Sangoma Announces Second Quarter Fiscal 2026 Results

Executive Summary

• Sangoma Technologies reported Q2 FY 2026 revenue of $51.5 M, a sequential increase of 1% and a 2% YoY decline on a like‑for‑like basis after excluding a one‑time $6.4 M sale.
• Adjusted EBITDA was $8.3 M (16% of revenue) and free cash flow was $8.0 M, with net cash provided by operations of $10.1 M (122% of Adjusted EBITDA).
• The company narrowed its FY 2026 guidance to total revenue $205–$208 M and Adjusted EBITDA margin 17%–18%, reaffirming its outlook for continued sequential growth.

Key Details

• Revenue: $51.5 M (↑1% QoQ); excluding $6.4 M from the sale of VoIP Supply, LLC, revenue was down 2% YoY on a comparable basis.
• Monthly Recurring Revenue (MRR) Bookings: Up 60% YoY.
• Gross Profit: $38.2 M (74% of revenue), up from 72% in the prior quarter.
• Operating Expenses: $40.0 M, a $1.5 M (4%) increase QoQ driven by higher commissions on larger bookings.
• Net Loss: $2.0 M ($0.06 per share diluted) versus $1.9 M loss in the same quarter last year.
• Adjusted EBITDA: $8.3 M, representing 16% of revenue; in line with seasonal patterns.
• Free Cash Flow: $8.0 M ($0.24 per share diluted).
• Operating Cash Flow: $10.1 M (122% of Adjusted EBITDA).
• Share Repurchases: >700,000 shares cancelled under the Normal Course Issuer Bid; 195,949 repurchased in Q2 FY 2026.
• Debt Position: Total debt $37.6 M at quarter‑end, a ~38% reduction YoY.
• Cash Balance: $17.1 M at quarter‑end, reflecting strong cash generation offset by debt repayment ($10.3 M) and share repurchases ($1.0 M).

FY 2026 Guidance (reaffirmed & narrowed)

• Total Revenue: $205 M – $208 M (previous range $200 M – $210 M).
• Adjusted EBITDA Margin: 17% – 18% (previous range 17% – 19%).

Conference Call

• Date: Wednesday, February 4 2026
• Time: 5:30 pm ET
• Dial‑in: 1‑833‑752‑3740 (International +1‑647‑846‑8617)

Notable Quotes

“Our second quarter results demonstrate continued progress and disciplined execution across the business… we delivered sequential revenue growth consistent with our expectations, generated strong cash flow from operations, and posted a solid bookings quarter.” – Charles Salameh, CEO

All amounts are expressed in U.S. dollars unless otherwise noted.