Sangoma Technologies (NASDAQ:SANG) Releases Earnings Results, Misses Expectations By $0.12 EPS

Sangoma Technologies (NASDAQ:SANG) released its quarterly earnings data on Wednesday. The company reported ($0.06) EPS for the quarter, missing the consensus estimate of $0.06 by ($0.12), Zacks reports. Sangoma Technologies had a negative return on equity of 1.74% and a negative net margin of 2.39%.The business had revenue of $51.50 million during the quarter, compared to the consensus estimate of $51.17 million.

Here are the key takeaways from Sangoma Technologies’ conference call:

• Q2 results met guidance — revenue was $51.5M (+1.2% sequential), adjusted EBITDA $8.3M (16%), cash conversion >120% and free cash flow was $8.0M ($0.24/share); management tightened FY26 guidance to $205–208M revenue and 17%–18% adjusted EBITDA margin.
• Strong bookings and MRR momentum — MRR bookings rose 67% QoQ and 60% YoY, several large mid‑market and wholesale deals closed (including a >$150K MRR, 350+ location retail win), and Q3 starting backlog is up ~125%, giving visibility into H2 revenue.
• Improving cash & capital allocation — the company repurchased ~196K shares in Q2 (700K+ shares retired total), generated strong free cash flow, and reduced debt to $37.6M (from $60.4M YoY), while retaining flexibility for selective M&A.
• Like‑for‑like revenue weakness and potential rollout volatility — excluding the $6.4M VoIP Supply divestiture, revenue was ~2% lower YoY, and management warned that as larger bundled deals become more common there may be quarterly revenue timing/volatility while deployments complete.

Sangoma Technologies Price Performance

Shares of NASDAQ SANG opened at $4.83 on Thursday. The stock’s 50-day simple moving average is $5.01 and its two-hundred day simple moving average is $5.26. Sangoma Technologies has a twelve month low of $4.08 and a twelve month high of $7.40. The firm has a market capitalization of $160.04 million, a P/E ratio of -30.19 and a beta of 1.33. The company has a quick ratio of 0.72, a current ratio of 0.87 and a debt-to-equity ratio of 0.11.

Analysts Set New Price Targets

Separately, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Sangoma Technologies in a report on Thursday, January 22nd. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $11.00.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of SANG. Legacy Advisors LLC bought a new stake in Sangoma Technologies during the third quarter valued at approximately $50,000. Scotia Capital Inc. bought a new stake in shares of Sangoma Technologies during the 3rd quarter worth $90,000. Susquehanna International Group LLP grew its position in Sangoma Technologies by 109.0% in the third quarter. Susquehanna International Group LLP now owns 23,689 shares of the company’s stock worth $117,000 after acquiring an additional 12,352 shares in the last quarter. National Bank of Canada FI increased its stake in Sangoma Technologies by 4.7% in the third quarter. National Bank of Canada FI now owns 100,687 shares of the company’s stock valued at $493,000 after acquiring an additional 4,499 shares during the last quarter. Finally, Acadian Asset Management LLC raised its position in Sangoma Technologies by 51.7% during the first quarter. Acadian Asset Management LLC now owns 181,800 shares of the company’s stock valued at $809,000 after purchasing an additional 61,951 shares in the last quarter. 39.65% of the stock is currently owned by institutional investors.

About Sangoma Technologies

Sangoma Technologies Corporation (NASDAQ:SANG) is a global provider of enterprise communications solutions that enable organizations to deploy voice, video, and data services across on-premises and cloud environments. The company’s offerings include unified communications platforms, SIP-based telephony hardware, VoIP gateways, session border controllers, and related endpoints. Sangoma serves small and medium-sized businesses as well as larger enterprises, delivering solutions for IP telephony, collaboration, contact centers, and SIP trunking.

The company’s product portfolio comprises software-based PBX systems such as PBXact and FreePBX, along with hardware appliances for secure and scalable connectivity.