SurgePays, Inc. reported a significant decline in financial performance for the second quarter of 2025, with revenues totaling $11.5 million, down 23.7% from $15.1 million in the same period last year. For the first half of 2025, revenues were $22.1 million, a decrease of 52.5% compared to $46.5 million in the first half of 2024. The company attributed this decline primarily to the cessation of funding from the Affordable Connectivity Program (ACP), which had previously supported a substantial portion of its Mobile Virtual Network Operator (MVNO) revenues. The MVNO segment saw a dramatic drop in revenue, contributing only $2.3 million in Q2 2025 compared to $12.5 million in Q2 2024.
In contrast, SurgePays' Point-of-Sale and Prepaid Services segment experienced substantial growth, with revenues increasing by 258.8% to $9.2 million in Q2 2025, up from $2.6 million in the prior year. This growth was driven by an expanded sales force and a renewed focus on this segment. The company has also discontinued its lead generation segment, which had minimal impact on overall revenue.
The company's total assets decreased to $15.2 million as of June 30, 2025, down from $24.0 million at the end of 2024. Current assets also fell significantly, from $17.9 million to $9.7 million, while total liabilities increased to $15.2 million, up from $8.7 million. This increase in liabilities was largely due to the issuance of a Senior Secured Convertible Note in May 2025, which provided $6 million in net cash proceeds. The company reported a net loss of $14.7 million for the first half of 2025, compared to a loss of $11.7 million in the same period of 2024.
Operationally, SurgePays has been focusing on strategic initiatives to enhance its market presence. The company has signed a Master Services Agreement with TerraCom, allowing it to transition subscribers from the ACP program to the Lifeline program, which is expected to stabilize and potentially grow its subscriber base. Additionally, SurgePays is leveraging its HERO platform to support other wireless providers, which is anticipated to create a new revenue stream.
Looking ahead, SurgePays aims to improve its financial performance by expanding its Lifeline enrollments, enhancing its retail distribution, and increasing the deployment of its ClearLine technology. The company is also exploring various strategic opportunities to acquire businesses that align with its operational goals. However, management has expressed concerns about liquidity, indicating that without additional funding, the company may struggle to meet its obligations in the coming year.
About SurgePays, Inc.
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