SurgePays, Inc. (NASDAQ: SURG) announced an amendment to its agreement with one of its Tier 1 wholesale wireless network providers, according to a company press release. The amendment revises the pricing structure for wholesale wireless services and removes a previously existing minimum purchase commitment.

Under the prior agreement, SurgePays was subject to an aggregate minimum spend of $50.0 million over an initial three-year term. The amendment eliminates that commitment, which the company said will result in the removal of the related contingent liability from its balance sheet.

The network provider also adjusted previously invoiced non-usage based amounts as part of the amendment. SurgePays said this adjustment is expected to reduce its accounts payable by approximately $10.3 million and produce a corresponding gain of approximately $8.5 million related to expenses previously reported for the three months ended March 31, 2026. The company said the adjustment will have a favorable impact on net income and stockholders' equity in the period the modification takes effect.

The amended terms are also expected to lower both customer acquisition costs and recurring subscriber costs through revised wholesale pricing.

"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.

"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," said Brian Cox, Chief Executive Officer.

SurgePays filed a Current Report on Form 8-K with the Securities and Exchange Commission containing additional details regarding the amendment. The company operates wireless brands LinkUp Mobile and Torch Wireless, along with a point-of-sale platform deployed across retail locations.