Sangoma Q4 Earnings Monday: Margin, Not Revenue, Is the Story
Results are in: Sangoma reported after the close on September 28 and announced a definitive agreement to be acquired by BRC Group Holdings the same evening. Read the results and the takeover terms.
Sangoma Technologies (TSX: STC; Nasdaq: SANG) reports its fiscal 2026 fourth quarter and full year on Monday, September 28, after the close. An honest preview of this one has to separate two things that are easily conflated: revenue, which is guided to land almost exactly where analysts already have it, and margin, where Sangoma’s guidance has come down two and a half points since it was set. One of those is not a story. The other one is the whole story.
One housekeeping note before the numbers, because this company makes it easy to get wrong. Sangoma reports in US dollars. Its shares trade in Canadian dollars. Every revenue, EBITDA and EPS figure below is USD, and so is any price the company reports having paid for its own shares. Market prices are CAD. Both carry their currency where it matters.
When it reports
Sangoma confirmed the date on September 22: results for the fourth quarter and the fiscal year ended June 30, 2026 come out after markets close on Monday, September 28, 2026, with a conference call the same day at 5:30 p.m. Eastern. That is the company’s own advisory, not a feed estimate, and it supersedes the September 21 date Yahoo Finance’s calendar had been showing.
It also lands on the last day the company could have chosen. Under National Instrument 51-102, annual filings are due 90 days after the fiscal year end, which for a June 30 year end is September 28. The last two annual reports were filed with the SEC on September 18, 2024 and September 17, 2025, Sangoma being an MJDS filer under CIK 0001753368, so this year’s report lands eleven days later in the month than last year’s did.
The documents themselves land on Sangoma’s SEC filing index under that CIK, where the last two annual reports arrived on the same date as the accompanying press release.
Where the stock sits walking in
Sangoma closed at $5.05 CAD on Monday September 28, 2026, up 1.8% on the session. That is 6.3% above the $4.75 close of September 18, which was its lowest closing price in a year. On an intraday basis the 52-week range is $4.71 to $7.62 CAD, so the stock goes into the print roughly a third below its 52-week high.
On the 33,278,790 shares the company reported outstanding as of March 24, 2026 (Q3 fiscal 2026 financial statements, note 20), that close puts market capitalisation near $168 million CAD, which is our arithmetic on those two figures rather than a reported one. Share prices here are from Yahoo Finance at the September 28 close; figures from the filings are dated where they appear.
We wrote up its fall to a one-year low the week before, and the detail of that slide matters for what comes next.
What the Street expects, and the estimate that moved last week
Consensus for the June quarter, from Yahoo Finance as of September 18, 2026:
- Adjusted EPS of -$0.068 USD, from five analysts, in a range of -$0.09 to -$0.06. The year-ago fourth quarter came in at +$0.01, though that is the reported IFRS diluted figure, on $0.2M of net income. Sangoma publishes no adjusted EPS of its own, so the estimate and the comparative are not struck on the same basis.
- Revenue of $51.27 million USD, from five analysts, range $50.80M to $51.53M. The year-ago quarter was $59.36M, so consensus implies a decline of about 13.6%.
- For the full year, revenue consensus of $204.54M, and for fiscal 2027, $209.47M, about 2.4% higher.
The more interesting line is that the earnings estimate moved, and it moved days ago. The Q4 adjusted EPS consensus sat at -$0.0367 for 90 straight days, then shifted to -$0.068 within the last seven days. The expected loss nearly doubled. The full-year fiscal 2026 EPS estimate went from -$0.192 to -$0.268 over the same week.
That revision and the stock’s 7% five-session slide happened in the same week. Our coverage of the slide found no company announcement behind it. Results move a stock through the gap between what arrives and what was expected, which is the mechanism our guide to what moves a stock price walks through. The point for a holder is that the bar being cleared on report day is not the bar that stood a fortnight ago.
Analyst price targets deserve a caveat rather than a headline. The Yahoo Finance mean is $9.66 CAD, median $9.69, low $8.06, high $11.20, against the September 28 close of $5.05. Targets sitting at roughly twice the share price while the earnings estimate is being cut look more like coverage that has not been refreshed than like a forecast, and we would not treat them as one.
Consensus and prices from Yahoo Finance. One quarter is omitted for want of a published consensus.
The reaction record
Across Sangoma’s last eight reports, the stock fell in the next session after six of the eight, with an average next-session move of -5.24%. Thirty days on, the average was -8.06%, higher in only two of eight. Ninety days on, the average was -3.73%, higher in three of eight.
Seven of those eight had a published consensus to score against, and that split two beats to five misses, at an average surprise of -34.7%. The eighth, September 2025, had no published consensus and cannot be scored either way. On a beat, the stock averaged +1.66% the next session. On a miss, -6.26%.
The most comparable event in the set is last year’s annual report, filed September 17, 2025, the same fourth quarter and full year print we are previewing now. The stock fell 13.9% the next session, was 20.6% lower 30 days later and 17.0% lower after 90 days. That next-session drop is the worst of the eight, though not the worst aftermath: the February 2025 report fell less on the day, 11.3%, and then kept going, to 32.2% lower after 30 days and 22.0% after 90.
None of that tells you what happens this time. It is a record of how this stock has behaved, useful for calibrating how violently it can move on a print, and nothing more.
Moves measured from the last close before each release. Yahoo Finance.
What the company has actually said
Sangoma has addressed this year’s guidance four times, setting it, reaffirming it, narrowing it and then revising it down, and the shape of those changes is the tell.
| Date | Revenue guidance | Adjusted EBITDA margin | Action |
|---|---|---|---|
| Sept 17, 2025 | $200-210M | 17%-19% | initial |
| Nov 5, 2025 | $200-210M | 17%-19% | reaffirmed |
| Feb 4, 2026 | $205-208M | 17%-18% | narrowed |
| May 13, 2026 | $204-205M | 15%-16% | revised down |
Source: Sangoma’s third-quarter fiscal 2026 press release, May 13, 2026, pp. 2-3, which is also the source of the guidance quote below and the strategic review language further down.
Between the first guide and the last, the revenue midpoint moved by less than a quarter of a percent, from $205M to $204.5M. The margin guide fell two and a half points at the midpoint, from 18% to 15.5%. The reason the company gave, in full, was this:
In light of shifts in revenue timing, product mix, and current macroeconomic conditions
That is the reason attached to the revision itself, from the same release, p. 3.
The March quarter showed the same pattern. Revenue of $51.0M was less than 1% below the prior quarter, so the top line held. Gross profit of $36.4M came in at 71% of revenue, down from 74% the quarter before, which the company put down to higher product revenue carrying a higher cost of sales. Measured instead against the year-ago quarter excluding VoIP Supply, where gross margin was 75%, it attributed the fall to “an increase in the Company’s lower margin TaaS revenue and increase in Product sales” (report to shareholders, p. 12). Operating expenses of $38.5M were down $1.5M, or 4%, quarter over quarter. Net loss was $2.3M, or -$0.07 per diluted share, against a $1.4M loss and -$0.04 a year earlier. Adjusted EBITDA was $7.5M, 15% of revenue. Churn stayed under 1%, total debt fell to $32.5M, about 39% lower year over year, and cash stood at $15.2M. Nine-month free cash flow was $14.845M against $28.153M a year earlier, a 47% decline. (Q3 FY2026 press release, pp. 1-2 and p. 7.)
What management says is behind it
Sangoma’s own account of the margin break is in the chief executive’s quote on the results, and it splits the business in two:
While parts of the communications applications market remain competitive and continue to experience pricing pressure, we are seeing strong underlying performance in our communications infrastructure businesses, particularly within voice and managed services, where demand for secure, reliable connectivity continues to grow as voice and data become more embedded in automated and AI-driven workflows.
The numbers behind both halves are in the filings. MSP and Voice Infrastructure grew 9% and 17% year over year (release, p. 1), which is the part Charles Salameh is describing as strong. Service revenue, which is 92% of the total at $46.775M, was slightly lower than the year-ago quarter excluding VoIP Supply and 2% lower than the December quarter, a decline the company put down to cloud services. Product revenue of $4.22M was up 9% sequentially on large customer orders of phones (report to shareholders, p. 11).
So the pricing pressure is in communications applications and the growth is in infrastructure and managed services. Sangoma reports as a single segment (report to shareholders, p. 8) and publishes no revenue line for either business, only those growth percentages in a release highlight, so what a reader can actually check on Monday is the service and product split, the comparatives excluding VoIP Supply, and whatever management chooses to say about the two. Worth noting which way that may cut: the company’s own explanation of the year-over-year margin fall names “lower margin TaaS revenue”, its trunking line. Sangoma does not say which of its named growth areas that trunking revenue sits in, so reading it alongside the voice and managed services strength is our inference rather than the company’s. If they do overlap, growth in those businesses is not straightforwardly a consolation for the margin break.
The two numbers the guidance implies, once you do the subtraction
Sangoma’s nine-month filed figures are revenue of $153.263M and adjusted EBITDA of $24.107M (Q3 FY2026 interim statements, note 18, and the press release reconciliation table). Subtract those from the full-year guidance and the fourth quarter falls out of the arithmetic. This is our calculation from the company’s own guidance and its own filings, not a company figure and not an analyst estimate.
Revenue: $204M less $153.263M is $50.7M, and $205M less $153.263M is $51.7M. Adjusted EBITDA: 15% of $204M is $30.6M, less $24.107M leaves $6.5M; 16% of $205M is $32.8M, less $24.107M leaves $8.7M.
| Q4 FY2026 | Q4 FY2025 actual | Implied by guidance | Change |
|---|---|---|---|
| Revenue | $59.4M | $50.7M to $51.7M | roughly -13% to -15% |
| Adjusted EBITDA | $11.4M | $6.5M to $8.7M | roughly -24% to -43% |
Q4 FY2025 actuals from the FY2025 annual press release, Sept 17, 2025, pp. 1-2. Implied range is our arithmetic on FY2026 guidance and nine-month filed figures.
Against the March quarter’s $50.995M, that implied band asks for revenue between half a point below and about 1.5% above the quarter just gone, so the top line needs roughly a flat sequential result rather than a recovery.
Two things follow. First, the $51.27M revenue consensus sits inside the implied band, which means the Street is essentially modelling the company’s own guidance. Revenue is not where the surprise lives. Second, the year-ago quarter’s $11.4M of adjusted EBITDA at a 19% margin was Sangoma’s best in eight quarters, and the guided range implies this quarter lands well below it. The March quarter’s actual $7.475M sits inside the implied band too, so the guidance is not asking for a fourth-quarter recovery.
Why the full-year revenue decline overstates the damage
The headline comparison looks far worse than the underlying business does. Sangoma sold VoIP Supply LLC to PVG Technology Holdings on June 30, 2025, the last day of fiscal 2025, for $4.5M (Q3 FY2026 financial statements, note 19), and it “owned and operated VS for the entirety of Fiscal 2025” (Q3 FY2026 MD&A, p. 11). Last year’s fourth quarter contains VoIP Supply revenue. This year’s contains none.
The company published its own like-for-like base when it first guided fiscal 2026: revenue of $200-210M “compared to $209 million in fiscal 2025 when excluding the contribution from VoIP Supply LLC” (FY2025 annual press release, p. 3). Measured against that $209M, current guidance of $204-205M is a decline of about 2%, not the roughly 13.6% you get by holding it against reported fiscal 2025 revenue of $236.7M. Most of the gap is a low-margin resale business the company chose to sell. The revenue line is close to flat on a comparable basis. The deterioration is in profit.
Four fiscal years, from the filings
Revenue as reported in Sangoma’s MD&As for the fiscal years ended June 30, 2023 (p. 14), 2024 (p. 14) and 2025 (p. 11); fiscal 2022 from the prior-year comparative column of the fiscal 2023 MD&A.
Revenue peaked in fiscal 2023 at $252.5M and has fallen each year since, to $247.3M and then $236.7M. Guidance of $204-205M would make fiscal 2026 a third straight decline and the lowest figure in the series, which began at $224.4M in fiscal 2022.
Reported figures from Sangoma’s MD&As for the fiscal years ended June 30, 2023 (p. 19), 2024 (p. 18) and 2025 (p. 16), with fiscal 2022 from the fiscal 2023 prior-year comparative column. The fiscal 2026 band is the guided margin applied to guided revenue, from the Q3 fiscal 2026 press release, pp. 2-3, and is drawn as a range because that is how the company guides.
Adjusted EBITDA has been the steadier line, drifting from $44.4M in fiscal 2023 to $42.6M and then $41.0M in fiscal 2025, with fiscal 2022 at $42.1M. Margin on those two reported lines works out to 18.8% in fiscal 2022, 17.6% in fiscal 2023, 17.2% in fiscal 2024 and 17.3% in fiscal 2025, which is our arithmetic rather than a figure Sangoma states annually. That is what makes the guided 15% to 16% a visible break rather than more drift. Applied to $204-205M it implies full-year adjusted EBITDA of $30.6M to $32.8M (our calculation), a step down of roughly 20% to 25% from fiscal 2025.
Margins are our arithmetic on the reported revenue and adjusted EBITDA lines in the MD&As for fiscal years 2023, 2024 and 2025. The fiscal 2026 band is the company’s guided range, Q3 fiscal 2026 press release, pp. 2-3.
Four years spanning 1.6 points, the last three of them inside half a point, and then a guided range whose upper end sits 1.2 points below the weakest year in the series. The break is not something the fourth quarter still has to produce. It is already in the filed figures: nine-month adjusted EBITDA of $24.107M on revenue of $153.263M, which Sangoma reports as a 16% margin and which works out to 15.7% unrounded, below every full year in the chart above (Q3 fiscal 2026 press release, p. 7). What the guide asks of the fourth quarter is that it hold roughly there, and the 12.8% to 16.8% the guidance implies for the quarter straddles that level rather than clearing it.
Sangoma has been trading either side of the $5 line we use on our Canadian penny stocks page. It is not ranked there either way: that ranking runs on balance-sheet screens, and the fiscal 2026 figures are not published yet.
The balance sheet behind the review
Debt is the part of this story that has been going the right way. Total outstanding debt was $32.45M USD at March 31, 2026, down from $47.9M at the June 2025 year end and $53.05M a year earlier. The company was in compliance with all covenants under its credit agreement at the quarter end, which run principally on total funded debt to earnings before interest, taxes and amortization, and on debt service coverage (Q3 fiscal 2026 report to shareholders, p. 19).
As at March 31, 2026, $20.6M of the $32.45M fell due within twelve months, with the remaining $11.85M in the year after (contractual commitments table, p. 20). The two term loans amortise on a straight-line basis at $2.188M and $2.963M a quarter, so one quarterly instalment of about $5.15M falls in the June quarter being reported (interim statements, note 14). Set against that: cash of $15.195M, up 13% from the June 2025 year end even after repaying $15.45M of debt and buying back stock, nine-month free cash flow of $14.845M, and interest expense down 48% in the quarter and 53% over nine months, a saving of $1.779M. The full-year adjusted EBITDA the guidance implies, $30.6M to $32.8M, is roughly the size of the total debt. The filing names the covenant measure as earnings before interest, taxes and amortization and does not define it, so that comparison is a rough sense of scale and not a reading of covenant headroom.
Cash conversion has deteriorated furthest, and Sangoma measures it against a bar it set itself. Operating cash flow was 80% of adjusted EBITDA in the March quarter, against 109% a year earlier and below the company’s own previously stated expectation of 90% to 100%. Over nine months it was 87%, against 117%. The company attributed the shortfall to increased cash taxes, working capital investment, lower than anticipated revenue and “compressed gross margins resulting from softer international demand” (p. 18).
Margin appears fourth in the company’s own list of causes, after increased cash taxes, working capital investment and lower than anticipated revenue, and before macroeconomic conditions. The cleaner evidence that the deterioration reaches cash is the free cash flow line: $14.845M over nine months against $28.153M a year earlier, a 47% decline against an adjusted EBITDA decline of 19%.
Do not expect a strategic review update
In May the Board engaged ATB Cormark Capital Markets to assist in evaluating the strategic alternatives available to the company, “In response to inbound expressions of interest received over the course of the fiscal year”, naming “strategic partnerships, business combinations, investments, and other transactions” as the options on the table. The expectation-setting in that same release is blunt. The company wrote that the Board
has not established a fixed timeline for this process, and there can be no assurance that it will result in any transaction. The Company does not intend to provide further updates regarding the process unless and until the Board has approved a definitive agreement or disclosure is otherwise required.
Read plainly, that means results day is very unlikely to carry a review update. A holder waiting for one should not treat its absence as news. (Q3 FY2026 press release, pp. 2-3.)
What we will be reading first
Adjusted EBITDA for the quarter, against the $6.5M to $8.7M the guidance implies and the $11.4M Sangoma posted a year ago. Whether full-year revenue lands inside $204-205M, which would confirm that the top line did what the company said it would. Gross margin, after the drop from 74% to 71% in the March quarter and the product-mix explanation attached to it. Free cash flow, after nine months at $14.845M against $28.153M. And fiscal 2027 guidance, if any is given, because that is the first number in this report that is not already known or already derivable. The yardstick for it is the $209.47M of fiscal 2027 revenue consensus above, which would be roughly 2.4% growth on this year’s guide.
The share count is worth a glance too. Through the first nine months Sangoma bought 195,949 of its own shares at an average of $5.02 USD each, for $985,000 USD, and cancelled 270,694 in total, the difference being 74,745 shares bought at the end of fiscal 2025, against 17,529 cancelled in the same period a year earlier. Then on April 1, 2026 the TSX accepted a renewal of the bid, allowing up to 1,663,939 shares, about 5% of those outstanding, between April 6, 2026 and April 5, 2027. As of the third-quarter filing the company stated plainly that it “has not yet purchased any shares under the current NCIB” (Q3 fiscal 2026 report to shareholders, Significant Events, Normal Course Issuer Bid, p. 21). Monday is the first look at whether it resumed, and at what price.
Revenue is the easiest number in this report to quote. It is also the one with the least information in it.
Company figures throughout are from Sangoma’s own filings, cited by document and page. Share prices are from Yahoo Finance as of the September 28, 2026 close. Consensus estimates and price targets are from Yahoo Finance as of September 18, 2026 and are labelled where they appear.
Disclaimer: The content on bestcanadianstocks.ca is for informational and entertainment purposes only and does not constitute financial advice. Past performance is not indicative of future results. Always consult a qualified financial advisor before making investment decisions. Company figures from Sangoma’s own fiscal 2026 third-quarter and fiscal 2025 annual filings, cited by document and page. Share prices from Yahoo Finance as of the September 28, 2026 close, the last session before the results; consensus as of September 18, 2026. This preview was written before the report. Sangoma released fourth-quarter and fiscal 2026 results after the close on September 28, 2026 and announced a definitive agreement to be acquired the same evening, and the link at the top of the piece goes to that coverage.
