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TORONTO, ONTARIO, February 4, 2026 – Sangoma Technologies Corporation (TSX: STC; Nasdaq: SANG) (“Sangoma” or the “Company”), a trusted leader offering businesses a range of Communications as a Service solutions on-premises, in the cloud or in a hybrid model, today announced its financial results for the second quarter and its unaudited interim consolidated financial statements for the three and six-month periods ended December 31, 2025. All amounts are expressed in U.S. dollars unless otherwise indicated. “Our second quarter results demonstrate continued progress and disciplined execution across the business,” said Charles Salameh, Chief Executive Officer. “We delivered sequential revenue growth in line with our expectations, generated solid operating cash flow and recorded a robust quarter of bookings, while maintaining a focused approach to profitability and capital discipline.”

As we enter the second half of fiscal 2026, we remain focused on executing our operating plan, strengthening our software and services mix, and supporting our customers and partners. While we continue to operate in a dynamic market environment, the consistency we are seeing in bookings, churn and cash generation gives us confidence in our ability to sustain sequential progress and provide market flexibility to evolve the business. 

Fiscal second-quarter 2026 highlights:

  • Revenue of USD 51.5 million, up 1% from the previous quarter, in line with the Company’s expectations. Excluding the USD 6.4 million in revenue from VoIP Supply, LLC (“VS”), which was strategically sold to exit a low-margin, non-recurring resale business, revenue was 2% lower year over year on a comparable basis.
  • The Company recorded a 60% year-over-year increase in MRR bookings, supporting the Company’s growth initiatives.
  • Gross profit of USD 38.2 million, representing 74% of total revenue, up from 72% in the previous quarter, driven by a shift toward higher-margin recurring services.
  • Operating expenses1 were USD 40.0 million, an increase of USD 1.5 million or 4% from the previous quarter, reflecting an increase in commissions paid on bookings as the Company saw growth in large bookings during the quarter.
  • Net loss of USD 2.0 million (diluted loss per share of USD 0.06) compared with a net loss of USD 1.9 million (diluted loss per share of USD 0.06) in the same quarter of the previous year.
  • Adjusted EBITDA2 of USD 8.3 million, representing 16% of total revenue, in line with historical seasonal trends.
  • Quarterly churn remained low, at less than 1%.
  • Net cash from operating activities of USD 10.1 million in the second quarter, equal to 122% of Adjusted EBITDA2.
  • Free cash flow2 of USD 8.0 million in the second quarter (USD 0.24 per diluted share).
  • More than 700,000 shares were repurchased for cancellation under the normal course issuer bid launched on March 27, 2025, including 195,949 repurchased during fiscal second-quarter 2026.
  • Total debt at the end of fiscal second-quarter 2026 was USD 37.6 million, a reduction of approximately 38% compared with the same period last year.
  • Cash at the end of fiscal second-quarter 2026 was USD 17.1 million, reflecting strong growth in operating cash flow during the first two quarters, partially offset by the reduction of total debt by USD 10.3 million and share repurchases of USD 1.0 million.

Fiscal 2026 Outlook3

Sangoma provided its fiscal 2026 outlook on September 17, 2025, which it reaffirmed on November 5, 2025. The outlook included total revenue of USD 200–210 million, with sequential growth expected in fiscal second-quarter 2026, and an Adjusted EBITDA margin of 17% to 19%, including additional market investments to drive organic growth.

With the Company having achieved sequential growth in the second quarter, Sangoma is now refining its fiscal 2026 outlook as follows:

  • Total revenue: USD 205–208 million
  • Adjusted EBITDA margin²: 17%–18%

Conference Call

Sangoma will hold a conference call on Wednesday, February 4, 2026, 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 asked to dial in 5 minutes before the scheduled start time and request 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 this 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 that include 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. As a trusted communications 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 for nine consecutive years in the Gartner UCaaS Magic Quadrant. As the developer and principal 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 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 regarding 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,” “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, but are not limited to: 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 is no assurance 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 any forward-looking statements, whether as a result of new information, future events or otherwise.

Our outlook is based on the Company’s assessment of numerous important assumptions, including:

Operations & Supply Chain

  • The Company’s ability to effectively manage ongoing supply chain dynamics, including obtaining the necessary electronic components and parts, ensuring contract manufacturers deliver finished products on time, and avoiding material increases 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 activation, and increasing adoption of subscription services.
  • Revenue trends consistent with those observed in fiscal 2025 to date, adjusted for anticipated market conditions in fiscal 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 forecast 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 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 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 technology investment levels without significant disruption that could 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 are able 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 affect reported results.
  • Access to capital and credit markets remains available on reasonable terms, without material changes in financing costs.

Talent & Execution

  • The Company’s continued ability to attract, develop, and retain the key employees needed to support growth and innovation.
  • No major labor disruption, increase in attrition, or difficulty securing specialized talent in technology, sales, or operations.
  • Delivery of planned product roadmaps and technology improvements 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 meaning prescribed by IFRS and are therefore not comparable to similar measures presented by other issuers. Instead, these measures are provided as additional information to supplement 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, prepare annual operating budgets and forecasts, and 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, and loss on the sale or 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: