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Revenue: USD 10.6 million for the first quarter of 2025, compared to USD 31.4 million in the first quarter of 2024.
Platform service income: USD 8.3 million in the first quarter of 2025, compared to $ 2.5 million in the first quarter of 2024.
Gross profit: Loss of $ 2.9 million in the first quarter of 2025, compared to $ 8.2 million in the first quarter of 2024.
SG & A editions: Dropped 28.6% to $ 4.4 million from USD 6.1 million in the first quarter of 2024 in the first quarter of 2024.
Loss from operations: $ 7.6 million in the first quarter of 2025, compared to USD $ 1.8 million in the first quarter of 2024.
Net lust: $ 7.6 million or negative $ 0.38 per share in the first quarter of 2025.
Cash and equivalent: 5.4 million US dollars on March 31, 2025, compared to $ 11.8 million on December 31, 2024.
Strategic financing: Financed 6 million $ 6 million with an interest rate of 15%that matures within 24 months.

Appearance date: May 13, 2025

For the complete protocol of the earnings call, see the full profit call transcription.

Surgepays Inc (Nasdaq: Surg) has concluded strategic financing to accelerate the next growth phase in order to achieve sales of $ 200 million and to expect that the operational cash flow 2025 will be positive.
The company started a multi-year partnership with AT&T and completed the complete integration in less than six months, with MVNOS providing back-end telecommunications infrastructure.
Surgepays have sent over 210,000 SIM cards and has a robust retail network of over 9,000 shops oriented nationwide in the municipality, which improves its sales model.
As a MVNE, the company is building a new revenue engine and offers billing, provision, Sims and ESIMs to other mobile phone companies, which will probably be a high -brand model.
Surgepays has won an investment of $ 6 million from its largest external shareholder, Cable Car, and not dilutive capital to support its growth initiatives.

Surgepays recorded a significant decline in sales for the first quarter of 2025 with USD $ 31.4 million in the same period 2024, especially due to the shutdown of the ACP federal financing.
In the first quarter of 2025, the company recorded a gross profit loss of $ 2.9 million compared to a gross profit of $ 8.2 million in the first quarter of 2024.
The loss from business was $ 7.6 million in the first quarter of 2025, which was a significant decline compared to a profit of $ 1.8 million in the first quarter of 2024.
The cash, the cash equivalent and the investment credit of Surgepays decreased from $ 5.4 million from USD 11.8 million on December 31, 2024 from March 31, 2025.
The company faces challenges in the transfer of its ACP subscription base to non-subsidized products, which affects the financial performance.

Q: Can you discuss the schedule for the generation of sales from the MVNE partners you have integrated? A: Income from the MVNE partners should appear in the second quarter. The three companies are currently activating and switching to ours at a steady increase in revenue when transferring their old SIM card inventory. This is a recurring sales model that is a major focus for our development team. – – Kevin Cox, CEO

Q: How do you distribute the 800,000 SIM cards under subscribers, retail networks and MVNE partners? A: The SIM cards are distributed across all facets of our company. We keep the inventory to ensure that we can satisfy the demand from sales dealers, sales teams and wholesale companies. This includes inventory for state-subsidized programs, Linkup and our phone in a box concept. We want to have a stable level of stock by the end of June to support ongoing sales. – – Kevin Cox, CEO

Q: Can you explain the recurring MVNES recording model to the high margins and how it is implemented in the introduction of subscribers? A: The economy varies from MVNO because they differ in size and scope. We strive for a healthy margin of 20% to 30% per subscriber, regardless of whether it is a customer of $ 10 or $ 30. The model contains a monthly recurring fee (MRC) for unlimited text and minutes, whereby data is the measured goods. It is difficult to offer a uniform model, but we are working to communicate this effectively while it develops. – – Kevin Cox, CEO

Q: Are convenience -store owners concerned about the economy and how does this affect your business? A: The communities we serve are usually less affected by macroeconomic changes. Our target customers often have no significant investments, so that economic fluctuations have fewer effects. In closer economic times, our promise of value becomes more attractive and offers alternatives for wireless services and new income options for shopkeepers. – – Kevin Cox, CEO

Q: How do you plan to achieve your short -term goal, to achieve 100,000 sales locations? A: We have a visibility to achieve this goal via different channels, including direct distributors and partnerships with companies such as HT Hackney. We have several products that can serve as entry points in shops so that we can introduce our entire product suite. Our sales team focuses on different categories and we want to achieve this goal by the end of 2026. Kevin Cox, CEO

For the complete protocol of the earnings call, see the full profit call transcription.

This article first appeared on Gurufocus.

Navigate of sales challenges and …

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