SurgePays, Inc. (SURG): Business Model Canvas [Dec-2025 Updated]

You're looking past the old government subsidy program to see the real engine driving SurgePays, Inc. (SURG) today, and frankly, the numbers are compelling: they are projecting revenues between $75 million and $90 million for 2025 as they shift focus. This growth isn't just from Torch Wireless; it's a calculated pivot leveraging their nationwide retail footprint of over 9,000 locations to push prepaid, wholesale MVNO services, and their new ClearLine SaaS platform for merchants. If you want the precise breakdown of how they connect their subprime consumer access to their wholesale infrastructure, dive into the nine building blocks of their Business Model Canvas below.

SurgePays, Inc. (SURG) - Canvas Business Model: Key Partnerships

The Key Partnerships block for SurgePays, Inc. (SURG) as of late 2025 is centered on securing critical infrastructure, scaling physical distribution, and building out high-margin wholesale and data monetization channels.

The foundation of the wireless offering relies on the carrier relationship, which transitioned from a reseller model to direct network access.

• Multi-year strategic agreement with AT&T for network access, completed full integration by April 1, 2025.
• Partnerships with major distribution partners like HT Hackney, which services over 40,000 stores.
• Integrations with three subprime lead generation aggregators added on December 4, 2025, expected to route 10,000 new subprime leads per day at full scale.
• Multiple Mobile Virtual Network Operator (MVNO) partners onboarded to the MVNE wholesale platform, totaling three as of Q3 2025.
• Retail store owners operating the SurgePays point-of-sale (POS) platform, with a current nationwide footprint of more than 9,000 locations.

The company's near-term goal for retail penetration is to ramp to 100,000 locations on its platform through these distribution agreements.

The addressable market segment for the data monetization initiative is cited as the 138 million adult subprime sector.

The company's LinkUp Mobile brand achieved over 95,000 recurring active subscribers by the end of Q3 2025, driven by expanded retail distribution.

SurgePays, Inc. (SURG) - Canvas Business Model: Key Activities

You're looking at the core engine driving SurgePays, Inc.'s growth as of late 2025. These aren't just goals; these are the activities with real numbers attached from their latest reporting.

Scaling the Lifeline-subsidized Torch Wireless brand

The Lifeline-subsidized brand is a major revenue driver, showing significant subscriber momentum after the end of the ACP (Affordable Connectivity Program). The activity here is focused on retaining and growing this government-supported base.

Torch Wireless generated $5.6 million in revenue during the third quarter of 2025. The subscriber count for this brand surpassed 125,000 by the end of Q3 2025. The activation pace is aggressive, with 20,000 activations in June 2025 and 57,000 in July 2025. Management projected an ongoing monthly activation run rate of 80,000-90,000 by September 2025.

Expanding the LinkUp Mobile prepaid wireless subscriber base

This is the retail prepaid brand, which saw its nationwide launch on the AT&T network with full integration completed on April 1, 2025. They are pushing this through retail and a unique 'Phone-in-a-Box' (PIB) program.

LinkUp Mobile surpassed 95,000 recurring active subscribers by the end of the third quarter of 2025. The initial run of 2,600 PIB units sold out in under 30 days. The company had shipped over 250,000 SIM cards to customers and retail partners by Q1 2025. Activations more than doubled between April 2025 and July 2025, reaching over 30,000 subscribers.

Here's a quick look at the prepaid wireless growth metrics:

Developing and maintaining the proprietary LogicsIQ data engine

The LogicsIQ engine is central to monetizing consumer data through the ProgramBenefits platform. This activity is about data matching and lead generation to lower subscriber acquisition costs.

The ProgramBenefits initiative, powered by LogicsIQ, is expected to route an estimated 10,000 new subprime leads daily at full scale. The company sees this as a way to capitalize on the market of over 137 million subprime adults.

Onboarding new MVNOs onto the HERO wholesale platform

The HERO MVNE (Mobile Virtual Network Enabler) platform is a high-margin, B2B revenue stream. This activity involves providing the wireless infrastructure to other providers.

As of the third quarter of 2025, the HERO platform supports three fully integrated MVNO customers. In Q1 2025, there were an additional two MVNOs in the onboarding process.

Deploying the ClearLine SaaS POS software to merchants

ClearLine is the software-as-a-service (SaaS) point-of-sale system that turns in-store screens into retail media hubs. This activity focuses on expanding the physical footprint and recurring software revenue.

The prepaid POS fintech network continues to expand, driving recurring top-up and activation revenue from over 9,000 locations as of Q2 2025. The company has a near-term goal to expand this to 100,000 retail locations operating on the SurgePays platform. A specific deployment milestone was the full deployment of ClearLine across all 17 Market Basket Food Stores in North Carolina, announced in August 2025. For context, the POS platform saw prepaid wireless top-up revenue grow over 400% from Q1 to Q2 2024.

Key deployment and scale metrics for the POS/SaaS segment:

• Retail locations currently on the platform: Over 9,000.
• Near-term retail location expansion target: 100,000.
• Market Basket Food Stores deployment: All 17 stores in North Carolina.
• Prepaid Top-Up Revenue Growth (Q1 to Q2 2024): Over 400%.

Finance: Monitor the gross margin trajectory in Q4 2025 to confirm the shift to higher-margin revenue is taking hold.

SurgePays, Inc. (SURG) - Canvas Business Model: Key Resources

You're looking at the core assets SurgePays, Inc. (SURG) relies on to execute its strategy, especially as they pivot hard into data monetization. These aren't just abstract concepts; they are concrete, measurable components of their current operational strength as of late 2025.

Proprietary LogicsIQ data and monetization engine

The engine driving the new digital strategy is the reengineered LogicsIQ system. This legacy software was rebuilt into a modernized data intake and qualification engine, specifically for the underserved consumer segment. It now powers the ProgramBenefits.com platform, which acts as the public-facing consumer portal and intake engine. The goal is to convert verified benefit-qualified consumers into measurable, recurring revenue opportunities. To be fair, the predecessor to this data focus, the DigitizeIQ engine, historically generated over $50 million in revenue, showing the potential baked into this asset class. Every lead from new aggregators, expected to hit 10,000 per day at full scale, passes through LogicsIQ to match consumers with offers across wireless, credit, and financial services.

Nationwide retail distribution network of over 9,000 locations

This physical footprint is a massive barrier to entry for competitors. SurgePays, Inc. cites a nationwide retailer footprint of more than 9,000 locations where they deploy their point-of-sale technology and services. This network supports both their own wireless brands and their fintech offerings. They are actively working to scale this asset, with a stated near-term goal to expand to 100,000 retail locations. For context on their existing reach, one major distribution partner, HT Hackney, services over 40,000 retail locations, showing the scale of the potential integration points.

Here's a quick look at the scale of their physical and digital reach assets:

Direct carrier access, a rare and powerful MVNE position

Being a Mobile Virtual Network Enabler (MVNE) is a key differentiator, offering high-margin scalability with minimal incremental cost. SurgePays, Inc. has successfully onboarded three MVNO partners to date, with additional partnerships in progress as of the Q3 2025 earnings call. This position, supported by a multi-year strategic agreement with AT&T signed in late 2024 for full access to 4G LTE and 5G services, means they control the back-end infrastructure for other wireless companies.

$2.5 million in cash and equivalents as of September 30, 2025

Liquidity is always critical, and as of September 30, 2025, SurgePays, Inc. held $2.5 million in cash, cash equivalents, and investments. This figure represents a significant draw-down from the $11.8 million they held on December 31, 2024. The company is actively executing its go-to-market strategy, which required investment, but they have an aim to return to positive cash flow from operations during 2025. The company had 20,431,549 shares of common stock outstanding as of November 10, 2025.

The ClearLine SaaS point-of-sale technology platform

ClearLine is the software-as-a-service (SaaS) component designed to generate recurring, high-margin revenue by transforming in-store screens into retail media hubs. This platform is currently deployed across all 17 Market Basket Food Stores in North Carolina. The technology allows for real-time video ads, dynamic promotions, coupons, and QR codes. Management expects the gross margin for this specific revenue channel to turn positive by the end of 2025. Furthermore, they are building out partnerships, like the one with Corpay, to integrate ClearLine into next-generation payment processing solutions, underscoring its strategic value.

You can see how these resources feed into their growth verticals:

• Lifeline Subscribers (Torch Wireless): Over 125,000 as of October 16, 2025.
• LinkUp Mobile Prepaid Subscribers: Surpassed 95,000 recurring active subscribers by the end of Q3 2025.
• Q3 2025 Total Revenue: Reached approximately $18.7 million.
• ClearLine Deployment: Active in 17 locations.

Finance: draft 13-week cash view by Friday.

SurgePays, Inc. (SURG) - Canvas Business Model: Value Propositions

You're looking at the core value SurgePays, Inc. (SURG) delivers across its distinct customer segments. This isn't just about selling phones; it's about providing essential access and monetizing data streams within a specific demographic.

Essential, government-subsidized wireless service via Lifeline.

SurgePays, Inc. provides essential wireless connectivity through its Torch Wireless brand, operating under the fully funded and stable Lifeline program. This is a predictable, recurring revenue base supported by government subsidy.

• Lifeline subscriber base reached over 125,000 as of September 30, 2025.
• Torch Wireless generated revenue of $5.6 million in the third quarter of 2025.
• Subscriber count accelerated from 20,000 in June 2025 to over 125,000 by September 2025.

Affordable prepaid mobile connectivity for the subprime market.

The LinkUp Mobile brand targets the subprime sector with prepaid mobile connectivity. The value here is providing unsubsidized, flexible mobile service, often bundled with retail financial services.

• LinkUp Mobile had over 95,000 recurring active subscribers as of the third quarter of 2025.
• Activations for LinkUp Mobile more than doubled between its April launch and July, surpassing 30,000 subscribers.

High-margin, low-overhead wholesale infrastructure for other MVNOs.

SurgePays, Inc. acts as a Mobile Virtual Network Enabler (MVNE), offering its scalable platform for provisioning and billing to third-party wireless providers. This channel is positioned for high margin growth.

Here's a quick look at the wholesale segment scaling as of late 2025:

The company expects to add more wholesale clients within the next six months.

Recurring transaction revenue and digital services for retail merchants.

For retail merchants, SurgePays, Inc. provides a point-of-sale (POS) and fintech platform that processes high-demand digital transactions, turning their locations into digital payment hubs. This creates recurring revenue from top-ups and SaaS fees.

• Point of Sale and Prepaid Services Revenue reached $13.1 million in Q3 2025, marking a 177% increase.
• The Prepaid Wireless Top-Up platform reached a run rate of over $60 million annually as of July 2025.
• The monthly transaction volume for the digital payments platform hit $4.3 million.
• The ClearLine SaaS product is currently active in 17 market basket convenience store locations.

Access to a 138 million adult subprime consumer sector for monetization.

The core asset is the access to and data intelligence derived from the subprime and underserved consumer base. This allows for layered monetization beyond just wireless service.

• The total addressable market is estimated to be over 137 million adults.
• The company operates through a nationwide network of more than 9,000 retail locations.
• New lead generation aggregators are expected to drive an influx of 10,000 new subprime leads daily at full capacity.

The LogicsIQ engine matches each consumer with the next best offer across wireless, credit, financial services, and healthcare savings.

Finance: draft 13-week cash view by Friday.

SurgePays, Inc. (SURG) - Canvas Business Model: Customer Relationships

You're looking at how SurgePays, Inc. manages its connections with the various customer groups it serves, which is quite diverse given its multi-channel approach. It's not one-size-fits-all; they use a mix of automation, dedicated support, and low-touch wholesale models.

Automated, recurring subscriber billing for Lifeline and LinkUp Mobile.

For the subsidized Lifeline segment, managed through the Torch Wireless brand, the relationship is heavily automated, focusing on maintaining recurring government-backed revenue. As of September 30, 2025, SurgePays, Inc. reported having over 125,000 Lifeline subscribers. This segment generated $5.6 million in revenue during the third quarter of 2025. On the non-subsidized side, the LinkUp Mobile prepaid brand, which fully launched in April 2025, showed strong recurring adoption, surpassing 95,000 active recurring subscribers by the end of Q3 2025. This recurring base is the engine for predictable monthly billing.

Here's a quick look at the key wireless customer bases driving that recurring revenue as of late 2025:

Dedicated sales and operations team for retail partner support.

The relationship with retail partners, crucial for the prepaid top-ups and the 'Phone in a Box' product, requires more direct engagement. The company has a dedicated team overseeing this, evidenced by the promotion of Derron Winfrey to President, Sales, and Operations in Q1 2025 to manage growth across LinkUp Mobile and the retail-focused products. The 'Phone in a Box' kit, which includes a smartphone, SIM, and thirty-day service, targets convenience stores, with distribution potential noted across over 9,000+ stores, leveraging partners like HT Hackney who service more than 40,000 retail locations. This team helps onboard and support these physical touchpoints.

Digital engagement and analytics via the ClearLine SaaS platform.

For certain retail partners, the relationship deepens into a technology partnership via the ClearLine software-as-a-service (SaaS) platform. This system turns in-store screens into media hubs. As of August 2025, SurgePays, Inc. announced the full deployment of ClearLine across all 17 Market Basket Food Stores in North Carolina. The goal here is a high-margin, recurring SaaS revenue stream, with management expecting gross margin to turn positive for this channel by the end of 2025. To give you context, the global SaaS market revenue in 2025 is projected to reach $390.50 billion.

Low-touch, high-margin relationship with MVNE wholesale partners.

The relationship with Mobile Virtual Network Enabler (MVNE) wholesale partners is designed to be low-touch once integrated, focusing on scalability and high margin. As of Q3 2025, SurgePays, Inc. had onboarded three MVNO partners. This is an expansion from the Q1 2025 update which noted 3 fully integrated MVNOs and 2 more in the onboarding process. The expectation is to add more wholesale clients within the next six months following the third quarter. This channel benefits from minimal incremental cost, which helps the overall gross loss narrow to $(2.6) million in Q3 2025 from $(7.8) million in Q3 2024.

Retail-based, transactional relationship for prepaid top-ups.

This is the most frequent, transactional touchpoint, primarily through the Prepaid Wireless Top-Ups platform used by convenience store clerks. The revenue from this segment, combined with LinkUp Mobile sales, hit $13.1 million in Q3 2025, representing a 177% year-over-year increase. Looking closer at the top-up component specifically, the revenue reached $4.3 million in July 2025, projected to hit $5 million in August 2025. This shows high-frequency, lower-value interactions that build volume.

Finance: draft the 13-week cash flow view incorporating the Q3 cash balance of $2.5 million by Friday.

SurgePays, Inc. (SURG) - Canvas Business Model: Channels

The Channels block for SurgePays, Inc. (SURG) is defined by a multi-pronged distribution strategy leveraging physical retail, direct sales, and digital platforms.

• Nationwide network of independent convenience and community stores:
• Retail distribution network size reported at nearly 9,000 convenience and community stores as of early 2025.
• Near-term goal to expand to 100,000 retail locations operating on the SurgePays platform.
• Partnership integration utilizes an existing retail network of 10,000+ stores.
• ProgramBenefits.com digital platform for lead routing:
• Launched on November 13, 2025.
• Targets an underserved market estimated at approximately 138 million adults, representing 57% of U.S. consumers.
• The platform's legacy intake system previously generated over $50 million in revenue in another industry.
• Three newly added lead generation aggregators are expected to route an estimated 10,000 new subprime leads per day at full scale.
• Direct sales team for MVNE wholesale partner acquisition:

SurgePays, Inc. (SURG) has onboarded three MVNO partners to its MVNE (HERO) wholesale platform as of the third quarter of 2025.

The direct sales team, including a 100+ person operations center, focuses on outreach to independent retailers for GPOX product sales.

• Torch Wireless and LinkUp Mobile branded products:
• Torch Wireless (Lifeline-subsidized brand) reached over 125,000 subscribers by Q3 2025.
• LinkUp Mobile (prepaid brand) surpassed 95,000 recurring active subscribers by the end of Q3 2025.
• Phone-in-a-Box kits distributed through partners like HT Hackney:
• Distribution potential is cited through over 9,000+ stores on the platform.
• HT Hackney services more than 40,000 retail locations.
• The initial 'Phone in a Box' launch sold out 2,600 units in under 30 days in Q1 2025.

SurgePays, Inc. (SURG) - Canvas Business Model: Customer Segments

You're looking at the core customer base for SurgePays, Inc. as of late 2025. This company focuses on connecting specific consumer groups with essential mobile and fintech services through a blend of technology and a wide retail footprint.

The primary focus is on the subprime and underserved consumers seeking essential services. The total addressable subprime sector is estimated at 138 million adults. The company is actively working to acquire these customers, with integrations expected to route about 10,000 new subprime leads per day at full scale through its ProgramBenefits platform.

A significant portion of the business is built around government-subsidized connectivity:

• Lifeline-eligible customers: Through the Torch Wireless brand, SurgePays, Inc. reported having over 125,000 subscribers as of the third quarter of 2025. This number showed rapid acceleration, rising from only 20,000 subscribers in June 2025. Revenue from this segment reached $5.6 million in Q3 2025.

The non-subsidized prepaid market is also a key segment, driven by the LinkUp Mobile brand:

• Prepaid wireless users: LinkUp Mobile, which fully launched in April 2025 with about 10,000 users, surpassed 95,000 recurring active subscribers by the end of Q3 2025. This growth followed activations of over 20,500 in July 2025. The broader Point of Sale and Prepaid Services revenue, which includes LinkUp Mobile, hit $13.1 million in Q3 2025, marking a 177% year-over-year increase.

SurgePays, Inc. also serves other wireless providers and the retail channel that serves these consumers. You see this in the wholesale and merchant segments:

• Other Mobile Virtual Network Operators (MVNOs): The company operates as a Mobile Virtual Network Enabler (MVNE) through its HERO platform, providing backend services. SurgePays, Inc. has onboarded three MVNO partners. The near-term goal is to have 100,000 subscribers operating on the SurgePays platform from wholesale clients.
• Independent retail merchants and convenience store owners: These merchants are crucial for distribution, utilizing products like the 'Phone in a Box' kit. The company cites a nationwide retail footprint of more than 9,000 locations, with a goal to scale distribution across up to 100,000 retail locations operating on the platform.

Here's a quick look at the scale of the key wireless subscriber bases as of the third quarter of 2025:

Finance: draft 13-week cash view by Friday.

SurgePays, Inc. (SURG) - Canvas Business Model: Cost Structure

For SurgePays, Inc., the cost structure is heavily influenced by the underlying infrastructure of its wireless and fintech operations. You're looking at costs that shift as the company moves from a foundational buildout phase to an execution and scale phase, as management noted for the third quarter of 2025.

Network access and wholesale telecom costs are a primary variable cost, tied directly to subscriber usage and MVNO agreements. SurgePays, Inc. secured full access to 4G LTE and 5G wireless services across North America through a multi-year strategic agreement with AT&T, which was integrated and live as of April 1, 2025. Furthermore, the wholesale MVNE platform, HERO, is described as a high-margin model carrying minimal incremental costs and low overhead for the services provided, such as billing and provisioning, to third-party wireless companies.

Subscriber acquisition costs are undergoing a strategic shift. Management indicated a focus on new avenues for acquiring customers with little or no cost, aiming to flip the traditional front-heavy Return on Investment (ROI) portion of the model. This is driven by leveraging distribution agreements and the platform itself to generate revenue during the acquisition process, rather than incurring a direct cost for each new customer.

Selling, General, and Administrative (SG&A) expenses showed significant improvement year-over-year for the third quarter ended September 30, 2025. The reported SG&A was $4.2 million, a 32.5% decrease compared to $6.2 million in the third quarter of 2024. This reduction was primarily attributed to lower contractor, consultant, and compensation expenses.

Technology development and platform maintenance costs represent a significant, though potentially declining, fixed cost base. Management stated that most of the cost to get Clearline ready for launch has occurred, suggesting that major capital expenditures for that specific platform development are largely behind the company as of late 2025, with expectations for positive gross margin from that channel by the end of 2025.

Costs related to Inventory for SIM cards and prepaid kits are tied to scaling the prepaid wireless brand, LinkUp Mobile. While direct inventory cost is not itemized, the scale of operations suggests material outlay; for instance, the company expected monthly SIM card shipments of 250,000-300,000 driven by its retail distribution network as of early 2025.

Here's a quick look at the key reported expense and loss figures for the third quarter of 2025:

The structure of operational expenses in Q3 2025 reflects a focus on efficiency, as seen in the SG&A reduction. Key cost drivers and related operational metrics include:

• Reduction in SG&A driven by lower contractor and consultant expense.
• MVNO segment gross margins anticipated to increase with scale.
• LinkUp Mobile surpassed 95,000 recurring active subscribers by the end of Q3 2025.
• Torch Wireless (Lifeline) reached over 125,000 subscribers in Q3 2025.
• Cash and Equivalents stood at $2.5 million as of September 30, 2025.

SurgePays, Inc. (SURG) - Canvas Business Model: Revenue Streams

You're looking at the hard numbers driving the SurgePays, Inc. top line as of late 2025. It's a blended model, moving away from the old ACP reliance toward a more diversified, high-margin mix.

The third quarter of 2025 net revenue hit $18.7 million. That's a 292% increase year-over-year from Q3 2024's $4.8 million. The company is projecting full-year 2025 revenue between $75 million and $90 million.

Here's a breakdown of the key components feeding that total:

The subsidized wireless service revenue from Torch Wireless was explicitly reported at $5.6 million for the third quarter of 2025. This channel is underpinned by a subscriber base exceeding 125,000 at the end of that quarter.

The prepaid top-up and POS transaction revenue stream shows significant velocity. That monthly revenue has now reached about $5 million. This is a massive jump, considering it was near $1 million monthly a year prior.

The MVNE (HERO) wholesale service fees represent a B2B enablement revenue. As of August 2025, the platform supports 3 fully integrated third-party MVNOs, with management indicating more are in the pipeline.

ClearLine SaaS subscription fees are positioned as a high-margin, recurring software revenue. The platform was strategically deployed across all 17 Market Basket Food Stores in North Carolina following an August 28th move.

Non-subsidized prepaid wireless revenue, primarily from LinkUp Mobile, is scaling with subscriber additions. By the close of Q3 2025, this brand had surpassed 95,000 recurring active subscribers.

These streams combine to form the company's revenue base, which is expected to reach between $225 million and $240 million in 2026.

• Torch Wireless subscriber count (Q3 2025): 125,000+
• LinkUp Mobile subscriber count (Q3 2025): 95,000+ recurring active
• Total Q3 2025 Net Revenue: $18.7 million
• 2026 Revenue Guidance: $225 million to $240 million
• MVNE partners active (August 2025): 3

Finance: draft 13-week cash view by Friday.