TORONTO, ONTARIO, September 17, 2025 – Sangoma Technologies Corporation (TSX: STC; Nasdaq: SANG) (“Sangoma” or the “Company”), a trusted industry leader that gives businesses the ability to choose on-premises, cloud or hybrid Communications as a Service solutions, today announced its financial results for the fourth quarter and consolidated financial statements for the year ended June 30, 2025. All amounts are expressed in U.S. dollars unless otherwise indicated.

“Fiscal 2025 was a year of transformation and disciplined execution for Sangoma, and our Q4 results reflect the strength of these efforts. Revenue and Adjusted EBITDA2 were above the midpoint of our guidance range, while free cash flow generation2 remained strong, as we completed the strategic shift toward software- and services-focused recurring revenue, which now represents more than 90% of our business,” said Charles Salameh, Chief Executive Officer. “With our transformation complete, a strong balance sheet and expanding strategic partnerships, we are entering fiscal 2026 with growing momentum. We are confident in the opportunities ahead as we develop our platform, deepen our presence in priority sectors and create significant long-term value for shareholders.”

Fiscal 2025 Fourth Quarter Highlights:

  • Total revenue of $59.4 million, up $1.3 million or 2% from the third quarter of fiscal 2025, primarily due to an increase in product revenue related to our core platform products and services as well as third-party hardware sales, while overall revenue from core platform products and services remained flat quarter over quarter.
  • Gross profit of $40.0 million, representing 67% of total revenue.
  • Operating expenses1 of $39.1 million, down $2.5 million or 6% from the same quarter of the prior year.
  • Net income of $0.2 million ($0.01 diluted earnings per share) compared with a net loss of $1.7 million ($0.05 diluted loss per share) in the same quarter of the prior year.
  • Adjusted EBITDA2 of $11.4 million, representing 19% of total revenue and reaching its highest level in the last 8 quarters.
  • Quarterly churn rate remains an industry-leading less than 1%.
  • Net cash from operating activities of $7.1 million in the fourth quarter, or 63% as a percentage of Adjusted EBITDA2.
  • Fourth-quarter free cash flow2 of $4.8 million ($0.14 per diluted share).
  • Due to the ERP transition, the Company accelerated $3.0 million in supplier payments in the fourth quarter, bringing net cash from operating activities and free cash flow for the quarter to $10.1 million, or 89% of Adjusted EBITDA2, and $7.8 million ($0.22 per diluted share), respectively. This was a one-time acceleration, and we expect net cash from operating activities and free cash flow to return to historical levels in the first quarter of fiscal 2026.
  • More than 500,000 shares were repurchased for cancellation under the current normal course issuer bid launched on March 27, 2025.
  • On June 30, 2025, the Company completed the sale of VoIP Supply LLC (“VoIP Supply”) for a total purchase price of $4.5 million, representing a multiple of approximately 4x Adjusted EBITDA, settled in cash after the fiscal year-end.

Fiscal 2025 Highlights:

  • Fiscal 2025 total revenue was $236.7 million, within the guided range of $235–$238 million.
  • Fiscal 2025 gross profit was $161.7 million, or 68% of total revenue.
  • Fiscal 2025 operating expenses1 were $163.0 million, down $10.9 million, or 6%, from fiscal 2024, reflecting the Company’s disciplined approach to cost savings and operational efficiencies.
  • Fiscal 2025 net loss was $5.0 million ($0.15 loss per diluted share), compared with a net loss of $8.7 million ($0.26 loss per diluted share) in the prior year.
  • Fiscal 2025 Adjusted EBITDA2 was $41.0 million, in the middle of the guided range of $40–$42 million and representing 17% of total revenue.
  • Industry-leading churn rate of less than 1% for fiscal 2025.
  • Fiscal 2025 net cash from operating activities was $41.8 million, or 102% as a percentage of Adjusted EBITDA2, reflecting healthy cash conversion from operations.
  • Fiscal 2025 free cash flow2 was $32.9 million ($0.98 per diluted share), slightly below $33.3 million ($1.00 per diluted share) in the prior year.
  • Due to the ERP transition, the Company accelerated $3.0 million in supplier payments in the fourth quarter, bringing net cash from operating activities and free cash flow for the year to $44.8 million, or 109% of Adjusted EBITDA2, and $35.9 million ($1.07 per diluted share), respectively.
  • Total debt at the end of fiscal 2025 was $47.9 million, a reduction of approximately 40% from the prior year, substantially exceeding the previously announced debt reduction target of $55–$60 million.
  • Cash at the end of fiscal 2025 was $13.5 million, reflecting solid progress in operating cash flow for the year, partially offset by debt reduction of $29.9 million and share repurchases of $2.8 million.

Fiscal 2026 Outlook3 Sangoma provides the following outlook for fiscal 2026:

  • Total revenue expected in the range of $200–$210 million, compared with $209 million in 2025 excluding the contribution from VoIP Supply LLC (“VoIP Supply”), with growth expected in core platform product and service categories by the second half of fiscal 2026.
  • Adjusted EBITDA2 margin in the range of 17%–19%, including additional go-to-market investments to drive organic growth.

Conference Call

Sangoma will host a conference call on Wednesday, September 17, 2025, at 5:30 p.m. (ET) to discuss these results. The dial-in number is 1‑833‑752‑3740 (International +1‑647‑846‑8617). Participants are requested to dial in 5 minutes before the scheduled time and ask to join the Sangoma Technologies call.

1Operating expenses include sales and marketing, research and development, general and administrative expenses, and amortization of intangible assets.

2Adjusted 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” of this press release to learn how we define “Adjusted EBITDA” and “Free Cash Flow”.

3The information in this section is forward-looking. Please refer to the section entitled “Cautionary Statement Regarding Forward-Looking Information” of this press release.

About Sangoma Technologies Corporation Sangoma (TSX: STC; Nasdaq: SANG) is a leading enterprise communications platform provider offering solutions that include its UCaaS, CCaaS, CPaaS and trunking technologies. The enterprise-grade communications suite is developed in-house and available for cloud, hybrid or on-premises deployments. In addition, Sangoma offers managed connectivity, network and security services. A trusted partner for more than 40 years, Sangoma has more than 2.7 million UC seats among a diverse customer base of over 100,000. Sangoma has been recognized for nine consecutive years in the Gartner UCaaS Magic Quadrant. As the developer and primary sponsor of the Asterisk and FreePBX open-source projects, Sangoma is committed to continuously driving innovation in communications technology. For more information, 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 operating 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, but are not limited to, 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”, “could”, “plan”, “estimate”, “expect”, “will”, “intend”, “may”, “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 from those expressed or implied. These risks and uncertainties include, but are not limited to: supply chain disruptions, cost inflation, shipping delays, the Company’s ability to execute its go-to-market strategy, changes in customer demand, churn or adoption of new technologies, macroeconomic and geopolitical developments, 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 talent, 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 no assurance can be given that the plans, intentions or expectations on which they are based will be achieved. 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 material assumptions, including:

Operations & Supply Chain

  • The Company’s ability to effectively manage ongoing supply chain dynamics, including obtaining necessary electronic components and parts, timely delivery by contract manufacturers, 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 customer adoption of subscription services.
  • Revenue trends consistent with those observed year to date in 2025, adjusted for anticipated market conditions in 2026.
  • Continued customer demand for the Services and Products, supported by stable renewal rates, new logo acquisition and expansion within the existing customer base.
  • The Company’s internal sales force and channel partners delivering projected revenues in line with management’s expectations.

Market & Macroeconomic Environment

  • Continued expansion of the global UCaaS and cloud communications markets, supported by digital transformation and the adoption of hybrid work.
  • General 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 materially adverse tariffs, trade restrictions or other regulatory barriers that would alter the Company’s cost structure or demand environment.

Customers & Ecosystem

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

Currency & Finance

  • Exchange rates remain within a range that does not materially impact 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 talent needed to support growth and innovation.
  • No major labor disruptions, spikes in attrition or difficulty securing specialized talent in technology, sales or operations.
  • Delivery of planned product roadmaps and technology enhancements on schedule 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 prescribed meaning under 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 deeper understanding of our 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 provided to offer investors 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 securities 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 mentioned in this press release include “Adjusted EBITDA” and “Free Cash Flow”.

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

The following table reconciles free cash flow to net cash from operating activities for the periods indicated: