Sangoma Technologies Corp Q3 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Gavin Fairweather - Cormark - Analyst : Congrats on the quarter. I wanted to start out with the output of Project Diamond, maybe from a high level. I mean, there's certainly been a lot of sales and partner transformation that's been underway here, and you've also refocused on the core platforms as well. So really encouraging to hear the sales KPIs that Jeremy was bringing out there in the prepared remarks. So I guess I'm curious, do you think that Sangoma has fully hit its stride here under the new program? Or do you suspect that there's further gains in sales momentum that you can achieve as the team and the new structure gel?

Question: Gavin Fairweather - Cormark - Analyst : And then maybe just specifically on the partner program, you obviously redesigned your partner program as part of the transformation, and there's also been some disruption in the on-prem channel as well of late. So curious for your perspective on how many partners you're adding, what kind of level of partner engagement that you're seeing from the existing crop. Any color would be helpful.

Question: Gavin Fairweather - Cormark - Analyst : And then lastly, for me, maybe you can just help us with thinking and framing the opportunity for the on-prem business. Obviously, there's been a lot of news there recently. Curious how you size up that opportunity and who you're bumping into now in terms of the competition for the prem business in the mid-market.

Question: David Kwan - TD Securities - Analyst : I guess maybe tagging on to the last question, talking about capital allocation. Given how optimistic you guys are in terms of the outlook and where the stock is trading, you talked about the NCIB. Would you consider an SIB?

Question: David Kwan - TD Securities - Analyst : Thanks, Larry. Charles, you had an opinion?

Question: David Kwan - TD Securities - Analyst : It definitely helps us better understand how you guys are looking at capital allocation. I guess on the margin front, so your guidance is for roughly about 17% margins on the year. So I think that's roughly in line with where the consensus is. Like, how should we be looking at it? I know you're not going to be giving guidance for 2026, but just trying to understand how to juggle some of the various aspects of you focusing on investing in organic growth. Obviously, we want to try to get the services revenue, in particular, starting to grow again. But then you've also got the cost savings coming out of the ERP, which should obviously help boost margins. So like, how should we be looking at the margins looking out over the next year?

Question: David Kwan - TD Securities - Analyst : And just one last question for me. So you guys, I guess, put VoIP Supply up for sale. Are there other parts of your business that you're looking at selling?

Question: Robert Young - Canaccord Genuity - Analyst : Maybe just a couple of channel-related questions. Given all of this legacy player disengagement, I think you're suggesting that there are a lot of channel players looking for a place to go. So is that changing any of the dynamics, the power dynamic in the channel? I know this is a very large, fragmented channel, but is it changing in any way to your benefit?

Question: Robert Young - Canaccord Genuity - Analyst : That's maybe just to dig deeper on that last point. It seems to me, and I may be wrong, you can correct me if I am, but it seems to me that these disengagements are faster than you would normally see. I think the glide path to disengagement or end of life, you give support for years. Sometimes these things seem to be happening in months. And so because you've got a lot of hybrid environments out there and you're supporting a lot of different scenarios, I mean, maybe just digging deeper on that, that puts you in a pretty good position, I imagine, to pull the on-prem and then grow with them. Maybe you can just dig a little deeper there. Am I pulling on a good thread there? Or is that misguided?

Question: Robert Young - Canaccord Genuity - Analyst : Just the last question. It was nice to hear the margin ranges just a couple of minutes ago. And so this sounds like an opportunity to potentially maybe get better margins out of some of these customers and channel partners that are potential customers and potential channel partners that don't have other places to go. Is there potentially upside in margins from that? And then I'll just pass the line.