Surgepays (SURG) investor relations material

Executive summary

• Revenue grew 51% year-over-year to $16 million in Q1 2026, driven by a 71% increase in point-of-sale and prepaid services.

• General and administrative expenses declined 25% year-over-year due to cost discipline initiatives.

• Wireless subscriber lines surpassed 200,000 across LinkUp Mobile and Torch Wireless, reflecting strong momentum in the prepaid wireless segment.

• Multiple new monetization channels and a unified acquisition platform were launched, enhancing cross-sell and upsell opportunities.

• Loss from operations increased to $11.2 million, and net loss available to common stockholders was $12.1 million, both higher than the prior year period.

Financial highlights

• Revenue for Q1 2026 was $16 million, up from $10.6 million in Q1 2025, primarily due to point-of-sale and prepaid services growth.

• General and administrative expenses declined to $3.5 million from $4.6 million year-over-year.

• Loss from operations was $11.2 million, compared to $7.6 million in the prior year period.

• Net loss available to common stockholders was $12.1 million ($0.51 per share) versus $7.6 million ($0.38 per share) in the prior year.

• Cash and cash equivalents at quarter end were $2 million; total cash equivalents and restricted cash were $2.4 million.

Outlook and guidance

• Continued revenue growth expected, driven by point-of-sale, prepaid services, and new wholesale distribution partners.

• General and administrative expenses anticipated to scale slower than revenue due to ongoing cost discipline.

• Customer acquisition engine improvements are expected to further reduce acquisition costs and increase conversion rates.

• New monetization layers and wholesale wireless revenue from HERO platform expected to contribute in Q3 2026.

• Strategic partnership with Alpha Modus progressing, with pilot underway and full market launch integration ongoing.