Sangoma Technologies Corp
TSX:STC
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.
Beat Expectations: Q1 exceeded analyst consensus with revenue, adjusted EBITDA, and free cash flow tracking to plan.
Recurring Revenue: Over 90% of total revenue now comes from high-margin, recurring sources after exiting the third-party hardware resale business.
Growth Pipeline: New pipeline creation surged 39% quarter-over-quarter, with a growing mix of larger, strategic deals.
Bookings Momentum: MRR bookings grew 2.4% sequentially and 6.4% year-over-year, with key large deals closed and average revenue per customer up 19% year-over-year.
Churn & Retention: Retention remains strong with blended churn near 1%, underscoring a stable recurring revenue base.
Strategic Investments: $2 million in incremental SG&A investment planned to accelerate growth and partner enablement, with ongoing debt reduction and share buybacks.
Guidance Reaffirmed: Management reaffirmed FY26 guidance for $200M–$210M in revenue and 17%–19% adjusted EBITDA margin, expecting sequential growth from Q2 onward.
Transformation Progress: Transformation initiatives, including ERP/CRM upgrades, are yielding improved operational efficiency, margin stability, and strengthened partner programs.
