Sangoma Technologies (NASDAQ:SANG) Releases Quarterly Earnings Results, Misses Expectations By $0.04 EPS

by · The Markets Daily

Sangoma Technologies (NASDAQ:SANG – Get Free Report) issued its quarterly earnings data on Wednesday. The company reported ($0.06) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.02) by ($0.04), Zacks reports. Sangoma Technologies had a negative return on equity of 1.74% and a negative net margin of 2.39%.

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 Stock Performance

Shares of NASDAQ:SANG traded down $0.07 on Wednesday, hitting $4.83. The company had a trading volume of 1,882 shares, compared to its average volume of 2,114. The stock has a market cap of $160.02 million, a price-to-earnings ratio of -30.19 and a beta of 1.33. The stock has a 50 day moving average price of $5.01 and a 200 day moving average price of $5.26. Sangoma Technologies has a 1-year low of $4.08 and a 1-year high of $7.40. The company has a current ratio of 0.87, a quick ratio of 0.72 and a debt-to-equity ratio of 0.11.

Analyst Ratings Changes

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

Check Out Our Latest Research Report on Sangoma Technologies

Institutional Trading of Sangoma Technologies

Several hedge funds have recently added to or reduced their stakes in SANG. Acadian Asset Management LLC raised its stake in Sangoma Technologies by 51.7% in the 1st quarter. Acadian Asset Management LLC now owns 181,800 shares of the company’s stock worth $809,000 after purchasing an additional 61,951 shares in the last quarter. Scotia Capital Inc. acquired a new stake in shares of Sangoma Technologies in the 3rd quarter valued at $90,000. Ewing Morris & Co. Investment Partners Ltd. boosted its stake in shares of Sangoma Technologies by 3.1% in the 2nd quarter. Ewing Morris & Co. Investment Partners Ltd. now owns 472,554 shares of the company’s stock valued at $2,923,000 after purchasing an additional 14,397 shares in the last quarter. Susquehanna International Group LLP increased its holdings in shares of Sangoma Technologies by 109.0% during the third quarter. Susquehanna International Group LLP now owns 23,689 shares of the company’s stock worth $117,000 after buying an additional 12,352 shares in the last quarter. Finally, Legacy Advisors LLC acquired a new position in shares of Sangoma Technologies in the third quarter valued at approximately $50,000. 39.65% of the stock is owned by institutional investors and hedge funds.

Sangoma Technologies Company Profile

(Get Free Report)

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.

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