Q1 2026 Sangoma Technologies Corp Earnings Call Transcript

Nov 10, 2025 / 10:30 PM GMT

Release Date Price: C$7.08 (+1.87%)

Transcript

Key Points

Positve

Sangoma Technologies Corp (SANG) reported a strong start to fiscal 2026, exceeding consensus analysts' expectations.
The company has successfully transitioned to a higher margin recurring revenue model, now representing 90% of total revenue.
New pipeline creation increased by 39% quarter over quarter, indicating strong future growth potential.
Sangoma's bundled mid-market wins are materializing, with deals spanning multiple verticals such as wholesale, carrier, education, and healthcare.
The company maintains a strong balance sheet, providing flexibility to invest and adapt quickly to market dynamics.

Negative

Free cash flow was temporarily impacted by a $3.2 million negative change in working capital due to a technical issue with a new payment processor.
Revenue for the first quarter decreased by 8.5 million from the fourth quarter, primarily due to the divestiture of the third-party hardware retail business.
Core revenue decreased by 6% year over year, reflecting longer sales cycles on larger MRR deals.
Gross margin was lower than expected, driven by a higher attachment of product to recurring revenue offerings.
The company incurred restructuring costs related to its transformation and ERP implementation.

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

STC.TO - Sangoma Technologies Corp
Q1 2026 Sangoma Technologies Corp Earnings Call
Nov 10, 2025 / 10:30PM GMT

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Presentation
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Unidentified_1 [1]
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Thank you for standing by. This is the conference operator. Welcome to the Sangoma Investor Conference call. As a reminder, all participants are in listen-only mode and the conference is being recorded.

Following the presentation, there will be an opportunity to ask questions. To join the question queue, you may press then one on your telephone keypad.

Should you need assistance during the conference call, you may reach an operator by pressing, then 0.

I would now like to turn the conference over to Samantha Redburn, Chief Legal Officer. Please go ahead, Ms. Redburn.

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Unidentified_2 [2]
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