SurgePays Inc. (NASDAQ:SURG) shares fell 30.23% in Wednesday’s after-hours trading after the company reported second-quarter 2026 financial results and disclosed continued liquidity concerns in its latest quarterly filing.
The stock closed Wednesday’s regular session down 8.31% at $0.25. It fell 30.23% to $0.17 in after-hours trading.
SurgePays is a telecommunications and financial technology company that operates mobile virtual network operators and a fintech transactions platform.
Going Concern Warning
SurgePays reported $1.95 million in unrestricted cash as of June 30, 2026, alongside a $21.30 million working capital deficit and $20.75 million stockholders’ deficit.
The company reported a $10.76 million net loss available to common stockholders and $7.18 million in net cash used in operating activities for the six months ended June 30.
SurgePays said it does not believe it has sufficient cash resources to meet its obligations as they become due over the following 12 months.
The company said these conditions raise substantial doubt about its ability to continue as a going concern within one year. Management added that its plans to address the situation, including additional financing and efforts to grow its LinkUp Mobile and HERO platforms, do not alleviate that substantial doubt.
Second-Quarter Revenue Rises, But Settlement Boosts Results
SurgePays reported second-quarter 2026 revenue of $16.20 million, compared with $11.52 million in the year-ago quarter.
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The company reported $1.29 million in net income available to common stockholders, compared with a $7.08 million loss in the second quarter of 2025.
The quarter included an $8.51 million gain from the settlement of contract liabilities related to its AT&T agreement. SurgePays said the gain was non-recurring and did not involve the receipt or payment of cash.
For the first six months of 2026, SurgePays reported revenue of $32.19 million, compared with $22.10 million a year earlier, while net loss available to common stockholders was $10.76 million.
Convertible Notes, Derivative Liabilities
SurgePays had $9.87 million of current convertible notes payable and $3.39 million of long-term convertible notes payable as of June 30, 2026.
The company also reported $1.11 million in derivative liabilities.
Certain convertible notes include market-based conversion provisions under which conversions can occur at 85% of the lowest daily VWAP over the five trading days preceding conversion.
Price Action
SurgePays has a market capitalization of approximately $6.10 million.
The stock has a 52-week high of $3.14 and a 52-week low of $0.20.
SURG shares are down 89.48% over the past year.
Benzinga’s Edge Stock Rankings indicate that SURG stock has a negative price trend across all time frames.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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