SurgePays (NASDAQ:SURG) Announces Earnings Results, Misses Expectations By $0.35 EPS

SurgePays (NASDAQ:SURG) issued its quarterly earnings results on Friday. The medical equipment provider reported ($0.51) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.16) by ($0.35), Zacks reports. SurgePays had a negative return on equity of 967.32% and a negative net margin of 63.32%.

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 Performance

SurgePays stock traded down $0.04 during trading hours on Friday, reaching $0.53. 431,014 shares of the stock were exchanged, compared to its average volume of 343,583. The stock has a market cap of $13.39 million, a P/E ratio of -0.29 and a beta of 0.32. SurgePays has a 52-week low of $0.46 and a 52-week high of $3.45. The firm’s 50 day moving average is $0.71 and its 200 day moving average is $1.32.

Hedge Funds Weigh In On SurgePays

A number of large investors have recently bought and sold shares of the company. Vanguard Group Inc. raised its position in SurgePays by 5.7% during the 3rd quarter. Vanguard Group Inc. now owns 656,900 shares of the medical equipment provider’s stock worth $1,846,000 after buying an additional 35,286 shares during the last quarter. CIBC Bancorp USA Inc. purchased a new position in SurgePays during the 3rd quarter worth $320,000. CIBC Private Wealth Group LLC purchased a new position in SurgePays during the 3rd quarter worth $211,000. Jones Financial Companies Lllp increased its holdings in shares of SurgePays by 34,091.3% in the 1st quarter. Jones Financial Companies Lllp now owns 51,287 shares of the medical equipment provider’s stock valued at $106,000 after purchasing an additional 51,137 shares in the last quarter. Finally, Cetera Investment Advisers increased its holdings in shares of SurgePays by 61.0% in the 2nd quarter. Cetera Investment Advisers now owns 45,400 shares of the medical equipment provider’s stock valued at $141,000 after purchasing an additional 17,200 shares in the last quarter. Hedge funds and other institutional investors own 6.94% of the company’s stock.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on the stock. Ascendiant Capital Markets decreased their price target on shares of SurgePays from $9.75 to $5.00 and set a “buy” rating for the company in a research note on Friday, April 17th. Zacks Research upgraded shares of SurgePays from a “strong sell” rating to a “hold” rating in a research note on Monday, February 23rd. One research analyst has rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, SurgePays presently has a consensus rating of “Hold” and an average price target of $5.00.

About SurgePays

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.