SurgepaysSURG +1.89%31 Gross Margin % is -48.15% as of Mar. 2026. GuruFocus rates SURG with a GF Score™ of 31/100 and a GF Value™ of $1.43 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 341 Telecommunication Services companies, Surgepays ranks worse than 99.41% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Surgepays's Gross Profit for the
three
months ended in Mar. 2026 was $-7.70 Mil. Surgepays's Revenue for the
three
months ended in Mar. 2026 was $15.98 Mil. Therefore, Surgepays's Gross Margin % for the quarter that ended in Mar. 2026 was -48.15%.
The historical rank and industry rank for Surgepays's Gross Margin % or its related term are showing as below:
SURG'
s Gross Margin % Range Over the Past 10 Years
Min: -24.6 Med: 12.1 Max: 43.78
Current: -24.6
During the past 13 years, the highestGross Margin % of Surgepays was 43.78%. The lowest was -24.60%. And the median was 12.10%.
SURG's Gross Margin % is ranked worse than 99.41% of 341
companies
in the Telecommunication Services industry
Industry Median: 51.5
vs SURG: -24.60
Surgepays had a gross margin of -48.15% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Surgepays was 0.00% per year.
Surgepays (NAS:SURG) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Surgepays had a gross margin of -48.15% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Surgepays Gross Margin % Related Terms
Surgepays Gross Margin % Historical Data
* Premium members only.
The historical data trend for Surgepays's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
SURG vs IQST, KTEL, HMMR: Gross Margin % Comparison
For the Telecom Services subindustry, Surgepays's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Surgepays Gross Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Surgepays's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Surgepays's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Surgepays (SURG) has a Gross Margin % of -48.15% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Surgepays and its competitors. According to the industry distribution chart, Surgepays ranks #339 out of 341 companies in the Telecommunication Services industry, placing it in the top 99.4%.
Is Surgepays' Gross Margin % too high?
Surgepays' current Gross Margin % is -48.15%. Based on the distribution chart, Surgepays ranks #339 out of 341 companies in the Telecommunication Services industry, which is in the bottom quartile relative to peers. Overall, Surgepays has a GF Score™ of 31/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Surgepays' Gross Margin % compare to IQST and KTEL?
According to the Telecommunication Services industry distribution chart, Surgepays ranks #339 out of 341 companies for Gross Margin %. This places Surgepays in the lower half of its industry. The industry median Gross Margin % is 51.50. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Telecommunication Services company?
The median Gross Margin % among Telecommunication Services companies is 51.50, based on 341 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Surgepays and its competitors. For the Telecommunication Services industry, the median Gross Margin % is 51.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Surgepays's current Gross Margin % is -48.15%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Surgepays stock overvalued right now?
Based on GuruFocus' analysis, Surgepays (SURG) is currently considered Possible Value Trap. The stock's GF Value™ is $1.43, compared to a current price of $0.39 — trading 73% below its estimated fair value. The current Gross Margin % is -48.15%. Surgepays' overall GF Score™ is 31/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Surgepays (SURG), the current Gross Margin % is -48.15% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Surgepays (SURG) Overvalued in 2026?
Based on GuruFocus' analysis, Surgepays stock appears to be undervalued.
The current stock price of $0.39 is trading 73% below its estimated GF Value™ of $1.43.
GuruFocus considers Surgepays to be Possible Value Trap.
Key valuation signals for SURG:
Gross Margin %: -48.15%
GF Value™: $1.43 vs. price of $0.39 (73% below fair value)
No single metric tells the full story. See the SURG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Surgepays Inc is a wireless and point of sale technology company focused on serving underserved and value-conscious consumers through a combination of retail distribution and digital acquisition channels. It provides mobile connectivity, financial technology services, and transaction processing solutions through an integrated platform that combines wireless services with point of sale software and retail distribution. It enables in-store and online activation of wireless services, prepaid top-ups, and financial transactions, allowing consumers to access essential services in both local and digital environments. Its segments are wireless services or MVNO Telecommunications, platform services or MVNE Enablement Platform (HERO), and wholesale enablement or Comprehensive Platform Services.
31GF Score
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