In fiscal year 2025, Sangoma Technologies reported US$236.7 million in revenue, with over 90% of that now stemming from software-led recurring services, moving away from the old hardware model. The company is experiencing strong growth in its data networking and voice networking segments, with year-over-year growth rates of approximately 9% and 17%, respectively. As part of a strategic review, the Company is actively evaluating potential strategic opportunities, including strategic partnerships, business combinations, and investments, with the Board's objective to assess opportunities that could unlock shareholder value while supporting the continued expansion of the Company's communications infrastructure and AI-enabled platform strategy.
Cyborg Score Rationale
Strong growth in data networking (9% YoY) and voice networking (17% YoY) segments is offset by geopolitical and global trade-related disruptions affecting certain international markets, causing the company to revise full-year revenue expectations to between $204 million and $205 million. The company is facing continued pricing and monetization pressure across parts of its software and UCaaS markets.
Top Insights
Recurring revenue comprised 92% of total revenue in Q1 FY2026, up to over 90% by fiscal 2026, representing a successful transformation from hardware to software-led services
The company is transitioning towards larger integrated deployments, which are longer-term, higher-value contracts that improve customer lifetime value and reduce churn
The company's financial models generate strong cash flow with an 80% conversion rate from adjusted EBITDA to net cash from operations, and is actively reallocating investments towards faster-growing parts of the business, particularly infrastructure and AI-enabled capabilities
Sangoma has been recognized for nine years running in the Gartner UCaaS Magic Quadrant
Named Competitors
Zoom — Leading cloud video communications and UCaaS platform
RingCentral — Cloud-based unified communications and contact center solutions
8x8 — Cloud-based communications platform for enterprise and SMB
Microsoft Teams — Integrated UCaaS and collaboration platform bundled with Office 365
Recent Developments
(February 2026) Q2 Fiscal 2026 delivered sequential revenue growth consistent with expectations, generated strong cash flow from operations, and posted a solid bookings quarter, while maintaining a focused approach to profitability and capital discipline
(May 2026) Q3 Fiscal 2026 results announced with strong underlying performance in communications infrastructure businesses, particularly within voice and managed services
(May 2026) Board engaged in strategic review process to evaluate potential transactions including strategic partnerships and business combinations to unlock shareholder value
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