BARTLETT, Tenn., July 01, 2026 (GLOBE NEWSWIRE) -- SurgePays, Inc. (NASDAQ: SURG) (“SurgePays” or the “Company”), a wireless and fintech technology company connecting subprime and underserved consumers to essential mobile and financial services, today announced an amended agreement with one of its Tier 1 wholesale wireless network providers. The amendment modernizes the Company's wholesale pricing structure, enhances the economics of subscriber growth, and strengthens the Company’s financial position.
Going forward, the amendment is expected to reduce both customer acquisition and recurring subscriber costs through improved wholesale pricing, supporting higher operating margins as the Company scales. Additionally, the amendment removes the Company's previous minimum purchase commitments an aggregate minimum spend of $50.0 million over the initial three-year term resulting in the elimination of the related contingent liability from the Company's balance sheet.
As part of the amendment, the network provider has also adjusted previously invoiced non-usage based amounts. This adjustment is expected to reduce the Company’s accounts payable by approximately $10.3 million and result in a corresponding gain of approximately $8.5 million relating to expenses previously reported for the three months ended March 31, 2026, with a favorable impact on the Company’s net income (loss) and stockholders’ equity (deficit) in the period the modification takes effect.
"This amendment removes a significant contingent liability from our balance sheet while improving the economics of every subscriber we add going forward," said Chelsea Pullano, Chief Financial Officer. "With greater flexibility and lower ongoing network costs, we can allocate capital more efficiently toward customer acquisition while maintaining our disciplined approach to operating expenses. We believe this positions the Company to scale more profitably while strengthening our financial foundation."
“This agreement removes a legacy constraint that no longer impacts how we operate, while increasing our flexibility to grow the business,” said Brian Cox, Chief Executive Officer of SurgePays. “By eliminating a fixed commitment that did not reflect actual usage and moving to a model aligned with our activity, we expect to lower our cost of goods sold and expand margins across our subscriber base. Over the past four years, we have built the infrastructure, distribution, and technology needed to support meaningful growth. With this amendment in place, we are positioned to scale across our wireless, financial services, and retail technology platforms while driving long-term shareholder value.”
Additional details regarding the amendment are included in the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission.
About SurgePays, Inc.
SurgePays, Inc. (NASDAQ: SURG) is a wireless and fintech technology company focused on expanding access to essential mobile and financial services for subprime and underserved consumers. The Company operates a nationwide ecosystem that includes its own wireless brands, LinkUp Mobile and Torch Wireless, and a proprietary point-of-sale platform deployed in thousands of retail locations, enabling wireless activations, top-ups, financial transactions, and other digital services used daily by prepaid and underbanked customers. Visit www.SurgePays.com for more information.
Cautionary Note Regarding Forward-Looking Statements
This press release includes express or implied statements that are not historical facts and are considered forward-looking within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. Forward-looking statements involve substantial risks and uncertainties and generally relate to future events or our future financial or operating performance, including statements regarding expected cost savings, margin improvement, and the anticipated financial impact of the amendment described in this release. In some cases, you can identify forward-looking statements by words such as “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” or similar terminology. Although the Company believes the expectations reflected in these forward-looking statements are reasonable, they involve known and unknown risks and uncertainties that may cause actual results to differ materially from those described in the forward-looking statements. These risks include, but are not limited to, the Company’s ability to realize the anticipated cost benefits of the amendment, maintain its relationship with its network services provider, scale its prepaid wireless business, and achieve anticipated subscriber growth. Additional information regarding these and other risks can be found in the Company’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. The forward-looking statements in this press release speak only as of the date they are made, and the Company undertakes no obligation to update them except as required by law.
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