SurgePays, Inc.

Analysis for Ticker: SURG

SurgePays Inc operates a business providing mobile phone and data services to communities that lack banking access through brands like LinkUp Mobile and Torch Wireless. The fundamental failure is that the company is mathematically built to lose money on every person it signs up. When the government stopped paying for these phone plans in early 2024, the company lost 70% of its income. Instead of shrinking, they decided to keep the customers and pay the bills themselves, losing 7$ to 10$ per user every single month. This destroyed the money inside, leading to a negative gross profit margin of 18,6%. It is like a child running a lemonade stand where every cup costs 10$ to make but they only sell it for 8$ because they want to look successful while they wait for a miracle that never comes.