First Half Revenue Grew 45.7% to $32.19 Million While G&A Declined 9.3%
Sixth Consecutive Quarter of Sequential Revenue Growth; Company Expects Continued Momentum in Q3
BARTLETT, Tenn., Aug. 14, 2026 (GLOBE NEWSWIRE) -- SurgePays, Inc. $(SURG)$, a fintech and wireless company, today announced its financial results for the second quarter ended June 30, 2026.
"Q2 2026 marks our return to GAAP profitability, with net income available to common stockholders of $1.29 million and strong revenue growth under our new multi-channel revenue structure. Revenue of $16.20 million was 40.7% above the same quarter a year ago, and first half 2026 revenue reached $32.19 million, a 45.7% increase over the first half of 2025," said Brian Cox, Chief Executive Officer of SurgePays.
Q2 2026 Financial Highlights
-- Net income available to common stockholders was $1.29 million, or
positive earnings per common share EPS of $0.05 per share.
-- Operating income improved by $10.3 million year over year, moving from a
$6.8 million operating loss in Q2 2025 to $3.5 million of operating
income in Q2 2026.
-- Revenue of $16.20 million, up 40.7 percent year over year. First half
revenue of $32.19 million, up 45.7 percent year over year.
-- First half revenue grew 45.7 percent while first half G&A declined 9.3
percent.
"Over the past 2 years we have actively built a diversified, multi-channel revenue architecture for our business to be supported by multiple independent revenue streams. Our internal models show we are still in the early growth stages of each channel," continued Mr. Cox. "Q2 reflects the initial results of the platforms, integrations, and systems we have been building. As we look to Q3 and the balance of 2026, we expect to benefit from our first full quarter under the renegotiated AT&T agreement, continued growth across each of our sales channels, and what we anticipate being our seventh consecutive quarter of sequential revenue growth."
Subsequent Events
On August 5, 2026, the Company announced the formation of Redline Wireless Group, LLC, a joint venture with one of the largest wireless master distribution organizations in the United States, encompassing an executed dealer agreement footprint of more than 20,000 active independent prepaid wireless dealers. The new venture is expected to be cash flow positive in its first months of operations.
On August 11, 2026, the Company announced continued growth in its smartphone rent-to-own program with All Prepaid, LLC, dba LowWeeklyPayments ("LWP"). Retailer sales through the program reached approximately $176,000 in July, a 23% increase over June sales of $142,725. Based on this performance, the Company has initiated discussions with LWP regarding a potential joint venture to support the program's continued expansion.
About SurgePays
SurgePays, Inc. (NASDAQ: SURG) is a wireless and fintech company operating four verticals: LinkUp Mobile in prepaid wireless, Torch in subsidized wireless, HERO MVNE providing wholesale wireless services and joint ventures with other operators, and the SurgePays POS platform enabling 3rd party transactions at the register across a nationwide network of independent retailers. The company's edge comes from four assets that compound together: favorable wireless economics under the restructured carrier agreements, a proprietary technology platform spanning wireless and POS, a nationwide independent retail footprint, and a highly trained 150 seat bilingual service center in El Salvador. The same combination that drives SurgePays' organic growth also makes the company a turnkey partner for distributors, wireless operators, and joint venture counterparties who want to plug in and scale. Learn more at www.surgepays.com and ir.surgepays.com.
Forward Looking Statements
This press release contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward looking statements include, without limitation, statements regarding the Company's expected sales growth across its channels, the Company's ability to extend sequential revenue growth, the Company's platform scaling, and other statements that are not historical facts. Forward looking statements are based on management's current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results to differ materially. Factors that could cause actual results to differ include, without limitation, the Company's ability to scale subscriber count, the terms and performance of MVNE partnerships, regulatory changes affecting subsidized wireless programs and universal service programs, changes in consumer demand, competitive dynamics in prepaid wireless and retail platform services, and the additional risk factors described in the Company's filings with the Securities and Exchange Commission, including the most recent Annual Report on Form 10 K and subsequent Quarterly Reports on Form 10 Q. Forward looking statements speak only as of the date of this release. The Company disclaims any obligation to update forward looking statements, except as required by law.
Investor Relations Contact
SurgePays, Inc.
ir@surgepays.com
Company Contact
SurgePays, Inc.
3124 Brother Blvd., Suite 104
Bartlett, TN 38133
www.surgepays.com
SurgePays, Inc. and Subsidiaries
Consolidated Balance Sheets
June 30, 2026 December 31, 2025
(Unaudited)
----------------------------------- -------------- -------------------
Assets
Current Assets
Cash and cash equivalents $1,954,235 $1,731,400
Restricted cash - accounts
receivable factoring facility $425,049 $281,811
Accounts receivable - net $1,828,586 $4,045,162
Inventory $253,858 $339,570
Prepaids and other $396,367 $581,823
----------------------------------- -------------- -----------------
Total Current Assets $4,858,095 $6,979,766
Property and equipment - net $349,834 $403,517
Other Assets
Accounts receivable - net $3,331,221 $ -
Intangibles - net $492,399 $819,153
Operating lease - right of use
asset - net $206,891 $313,410
----------------------------------- -------------- -----------------
Total Other Assets $4,030,511 $1,132,563
Total Assets $9,238,440 $8,515,846
----------------------------------- -------------- -----------------
Liabilities and Stockholders' Deficit
Current Liabilities
Accounts payable and accrued
expenses $10,142,634 $10,219,011
Accounts payable and accrued
expenses - related party $835,724 $117,546
Operating lease liability $212,314 $219,997
Notes payable - SBA government $17,424 $11,407
Notes payable $2,245,324 $1,834,008
Note payable - related party $1,730,796 $2,730,796
Convertible notes payable - net $9,869,374 $3,068,878
Derivative liabilities $1,107,421 $ -
----------------------------------- -------------- -----------------
Total Current Liabilities $26,161,011 $18,201,643
Long Term Liabilities
Notes payable - SBA government $435,862 $446,927
Operating lease liability $ - $99,235
Convertible notes payable - net $3,390,992 $5,170,860
----------------------------------- -------------- -----------------
Total Long Term Liabilities $3,826,854 $5,717,022
Total Liabilities $29,987,865 $23,918,665
Stockholders' Deficit
Common stock, $0.001 par value,
500,000,000 shares authorized
27,207,618 and 21,847,927
shares issued and 24,190,822
and 21,151,974 shares
outstanding, at June 30, 2026
and December 31, 2025,
respectively $27,211 $21,852
Additional paid-in capital $88,657,683 $83,246,736
Treasury stock - at cost (695,953
and 695,953 shares,
respectively) $(1,631,966) $(1,631,966)
Accumulated deficit $(107,746,831) $(96,984,297)
Stockholders' deficit $(20,693,903) $(15,347,675)
Non-controlling interest $(55,522) $(55,144)
----------------------------------- -------------- -----------------
Total Stockholders' Deficit $(20,749,425) $(15,402,819)
Total Liabilities and
Stockholders' Deficit $9,238,440 $8,515,846
----------------------------------- -------------- -----------------
The accompanying notes are an integral part of these unaudited consolidated financial statements.
SurgePays, Inc. and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
For the Three Months Ended For the Six Months Ended June
June 30, 30,
-------------------------- -------------------------- ------------------------------
2026 2025 2026 2025
-------------------------- ------------ ------------ ------------- -------------
Revenues $16,204,821 $11,518,166 $32,188,804 $22,095,596
Costs and expenses
Cost of revenues $16,629,992 $14,172,832 $40,311,533 $27,692,607
General and
administrative
expenses $4,634,054 $4,155,843 $8,137,066 $8,793,401
Gain on contract
settlement $(8,511,672) $ - $(8,511,672) $ -
-------------------------- ------------ ------------ ------------- -------------
Total costs and expenses $12,752,374 $18,328,675 $39,936,927 $36,486,008
Income (loss) from
operations $3,452,447 $(6,810,509) $(7,748,123) $(14,390,412)
Other income (expense)
Interest expense
(including amortization
of debt discount) $(1,026,341) $(279,306) $(1,907,348) $(398,740)
Loss on present value
measurement of
long-term accounts
receivable $(415,067) $ - $(415,067) $ -
Accretion of discount on
accounts receivable $132,727 $ - $132,727 $ -
Other income $20,290 $ - $20,290 $6,785
Interest income $ - $7,008 $ - $64,267
Derivative expense $(1,168,511) $ - $(1,168,511) $ -
Change in fair value of
derivative liabilities $292,577 $ - $323,120 $ -
Total other income
(expense) - net $(2,164,325) $(272,298) $(3,014,789) $(327,688)
Net income (loss) before
provision for income
taxes $1,288,122 $(7,082,807) $(10,762,912) $(14,718,100)
Provision for income tax
benefit (expense) $ - $ - $ - $ -
Net loss including
non-controlling
interest $1,288,122 $(7,082,807) $(10,762,912) $(14,718,100)
Non-controlling interest $(227) $(209) $(378) $(418)
-------------------------- ------------ ------------ ------------- -------------
Net income (loss)
available to common
stockholders $1,288,349 $(7,082,598) $(10,762,534) $(14,717,682)
-------------------------- ------------ ------------ ------------- -------------
Income (loss) per share
- attributable to common
stockholders
Basic $0.05 ($0.36) ($0.43) ($0.74)
Diluted $0.05 ($0.36) ($0.43) ($0.74)
Weighted average number
of shares outstanding -
attributable to common
stockholders
Basic 25,921,696 19,889,442 24,818,862 19,978,690
Diluted 25,921,696 19,889,442 24,818,862 19,978,690
The accompanying notes are an integral part of these unaudited consolidated financial statements.
SurgePays, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
For the Six Months Ended June 30,
--------------------------- -------------------------------------------
2026 2025
Operating activities
Net loss - including
non-controlling
interest $(10,762,912) $(14,718,100)
Adjustments to reconcile
net loss to net cash used
in operations
Depreciation and
amortization $380,437 $479,689
Amortization of
right-of-use assets $106,519 $123,556
Amortization of debt
discount/debt issue
costs $930,509 $66,887
Stock issued for services $843,935 $ -
Stock issued for services
- related party $657,900 $ -
Recognition of stock
based compensation -
related parties $ - $310,238
Recognition of share
based compensation -
options $15,574 $ -
Recognition of share
based compensation -
options - related party $110,208 $ -
Change in fair value of
derivative liabilities $(323,119) $ -
Derivative expense $1,168,511 $ -
Accretion of discount on
accounts receivable $(132,727) $ -
Loss on present value
measurement of long-term
accounts receivable $415,067 $ -
Changes in operating
assets and liabilities
(Increase) decrease in
Accounts receivable $(1,396,985) $319,496
Inventory $85,712 $(629,452)
Prepaids and other $185,456 $99,957
Increase (decrease) in
Accounts payable and
accrued expenses $(76,377) $1,179,207
Accounts payable and
accrued expenses -
related party $718,178 $(192,845)
Operating lease liability $(106,918) $(121,052)
Net cash used in
operating activities $(7,181,032) $(13,082,419)
--------------------------- -------------------------- -------------
Investing activities
Purchase of leasehold
improvements $ - $(18,590)
Net cash used in
investing activities $ - $(18,590)
--------------------------- -------------------------- -------------
Financing activities
Proceeds from common
stock issued for cash $2,514,375 $ -
Cash paid as direct
offering costs - common
stock $(375,000) $ -
Proceeds from issuance of
notes payable $954,272 $ -
Repayments of notes
payable $(585,994) $ -
Proceeds from issuance of
convertible notes
payable $5,070,000 $6,000,000
Cash paid as direct
offering costs -
convertibles note
payable $(25,500) $(595,000)
Repayments of loans -
related party $ - $(684,419)
Repayments on notes
payable - SBA
government $(5,048) $(5,512)
Net cash provided by
financing activities $7,547,105 $4,715,069
--------------------------- -------------------------- -------------
Net increase (decrease)
in cash, cash
equivalents and
restricted cash $366,073 $(8,385,940)
Cash, cash equivalents
and restricted cash -
beginning of period $2,013,211 $12,790,389
--------------------------- -------------------------- -------------
Cash, cash equivalents
and restricted cash -
end of period $2,379,284 $4,404,449
--------------------------- -------------------------- -------------
Cash and cash equivalents $1,954,235 $4,404,449
Restricted cash -
accounts receivable
factoring facility $425,049 $ -
Total cash, cash
equivalents, and
restricted cash $2,379,284 $4,404,449
--------------------------- -------------------------- -------------
Supplemental disclosure
of cash flow information
Cash paid for interest $76,379 $188,244
Cash paid for income tax $ - $ -
Supplemental disclosure
of non-cash investing
and financing
activities
Conversion of debt to $385,880 $ -
common stock
Conversion of debt to $707,200 $ -
common stock - related
party
Debt forgiveness - $292,800 $ -
related party
Debt discount - $143,333 $ -
convertible notes
payable - original issue
discount
Debt discount - $54,828 $ -
convertible notes
payable - issuance of
common stock
Debt discount - $117,067 $ -
convertible notes
payable - stated
interest
Debt discount - $176,510 $ -
convertible note payable
- embedded conversion
feature (derivative
liabilities)
Debt discount - $294,125 $ -
convertible note payable
- issuance of warrants
(derivative
liabilities)
Reclassification of $208,606 $ -
derivative liability to
additional paid-in
capital
The accompanying notes are an integral part of these unaudited consolidated financial statements.