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Stewart Q1 2025 Earnings Report
Sangoma Technologies Corporation announced its first quarter fiscal 2025 results, with revenue slightly below guidance but Adjusted EBITDA at the high end of its guided range, driven by strong operating cash flow.
Key Takeaways
Sangoma Technologies Corporation reported first quarter fiscal 2025 revenue of $60.15 million, slightly below its guided range, and Adjusted EBITDA of $9.814 million, at the high end of its guidance. The company's operating cash flow increased by 55% year-over-year to $12.127 million, and it reaffirmed its fiscal 2025 guidance.
Revenue for Q1 FY2025 was $60.15 million, just below the guided range of $61.0 million to $62.0 million.
Adjusted EBITDA for Q1 FY2025 was $9.814 million, at the high end of the guided range of $9.0 million to $10.0 million.
Net cash provided by operating activities increased by 55% year-over-year to $12.127 million.
The company reaffirmed its fiscal 2025 guidance, expecting revenue between $250 million and $260 million and Adjusted EBITDA between $42 million and $46 million.
Stewart
Stewart
Forward Guidance
Sangoma re-affirmed its guidance for fiscal 2025, expecting revenue in the range of $250 million to $260 million and Adjusted EBITDA from $42 million to $46 million.
Positive Outlook
- Continued growth in sales pipeline and average deal sizes due to new go-to-market initiatives.
- Business profitability remains strong with robust growth in operating cash flow.
- Continued deleveraging of the balance sheet, providing greater capital flexibility.
- Successful self-funding of the company's transformation initiatives.
- Anticipated continuing demand and subscriber growth for Services and Products.
Challenges Ahead
- Potential delays in receipt of products from contract manufacturers.
- Risk of further material increases in manufacturing, labor, or shipping costs.
- Challenges in attracting and retaining necessary employees.
- Risks associated with the timely execution of ERP implementation within forecasted budget.
- Impact of macroeconomic conditions, including inflation, interest rates, and geopolitical instability.