Overview

* Sangoma TechnologiesQ4 revenue rises 2% sequentially to $59.4 mln

* Adjusted EBITDA margin of 19%, highest in last 8 quarters

* Co repurchased over 500,000 shares, completed sale of VoIP Supply LLC

Outlook

* Sangoma expects fiscal 2026 revenue between $200 mln and $210 mln

* Company anticipates Adjusted EBITDA margin of 17%-19% for fiscal 2026

* Growth in core platform products expected by second half of fiscal 2026

Result Drivers

* REVENUE GROWTH - Total revenue of $59.4 mln increased 2% from Q3, driven by higher product revenue from core platform products and services and third-party hardware sales

* ADJUSTED EBITDA - Adjusted EBITDA margin improved to 19%, the highest in the last 8 qtrs, attributed to strategic shift towards software and services-led recurring revenue, now over 90% of business, per CEO Charles Salameh

* COST MANAGEMENT - Operating expenses decreased by 6% compared to the same qtr in the prior yr, contributing to improved financial performance

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q4 $59.40

Revenue mln

Q4 EPS $0.01

Q4 Net $209,000

Income

Q4 $11.36

Adjusted mln

EBITDA

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "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 28.7% above its September 16 closing price of $5.88

* The stock recently traded at 132 times the next 12-month earnings vs. a P/E of 202 three months ago

Press Release:

(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.)