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

SurgePays (NASDAQ:SURG) released its quarterly earnings data on Friday. The medical equipment provider reported ($0.51) EPS for the quarter, missing analysts’ consensus estimates of ($0.16) by ($0.35), Zacks reports. 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 Price Performance

SURG stock traded down $0.04 during trading hours on Friday, reaching $0.53. 430,974 shares of the stock were exchanged, compared to its average volume of 343,583. The firm’s 50-day moving average is $0.71 and its 200-day moving average is $1.32. The company has a market cap of $13.39 million, a price-to-earnings ratio of -0.29 and a beta of 0.32. SurgePays has a 12 month low of $0.46 and a 12 month high of $3.45.

Hedge Funds Weigh In On SurgePays

Several hedge funds have recently modified their holdings of SURG. Jones Financial Companies Lllp grew 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 acquiring an additional 51,137 shares in the last quarter. Goldman Sachs Group Inc. bought a new position in shares of SurgePays in the 1st quarter valued at about $28,000. Cetera Investment Advisers grew 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 acquiring an additional 17,200 shares in the last quarter. XTX Topco Ltd bought a new position in shares of SurgePays in the 2nd quarter valued at about $125,000. Finally, NewEdge Advisors LLC grew its holdings in shares of SurgePays by 46.2% in the 2nd quarter. NewEdge Advisors LLC now owns 19,000 shares of the medical equipment provider’s stock valued at $59,000 after acquiring an additional 6,000 shares in the last quarter. Institutional investors own 6.94% of the company’s stock.

Analyst Ratings Changes

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

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.