SurgePays (NASDAQ:SURG) Releases Quarterly Earnings Results, Misses Estimates By $0.32 EPS

SurgePays (NASDAQ:SURG) announced its quarterly earnings data on Friday. The medical equipment provider reported ($0.51) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.19) by ($0.32), Zacks reports. The firm had revenue of $15.98 million for the quarter, compared to analysts’ expectations of $15.50 million. SurgePays had a negative net margin of 63.32% and a negative return on equity of 967.32%.

Here are the key takeaways from SurgePays’ conference call:

• SurgePays reported Q1 2026 revenue of $16 million, up about 51% year over year, driven mainly by a 71% increase in point-of-sale and prepaid services.
• The company said it crossed 200,000 wireless subscriber lines across LinkUp Mobile and Torch Wireless, and it is pushing growth further with a buy-one-get-one wireless promotion.
• Management highlighted a meaningful improvement in customer acquisition efficiency after moving growth marketing in-house, with cost per lead down 28%, cost per enrollment down 48%, and lead-to-enrollment conversion up 39%.
• SurgePays added six new wholesale distribution partners in the quarter, and expects initial volume from those agreements in Q2 2026, with the channel ramping through the back half of the year.
• While revenue improved, loss from operations widened to about $11.2 million and net loss was $12.1 million, reflecting current cost of revenue, higher interest expense, and non-cash items.

SurgePays Stock Down 6.9%

NASDAQ:SURG opened at $0.53 on Friday. The company has a market cap of $13.39 million, a P/E ratio of -0.27 and a beta of 0.32. SurgePays has a fifty-two week low of $0.46 and a fifty-two week high of $3.45. The firm’s 50 day moving average is $0.71 and its two-hundred day moving average is $1.32.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on SURG shares. Zacks Research raised shares of SurgePays from a “strong sell” rating to a “hold” rating in a research note on Monday, February 23rd. Ascendiant Capital Markets reduced their price objective on shares of SurgePays from $9.75 to $5.00 and set a “buy” rating on the stock in a research note on Friday, April 17th. One analyst has rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Hold” and an average price target of $5.00.

Hedge Funds Weigh In On SurgePays

Large investors have recently bought and sold shares of the stock. Goldman Sachs Group Inc. acquired a new stake in shares of SurgePays in the first quarter worth $28,000. Jane Street Group LLC acquired a new stake in shares of SurgePays in the second quarter worth $42,000. Squarepoint Ops LLC acquired a new stake in shares of SurgePays in the fourth quarter worth $52,000. NewEdge Advisors LLC increased its position in shares of SurgePays by 46.2% in the second quarter. NewEdge Advisors LLC now owns 19,000 shares of the medical equipment provider’s stock worth $59,000 after acquiring an additional 6,000 shares in the last quarter. Finally, Jones Financial Companies Lllp increased its position in shares of SurgePays by 34,091.3% in the first quarter. Jones Financial Companies Lllp now owns 51,287 shares of the medical equipment provider’s stock worth $106,000 after acquiring an additional 51,137 shares in the last quarter. Hedge funds and other institutional investors own 6.94% of the company’s stock.

SurgePays Company Profile

SurgePays, Inc, together with its subsidiaries, operates as a financial technology and telecom company in the United States. It operates through three segments: Mobile Virtual Network Operators, Comprehensive Platform Services, and Lead Generation. The company offers subsidized and non-subsidized mobile virtual network operators for internet connectivity through mobile broadband services to consumers; ACH banking relationships and fintech transactions platform to convenience stores; wireless top-up transactions and wireless product aggregation; and lead generation and case management solutions primarily to law firms in the mass tort industry, as well as call center activities.