Does Sangoma Technologies’ (TSX:STC) Share Buyback Reflect Renewed Confidence or Cautious Optimism?

• Sangoma Technologies Corporation recently reported its financial results for the year ended June 30, 2025, with sales of US$236.69 million and a reduced net loss of US$5.01 million compared to the previous year.
• An interesting aspect is management’s completion of a share buyback, signaling confidence in the company even as guidance projects stable revenues excluding divested operations for fiscal 2026.
• We’ll explore how Sangoma’s narrowed net loss and updated guidance contribute to the broader investment narrative for the year ahead.

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What Is Sangoma Technologies' Investment Narrative?

For anyone considering Sangoma Technologies, you need to believe in the company's ability to refocus its core product and service segments after recent operational changes. While this year’s results showed revenue softening to US$236.69 million, management managed to narrow net losses and executed a meaningful share buyback, both of which may signal improving discipline and internal confidence. The guidance for fiscal 2026 pegs revenues at US$200–210 million, aligning with the current trajectory after excluding divested operations, but suggests limited near-term top-line growth. On the positive side, cost control and the buyback offer short-term support as the company transitions. However, with the revenue reset, the biggest risk shifts toward whether Sangoma can reignite sustainable growth in its core markets or if ongoing competitive pressures will keep weighing on financial performance. For now, the news both clarifies management’s priorities and reins in expectations for fast revenue recovery.

But, there’s a stark risk around execution that investors should not overlook. Despite retreating, Sangoma Technologies' shares might still be trading above their fair value and there could be some more downside. Discover how much.

Exploring Other Perspectives

Fair value estimates from three Simply Wall St Community members range from US$11.28 to US$19.81 per share, underscoring wide differences in outlook even before the latest earnings reset. With management now guiding for flatter revenues, this spread highlights how investor expectations around execution and future growth can diverge sharply. Consider exploring these viewpoints to see how your own thinking stacks up.

Explore 3 other fair value estimates on Sangoma Technologies - why the stock might be worth just CA$11.28!

Build Your Own Sangoma Technologies Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Sangoma Technologies research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free Sangoma Technologies research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Sangoma Technologies' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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