Sangoma Announces Second Quarter Fiscal 2025 Results
Sangoma Technologies (TSX: STC; Nasdaq: SANG) released its Q2 FY2025 results, showing mixed performance. Net cash from operations increased 29.7% year-over-year, exceeding 100% of Adjusted EBITDA for the fourth consecutive quarter. Total revenue was $59.1 million, down 1.7% from Q1 FY2025, primarily due to decreased low-margin third-party product resales.
Key metrics include gross profit of $40.5 million (68.5% margin), Adjusted EBITDA of $10.1 million (17.1% of revenue), and improved churn below 1.0%. Operating expenses decreased 7.3% year-over-year to $41.3 million. Net loss narrowed to $1.9 million from $3.2 million in Q2 FY2024.
The company revised its FY2025 guidance, lowering revenue expectations to $235-240 million from $250-260 million, while maintaining an Adjusted EBITDA target of at least 17% of revenue ($40-42 million).
Sangoma Technologies (TSX: STC; Nasdaq: SANG) ha pubblicato i risultati per il secondo trimestre dell'anno fiscale 2025, mostrando performance contrastanti. Il cash flow netto dalle operazioni è aumentato del 29,7% rispetto all'anno precedente, superando il 100% dell'EBITDA rettificato per il quarto trimestre consecutivo. Il fatturato totale è stato di 59,1 milioni di dollari, in calo dell'1,7% rispetto al primo trimestre dell'anno fiscale 2025, principalmente a causa della diminuzione delle rivendite di prodotti di terze parti a basso margine.
I principali indicatori includono un profitto lordo di 40,5 milioni di dollari (margine del 68,5%), un EBITDA rettificato di 10,1 milioni di dollari (17,1% del fatturato) e un miglioramento del churn al di sotto dell'1,0%. Le spese operative sono diminuite del 7,3% rispetto all'anno precedente, attestandosi a 41,3 milioni di dollari. La perdita netta si è ristretta a 1,9 milioni di dollari rispetto ai 3,2 milioni di dollari del secondo trimestre dell'anno fiscale 2024.
L'azienda ha rivisto le proprie previsioni per l'anno fiscale 2025, abbassando le aspettative di fatturato a 235-240 milioni di dollari da 250-260 milioni di dollari, mantenendo nel contempo un obiettivo di EBITDA rettificato di almeno il 17% del fatturato (40-42 milioni di dollari).
Sangoma Technologies (TSX: STC; Nasdaq: SANG) ha publicado sus resultados del segundo trimestre del año fiscal 2025, mostrando un rendimiento mixto. El flujo de caja neto de las operaciones aumentó un 29.7% interanual, superando el 100% del EBITDA ajustado por cuarto trimestre consecutivo. Los ingresos totales fueron de 59.1 millones de dólares, lo que representa una disminución del 1.7% respecto al primer trimestre del año fiscal 2025, principalmente debido a la reducción de las reventas de productos de terceros de bajo margen.
Las métricas clave incluyen una ganancia bruta de 40.5 millones de dólares (margen del 68.5%), un EBITDA ajustado de 10.1 millones de dólares (17.1% de los ingresos) y una mejora en la tasa de deserción por debajo del 1.0%. Los gastos operativos disminuyeron un 7.3% interanual, alcanzando los 41.3 millones de dólares. La pérdida neta se redujo a 1.9 millones de dólares desde los 3.2 millones de dólares en el segundo trimestre del año fiscal 2024.
La compañía revisó su guía para el año fiscal 2025, reduciendo las expectativas de ingresos a 235-240 millones de dólares desde 250-260 millones de dólares, manteniendo un objetivo de EBITDA ajustado de al menos el 17% de los ingresos (40-42 millones de dólares).
Sangoma Technologies (TSX: STC; Nasdaq: SANG)은 2025 회계연도 2분기 실적을 발표했으며, 엇갈린 성과를 보였습니다. 운영에서의 순현금은 전년 대비 29.7% 증가하였으며, 조정된 EBITDA의 100%를 초과하여 4분기 연속 성장세를 기록했습니다. 총 수익은 5,910만 달러로, 2025 회계연도 1분기 대비 1.7% 감소하였으며, 주로 저마진 제3자 제품 재판매 감소에 기인합니다.
주요 지표로는 4,050만 달러의 총 이익(68.5% 마진), 조정된 EBITDA 1,010만 달러(수익의 17.1%), 그리고 이직률이 1.0% 이하로 개선된 점이 있습니다. 운영 비용은 전년 대비 7.3% 감소하여 4,130만 달러에 달했습니다. 순손실은 320만 달러에서 190만 달러로 줄어들었습니다.
회사는 2025 회계연도 전망을 수정하여 수익 기대치를 2억 3,500만 - 2억 4,000만 달러에서 2억 5,000만 - 2억 6,000만 달러로 낮추고, 수익의 최소 17%인 조정된 EBITDA 목표를 4,000만 - 4,200만 달러로 유지했습니다.
Sangoma Technologies (TSX: STC; Nasdaq: SANG) a publié ses résultats pour le deuxième trimestre de l'exercice 2025, montrant une performance mitigée. Le flux de trésorerie net provenant des opérations a augmenté de 29,7 % par rapport à l'année précédente, dépassant 100 % de l'EBITDA ajusté pour le quatrième trimestre consécutif. Le chiffre d'affaires total était de 59,1 millions de dollars, en baisse de 1,7 % par rapport au premier trimestre de l'exercice 2025, principalement en raison de la diminution des reventes de produits tiers à faible marge.
Les indicateurs clés incluent un profit brut de 40,5 millions de dollars (marge de 68,5 %), un EBITDA ajusté de 10,1 millions de dollars (17,1 % des revenus) et une amélioration du taux de désabonnement à moins de 1,0 %. Les dépenses d'exploitation ont diminué de 7,3 % par rapport à l'année précédente pour s'établir à 41,3 millions de dollars. La perte nette s'est réduite à 1,9 million de dollars contre 3,2 millions de dollars au deuxième trimestre de l'exercice 2024.
L'entreprise a révisé ses prévisions pour l'exercice 2025, abaissant ses attentes de chiffre d'affaires à 235-240 millions de dollars contre 250-260 millions de dollars, tout en maintenant un objectif d'EBITDA ajusté d'au moins 17 % des revenus (40-42 millions de dollars).
Sangoma Technologies (TSX: STC; Nasdaq: SANG) hat die Ergebnisse für das zweite Quartal des Geschäftsjahres 2025 veröffentlicht und zeigt eine gemischte Leistung. Der Netto-Cashflow aus den Betrieben stieg im Vergleich zum Vorjahr um 29,7 % und überstieg zum vierten Mal in Folge 100 % des bereinigten EBITDA. Der Gesamtumsatz betrug 59,1 Millionen US-Dollar, was einem Rückgang von 1,7 % im Vergleich zum ersten Quartal des Geschäftsjahres 2025 entspricht, hauptsächlich aufgrund des Rückgangs der Wiederverkäufe von niedrigmargigen Drittanbieterprodukten.
Wichtige Kennzahlen sind ein Bruttogewinn von 40,5 Millionen US-Dollar (68,5 % Marge), bereinigtes EBITDA von 10,1 Millionen US-Dollar (17,1 % des Umsatzes) und eine Verbesserung der Abwanderungsrate auf unter 1,0 %. Die Betriebskosten gingen im Vergleich zum Vorjahr um 7,3 % auf 41,3 Millionen US-Dollar zurück. Der netto Verlust verringerte sich auf 1,9 Millionen US-Dollar von 3,2 Millionen US-Dollar im zweiten Quartal des Geschäftsjahres 2024.
Das Unternehmen hat die Prognose für das Geschäftsjahr 2025 überarbeitet und die Umsatzprognosen auf 235-240 Millionen US-Dollar von 250-260 Millionen US-Dollar gesenkt, während das Ziel für das bereinigte EBITDA bei mindestens 17 % des Umsatzes (40-42 Millionen US-Dollar) bleibt.
- Net cash from operations increased 29.7% YoY to $11.9 million
- Adjusted EBITDA margin improved to 17.1% from 16.3% in previous quarter
- Operating expenses decreased 7.3% year-over-year
- Net loss narrowed to $1.9 million from $3.2 million YoY
- Customer churn improved to below 1.0%
- Revenue declined 1.7% quarter-over-quarter to $59.1 million
- Lowered FY2025 revenue guidance from $250-260M to $235-240M
- Reduced Adjusted EBITDA guidance from $42-46M to $40-42M
Insights
Sangoma's Q2 FY2025 results reveal a strategic pivot toward higher-margin operations, marked by three critical developments:
1. Operational Efficiency Gains: The standout metric is the
2. Strategic Realignment: The company's decision to reduce low-margin hardware resale operations, while causing a short-term revenue guidance reduction from
3. Financial Health: Achieving the debt reduction target of
These developments suggest a company transitioning from a hardware-centric model to a more profitable, recurring revenue-focused business. The accelerated debt reduction and strong cash flow position Sangoma well for potential strategic acquisitions and increased R&D investment, critical for competing in the cloud communications market.
Net Cash provided by operating activities up
Sangoma Technologies Corporation (TSX: STC; Nasdaq: SANG) (“Sangoma” or the “Company”), a trusted leader in delivering cloud-based Communications as a Service solutions for companies of all sizes, today announced its second quarter financial results and unaudited condensed consolidated interim financial statements for the three and six month periods ended December 31, 2024.
"During the second quarter we continued to generate strong operating cash flow while reducing debt levels, effectively reaching our fiscal year-end debt target of
Second Quarter of Fiscal 2025 Highlights:
-
Total Revenue of
$59.1 million $1.0 million 1.7% from the first quarter of fiscal 2025, primarily due to a$1.2 million -
Gross profit of
$40.5 million 68.5% of total revenue. -
Operating expenses1 were
$41.3 million 7.3% over the same quarter of prior year. -
Adjusted EBITDA2 of
$10.1 million 17.1% of total revenue, a0.7% improvement over last quarter. -
Strategic enterprise resource planning ("ERP") spend of
$0.6 million $10.7 million -
Improved churn to below
1.0% -
Net loss narrowed significantly to
$1.9 million $3.2 million -
Net cash provided by operating activities of
$11.9 million 29.7% over the same quarter a year ago. -
Net cash provided by operating activities as a percentage of Adjusted EBITDA2 for the second quarter reached
118.1% , representing a significant increase when compared to87.9% in the same quarter of the prior year and the fourth straight quarter that it exceeded100% . -
Effectively reached our debt reduction target of
$55 million $60 million $60 million -
Cash at the end of the second quarter of fiscal 2025 was
$17.1 million
Revised guidance for Fiscal 20253
Sangoma is taking decisive action to advance its core platform strategy by accelerating strategic alternatives with respect to certain low margin non-core product lines including its third-party hardware resale operations. This strategic realignment, while reducing projected revenue in fiscal 2025, should drive substantial improvements in both gross profit margin and Adjusted EBITDA2 margin.
As a result of the de-emphasis of certain non-core product lines, Sangoma is lowering its revenue guidance from the range of
Conference call
Sangoma will host a conference call on Wednesday, February 5, 2025, at 5:30 pm ET to discuss these results. The dial-in number for the call is 1-844-763-8274 (International +1-647-484-8814) and the participant passcode is 8503464#. Participants are requested to dial in 5 minutes before the scheduled start time and ask to join the Sangoma Technologies call.
1 Operating Expenses consist of sales and marketing, research and development, general and administration and amortization of intangible assets.
2 Adjusted EBITDA is a non-IFRS financial measure used by the Company to monitor its performance. Please see the section entitled “Non-IFRS Measures and Reconciliation of Non-IFRS Measures” in this press release for how we define “Adjusted EBITDA”.
3 The information in this section is forward-looking. Please see the section entitled “Cautionary Statement Regarding Forward-Looking Information” in this press release.
About Sangoma Technologies Corporation
Sangoma (TSX: STC; Nasdaq: SANG) is a leading business communications platform provider with solutions that include its award-winning UCaaS, CCaaS, CPaaS, and Trunking technologies. The enterprise-grade communications suite is developed in-house; available for cloud, hybrid, or on-premises setups. Additionally, Sangoma provides managed services for connectivity, network, and security. A trusted communications partner with over 40 years on the market, Sangoma has over 2.7 million UC seats across a diversified base of over 100,000 customers. Sangoma has been recognized for nine years running in the Gartner UCaaS Magic Quadrant. As the primary developer and sponsor of the open source Asterisk and FreePBX projects, Sangoma is determined to drive innovation in communication technology continuously. For more information, visit www.sangoma.com.
Cautionary Statement Regarding Forward Looking Statements
This press release contains forward-looking statements, including statements regarding the future success of our business, development strategies and future opportunities.
Forward-looking statements are provided for the purpose of presenting information about management’s current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. Forward-looking statements include, but are not limited to, statements relating to management's guidance on revenue and Adjusted EBITDA, statements relating to expected future production and cash flows, and other statements which are not historical facts. When used in this document, the words such as "could", "plan", "estimate", "expect", "will", "intend", "may", "potential", "should" and similar expressions indicate forward-looking statements.
Although Sangoma believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Forward-looking statements are based on the opinions and estimates of management at the date that the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in forward-looking statements.
Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other events contemplated by the forward-looking statements will not occur. Although Sangoma believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct as these expectations are inherently subject to business, economic and competitive uncertainties and contingencies. Some of the risks and other factors which could cause results to differ materially from those expressed in the forward-looking statements contained herein include, but are not limited to, risks and uncertainties associated with changes in exchange rate between the Canadian dollar and other currencies (in particular the United States’ (“US”) dollar), changes in technology, changes in the business climate, changes to macroeconomic conditions, including (i) inflationary pressures and potential recessionary conditions, as well as actions taken by central banks and regulators across the world in an attempt to reduce, curtail and address such pressures and conditions, including any increases in interest rates, and (ii) the effects of adverse developments at financial institutions, including bank failures, that impact general sentiment regarding the stability and liquidity of banks, and the resulting impact on the stability of the global financial markets at large, risks related to any pandemic or epidemic, our ability to identify and effectively remediate material weaknesses and significant deficiencies in our internal controls, our current level of indebtedness and the ability to incur additional indebtedness in the near- and long-term; changes in the regulatory environment, the imposition of tariffs, the decline in the importance of the PSTN (as defined in our MD&A), impairment of goodwill and new competitive pressures, political disturbances, geopolitical instability and tensions, or terrorist attacks, and associated changes in global trade policies and economic sanctions, including, but not limited to, in connection with (x) the ongoing conflict in
Our guidance is based on the Company’s assessment of many material assumptions, including:
- The Company’s ability to manage current supply chain constraints, including our ability to secure electronic components and parts, manufacturers being able to deliver ongoing quantities of finished products on schedule, no further material increases in cost for electronic components, and no significant delay or material increases in cost for shipping
- The successful transformation of the Company’s go-to-market strategy
- The revenue trends the Company experienced in fiscal 2025 to-date, the trends we expect going forward in fiscal 2025, the impact of our transformation of our go-to-market strategy and the impact of growing economic headwinds globally
-
The continuing effects of recent macro factors such as inflation, interest rates, recessions, invasions or declarations of war and a significant decrease in
U.S. government spending - There being continuing growth in the global UCaaS and cloud communications markets more generally
- There being continuing demand and subscriber growth for our Services and continuing demand as anticipated for our Products
- The impact of changes in global exchange rates on the demand for the Company’s Products and Services
- The ability of the Company’s customers to continue their business operations without any material impact on their requirements for the Company’s Products and Services
- The Company’s forecasted revenue from its internal sales teams and via channel partners will meet current expectations, which is based on certain management assumptions, including continuing demand for the Company’s products and services, no material delays in receipt of products from its contract manufacturers, no further material increase to the Company’s manufacturing, labor or shipping costs
- That the Company is able to attract and retain the employees needed to maintain the current momentum
- The timely execution of our ERP implementation in line with our forecasted budget
Non-IFRS Measures and Reconciliation of Non-IFRS Measure
This press release contains references to Adjusted EBITDA, a non-IFRS measure. Non-IFRS financial measures are used by management to evaluate the performance of the Company and do not have any meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other reporting issuers. Non-IFRS financial measures used herein have been applied on a consistent basis. “Adjusted EBITDA” means earnings before income taxes, interest expense (net), share-based compensation, depreciation (including for right-of-use assets), amortization, restructuring and business integration costs, goodwill impairment and change in fair value of consideration payable. Adjusted EBITDA is a measure used by many investors to compare issuers. We believe that Adjusted EBITDA is useful supplemental information as it provides an indication of the results generated by the Company's main business activities before taking into consideration how they are financed, taxed, depreciated or amortized. Investors are cautioned that non-IFRS financial measures, such as Adjusted EBITDA, should not be construed as an alternative to net income or cash flow determined in accordance with IFRS. The IFRS measure most directly comparable to Adjusted EBITDA presented in our financial statements is net loss.
The following table reconciles Adjusted EBITDA to net loss for the periods indicated:
Unaudited in US |
Three month periods ended December 31, |
Six month periods ended December 31, |
||||||||||||||
|
2024 |
2023 |
Change |
Change |
2024 |
2023 |
Change |
Change |
||||||||
|
$ |
$ |
$ |
% |
$ |
$ |
$ |
% |
||||||||
Net loss |
(1,881 |
) |
(3,239 |
) |
1,358 |
|
(41.9 |
)% |
(3,791 |
) |
(5,683 |
) |
1,892 |
|
(33.3 |
)% |
Tax expense (recovery) |
(274 |
) |
(644 |
) |
370 |
|
(57.5 |
)% |
(617 |
) |
(991 |
) |
374 |
|
(37.7 |
)% |
Interest expense (net) |
1,105 |
|
1,795 |
|
(690 |
) |
(38.4 |
)% |
2,483 |
|
3,457 |
|
(974 |
) |
(28.2 |
)% |
Share-based compensation |
1,038 |
|
856 |
|
182 |
|
21.3 |
% |
1,766 |
|
1,518 |
|
248 |
|
16.3 |
% |
Depreciation of property and equipment |
1,006 |
|
1,050 |
|
(44 |
) |
(4.2 |
)% |
2,091 |
|
2,123 |
|
(32 |
) |
(1.5 |
)% |
Depreciation of right-of-use assets |
653 |
|
731 |
|
(78 |
) |
(10.7 |
)% |
1,331 |
|
1,490 |
|
(159 |
) |
(10.7 |
)% |
Amortization of intangibles |
8,199 |
|
8,362 |
|
(163 |
) |
(1.9 |
)% |
16,397 |
|
16,723 |
|
(326 |
) |
(1.9 |
)% |
Restructuring and business integration costs |
242 |
|
1,335 |
|
(1,093 |
) |
(81.9 |
)% |
242 |
|
1,491 |
|
(1,249 |
) |
(83.8 |
)% |
Loss on change in fair value of consideration payable |
— |
|
202 |
|
(202 |
) |
(100.0 |
)% |
— |
|
202 |
|
(202 |
) |
(100.0 |
)% |
Adjusted EBITDA |
10,088 |
|
10,448 |
|
(360 |
) |
(3.4 |
)% |
19,902 |
|
20,330 |
|
(428 |
) |
(2.1 |
)% |
Percentage of revenue |
17.1 |
% |
16.8 |
% |
0.3 |
% |
1.7 |
% |
16.7 |
% |
16.2 |
% |
1.0 |
% |
6.2 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250205674793/en/
Sangoma Technologies Corporation
Larry Stock
Chief Financial Officer
investorrelations@sangoma.com
Source: Sangoma Technologies Corporation
FAQ
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