Surgepays (SURG) Q1 2026 earnings summary

Executive summary

• Revenue grew 51.1% year-over-year to $15.98 million in Q1 2026, driven by a 71% increase in point-of-sale and prepaid services, despite a decline in MVNO revenues due to a temporary pause in new user intake.

• General and administrative expenses declined 25% year-over-year due to cost discipline initiatives.

• Wireless subscriber lines surpassed 200,000, reflecting successful scaling of the prepaid wireless business.

• Loss from operations increased to $11.2 million, and net loss available to common stockholders was $12.1 million, both higher than the prior year period.

• Gross margin declined to -48.2% from -27.8% year-over-year, mainly due to a shift in revenue mix and higher cost of revenues in the prepaid segment.

Financial highlights

• Revenue for Q1 2026 was $15.98 million, up from $10.6 million in Q1 2025.

• Net loss available to common stockholders was $12.1 million ($0.51 per share) versus $7.6 million ($0.38 per share) in the prior year.

• Loss from operations increased to $11.2 million from $7.6 million year-over-year.

• Net cash used in operating activities improved to $4.6 million from $7.0 million year-over-year.

• Cash and cash equivalents at quarter end were $2.0 million; total cash equivalents and restricted cash were $2.4 million.

Outlook and guidance

• Continued revenue growth expected, driven by point-of-sale, prepaid services, and new wholesale distribution partners.

• General and administrative expenses anticipated to scale slower than revenue due to ongoing cost discipline.

• Customer acquisition engine improvements are expected to further reduce acquisition costs and increase conversion rates.

• New monetization layers and wholesale wireless revenue from HERO platform expected to contribute in Q3 2026.

• Strategic partnership with Alpha Modus progressing, with pilot underway and full market launch integration ongoing.