Surgepays (SURG) investor relations material

Executive summary

• Q3 2025 revenue reached $18.7 million, up 292% year-over-year and 62% sequentially, driven by Lifeline program expansion, prepaid services growth, and strong execution across synergistic revenue channels.

• Net loss for Q3 2025 was $7.5 million, an improvement from $14.3 million in Q3 2024.

• The business leverages technology and a nationwide retail network to deliver telecom and fintech products to underserved communities.

• The company shifted focus to Lifeline and prepaid services after discontinuing the lead generation segment.

• The foundation for high-margin, recurring revenue streams is established, supporting sustained growth.

Financial highlights

• Q3 2025 revenue was $18.7 million, up 292% year-over-year, with gross profit loss narrowing to $2.6 million from $7.8 million.

• SG&A expenses decreased 32.5% to $4.2 million, primarily due to lower contractor and compensation costs.

• Net loss for Q3 2025 was $7.5 million, or $(0.38) per share, improved from $(0.73) in Q3 2024.

• Cash and equivalents were $2.5 million as of September 30, 2025, down from $11.8 million or $12.8 million at year-end 2024.

• Accumulated deficit reached $83.1 million and stockholders’ deficit was $6.4 million at quarter-end.

Outlook and guidance

• 2026 revenue guidance reaffirmed at $225 million, driven by scalable technology, expanding distribution, and new product launches.

• Expect gross margin in point of sale and prepaid services to turn positive by end of 2025.

• MVNO segment gross margins anticipated to improve and return to positive results.

• Management plans to expand Lifeline into new states, grow MVNO and MVNE platforms, and increase ClearLine POS deployments.

• The company does not have sufficient cash to meet obligations for more than one year and is exploring additional funding options.