SurgePays’ Q2‑2025 release disclosed that the company now expects gross‑margin performance to climb to roughly 55 %‑57 % in 2025 and to 58 %‑60 % in 2026 as its higher‑margin SaaS and subscription‑based POS solutions scale faster than the hardware component of its business. Correspondingly, the firm is budgeting operating expenses of about $28 million–$32 million for 2025 and $33 million–$38 million for 2026, reflecting incremental hires in sales, product development and international expansion while still keeping SG&A in line with the anticipated revenue jump to $75‑$90 million (2025) and $225‑$240 million (2026).
From a trading standpoint, the upward‑sloping margin trajectory gives the stock a stronger earnings‑per‑share upside than the top‑line guidance alone suggests, especially if operating leverage materializes as planned. Technical charts show SurgePays breaking above its 50‑day moving average on volume, with the 200‑day line offering a near‑term resistance point around $12.50. A bullish entry on a pull‑back to the 20‑day EMA (~$11.30) with a stop just below the 200‑day support (~$10.70) could capture the upside from both revenue expansion and margin improvement. Conversely, a miss on the 2025 operating‑expense ceiling (i.e., expenses trending toward the high‑end of the $32 M range) could pressure the stock back toward its current $10‑$11 range, so watch SG&A and R&D spend disclosures in the upcoming 10‑Q.