SurgePays Revenue for the Third Quarter 2025 Increases 292% Year-Over-Year and 62% Sequentially

Third quarter 2025 revenue totaled approximately $18.7 million, an increase of 292% year-over-year and 62% sequentially

Company is reiterating revenue guidance for 2026 of $225 million

Conference call today at 5:00 p.m. ET

BARTLETT, Tenn., Nov. 12, 2025 (GLOBE NEWSWIRE) -- SurgePays, Inc. (Nasdaq: SURG) (“SurgePays” or the “Company”), a wireless and fintech technology company connecting subprime and underserved consumers to essential mobile and financial services, today announced revenue growth of 292% year-over-year and 62% sequentially to $18.7 million for the third quarter ended September 30, 2025. The Company is reiterating revenue guidance of $225 million for 2026.

“The 2025 third quarter represented an important inflection point for our multi-channel growth platform, which yielded revenue growth of 292% year-over-year and 62% sequentially,” said Brian Cox, President and CEO. “Each of our revenue channels are synergistic, not isolated initiatives, that together strengthen with every subscriber, transaction, and retailer added to our ecosystem. We believe our strength lies in our ability to combine cutting-edge technology with a nationwide retail distribution network, bringing telecom and fintech products directly to underserved communities where people live and shop. This powerful combination of technology and retail provides us with a sustainable competitive advantage, positioning us as a long-term leader in a large, total addressable market that is very difficult to replicate. Today, the platform and development of distribution, technology, and new products are well established, and will support higher margin revenue streams for years of sustained growth. This synergy generates recurring revenue, provides competitive advantages that are extremely difficult to replicate, and lays the foundation for significant year-over-year growth.”

Mr. Cox concluded, “As we continue to scale our platform and expand our leadership across the subprime and underserved markets, we are confident in our ability to deliver strong growth and achieve our 2026 revenue guidance of $225 million.”

Third Quarter 2025 and Subsequent Operational Highlights:

Torch Wireless, SurgePays’ Lifeline-subsidized brand, continued to be a key growth driver during the 2025 third quarter, with revenue growth to $5.6 million, with over 125,000 subscribers.LinkUp Mobile, the Company’s affordable prepaid wireless brand, was fully launched in April and surpassed 95,000 recurring active subscribers by the end of the third quarter. This growth was driven by expanded retail distribution, targeted marketing, and competitive pricing, reinforcing SurgePays’ ability to capture market share in the prepaid wireless segment.“Phone-in-a-Box” kits and prepaid services through major distribution partners, including HT Hackney, which services more than 40,000 retail locations. The Company’s near-term goal is to expand to 100,000 retail locations operating on the SurgePays platform, driven by both organic growth and new distribution agreements.MVNE (HERO) Wholesale: Onboarded three MVNO partners to date, with additional partnerships in progress. This high-margin business model benefits from minimal incremental cost and offers significant scalability through direct carrier access.Growth Marketing & Data Partnerships: Relaunched legacy DigitizeIQ assets into a modern intake and monetization engine focused on underserved consumer marketing, designed to lower subscriber acquisition cost, and add high-margin revenue streams.

Third Quarter 2025 Financial Highlights:

Net Revenue totaled $18.7 million, compared to $4.8 million in Q3 2024, an increase of 292% year-over-year and 62% sequentially.Gross Profit loss improved to $(2.6) million, compared to $(7.8) million in Q3 2024.SG&A improved to $4.2 million, compared to $6.2 million in Q3 2024, an improvement of 32.5% year-over-year.As of November 10, 2025, SurgePays had 20,431,549 shares of common stock outstanding.

2026 Guidance:
SurgePays reaffirms its 2026 revenue guidance of $225 million, supported by continued Lifeline subscriber growth, expansion of prepaid/retail distribution, additional MVNE partners, and ClearLine monetization.

Third Quarter 2025 Financial Results Conference Call
Date: Wednesday, November 12, 2025
Time: 5:00 p.m. ET
Dial-in Number: 1-888-506-0062
Access Code: 350444
Webcast: https://ir.surgepays.com/company-events

Replay of the webcast will be available for a one year period.

About SurgePays, Inc.
SurgePays, Inc. (NASDAQ: SURG) is a wireless, fintech, and point-of-sale technology company focused on connecting subprime and underserved communities to essential mobile and financial services. The company operates its own wireless brands and proprietary point-of-sale platform, which is deployed nationwide in thousands of retail locations, enabling SIM activations, top-ups, and digital financial transactions.

Building on its nationwide wireless and fintech network, SurgePays is expanding into data-driven marketing and digital partnerships designed to convert verified consumer engagement into recurring, high-margin revenue streams. The company is uniquely positioned to grow across both retail and online channels while evolving into a leading data intelligence and digital marketplace platform serving America’s underserved population.

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 guidance for 2026, revenue, margins, expectations for customer demand, and profitability potential 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 the Company will be able to obtain high-margin recurring revenues, statements about our revenue guidance for 2026 and future financial performance, including our revenue, cash flows, costs of revenue and operating expenses; our anticipated growth; and our predictions about our industry and customer demand. These include, but are not limited to, our ability to scale our prepaid wireless business, transition ACP subscribers to Lifeline, maintain our MVNE partnerships, and achieve financial targets. The forward-looking statements contained in this release are also subject to other risks and uncertainties, including those more fully described in our filings with the Securities and Exchange Commission (“SEC”), including in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. The forward-looking statements in this press release speak only as of the date on which the statements are made. We undertake no obligation to update, and expressly disclaim the obligation to update, any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.

Investor Relations Contact:
Valter Pinto, Managing Director
KCSA Strategic Communications
212.896.1254
[email protected]

SurgePays, Inc. and Subsidiaries
Consolidated Balance Sheets September 30, 2025 December 31, 2024 (Unaudited) (Audited) Assets Current Assets Cash and cash equivalents$2,514,862 $11,790,389 Restricted cash - line of credit reserve 224,947 - Restricted cash - held in escrow - 1,000,000 Accounts receivable - net 4,291,222 3,000,209 Inventory 1,917,617 1,781,365 Prepaids and other 278,532 298,360 Total Current Assets 9,227,180 17,870,323 Property and equipment - net 430,352 591,088 Other Assets Note receivable 176,851 176,851 Intangibles - net 982,606 1,472,962 Goodwill 3,300,000 3,300,000 Operating lease - right of use asset - net 377,912 564,781 Total Other Assets 4,837,369 5,514,594 Total Assets$14,494,901 $23,976,005 Liabilities and Stockholders’ Equity (Deficit) Current Liabilities Accounts payable and accrued expenses$8,335,599 $3,929,195 Accounts payable and accrued expenses - related party 200,240 192,845 Operating lease liability 227,005 248,069 Notes payable 1,822,426 - Note payable - related party 1,968,468 1,689,367 Convertible notes payable - net 5,120,308 - Total Current Liabilities 17,674,046 6,059,476 Long Term Liabilities Note payable - related party 762,328 1,866,288 Notes payable - SBA government 461,248 469,396 Operating lease liability 157,183 319,232 Convertible notes payable - net 1,864,576 - Total Long Term Liabilities 3,245,335 2,654,916 Total Liabilities 20,919,381 8,714,392 Stockholders’ Equity (Deficit) Common stock, $0.001 par value, 500,000,000 shares authorized 20,761,231 and 20,431,549 shares issued and 20,065,278 and 20,068,929 shares outstanding, at September 30, 2025 and December 31, 2024, respectively 20,765 20,435 Additional paid-in capital 78,363,849 76,842,878 Treasury stock - at cost (695,953 and 362,620 shares, respectively) (1,631,966) (631,967)Accumulated deficit (83,122,177) (60,915,427)Stockholders’ equity (deficit) (6,369,529) 15,315,919 Non-controlling interest (54,951) (54,306)Total Stockholders’ Equity (Deficit) (6,424,480) 15,261,613 Total Liabilities and Stockholders’ Equity (Deficit)$14,494,901 $23,976,005

SurgePays, Inc. and Subsidiaries
Consolidated Statements of Operations
(Unaudited) For the Three Months Ended September 30, For the Nine Months Ended September 30, 2025 2024 2025 2024 Revenues$18,680,317 $4,769,697 $40,775,913 $51,284,531 Costs and expenses Cost of revenues 21,276,771 12,602,057 48,969,378 54,377,300 General and administrative expenses 4,353,684 6,448,402 13,147,086 20,312,185 Total costs and expenses 25,630,455 19,050,459 62,116,464 74,689,485 Loss from operations (6,950,138) (14,280,762) (21,340,551) (23,404,954) Other income (expense) Interest expense (424,665) (112,814) (756,518) (362,119)Loss on lease termination - (194,862) - (194,862)Interest income - 183,537 63,913 183,537 Other income - 239 7,140 637,107 Unrealized gains - investments - 38,292 - 38,292 Dividends, interest and other income - investments - 86,626 - 86,626 Gain on investment in CenterCom - - - 33,864 Amortization of debt discount (114,492) - (181,379) - Total other income (expense) - net (539,157) 1,018 (866,844) 422,445 Net loss before provision for income taxes (7,489,295) (14,279,744) (22,207,395) (22,982,509) Provision for income tax benefit (expense) - - - (2,970,000) Net loss including non-controlling interest (7,489,295) (14,279,744) (22,207,395) (25,952,509) Non-controlling interest (227) (4,397) (645) (35,992) Net loss available to common stockholders$(7,489,068) $(14,275,347) $(22,206,750) $(25,916,517) Earnings per share - attributable to common stockholders Basic$(0.38) $(0.73) $(1.11) $(1.37)Diluted$(0.38) $(0.73) $(1.11) $(1.37) Weighted average number of shares outstanding - attributable to common stockholders Basic 19,839,159 19,689,010 19,931,668 18,940,689 Diluted 19,839,159 19,689,010 19,931,668 18,940,689

SurgePays, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited) For the Nine Months Ended September 30, 2025 2024 Operating activities Net loss - including non-controlling interest$(22,207,395) $(25,952,509)Adjustments to reconcile net loss to net cash used in operations Depreciation and amortization 669,682 693,880 Amortization of right-of-use assets 186,869 70,857 Amortization of debt discount/debt issue costs 181,379 - Amortization of internal use software development costs - 167,121 Stock issued for services 25,830 411,740 Recognition of stock based compensation - unvested shares - related parties 526,125 6,237,976 Recognition of share based compensation - options - related party - 6,196 Interest expense adjustment - SBA loans - 19,750 Right-of-use asset lease payment adjustment true up - (148,584)Gain on equity method investment - CenterCom - (33,864)Cash paid for lease termination - (212,175)Loss on lease termination - net - 194,862 Changes in operating assets and liabilities (Increase) decrease in Accounts receivable (1,291,013) 8,022,078 Inventory (136,252) 683,456 Prepaids and other 19,828 (150,746)Deferred income taxes - net - 2,835,000 Increase (decrease) in Accounts payable and accrued expenses 4,471,860 (5,765,152)Accounts payable and accrued expenses - related party 7,395 (86,857)Accrued income taxes payable - (470,000)Deferred revenue - (20,000)Operating lease liability (183,113) 84,257 Net cash used in operating activities (17,728,805) (13,412,714) Investing activities Purchase of leasehold improvements (18,590) - Advances made for construction-in-process costs - (518,189)Purchase of investments - net - (10,068,506)Net cash used in investing activities (18,590) (10,586,695) Financing activities Proceeds from stock issued for cash 649,383 17,249,994 Proceeds from exercise of common stock warrants - 8,799,257 Cash paid as direct offering costs - common stock (58,880) (1,395,000)Proceeds from issuance of notes payable 2,274,698 - Proceeds from issuance of convertible notes payable 6,700,000 - Cash paid as direct offering costs - convertibles note payable (602,500) - Repayments of loans - related party (824,859) (1,132,074)Repayments on notes payable (657,826) - Repayments on notes payable - SBA government (8,148) (8,138)Treasury shares repurchased (share buy-backs) - (485,131)Net cash provided by financing activities 7,471,868 23,028,908 Net decrease in cash, cash equivalents and restricted cash (10,275,527) (970,501) Cash, cash equivalents and restricted cash - beginning of period 12,790,389 14,622,060 Cash, cash equivalents and restricted cash - end of period$2,514,862 $13,651,559 Supplemental disclosure of cash flow information Cash paid for interest$264,510 $372,579 Cash paid for income tax$- $- Supplemental disclosure of non-cash investing and financing activities Reserve deposit - amount withheld from lender$224,947 $- Treasury stock reacquired in connection with convertible debt financing$999,999 $- Debt discount - convertible notes payable - original issue discount$70,000 Debt discount - convertible notes payable - issuance of common stock$85,800 Debt discount - convertible notes payable - issuance of warrants$227,587 Stock issued in settlement of accounts payable$65,456 $- Reclassification of accrued interest - related party to note payable - related party$- $498,991 Exercise of warrants - cashless$- $41 Termination of ROU operating lease assets and liabilities$- $309,826 Goodwill (ClearLine Mobile, Inc.)$- $2,500,000 Right-of-use asset obtained in exchange for new operating lease liability$- $98,638