Revenue plummeted to $51.0M in 2026Q3, a 38.3% year-over-year contraction, though the company maintained a resilient 71.3% gross margin despite the volume decline.
| Metric | TTM | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 | Jun'18 | Jun'17 | Jun'16 | Jun'15 | Jun'14 | Jun'13 | Jun'12 | Jun'11 | Jun'10 | Jun'09 | Jun'08 | Jun'07 | Jun'06 | Jun'05 | Jun'04 | Jun'03 | Jun'02 | Jun'01 | Jun'00 | Jun'99 | Jun'98 | Jun'97 |
|---|
| Sales/Revenue | 273.35M | 322.48M | 338.19M | 334.54M | 288.87M | 288.87M | 96.22M | 83.52M | 43.61M | 20.67M | 16.38M | 13.15M | 12.96M | 12.31M | 13.53M | 12.25M | 11.87M | 9.58M | 12.13M | 7.72M | 4.29M | 2.81M | 1.91M | 2.26M | 1.68M | 1.98M | 675.15K | 64.99K | 139.76K | 218.91K |
| Revenue Growth % | -17.83% | -4.65% | 1.09% | 15.81% | 0% | 200.22% | 15.2% | 91.5% | 111.02% | 26.17% | 24.61% | 1.42% | 5.31% | -9.04% | 10.49% | 3.19% | 23.86% | -20.99% | 56.99% | 80.23% | 52.72% | 46.63% | -15.24% | 34.35% | -15.03% | 192.97% | 938.87% | -53.5% | -36.16% | - |
| Cost of Goods Sold | 78.62M | 102.1M | 101.84M | 105.64M | 86.86M | 86.86M | 34.05M | 32.62M | 20.11M | 7.19M | 5.24M | 4.31M | 4.29M | 4.24M | 4.22M | 3.12M | 3.09M | 2.51M | 3.75M | 2.23M | 1.23M | 748.23K | 516.82K | 642.42K | 478.37K | 754.15K | 270.06K | 0 | 69.88K | 72.97K |
| COGS % of Revenue | - | 31.66% | 30.11% | 31.58% | 30.07% | 30.07% | 35.39% | 39.05% | 46.12% | 34.8% | 32.02% | 32.79% | 33.08% | 34.48% | 31.21% | 25.48% | 26.05% | 26.24% | 30.96% | 28.85% | 28.64% | 26.66% | 27% | 28.45% | 28.46% | 38.13% | 40% | - | 50% | 33.33% |
| Gross Profit | 194.73M | 220.37M | 236.36M | 228.91M | 202M | 202M | 62.17M | 50.9M | 23.5M | 13.48M | 11.14M | 8.83M | 8.67M | 8.06M | 9.31M | 9.13M | 8.78M | 7.07M | 8.37M | 5.5M | 3.06M | 2.06M | 1.4M | 1.62M | 1.2M | 1.22M | 405.09K | 0 | 69.88K | 145.94K |
| Gross Margin % | 71.24% | 68.34% | 69.89% | 68.42% | 69.93% | 69.93% | 64.61% | 60.95% | 53.88% | 65.2% | 67.98% | 67.21% | 66.92% | 65.52% | 68.79% | 74.52% | 73.95% | 73.76% | 69.04% | 71.15% | 71.36% | 73.34% | 73% | 71.55% | 71.54% | 61.87% | 60% | - | 50% | 66.67% |
| Gross Profit Growth % | - | -6.76% | 3.25% | 13.32% | 0% | 224.94% | 22.13% | 116.62% | 74.38% | 21.01% | 26.05% | 1.85% | 7.57% | -13.37% | 2% | 3.98% | 24.18% | -15.59% | 52.34% | 79.73% | 48.59% | 47.31% | -13.52% | 34.38% | -1.75% | 202.11% | - | -100% | -52.12% | - |
| Operating Expenses | 200.17M | 222.1M | 237.81M | 232.81M | 209.12M | 209.12M | 54.71M | 45.33M | 20.16M | 12.37M | 10.8M | 8.3M | 7.85M | 8.26M | 8.27M | 9.25M | 5.94M | 4.49M | 3.31M | 2.18M | 1.32M | 1.28M | 1.12M | 1.1M | 818.37K | 1.76M | 337.58K | 64.99K | 139.76K | 364.86K |
| OpEx % of Revenue | - | 68.87% | 70.32% | 69.59% | 72.39% | 72.39% | 56.86% | 54.27% | 46.23% | 59.86% | 65.91% | 63.15% | 60.53% | 67.07% | 61.13% | 75.55% | 50.02% | 46.83% | 27.32% | 28.22% | 30.9% | 45.46% | 58.66% | 48.73% | 48.69% | 88.73% | 50% | 100% | 100% | 166.67% |
| Selling, General & Admin | 103.97M | 120.03M | 138.17M | 138.22M | 165.14M | 165.14M | 37.2M | 29.53M | 14.26M | 8.42M | 7.23M | 5.53M | 5.41M | 5.57M | 5.93M | 4.98M | 4.24M | 3.38M | 3.22M | 2.14M | 1.3M | 953K | 783.93K | 796.99K | 602.57K | 1.5M | 270.06K | 64.99K | 139.76K | 364.86K |
| SG&A % of Revenue | - | 37.22% | 40.86% | 41.32% | 57.17% | 57.17% | 38.66% | 35.35% | 32.69% | 40.75% | 44.16% | 42.08% | 41.76% | 45.24% | 43.81% | 40.67% | 35.75% | 35.3% | 26.57% | 27.73% | 30.26% | 33.96% | 40.96% | 35.3% | 35.85% | 75.79% | 40% | 100% | 100% | 166.67% |
| Research & Development | 54.49M | 57.43M | 54.08M | 49.64M | 43.98M | 43.98M | 17.51M | 15.8M | 5.9M | 3.95M | 3.56M | 2.77M | 2.43M | 2.69M | 2.75M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 17.81% | 15.99% | 14.84% | 15.23% | 15.23% | 18.2% | 18.92% | 13.54% | 19.11% | 21.75% | 21.07% | 18.76% | 21.83% | 20.33% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 44.64M | 45.55M | 44.95M | 2 | 2 | 1 | 2 | 1 | 1 | 2 | 1 | 2 | 1 | -405.97K | 4.27M | 1.69M | 1.1M | 91.35K | 37.4K | 27.55K | 322.8K | 338.76K | 303.44K | 215.8K | 255.97K | 67.52K | 0 | 0 | 1 |
| Operating Income | -5.44M | -1.73M | -1.45M | -3.91M | -7.12M | -7.12M | 7.46M | 5.57M | 3.34M | 1.1M | 339.97K | 533.58K | 828.87K | -191.35K | 1.04M | -126.61K | 2.84M | 2.58M | 5.06M | 3.32M | 1.73M | 782.52K | 274.53K | 515.21K | 383.96K | -531.25K | 67.52K | 0 | -69.88K | -218.91K |
| Operating Margin % | -1.99% | -0.54% | -0.43% | -1.17% | -2.46% | -2.46% | 7.75% | 6.67% | 7.65% | 5.34% | 2.08% | 4.06% | 6.39% | -1.55% | 7.66% | -1.03% | 23.93% | 26.93% | 41.72% | 42.94% | 40.45% | 27.88% | 14.34% | 22.82% | 22.85% | -26.86% | 10% | - | -50% | -100% |
| Operating Income Growth % | - | -19.22% | 62.82% | 45.09% | 0% | -195.37% | 33.84% | 66.98% | 202.31% | 224.81% | -36.29% | -35.63% | 533.18% | -118.46% | 918.87% | -104.46% | 10.07% | -48.99% | 52.54% | 91.3% | 121.58% | 185.03% | -46.71% | 34.18% | 172.28% | -886.86% | - | 100% | 68.08% | - |
| EBITDA | 50.02M | 59.64M | 60.3M | 55.9M | 43.55M | 43.55M | 16.62M | 10.7M | 6.12M | 3.11M | 2.19M | 2.39M | 2.63M | 1.94M | 3.11M | 3.21M | 4.17M | 3.68M | 5.67M | 3.82M | 2.15M | 1.11M | 613.29K | 818.65K | 599.76K | -275.28K | 135.03K | 0 | -69.88K | -218.91K |
| EBITDA Margin % | 18.3% | 18.49% | 17.83% | 16.71% | 15.08% | 15.08% | 17.28% | 12.81% | 14.04% | 15.03% | 13.36% | 18.19% | 20.29% | 15.76% | 23% | 26.2% | 35.17% | 38.46% | 46.72% | 49.49% | 50.15% | 39.38% | 32.04% | 36.25% | 35.69% | -13.92% | 20% | - | -50% | -100% |
| EBITDA Growth % | -17.83% | -1.1% | 7.88% | 28.35% | 0% | 161.98% | 55.34% | 74.73% | 97.17% | 41.99% | -8.49% | -9.11% | 35.61% | -37.69% | -3% | -23.11% | 13.26% | -34.96% | 48.21% | 77.86% | 94.45% | 80.23% | -25.09% | 36.49% | 317.88% | -303.87% | - | 100% | 68.08% | - |
| D&A (Non-Cash Add-back) | 55.46M | 61.37M | 61.75M | 59.81M | 50.67M | 50.67M | 9.16M | 5.13M | 2.79M | 2M | 1.85M | 1.86M | 1.8M | 2.13M | 2.08M | 3.34M | 1.33M | 1.1M | 606.19K | 505.96K | 415.46K | 322.8K | 338.75K | 303.44K | 215.8K | 255.97K | 67.52K | 0 | 0 | 0 |
| EBIT | -6.97M | -2.85M | -3.88M | -33.37M | -129.42M | -129.42M | 5.57M | 3.25M | 3.19M | 992.11K | 303.11K | 524.66K | 906.93K | -191.35K | 807.28K | -4.07M | 2.84M | 2.58M | 5.06M | 3.32M | 1.73M | 782.52K | 274.53K | 515.21K | 383.96K | -531.25K | 67.52K | 0 | -69.88K | -218.91K |
| Net Interest Income | -2.9M | -5.47M | -9.08M | -8.91M | -4.97M | -4.97M | -1.81M | -1.04M | -186.45K | -76.05K | -81.98K | -22.79K | 25.13K | 25.57K | 17.74K | 27.23K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 545.1K | 329.71K | 34.19K | 54.31K | 15.45K | 15.45K | 38.93K | 10.48K | 1.19K | 630 | 2.08K | 14.49K | 25.13K | 25.57K | 17.74K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 3.45M | 5.8M | 9.11M | 8.96M | 4.99M | 4.99M | 1.85M | 1.05M | 187.64K | 76.68K | 84.06K | 37.28K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -4.98M | -6.91M | -11.54M | -38.43M | -127.29M | -127.29M | -3.74M | -3.38M | -336.03K | -188.82K | -120.93K | -46.21K | 78.06K | -4.4M | -229.52K | -3.95M | 0 | 869.21K | -494.04K | -660.86K | -387.92K | 0 | -130 | -9.11K | 0 | -224.15K | -67.52K | 0 | 69.88K | 218.91K |
| Pretax Income | -10.42M | -8.64M | -12.99M | -42.34M | -134.41M | -134.41M | 3.72M | 2.19M | 3M | 915.43K | 219.04K | 487.37K | 906.93K | -4.59M | 807.28K | -4.07M | 2.84M | 3.45M | 4.57M | 2.66M | 1.35M | 782.52K | 274.4K | 506.1K | 383.96K | -755.39K | 0 | 0 | 0 | 0 |
| Pretax Margin % | -3.81% | -2.68% | -3.84% | -12.66% | -46.53% | -46.53% | 3.86% | 2.62% | 6.88% | 4.43% | 1.34% | 3.71% | 7% | -37.31% | 5.97% | -33.27% | 23.93% | 36.01% | 37.65% | 34.38% | 31.4% | 27.88% | 14.34% | 22.41% | 22.85% | -38.19% | - | - | - | - |
| Income Tax | -2.37M | -1.82M | -1.15M | -3.88M | 8.23M | 8.23M | 857.92K | 1.02M | 1.14M | 300.16K | 130.59K | 283.65K | 216.09K | -472.12K | 399.27K | -193.45K | 329.06K | 1.3M | 1.7M | 948.8K | 441.57K | 242.14K | 99.95K | -141.06K | -50.74K | -31.76K | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 22.77% | 21.02% | 8.84% | 9.17% | -6.12% | -6.12% | 23.08% | 46.55% | 37.86% | 32.79% | 59.62% | 58.2% | 23.83% | 10.28% | 49.46% | 4.75% | 11.58% | 37.73% | 37.32% | 35.72% | 32.81% | 30.94% | 36.42% | -27.87% | -13.21% | 4.2% | - | - | - | - |
| Net Income | -8.05M | -6.83M | -11.84M | -38.45M | -142.64M | -142.64M | 2.86M | 1.17M | 1.87M | 615.27K | 88.45K | 203.72K | 690.84K | -4.12M | 408.01K | -3.88M | 2.51M | 2.15M | 2.86M | 1.71M | 904.38K | 540.37K | 174.45K | 647.16K | 434.7K | -723.64K | 67.52K | -129.98K | -209.64K | -291.88K |
| Net Margin % | -2.94% | -2.12% | -3.5% | -11.49% | -49.38% | -49.38% | 2.97% | 1.4% | 4.28% | 2.98% | 0.54% | 1.55% | 5.33% | -33.47% | 3.02% | -31.69% | 21.16% | 22.42% | 23.6% | 22.1% | 21.1% | 19.25% | 9.11% | 28.66% | 25.86% | -36.58% | 10% | -200% | -150% | -133.33% |
| Net Income Growth % | 16.74% | 42.36% | 69.2% | 73.04% | 0% | -5089.32% | 144% | -37.19% | 203.2% | 595.63% | -56.58% | -70.51% | 116.77% | -1109.73% | 110.51% | -254.53% | 16.92% | -24.94% | 67.63% | 88.78% | 67.36% | 209.75% | -73.04% | 48.87% | 160.07% | -1171.82% | 151.94% | 38% | 28.18% | - |
| Net Income (Continuing) | -8.05M | -6.83M | -11.84M | -38.45M | -142.64M | -142.64M | 2.86M | 1.17M | 1.87M | 615.27K | 88.45K | 203.72K | 690.84K | -4.12M | 408.01K | -3.88M | 2.51M | 2.15M | 2.86M | 1.71M | 904.38K | 540.37K | 174.45K | 647.16K | 434.7K | -723.64K | 67.52K | -129.98K | -209.64K | -291.88K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.24 | -0.21 | -0.35 | -1.17 | -4.45 | 0.03 | 0.37 | 0.20 | 0.42 | 0.16 | 0.03 | 0.06 | 0.18 | -1.03 | 0.10 | -0.87 | 0.59 | 0.57 | 0.70 | 0.42 | 0.28 | 0.28 | 0.05 | 0.16 | 0.11 | -0.18 | 0.05 | -0.18 | -0.20 | -0.41 |
| EPS Growth % | 16.02% | 40.54% | 69.87% | 73.71% | -17041.47% | -92.99% | 87.4% | -52.69% | 161.73% | 479.49% | -50.52% | -69.17% | 117.74% | -1145.66% | 111.34% | -246.25% | 4.47% | -18.64% | 66.39% | 49.45% | 0% | 435.43% | -67.19% | 45.45% | 161.11% | -480.55% | 126.28% | 10% | 51.22% | - |
| EPS (Basic) | - | -0.21 | -0.35 | -1.17 | -4.45 | 0.03 | 0.38 | 0.21 | 0.46 | 0.18 | 0.03 | 0.06 | 0.18 | -1.03 | 0.10 | -0.88 | 0.61 | 0.60 | 0.70 | 0.49 | 0.28 | 0.28 | 0.05 | 0.16 | 0.11 | -0.18 | 0.05 | -0.18 | -0.20 | -0.41 |
| Diluted Shares Outstanding | 33.15M | 33.5M | 33.25M | 33.12M | 31.48M | 29.18M | 10.37M | 7.72M | 5.82M | 4.94M | 4.64M | 4.38M | 4.12M | 4.18M | 4.25M | 4.32M | 4.32M | 4.37M | 4.13M | 4.09M | 3.9M | 3.9M | 3.87M | 3.87M | 3.87M | 4.01M | 4.01M | 714.28K | 1.07M | 714.28K |
| Basic Shares Outstanding | 33.15M | 33.5M | 33.25M | 33.12M | 31.48M | 28.94M | 10.2M | 7.28M | 5.38M | 4.65M | 4.64M | 4.38M | 4.12M | 4.18M | 4.23M | 4.3M | 4.21M | 4.15M | 4.03M | 3.96M | 3.89M | 3.89M | 3.87M | 3.87M | 3.87M | 4.01M | 4.01M | 714.28K | 1.07M | 714.28K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 33.18% | 45.04% | 128.06% | 31.06% | - | - | - | - | - | - |
Accelerating Revenue Contraction
As indicated by the most recent quarterly financial data, Sangoma's revenue has experienced a significant downturn, plummeting to $51.0M in 2026Q3, which represents a stark 38.3% year-over-year decline and suggests that the company's transition to cloud-based services is failing to offset the rapid erosion of legacy hardware sales.
The sharp deceleration in top-line performance implies that the company's core product offerings may be losing relevance in an increasingly cloud-native market. Investors should monitor whether this trend reflects a structural loss of market share or merely a temporary delay in enterprise hardware refresh cycles.
Despite the broader revenue contraction, Sangoma has maintained a relatively robust gross margin profile, with 2026Q3 figures showing a 71.3% margin, suggesting that the company's underlying software and service mix retains significant pricing power even as total volume continues to diminish across its primary business segments.
The ability to sustain high gross margins during a period of revenue decline indicates that the company's service-oriented business model is structurally sound at the unit level. However, this margin strength appears insufficient to cover the fixed operating costs, which warrants further investigation into the company's long-term scalability.
Based on the reported income statements, Sangoma's operating leverage remains constrained, as evidenced by the 2026Q3 operating margin of -4.1%, which highlights the difficulty of scaling the business while maintaining the necessary R&D and SG&A investments required to support the complex Asterisk and FreePBX ecosystems.
The persistent negative operating income suggests that the company has not yet achieved the necessary economies of scale to reach profitability. This may indicate that the current cost structure is misaligned with the company's reduced revenue base, necessitating a potential re-evaluation of its operational efficiency.
According to the provided financial statements, Sangoma's net income has remained consistently negative, with a 2026Q3 net loss of $2.3M, suggesting that the company's path to GAAP profitability is currently obstructed by high operating expenses and the ongoing costs associated with its multi-product organizational structure.
The lack of consistent net income, combined with the recent volatility in EPS, raises questions regarding the quality of earnings and the sustainability of the current business model. Investors should be cautious of the potential for continued dilution if the company is forced to rely on external financing to bridge its operational funding gaps.
A critical assessment of the income statement reveals that the company's reliance on legacy hardware, which is currently in decline, poses a significant risk to its future growth, as evidenced by the 38.3% revenue drop in 2026Q3 that challenges the viability of its current cloud-transition strategy.
Short-sellers may focus on the widening gap between the company's high gross margins and its inability to generate positive operating cash flow. This discrepancy suggests that the company's strategic pivot may be taking longer than anticipated, potentially leading to further margin compression if competitive pressures in the UCaaS space intensify.
Quick answers to the most common questions about buying SANG stock.
For fiscal year 2025, Sangoma Technologies Corporation (SANG) reported total revenue of $322.5M. This represents a 147207.3% increase compared to $0.2M in 1997.
Sangoma Technologies Corporation (SANG) reported a net loss of $6.8M for the fiscal year ending 2025.
Sangoma Technologies Corporation (SANG) reported an operating income of $-1.7M, resulting in an operating profit margin of -0.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Sangoma Technologies Corporation (SANG) generated $220.4M in gross profit for the year, representing a gross profit margin of 68.3%. This demonstrates the company's core pricing power and production efficiency.