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SurgePays, Inc. (SURG) Fundamental Analysis & AI Grade 2026

SURG Nasdaq Telephone Communications (No Radiotelephone) NV CIK: 0001392694
Updated This Month • Analysis: May 21, 2026 • SEC Data: 2026-03-31
Combined AI Grade
D
95% Confidence
N/A
D
95% Conf
Pending
Analysis scheduled

📊 SURG Key Takeaways

Revenue: $16.0M
Net Margin: -75.4%
Free Cash Flow: $-4.6M
Current Ratio: 0.27x
Debt/Equity: N/A
EPS: $-0.51
AI Grade: D with 95% confidence
SurgePays, Inc. (SURG) receives a D fundamental grade with 95% confidence from our AI analysis based on SEC 10-K filings. With revenue of $16.0M, net profit margin of -75.4%, SurgePays, Inc. demonstrates mixed fundamentals in the Telecom sector. Below is our complete SURG stock analysis for 2026.

Is SurgePays, Inc. (SURG) a Good Investment?

Claude

SurgePays faces imminent insolvency with negative stockholders' equity of -$23.8M and a critical liquidity crisis (current ratio 0.27x). The company is burning $4.6M annually in free cash flow with only $2.0M cash on hand (~5 month runway) while generating -$12.1M net losses on flat $16.0M revenues, making debt service unsustainable without restructuring or emergency capital infusion.

SurgePays, Inc. Key Strengths (SURG)

Claude
  • + Company maintains $2.0M cash position providing near-term runway
  • + Gross profit of $2.5M demonstrates some revenue monetization capability
  • + Essential services sector (telecommunications) has structural demand

SURG Stock Risks: SurgePays, Inc. Investment Risks

Claude
  • ! Negative stockholders' equity of -$23.8M indicates technical insolvency
  • ! Severe liquidity crisis: current ratio 0.27x cannot cover near-term obligations
  • ! Operating margin of -70.1% with negative free cash flow of -$4.6M: company is rapidly depleting cash reserves
  • ! Zero revenue growth paired with rising losses suggests business model deterioration
  • ! Long-term debt of $12.3M cannot be serviced with negative operating income (-28.0x interest coverage)
  • ! Extreme net margin of -75.4% indicates fundamental business model failure

Key Metrics to Watch

Claude
  • * Monthly cash burn rate and cash runway to insolvency
  • * Revenue growth and path to operating cash flow breakeven
  • * Debt refinancing status and covenant compliance
  • * Quarterly operating loss trend and cost reduction initiatives
  • * Potential equity dilution from capital raises or debt-to-equity conversions

SurgePays, Inc. (SURG) Financial Metrics & Key Ratios

Revenue
$16.0M
Net Income
$-12.1M
EPS (Diluted)
$-0.51
Free Cash Flow
$-4.6M
Total Assets
$9.5M
Cash Position
$2.0M

💡 AI Analyst Insight

The current ratio below 1.0x warrants monitoring of short-term liquidity.

SURG Profit Margin, ROE & Profitability Analysis

Gross Margin 15.4%
Operating Margin -70.1%
Net Margin -75.4%
ROE N/A
ROA -126.8%
FCF Margin -28.6%

SURG vs Telecom Sector: How SurgePays, Inc. Compares

How SurgePays, Inc. compares to Telecom sector averages

Net Margin
SURG -75.4%
vs
Sector Avg 14.0%
SURG Sector
ROE
SURG 0.0%
vs
Sector Avg 15.0%
SURG Sector
Current Ratio
SURG 0.3x
vs
Sector Avg 1.0x
SURG Sector
Debt/Equity
SURG 0.0x
vs
Sector Avg 1.2x
SURG Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is SurgePays, Inc. Stock Overvalued? SURG Valuation Analysis 2026

Based on fundamental analysis, SurgePays, Inc. has mixed fundamental signals relative to the Telecom sector in 2026.

Return on Equity
N/A
Sector avg: 15%
Net Profit Margin
-75.4%
Sector avg: 14%
Revenue Growth
N/A
Year-over-year
Debt/Equity
N/A
Sector avg: 1.2x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

SurgePays, Inc. Balance Sheet: SURG Debt, Cash & Liquidity

Current Ratio
0.27x
Quick Ratio
0.26x
Debt/Equity
N/A
Debt/Assets
351.2%
Interest Coverage
-28.00x
Long-term Debt
$12.3M

SURG Revenue & Earnings Growth: 5-Year Financial Trend

SURG 5-year financial data: Year 2021: Revenue $54.4M, Net Income -$10.7M, EPS N/A. Year 2022: Revenue $121.5M, Net Income -$13.5M, EPS N/A. Year 2023: Revenue $137.1M, Net Income -$680.8K, EPS $-0.05. Year 2024: Revenue $137.1M, Net Income $20.6M, EPS $1.38. Year 2025: Revenue $60.9M, Net Income -$45.7M, EPS $-2.39.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: SurgePays, Inc.'s revenue has grown significantly by 12% over the 5-year period, indicating strong business expansion. The most recent EPS of $-2.39 indicates the company is currently unprofitable.

SURG Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-28.6%
Free cash flow / Revenue

SURG Quarterly Earnings & Performance

Quarterly financial performance data for SurgePays, Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2026 $10.6M -$7.6M $-0.38
Q3 2025 $4.8M $1.2M $-0.38
Q2 2025 $11.5M $1.2M $-0.36
Q1 2025 $10.6M $1.2M $0.07
Q3 2024 $4.8M $1.2M $0.49
Q2 2024 $15.1M $1.2M $0.40
Q1 2024 $31.4M $1.2M $0.07
Q3 2023 $34.2M -$973.0K $-0.12

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

SurgePays, Inc. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
-$4.6M
Cash generated from operations
Stock Buybacks
$500.0K
Shares repurchased (TTM)
Capital Expenditures
$18.6K
Investment in assets
Dividends
None
No dividend program

SURG SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for SurgePays, Inc. (CIK: 0001392694)

📋 Recent SEC Filings

Date Form Document Action
May 20, 2026 10-Q form10-q.htm View →
May 20, 2026 8-K form8-k.htm View →
May 7, 2026 DEF 14A fromdef14a.htm View →
Apr 16, 2026 8-K form8-k.htm View →
Apr 15, 2026 10-K form10-k.htm View →

Frequently Asked Questions about SURG

What is the AI rating for SURG?

SurgePays, Inc. (SURG) has an AI grade of D with 95% confidence, based on fundamental analysis of SEC EDGAR filings.

What are SURG's key strengths?

Claude: Company maintains $2.0M cash position providing near-term runway. Gross profit of $2.5M demonstrates some revenue monetization capability.

What are the risks of investing in SURG?

Claude: Negative stockholders' equity of -$23.8M indicates technical insolvency. Severe liquidity crisis: current ratio 0.27x cannot cover near-term obligations.

What is SURG's revenue and growth?

SurgePays, Inc. reported revenue of $16.0M.

Does SURG pay dividends?

SurgePays, Inc. does not currently pay dividends.

Where can I find SURG SEC filings?

Official SEC filings for SurgePays, Inc. (CIK: 0001392694) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is SURG's EPS?

SurgePays, Inc. has a diluted EPS of $-0.51.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.

What is SURG's fundamental grade?

Based on our AI fundamental analysis in May 2026, SurgePays, Inc. has a D grade with 95% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is SURG stock overvalued or undervalued?

Valuation metrics for SURG: ROE of N/A (sector avg: 15%), net margin of -75.4% (sector avg: 14%). Compare these metrics with sector averages to assess valuation.

What is SURG's AI grade for 2026?

Our dual AI analysis gives SurgePays, Inc. a combined D grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is SURG's free cash flow?

SurgePays, Inc.'s operating cash flow is $-4.6M, with capital expenditures of $18.6K. FCF margin is -28.6%.

How does SURG compare to other Telecom stocks?

Vs Telecom sector averages: Net margin -75.4% (avg: 14%), ROE N/A (avg: 15%), current ratio 0.27 (avg: 1).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: May 21, 2026 | Data as of: 2026-03-31 | Powered by Claude AI