Sangoma Reports 9% Data, 17% Voice Growth; Lowers Guidance to $204–205M
Sangoma Technologies reported Q3 data networking revenue up 9% and voice networking up 17%, with adjusted EBITDA converting to net cash at an 80% rate. It lowered full-year revenue guidance to $204–205 million and noted a drop in gross margin from 74% to 71% due to higher international fulfillment costs.
1. Segment Growth and Cash Flow
Sangoma’s data networking segment revenue rose about 9% year-over-year while voice networking increased roughly 17%. The company achieved an 80% conversion of adjusted EBITDA to net cash from operations in Q3, underscoring strong cash-generation ability.
2. Guidance Revision and Margin Impact
Sangoma lowered its full-year revenue outlook to $204 million–$205 million due to geopolitical disruptions affecting key international markets. Gross margin contracted to 71% from 74% sequentially, driven by higher fulfillment costs and timing shifts in revenue recognition for large integrated deployments.
3. Strategic Reallocation and Infrastructure Focus
Management is reallocating capital toward higher-growth communication infrastructure and AI-enabled capabilities, aiming to expand margins and reduce churn. Longer-term integrated deployment contracts are expected to boost customer lifetime value and stabilize revenue streams over time.