Surgepays (SURG) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue increased 40.7% year-over-year to $16.2M, driven by Point-of-Sale and Prepaid Services, with net income of $1.29M marking a return to GAAP profitability.

• For the six months ended June 30, 2026, revenue rose 45.7% year-over-year to $32.2M, but the company posted a net loss of $10.76M due to ongoing operational and financing challenges.

• The quarter included a non-recurring $8.5M contract settlement gain from the AT&T agreement.

• Sixth consecutive quarter of sequential revenue growth, with expectations for continued momentum in Q3.

Financial highlights

• Q2 2026 net income: $1.29M, or $0.05 EPS; six-month net loss: $10.76M.

• Q2 2026 revenue: $16.2M (up from $11.5M in Q2 2025); six-month revenue: $32.2M (up from $22.1M in 2025).

• Operating income improved by $10.3M year-over-year, from a $6.8M loss in Q2 2025 to $3.5M income in Q2 2026.

• Gross margin for Q2 2026 was approximately 18.6%, though some segments reported negative margins.

• Interest expense and debt discount amortization for the six months totaled $1.91M, up from $398K in 2025.

Outlook and guidance

• Management expects continued sequential revenue growth in Q3 and benefits from the renegotiated AT&T agreement.

• Focus remains on improving gross margins in Point-of-Sale and Prepaid Services, with MVNO margins expected to recover as new products and state expansions ramp up.

• The company is exploring strategic opportunities and additional funding to support operations, with no definitive agreements in place.