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TORONTO, ONTARIO, 10 November 2025 – Sangoma Technologies Corporation (TSX: STC; Nasdaq: SANG) (“Sangoma” or the “Company”), a trusted leader offering businesses a choice of on-premises, cloud or hybrid Communications as a Service solutions, today announced its financial results for the first quarter and its unaudited interim consolidated financial statements for the three-month period ended September 30, 2025. All amounts are expressed in U.S. dollars unless otherwise indicated.

“Our first-quarter results mark a confident start to fiscal 2026,” said Charles Salameh, Chief Executive Officer. “We achieved our operating plan objectives, maintained solid margins and generated healthy free cash flow — demonstrating the strength and resilience of our recurring revenue model. With our transformation complete, Sangoma now operates from a position of agility and focus. We are executing with discipline, broadening our software and services portfolio, and deepening our relationships across our global customer and partner base. We are also seeing growth in average booking sizes as customers increasingly adopt our integrated bundles and recognize the value of our unified communications platform. With a solid balance sheet and clear strategic direction, we are well positioned to seize emerging opportunities, drive sequential revenue growth next quarter and deliver lasting value to our shareholders.”

Fiscal 2026 First-Quarter Highlights:

  • Revenue was in line with the plan at $50.8 million, laying the foundation for sequential growth in the second quarter. Excluding the $7.6 million in revenue from VoIP Supply, LLC (“VS”), which was strategically sold to exit the low-margin, non-recurring resale business, revenue was down 3% year over year on a comparable basis.
  • Average revenue per customer increased 19% year over year, while the Company recorded a 6% increase in bookings over the same period, supporting the Company's growth outlook for the remainder of the year.
  • Gross profit of $36.8 million, representing 72% of total revenue, compared with 67% in the fourth quarter of fiscal 2025, reflecting the shift to higher-margin recurring services following the sale of VS.
  • Operating expenses1 were $38.5 million, down $3.6 million or 9% from the same quarter of the prior year, reflecting efficiency gains from 2025 transformation activities.
  • Net loss of $2.3 million ($0.07 diluted loss per share), compared with a net loss of $1.9 million ($0.06 diluted loss per share) in the same quarter of the prior year.
  • Adjusted EBITDA2 of $8.3 million, representing 16% of total revenue, in line with historical seasonal trends and expected margin improvement during the year.
  • The quarterly churn rate remained low at approximately 1%.
  • Net cash from operating activities of $4.9 million in the first quarter, equal to 60% of adjusted EBITDA2.
  • Free cash flow2 of $3.2 million ($0.10 per diluted share) in the first quarter.
  • More than 700,000 shares were repurchased for cancellation under the normal course issuer bid launched on March 27, 2025, including 195,949 shares repurchased after the end of the first quarter.

Fiscal 2026 Outlook

Sangoma provided its fiscal 2026 outlook on September 17, 2025, and reaffirms it as follows:

  • Total revenue is expected to be between $200–210 million, compared with $209 million in 2025 when excluding the VS contribution, with sequential growth expected in the second quarter of 2026.
  • Adjusted EBITDA2 margin is expected to be between 17% and 19%, including additional go-to-market investments to drive organic growth.

Conference Call

Sangoma will hold a conference call on Wednesday, November 10, 2025, at 5:30 p.m. (ET) to discuss these results. The call access number is 1-833-752-3740 (International +1-647-846-8617). Participants are asked to connect 5 minutes before the scheduled time and ask to join the Sangoma Technologies call.

Operating expenses include sales and marketing, research and development, general and administrative expenses, and amortization of intangible assets.

Adjusted EBITDA and free cash flow are non-IFRS financial measures used by the Company to monitor its performance. Please refer to the section entitled “Non-IFRS Measures and Reconciliation of Non-IFRS Measures” in this press release to understand how we define “Adjusted EBITDA” and “Free Cash Flow.” The information in that section is forward-looking. Please refer to the section entitled “Cautionary Statement Regarding Forward-Looking Information” in this press release.

About Sangoma Technologies Corporation

Sangoma (TSX: STC; Nasdaq: SANG) is an enterprise communications platform provider offering solutions including its award-winning UCaaS, CCaaS, CPaaS and trunking technologies. Its enterprise-grade communications suite is developed in-house and available for cloud, hybrid or on-premises deployments. In addition, Sangoma offers managed services for connectivity, networking and security. A trusted partner for more than 40 years, Sangoma has more than 2.7 million UC seats across a diverse base of more than 100,000 customers. Sangoma has been recognized in the Gartner UCaaS Magic Quadrant for nine consecutive years. As the developer and principal sponsor of the open-source Asterisk and FreePBX projects, Sangoma is committed to continuously driving innovation in communications technology. For more information, visit [www.sangoma.com.](http://visit www.sangoma.com)

Cautionary Statement Regarding Forward-Looking Statements This press release contains forward-looking information and forward-looking statements (collectively, “forward-looking statements”), including statements regarding the Company’s future financial and operational performance, business strategy, growth opportunities, market outlook and management’s expectations for fiscal 2026 and beyond. Forward-looking statements are provided to present management’s current expectations and plans concerning the future, and readers are cautioned that these statements may not be appropriate for other purposes. Forward-looking statements include, without limitation, statements relating to management’s guidance on revenue and Adjusted EBITDA, expectations regarding demand for the Company’s products and services, supply chain dynamics, foreign exchange impacts, cash flows and other statements that are not historical facts. Words such as “believe,” “may,” “plan,” “estimate,” “expect,” “will,” “intend,” “could,” “potential,” “should” and similar expressions are intended to identify forward-looking statements.

Although Sangoma believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to differ materially from those expressed or implied in these forward-looking statements. These risks and uncertainties include, without limitation: supply chain disruptions, cost inflation, shipping delays, the Company’s ability to execute its go‑to‑market strategy, including the expansion of subscription and cloud services, changes in customer demand, churn, or adoption of new technologies, macroeconomic and geopolitical developments, including inflation, interest rates, recessions, political instability, conflicts, trade restrictions, sanctions or tariffs, foreign exchange fluctuations, cybersecurity risks, evolving regulatory and compliance requirements, changes in data sovereignty, the Company’s ability to attract and retain key employees, technological changes, including the impacts of artificial intelligence, automation or other innovations that may alter competitive dynamics; and the risks and uncertainties described in the Company’s latest annual information form for the fiscal year ended June 30, 2025. Forward-looking statements are based on management’s opinions, estimates and assumptions as of the date of this press release and are inherently subject to significant business, economic and competitive uncertainties. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no guarantee that the plans, intentions or expectations on which they are based will be realized. Except as required by applicable securities laws, Sangoma undertakes no obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise.

Our forecasts are based on the Company’s assessment of numerous significant assumptions, including:

Operations & Supply Chain

  • The Company’s ability to effectively manage ongoing supply chain dynamics, including obtaining the necessary electronic components and parts, contract manufacturers delivering finished products on time, and no material increase in component, labor or logistics costs.
  • Shipping routes and freight services remain available without significant delays or cost increases.

Go-to-Market & Revenue

  • Successful implementation of the Company’s go-to-market transformation and related initiatives, including expanding sales capacity, improving channel enablement and increasing adoption of subscription-based services.
  • Revenue trends consistent with those observed in 2025 to date, adjusted for anticipated market conditions in 2026.
  • Continued customer demand for Services and Products, supported by stable renewal rates, acquisition of new logos and expansion within the existing customer base.
  • The Company’s internal sales force and channel partners delivering forecast revenue in line with management expectations.

Market & Macroeconomic Environment

  • The continued expansion of global UCaaS and cloud communications markets, supported by digital transformation and the adoption of hybrid work.
  • Overall macroeconomic conditions do not deteriorate beyond currently anticipated levels, including inflation, interest rates, recessions, geopolitical conflicts, political instability or government fiscal constraints.
  • No introduction of tariffs, trade restrictions or other regulatory barriers that would affect the Company’s cost structure or demand environment.

Customers & Ecosystem

  • Customers maintain their business operations and levels of technology investment without significant disruption that would materially reduce demand for the Company’s products or services.
  • Stable or growing demand from key sectors, including SMEs, enterprises and channel-driven markets.
  • Customers’ and partners’ ability to adapt to evolving regulatory, security and compliance requirements without adversely affecting purchasing cycles.

Currency & Financial

  • Exchange rates remain within a range that does not materially affect reported results.
  • Access to capital and credit markets remains available on reasonable terms, with no material change in financing costs.

Talent & Execution

  • The Company’s continued ability to attract, develop and retain key employees needed to support growth and innovation.
  • No major labor disruptions, increase in attrition or difficulty securing specialized talent in technology, sales or operations.
  • Delivery of planned product roadmaps and technology improvements on time and within budget.

Non-IFRS Measures and Reconciliation of Non-IFRS Measures

This press release contains references to non-IFRS measures. These measures are used by management to evaluate the Company's performance and have no meaning prescribed by IFRS and are therefore not comparable to similar measures presented by other issuers. Instead, these measures are provided as supplementary information to complement IFRS measures by offering a better understanding of the Company's operating results from management's perspective and should not be considered in isolation or as a substitute for analysis of our financial information reported under IFRS. These non-IFRS measures are used to provide investors with alternative measures of our operating performance and liquidity and thereby highlight trends in our business that might otherwise not be apparent when relying solely on IFRS measures. We also believe that financial analysts, investors and other interested parties frequently use non-IFRS measures to compare issuers. Management also uses non-IFRS measures to facilitate comparisons of operating performance from one period to another, the preparation of annual operating budgets and forecasts, and to determine components of executive compensation. The non-IFRS measures referred to in this press release include “Adjusted EBITDA” and “Free Cash Flow”.

“Adjusted EBITDA” means earnings before taxes, interest (net), share-based compensation, depreciation (including on right-of-use assets), amortization, business restructuring and integration costs, goodwill impairment, change in the fair value of the payable consideration, and loss on disposal of a subsidiary.

The IFRS measure most directly comparable to Adjusted EBITDA presented in our financial statements is net income (loss). The following table reconciles Adjusted EBITDA to net income (loss) for the periods indicated:

“Free cash flow” means cash provided by operating activities less cash used for the purchase of property and equipment and capitalized development costs.

The IFRS measure most directly comparable to free cash flow presented in our financial statements is net cash provided by operating activities.

The following table reconciles Free Cash Flow to net cash provided by operating activities for the periods indicated: