Sangoma Technologies (US:SANG)2025-09-17 21:01Revenue Performance - Total revenue for Q4 Fiscal 2025 was $59.4 million, a 2% increase from the previous quarter, driven by product revenue growth [4]. - Fiscal 2025 total revenue was $236.7 million, within the guided range of $235 - $238 million, with a service/product revenue mix of 82%/18% [6]. - Guidance for Fiscal 2026 projects total revenue in the range of $200 - $210 million, with an expected Adjusted EBITDA margin of 17%-19% [9]. Profitability Metrics - Adjusted EBITDA for Q4 was $11.4 million, representing 19% of total revenue, the highest level in the last 8 quarters [4]. - Net loss for Fiscal 2025 was $5.0 million ($0.15 loss per share fully diluted), an improvement from a net loss of $8.7 million in the previous year [6]. - Adjusted EBITDA for Q2 2025 was $11,361, up by $251 or 2% from $11,110 in Q2 2024, with a revenue percentage of 19% [21]. Cash Flow and Expenses - Free cash flow for Q4 was $4.8 million ($0.14 per share fully diluted), with total free cash flow for Fiscal 2025 at $32.9 million ($0.98 per share fully diluted) [6]. - Free Cash Flow for Q2 2025 decreased to $4,794, down by $3,511 or 42% from $8,305 in Q2 2024 [23]. - Operating expenses for Fiscal 2025 were $163.0 million, down 6% from the previous year, reflecting cost-saving measures [6]. Debt and Financial Health - Total debt at the end of Fiscal 2025 was $47.9 million, a reduction of approximately 40% from the previous year [6]. - Interest expense (net) decreased by $806 or 55% to $658 in Q2 2025 from $1,464 in Q2 2024 [21]. Operational Efficiency - The company achieved industry-leading churn of less than 1% for both Q4 and Fiscal 2025 [4][6]. - The company completed the sale of VoIP Supply LLC for $4.5 million, securing a multiple of approximately 4x Adjusted EBITDA [6]. Tax and Depreciation - Tax expense recovery improved by $781 or 226% to a recovery of $435 in Q2 2025 compared to an expense of $346 in Q2 2024 [21]. - The company reported a decrease in depreciation of property and equipment by $210 or 17% to $993 in Q2 2025 from $1,203 in Q2 2024 [21]. Restructuring and Development Costs - Restructuring and business integration costs increased significantly by $342 or 326% to $447 in Q2 2025 from $105 in Q2 2024 [21]. - Development costs decreased by $453 or 23% to $1,510 in Q2 2025 from $1,963 in Q2 2024 [23]. - The purchase of property and equipment decreased by $613 or 43% to $822 in Q2 2025 from $1,435 in Q2 2024 [23]. Quarterly Performance - Net income for Q2 2025 was $209, a significant improvement of $1,917 compared to a loss of $1,708 in Q2 2024, representing a 112% change [21]. - Net cash provided by operating activities for Q2 2025 was $7,126, a decrease of $4,577 or 39% compared to $11,703 in Q2 2024 [23].