Tue, May 13, 8:33 PM (30 days ago)
**SurgePays, Inc. (SURG) Q1 2025 Financial Performance Summary** **Financial Health and Performance Metrics:** - **Revenue:** Q1 2025 revenue was $10,577,429, down 66.3% from $31,429,135 in Q1 2024. - **Profit Margins:** Operating loss was $(7,579,902), compared to a profit of $1,751,861 in Q1 2024. - **Cash Flow:** Net cash used in operations was $(6,963,484), a significant decrease from $4,040,058 in Q1 2024. - **Earnings Changes:** Net loss available to common stockholders was $(7,635,084), compared to a profit of $1,224,595 in Q1 2024. **Quarterly Performance Discussion:** - **Revenue Trends:** The significant revenue decline is attributed to the end of the Affordable Connectivity Program (ACP) in June 2024, which impacted the Mobile Virtual Network Operators (MVNO) segment. - **Operational Impact:** The company absorbed wholesale costs for subscribers transitioned to the Lifeline program, affecting cash flow. - **Future Operations:** SurgePays is exploring strategic opportunities and initiatives to replace lost ACP funding and drive growth. **Trends and Uncertainties:** - **Market Conditions:** The company faces uncertainties due to changes in government funding programs and competitive market conditions. - **Strategic Initiatives:** SurgePays is launching new products and services, such as LinkUp Mobile SIM cards and the phone-in-a-box program, to drive subscriber growth and revenue. **Future Operations Impact:** - **Growth Strategies:** The company aims to expand its footprint in convenience stores, simplify Lifeline enrollments, and leverage data insights for targeted marketing. - **Financial Outlook:** SurgePays may require additional funding to sustain operations and achieve long-term profitability. **Ticker:** SURG **Note:** Amounts are in thousands, 000s.