Surgepays (SURG) Q4 2024 earnings summary

Executive summary

• Investments since 2021 and completed AT&T integration have positioned the company for significant revenue acceleration and a clear path to sustainable, positive cash flow within 12 months.

• Over $250 million in revenue and 285,000+ wireless subscribers were generated during the ACP period, with a retail network of nearly 9,000 stores established.

• The company is now more efficient and diversified, focusing on underserved communities and spanning wireless and POS software segments.

• Leadership team strengthened and expanded to support scaling, with infrastructure and operations ready for rapid growth.

• Transitioned from the federally funded ACP era, with strategic investments in POS and MVNE platforms.

Financial highlights

• 2024 revenue was $60.9 million, down 56% from $137.1 million in 2023, mainly due to the ACP shutdown.

• Net loss for 2024 was $45.7 million ($2.39 per share), compared to net income of $20.6 million in 2023.

• Gross loss of $14.3 million in 2024 versus $35.6 million gross profit in 2023, reflecting the ACP wind-down and strategic transition costs.

• SG&A expenses rose 57% year-over-year, driven by non-cash stock compensation and increased contractor/consultant fees.

• Cash and equivalents at year-end 2024 were $12.8 million, down from $14.6 million at end of 2023.

Outlook and guidance

• Revenue for the next 12 months is projected to exceed $200 million, driven by LinkUp Mobile and MVNE partnerships.

• Q1 2025 revenue expected to be similar to Q4 2024, with a significant ramp starting in Q2.

• Positive cash flow from operations anticipated before the end of 2025, with momentum into 2026.