LinkUp Mobile Hits 100K Subscribers by Targeting Underserved Markets

BARTLETT, Tenn. – February 02, 2026 – SurgePays, Inc. (NASDAQ: SURG) announced today that its prepaid wireless brand, LinkUp Mobile, has crossed a significant threshold, surpassing 100,000 ongoing active subscriber lines. The milestone marks a major validation for the company's unique, retail-focused strategy in the highly competitive prepaid wireless sector and signals a crucial step in its journey towards profitability.

LinkUp Mobile, which operates as a prepaid mobile virtual network operator (MVNO) on AT&T’s network, is distinct from SurgePays' government-subsidized wireless offerings. It serves customers who purchase their mobile service directly, often through a network of local convenience stores and independent retailers. This achievement is not just a number; it represents a foundational success for a business model built from the ground up to serve a specific, often overlooked, consumer base.

“Crossing 100,000 active subscriber lines is a significant operational milestone,” said Derron Winfrey, President of Sales and Operations at SurgePays, in a company statement. “The first 100,000 lines are often the most difficult. It is the stage where product market fit, operational execution, and distribution capabilities are established. With that foundation in place, growth becomes more repeatable as distributor relationships and retail footprint continue to expand.”

A Different Kind of Growth Strategy

In an era where digital-first customer acquisition dominates, LinkUp Mobile’s success is a testament to a more traditional, boots-on-the-ground approach. Instead of pouring resources into online advertising, SurgePays has focused on building a robust physical distribution channel. The company's strategy hinges on its proprietary point-of-sale (POS) platform, which is embedded in thousands of retail locations across the country.

This model transforms neighborhood convenience stores and bodegas into what the company calls “underbanked tech hubs.” These are trusted, high-traffic locations where its target customers—subprime and underserved consumers—already live, work, and shop. By partnering with master distributors and individual store owners, SurgePays has created an efficient pipeline for SIM activations and monthly top-ups.

A prime example of this strategy in action is the “Phone-in-a-Box” program launched in mid-2025. These ready-to-sell smartphone kits, which include a device and the first month of service, were designed specifically for the non-wireless retail channel. The initial run of 2,600 units sold out in less than a month, demonstrating strong demand from both retailers and consumers for a simple, all-in-one solution.

This approach creates a symbiotic relationship. Customers gain access to essential mobile service in a convenient and familiar setting. Retailers earn commissions on initial sales and, more importantly, on recurring monthly top-ups, driving repeat foot traffic and creating opportunities for cross-selling other products. For SurgePays, it provides a cost-effective and scalable distribution network that it directly controls, a key advantage in the MVNO market.

The Economics of Prepaid and the Path to Profit

Surpassing 100,000 subscribers is a critical inflection point. For many MVNOs, achieving this level of scale is essential for financial viability. It demonstrates that the product has found its market and that the operational infrastructure can support growth. SurgePays has positioned this milestone as a clear indicator of LinkUp Mobile's progress towards breaking even.

“This milestone reflects disciplined execution and an expected achievement as we move closer to breakeven,” Winfrey added. “We are building LinkUp Mobile through relationships we control and with partners aligned for long-term growth. That approach positions us well as we continue scaling towards profitability in 2026.”

The company has affirmed its full-year 2026 revenue guidance of $225 million to $240 million, with the growth of LinkUp Mobile being a key contributor. However, this optimism for the prepaid brand exists within a more challenging broader financial picture for the parent company. Recent financial reports for SurgePays, Inc. have shown negative operating and net margins, along with metrics indicating liquidity concerns and a high debt-to-equity ratio. This context underscores the importance of LinkUp Mobile’s success; achieving profitability in this commercial channel is crucial for improving the company's overall financial health and demonstrating the viability of its multi-pronged business model.

Bridging the Digital Divide, One Store at a Time

The story of LinkUp Mobile's growth is also a story about financial and digital inclusion. The brand specifically targets the one-third of Americans who rely on prepaid services and may be unbanked or underbanked. For this demographic, which often operates primarily in cash, a traditional postpaid mobile contract with a credit check is not a viable option. Access to a reliable mobile connection is not a luxury but an essential tool for daily life—for finding work, accessing services, managing finances, and staying connected with family.

By embedding its services within the local retail ecosystem, SurgePays is meeting these customers where they are. The U.S. prepaid market includes over 100 million customers, representing a massive and durable market segment. LinkUp Mobile's strategy acknowledges that for many, trust is built through face-to-face interaction and transactions are completed with cash. By providing an affordable and accessible on-ramp to essential digital services, the company is playing a role in bridging the digital divide.

Building an Ecosystem Beyond Wireless

For SurgePays, the 100,000 subscribers are more than just revenue streams; they are the foundation of a much larger ambition. The company’s long-term vision is to evolve from a wireless and fintech provider into a comprehensive digital marketplace and data intelligence platform for the underserved market.

Each LinkUp Mobile subscriber represents a verified consumer and a wealth of potential data insights. In late 2025, SurgePays launched a new Growth Marketing and Data Partnerships division, tasked with monetizing this expanding consumer data ecosystem. The goal is to leverage its proprietary software platform, DigitizeIQ, to convert transactional data into measurable growth opportunities and build recurring, high-margin revenue streams through digital partnerships.

The company has also outlined plans for opportunistic expansion into complementary services. With an established and engaged customer base, SurgePays sees potential to offer services like telehealth, digital payments, and even streaming service acquisitions. The retail network and subscriber base built by LinkUp Mobile serve as the critical entry point for this expanding ecosystem, creating long-term engagement and increasing the lifetime value of each customer relationship.