Surgepays (SURG) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue rose 8.9% sequentially to $11.5M, but was down year-over-year due to the end of the ACP program and a strategic shift to Lifeline and prepaid services.

• Strong post-quarter momentum across all business lines, with accelerated Lifeline activations and expanded retail and MVNE platforms.

• Net loss for Q2 2025 was $7.1M, improved from $12.9M in Q2 2024, driven by cost reductions and a shift in revenue mix.

• Completed multi-year AT&T partnership, enabling direct carrier access and backend telecom infrastructure for MVNOs.

• Lead generation segment was abandoned at the end of 2024, with no material impact on ongoing operations.

Financial highlights

• Q2 2025 revenue: $11.5M, up from $10.6M in Q1 2025, but down from $15.1M year-over-year; six-month revenue: $22.1M, down from $46.5M.

• Platform service revenue grew to $9.2M in Q2 2025 from $2.5M in Q2 2024.

• Gross margin for Q2 2025 was negative 23.0%, with gross profit loss improving to $2.7M from $3.4M in Q2 2024.

• SG&A/operating expenses decreased 45% year-over-year to $4.1M–$4.2M, mainly due to lower stock compensation and professional fees.

• Net loss for Q2 2025 was $7.1M ($0.35–$0.36 per share), compared to $12.9M ($0.66 per share) in Q2 2024.

Outlook and guidance

• 2025 revenue guidance: $75M–$90M; 2026: $225M–$240M.

• Positive operating cash flow anticipated before year-end 2025, with growth driven by subscriber additions, new partnerships, and wholesale expansion.

• Focus on scaling Lifeline activations in high-margin states and leveraging MVNE platform for new wireless launches.

• Management believes current cash resources are sufficient through Q4 2025, with additional funding possible via ATM equity offering.