SurgePays Reports 2024 Financial Results and Issues Revenue Guidance of Over $200 Million in Next 12 Months
SurgePays (Nasdaq: SURG) announced its 2024 financial results and provided guidance for the next 12 months. The company projects revenue exceeding $200 million and expects to achieve positive cash flow from operations by the end of 2025, following its successful AT&T integration.
Key operational highlights include:
- National rollout of LinkUp Mobile with expected monthly SIM card shipments of 250,000-300,000
- Completed AT&T integration for 4G LTE and 5G wireless services
- Launch of MVNE wholesale business offering wireless infrastructure services
- POS platform growth with over 400% increase in prepaid wireless top-up revenue from Q1 to Q2 2024
While 2024 revenue and gross profit were impacted by the end of federal ACP funding, the company retained a portion of its wireless subscriber base and is transitioning eligible customers to the Lifeline program. First quarter 2025 revenue is expected to remain consistent with Q4 2024.
SurgePays (Nasdaq: SURG) ha annunciato i risultati finanziari per il 2024 e fornito indicazioni per i prossimi 12 mesi. L'azienda prevede un fatturato superiore ai 200 milioni di dollari e si aspetta di raggiungere un flusso di cassa positivo dalle operazioni entro la fine del 2025, a seguito della riuscita integrazione con AT&T.
I principali punti salienti operativi includono:
- Espansione nazionale di LinkUp Mobile con spedizioni mensili di SIM card previste tra 250.000 e 300.000
- Integrazione completata con AT&T per i servizi wireless 4G LTE e 5G
- Lancio dell'attività MVNE all'ingrosso che offre servizi di infrastruttura wireless
- Crescita della piattaforma POS con un aumento di oltre il 400% nei ricavi da ricariche wireless prepagate dal primo al secondo trimestre del 2024
Sebbene i ricavi e il profitto lordo del 2024 siano stati influenzati dalla fine del finanziamento federale ACP, l'azienda ha mantenuto una parte della sua base di abbonati wireless e sta trasferendo i clienti idonei al programma Lifeline. Si prevede che i ricavi del primo trimestre del 2025 rimangano coerenti con il quarto trimestre del 2024.
SurgePays (Nasdaq: SURG) anunció sus resultados financieros para 2024 y proporcionó orientación para los próximos 12 meses. La compañía proyecta ingresos superiores a 200 millones de dólares y espera lograr un flujo de efectivo positivo de las operaciones para finales de 2025, tras su exitosa integración con AT&T.
Los principales aspectos operativos incluyen:
- Despliegue nacional de LinkUp Mobile con envíos mensuales de tarjetas SIM esperados entre 250,000 y 300,000
- Integración completada con AT&T para servicios inalámbricos 4G LTE y 5G
- Lanzamiento del negocio mayorista MVNE que ofrece servicios de infraestructura inalámbrica
- Crecimiento de la plataforma POS con un aumento de más del 400% en los ingresos por recargas inalámbricas prepagas del primer al segundo trimestre de 2024
Aunque los ingresos y la ganancia bruta de 2024 se vieron afectados por el fin de la financiación federal ACP, la compañía retuvo una parte de su base de suscriptores inalámbricos y está trasladando a los clientes elegibles al programa Lifeline. Se espera que los ingresos del primer trimestre de 2025 se mantengan constantes con el cuarto trimestre de 2024.
SurgePays (Nasdaq: SURG)는 2024년 재무 결과를 발표하고 향후 12개월에 대한 가이던스를 제공했습니다. 회사는 2억 달러 이상의 수익을 예상하며, AT&T 통합의 성공에 따라 2025년 말까지 운영에서 긍정적인 현금 흐름을 달성할 것으로 기대하고 있습니다.
주요 운영 하이라이트는 다음과 같습니다:
- LinkUp Mobile의 국가적 출시, 예상 월간 SIM 카드 출하량 250,000~300,000개
- 4G LTE 및 5G 무선 서비스에 대한 AT&T 통합 완료
- 무선 인프라 서비스를 제공하는 MVNE 도매 비즈니스 런칭
- 2024년 1분기에서 2분기 사이에 400% 이상 증가한 선불 무선 충전 수익의 POS 플랫폼 성장
2024년 수익과 총 이익은 연방 ACP 자금 지원 종료로 영향을 받았지만, 회사는 무선 가입자 기반의 일부를 유지했으며, 적격 고객을 Lifeline 프로그램으로 전환하고 있습니다. 2025년 1분기 수익은 2024년 4분기와 일치할 것으로 예상됩니다.
SurgePays (Nasdaq: SURG) a annoncé ses résultats financiers pour 2024 et a fourni des prévisions pour les 12 mois suivants. L'entreprise prévoit un chiffre d'affaires supérieur à 200 millions de dollars et s'attend à atteindre un flux de trésorerie positif provenant des opérations d'ici la fin de 2025, suite à son intégration réussie avec AT&T.
Les principaux points forts opérationnels incluent:
- Déploiement national de LinkUp Mobile avec des expéditions mensuelles de cartes SIM attendues entre 250 000 et 300 000
- Intégration achevée avec AT&T pour les services sans fil 4G LTE et 5G
- Lancement de l'activité de gros MVNE offrant des services d'infrastructure sans fil
- Croissance de la plateforme POS avec une augmentation de plus de 400 % des revenus des recharges sans fil prépayées du premier au deuxième trimestre 2024
Bien que les revenus et le bénéfice brut de 2024 aient été affectés par la fin du financement fédéral ACP, l'entreprise a conservé une partie de sa base d'abonnés sans fil et transfère les clients éligibles vers le programme Lifeline. Les revenus du premier trimestre 2025 devraient rester cohérents avec ceux du quatrième trimestre 2024.
SurgePays (Nasdaq: SURG) hat seine finanziellen Ergebnisse für 2024 bekannt gegeben und eine Prognose für die nächsten 12 Monate abgegeben. Das Unternehmen rechnet mit Einnahmen von über 200 Millionen Dollar und erwartet, bis Ende 2025 einen positiven Cashflow aus dem operativen Geschäft zu erzielen, nachdem die Integration mit AT&T erfolgreich abgeschlossen wurde.
Wichtige betriebliche Höhepunkte sind:
- Nationaler Rollout von LinkUp Mobile mit erwarteten monatlichen SIM-Kartenlieferungen von 250.000 bis 300.000
- Abgeschlossene AT&T-Integration für 4G LTE- und 5G-Drahtlosdienste
- Start des MVNE-Geschäfts im Großhandel, das drahtlose Infrastrukturservices anbietet
- Wachstum der POS-Plattform mit einem Anstieg von über 400 % bei den Einnahmen aus Prepaid-Drahtlosaufladungen vom 1. zum 2. Quartal 2024
Obwohl die Einnahmen und der Bruttogewinn 2024 durch das Ende der bundesstaatlichen ACP-Finanzierung beeinträchtigt wurden, konnte das Unternehmen einen Teil seiner drahtlosen Abonnentenbasis halten und überträgt berechtigte Kunden in das Lifeline-Programm. Die Einnahmen im ersten Quartal 2025 werden voraussichtlich konstant mit dem vierten Quartal 2024 bleiben.
- Projected revenue exceeding $200 million in next 12 months
- Expected positive cash flow from operations by end of 2025
- Monthly SIM card shipments projected at 250,000-300,000
- 400% growth in POS platform prepaid wireless top-up revenue Q1 to Q2 2024
- Launch of high-margin MVNE wholesale business
- Successful AT&T integration completed for nationwide coverage
- Revenue and gross profit declined in 2024 due to end of federal ACP funding
- Q1 2025 revenue expected to remain flat compared to Q4 2024
Insights
SurgePays' strategic pivot following the ACP funding expiration demonstrates a multi-faceted growth strategy that leverages both retail and wholesale wireless opportunities. The AT&T integration represents a significant infrastructure enhancement, providing access to premium network services that will likely improve customer experience and reduce churn for their LinkUp Mobile brand.
The projected
Their MVNE wholesale business launch is particularly noteworthy as it transforms SurgePays from purely retail-focused to a platform company - providing infrastructure services to other wireless brands creates a diversified revenue stream with typically higher margins than direct-to-consumer operations.
The
While the guidance suggests operational confidence, investors should monitor quarterly SIM card shipment volumes as the primary indicator of execution success. The transition from government-subsidized customers to commercial acquisitions represents both their greatest challenge and opportunity in 2025.
SurgePays' financial narrative centers around a transition from reliance on the government-funded ACP program to establishing sustainable commercial growth engines. The
The company's statement that Q1 2025 revenue will remain consistent with Q4 2024 suggests a stabilization period before acceleration. This phased approach to their guidance - stability followed by growth - appears realistic given the timing of their AT&T integration completion (April 1, 2025).
Particularly encouraging is the positive cash flow from operations projection before year-end 2025. For a company undergoing significant business model transition, achieving operational cash flow positivity would mark a critical financial milestone and reduce capital market dependence.
The multi-channel strategy spanning retail wireless (LinkUp Mobile), government program participants (remaining Lifeline customers), and B2B services (MVNE platform) creates revenue diversification that should improve financial stability. Each channel has different margin profiles, with MVNE typically offering the highest contribution margins.
Investors should note that the aggressive subscriber growth targets will likely require substantial working capital to finance inventory, SIM cards, and customer acquisition costs. The path to positive cash flow may involve near-term cash consumption to fuel the projected growth, making execution against the subscriber targets particularly important to monitor in quarterly results.
Completed AT&T integration positions company for its most aggressive growth phase to date with projected positive cash flow from operations in 2025
Brian Cox, Chairman and CEO, commented, "We built the infrastructure. Now we are scaling. With AT&T integration complete and LinkUp Mobile launching nationally, SurgePays is positioned for the most aggressive revenue growth phase in our history."
2024 Operational Highlights:
- Nationwide Launch of LinkUp Mobile: SurgePays has begun its national rollout of its retail prepaid wireless brand, LinkUp Mobile. The Company expects monthly SIM card shipments of 250,000–300,000, driven by robust demand from its retail distribution network of nearly 9,000 convenience and community stores.
- AT&T Integration Complete: In November 2024, SurgePays signed a multi-year strategic agreement with AT&T to deliver full access to 4G LTE and 5G wireless services across
North America . As of April 1, 2025, the integration is complete and live. - MVNE Wholesale Business Launch: SurgePays now offers wireless infrastructure services, including SIM provisioning and billing, to other wireless companies as a Mobile Virtual Network Enabler (MVNE). This high-margin revenue channel is expected to scale rapidly.
- Lifeline Subscriber Retention: Following the end of ACP funding, SurgePays retained a portion of its wireless subscriber base and is transitioning eligible customers to the federally supported Lifeline program. Daily Lifeline enrollments are ongoing through the Company's Torch Wireless brand.
- POS Platform Growth: SurgePays' point-of-sale software platform, used in thousands of retail locations, grew prepaid wireless top-up revenue over
400% from Q1 to Q2 2024. The POS platform is a critical distribution and activation tool for both LinkUp Mobile and third-party services. - Leadership Expansion: The Company strengthened its leadership team with the promotion of Mark Garner to Executive Vice President, and Allison Seyler to VP of Sales.
2024 Financial Results:
2024 marked the end of the federally funded ACP era. As expected, revenue and gross profit were impacted. However, strategic investments made during this transition — including AT&T integration, POS growth, and the development of our MVNE platform — have built the foundation for 2025's goal to return to growth and profitability.
2025 Financial Guidance:
SurgePays expects first quarter 2025 revenue to remain consistent with Q4 2024. With the national launch of LinkUp Mobile and expanding MVNE partnerships, revenue is projected to exceed
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 — we anticipate expanding both revenue and margins.
"We've earned the right to scale," added Mr. Cox. "The heavy lifting is behind us. Now we are focused on execution, revenue acceleration, and delivering long-term value to shareholders."
Fourth Quarter 2024 Results Conference Call:
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: Fourth Quarter Results Call.
Telephone access:
-
- International: 973-528-0011
- Participant Access Code: 937037
A telephone replay will be available approximately one hour following completion of the call until April 8, 2025.
Replay: 877-481-4010 (
Replay Passcode: 52151
About SurgePays, Inc.
SurgePays, Inc. is a wireless and point-of-sale (POS) technology company. SurgePays operates a unique ecosystem that blends prepaid wireless, government-subsidized mobile plans, and a point-of-sale software platform used in thousands of community retail stores. SurgePays is a platform — built for stores in underserved communities, built to scale, and built for growth. Please visit www.SurgePays.com for more information.
Cautionary Note Regarding Forward-Looking Statements
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 and profitability potential along with the statements under the heading 2025 Financial Guidance 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 revenue is projected to exceed
SurgePays, Inc. and Subsidiaries Consolidated Balance Sheets
| ||||||||
December 31, | December 31, | |||||||
Assets | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 11,790,389 | $ | 14,622,060 | ||||
Restricted cash - held in escrow | 1,000,000 | - | ||||||
Accounts receivable - net | 3,000,209 | 9,536,074 | ||||||
Inventory | 1,781,365 | 9,046,594 | ||||||
Prepaids and other | 298,360 | 161,933 | ||||||
Total Current Assets | 17,870,323 | 33,366,661 | ||||||
Property and equipment - net | 591,088 | 361,841 | ||||||
Other Assets | ||||||||
Note receivable | 176,851 | 176,851 | ||||||
Intangibles - net | 1,472,962 | 2,126,470 | ||||||
Internal use software development costs - net | - | 539,424 | ||||||
Goodwill | 3,300,000 | 1,666,782 | ||||||
Investment in CenterCom | - | 464,409 | ||||||
Operating lease - right of use asset - net | 564,781 | 387,869 | ||||||
Deferred income taxes - net | - | 2,835,000 | ||||||
Total Other Assets | 5,514,594 | 8,196,805 | ||||||
Total Assets | $ | 23,976,005 | $ | 41,925,307 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current Liabilities | ||||||||
Accounts payable and accrued expenses | $ | 3,929,195 | $ | 6,439,120 | ||||
Accounts payable and accrued expenses - related party | 192,845 | 1,048,224 | ||||||
Accrued income taxes payable | - | 570,000 | ||||||
Deferred revenue | - | 20,000 | ||||||
Operating lease liability | 248,069 | 43,137 | ||||||
Note payable - related party | 1,689,367 | 4,584,563 | ||||||
Total Current Liabilities | 6,059,476 | 12,705,044 | ||||||
Long Term Liabilities | ||||||||
Note payable - related party | 1,866,288 | - | ||||||
Notes payable - SBA government | 469,396 | 460,523 | ||||||
Operating lease liability | 319,232 | 356,276 | ||||||
Total Long Term Liabilities | 2,654,916 | 816,799 | ||||||
Total Liabilities | 8,714,392 | 13,521,843 | ||||||
Stockholders' Equity | ||||||||
Common stock, | 20,435 | 14,404 | ||||||
Additional paid-in capital | 76,842,878 | 43,421,019 | ||||||
Treasury stock - at cost (362,620 and 0 shares, respectively) | (631,967) | - | ||||||
Accumulated deficit | (60,915,427) | (15,186,203) | ||||||
Stockholders' equity | 15,315,919 | 28,249,220 | ||||||
Non-controlling interest | (54,306) | 154,244 | ||||||
Total Stockholders' Equity | 15,261,613 | 28,403,464 | ||||||
Total Liabilities and Stockholders' Equity | $ | 23,976,005 | $ | 41,925,307 | ||||
SurgePays, Inc. and Subsidiaries Consolidated Statements of Operations | ||||||||
For the Years Ended December 31, | ||||||||
2024 | 2023 | |||||||
Revenues | $ | 60,881,173 | $ | 137,141,832 | ||||
Costs and expenses | ||||||||
Cost of revenues | 75,205,372 | 101,499,341 | ||||||
General and administrative expenses | 27,458,152 | 16,777,107 | ||||||
Total costs and expenses | 102,663,524 | 118,276,448 | ||||||
Income (loss) from operations | (41,782,351) | 18,865,384 | ||||||
Other income (expense) | ||||||||
Interest expense | (554,200) | (595,975) | ||||||
Loss on lease termination - net | (194,863) | - | ||||||
Other income | 636,868 | - | ||||||
Interest income | 105,395 | - | ||||||
Realized gains - investments | 13,613 | - | ||||||
Dividends, interest, and other income - investments | 355,549 | - | ||||||
Gain on investment in CenterCom | 33,864 | 110,203 | ||||||
Impairment loss - CenterCom | (498,273) | - | ||||||
Impairment loss - internal use software development costs | (316,594) | - | ||||||
Impairment loss - goodwill | (866,782) | - | ||||||
Total other income (expense) - net | (1,285,423) | (485,772) | ||||||
Net income (loss) before provision for income taxes | (43,067,774) | 18,379,612 | ||||||
Provision for income tax benefit (expense) | (2,870,000) | 2,265,000 | ||||||
Net income (loss) including non-controlling interest | (45,937,774) | 20,644,612 | ||||||
Non-controlling interest | (208,550) | 26,709 | ||||||
Net income (loss) available to common stockholders | $ | (45,729,224) | $ | 20,617,903 | ||||
Earnings per share - attributable to common stockholders | ||||||||
Basic | $ | (2.39) | $ | 1.45 | ||||
Diluted | $ | (2.39) | $ | 1.38 | ||||
Weighted average number of shares outstanding - attributable to common stockholders | ||||||||
Basic | 19,119,181 | 14,258,172 | ||||||
Diluted | 19,119,181 | 14,922,881 | ||||||
SurgePays, Inc. and Subsidiaries Consolidated Statements of Cash Flows
| ||||||||
For the Years Ended December 31, | ||||||||
2024 | 2023 | |||||||
Operating activities | ||||||||
Net income (loss) - including non-controlling interest | $ | (45,937,774) | $ | 20,644,612 | ||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operations | ||||||||
Bad debt expense | - | 90,009 | ||||||
Depreciation and amortization | 942,450 | 935,039 | ||||||
Amortization of right-of-use assets | 126,970 | 43,483 | ||||||
Amortization of internal use software development costs | 222,830 | 129,060 | ||||||
Impairment loss - CenterCom | 498,273 | - | ||||||
Impairment loss - internal use software development costs | 316,594 | - | ||||||
Impairment loss - goodwill | 866,782 | - | ||||||
Stock issued for services | 411,740 | 1,290,024 | ||||||
Recognition of stock based compensation - unvested shares - related parties | 6,752,706 | 529,534 | ||||||
Recognition of stock-based compensation | 1,602,997 | - | ||||||
Recognition of share based compensation - options | - | 576,625 | ||||||
Recognition of share based compensation - options - related party | 6,196 | 37,176 | ||||||
Realized gain in sale of investments | (13,613) | - | ||||||
Interest expense adjustment - SBA loans | 19,750 | - | ||||||
Right-of-use asset lease payment adjustment true up | (267,347) | - | ||||||
Gain on equity method investment - CenterCom | (33,864) | (110,203) | ||||||
Cash paid for lease termination | (212,175) | - | ||||||
Loss on lease termination - net | 194,863 | - | ||||||
Changes in operating assets and liabilities | ||||||||
(Increase) decrease in | ||||||||
Accounts receivable | 6,535,865 | (395,718) | ||||||
Inventory | 7,265,229 | 2,139,648 | ||||||
Prepaids and other | (136,427) | (50,409) | ||||||
Deferred income taxes - net | 2,835,000 | (2,835,000) | ||||||
Increase (decrease) in | ||||||||
Accounts payable and accrued expenses | (2,509,925) | 654,746 | ||||||
Accounts payable and accrued expenses - related party | (356,388) | (680,497) | ||||||
Accrued income taxes payable | (570,000) | 570,000 | ||||||
Installment sale liability - net | - | (13,018,184) | ||||||
Deferred revenue | (20,000) | (223,110) | ||||||
Operating lease liability | 148,665 | (39,490) | ||||||
Net cash provided by (used in) operating activities | (21,310,603) | 10,287,345 | ||||||
Investing activities | ||||||||
Purchase of property and equipment | (518,189) | - | ||||||
Purchase of investments - net | (10,159,444) | - | ||||||
Proceeds from sale of investments | 10,173,057 | - | ||||||
Cash paid for acquisition of Clearline Mobile, Inc. assets | (2,500,000) | - | ||||||
Capitalized internal use software development costs | - | (281,304) | ||||||
Net cash used in investing activities | (3,004,576) | (281,304) | ||||||
Financing activities | ||||||||
Proceeds from stock issued for cash | 17,249,994 | - | ||||||
Proceeds from exercise of common stock warrants | 8,799,257 | 207,240 | ||||||
Cash paid as direct offering costs | (1,395,000) | - | ||||||
Repayments of loans - related party | (1,527,899) | (1,017,385) | ||||||
Repayments on notes payable | - | (1,595,167) | ||||||
Repayments on notes payable - SBA government | (10,877) | (14,323) | ||||||
Treasury shares repurchased (share buy-backs) | (631,967) | - | ||||||
Net cash provided (used in) by financing activities | 22,483,508 | (2,419,635) | ||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | (1,831,671) | 7,586,406 | ||||||
Cash, cash equivalents and restricted cash - beginning of year | 14,622,060 | 7,035,654 | ||||||
Cash, cash equivalents and restricted cash - end of year | $ | 12,790,389 | $ | 14,622,060 | ||||
Supplemental disclosure of cash flow information | ||||||||
Cash paid for interest | $ | 470,208 | $ | 222,326 | ||||
Cash paid for income tax | $ | - | $ | - | ||||
Supplemental disclosure of non-cash investing and financing activities | ||||||||
Reclassification of accrued interest - related party to note payable - related party | $ | 498,991 | $ | - | ||||
Exercise of warrants - cashless | $ | 41 | $ | - | ||||
Termination of ROU operating lease assets and liabilities | $ | 327,139 | ||||||
Right-of-use asset obtained in exchange for new operating lease liability | $ | 664,288 | $ | - | ||||
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SOURCE SurgePays
FAQ
What is SurgePays' revenue guidance for the next 12 months after their 2024 results?
When does SURG expect to achieve positive cash flow from operations?
How many monthly SIM card shipments does SURG expect for LinkUp Mobile?
What was the growth rate of SURG's POS platform prepaid wireless top-up revenue from Q1 to Q2 2024?
What strategic partnership did SURG complete in November 2024?
