Sangoma reported revenue of $51.5 million for the quarter ended December 31, 2025, representing a 1% sequential increase and in line with management expectations. Excluding $6.4 million in revenue from VoIP Supply, LLC—divested to streamline non-recurring, low-margin resale activity—revenues on a like-for-like basis were down 2% year-over-year. Gross profit rose to $38.2 million, or 74% of revenue, up from 72% last quarter, driven by a greater mix of higher-margin subscription and service offerings. The company posted a net loss of $2.0 million, or $0.06 per share on a fully diluted basis, compared with a net loss of $1.9 million, or $0.06 per share, in the same period last year. Adjusted EBITDA stood at $8.3 million, or 16% of revenue, consistent with seasonal norms.

Operating activities generated $10.1 million in cash, equal to 122% of Adjusted EBITDA, while free cash flow reached $8.0 million, or $0.24 per share on a fully diluted basis. The company reduced total debt to $37.6 million, down approximately 38% year-over-year, and ended the quarter with $17.1 million in cash. Under its Normal Course Issuer Bid, Sangoma repurchased and cancelled over 700,000 shares since March 2025, including nearly 196,000 shares during the second quarter at a cost of roughly $1.0 million.

Sangoma reaffirmed and narrowed its full-year fiscal 2026 outlook to total revenue of $205 million to $208 million, and an Adjusted EBITDA margin of 17% to 18%, reflecting anticipated sequential growth and continued go-to-market investments. Management highlighted a 60% increase in monthly recurring revenue bookings year-over-year and churn remaining below 1%, supporting confidence in the recurring software and services mix. Leadership emphasized disciplined capital allocation, strategic focus on high-margin offerings, and execution against its hybrid communications strategy as key drivers for sustained profitability and cash generation.