Overview

* Sangoma Technologies Corp ( SANG ) fiscal Q1 revenue at $50.8 mln, down 3% yr/yr excluding divested unit

* Adjusted EBITDA for fiscal Q1 at $8.3 mln, consistent with historical patterns

* Net loss for fiscal Q1 widens to $2.3 mln from $1.9 mln yr/yr

Outlook

* Sangoma reaffirms Fiscal 2026 revenue guidance of $200 mln to $210 mln

* Company expects adjusted EBITDA margin of 17%-19% for Fiscal 2026

* Sangoma anticipates sequential revenue growth in Q2 of Fiscal 2026

Result Drivers

* RECURRING REVENUE MODEL - Co attributes strong results to its software- and services-led recurring revenue model, with increased average revenue per customer and bookings

* GROSS MARGIN IMPROVEMENT - Gross profit margin increased to 72% from 67% in the previous quarter, driven by a shift towards higher-margin recurring services after the sale of VoIP Supply

* STRATEGIC DIVESTMENT - Revenue decline attributed to strategic sale of VoIP Supply, exiting low-margin, non-recurring resale activity

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q1 Net -$2.34

Income mln

Q1 $8.30

Adjusted mln

EBITDA

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* Wall Street's median 12-month price target for Sangoma Technologies Corp ( SANG ) is $8.25, about 40% above its November 7 closing price of $4.95

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)