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. (NASDAQ: 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 |
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| June 30, 2026 |
December 31, 2025 |
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| (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) |
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| For the Three Months Ended June 30, | For the Six Months Ended June 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) |
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| 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 common stock | $385,880 | $ – | ||||
| Conversion of debt to common stock – related party | $707,200 | $ – | ||||
| Debt forgiveness – related party | $292,800 | $ – | ||||
| Debt discount – convertible notes payable – original issue discount | $143,333 | $ – | ||||
| Debt discount – convertible notes payable – issuance of common stock | $54,828 | $ – | ||||
| Debt discount – convertible notes payable – stated interest | $117,067 | $ – | ||||
| Debt discount – convertible note payable – embedded conversion feature (derivative liabilities) | $176,510 | $ – | ||||
| Debt discount – convertible note payable – issuance of warrants (derivative liabilities) | $294,125 | $ – | ||||
| Reclassification of derivative liability to additional paid-in capital | $208,606 | $ – | ||||
The accompanying notes are an integral part of these unaudited consolidated financial statements.
