SurgePays Launches Alpha Cash Pilot to Monetize Subprime Consumer Distribution, First in a Planned Series

A 25,000 Activation Pilot to Test Monetizing SurgePays' Subprime Customer Base. 

Terms: $10 Bounty, $250,000 Pool, 10% Revenue Share, 5 Year Tail

BARTLETT, Tenn., May 12, 2026 (GLOBE NEWSWIRE) -- SurgePays, Inc. (NASDAQ: SURG) ("SurgePays" or the "Company"), a fintech and mobile virtual network operator serving the approximately 138 million subprime consumers in the United States, today announced the launch of a 25,000 Activation Pilot to integrate the Alpha Cash mobile wallet across SurgePays’ distribution surface, under a multi-year Commercial Integration and Distribution Agreement with Alpha Modus Holdings, Inc. (NASDAQ: AMOD). The pilot is the first of a planned series of programs designed to monetize each subprime consumer SurgePays acquires across its three distribution channels. Each consumer the Company acquires can now be paired with additional life enhancing financial and benefit products distributed through the same platform.

SurgePays reaches the subprime consumer through three distribution channels: a proprietary point of sale platform deployed across approximately 9,000 convenience store retail locations nationwide; the Company’s wholly owned prepaid wireless brands LinkUp Mobile and Torch Wireless; and the ProgramBenefits.com platform, which will prioritize Alpha Cash in its AI driven decisioning across the financial and benefit products it offers. Each of these channels delivers a verified, know your customer (KYC), validated subprime consumer that SurgePays has already paid to acquire. Upon launch, the Alpha Cash pilot is designed to layer a second revenue stream onto every consumer who chooses to enroll: a $10 per activation bounty up front, plus a 10% revenue share on net revenue from each funded wallet user for five years. The pilot is capped at 25,000 funded activations under a $250,000 bounty pool, with rollout beyond the cap requiring a new definitive agreement so that both companies can validate pilot economics before expansion.

Key terms of the executed pilot agreement:

• $10 per activation bounty on each qualifying funded activation.
• $250,000 fixed bounty pool across the 25,000 activation cap.
• 10% revenue share on net revenue from each enrolled wallet user.
• 5 year revenue share period per enrolled user.
• $25 minimum funded load required to qualify as an activation.
• Roll out beyond the 25,000 activation cap requires a new definitive agreement, allowing both companies to validate pilot economics before expansion.
  
  

What the pilot is designed to evaluate:

Beyond its standalone economics, the 25,000 activation pilot is structured as a controlled framework for SurgePays to evaluate the variables that will determine the rollout cadence of additional consumer financial and benefit programs: the optimal pay schedule structure (per activation bounty versus pure revenue share versus blended), the appropriate revenue share rate and tail duration, the impact on customer acquisition cost when monetization is layered onto an already acquired wireless customer, and the cash flow timing between bounty receipts and revenue share recognition. SurgePays believes the data generated by this pilot will be directly applicable to subsequent programs across additional life enhancing product categories.

The Alpha Cash integration is engineered to operate across SurgePays’ distribution surface as a whole. The Company will sequence the rollout to begin inside the ProgramBenefits.com platform, where consumer KYC data and engagement are already captured, and will extend the integration into LinkUp Mobile, Torch Wireless, and the convenience store retail channel as pilot performance is validated. Qualifying funded activations across these channels count toward the 25,000 activation cap. Initial activations under the pilot are targeted to begin in the second half of 2026.

Brian Cox, Chief Executive Officer of SurgePays, commented “SurgePays reaches the subprime consumer through three distribution channels: prepaid wireless, our point-of-sale platform across approximately 9,000 convenience stores, and the ProgramBenefits.com platform. The opportunity in front of this Company is to put more life-enhancing products in front of every subprime consumer who flows through those channels, including financial products, benefit programs, and savings tools, and to earn a revenue share on each one. The Alpha Cash pilot is the first deliberate step in that direction. It is also a learning vehicle. A cohort of 25,000 funded activations is the right scale to evaluate which pay schedules, revenue share structures, and product types translate into the strongest impact on the cost to acquire customer (CAC), cash flow, and revenue per consumer. The principle is simple. The more we earn per individual customer, the more we can spend acquiring the next one, and the curve compounds. This pilot is the first proof point of that model. We expect it to be one of many.”

SurgePays will provide additional commentary on the Alpha Cash Pilot during its First Quarter 2026 earnings call, scheduled for Friday, May 15, 2026, at 11:00 AM ET. Investors interested in the call can register at ir.surgepays.com.

About SurgePays, Inc.

SurgePays, Inc. (“SurgePays” or the “Company”) (NASDAQ: SURG) is a fintech and mobile virtual network operator (MVNO) that delivers prepaid wireless and financial products to the approximately 138 million subprime consumers in the United States. Through its proprietary point of sale platform deployed across approximately 9,000 convenience stores and a growing Retail Media Network, SurgePays enables retailers to offer wireless activations, top ups, and consumer financial services. The Company’s subsidiaries include LinkUp Mobile, Torch Wireless, the HERO mobile virtual network enabler (MVNE) platform, and the ProgramBenefits.com platform, which is being built to incorporate AI driven decisioning across the financial and benefit products it offers. SurgePays is headquartered in Bartlett, TN. Learn more at www.surgepays.com and ir.surgepays.com.

About Alpha Modus Holdings
Alpha Modus Holdings, Inc. (“Alpha Modus”) (NASDAQ: AMOD) is a vertical AI company focused on real time, in store shopper engagement and attribution. Its patented “closed loop” retail AI framework, Sense to Decide to Deliver to Attribute, enables brands and retailers to measure the full impact of digital content, physical interactions, and transaction outcomes. Through subsidiaries like Alpha Modus Financial Services, the company is actively deploying technologies that merge artificial intelligence, retail media, and financial access across the physical retail landscape. Learn more at www.alphamodus.com.

Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact contained in this press release, including statements regarding the Company’s expectations, beliefs, plans, intentions, projections, future operations, anticipated financial performance, future revenue, future customer acquisition cost economics, the Alpha Cash Pilot and any Activations thereunder, the timing of initial Activations, projected ARPU, projected lifetime revenue per Activation, the potential for expansion beyond the 25,000 Activation Pilot cap, the entry into any future definitive agreement with Alpha Modus Holdings, Inc., the integration of the Alpha Cash mobile wallet across the Company’s prepaid wireless and convenience store distribution channels, and the Company’s partnerships, products, services, business strategy and growth opportunities, are forward-looking statements. Words such as “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would,” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Forward-looking statements are based on management’s current expectations and assumptions and are subject to a number of risks, uncertainties, and other factors, many of which are outside the Company’s control, that could cause actual results, performance, or achievements to differ materially from any future results, performance, or achievements expressed or implied by such statements. These risks and uncertainties include, but are not limited to: the Company’s ability to execute the Alpha Cash Pilot on the projected timeline; Activation, funding, retention and ARPU rates differing materially from internal assumptions; the Company’s ability to integrate the Alpha Cash mobile wallet with its proprietary point of sale platform; counterparty performance, including the performance of Alpha Modus Holdings, Inc. and any third party processors, KYC providers, or wallet operators; changes in regulatory, compliance, or licensing requirements affecting prepaid wireless, mobile wallets, money transmission, or consumer financial services; changes in U.S. federal or state law or enforcement priorities; macroeconomic conditions affecting the subprime consumer market; competitive dynamics in prepaid wireless and convenience store retail; the Company’s ability to retain and grow its existing subscriber base and 9,000 store distribution footprint; the Company’s liquidity, capital resources and financing needs; cybersecurity and data privacy incidents; litigation; and the other risks and uncertainties described under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and in the Company’s Quarterly Reports on Form 10-Q and Current Reports on Form 8 K filed with the U.S. Securities and Exchange Commission, which are available at www.sec.gov. Any forward-looking statement speaks only as of the date on which it is made, and the Company undertakes no obligation, and expressly disclaims any obligation, to update, amend, or clarify any forward-looking statement to reflect events, new information, changed circumstances, or otherwise, whether as a result of new information, future events, or otherwise, except as required by applicable law. Readers are cautioned not to place undue reliance on any forward-looking statement. Nothing in this press release constitutes an offer to sell, or the solicitation of an offer to buy, any securities of the Company.

SurgePays Investor Contact
Valter Pinto, Managing Director
KCSA Strategic Communications
212-896-1254
SurgePays@KCSA.com

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