Sangoma Technologies (STC) Q4 2025 earnings summary

Executive summary

• Delivered Q4 FY2025 revenue of $59.4M, adjusted EBITDA of $11.4M (19% margin), and free cash flow of $0.14/share, exceeding consensus expectations.

• Completed transformation to a software and services-led recurring revenue model, now over 90% of business.

• Divested VoIP Supply to sharpen focus on software-led recurring revenue.

• Strategic partnerships with AWS, VTech, and Quicklert are driving vertical expansion in hospitality, education, and healthcare.

• Net income of $0.2M in Q4 2025, reversing a net loss from the prior year quarter.

Financial highlights

• Q4 2025 revenue was $59.4M, up 2% sequentially; gross profit was $40M (67% margin), down from 69% in Q3 due to higher product sales mix.

• Fiscal 2025 revenue totaled $236.7M, within guidance; gross profit was $161.7M (68% margin).

• Adjusted EBITDA for Q4 2025 was $11.4M (19% margin), highest in 8 quarters; fiscal 2025 Adjusted EBITDA was $41M (17% margin).

• Free cash flow for Q4 2025 was $4.8M ($0.14/share); FY2025 free cash flow was $32.9M ($0.98/share).

• Operating expenses for fiscal 2025 were $163M, down 6% year-over-year.

Outlook and guidance

• FY2026 revenue guidance: $200M–$210M, reflecting VoIP Supply sale and anticipated core growth in H2.

• Sequential growth expected to begin in Q2 FY2026 and continue through the year.

• Gross margins expected to improve to ~75% in Q1 FY2026; OpEx stable at ~$30M/quarter (excluding amortization).

• Adjusted EBITDA margin guidance for FY2026: 17%–19%, including increased go-to-market investments.

• Strong cash generation expected to continue, supporting growth and shareholder returns.