Sangoma Technologies Corporation (SANG) Income Statement

The year-over-year revenue growth rate moved from flat through most of 2025 to double-digit contraction by late 2025 and into 2026, with the 2026Q4 figure reflecting roughly 40% year-over-year decline. This pattern suggests the company may be losing customers, pricing, or deal volume faster than new revenue sources can replace it. Investors should monitor whether the 2026Q4 drop represents a one-time disruption or the start of a sustained downtrend that the reported figures appear to indicate.

The mid-2026 margin expansion coincided with falling revenue, which may reflect a shift in revenue mix toward higher-margin offerings or reduced cost of sales, though the reported data does not isolate the driver. The 2026Q4 collapse to 45.3% suggests either a large one-time cost or a meaningful loss of pricing leverage, and the cause warrants further investigation. Peer gross margins range from roughly 27% to 74%, so the company's recent level sits within a wide industry band, but its month-to-month instability is the more analytically relevant concern.

Operating expenses including R&D and SG&A have declined in absolute terms, with SG&A falling from $31.8M in 2024Q4 to $19.4M in 2026Q4, yet the operating margin still deteriorated to -12.5%. This suggests negative operating leverage: each dollar of lost gross profit has not been offset by equivalent overhead reduction. The reported figures indicate the company has not yet reached a cost structure appropriate for its current revenue base.