Sangoma Technologies 2025 Q4 Earnings Strong Turnaround with 112.2% Net Income Surge

Sangoma Technologies (SANG) reported its fiscal 2025 Q4 earnings on Sep 17th, 2025. The company returned to profitability with a net income of $209,000, a 112.2% improvement from a $1.71 million loss in the prior-year quarter. This performance exceeded expectations, supported by strategic business transformations and margin improvement. The company raised guidance for fiscal 2026, indicating confidence in its future growth.

Revenue
Sangoma Technologies’ total revenue declined by 2.6% year-over-year to $59.36 million in Q4 2025. The slight dip in revenue was offset by improved cost management and a shift toward higher-margin software-led offerings. The company noted sequential growth, particularly in premise-based product sales and market share gains.

Earnings/Net Income
The company’s earnings returned to positive territory, with an EPS of $0.01, compared to a loss of $0.05 per share in the prior-year period. The net income turnaround was a major highlight, with a 112.2% increase from a $1.71 million loss to a $209,000 profit, demonstrating strong operational discipline and strategic execution.

Price Action
The stock price of Sangoma Technologies edged up 0.17% during the latest trading day and surged 9.80% during the most recent full trading week. It has climbed 4.49% month-to-date, reflecting investor optimism following the earnings report and strategic business shifts.

Post-Earnings Price Action Review
Charles Salameh, CEO, highlighted strong Q4 performance with $59.4 million in revenue and 19% adjusted EBITDA margins, driven by premise-based product sales and market share gains. He emphasized the successful transformation of the business, including the divestiture of the VoIP Supply division, which shifted Sangoma toward a 90% software-led, recurring revenue model. Salameh outlined strategic investments in AI, channel expansion, and partnerships in key sectors like healthcare, education, and hospitality. He expressed confidence in the durability of high-margin opportunities and expected sequential growth to resume in Q2 FY2026 as the sales pipeline converts into revenue.

Guidance
Larry Stock, CFO, outlined fiscal 2026 guidance with revenue expected in the range of $200 to $210 million, excluding the contribution from the sold VoIP Supply business. The company expects improved gross margins of approximately 75%, with adjusted EBITDA margins anticipated in the range of 17% to 19%. Operating expenses are projected to remain stable at around $30 million per quarter, while free cash flow generation is expected to support debt reduction and shareholder returns.

Additional News
On September 16, 2025, Nigerian newspaper *Punch* reported a rising death toll to six in a Lagos market massacre following a police shooting on August 27. This tragic incident sparked public outrage and calls for accountability. In another development, the Renewable Energy Agency (REA) announced that eight million Nigerians have been brought out of darkness. Additionally, Nigeria imported 560,000 tonnes of fertilizer inputs in 2025 to support agricultural production. These events highlight ongoing social and economic developments across the country.