Overview

• US fintech and MVNO's Q1 revenue rose 51% yr/yr, led by prepaid and POS services

• Company posted Q1 net loss of $12.1 mln, with operating loss widening yr/yr

• General and administrative expenses fell 25% on cost discipline

Outlook

• Company expects initial HERO platform customer rollouts in Q2 2026, with revenue in Q3 2026

• New wholesale partners expected to lift monthly prepaid top-up volume by about 30% once integrated

• Company anticipates incremental LinkUp Mobile activation volume as new Master Agent stores come online

Result Drivers

• PREPAID AND POS SERVICES - Co said revenue growth was driven by a 71% increase in point of sale and prepaid services

• COST DISCIPLINE - Co said G&A expenses fell 25% yr/yr due to cost discipline initiated in 2025

• WIRELESS SUBSCRIBER GROWTH - Total wireless subscriber lines surpassed 200,000, reflecting continued momentum in the prepaid wireless business

Company press release: ID:nGNX6Wn3l8

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Beat	$16 mln	$15.50 mln (2 Analysts)
Q1 EPS		-$0.51
Q1 Net Income		-$12.10 mln
Q1 Operating Income		-$11.20 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the integrated telecommunications services peer group is "buy"

• Wall Street's median 12-month price target for Surgepays Inc is $5.00, about 773.7% above its May 14 closing price of $0.57

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.