SurgePays Announces Sequential Revenue Growth of Over 60% for Q3 and Affirms 2026 Revenue Guidance of $225 Million

Focused execution across multiple revenue channels with Lifeline providing the quickest path to near-term profitability and ClearLine SaaS platform, fintech top-up, LinkUp, and MVNE services fueling 2026+ expansion

The Company estimates revenue for Q3 2025 to increase sequentially over 60%

BARTLETT, Tenn., Oct. 16, 2025 /PRNewswire/ -- SurgePays, Inc. (NASDAQ: SURG) ("SurgePays" or the "Company"), a wireless and point-of-sale technology company, today announces estimated sequential revenue growth of over 60% for the third quarter of 2025. The Company is also providing shareholders with an update outlining its growth strategy, multi-vertical revenue model, and long-term vision to scale its distribution platform.

"SurgePays is executing across a multi-channel growth platform – Lifeline (subsidized), LinkUp Mobile (prepaid), HERO (MVNE wholesale), prepaid top-up, and ClearLine SaaS point-of-sale. There are synergies between each of these revenue channels, not isolated initiatives, that together strengthen with every subscriber, transaction, and retailer added to the SurgePays ecosystem. We believe our strength lies in our ability to combine cutting-edge technology with a nationwide retail distribution network, bringing telecom and financial products directly to underserved communities where people live and shop. This powerful combination of technology and retail gives us a sustainable competitive advantage and positions us as a long-term leader in a large total addressable market that is very difficult to replicate," stated Brian Cox, Chairman and CEO of SurgePays.

Mr. Cox continued, "Our experienced team has been strategically investing and building since 2022 on integration with AT&T, operational infrastructure/technology, and talent. Today, the platform and development of distribution, technology, and new products are well established, supporting multiple high-margin revenue streams for years of sustained growth. This synergy generates recurring revenue, provides competitive advantages that are extremely difficult to replicate, and lays the foundation for significant year-over-year growth. During ACP, we successfully executed at scale, generating over $240 million in revenue, with significant cash flow, and demonstrated our ability to move quickly and execute effectively. We believe our opportunity now is significantly larger than the solo channel ACP run and is more scalable, sustainable, and de-risked. As previously outlined in quarterly updates, a portion of our projected growth is master distributors' projections and commitments from MVNO partners. These partners are committed and incentivized to achieve impactful active and ongoing LinkUp subscribers in 2026. While these agreements and ramp take time to fully integrate, they provide predictable additions to our recurring subscriber base—giving us strong visibility. While we believe Lifeline will certainly be the accelerator of growth in the short term, we have full confidence that our other revenue streams will scale quickly in 2026. Therefore, we remain confident in our 2026 revenue guidance of $225 million."

Update Across Each of SurgePays' Five Revenue Growth Drivers

1. Lifeline Wireless (Subsidized)

• Permanent federal program since 1985, with bipartisan support and state-level add-ons.
• Street team and online marketing and distribution model with over 125,000 subscribers so far.
• Online Model: Lower CAC, SIM-only enrollment; $9.25/month federal reimbursement.
• Street Team in higher subsidy states: Higher CAC, which includes commissions and a smartphone, but higher profitability per subscriber more closely resembles the ACP profitability model.
• Unlike temporary programs, it remains fully funded and unaffected by the current government shutdown, providing SurgePays with a stable, predictable recurring revenue base.

2. LinkUp Mobile (Prepaid)

• Affordable prepaid wireless (U.S., Mexico, Canada).
• Phone-in-a-Box: A grab-and-go kit for convenience stores; includes a smartphone, SIM, and 30-day service — a lead product for retail expansion.
• Over 75,000 recurring subscribers (SIMs) already active.
• Distribution potential through 9,000+ stores.
• We believe we are positioned to scale significantly in 2026 with recurring, unsubsidized revenue.

3.  Prepaid Wireless Top-Up (Fintech POS Platform)

• 3^rd party wireless "top-ups" transacted at the register in community stores on the SurgePays network
• Revenue grew from ~$1M to $5M/month in a little over one year.
• Point of Sale (POS) Platform processes wireless top-ups, debit reloads, and wireless activations.
• Creates daily recurring transactions and upsell opportunities for LinkUp and ClearLine.

4. HERO MVNE Services (B2B Enablement)

• "Wireless company in a box": airtime, SIM provisioning, billing, CRM, and support.
• Scales as partners grow — predictable wholesale revenue.
• Enabled by AT&T integration and the El Salvador operations center.
• 3 fully integrated MVNOs on the platform.
• Successful All Wireless and Prepaid Expo in August with the expectation to onboard and integrate new HERO clients over the next 3-6 months.

5. ClearLine (SaaS Marketing Platform)

• Customer Engagement Tools: Stand sign with QR/NFC links to retailer-branded landing pages with offers, coupons, and loyalty programs.
• Upsell SaaS Subscription: Unlocks campaign management, analytics, coupon targeting, and loyalty integrations.
• Pilot Program: Active in 17 Market Basket locations; expansion expected in 2026.
• Scalable Market: Hundreds of thousands of potential retailers beyond convenience stores — from tire shops, food trucks, restaurants, and salons.

Mr. Cox continued, "SurgePays is no longer building the foundation — the foundation is built. Now it's about execution, scale, and growth. Our immediate goal is to achieve profitability with minimal impact on the cap table and dilution. After consulting with stakeholders, consultants, and the board, management developed a strategic and methodical growth plan that would reduce the immediate cash needs and also lessen dependency on a single revenue channel. As we strive to transition from a micro-cap to a small-cap company, dilution and stock performance are always factored into our decisions, since we are shareholders too. In August and September, we deliberately moderated sales to secure additional inventory on more favorable terms and adapt to tariffs, refine operational efficiencies, and enhance systems, with the expectation of scaling up again in October. Almost a pulse growth model, allowing revenue paid in arrears to come in, while meticulously managing cash flow. While this deliberate decision slowed our growth during the third quarter compared to our original expectations, we still experienced over 60% sequential revenue growth. Our strategy is executing precisely according to plan, and nothing has changed — only the timing. I am confident that we will face unexpected challenges, but we have a highly skilled team that is well-equipped to navigate this industry. We are well-positioned to continue this strategy through the remainder of 2025, heading into 2026. We've proven we can move fast, and with our diversified platform and competitive moat, we are uniquely positioned to deliver sustainable long-term shareholder value."

Outlook:
SurgePays estimates its revenue for the third quarter of 2025 to increase sequentially by more than 60%. The Company affirms 2026 full year revenue guidance of $225 million.

This preliminary financial information is not a comprehensive statement of our financial results for this period, and our actual results may differ materially from these estimates due to the completion of our financial closing procedures, final adjustments, and other developments that may arise between now and the time the closing procedures for the fiscal quarter are completed.

About SurgePays, Inc.
SurgePays, Inc. is a wireless, fintech, and point-of-sale company focused on delivering mobile connectivity and financial services to underserved communities. As both a mobile virtual network operator (MVNO) and mobile virtual network enabler (MVNE), SurgePays operates its own wireless brand while also providing back-end infrastructure, including provisioning and billing, to other wireless providers. The Company's proprietary point-of-sale platform is used nationwide in thousands of retail locations, enabling SIM activations, top-ups, and digital financial services. SurgePays is built to scale and uniquely positioned to grow across both retail and wholesale wireless channels. Visit www.SurgePays.com for more information.

Cautionary Note Regarding Forward-Looking Statements
This press release includes express or implied statements that are not historical facts and are considered forward-looking within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. Forward-looking statements involve substantial risks and uncertainties and generally relate to future events or our future financial or operating performance. These statements may include projections, guidance, or other estimates regarding revenue, cash flow, business growth, market expansion, or customer acquisition. In some cases, you can identify forward-looking statements by the following words: "may," "will," "could," "would," "should," "expect," "intend," "plan," "anticipate," "believe," "estimate," "predict," "project," "potential," "continue," "ongoing," "attempting," or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words.

Although we believe the expectations reflected in these forward-looking statements, such as regarding our nationwide rollout of Clearline, our ability to expand installations into other stores and the high margins on Clearline, these statements relate to future events or our future operational or financial performance and involve known and unknown risks, uncertainties, and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control, including, without limitation, the assumption that the Company will be able to obtain high-margin recurring revenues, statements about our future financial performance, including our revenue, cash flows, costs of revenue and operating expenses; our anticipated growth; and our predictions about our industry and customer demand. These include, but are not limited to, our estimated quarterly revenue, our ability to scale our prepaid wireless business, further scale our Lifeline business, scale our fintech POS platform. maintain our MVNE partnerships, and achieve financial targets. The forward-looking statements contained in this release are also subject to other risks and uncertainties, including those more fully described in our filings with the Securities and Exchange Commission ("SEC"), including in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. The forward-looking statements in this press release speak only as of the date on which the statements are made. We undertake no obligation to update, and expressly disclaim the obligation to update, any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.

SOURCE Feintuch Communcations / SurgePays