Overview
Sangoma Technologies Corp Q4 revenue rises 2% sequentially to $59.4 mln
Adjusted EBITDA margin of 19%, highest in last 8 quarters
Co repurchased over 500,000 shares, completed sale of VoIP Supply LLC
Outlook
Sangoma expects fiscal 2026 revenue between $200 mln and $210 mln
Company anticipates Adjusted EBITDA margin of 17%-19% for fiscal 2026
Growth in core platform products expected by second half of fiscal 2026
Result Drivers
REVENUE GROWTH - Total revenue of $59.4 mln increased 2% from Q3, driven by higher product revenue from core platform products and services and third-party hardware sales
ADJUSTED EBITDA - Adjusted EBITDA margin improved to 19%, the highest in the last 8 qtrs, attributed to strategic shift towards software and services-led recurring revenue, now over 90% of business, per CEO Charles Salameh
COST MANAGEMENT - Operating expenses decreased by 6% compared to the same qtr in the prior yr, contributing to improved financial performance
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
$59.40 mln
Q4 EPS
$0.01
Q4 Net Income
$209,000
Q4 Adjusted EBITDA
$11.36 mln
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "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 28.7% above its September 16 closing price of $5.88
The stock recently traded at 132 times the next 12-month earnings vs. a P/E of 202 three months ago
Press Release: ID:nBw3Z9J38a
(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.)