SurgePays, Inc. Q1 FY26 Results

“The first quarter of 2026 is the quarter where the diversification work of the last twelve months becomes visible in the numbers. Revenue grew approximately 51% year-over-year, driven by an approximately 71% increase in point of sale and prepaid services. Additionally, the cost discipline we set in motion in 2025 reached our G&A line, which declined approximately 25% year-over-year.” “Today, SurgePays operates with multiple revenue channels. Total wireless subscriber lines across LinkUp Mobile and Torch Wireless surpassed 200,000, alongside our wholesale wireless platform relationships and our point-of-sale fintech and data platforms,” Mr. Cox continued. “With an established retail footprint of more than 9,000 locations, a customer acquisition engine through ProgramBenefits.com, additional monetization initiatives such as our Managed Marketing Services platform and our newly launched stored value and loyalty platform, and the multiyear Commercial Integration and Distribution Agreement we entered into with Alpha Modus subsequent to quarter end, we are positioned to monetize each consumer relationship across multiple revenue streams rather than just one. That is the compounding model, and Q1 is the first quarter where you can see it forming.”

Revenue for the three months ended March 31st, 2026 was $16 million compared to $10.6 million in the prior year period, an increase of approximately 51% year-over-year. The growth was driven primarily by an approximately 71% increase in our point-of-sale and prepaid services. General and administrative expenses were approximately $3.5 million in the first quarter compared to approximately $4.6 million in the prior year period, a decrease of approximately 25%. This decline reflects the cost discipline we initiated in 2025 and which is now visible in the reported results. Loss from operations was approximately $11.2 million in the first quarter compared to approximately $7.6 million in the prior year period. This change primarily reflects the mix of revenue growth against the current cost of revenue, along with increased interest expense and non-cash items. Interest expense, including amortization of debt discount, was approximately $0.9 million in the first quarter compared to approximately $0.1 million in the prior year period, reflecting the financing activity executed across the second half of 2025 and into 2026. Net loss available to common stockholders for the first quarter was approximately $12.1 million or $0.51 per basic and diluted share, compared to approximately $7.6 million or $0.38 per share in the prior year period. Turning to cash flow. Net cash used in operating activities improved to approximately $4.6 million in the first quarter compared to approximately $7.0 million in the prior year period. Net cash provided by financing activities was approximately $5 million. Net change in cash equivalents and restricted cash was a + $0.4 million for the quarter. On the balance sheet, cash and cash equivalents were approximately $2 million at March 31st, 2026, and total cash equivalents and restricted cash were approximately $2.4 million at quarter end. With that, I will turn the call back over to Brian for closing remarks.