Sangoma Announces First Quarter Fiscal 2026 Results

Executive Summary

• Sangoma Technologies reported Q1 FY2026 revenue of $50.8 M (in line with plan) and a net loss of $2.3 M ($0.07 per share), while generating $3.2 M of free cash flow.
• Adjusted EBITDA was $8.3 M (16% of revenue) and operating expenses fell 9% year‑over‑year to $38.5 M, reflecting efficiency gains from the FY2025 transformation.
• The company reaffirmed its FY2026 guidance: total revenue $200–$210 M and Adjusted EBITDA margin 17%–19%, and announced a conference call for November 10, 2025.

Key Details

• Revenue: $50.8 M (including $7.6 M from the divested VoIP Supply, LLC; on a like‑for‑like basis revenue down 3%).
• Average Revenue per Customer: ↑19% YoY.
• Bookings: ↑6% YoY.
• Gross Profit: $36.8 M (72% of revenue), up from 67% in Q4 FY2025.
• Operating Expenses: $38.5 M, a decrease of $3.6 M (‑9%) versus the prior year quarter.
• Net Loss: $2.3 M ($0.07 loss per fully diluted share) vs. $1.9 M loss YoY.
• Adjusted EBITDA: $8.3 M (16% of revenue), in line with seasonal patterns.
• Quarterly Churn: ~1%.
• Operating Cash Flow: $4.9 M (≈60% of Adjusted EBITDA).
• Free Cash Flow: $3.2 M ($0.10 per fully diluted share).
• Share Repurchases: >700,000 shares repurchased under the Normal Course Issuer Bid since March 27 2025; 195,949 shares bought after Q1 close.
• Guidance Reaffirmed (FY2026): Revenue $200–$210 M (excluding VS contribution); Adjusted EBITDA margin 17%–19%, inclusive of incremental go‑to‑market investments.
• Conference Call: Wednesday, November 10 2025 at 5:30 pm ET; dial‑in 1‑833‑752‑3740 (International +1‑647‑846‑8617).

Notable Quotes

“Our first quarter results represent a confident start to Fiscal 2026… we delivered results aligned with our operating plan, maintained solid margins, and generated healthy free cash flow — demonstrating the strength and resilience of our recurring revenue model.” – Charles Salameh, CEO.