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Sangoma Technologies (SANG)
NASDAQ:SANG
Earnings Data
Report Date
May 07, 2026TBA (Confirmed)
Period Ending
2026 (Q3)Consensus EPS Forecast
-0.04Last Year’s EPS
-0.04Same Quarter Last Year
Moderate Buy
Based on 2 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed predominantly positive operational and financial momentum: sequential revenue growth, strong adjusted EBITDA and cash conversion, significant MRR bookings growth (67% QoQ, 60% YoY), improved gross margin (74%), a much larger Q3 starting backlog (+125%), deleveraging (debt down to $37.6M) and active share repurchases. Management acknowledged near‑term challenges including a 2% year‑over‑year organic revenue decline excluding the VoIP Supply divestiture, timing/execution risk as large multi‑site deals roll out, and higher near‑term commissions and targeted investments. On balance, the improvements in bookings, cash generation, margins, and balance sheet flexibility outweigh the headwinds, while management provided tightened guidance and clear actions to monetize the growth pipeline.Company Guidance
Sequential Revenue Growth Delivered
Total revenue for Q2 was $51.5 million, up 1.2% sequentially, with services (92% of revenue) growing 1% sequentially, indicating early translation of bookings momentum into recurring revenue.
Strong Adjusted EBITDA and Cash Conversion
Adjusted EBITDA was $8.3 million (16% margin), consistent with Q1, and adjusted EBITDA converted to net cash from operations at more than 120% in Q2 (net cash from operations $10.1 million). Year-to-date conversion was 91%.
Free Cash Flow and Shareholder Returns
Free cash flow improved sequentially to $8.0 million or $0.24 per diluted share. The company repurchased ~196,000 shares in the quarter and has retired >700,000 shares (~2.1% of outstanding) since the NCIB launch.
Significant Bookings Momentum (MRR)
MRR bookings grew 67% quarter-over-quarter and 60% year-over-year, driven by several large strategic, multi-site deals — one >$150,000 MRR (350+ locations), an $18,000 MRR multi-location retail win, and a closed healthcare wholesale opportunity supporting 2 hospitals and 9 urgent care facilities.
Backlog and Pipeline Strength
Starting backlog for Q3 was up approximately 125% compared to the start of Q2. Management reported a steady pipeline, improving close rates and growing traction across verticals and wholesale motions.
Improving Gross Margin and Recurring Revenue Mix
Gross profit was $38.2 million and gross margin improved to 74% (vs 72% in Q1 and 68% prior year), driven by a more favorable revenue mix and strength in recurring services.
Recurring Revenue Retention / Low Churn
Blended churn improved sequentially and held just under 1% (stated at ~0.96%), reflecting stability of the recurring base and progress in customer experience and delivery; management is targeting 0.85%.
Deleveraging and Strong Balance Sheet Actions
Debt reduced to $37.6 million at quarter end from $60.4 million a year ago (retired an additional $5.2 million of debt in the quarter). Quarter-end cash was $17.1 million, up 27% from June 30.
Product & Channel Momentum
Hardware/prem UC channel revenue up ~4% year-over-year; carrier voice and SIP trunking activity up >10% year-over-year, including a contract with Commio for nationwide cloud voice/messaging.
Tighter Guidance Reflecting Confidence
Management tightened FY'26 guidance to revenue of $205M–$208M and adjusted EBITDA margin of 17%–18%, expecting sequential revenue growth in Q3 and a return to year-over-year organic growth once VoIP Supply divestiture is adjusted for.
SANG Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
SANG Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 04, 2026 | $4.83 | $4.76 | -1.45% |
Nov 10, 2025 | $4.96 | $5.02 | +1.21% |
Sep 17, 2025 | $6.05 | $5.22 | -13.72% |
May 08, 2025 | $5.85 | $5.90 | +0.85% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Sangoma Technologies (SANG) report earnings?
Sangoma Technologies (SANG) is schdueled to report earning on May 07, 2026, TBA (Confirmed).
What is Sangoma Technologies (SANG) earnings time?
Sangoma Technologies (SANG) earnings time is at May 07, 2026, TBA (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is SANG EPS forecast?
SANG EPS forecast for the fiscal quarter 2026 (Q3) is -0.04.