Sangoma Technologies (NASDAQ:SANG) Releases Quarterly Earnings Results, Misses Expectations By $0.03 EPS

Sangoma Technologies (NASDAQ:SANG) posted its earnings results on Wednesday. The company reported ($0.07) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.04) by ($0.03), Zacks reports. Sangoma Technologies had a negative return on equity of 1.80% and a negative net margin of 2.53%.The firm had revenue of $51.00 million for the quarter, compared to analyst estimates of $52.08 million.

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

• Sangoma said it is reframing the business into hardware, applications, data networking, and voice portfolios to better highlight where growth is occurring, arguing the company is in a transition from commoditized software toward more strategic infrastructure-led revenue.
• Management cut full-year fiscal 2026 revenue guidance to CAD 204 million-CAD 205 million and lowered adjusted EBITDA margin expectations to 15%-16%, citing geopolitical and trade-related disruption in international markets as well as pricing pressure in software and UCaaS.
• The company highlighted strong momentum in its data and voice networking infrastructure businesses, with year-over-year growth of roughly 9% and 17%-19%, and said these areas are becoming the primary growth engine as AI-driven traffic increases network usage.
• Sangoma emphasized that larger integrated deployments are driving a more valuable but lumpier revenue model, with deals typically taking 6-8 months to implement and causing timing delays in services revenue recognition.
• The company generated CAD 6 million of operating cash flow in Q3, posted CAD 3.6 million of free cash flow, repaid CAD 15.5 million of term debt year to date, and continued share repurchases, underscoring strong cash generation and capital flexibility.

Sangoma Technologies Stock Performance

Shares of SANG opened at $4.11 on Thursday. Sangoma Technologies has a 1 year low of $3.71 and a 1 year high of $6.49. The stock has a market capitalization of $136.71 million, a PE ratio of -25.67 and a beta of 1.35. The company has a debt-to-equity ratio of 0.09, a quick ratio of 0.71 and a current ratio of 0.87. The stock has a 50-day simple moving average of $4.23 and a 200-day simple moving average of $4.70.

Wall Street Analyst Weigh In

A number of analysts have issued reports on SANG shares. ATB Cormark Capital Markets upgraded shares of Sangoma Technologies to a “moderate buy” rating in a research note on Thursday, February 5th. Zacks Research raised shares of Sangoma Technologies from a “strong sell” rating to a “hold” rating in a research note on Friday, April 3rd. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Sangoma Technologies in a report on Tuesday, April 21st. One investment analyst has rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Hold”.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Royal Bank of Canada grew its holdings in Sangoma Technologies by 51.2% during the 4th quarter. Royal Bank of Canada now owns 103,813 shares of the company’s stock worth $526,000 after acquiring an additional 35,173 shares in the last quarter. Susquehanna International Group LLP lifted its position in shares of Sangoma Technologies by 109.0% during the 3rd quarter. Susquehanna International Group LLP now owns 23,689 shares of the company’s stock worth $117,000 after purchasing an additional 12,352 shares during the last quarter. National Bank of Canada FI lifted its position in shares of Sangoma Technologies by 4.7% during the 3rd quarter. National Bank of Canada FI now owns 100,687 shares of the company’s stock worth $493,000 after purchasing an additional 4,499 shares during the last quarter. Scotia Capital Inc. acquired a new position in shares of Sangoma Technologies during the third quarter worth $90,000. Finally, Legacy Advisors LLC acquired a new position in shares of Sangoma Technologies during the third quarter worth $50,000. Hedge funds and other institutional investors own 39.65% of the company’s stock.

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.