SurgePays Inc (NASDAQ:SURG) Q2 2025 Earnings Report: Revenue and EPS Miss Estimates, Shares Drop 11%

SurgePays Inc (NASDAQ:SURG) reported its second-quarter 2025 financial results, missing analyst expectations on both revenue and earnings per share (EPS). The company posted revenue of $11.52 million, falling short of the consensus estimate of $16.46 million. Similarly, the reported EPS of -$0.36 was significantly worse than the anticipated -$0.20. The market reaction was swift, with shares dropping more than 11% in after-hours trading.

Key Takeaways from the Earnings Report

• Revenue Miss: The $11.52 million in Q2 revenue represents a 30% shortfall compared to analyst expectations. This suggests weaker-than-expected performance in either the Mobile Virtual Network Operator (MVNO) segment or the Comprehensive Platform Services division.
• Wider Losses: The EPS of -$0.36 was nearly double the estimated loss, indicating higher operational costs or lower-than-anticipated margins.
• Market Reaction: The sharp decline in after-hours trading reflects investor disappointment, particularly given the company’s ambitious growth projections for 2025 and 2026.

Revenue and Earnings Outlook

SurgePays provided updated revenue guidance, forecasting $75 million to $90 million for 2025 and $225 million to $240 million for 2026. These projections are notably higher than current analyst estimates, which place 2025 sales expectations at $96.05 million—suggesting the company may be tempering expectations despite its long-term optimism.

For Q3 2025, analysts expect revenue of $26.7 million and an EPS of -$0.10. If SurgePays fails to meet these targets, further downward pressure on the stock could follow.

Press Release Highlights

The company emphasized accelerating growth across all business verticals, particularly in its prepaid wireless and point-of-sale technology segments. However, the reported numbers indicate that this growth has yet to translate into improved financial performance. Management did not provide additional commentary on profitability improvements, which may concern investors looking for a clearer path to breakeven.

Market Sentiment and Performance

• Short-Term Weakness: The stock’s 11% drop post-earnings underscores skepticism about the company’s ability to meet its ambitious targets.
• Recent Performance: Over the past month, shares have declined by 1.4%, though they showed slight gains in the last two weeks prior to the earnings release.
• Long-Term Uncertainty: While the 2026 revenue guidance is aggressive, the lack of profitability in the near term raises questions about execution risks.

For a deeper dive into SurgePays’ earnings and analyst estimates, visit the earnings page.

Disclaimer: This article is not investment advice. Investors should conduct their own research or consult a financial advisor before making decisions.