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SURG — Surgepays News Story

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SurgePays Q2 revenue rises on smartphone rent-to-own program growth

SurgePays Q2 revenue rises on smartphone rent-to-own program growth


Overview

  • US fintech and wireless firm's Q2 revenue rose 41% yr/yr, returning to GAAP profitability

  • Q2 net income reached $1.29 mln with EPS of $0.05

  • Company formed Redline Wireless Group JV, targeting 20,000 prepaid wireless dealers


Outlook

  • Company expects continued momentum in Q3 and the balance of 2026

  • SurgePays anticipates seventh straight qtr of sequential revenue growth

  • Company expects Redline Wireless joint venture to be cash flow positive in initial months


Result Drivers

  • MULTI-CHANNEL REVENUE STRUCTURE - Co said revenue growth was driven by its diversified, multi-channel revenue architecture, with each channel in early growth stages, per CEO Brian Cox

  • COST CONTROL - Co reported a 9.3% decline in first half general and administrative expenses, contributing to improved profitability

  • RENT-TO-OWN PROGRAM GROWTH - Co cited continued growth in its smartphone rent-to-own program, with July retailer sales up 23% over June


Company press release: ID:nGNX2ywyDy


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

Beat

$16.20 mln

$13.80 mln (1 Analyst)

Q2 EPS

$0.05

Q2 Net Income

$1.29 mln


Analyst Coverage

  • The one available analyst rating on the shares is "buy"

  • The average consensus recommendation for the integrated telecommunications services peer group is "buy"

  • Wall Street's median 12-month price target for Surgepays Inc is $3.50, about 1,319.3% above its August 13 closing price of $0.25


Reuters Recommended Reads

  • Aug 12 - Usio Q2 revenue slightly beats estimates; FY26 outlook lifted

  • Aug 14 - Mobilezone H1 revenue rises on e-commerce, MVNO growth

  • Aug 13 - Singapore's TeleChoice H1 profit nearly doubles on growth in PCS division


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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