Sangoma Technologies Corp
NASDAQ:SANG
Sangoma Technologies Corp
Sangoma Technologies Corp. engages in the provision of value-based Communications as a Service (CaaS) solutions. The company is headquartered in Markham, Ontario and currently employs 570 full-time employees. The firm's cloud-based services include unified communication (UCaaS) business communications, meetings as a service (MaaS), communications platform as a service (CPaaS), trunking as a service (TaaS), fax as a service (FaaS), device as a service (DaaS) and access control as a service (ACaaS). In addition, it offers a range of communications products, including premise-based UC systems, a full line of desk phones and headsets, and a complete connectivity suite. Its products and services are used in UC, private branch exchange (PBX), interactive voice response (IVR), contact center, carrier networks, office productivity, and data communication applications worldwide. The company is also the primary developer and sponsor of Asterisk and FreePBX, which are open-source communication software projects.
Sangoma Technologies Corp. engages in the provision of value-based Communications as a Service (CaaS) solutions. The company is headquartered in Markham, Ontario and currently employs 570 full-time employees. The firm's cloud-based services include unified communication (UCaaS) business communications, meetings as a service (MaaS), communications platform as a service (CPaaS), trunking as a service (TaaS), fax as a service (FaaS), device as a service (DaaS) and access control as a service (ACaaS). In addition, it offers a range of communications products, including premise-based UC systems, a full line of desk phones and headsets, and a complete connectivity suite. Its products and services are used in UC, private branch exchange (PBX), interactive voice response (IVR), contact center, carrier networks, office productivity, and data communication applications worldwide. The company is also the primary developer and sponsor of Asterisk and FreePBX, which are open-source communication software projects.
Bookings Surge: Sangoma reported one of its strongest booking quarters ever, with MRR bookings up 67% sequentially and 60% year-over-year, driven by large mid-market deals.
Revenue Growth: Q2 revenue was $51.5 million, up 1.2% from Q1, meeting management's guidance for sequential growth.
Recurring Revenue & Churn: Service revenue (92% of total) grew 1% sequentially, and blended churn improved to just under 1%, reflecting strong customer retention.
Profitability & Cash Flow: Adjusted EBITDA was $8.3 million (16% margin) and free cash flow increased to $8 million. Net cash from operations was $10.1 million, a 122% conversion from adjusted EBITDA.
Debt Reduction: The company retired $5.2 million in debt during Q2, with total debt now $37.6 million (down from $60.4 million last year).
Guidance Tightened: Fiscal 2026 guidance was tightened to $205–208 million revenue and 17–18% adjusted EBITDA margin, assuming continued sequential revenue growth.
Strong Backlog: Q3 starting backlog is up about 125% from Q2, providing strong visibility into the second half of fiscal 2026.
Disciplined Capital Allocation: Sangoma continues to repurchase shares, reduce debt, and is actively evaluating M&A opportunities as valuations decline in the sector.
