PartnershipJul 1, 2026, 04:07 PM
SurgePays Amends AT&T Deal, Forgives $10.3M Debt, Lowers Costs
AI Summary
SurgePays, Inc. announced an amendment to its agreement with AT&T Mobility, LLC, eliminating all remaining minimum spend commitments, which previously totaled $50.0 million. This change is expected to lower the Company's subscriber acquisition and ongoing monthly costs through improved wholesale pricing, favorably impacting operating margins. Additionally, AT&T agreed to forgive approximately $10.3 million in past minimum-commitment charges, resulting in an $8.5 million gain for SurgePays in the second quarter of 2026 and a reduction in accounts payable.
Key Highlights
- Amendment eliminates $50.0 million aggregate minimum spend commitment with AT&T.
- AT&T forgave approximately $10.3 million of previously billed minimum-commitment charges.
- Forgiveness reduces Company's accounts payable by approximately $10.3 million.
- Expected gain of approximately $8.5 million in Q2 2026 from reversal of expenses.
- Improved wholesale pricing expected to lower acquisition and monthly subscriber costs.
Price Impact
More from SURG