SurgePays Q4 Earnings Call Highlights
by Doug Wharley · The Cerbat GemSurgePays (NASDAQ:SURG) executives highlighted a year of transition and cost reduction as the company reported fourth-quarter and full-year 2025 results, emphasizing efforts to diversify revenue streams following the mid-2024 expiration of the Affordable Connectivity Program (ACP).
On the company’s earnings call, President and CEO Brian Cox said SurgePays generated approximately $57 million in revenue for 2025, including $16.2 million in the fourth quarter. Cox described 2025 as a year that “proved operationally” the scalability of the business when capital is deployed into subscriber acquisition, while also underscoring a shift toward tighter capital discipline.
Revenue progression and the Q3 “inflection point”
Cox walked investors through quarterly revenue progression in 2025, describing steady gains from the first through third quarter before a sequential decline in the fourth quarter tied to deliberate spending decisions.
- Q1 revenue: approximately $10.6 million
- Q2 revenue: approximately $11.5 million
- Q3 revenue: approximately $18.7 million
- Q4 revenue: $16.2 million
According to Cox, the third quarter served as an “inflection point” because the company “deployed capital into subscriber acquisition” and saw a “clear step function and increase in revenue.” He said that while fourth-quarter revenue declined sequentially from Q3, the company intentionally “pull[ed] back on that level of spend and focus[ed] on capital discipline and efficiency.”
Cox also noted that the fourth quarter included items he characterized as not reflective of the company’s ongoing run rate, including “legal and certain non-cash expenses.” Interim CFO Chelsea Pullano added that fourth-quarter SG&A included approximately $2.3 million of “non-recurring expenses, including legal costs and non-cash items.”
Full-year results reflect ACP transition and shifting mix
Pullano said total revenue for the year ended Dec. 31, 2025 was approximately $57 million, compared with $60.9 million in 2024. She attributed the year-over-year decline primarily to “the expected decline in subsidized revenue following the expiration of the Affordable Connectivity Program in mid-2024.”
However, Pullano said the company saw strong performance in its point-of-sale and prepaid services segment, which increased by approximately $26.1 million year over year, partially offsetting a decline in MVNO revenue.
Cost of revenue for 2025 was approximately $67.6 million, down from $75.2 million in 2024, according to Pullano. She said gross loss improved to $10.6 million from $14.3 million the prior year, and management expects “continued improvement in gross margins” as it scales higher-margin revenue streams and benefits from the cost structure already implemented.
Expense reductions, operating loss improvement, and liquidity metrics
Management repeatedly pointed to cost actions taken during the year. Cox said full-year general and administrative expense declined to approximately $20.1 million from $27.5 million in 2024, describing the reduction as a result of actions taken after exiting the ACP period and repositioning the business.
Pullano provided additional detail, stating that selling, general, and administrative expense (excluding depreciation and amortization) declined to approximately $19.2 million from $26.3 million in 2024. She said the reduction reflected cuts across compensation, professional services, and contractor expenses.
For profitability metrics, Pullano said net loss from operations was approximately $30.7 million in 2025, improving from a $41.8 million loss in 2024.
On cash flow, Pullano said net cash used in operating activities was approximately $21.3 million for 2025, reflecting the transition after ACP ended and investments made to reposition the business. Net cash provided by financing activities was approximately $10.5 million, “primarily from the use of our at-the-market facility and additional capital raises during the year.”
SurgePays ended 2025 with approximately $1.7 million in cash, Cox said. Pullano added that the company finished the year with a working capital deficit of approximately $16.2 million, compared with a surplus of $11.8 million at the end of 2024. She said the shift reflected the post-ACP business mix and the “timing of liabilities and capital deployment,” and that the company continues to manage liquidity and capital structure with a focus on supporting growth while maintaining discipline.
2026 focus: efficiency, diversification, and capital deployment
While the company did not issue formal guidance, Cox framed 2026 as a year to combine a lower cost structure with the ability to scale when capital is deployed. He said that since year-end the company has taken “additional actions to reduce our operating expense base and improve efficiency across the organization,” estimating a current monthly cash burn at the end of Q1 2026 of approximately $250,000 to $300,000.
Cox said the company is no longer reliant on a single subsidized program and described multiple channels that include “government subsidized wireless, LinkUp Mobile prepaid, wholesale MVNE relationships, and our point-of-sale fintech and data platforms.” He argued the expanded mix “fundamentally changes the quality and durability of our revenue.”
He also cited infrastructure intended to support growth, including “an established retail footprint of more than 9,000 locations,” a customer acquisition engine through programbenefits.com, and “additional monetization layers, including wholesale and in-store media platforms.”
LinkUp Mobile highlighted as a potential growth driver
During the Q&A, Ascendiant Capital’s Ed Wu asked which products investors should be “most excited about” in 2026. Cox pointed to multiple offerings, but said, “If you had to pin me down right now, LinkUp Mobile’s doing really well.”
Cox described building the prepaid wireless offering as a “grind” focused on dealership distribution, point-of-sale materials, SIM card logistics, and training, noting that stores often carry multiple prepaid brands. He said LinkUp Mobile represents “staying power” and “cash flow,” and told investors they should begin to see “pretty significant numbers” from the business. Cox also said the company had “pretty exciting news coming up with LinkUp Mobile” that it was not ready to discuss on the call.
Wu also asked what the company is hearing from convenience store operators and customers regarding the economy. Cox said the company’s historical experience in prepaid and “underserved” markets suggests tougher economic conditions can increase consumer attention to value. He described the environment as an opportunity when consumers become more aware of spending and may be more receptive to lower-cost alternatives for essential services like wireless.
In closing remarks, Cox said 2025 was about “proving the model and resetting the foundation,” adding that management’s focus in 2026 is on execution, expense management, and disciplined capital deployment. “Our focus is on showing, not telling,” he said.
About SurgePays (NASDAQ:SURG)
SurgePays, Inc, together with its subsidiaries, operates as a financial technology and telecom company in the United States. It operates through three segments: Mobile Virtual Network Operators, Comprehensive Platform Services, and Lead Generation. The company offers subsidized and non-subsidized mobile virtual network operators for internet connectivity through mobile broadband services to consumers; ACH banking relationships and fintech transactions platform to convenience stores; wireless top-up transactions and wireless product aggregation; and lead generation and case management solutions primarily to law firms in the mass tort industry, as well as call center activities.