Sangoma Technologies Corporation (SANG): Business Model Canvas [Dec-2025 Updated]

You're looking to see how Sangoma Technologies Corporation is actually making money as they push hard into that high-margin, software-led world, and after two decades analyzing these plays, the numbers tell a clear story: for fiscal year 2025, they hit $236.7 million in revenue, generated a solid $32.9 million in Free Cash Flow, all while managing down their debt to $47.9 million. This Business Model Canvas breaks down exactly how their UCaaS/CCaaS focus, powered by key channel partners and their open-source roots, translates into those recurring revenue streams and that industry-leading churn below 1% you're tracking. Dive in below to see the nine blocks that define their current strategy, from their customer segments of SMBs to their cost structure.

Sangoma Technologies Corporation (SANG) - Canvas Business Model: Key Partnerships

You're looking at the backbone of Sangoma Technologies Corporation's market penetration, which, as of late 2025, is heavily reliant on its external network. Honestly, the company's strategy is clear: use partners to scale reach while focusing internal resources on core platform development. For fiscal year 2025, which ended June 30, 2025, Sangoma posted total revenue of $236.7 million, and their strategic shift means this growth is increasingly enabled by others.

The entire go-to-market approach is built around external collaboration. Sangoma Technologies utilizes a 100% channel-driven strategy for sales. This means partners are essential for delivering their UCaaS, CCaaS, CPaaS, and Trunking technologies to the market. They manage this through the Pinnacle Partner Program, which has three defined tiers: Base, Summit, and Pinnacle. To keep these partners motivated and effective, they guarantee prompt responses to all leads within 24 hours and report onboarding CSAT (Customer Satisfaction) scores of 97%. That's a concrete metric showing their commitment to partner enablement.

Here's a look at the key distribution and reseller relationships that drive global reach:

• Channel partners and distributors for global reach
• • Partnerships include Technology Services Distributors (TSDs) like Telarus, Avant, and ScanSource.
  • The program offers industry-leading commissions and strong SPIFFs (Sales Performance Incentive Funds).
  • The company supports over 100,000 customers globally.

The focus on industry-specific solutions is clearly visible through targeted alliances. For instance, the education vertical saw a specific push with the announcement of a strategic partnership with Quicklert on July 16, 2025, aimed at helping schools comply with Alyssa's Law and improve campus safety. This shows you they aren't just selling a generic platform; they are tailoring it.

The technology stack itself is reinforced by major cloud providers. Sangoma announced its expanded use of Amazon Web Services (AWS) on August 12, 2025, to deliver their Cloud-Native UCaaS and Contact Center services, ensuring flexibility and security. This is critical, especially when you consider their focus on recurring revenue, which represented more than 90% of their business post-transformation.

To further illustrate the depth of these relationships, consider the specialized vertical plays. The partnership with Sphinx Medical Technologies, announced on January 21, 2025, created a new Patient Relationship Management (PRM) system integrated with Sphinx's CallMyDoc® AI-powered IVR. This solution is engineered for 99.999% Uptime, a non-negotiable requirement in healthcare. This contrasts with their overall low customer churn rate of less than 1% for fiscal 2025, which suggests their core platform and specialized solutions are sticky.

You can't discuss Sangoma without mentioning the foundation of their technology. They are the primary developer and sponsor of the open-source Asterisk and FreePBX projects. This community involvement is a key resource, driving continuous innovation in communication technology. It's a different kind of partnership, one with the developer ecosystem itself.

To put the scale of their operations and partner reliance into perspective, here's a snapshot comparing key operational metrics to their partnership focus:

The company's commitment to the channel is further evidenced by the fact that their entire go-to-market relies on this network, which includes agents, VARs (Value Added Resellers), and TSDs. They have over 645 engineers and staff supporting this effort as of September 30, 2025. Finance should track the Q1 FY2026 revenue guidance of $200 - $210 million (excluding VoIP Supply) to see if channel momentum is accelerating growth in the second half of the year.

Sangoma Technologies Corporation (SANG) - Canvas Business Model: Key Activities

You're looking at the core actions Sangoma Technologies Corporation takes to keep the lights on and drive growth. It's a mix of deep engineering, partner management, and, critically right now, balance sheet discipline. Honestly, the focus on software-led revenue is the big theme here.

The primary technical activity is the continuous Software development for UCaaS, Cloud Contact Center as a Service (CCaaS), and Communications Platform as a Service (CPaaS) platforms. This development effort supports an enterprise-grade communications suite available for cloud, hybrid, or on-premises setups. The strategic shift to software and services-led recurring revenue is significant; this segment represented more than 90% of the business as of the end of Fiscal 2025.

A related, ongoing key activity is Integrating acquired technologies into a singular platform. This work ensures that the portfolio, which includes award-winning UCaaS, CCaaS, CPaaS, and Trunking technologies, functions as a unified offering. The company supports over 2.7 million UC seats across a base of over 100,000 customers.

The operational backbone relies heavily on Managing a global network of channel partners and distributors. This network is essential for reaching the diversified customer base. The company has been recognized for nine years running in the Gartner UCaaS Magic Quadrant.

Sangoma Technologies Corporation also dedicates resources to Maintaining and developing the open-source Asterisk and FreePBX projects, acting as the primary developer and sponsor for both. This commitment to the open-source community is a core part of their technology strategy.

Finally, the recent focus has been on Disciplined financial management and debt reduction. This is a clear, measurable activity that directly impacts the company's flexibility. Here's a quick look at the FY2025 financial results that reflect this discipline:

The debt reduction target was significantly surpassed, moving total debt to $47.9 million at the end of Fiscal 2025, down approximately 40% from the prior year. This was achieved while still investing in the core business; for instance, Research and Development expenses were $42,149 thousand for the year.

The key activities related to platform development and financial health can be broken down further:

• Platform Development Focus: UCaaS, CCaaS, and CPaaS.
• Open Source Sponsorship: Primary developer/sponsor for Asterisk and FreePBX.
• Financial Discipline Metrics: Total Debt at $47.9 million.
• Operational Efficiency: Operating Expenses for FY2025 were $163.0 million.
• Customer Reach: Over 2.7 million UC seats.

The company completed the full repayment of its Term Loan 1 during Q3 of FY2025, which helped drive the total debt down to approximately $53 million at that point, well ahead of schedule. You see the result of this disciplined approach in the final FY2025 balance sheet figures.

Sangoma Technologies Corporation (SANG) - Canvas Business Model: Key Resources

You're looking at the core assets Sangoma Technologies Corporation relies on to run its business as of late 2025. These aren't just line items; they are the foundational elements that support their entire value proposition.

Proprietary software platform for cloud, hybrid, and on-premises deployment

Sangoma Technologies Corporation maintains an enterprise-grade communications suite developed in-house. This platform is designed to be flexible, supporting deployment across cloud, hybrid, or on-premises environments. The company also offers productivity apps that integrate real-time communications features into business workflows using pre-built APIs from its CPaaS platform, APIdaze.

Intellectual property from the Asterisk and FreePBX open-source projects

A significant resource is the intellectual property derived from its role as the primary developer and sponsor of key open-source projects. This commitment underpins much of the platform's capability.

• Sangoma Technologies Corporation is the registered owner of the U.S. federally registered trademark FREEPBX, registration number 3365377.
• The FreePBX community has developed what is described as the most widely deployed open source PBX platform globally.
• The FreePBX platform has over 1 MILLION production systems worldwide, with 20,000 new systems installed monthly.
• The company is the primary developer and sponsor of the Asterisk project, the world's most widely used open source communications software.

Diversified customer base of over 100,000 businesses

The scale of deployment across various business sizes is a critical resource, providing a broad base for recurring revenue streams. The company has been a trusted communications partner for over 40 years on the market.

• Sangoma Technologies Corporation serves over 100,000 customers.
• The customer base spans more than 2.7 million UC seats.
• Recurring revenue, which includes software and services, now represents more than 90% of the total business.

Strong balance sheet with $32.9 million in Free Cash Flow for FY2025

Financial discipline has been a focus, resulting in a cleaner balance sheet as the company completed its transformation away from lower-margin resale activities. The shift has positively impacted margins, which rose from 67% to over 75% following divestitures.

For the first quarter of Fiscal 2026 (ended September 30, 2025), Free Cash Flow was $3.2 million.

Global network infrastructure and data centers

Sangoma Technologies Corporation supports its offerings with a global network infrastructure. This infrastructure underpins its managed services portfolio, which includes connectivity, network, and security solutions for its customers.

• The company offers managed services covering connectivity, network, and security.
• The enterprise-grade communications suite is available for cloud, hybrid, or on-premises setups, relying on this underlying infrastructure.

Finance: draft 13-week cash view by Friday.

Sangoma Technologies Corporation (SANG) - Canvas Business Model: Value Propositions

You're looking at the core reasons why mid-market customers choose Sangoma Technologies Corporation over the competition. It's about offering a complete, integrated platform rather than a collection of separate tools.

The core offering is Unified Communications as a Service (UCaaS) that works across deployment models: cloud, hybrid, and on-premises. Sangoma Technologies Corporation has been recognized for 10 years running in the Gartner UCaaS Magic Quadrant.

The value proposition centers on providing an integrated suite of essential communications. This includes:

• UCaaS, CCaaS, CPaaS, and Trunking technologies.
• Voice, video, security, and hardware from a single company.
• Support for over 2.7 million UC seats.
• Service to a diversified base of over 100,000 customers.

The financial structure supports this value with high-margin, recurring revenue solutions. As of the Fiscal Year 2025 results, software and services-led recurring revenue represented more than 90% of the business. This stickiness is reflected in the churn rate, which was industry-leading at less than 1% for fiscal 2025, and remained low at approximately 1% in the first quarter of Fiscal 2026.

Being a single technology partner for mid-market customers directly helps lower the Total Cost of Ownership (TCO). The goal is to replace component buying with an integrated solution. This is supported by growing customer commitment, as the average revenue per customer increased 19% year-over-year in the first quarter of Fiscal 2026. Deal sizes are substantial, with some deals closing in the $20,000 to $30,000 a month range.

Also, Sangoma Technologies Corporation backs up the platform with managed services for connectivity, network, and security.

Here are the key metrics supporting these value propositions:

The company is focused on delivering these five integrated elements-voice, video, data, security, and hardware-as a single vendor to lower the TCO for the mid-market. Finance: draft 13-week cash view by Friday.

Sangoma Technologies Corporation (SANG) - Canvas Business Model: Customer Relationships

You're looking at how Sangoma Technologies Corporation manages its relationships across its diverse client base as of late 2025. The approach is clearly segmented, moving from high-touch for the biggest contracts to automated service for the masses.

Dedicated account management for larger, multi-year Total Contract Value (TCV) deals

For the largest contracts, the focus is on driving up the deal size, which is happening quite significantly. The average deal size has moved from an initial average of $500 a month to closing deals in the $20,000 to $30,000 a month range. One deal was recently closed at $25,000 a month of MR (Monthly Recurring) revenue. This growth in average booking sizes supports the need for dedicated, high-value account oversight.

Automated self-service and support for the large base of 100,000+ customers

Sangoma Technologies Corporation supports a diversified base of over 100,000 customers, spanning over 2.7 million UC seats across more than 150 countries. To manage this scale efficiently, the operational model relies on high automation and low customer attrition. Quarterly churn remains industry-leading at less than 1%. This low churn suggests the automated self-service channels are effective for the majority of the installed base.

The relationship structure for this segment is supported by Sangoma Technologies Corporation's internal engineering capacity, with over 60 product engineers helping deliver agility and solutions.

Channel partner enablement and support via the Pinnacle Partner Program

The channel is a critical relationship layer, with Sangoma Technologies Corporation reinforcing a 100% channel commitment. The Pinnacle Partner Program structures this relationship across tiers:

• Base: The starting point for growth and development.
• Summit: A milestone for significant progress.
• Pinnacle: The peak level for top-performing partners.

The program offers tangible support metrics:

Partners also receive access to a Quoting Concierge Desk and C-Level investment in Quarterly Business Planning/Reviews.

High-touch, white-glove support for cloud solutions

For the enterprise-grade, in-house developed communications suite, which is available for cloud, hybrid, or on-premises setups, the support structure is robust. For Managed Service Provider (MSP) offerings, which include SD-WAN, Internet, VPN, 5G, and WiFi access points, Sangoma Technologies Corporation provides a dedicated 24/7 team of expert network engineers. This dedicated, always-on engineering support functions as the high-touch, white-glove service layer for mission-critical cloud and managed connectivity solutions.

The average revenue per customer increased by 19% year-over-year for the first quarter of Fiscal 2026 (ended September 30, 2025), indicating successful upselling and expansion within the existing customer relationships.

Finance: review Q2 2026 partner enablement spend against the 19% average revenue per customer growth by end of next month.

Sangoma Technologies Corporation (SANG) - Canvas Business Model: Channels

You're looking at how Sangoma Technologies Corporation moves its products and services to the market, which is a mix of direct selling and a broad partner ecosystem. Honestly, the numbers show a clear pivot toward recurring revenue, which heavily influences channel strategy.

Global network of channel partners and distributors

Sangoma Technologies Corporation supports its go-to-market with a global network of partners and distributors. The company serves a diversified base of over 100,000 customers globally. To strengthen this indirect sales motion, the company launched the Pinnacle Partner Program in November 2024. Channel marketing and enablement are key, utilizing a multichannel strategy that includes online advertising and email marketing alongside events and trainings. The company forecasted revenue in Fiscal Year 2025 to be delivered in line with expectations by its internal sales force and channel partners.

The focus on core software and services is evident in the revenue mix. For the third quarter of Fiscal 2025, service revenues accounted for 82% of total revenue. By the end of Fiscal 2025, core platform products and services revenue represented more than 90% of the business. This shift was supported by the strategic divestiture of VoIP Supply, LLC, a distributor, which completed on June 30, 2025, for a total purchase price of $4.5 million.

Direct internal sales force focused on new logo acquisition and expansion

The direct internal sales force is actively targeting new logos and expanding within the existing base. In the first quarter of Fiscal Year 2025, 42% of new bookings came from new customers, an increase from 36% the prior quarter. This team is prioritizing larger deals, specifically those with Total Contract Value (TCV) that translate to Monthly Recurring Revenue (MRR) exceeding $10,000. The success in deal size is notable; the average booking size has moved from an average of $500 a month to closing deals in the $20,000 - $30,000 a month range. The company has 645 total employees as of late 2025.

The focus on high-value customers is also reflected in the installed base metrics:

• Average revenue per customer increased 19% year-over-year (Q1 FY2026).
• There was a 6% year-over-year increase in customers generating over $10,000 in MRR.

Online presence and digital marketing for lead generation

Digital efforts support the sales teams through lead generation. The multichannel strategy explicitly includes online advertising and email marketing. The reported positive shift in new customer bookings to 42% in Q1 Fiscal Year 2025 is an indicator of successful lead generation efforts across all avenues.

Vertical solution providers for key segments like healthcare and education

Sangoma Technologies Corporation focuses its channel and direct efforts on specific industries where tailored solutions provide a better fit. Key verticals include healthcare, education, retail, hospitality, restaurants, and manufacturing. The company is focused on bundled solutions for these segments. An example of this vertical strategy is the partnership with Sphinx Medical Technologies in January 2025, aimed at healthcare communication solutions.

Finance: draft 13-week cash view by Friday.

Sangoma Technologies Corporation (SANG) - Canvas Business Model: Customer Segments

You're looking at the core of Sangoma Technologies Corporation's market focus as of late 2025. The company is clearly targeting a specific sweet spot in the market, moving beyond just components to become a full-service technology partner.

The primary target is the Small to Mid-sized Businesses (SMB) segment, extending into the mid-market enterprises. Honestly, these mid-market customers are getting more sophisticated; they don't want to manage separate vendors for voice, video, and hardware. They need a single system integrator to lower their Total Cost of Ownership (TCO) and handle emerging tech like AI and security threats. Sangoma Technologies Corporation is positioning itself as that single integrator.

The scale of their installed base is significant, supporting this broad segment reach. As of the Fiscal Year 2025 results, Sangoma Technologies Corporation is a trusted communications partner with over 2.7 million Unified Communications (UC) seats deployed across a diversified base of over 100,000 customers.

The focus on specific industries is quite deliberate, aiming for sectors where communication infrastructure is critical or undergoing transformation. Here's a breakdown of the key customer groups:

A major differentiator for Sangoma Technologies Corporation is the deployment flexibility offered to these segments. Their enterprise-grade communications suite is available for cloud, hybrid, or on-premises deployments. This is crucial because it allows them to capture share from competitors who are exiting the on-premises market, as noted in their Q3 Fiscal 2025 highlights, where revenue from core on-premises solutions increased quarter-over-quarter due to these strategic share gains.

The company's success in retaining these customers is reflected in their low churn rate. For Fiscal Year 2025, the churn rate remained industry-leading at less than 1%. This stickiness is vital when serving customers who rely on an integrated platform for essential services.

Finance: review Q1 FY2026 average revenue per customer growth against the FY2025 churn rate by Tuesday.

Sangoma Technologies Corporation (SANG) - Canvas Business Model: Cost Structure

You're looking at the hard numbers that drive Sangoma Technologies Corporation's expenses for the fiscal year ending June 30, 2025. Honestly, understanding where the money goes is key to seeing the path to profitability they've been charting.

The Cost Structure for Sangoma Technologies Corporation in FY2025 shows a clear focus on managing direct costs while continuing to invest in the future platform. The high cost of sales for services and products was a major component, totaling $74.9 million for the full fiscal year 2025.

This $\$74.9$ million in Cost of Sales includes the direct costs associated with delivering their offerings. Specifically, the cost of service sales covers things like the cost of delivery of service, third-party carrier charges, data center costs, and software licenses. That's a significant outlay, but it's directly tied to the revenue generated from their communications platform and services.

The overall spending on running the business, the Operating Expenses, for fiscal 2025 came in at $163.0 million. Management noted this figure reflected the Company's disciplined approach to cost savings and operational efficiencies, as it was down $10.9 million or 6% compared to Fiscal 2024.

Here's a breakdown of those operating expenses for FY2025, which are comprised of sales and marketing, R&D, general and administration, and amortization of intangible assets:

You can see the significant investment in Research and Development (R&D) for platform innovation continued, rising to $42.1 million in FY2025 from $\$39.5$ million the prior year. That's the money going toward making the core platform better. To be fair, the Sales and marketing expenses saw a reduction, dropping to $50.97 million from $\$57.84$ million in FY2024, which aligns with the overall cost-saving narrative.

Regarding the costs associated with maintaining cloud infrastructure and network operations, these are embedded within the Cost of Sales. The financial statements explicitly state that Cost of service sales include:

• Cost of delivery of service
• Third party carrier charges
• Data center costs
• Software licenses

The focus on a shift toward software and services-led recurring revenue, which represented more than 90% of the business by the end of FY2025, suggests these infrastructure costs are becoming more aligned with a scalable, recurring model. Finance: draft 13-week cash view by Friday.

Sangoma Technologies Corporation (SANG) - Canvas Business Model: Revenue Streams

You're looking at the core of how Sangoma Technologies Corporation brings in the cash flow, and as of late 2025, the story is clearly about the shift to subscription services. For the full fiscal year 2025, the total revenue landed at $236.7 million. This number reflects a deliberate strategic focus, which you can see clearly when you break down the sources.

Here's the quick math on how that $236.7 million was split between the two main categories:

Services revenue, which made up 82% of the total in fiscal year 2025, is the engine now. This stream is what management is banking on for stability, and honestly, it's the key to valuation multiples. The company has stated that software and services-led recurring revenue now represents more than 90% of their business overall. That high percentage tells you the quality of the revenue base is improving, even if the total top-line number dipped slightly compared to the prior year.

The recurring component is driven by subscriptions across their main offerings. You should track these closely:

• Monthly Recurring Revenue (MRR) from UCaaS (Unified Communications as a Service) subscriptions.
• MRR from CCaaS (Contact Center as a Service) subscriptions.
• MRR from CPaaS (Communications Platform as a Service) subscriptions.

Product revenue accounted for the remaining 18% of the total in FY2025. This is your non-recurring bucket, which includes things like on-premises UC platform sales and hardware. To be fair, the Q4 results showed an increase in product revenue tied to core platform products and third-party hardware sales, suggesting some cyclical or project-based demand is still present. Still, the overall strategy is to keep this segment smaller relative to the services side.

The quality of this revenue mix is supported by strong operational metrics. Gross profit for fiscal 2025 was $161.7 million, representing a gross margin of 68% of total revenue. Furthermore, the company maintained industry-leading churn at less than 1% for fiscal 2025, which is a fantastic indicator of customer retention within that recurring base. Finance: draft 13-week cash view by Friday.