Sangoma Technologies Corporation reported revenue of $51.5 million for the quarter ended December 31, 2025, marking a 1% sequential increase and surpassing consensus revenue expectations. Excluding $6.4 million from the divested VoIP Supply business, like-for-like revenue was down 2% year-over-year. Gross profit rose to $38.2 million, or 74% of revenue, up from 72% in the prior quarter, driven by higher-margin recurring services. Operating expenses increased 4% sequentially to $40.0 million, reflecting elevated commissions on large bookings. The company posted a net loss of $2.0 million, or $0.06 per share, consistent with the loss in the same quarter last year. Adjusted EBITDA came in at $8.3 million, representing 16% of revenue and in line with seasonal patterns.

Operating cash flow totaled $10.1 million in Q2, equivalent to 122% of Adjusted EBITDA, while free cash flow reached $8.0 million, or $0.24 per share. Sangoma ended the quarter with $17.1 million in cash and reduced total debt by 38% year-over-year to $37.6 million. Under its Normal Course Issuer Bid, the company repurchased more than 700,000 shares since March 2025, including 195,949 shares during the quarter at an aggregate cost of approximately $1.0 million.

Monthly recurring revenue bookings increased 60% year-over-year, underscoring strength in the company’s shift toward cloud and subscription services. Quarterly churn remained below 1%, reflecting strong customer retention. Management highlighted continued progress in expanding its software and services mix and generating a higher proportion of stable, recurring revenues.

Sangoma reaffirmed and narrowed its full-year guidance, now expecting total revenue of $205–$208 million and an Adjusted EBITDA margin of 17%–18%. This adjustment follows sequential revenue growth in Q2 and reflects planned go-to-market investments to drive organic expansion. The company’s leadership emphasized disciplined capital allocation and confidence in achieving both revenue and margin objectives for the year.