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TORONTO, ONTARIO, May 13, 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 in on-premises, cloud, or hybrid modes, today announced its financial results for the third quarter and unaudited interim consolidated financial statements for the three- and nine-month periods ended March 31, 2026. All amounts are expressed in U.S. dollars unless otherwise indicated.

“During the third quarter, we continued executing our strategy while operating in an increasingly dynamic market environment,” said Charles Salameh, Chief Executive Officer. “While some parts of the communications applications market remain competitive and face pricing pressure, we are seeing solid underlying performance in our communications infrastructure business, particularly in voice and managed services, where demand for secure and reliable connectivity continues to grow as voice and data become more deeply integrated into automated and AI-driven workflows. In light of the current macroeconomic backdrop and timing impacts in certain international markets, we have adjusted our fiscal 2026 outlook accordingly. At the same time, the board of directors is conducting a strategic review process to assess opportunities that could better recognize the long-term strategic value of the platform, infrastructure assets, recurring revenue base, and growth opportunities the Company has developed.”

Fiscal 2026 Third Quarter Highlights

  • Revenue of USD 51.0 million, slightly less than 1% below the previous quarter, with revenue mix in line with the Company's expectations. Excluding USD 6.3 million in revenue from VoIP Supply, LLC (“VS”), which was strategically divested to exit a low-margin, non-recurring resale business, revenue was less than 2% lower year over year on a comparable basis.
  • The Company showed strength in its MSP and Voice Infrastructure businesses, which grew 9% and 17% year over year, respectively, supported by increasing demand for reliable and secure communications infrastructure as voice and data become more integrated into automated workflows.
  • Gross profit of USD 36.4 million, representing 71% of total revenue, down from 74% in the previous quarter due to higher revenue from products that generally have a higher cost of sales.
  • Operating expenses were USD 38.5 million, decreasing by USD 1.5 million, or 4%, from the previous quarter, reflecting ongoing targeted cost-reduction initiatives and prudent expense management.
  • Net loss of USD 2.3 million (diluted loss per share of USD 0.07), compared with a net loss of USD 1.4 million (diluted loss per share of USD 0.04) in the same quarter of the previous year.
  • Adjusted EBITDA of USD 7.5 million, representing 15% of total revenue.
  • Quarterly churn rate remained low, below 1%.
  • Net cash from operating activities was USD 6.0 million in the third quarter, equal to 80% of adjusted EBITDA.
  • Free cash flow in the third quarter was USD 3.6 million (USD 0.11 per diluted share).
  • Total debt at the end of the third quarter of fiscal 2026 was USD 32.5 million, a reduction of approximately 39% compared with the same period in the previous year.
  • Cash at the end of the third quarter of fiscal 2026 was USD 15.2 million after repayment of a USD 15.5 million term loan and share repurchases of USD 1.0 million.

Strategic Review

In response to expressions of interest received throughout the fiscal year, the Board of Directors has engaged ATB Cormark Capital Markets to assist in evaluating the strategic alternatives available to the Company. While the Board and management remain committed to executing the Company's current operating strategy and pursuing it with full focus and discipline, consideration of strategic alternatives reflects the Board's ongoing commitment to maximizing shareholder value and evaluating opportunities that could better recognize the strategic value of the platform, infrastructure assets, customer relationships, recurring revenue base and long-term growth opportunities the Company has developed.

As part of this review, the Company is actively evaluating a range of potential strategic opportunities, including strategic partnerships, business combinations, investments and other transactions involving the Company. The Board's objective is to evaluate opportunities that could unlock shareholder value while supporting the continued expansion of the Company's communications infrastructure and AI-enabled platform strategy.

The Board has not set a fixed timetable for this process, and no assurance can be given as to its outcome. The Company does not intend to provide further updates regarding the process unless the Board approves a definitive agreement or disclosure is otherwise required.

Fiscal 2026 Outlook

Sangoma provided guidance for fiscal 2026 on September 17, 2025, which it reaffirmed on November 5, 2025. This guidance included total revenue of between USD 200 million and USD 210 million, with sequential growth expected in the second quarter of fiscal 2026, and an adjusted EBITDA margin of between 17% and 19%, including additional go-to-market investments to drive organic growth. Sangoma refined its fiscal 2026 guidance on February 4, 2026, indicating total revenue of between USD 205 million and USD 208 million and an adjusted EBITDA margin of between 17% and 18%.

In light of changes in revenue timing, product mix and current macroeconomic conditions, Sangoma is revising its fiscal 2026 guidance as follows:

  • Total revenue: USD 204–205 million
  • Adjusted EBITDA margin: 15%–16%

Conference Call

Sangoma will host a conference call on Wednesday, May 13, 2026, 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 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 see the section entitled “Non-IFRS Measures and Reconciliation of Non-IFRS Measures” in this press release for how we define “Adjusted EBITDA” and “Free Cash Flow.”
  • 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 provider of business communications platforms, offering solutions that include its award-winning UCaaS, CCaaS, CPaaS and trunking technologies. Its enterprise-grade communications suite is developed in-house and is available in cloud, hybrid or on-premises configurations. In addition, Sangoma offers managed connectivity, networking and security services. As a trusted communications partner for more than 40 years, Sangoma has more than 2.7 million UC seats across a diverse customer base of more than 100,000. Sangoma has been recognized in the Gartner UCaaS Magic Quadrant for nine consecutive years. As the developer and primary 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.

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, strategic review process, 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, the impacts of foreign exchange, 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 filed 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 has no obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise.

Our guidance 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, contract manufacturers delivering finished products on time, and no material increase in component, labor or logistics costs.
  • Shipping routes and freight services remaining available without significant delays or cost increases.
  • Tariffs, trade restrictions and import duties applicable to the Company's hardware products manufactured outside the United States and imported for sale in the U.S. market not materially exceeding current levels, and no introduction of new trade restrictions or regulatory barriers that would further affect the hardware cost structure, product pricing or demand environment.

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 customer adoption of subscription-based services.
  • Revenue trends consistent with those observed in fiscal 2025 to date, adjusted for anticipated market conditions in 2026.
  • Continued customer demand for 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 expected revenue in line with management's expectations.
  • International revenue remaining stable and not subject to material disruption due to ongoing geopolitical conflicts, including instability in the Middle East and surrounding regions, which have introduced uncertainty in certain international markets and may affect customer purchasing decisions, deal timing and the Company's ability to close opportunities in affected areas.

Market & Macroeconomic Environment

  • Continued expansion of the global UCaaS and cloud communications markets, supported by digital transformation and hybrid work adoption.
  • Overall macroeconomic conditions not deteriorating beyond currently anticipated levels, including inflation, interest rates, recessions, geopolitical conflicts, political instability or government fiscal constraints.

Customers & Ecosystem

  • Customers maintaining 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 SMBs, enterprises, 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 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 the key employees needed to support growth and innovation.
  • No major labor disruption, spike 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 therefore may not be comparable to similar measures presented by other issuers. Instead, these measures are provided as supplemental information to complement IFRS measures by providing a better 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 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 the determination of 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 right-of-use assets), amortization, business restructuring and integration costs, goodwill impairment, change in fair value of contingent consideration payable, and loss on sale of 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: