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Dec 31, 2024

Surgepays Q4 2024 Earnings Report

SurgePays reported its Q4 2024 results with declining revenue and a significant net loss due to the end of ACP funding and strategic customer retention efforts.

Key Takeaways

SurgePays faced a challenging Q4-24 with revenue of $9.62M and a net loss of $19.81M, reflecting the impact of ACP funding cessation and self-funding decisions. Despite short-term losses, the company is positioning itself for future growth with the national launch of LinkUp Mobile and the completion of its AT&T integration.

Q4 revenue reached $9.62M, significantly lower due to the ACP program ending.

Net loss of $19.81M driven by self-funding efforts to retain customer base.

AT&T integration completed, paving the way for aggressive growth in 2025.

LinkUp Mobile national rollout expected to accelerate subscriber acquisition.

Total Revenue
$9.62M
Previous year: $32.3M
-70.2%
EPS
-$1.01
Previous year: $0.19
-631.6%
SIM cards shipped
250K
Retail store network
9K
Lifeline subscribers
70K
Cash and Equivalents
$11.8M
Previous year: $14.6M
-19.4%
Total Assets
$24M
Previous year: $42.1M
-43.1%

Surgepays

Surgepays

Forward Guidance

SurgePays projects revenue exceeding $200M over the next 12 months and positive cash flow before the end of 2025, fueled by LinkUp Mobile national launch and MVNE business expansion.

Positive Outlook

  • Completed AT&T integration will enhance wireless service offerings.
  • National rollout of LinkUp Mobile to drive retail growth.
  • MVNE wholesale platform expected to scale quickly with high margins.
  • Expansion of the point-of-sale platform will drive top-up revenue.
  • Positive cash flow expected before end of 2025.

Challenges Ahead

  • End of ACP funding has impacted short-term revenue and profitability.
  • Heavy reliance on successful Lifeline subscriber migration.
  • Current net losses require careful cash management.
  • High cost of self-funding customer retention strategies.
  • Potential delays in scaling MVNE partnerships could affect revenue projections.