SurgePays Inc. shares rose 38.08% to close at $0.57 on Thursday, after the Tennessee-based wireless and fintech company amended its agreement with AT&T Inc. The deal restructures wholesale pricing and eliminates a prior $50 million minimum purchase commitment over three years, wiping the related contingent liability from SurgePays’ balance sheet. This strategic shift is expected to lower both customer acquisition and recurring subscriber costs through improved wholesale pricing, enhancing operating margins as the company scales.

According to the company, AT&T Inc. also adjusted previously invoiced non-usage charges, a move expected to cut accounts payable by roughly $10.3 million and generate an $8.5 million gain relating to expenses previously reported for the three months ended Mar. 31. The financial impact will favorably affect the company’s net income and stockholders’ equity for the period. The amendment, effective July 01, 2026, removes the aggregate minimum purchase requirement over the initial three-year term.

Chief Financial Officer Chelsea Pullano said the amendment "removes a significant contingent liability from our balance sheet while improving the economics of every subscriber we add going forward." Chief Executive Officer Brian Cox highlighted that the agreement removes a legacy constraint that no longer reflects actual usage. "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," Cox stated.

Financial Impact

The agreement modification delivers immediate balance sheet relief and operational flexibility. The elimination of the $50.0 million commitment removes a significant future liability, while the debt forgiveness provides an immediate boost to equity.

Trading Metrics

SurgePays has a market capitalization of $10.45 million. The stock has traded between a 52-week high of $3.45 and a 52-week low of $0.34. Volume for the telecom company surged well above normal levels on Thursday, rising to 70.68 million shares compared with an average daily volume of 191.27K shares. The stock has a Relative Strength Index (RSI) of 44.18. Over the past 12 months, SURG has dropped 86.87%.

Ascendiant Capital analyst Edward Woo has maintained a Buy rating on Surgepays while lowering the price target to $3.5 from $5. The revised target indicates a shift in the valuation outlook for the NASDAQ-listed company, despite the continued positive stance on its stock performance potential.

The rating update provides investors with a new reference point for the stock's price trajectory. While the Buy rating suggests confidence in the company's fundamentals or growth prospects, the reduction in the price target signals a recalibration of expected returns.

Rating and Target Details

The following table outlines the changes in the analyst's assessment:

Surgepays trades on the NASDAQ under the ticker symbol SURG. The adjustment by Ascendiant Capital provides the market with updated guidance regarding the stock's anticipated performance.