Q2 2026 Sangoma Technologies Corp Earnings Call Transcript
Key Points
- Sangoma Technologies Corp (SANG) reported one of its strongest booking quarters in recent history, indicating that its go-to-market strategy is gaining traction.
- The company achieved sequential revenue growth of 1.2% and service revenue growth of 1%, reflecting the early impact of improving bookings momentum.
- Adjusted EBITDA was $8.3 million with a 16% margin, and the conversion of adjusted EBITDA to operating cash flow was strong at over 120%.
- Sangoma Technologies Corp (SANG) saw a significant increase in MRR bookings, up 67% sequentially and 60% year-over-year, driven by larger, more complex mid-market opportunities.
- The company reported a sequential improvement in churn rate, with retention remaining excellent and blended churn holding just under 1%.
- Despite sequential revenue growth, revenue was 2% lower year-over-year on a like-for-like basis, excluding revenue from VoIP Supply.
- The company anticipates some quarterly volatility as it engages with larger mid-market opportunities, which may affect short-term financial performance.
- Sangoma Technologies Corp (SANG) faces challenges in maintaining consistent revenue growth due to the timing and complexity of larger strategic deals.
- There is a need for continued investment in churn reduction and customer retention strategies to maintain low churn rates.
- The company is navigating a competitive M&A market, with opportunities arising from industry pressures, but this requires careful strategic alignment and capital allocation.
Thank you for standing by. This is the conference operator. Welcome to Sangoma's second-quarter fiscal 2026 conference call. (Operator Instructions) and the conference is being recorded. (Operator Instructions) I would now like to turn the conference over to Samantha Reburn, Chief Legal Officer. Please go ahead, Ms. Reburn.
Thank you, operator. Hello, everyone, and welcome to Sangoma's second-quarter of fiscal year 2026 investor call. We are recording the call, and we will make it available on our website for anyone who's unable to join us live. I'm here today with Charles Salameh, Sangoma's Chief Executive Officer; Jeremy Wubs, Chief Operating Officer; and Larry Stock, Chief Financial Officer. Charles will provide a high-level overview of the quarter.
Jeremy and Larry will then take you through the operating results for the second-quarter of fiscal year 2026, which ended on December 31, 2025. Following their presentation, we will open the floor for Q
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