NEW YORK, July 1, 2026, 18:01 EDT
- SurgePays, Inc. NASDAQ:SURG finished the session 14.9% higher at $0.41. Shares traded at $0.72 after hours after a late SEC filing.
- The company said AT&T Mobility LLC let it off the hook for about $10.3 million in minimum-commitment charges it had billed, and also dropped a $50 million minimum-spend requirement.
- The projected Q2 gain of $8.5 million is roughly 81% of SurgePays’ market cap at the close.
- The stock stayed under the Nasdaq’s $1.00 minimum bid requirement in after-hours trading.
SurgePays, Inc. NASDAQ:SURG shot higher in after-hours trading Wednesday. The wireless and fintech firm announced a change to its wholesale wireless deal that will reduce a liability nearly equal to the company’s closing market cap.
The stock ended regular trading at $0.41, up 14.9%. In after-hours trade, it showed $0.72, up another 72.3%. Volume hit 49.57 million shares, far above the 191,270-share average—about 259 times normal turnover, Google Finance data showed. The Nasdaq Composite slipped 0.66% on Wednesday, S&P 500 down 0.22%.
SurgePays said in an 8-K after the close that AT&T Mobility LLC will forgive roughly $10.3 million in minimum-commitment charges that were above real usage. The filing also said the amendment scraps all remaining minimum-spend requirements from the earlier contract, which had called for $50 million of spending over three years.
| Item | Amount | Investor read-through |
|---|---|---|
| Minimum-spend dropped | $50.0 mln | Nearly 5x the market at close |
| Cut in accounts payable | $10.3 mln | Just under all of market value at close |
| Estimated Q2 gain | $8.5 mln | Roughly 80% of the close market value |
| Market value at close | $10.45 mln | From Google Finance market data |
The filing shows the company will get an $8.5 million gain in Q2 after reversing some minimum-commitment charges that hit results in the March quarter. The company said new pricing should bring down acquisition and monthly subscriber costs, but the filing didn’t include the amount per subscriber.
CFO Chelsea Pullano said in the release the amendment takes out a “significant contingent liability.” CEO Brian Cox called it a “legacy constraint.” GlobeNewswire
The accounting impact is key here since SurgePays didn’t have much cushion left on its latest balance sheet. At March 31, SurgePays showed $2.0 million cash and cash equivalents, $17.5 million in accounts payable and accrued expenses, and it was running a stockholders’ deficit of $23.9 million. Net loss to common stockholders in the first quarter totaled $12.1 million.
| March-quarter measure | Reported amount | Deal comparison |
|---|---|---|
| Cash and cash equivalents | $2.0 mln | $8.5 mln gain is more than four times cash |
| Accounts payable and accrued expenses | $17.5 mln | $10.3 mln cut makes up about 59% |
| Net loss to common stockholders | $12.1 mln | $8.5 mln gain is about 71% as much |
| Cost of revenue less revenue | $7.7 mln | Gain beats the Q1 gross loss |
SurgePays handed investors a straight number in its latest filing, which has been in question as the company tries to grow without pushing its balance sheet further. SurgePays said first-quarter revenue rose 51% from last year to $16.0 million. But cost of revenue hit $23.7 million, so gross economics ended negative for the quarter.
The stock’s rally doesn’t solve the Nasdaq listing trouble on its own. In March, SurgePays said Nasdaq had flagged it for missing the $35 million minimum market value rule and the $1.00 minimum bid price. SurgePays now has until Sept. 14 to get back above the market-value mark, and until Sept. 21 for the price rule. Each rule needs at least 10 straight business days in compliance.
Google Finance showed a $0.72 after-hours price. With 25.12 million shares out, that puts the market cap near $18 million. That’s about half the $35 million mark. The price also stayed under $1.00.
Nasdaq will shut for Independence Day observed on Friday, July 3, 2026, according to its holiday calendar. That leaves the market open for a full session the day before the extended U.S. holiday.
