Revenue volatility remains extreme, with quarterly figures swinging from $31.4M in 2024Q1 to $16.0M in 2026Q1, while gross margins have collapsed to -48.2%.
| 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 |
|---|
| Sales/Revenue | 62.37M | 56.96M | 60.88M | 137.14M | 121.54M | 51.06M | 54.41M | 25.74M | 15.24M | 1.43M | 3.3M | 2.83M | 2.67M | 1.88K | 2.09K | 4.88K | 14.34K | 9.01K | 0 | 0 |
| Revenue Growth % | 55.81% | -6.44% | -55.61% | 12.83% | 138.04% | -6.15% | 111.35% | 68.87% | 966.12% | -56.63% | 16.38% | 5.92% | 142538.83% | -10.46% | -57.08% | -65.98% | 59.19% | - | - | - |
| Cost of Goods Sold | 77.71M | 67.55M | 75.21M | 101.5M | 108.07M | 44.89M | 51.94M | 22.62M | 8.57M | 733.03K | 2.33M | 2.33M | 1.68M | 1.19K | 1.14K | 9.16K | 23.61K | 37.35K | 0 | 0 |
| COGS % of Revenue | - | 118.59% | 123.53% | 74.01% | 88.92% | 87.92% | 95.46% | 87.88% | 56.22% | 51.27% | 70.63% | 82.33% | 62.74% | 63.25% | 54.63% | 187.8% | 164.63% | 414.58% | - | - |
| Gross Profit | -15.34M | -10.59M | -14.32M | 35.64M | 13.47M | 6.17M | 2.47M | 3.12M | 6.67M | 696.84K | 968.28K | 500.66K | 996.57K | 689 | 950 | -4.28K | -9.27K | -28.34K | 0 | 0 |
| Gross Margin % | -24.6% | -18.59% | -23.53% | 25.99% | 11.08% | 12.08% | 4.54% | 12.12% | 43.78% | 48.73% | 29.37% | 17.67% | 37.26% | 36.75% | 45.37% | -87.8% | -64.63% | -314.58% | - | - |
| Gross Profit Growth % | - | 26.08% | -140.19% | 164.62% | 118.31% | 149.93% | -20.86% | -53.26% | 857.74% | -28.03% | 93.4% | -49.76% | 144539.33% | -27.47% | 122.18% | 53.79% | 67.29% | - | - | - |
| Operating Expenses | 22.41M | 23.55M | 27.46M | 16.78M | 12.84M | 12.16M | 12.61M | 10.89M | 8.21M | 2.77M | 3.67M | 1.72M | 965.35K | 50.17K | 652.89K | 374.16K | 879.01K | 651.11K | 72.77K | 16.91K |
| OpEx % of Revenue | - | 41.34% | 45.1% | 12.23% | 10.56% | 23.82% | 23.19% | 42.29% | 53.85% | 193.44% | 111.18% | 60.87% | 36.09% | 2675.57% | 31179.04% | 7668.72% | 6128.47% | 7226.56% | - | - |
| Selling, General & Admin | 18.94M | 20.07M | 26.29M | 15.71M | 11.91M | 11.38M | 9.69M | 9.67M | 8.06M | 2.65M | 3.23M | 1.22M | 965.35K | 50.01K | 652.76K | 372.63K | 872.06K | 645.31K | 72.77K | 16.91K |
| SG&A % of Revenue | - | 35.24% | 43.19% | 11.46% | 9.8% | 22.28% | 17.81% | 37.58% | 52.87% | 185.1% | 98.05% | 43.18% | 36.09% | 2667.09% | 31172.83% | 7637.36% | 6080.06% | 7162.2% | - | - |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 1.23M | 3.48M | 1.17M | 1.06M | 923.83K | 784.22K | 2.92M | 1.21M | 43.12K | 9.59K | 5.84K | 0 | 0 | 0 | 130 | 1.53K | 6.94K | 266 | 0 | 0 |
| Operating Income | -37.76M | -34.14M | -41.78M | 18.87M | 633.78K | -5.99M | -10.15M | -7.77M | -1.54M | -2.07M | -3.11M | -1.32M | 31.22K | -49.48K | -651.94K | -425.33K | -1.33M | -1.1M | -72.77K | -20.41K |
| Operating Margin % | -60.54% | -59.93% | -68.63% | 13.76% | 0.52% | -11.74% | -18.65% | -30.18% | -10.07% | -144.7% | -94.24% | -46.63% | 1.17% | -2638.83% | -31133.67% | -8717.67% | -9302.49% | -12178.66% | - | - |
| Operating Income Growth % | - | 18.3% | -321.48% | 2876.62% | 110.58% | 40.93% | -30.61% | -405.91% | 25.79% | 33.4% | -135.19% | -4331.56% | 163.09% | 92.41% | -53.28% | 68.12% | -21.59% | -1407.84% | -256.61% | - |
| EBITDA | -37.32M | -33.03M | -40.49M | 19.97M | 1.62M | -5.08M | -8.77M | -7.49M | -1.39M | -1.95M | -2.67M | -819.88K | 32.58K | -49.32K | -651.81K | -423.81K | -1.33M | -1.09M | -72.77K | -13.41K |
| EBITDA Margin % | -59.84% | -57.98% | -66.51% | 14.56% | 1.33% | -9.94% | -16.13% | -29.08% | -9.09% | -136.36% | -81.1% | -28.94% | 1.22% | -2630.35% | -31127.46% | -8686.31% | -9254.08% | -12114.3% | - | - |
| EBITDA Growth % | 25.42% | 18.44% | -302.72% | 1131.01% | 131.97% | 42.16% | -17.23% | -440.12% | 28.93% | 27.07% | -226.11% | -2616.66% | 166.06% | 92.43% | -53.8% | 68.07% | -21.6% | -1399.87% | -442.8% | - |
| D&A (Non-Cash Add-back) | 547.18K | 1.11M | 1.29M | 1.11M | 988.7K | 917.47K | 1.37M | 282.93K | 149.64K | 119.26K | 433.12K | 501.09K | 1.36K | 159 | 130 | 1.53K | 6.94K | 5.8K | 0 | 7K |
| EBIT | -37.86M | -34.14M | -42.51M | 18.98M | 1.41M | -6.01M | -6.77M | -8.22M | -1.32M | -1.56M | -2.94M | -1.32M | 45.35K | -14.99K | -642.32K | -425.33K | -888.28K | -679.46K | -96.26K | -23.86K |
| Net Interest Income | -2.64M | -1.94M | -448.81K | -595.98K | -1.96M | -7.52M | -3.95M | -227.02K | -140.46K | -24.02K | -1.66M | -15.2K | 2.08K | -40.63K | -13.13K | -37.06K | -48.72K | -437 | 0 | 0 |
| Interest Income | 7.04K | 63.95K | 105.39K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 14.14K | 0 | 0 | 0 | 900 | 0 | 0 | 0 |
| Interest Expense | 2.65M | 2M | 554.2K | 595.98K | 1.96M | 7.52M | 3.95M | 227.02K | 140.46K | 24.02K | 1.66M | 15.2K | 12.06K | 40.63K | 13.13K | 37.06K | 49.62K | 437 | -72.77K | 46 |
| Other Income/Expense | -2.73M | -1.93M | -1.29M | -485.77K | -1.19M | -7.54M | -575.96K | -679K | 76.62K | -2.18M | -2.33M | -15.14K | 2.08K | -6.15K | -3.51K | -83.95K | -445.98K | -418.01K | 0 | -3.5K |
| Pretax Income | -40.49M | -36.07M | -43.07M | 18.38M | -553.23K | -13.53M | -10.72M | -8.45M | -1.46M | -1.98M | -4.6M | -1.34M | 33.3K | -55.62K | -642.32K | -472.23K | -1.78M | -1.1M | 0 | -23.91K |
| Pretax Margin % | -64.91% | -63.32% | -70.74% | 13.4% | -0.46% | -26.5% | -19.71% | -32.81% | -9.57% | -138.49% | -139.54% | -47.16% | 1.25% | -2966.61% | -30674.31% | -9678.81% | -12411.88% | -12180.55% | - | - |
| Income Tax | 0 | 0 | 2.87M | -2.27M | 0 | 0 | 0 | 0 | 82.23K | 426.54K | 1.67M | 0 | 0 | 0 | -19.24K | 93.79K | 891.06K | 417.84K | 72.77K | 46 |
| Effective Tax Rate % | 0% | 0% | -6.66% | -12.32% | 0% | 0% | 0% | 0% | -5.64% | -21.54% | -36.22% | 0% | 0% | 0% | 3% | -19.86% | -50.05% | -38.07% | - | -0.19% |
| Net Income | -40.49M | -36.07M | -45.73M | 20.62M | -680.76K | -13.53M | -10.72M | -8.45M | -1.54M | -1.98M | -4.6M | -1.34M | 33.3K | -55.62K | -655.45K | -462.39K | -1.38M | -1.1M | -72.77K | -20.45K |
| Net Margin % | -64.91% | -63.32% | -75.11% | 15.03% | -0.56% | -26.5% | -19.71% | -32.81% | -10.11% | -138.49% | -139.54% | -47.16% | 1.25% | -2966.61% | -31301.29% | -9477.19% | -9642.15% | -12180.55% | - | - |
| Net Income Growth % | 25.84% | 21.12% | -321.79% | 3128.65% | 94.97% | -26.2% | -26.93% | -448.12% | 22.18% | 56.95% | -244.3% | -4112.44% | 159.86% | 91.51% | -41.75% | 66.57% | -26.02% | -1408.07% | -255.81% | - |
| Net Income (Continuing) | -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 | -55.62K | -655.45K | -462.39K | -1.38M | -1.1M | -97.63K | -20.45K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | -55.3K | -55.14K | -54.31K | 154.24K | 127.53K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -1.71 | -1.80 | -2.39 | 1.38 | -0.05 | -3.09 | -5.02 | -4.27 | -0.94 | -1.30 | -5.13 | -2.01 | 1.78 | -2.97 | -34.97 | -27.90 | -100.35 | -91.36 | -383.02 | -72.02 |
| EPS Growth % | 29.82% | 24.69% | -273.19% | 2613.66% | 98.22% | 38.45% | -17.56% | -354.26% | 27.69% | 74.66% | -155.22% | -212.92% | 159.93% | 91.51% | -25.34% | 72.2% | -9.84% | 76.15% | -431.82% | - |
| EPS (Basic) | - | -1.80 | -2.39 | 1.45 | -0.05 | -3.09 | -5.02 | -4.27 | -0.94 | -1.30 | -5.13 | -2.01 | 1.78 | -2.97 | -34.97 | -27.90 | -100.35 | -91.36 | -383.02 | -72.02 |
| Diluted Shares Outstanding | 23.7M | 20.09M | 19.12M | 14.92M | 12.4M | 4.38M | 2.13M | 1.92M | 1.63M | 1.52M | 895.93K | 664.42K | 18.74K | 18.74K | 18.74K | 16.58K | 13.78K | 12.01K | 190 | 284 |
| Basic Shares Outstanding | 23.7M | 20.09M | 19.12M | 14.26M | 12.4M | 4.38M | 2.13M | 1.92M | 1.63M | 1.52M | 895.93K | 664.42K | 18.74K | 18.74K | 18.74K | 16.58K | 13.78K | 12.01K | 190 | 284 |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Regulatory Funding and Liquidity
According to historical income statements, SurgePays has experienced extreme revenue volatility, with quarterly figures swinging from $31.4M in 2024Q1 to a low of $4.8M in 2024Q3, reflecting a business model highly sensitive to the expiration of federal programs like the Affordable Connectivity Program.
The erratic top-line performance suggests that the company lacks a stable organic growth engine, relying instead on the timing of government-subsidized wireless demand. Investors should monitor whether the recent revenue recovery to $16.0M in 2026Q1 represents a sustainable pivot or merely a temporary fluctuation in subsidy-driven volume.
As reported in financial filings, the company's gross margin has collapsed into negative territory, reaching -48.2% in 2026Q1, which indicates that the cost of delivering wireless services currently exceeds the revenue generated from those same subscribers by a significant and widening margin.
This persistent negative gross margin profile suggests a fundamental misalignment between wholesale data acquisition costs and the reimbursement rates provided by federal programs. Such a structure implies that the company is effectively subsidizing its own customer base, which appears unsustainable without a drastic shift in pricing power or cost structure.
Based on the provided income statement data, SurgePays exhibits no evidence of operating leverage, as operating losses have consistently tracked or exceeded gross losses, with the 2026Q1 operating margin of -70.1% highlighting the inability of the current scale to cover fixed corporate overhead.
The lack of efficiency in SG&A spending relative to gross profit suggests that the company's operational footprint is too large for its current revenue base. This indicates that management has yet to achieve the necessary scale to reach break-even, leaving the firm highly exposed to further liquidity depletion.
Data from recent quarters reveals that the company has struggled to maintain positive net income since 2024Q1, with net margins frequently dipping below -70%, which raises serious questions regarding the long-term viability of the business model in the absence of consistent federal funding.
Short-sellers would likely focus on the combination of negative gross margins and critically low cash reserves, which may necessitate further dilutive financing to maintain operations. The reliance on a niche, subsidy-dependent market appears to create a high-risk profile that may not be adequately compensated by the current growth trajectory.
Quick answers to the most common questions about buying SURG stock.
For fiscal year 2025, SurgePays, Inc. (SURG) reported total revenue of $57.0M.
SurgePays, Inc. (SURG) reported a net loss of $36.1M for the fiscal year ending 2025.
SurgePays, Inc. (SURG) reported an operating income of $-34.1M, resulting in an operating profit margin of -59.9%. This margin reflects the operational efficiency of the business before interest and taxes.
SurgePays, Inc. (SURG) generated $-10.6M in gross profit for the year, representing a gross profit margin of -18.6%. This demonstrates the company's core pricing power and production efficiency.