Persistent cash burn is highlighted by a 2026Q1 free cash flow margin of -28.5%, indicating a structural inability to fund operations through internal cash generation.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Apr'14 | Apr'12 | Apr'11 | Apr'10 | Apr'09 | Nov'07 | Nov'06 |
|---|
| Cash from Operations | -18.88M | -21.29M | -21.31M | 10.29M | 793.27K | -15.29M | -4.33M | -6.53M | -1.02M | -604.11K | -641.88K | -224.52K | 84.85K | -73.58K | -357.72K | -14.92K | -50.95K | -263.5K | -73.44K | -10.67K |
| Operating CF Margin % | - | -37.38% | -35% | 7.5% | 0.65% | -29.94% | -7.95% | -25.38% | -6.66% | -42.25% | -19.47% | -7.93% | 3.17% | -3924% | -17083.14% | -305.74% | -355.19% | -2924.48% | - | - |
| Operating CF Growth % | 106.49% | 0.08% | -307.15% | 1196.82% | 105.19% | -253.4% | 33.78% | -543.27% | -68.12% | 5.88% | -185.89% | -364.61% | 215.33% | 79.43% | -2298.08% | 70.72% | 80.67% | -258.77% | -588.58% | - |
| Net Income | -40.49M | -36.07M | -45.94M | 20.64M | -553.23K | -13.53M | -10.72M | -8.45M | -1.54M | -1.98M | -4.6M | -1.34M | 33.3K | -62.29K | -655.45K | -462.39K | -1.38M | -1.1M | -72.77K | -20.45K |
| Depreciation & Amortization | 790.11K | 1.11M | 1.29M | 1.11M | 988.7K | 917.47K | 1.37M | 282.93K | 149.64K | 119.26K | 433.12K | 501.09K | 1.36K | 108 | 130 | 1.53K | 6.94K | 5.8K | 0 | 0 |
| Stock-Based Compensation | 2.12M | 939.99K | 8.36M | 566.71K | 0 | 3.58K | 182.97K | 329.57K | 157.91K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -42.94K | 0 | 0 | 0 | 0 | 0 | 0 | 46.89K | 445.98K | -312.26K | 0 | 0 |
| Other Non-Cash Items | 6.29M | 6.58M | 1.78M | 1.85M | 179.05K | 5.5K | 899.98K | 1.45M | 63.49K | 1.49M | 3.28M | 166.65K | 5.27K | -34.48K | 0 | 12.83K | 15.41K | 806.1K | 0 | 0 |
| Working Capital Changes | 12.4M | 6.15M | 13.19M | -13.88M | 178.75K | -2.68M | 3.94M | -152.18K | 197.37K | -236.63K | 248.72K | 443.84K | 44.92K | -11.39K | 297.6K | 119.47K | 104.41K | -53.92K | -671 | 9.79K |
| Change in Receivables | -2.55M | -1.04M | 6.54M | -395.72K | -5.92M | -2.99M | 994.78K | -2.81M | -102.81K | 60.39K | 111.71K | -86.04K | 151.28K | 123 | -367 | 321 | -38.24K | -1.4K | 0 | 0 |
| Change in Inventory | 1.44M | 1.44M | 7.27M | 2.14M | -6.88M | -4.26M | -178.31K | 0 | -573.46K | 0 | 62.59K | 124.04K | 0 | 0 | 0 | 99.08K | 13.5K | -160.56K | 0 | 0 |
| Change in Payables | 13.98M | 6.28M | -2.87M | -25.75K | 154.24K | 4.81M | 2.82M | 1.47M | 925.14K | -262.02K | 427.66K | 176.32K | 0 | -48.06K | 66.76K | 24.69K | 125.11K | 125.64K | 0 | 0 |
| Cash from Investing | 0 | -18.59K | -3M | -281.3K | -1.5M | -376.72K | 8.35K | -32.24K | -278.04K | -147K | -503K | 18.33K | 0 | 0 | 0 | -4.89K | -95 | 79.69K | -3.5K | 0 |
| Capital Expenditures | 0 | -18.59K | -518.19K | -281.3K | -11.4K | -51.41K | -6.61K | -227.63K | -331.8K | -147K | -3K | -9.73K | 0 | 0 | 0 | -4.89K | -95 | -40.14K | -3.5K | 0 |
| CapEx % of Revenue | 0% | 0.03% | 0.85% | 0.21% | 0.01% | 0.1% | 0.01% | 0.88% | 2.18% | 10.28% | 0.09% | 0.34% | - | - | - | 100.29% | 0.66% | 445.52% | - | - |
| Acquisitions | 0 | 0 | -2.5M | 0 | -800K | -325.32K | 0 | 210.35K | 243.77K | 0 | 0 | 28.06K | 0 | 0 | 0 | 0 | 0 | 119.83K | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | -687.18K | 0 | 14.96K | -14.96K | -521.8K | 0 | -500K | 150K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 15.9M | 10.53M | 22.48M | -2.42M | 1.46M | 21.27M | 4.65M | 6.47M | 464.1K | 903.24K | 1.14M | 237.86K | -182.76K | 73.74K | 357.32K | 17.5K | 26.1K | 26.75K | 6K | 83K |
| Debt Issued (Net) | -3.01M | 8.88M | -1.54M | -2.63M | 1.46M | 2.2M | 4.24M | 3.26M | 446.55K | 629.24K | 243.1K | -299.88K | -197.99K | 35.01K | 392.81K | 0 | 20.1K | 13.5K | 0 | 0 |
| Equity Issued (Net) | 4.29M | 1.65M | 16.62M | 0 | 473 | 21.3M | 568.5K | 3.21M | 0 | 1.18M | 857.5K | 300.06K | 0 | 0 | 0 | 0 | 6K | 0 | 6K | 83K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | -631.97K | 0 | 0 | 0 | -500K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 14.62M | 0 | 7.4M | 207.24K | 0 | -2.22M | -162K | 0 | 17.55K | -901K | 38.5K | 237.68K | 15.22K | 38.73K | -35.49K | 17.5K | 0 | 13.25K | 0 | 0 |
| Net Change in Cash | -2.76M | -10.78M | -1.83M | 7.59M | 752.16K | 5.61M | 327.95K | -98.57K | -829.55K | 152.13K | -5.78K | 31.67K | -97.91K | 166 | -400 | -2.31K | -24.94K | -157.06K | -70.94K | 72.33K |
| Free Cash Flow | -18.88M | -21.31M | -21.83M | 10.01M | 94.69K | -15.34M | -4.33M | -6.76M | -1.35M | -751.11K | -644.88K | -234.25K | 84.85K | -73.58K | -357.72K | -19.81K | -51.04K | -303.64K | -76.94K | -10.67K |
| FCF Margin % | -30.27% | -37.41% | -35.85% | 7.3% | 0.08% | -30.04% | -7.96% | -26.26% | -8.84% | -52.53% | -19.56% | -8.27% | 3.17% | -3924% | -17083.14% | -406.03% | -355.85% | -3370% | - | - |
| FCF Growth % | 42.53% | 2.37% | -318.16% | 10467.16% | 100.62% | -254.05% | 35.91% | -401.76% | -79.39% | -16.47% | -175.29% | -376.08% | 215.33% | 79.43% | -1705.76% | 61.19% | 83.19% | -294.62% | -621.4% | - |
| FCF per Share | -0.80 | -1.06 | -1.14 | 0.67 | 0.01 | -3.50 | -2.03 | -3.51 | -0.83 | -0.49 | -0.72 | -0.35 | 4.53 | -3.93 | -19.09 | -1.20 | -3.70 | -25.28 | -404.97 | -37.56 |
| FCF Conversion (FCF/Net Income) | 0.47x | 0.59x | 0.47x | 0.50x | -1.17x | 1.13x | 0.40x | 0.77x | 0.66x | 0.31x | 0.14x | 0.17x | 2.55x | 1.32x | 0.55x | 0.03x | 0.04x | 0.24x | 1.01x | 0.52x |
| Interest Paid | 0 | 0 | 470.21K | 222.33K | 523K | 866.68K | 98.11K | 77.83K | 10.58K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 82.23K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Liquidity and Subsidy Dependence
As reported in recent financial statements, SurgePays consistently records net losses that are not fully reconciled by operating cash flow, with the OCF/NI ratio fluctuating wildly, reaching a low of 0.26 in 2025Q4, which suggests significant non-cash accounting distortions or timing mismatches in revenue recognition.
The wide gap between net income and operating cash flow indicates that the company's reported losses are being exacerbated by cash-based operational requirements. Investors should monitor whether this divergence stems from aggressive working capital consumption or the inability to convert service delivery into actual cash receipts.
Based on the provided cash flow data, SurgePays has failed to generate positive free cash flow in eight of the last ten quarters, with the 2026Q1 FCF margin of -28.5% highlighting a structural inability to fund operations through internal cash generation rather than external financing.
The persistent negative FCF trajectory suggests that the business model is currently incapable of self-sustainment without continuous capital injections. This trend warrants further investigation into whether the company can achieve a break-even point before its limited cash reserves are fully exhausted.
According to quarterly filings, working capital changes have frequently served as a primary source of cash, such as the $6.5M inflow in 2026Q1, which appears to be a temporary measure rather than a sustainable improvement in the company's underlying cash conversion cycle efficiency.
The reliance on working capital fluctuations to offset operating losses suggests that the company is managing its payables and receivables to survive short-term liquidity crunches. This behavior may indicate that the underlying business is not generating sufficient organic cash to cover its ongoing operational obligations.
As disclosed in recent SEC filings, SurgePays utilizes stock-based compensation, including a $2.1M charge in 2025Q4, which effectively masks the true cash cost of talent acquisition and complicates the assessment of the company's actual cash burn rate relative to its reported net losses.
While SBC is a non-cash expense, it represents a real economic cost to shareholders through dilution that is not captured in the operating cash flow statement. Analysts should adjust for these figures to understand the true cash-based cost of maintaining the current corporate structure.
Quick answers to the most common questions about buying SURG stock.
SurgePays, Inc. (SURG) generated $-21.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
SurgePays, Inc. (SURG) reported negative free cash flow of $21.3M in 2025, indicating capital requirements exceeded cash from operations.
SurgePays, Inc. (SURG) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.