Sangoma Announces First Quarter Fiscal 2026 Results

Core Insights - Sangoma Technologies Corporation reported solid first quarter results for Fiscal 2026, demonstrating the strength of its recurring revenue model and reaffirming its guidance for the fiscal year [2][4]. Financial Performance - Total revenue for the first quarter was $50.8 million, with a sequential growth expected in Q2. Excluding $7.6 million from VoIP Supply, LLC, revenue decreased by 3% year-over-year on a like-for-like basis [5]. - Average revenue per customer increased by 19% year-over-year, and bookings rose by 6%, supporting the growth outlook for the remainder of the year [5]. - Gross profit was $36.8 million, representing 72% of total revenue, an increase from 67% in the previous quarter, driven by a shift towards higher-margin recurring services [5]. - Operating expenses decreased by 9% year-over-year to $38.5 million, reflecting efficiency gains from transformation activities [5]. - The company reported a net loss of $2.3 million, compared to a net loss of $1.9 million in the same quarter last year [5]. - Adjusted EBITDA was $8.3 million, representing 16% of total revenue, consistent with historical seasonal patterns [5]. Guidance and Strategic Direction - Sangoma reaffirmed its guidance for Fiscal 2026, expecting total revenue in the range of $200 - $210 million, compared to $209 million in Fiscal 2025, excluding the contribution from VoIP Supply [4]. - The company is focused on expanding its software and services portfolio and deepening relationships with its global customer and partner base [2]. Shareholder Value and Capital Management - Free cash flow for the first quarter was $3.2 million, with net cash provided by operating activities at $4.9 million, representing 60% of Adjusted EBITDA [5]. - The company has repurchased over 700,000 shares under its Normal Course Issuer Bid, including 195,949 shares repurchased after the end of the first quarter [5].