivers**: Focus on high-margin states with additional subsidies ($27 net per customer). Platform efficiency (e.g., auto-image compression) reduces friction for field agents.
- **Commission & Devices**: 2/3 of smartphone costs reimbursed via connection credits. No commissions in $9.25 federal states; tents used in higher-margin states.
- **Competition**: Differentiated by owned platform, field support (125 El Salvador specialists), and incentives for enrollment agents. Competitive pricing and distribution scale drive growth.


SurgePays, Inc. (SURG) Q2 2025 Earnings Call Transcript

- **Strategic Inflection Point**: AT&T partnership enables MVNE scale, with 500K+ SIMs allocated for Q2 growth.
- **Platform Growth**: Platform services revenue up 232% YoY, offsetting subsidy loss.
- **Capital Flexibility**: $6M non-dilutive financing secures 2025 cashflow positive trajectory.
- **Distribution Ambition**: 100K locations target via 'Phone in a Box' and convenience store partnerships.
- **Lifeline Expansion**: High-revenue state focus and potential $20/month subsidy enhance growth prospects.

**【CEO Opening Remarks】**
- Q1 2025 revenue of $10.6M reflects transition from federal subsidies to platform-driven growth, with platform services up 232% YoY to $8.3M.
- Strategic partnership with AT&T completed in 6 months, enabling MVNE capabilities. Over 500,000 SIMs allocated for retail and wholesale channels by end of Q2.
- Launch of 'Phone in a Box' concept at HT Hackney, selling out 2,600 units in 30 days, with replenishment underway.
- Targeting 100,000 retail locations by end-2026 via partnerships with national distributors and convenience store networks.
- $6M convertible note financing secured, with no equity dilution, and cashflow positive by end-2025.

**【CFO Financial Highlights】**
- Q1 2025 GAAP net loss of $7.6M driven by ACP subsidy termination, vs. $1.8M profit in Q1 2024.
- Platform service revenue growth offset 28.6% YoY SG&A reduction to $4.4M, reflecting cost optimization.
- Balance sheet cash of $5.4M as of March 31, 2025, with $6M financing providing runway for Lifeline expansion.

**【Q&A Key Takeaways】**
- MVNE partners (3 integrated, 2 in pipeline) to contribute recurring revenue starting Q2, with 20-30% margin per subscriber.
- SIM card allocation prioritizes wholesale channel growth, with 250K new SIMs arriving monthly to meet demand.
- Economic uncertainty accelerates adoption of low-cost wireless solutions, benefiting underserved communities.
- Lifeline program expansion targeting high-revenue states like California, with potential $20/month enhanced subsidy.
- 100,000 location goal achievable via multi-product entry strategy, leveraging existing retail networks and new partnerships.

SurgePays, Inc. (SURG) Q1 2025 Earnings Call Transcript

- **Strategic Reboot Succeeds**: Shifted from ACP dependency to 3 revenue streams (LinkUp Mobile, Lifeline, MVNE) with $200M+ 12-month target.
- **AT&T Partnership Payoff**: MVNE channel delivers $1-2/sub/month profit, 13% of revenue with no incremental costs.
- **SIM Card Growth Engine**: 250K-300K SIMs/month by Q2 2025, directly tied to 37% of revenue from LinkUp Mobile.
- **Cash Flow Turnaround**: Target cash flow positive by end-2025, up from $12.8M cash as of Q4 2024.
- **Key Risks**: SIM card supply constraints, subscriber conversion execution, and macroeconomic impact on low-income customers.


**【CEO Summary Section】**
- **Strategic Transition Completed**: Shifted from ACP-dependent model to diversified wireless and POS platform. 2024 revenue $60.9M (down 56% YoY) due to ACP sunset, but 2025+ growth driven by LinkUp Mobile, Lifeline, and MVNE partnerships.
- **New Revenue Engines**: 
  - **LinkUp Mobile**: Nationwide launch April 2025, targeting 250K-300K SIMs/month. 37% of $200M+ 12-month revenue target.
  - **Lifeline Program**: Focused on high-margin states ($15-26/month). 24% of revenue, 1/3 of ACP customers converted.
  - **MVNE (Wholesale)**: Profitable with AT&T partnership. 13% of revenue, no incremental costs.
- **Operational Milestones**: 
  - AT&T integration complete, 30K SIMs soft-launched in March, 200K+ delivered, 250K/month projected.
  - POS platform top-up revenue grew 300% Q1-Q4 2024, enabling store activations and cross-selling.
- **Financial Outlook**: Q1 2025 revenue ~Q4 2024 levels, Q2+ acceleration. Target $200M+ 12-month revenue, cash flow positive by end-2025.

**【CFO Financial Commentary】**
- **2024 Results**: 
  - Revenue $60.9M (vs. $137.1M 2023), 56% decline due to ACP shutdown.
  - Platform services grew 54% ($17.4M vs. $11.3M), driven by new sales team.
  - Gross loss $14.3M (vs. $35.6M profit 2023), reflecting ACP exit and Lifeline transition costs.
  - SG&A up 57% YoY, driven by stock comp and IT upgrades.
  - Cash balance $12.8M (down from $23.7M Q3 2024), used to fund subscriber transitions.
- **Liquidity Management**: 
  - $21.3M cash used in 2024, driven by ACP wind-down.
  - Prioritized subscriber conversion to LinkUp/Lifeline over short-term profitability.
- **2025 Guidance**: 
  - Q1 revenue ~Q4 2024 levels, Q2+ growth.
  - Target $200M+ 12-month revenue, with wireless (60%) > POS (24%).
  - Cash flow positive by end-2025, positioning for 2026 scale.

**【Q&A Highlights】**
- **SIM Card Economics**: 
  - LinkUp Mobile: $8-15/month, 37% of revenue.
  - Lifeline: $12-13/month, 24% of revenue.
  - MVNE: $1-2/sub/month, 13% of revenue.
- **Customer Conversion**: 
  - 1/3 of 285K ACP customers moved to Lifeline, others deactivated.
  - Focus on high-margin states for Lifeline (e.g., $26/month vs. $9.25).
- **Growth Constraints**: 
  - SIM card supply capacity (~250K/month) aligns with demand.
  - MVNE pipeline strong, but constrained by SIM card allocation.
- **Competitive Advantage**: 
  - Closed-loop POS platform enables cross-selling (top-up + wireless).
  - Direct AT&T access for eSIMs, number portability, and device compatibility.
  - 9,000+ retail partners nationwide for distribution reach.


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