Cloud-based communications firm Sangoma's Q1 revenue falls on VoIP Supply sale

Sangoma Technologies

10/11/2025 22:12

Overview

Sangoma Technologies Corp fiscal Q1 revenue at $50.8 mln, down 3% yr/yr excluding divested unit

Adjusted EBITDA for fiscal Q1 at $8.3 mln, consistent with historical patterns

Net loss for fiscal Q1 widens to $2.3 mln from $1.9 mln yr/yr

Outlook

Sangoma reaffirms Fiscal 2026 revenue guidance of $200 mln to $210 mln

Company expects adjusted EBITDA margin of 17%-19% for Fiscal 2026

Sangoma anticipates sequential revenue growth in Q2 of Fiscal 2026

Result Drivers

RECURRING REVENUE MODEL - Co attributes strong results to its software- and services-led recurring revenue model, with increased average revenue per customer and bookings

GROSS MARGIN IMPROVEMENT - Gross profit margin increased to 72% from 67% in the previous quarter, driven by a shift towards higher-margin recurring services after the sale of VoIP Supply

STRATEGIC DIVESTMENT - Revenue decline attributed to strategic sale of VoIP Supply, exiting low-margin, non-recurring resale activity

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Net Income
-$2.34 mln
Q1 Adjusted EBITDA
$8.30 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

Wall Street's median 12-month price target for Sangoma Technologies Corp is $8.25, about 40% above its November 7 closing price of $4.95

Press Release: ID:nBw4FFS7Ha

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)