Sangoma Announces Third Quarter Fiscal 2026 Results

The most recent news, dated May 13, 2026, reports Sangoma’s third-quarter fiscal 2026 results and the initiation of a strategic review process. - Q3 FY2026 revenue was $51.0 million, essentially flat sequentially and down less than 2% year-over-year on a like‑for‑like basis (excluding the $6.3 million contribution from the sold VoIP Supply unit). - Gross profit was $36.4 million (71% margin), but the company posted a net loss of $2.3 million ($0.07 per diluted share). - Adjusted EBITDA fell to $7.5 million, representing just 15% of revenue, compared with 16% in Q2 and Q1. - Free cash flow was $3.6 million ($0.11 per share), a sharp decline from $8.0 million in the prior quarter. - Cash stood at $15.2 million, after $15.5 million in term‑loan repayments and $1.0 million in share buybacks. Total debt was reduced to $32.5 million, down 39% year‑over‑year. - Management cut full‑year FY2026 guidance: revenue now seen at $204–$205 million (previously $205–$208 million), and Adjusted EBITDA margin expected at 15%–16% (down from 17%–18%). - Crucially, the board has engaged ATB Cormark Capital Markets to evaluate strategic alternatives, including partnerships, business combinations, and investments, to maximize shareholder value.

The Q3 results and guidance cut are unequivocally negative and signal a material deterioration relative to recent quarters. Only three months earlier, management had narrowed its guidance range and reaffirmed a 17%–18% EBITDA margin; now both revenue and profitability targets have been lowered. Adjusted EBITDA margin slipped to 15%, highlighting the pressure from intense competition in communications applications. The strategic review is the most consequential element. While it could eventually unlock value (a potential sale or merger), the immediate implication is that the board sees the standalone equity as undervalued and the current trajectory as insufficient. This is a clear red flag for investors: it suggests the existing plan isn’t delivering, and the company is exploring external options. The combination of a growth stall, a guidance downgrade, a 15% EBITDA margin, and the launch of a strategic review makes this a Material - Negative event. The stock, already trading near multi‑year lows, is likely to face additional pressure as the market re‑prices the reduced outlook and the uncertainty surrounding the strategic process.

Sangoma Technologies provides a broad portfolio of cloud‑based communications solutions, including Unified Communications as a Service (UCaaS), Contact Center as a Service (CCaaS), carrier voice services, managed service provider (MSP) offerings, and integrated networking/connectivity. The company serves retail, restaurant, and carrier customers, among others. There is no single flagship mine or development project; the “project” is the ongoing build‑out of a full‑stack communications platform that bundles UCaaS, connectivity, and managed services. Recent customer wins in retail and restaurant verticals highlight this integrated model.