Sangoma Technologies Corp (TSX:STC)
C$ 5.7 +0.21 (+3.83%) Market Cap: 189.69 Mil Enterprise Value: 224.52 Mil PE Ratio: 0 PB Ratio: 0.56 GF Score: 65/100

Q3 2025 Sangoma Technologies Corp Earnings Call Transcript

May 8, 2025 / 09:30 PM GMT
Release Date Price: C$8.29 (+2.35%)

Key Points

Positve
  • Sangoma Technologies Corp (SANG) delivered strong financial performance in Q3 with revenue of $58.1 million and adjusted EBITDA margins at 17%.
  • The company achieved an operating cash flow conversion from adjusted EBITDA of over 100%, indicating strong cash generation.
  • Sangoma Technologies Corp (SANG) has successfully completed its major transformation project, Project Diamond, positioning the company for future growth.
  • The implementation of a new ERP system is expected to result in efficiency gains and cost savings of approximately $5 million over the next three years.
  • Customer satisfaction has significantly improved, with Net Promoter Scores up nearly 300% and customer churn remaining low at 0.9%.
Negative
  • There was a slight revenue decline in Q3 due to the shift away from lower-margin hardware reselling.
  • The company is facing longer sales cycles in the hardware segment due to macroeconomic factors such as tariff tensions.
  • Sangoma Technologies Corp (SANG) is in the process of divesting non-core assets, which may impact short-term revenue.
  • The market for on-premises solutions is declining, posing challenges for growth in that segment.
  • The company is still navigating the complexities of integrating multiple acquisitions, which can be resource-intensive.


Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

STC.TO - Sangoma Technologies Corp
Q3 2025 Sangoma Technologies Corp Earnings Call
May 08, 2025 / 09:30PM GMT

=====================
Presentation
--------------------------------------------------------------------------------
Unidentified_1 [1]
--------------------------------------------------------------------------------
Standing by, this is the conference operator. Welcome to the Sanoma Investor conference call. As a reminder, all participants are in listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity for analysts to ask questions. To join the question queue, you may press star, then 1 on the telestone keypad. If you need assistance during the conference call, you may signal an operator of addressing star and 0.

Would not like to change the conference over to Samantha Weburn, Chief Legal Officer. Please go ahead, Ms. Eburn.

Thank you, operator. Hello everyone, and welcome to Stoma's 3rd quarter of fiscal year 2025 investor call. We are recording the call and we will
Already have an account? Log in
Get the full story
Access to All Earning Calls and Stock Analysis
30-Year Financial on one screen
All-in-one Stock Screener with unlimited filters
Customizable Stock Dashboard
Real Time Insider Trading Transactions
8,000+ Institutional investors’ 13F holdings
Powerful Excel Add-in and Google sheets Add-on
All data downloadable
Quick customer support
And much more...
30-Day 100% money back guarantee
Subscription fee may be tax deductible.
Excellent
4.6 out of 5 Trustpilot