SurgePays, Inc. 8-K

What Happened
SurgePays, Inc. (SURG) filed an 8-K reporting that on June 29, 2026 it and AT&T Mobility, LLC amended their agreement to eliminate all remaining minimum spend commitments. The prior agreement had required an aggregate minimum spend of $50.0 million over an initial three-year term. As part of the amendment, AT&T agreed to forgive approximately $10.3 million of previously billed minimum-commitment charges in excess of actual usage. SurgePays says the forgiveness will reduce accounts payable by about $10.3 million and generate a corresponding gain of roughly $8.5 million in Q2 2026 (a reversal of minimum-commitment expenses reported for the three months ended March 31, 2026). The company also expects improved wholesale pricing to lower acquisition and ongoing monthly subscriber costs and to be favorable to operating margins.

Key Details

• Amendment date: June 29, 2026.
• Prior minimum-spend obligation: aggregate $50.0 million over an initial three-year term (now eliminated).
• Forgiveness: ~ $10.3 million of billed minimum-commitment charges forgiven by AT&T.
• Accounting impact: ~ $10.3 million reduction to accounts payable and ~ $8.5 million gain recorded in Q2 2026, improving net income (loss) and stockholders’ equity (deficit) for the period.

Why It Matters
This amendment removes a material future spending requirement and erases a previously billed liability, giving SurgePays an immediate favorable accounting gain and a lower liability on the balance sheet. The company also expects lower wholesale costs going forward, which could reduce customer acquisition and monthly subscriber expenses and help margins. Investors should note the $8.5M gain is tied to reversal of past expenses and the filing frames future benefits as expected improvements in pricing and cost structure rather than guaranteed revenue increases.