SurgePays, Inc.

in the third quarter of 2025 from our MVNO brand, Torch Wireless, under the subsidized Lifeline program. The Lifeline program is a government subsidized benefit program that provides essential wireless connectivity to those who qualify. Unlike temporary programs, Lifeline remains fully funded and unaffected by the current government shutdown, providing us with a stable, predictable recurring revenue base. Today, we have over 125,000 subscribers and growing after activating in June with only 20,000 subscribers. What's even more exciting is that we're still operating well below our current capacity. Many sales channels are still being open, so we expect continued sales growth. This positions us exceptionally well for continued growth in the months ahead. What excites our management team even more is the new avenues for acquiring customers with little or no cost, completely flipping the front heavy ROI portion of our model. I will speak more on this exciting development later. While we believe Lifeline will certainly be the accelerator of growth in the short term, we have full confidence that our other revenue streams will scale quickly in 2026. Point of sale and prepaid services, for example, also increased significantly year over year to 13.1 million, a 177% increase. This part of our ecosystem consists of LinkUp Mobile, our affordable prepaid wireless offering, and consumer products like phone in a box, a grab-and-go kit for convenience stores, which includes a smartphone, SIM, and 30-day service. We fully launched LinkUp Mobile in April, activating approximately 10,000 users. In July, we more than doubled that, surpassing 20,500 activations. And today, we are over 95,000 recurring active subscribers. This growth is driven primarily by expanded retail distribution, targeted marketing, and competitive pricing. The grind of market adoption takes longer on the prepaid side of the wireless business, but we are seeing the expected traction. These drivers are sustainable as we continue opening new doors and building customer loyalty. The heart of this model is our proprietary point of sale software, which not only facilitates transactions, but also drives recurring revenue from activations and replenishments right at the convenience store register. It's not just a tool, it's the backbone of our ecosystem and a true competitive advantage. Third-party prepaid wireless top-ups revenue is a key indicator of future revenue growth in our other products. For Phone in a Box, we partner with distributors like HT Hackney, which has mass market reach and services over 40,000 stores. We are in advanced talks with other national convenience store distributors, each with footprints in tens of thousands of community store retail locations like HT Hackney. Our near-term goal is to ramp to 100,000 locations operating on the Surge Pays platform, driven by a combination of organic growth and distribution agreements with HT Hackney and other partners. On the wholesale side, our MB&E platform, Hero, is a growing revenue engine with a robust pipeline. As an MVNE, we provide billing, provisioning, SIMs, and eSIMs to other wireless companies, a high margin model with minimal incremental costs and low overhead. Many MVNOs in the market today are actually sub-MVNOs. We're one of the few with direct carrier access, putting us in a rare and powerful position. To date, we've onboarded three MVNO partners. Collectively, these partners serve thousands of subscribers, and they're looking to grow quickly, providing us with a path to scale our platform and reoccurring revenue base. In August, we had a successful show at All Wireless and Prepaid Expo with the expectation of onboarding and integrating new wholesale clients over the next six months. Lastly, we have Clearlines. our SaaS marketing platform with interactive point of sale and customer engagement tools with offers, coupons, and loyalty programs. We recently announced a strategic partnership with CorePay, a next generation payment technology provider, to integrate with our Clearline marketing and customer engagement platform into CorePay's cloud native payment processing solution. This integration brings together two complementary technologies, point-of-sale payments, and digital marketing automation, creating a first-of-its-kind capability that enables retailers to engage with customers from the moment of the transaction and beyond. By embedding Clearline's SaaS-based marketing tools directly into Corpay's payment ecosystem, the partnership is expected to create new recurring revenue streams for both companies while offering value-added functionality to merchants and resellers. Our strategy is to layer software and digital engagement tools on top of our existing POS infrastructure to create sticky recurring revenue while adding tangible value for our partners and their merchants. Clearline is active in 17 Market Basket convenience store locations today. However, there are hundreds of thousands of potential retailers beyond convenience stores from tire shops, food trucks, restaurants, and salons. Surge Pays is no longer building the foundation. The foundation is built. Now it's truly all about execution, scale, and growth. Our immediate goal is to achieve profitability with minimal impact on the cap table and dilution. Our strategy is executing precisely according to plan, and I am confident in our highly skilled team that is well equipped to navigate this industry. We are well positioned to continue this strategy through the remainder of 2025 heading into 2026. We've proven we can move fast and with our diversified platform and competitive moat, we are uniquely positioned to deliver sustainable long term shareholder value. Therefore, we remain confident in our 2026 revenue guidance of 225 million. We have built a powerful engine that blends technology innovation, and distribution. Today, we have the products, partnerships, and infrastructure to enter the next phase of high growth. Thank you for your support and belief in our mission. I'll now turn it over to Tony for a detailed review of our Q3 financials. Tony?

Thank you, Brian, and good afternoon, everyone. Third quarter 2025 revenue totaled $18.7 million, an increase of 292% year over year. as compared to $4.8 million for the third quarter of 2024, driven by an increase in MVNO and point of sale and prepaid services revenue. Gross profit loss narrowed to $2.6 million for the third quarter of 2025, compared to a gross profit loss of $7.8 million for the third quarter of 2024. We expect to continue the improvement of gross margin in the point of sale and prepaid services segment during 2025. Most of the cost to get Clearline ready for launch has occurred, and we expect the gross margin to be positive by the end of 2025 for this revenue channel. As we continue to expand both subsidized lifeline and non-subsidized products, LinkUp, mobile, of the MVNO segment in 2025, we also anticipate gross margins in the MVNO segment will increase with an aim to return to positive results. SG&A expenses decreased 32.5% year over year, to $4.2 million during the third quarter of 2025 as compared to $6.2 million for the third quarter of 2024. The decrease was primarily due to a reduction in contractor and consultant expense along with compensation expense. Loss from operations was $7 million in the third quarter of 2025 compared to $14.3 million in the third quarter of 2024. Our reported net loss and loss per share for the third quarter of 2025 were $7.5 million and negative $0.38 per share. Turning to the balance sheet, our cash, cash equivalents, and investment balances as of September 30, 2025 were $2.5 million compared to $11.8 million as of December 31, 2024. As Brian mentioned, we are providing revenue guidance of $225 million for 2026. At this time, I would like to turn the call back over to Brian for closing statements.

Thanks, Tony. Before we open the call for questions, I do want to take a moment to discuss the recently announced launch of our new growth marketing and data partnerships division. The initiative marks yet another significant step forward in our strategy to transform our expanding consumer data ecosystem into a scalable, high-margin growth engine. This engine was built by reengineering our legacy LogixIQ system called DigitizeIQ, which was originally developed for consumer intake and lead generation serving mass tort law firms. Management made the decision over a year ago to close down operations as this was a completely different line of business. We wanted laser focus on our business plan. Our development team has now transformed the digitized IQ platform into a powerful intake engine designed explicitly for underserved subprime consumer marketing and data collection. Instead of simply signing up wireless customers, we now operate a platform that connects affiliates and publishers within a unified ecosystem. This capability transforms verified consumer data into actionable marketing intelligence, creating multiple revenue opportunities from each customer relationship. While promoting government subsidized programs such as Lifeline to underserved consumers, we can simultaneously present a targeted marketplace of complementary products and services to our expanding database. Our ongoing objective has been to reduce customer acquisition costs by generating incremental revenue from adjacent services. We have now reached the next phase, monetizing this data ecosystem to produce recurring high margin revenue and deliver sustained value for shareholders. In essence, we have built a platform capable of generating revenue during the customer acquisition process, rather than incurring a cost to acquire each customer. This initiative is expected to generate high margin recurring revenue through data partnerships analytics integrations and targeted marketing programs. We believe the consumer data for this subprime market is valuable and the market has ballooned to over 137 million people. As SurgePace continues to scale its wireless and fintech operations, the combination of customer intelligence and marketing execution will serve as a long-term competitive advantage. To summarize, Q3 was a significant inflection point for our company. We are now in acceleration mode and the numbers already reflected. Our activation growth, expanding distribution and scalable technology platforms give us confidence that we're on the right path to create significant shareholder value. I would like to thank our shareholders for their continued support and the team for their tireless efforts in making this growth possible. Operator, please open the call for questions.