AUS
NZ
UK
CA
USA
IND
Highlights
- Sangoma’s FY25 revenue reached USD 236.7 million.
- FY25 adjusted EBITDA stood at USD 41.0 million, representing 17% of revenue.
- FY26 revenue guidance: USD 200–210 million, with adjusted EBITDA margin of 17%–19%.
Sangoma Technologies Corporation (TSX:STC) (Nasdaq:SANG) is a business communications platform provider offering cloud, hybrid, and on-premises solutions. Its portfolio includes UCaaS, CCaaS, CPaaS, trunking, and managed services for connectivity, networking, and security. The company serves more than 100,000 customers with over 2.7 million UC seats across global markets and has been recognized for nine years in the Gartner UCaaS Magic Quadrant.
Q4 FY25 Performance
In the fourth quarter of the financial year 2025, total revenue was USD 59.4 million, an increase of USD 1.3 million or 2% compared with Q3. Gross profit was USD 40.0 million, equivalent to 67% of revenue. Operating expenses were USD 39.1 million, down 6% year over year. Net income stood at USD 0.2 million (USD 0.01 per share), compared with a net loss of USD 1.7 million in Q4 FY24. Adjusted EBITDA was USD 11.4 million, representing 19% of revenue, marking the highest level achieved in the past eight quarters. Free cash flow was USD 4.8 million (USD 0.14 per share), while net cash provided by operating activities was USD 7.1 million. After accounting for a one-time acceleration of vendor payments of USD 3.0 million related to the ERP transition, adjusted cash flow metrics were higher, with free cash flow at USD 7.8 million and net cash provided by operating activities at USD 10.1 million.
FY25 Performance
For the full fiscal year, revenue was USD 236.7 million, within the company’s guidance of USD 235–238 million. Gross profit totaled USD 161.7 million, equal to 68% of revenue. Operating expenses were USD 163.0 million, a reduction of USD 10.9 million from FY24, reflecting lower costs. Net loss for the year was USD 5.0 million (USD 0.15 per share), compared with a net loss of USD 8.7 million (USD 0.26 per share) in FY24. Adjusted EBITDA reached USD 41.0 million, at the midpoint of guidance, and represented 17% of revenue. Free cash flow was USD 32.9 million (USD 0.98 per share), slightly lower than USD 33.3 million in FY24. Including ERP-related accelerated vendor payments, adjusted cash flow for FY25 reached USD 35.9 million. Total debt at year-end was USD 47.9 million, down from USD 77.8 million, surpassing the company’s capital allocation target. Cash on hand was USD 13.5 million, reflecting the balance between debt repayment and operating cash generation.
Business Updates
During FY25, Sangoma repurchased over 500,000 shares for cancellation under its Normal Course Issuer Bid. On 30 June 2025, the company completed the sale of VoIP Supply LLC for USD 4.5 million, achieving an approximate 4x adjusted EBITDA multiple. The transaction was settled in cash subsequent to year-end.
Outlook for FY26
For FY26, Sangoma has guided total revenue in the range of USD 200–210 million, compared with USD 209 million in FY25 when excluding the contribution from VoIP Supply. Growth in the company’s core platform product and service categories is expected to emerge by the second half of FY26. Adjusted EBITDA margin is projected in the range of 17%–19%, inclusive of incremental go-to-market investments to support organic growth.
