Sangoma Technologies Corporation (SANG): PESTLE Analysis [Nov-2025 Updated]

You're trying to gauge Sangoma Technologies Corporation's (SANG) true trajectory amidst a volatile 2025 market. Forget the fluff; the real story is how new US data privacy laws and the rapid integration of Generative AI are directly shaping their Unified Communications as a Service (UCaaS) future. We see a clear path to an expected Annual Recurring Revenue (ARR) growth projected to be around 12% for the fiscal year, but that hinges on successfully navigating the intense competitive pressure from giants like Microsoft Teams and managing the defintely real risk of supply chain tariffs. This PESTLE breakdown gives you the precise, actionable map you need to understand where Sangoma is winning and where the near-term threats lie.

Sangoma Technologies Corporation (SANG) - PESTLE Analysis: Political factors

Increased scrutiny on cross-border data flow regulations (e.g., US-EU, US-Canada)

The regulatory environment for cross-border data flow has become a significant operational risk, especially for a Communications-as-a-Service (CaaS) provider like Sangoma Technologies Corporation that operates across North America and globally. You have to navigate a complex, fragmented legal landscape that directly impacts how customer data is processed and stored.

In the US, the Department of Justice's Final Rules on preventing access to bulk sensitive personal data by 'countries of concern' (like China and Russia) became effective on April 8, 2025. While this primarily targets data brokerage and genomic data, it sets a precedent for increased federal scrutiny on data transfers. Meanwhile, in Europe, the General Data Protection Regulation (GDPR) continues to impose strict requirements, which Sangoma addresses through its Data Processing Agreement (DPA), signed in October 2024, by referencing the EU-U.S. Data Privacy Framework and Standard Contractual Clauses (SCCs).

The biggest near-term compliance headache is in Canada. New provincial rules, particularly in Quebec, are creating a de facto data localization pressure, forcing companies to consider storing and processing Canadian data locally to avoid compliance risk. This directly challenges the economic efficiency of a centralized cloud architecture, forcing a potential need for redundant local infrastructure.

• US Final Rules: Effective April 8, 2025, regulating data flow to 'countries of concern.'
• EU Compliance: Managed via the EU-U.S. Data Privacy Framework and SCCs.
• Canadian Risk: Provincial regulations are pushing for costly data localization.

Government contracts and procurement policies favoring US-based cloud providers

The trend in US federal procurement for Fiscal Year 2025 is a clear push for domestic sourcing and streamlined IT acquisition, which creates both a risk and an opportunity for Sangoma. The General Services Administration's (GSA) 'OneGov' Strategy and new White House AI policies are emphasizing 'American-Made Solutions.' This environment favors US-based cloud providers who can demonstrate a secure, domestic supply chain for their software and services.

While Sangoma is a Canadian-headquartered company (TSX: STC), its significant US operations and Nasdaq listing (Nasdaq: SANG) allow it to compete for these contracts, especially in the small-to-mid-market public sector where its hybrid Communications-as-a-Service (CaaS) model is a strong fit. To be fair, the company's customer base is highly diversified; no single customer accounted for more than 5% of its revenue for Fiscal 2025. This means they aren't reliant on a single, massive government contract, but they must still ensure their security and compliance frameworks (like CMMC Level 2 certification for DoD-related work) are up to the 2025 standards.

Telecommunications deregulation and licensing stability in key operating markets

The regulatory stability in Sangoma's core operating markets, primarily the US and Canada, is generally high, but Canada is currently in a state of regulatory flux that directly impacts competition. The Canadian Radio-television and Telecommunications Commission (CRTC) made a significant move in June 2025, finalizing a policy that requires Incumbent Local Exchange Carriers (ILECs) like Bell Canada and TELUS Communications Inc. to provide competitors with aggregated wholesale access to their fiber-to-the-premises (FTTP) networks.

This decision is meant to spur competition, with more than a dozen providers already using the access at cost-based interim rates since February 2025. For Sangoma, this wholesale access could lower the cost of network backbone services, which is key for its UCaaS (Unified Communications as a Service) and CCaaS (Contact Center as a Service) offerings. Still, the final wholesale rates are still outstanding, and ongoing legal and political challenges create 'significant uncertainty' about the long-term competitive landscape. The regulatory climate is pro-consumer, which means price pressure remains a constant.

Trade tensions potentially impacting hardware supply chain costs and tariffs

The renewed trade escalation between the US and China in 2025 presents a palpable cost risk for Sangoma's product segment. While the company has successfully shifted its model-with Service/Software revenue making up 82% of its total Fiscal 2025 revenue of $236.7 million-the remaining 18% is hardware product revenue (IP phones, VoIP gateways, etc.) that is exposed to tariffs.

The US government has reinstated and expanded tariffs, with telecom hardware imports from China still subject to existing tariffs ranging from 20% to 245%, despite some exemptions from a new 125% tariff. This translates to higher procurement costs and supply chain friction. Here's the quick math on the exposure:

To be fair, Sangoma is actively mitigating this risk. The company completed the sale of its hardware distribution subsidiary, VoIP Supply LLC, for $4.5 million on June 30, 2025, which further streamlines operations and increases focus on the less-tariff-exposed software and services business. This strategic divestiture defintely reduces their future vulnerability to hardware-specific trade volatility.

Sangoma Technologies Corporation (SANG) - PESTLE Analysis: Economic factors

Enterprise IT spending outlook remains cautious due to interest rate uncertainty.

The economic environment in fiscal year 2025 (FY2025) was characterized by persistent interest rate uncertainty, which translated into a palpable caution in enterprise IT spending. While the global IT spending forecast was robust, projected to total $5.43 trillion in 2025, the reality for many businesses was an 'uncertainty pause' on net-new spending, especially for large capital outlays.

For Sangoma Technologies Corporation, this translated into a total revenue for FY2025 of $236.7 million, a decline of 4.3% from the prior fiscal year, squarely within the guided range of $235 million to $238 million. This decline was largely driven by a deemphasis on lower-margin product revenue, but it also reflects the broader macroeconomic headwind impacting capital expenditure (CapEx) across the industry. This cautious spending environment has led to longer sales and implementation cycles for larger enterprise opportunities.

Stronger US dollar impacts revenue translation from international operations.

As a Canadian-domiciled company with significant international operations, Sangoma is exposed to foreign exchange fluctuations, particularly the strength of the US dollar against other currencies. The appreciation of the US dollar means that revenue generated in foreign currencies translates into fewer US dollars upon consolidation, creating a headwind on reported revenue figures. This is a constant factor you must account for when assessing global tech companies.

The financial statements for FY2025 reflect this pressure, showing an Unrealized foreign exchange loss of $2.908 million. This loss represents the non-cash impact of currency movements on assets and liabilities held in foreign denominations, a direct economic risk that requires active treasury management to mitigate. This is a clear example of how macro-currency trends hit the bottom line.

Inflationary pressure on operating expenses, particularly labor and energy costs.

Despite the general inflationary environment that has driven up labor and energy costs across the board, Sangoma demonstrated disciplined expense management in FY2025. The company successfully reduced its total Operating expenses to $163.0 million, a decrease of 6% compared to Fiscal 2024. This reduction was a key factor in improving the net loss for the year.

Here's the quick math on key expense categories for FY2025:

• Sales and Marketing expenses: $50.974 million
• Research and Development expenses: $42.149 million
• General and Administrative expenses: $32.768 million

The company's focus on 'cost savings and operational efficiencies' helped offset the underlying inflationary pressures, resulting in a narrowed Net Loss of $5.0 million (or $0.15 loss per share fully diluted) in FY2025, a significant improvement from the $8.7 million loss in FY2024.

Expected 2025 Annual Recurring Revenue (ARR) growth projected to be around 12%.

While the total reported revenue for FY2025 was down, the core of Sangoma's valuation lies in its recurring revenue base. The company's strategic pivot focuses on high-margin, software-led services, which is where the true growth potential resides. The Services/Product revenue mix for FY2025 was 82% Services and 18% Product. By the end of FY2025, over 90% of the business was software and services-led recurring revenue.

The projected 12% growth rate is a forward-looking target for the core platform's Annual Recurring Revenue (ARR), reflecting the anticipated organic growth from new logo acquisition and expansion within the existing customer base, excluding non-core product lines. This is the growth engine. This focus is supported by an industry-leading churn rate of less than 1% for fiscal 2025, which provides a highly stable foundation for future ARR expansion.

Shift from Capital Expenditure (CapEx) to Operating Expenditure (OpEx) models favors UCaaS adoption.

The broader economic trend of businesses moving away from large, upfront CapEx investments in on-premises hardware and toward flexible, subscription-based Operating Expenditure (OpEx) models is a major tailwind for Sangoma. This shift directly favors the adoption of Unified Communications as a Service (UCaaS), Contact Center as a Service (CCaaS), and Communications Platform as a Service (CPaaS) solutions, which are the company's primary offerings.

The company's successful transformation has positioned it to capitalize on this trend, with recurring revenue now representing more than 90% of its total business. This high percentage of recurring revenue insulates the company better from short-term economic shocks compared to a hardware-centric model. The strategic divestiture of its lower-margin VoIP Supply LLC business for $4.5 million in FY2025 further solidified this OpEx-focused model, allowing for a sharper focus on high-margin, sticky software services.

Here is a snapshot of the high-quality recurring revenue metrics for FY2025:

Finance: Track core platform ARR growth against the 12% target quarterly, and report on the impact of foreign exchange fluctuations on net income in the next 10-Q.

Sangoma Technologies Corporation (SANG) - PESTLE Analysis: Social factors

Sustained high demand for flexible, hybrid work communication tools

The shift to hybrid work is not a passing trend; it is the new baseline for employee expectations and corporate strategy. This sustained demand is a major tailwind for Sangoma Technologies Corporation. Globally, 83% of employees prefer a hybrid work model, and a large portion of companies, specifically 64%, now operate under this model. This preference translates directly into a need for better technology.

For Sangoma Technologies Corporation, this means a massive, non-discretionary spending pool. In the US, hybrid job postings surged to nearly a quarter (24%) of all new job postings in Q2 2025, reinforcing the need for robust, cloud-based Unified Communications as a Service (UCaaS) platforms. Simply put, if your communication platform can't handle a distributed workforce, you lose talent and productivity.

• Hybrid model preference: 83% of employees worldwide.
• Companies operating hybrid: 64% of the workforce.
• Hybrid job postings increase: Up to 24% of new jobs in Q2 2025.

Corporate focus on employee experience drives adoption of integrated UC platforms

The focus has moved from simply enabling remote work to actively improving the employee experience (EX), which is now a key driver for technology investment. Business leaders are pushing for flexible models, with 84% citing higher productivity and 62% aiming to improve talent recruitment as their main motivations. This is where an integrated platform like Sangoma Technologies Corporation's suite becomes essential.

Honest to goodness, employees are demanding better tools; 75% of them believe their company's current technology needs improvement to support hybrid work. This pressure forces companies to ditch fragmented systems for a single, unified platform that offers a consistent experience across voice, video, and messaging. Sangoma Technologies Corporation's churn rate, which was industry-leading at less than 1% for fiscal year 2025, suggests their platform is meeting this high bar for user satisfaction.

Here's the quick math: better EX equals lower churn and higher productivity, making integrated UC a clear return on investment.

Talent shortage in specialized cloud engineering increases labor competition

The demand for specialized cloud talent presents a significant operational risk, which then drives the social factor of labor competition. The talent shortage for roles like cloud engineers is acute, making them one of the top 10 most challenging IT roles to fill in 2025. This is a global problem.

Projections for 2025 show that the demand for cloud computing skills will surge by 25%, and a stark 60% of organizations are expected to face a cloud talent deficit. For Sangoma Technologies Corporation, a company whose core business is cloud-native (UCaaS, CCaaS), this shortage means higher recruitment costs and increased competition for their existing, highly skilled staff. This pressure can erode margins if not managed defintely through internal development and competitive compensation.

The Cloud Talent Deficit in 2025

Customer preference for bundled services (UCaaS plus Contact Center as a Service)

Customers, particularly mid-market enterprises, are tired of managing separate vendors for internal communication (UCaaS) and customer-facing communication (Contact Center as a Service, or CCaaS). The convergence of UCaaS and CCaaS into a single, unified platform is a major trend in 2025, and providers who offer this bundle are 'increasingly winning deals.'

Sangoma Technologies Corporation is well-positioned here because their core revenue-which includes UCaaS and CCaaS-now represents a significant portion of their business. The company has over 2.7 million UC seats across more than 100,000 customers, and their strategic focus on the mid-market is built around being that single integrator. This preference for a single vendor simplifies IT management, reduces costs, and provides a smoother customer experience by breaking down the walls between internal and external communication.

This strategic alignment with customer preference is visible in the company's financial profile for the fiscal year 2025, where recurring revenue was over 90% of total revenue of $236.7 million. That high recurring revenue percentage is a clear indicator that customers value and stick with the comprehensive service model.

Sangoma Technologies Corporation (SANG) - PESTLE Analysis: Technological factors

Rapid integration of Generative AI into Contact Center and collaboration features

The rapid adoption of Generative AI (GenAI) is no longer a future trend; it's a 2025 requirement that is fundamentally reshaping how Unified Communications as a Service (UCaaS) and Contact Center as a Service (CCaaS) platforms function. Sangoma Technologies Corporation has moved quickly, launching the Sangoma GenAI Platform in January 2025. This isn't just a marketing term; it's a direct integration into their core offering, Sangoma CX®.

This technology is focused on two clear areas: automating the front-end and assisting the agent. For automation, they are using Chatbots and Virtual Assistants powered by GoogleFlow to handle initial customer interactions. For the human agents, the new AI Assist feature provides real-time help with grammar fixes, tone adjustments, and message simplification, which is crucial for reducing response times and improving customer satisfaction. Plus, the Speech Analytics feature automatically processes audio to generate call transcriptions, summaries, and sentiment analysis, giving supervisors immediate, actionable insights. This is defintely a necessary investment.

The core challenge here is that AI features are quickly becoming table stakes across the industry, meaning Sangoma must keep innovating to maintain its competitive edge against larger, well-funded rivals.

Increased competitive pressure from Microsoft Teams and Cisco Webex integration

The competitive landscape in UCaaS is dominated by two giants, Microsoft and Cisco, which presents a significant technological pressure point for Sangoma. These companies are leveraging their massive installed bases and bundling their UCaaS solutions-Microsoft Teams and Cisco Webex-into broader enterprise software ecosystems.

Microsoft, in particular, is a force; it held a 53.0% share of total UCaaS subscriptions and a 27.5% global revenue market share in 2024. Cisco, combining its BroadWorks and Webex offerings, secured a 19.4% revenue market share in the same period. While Sangoma is recognized as a 'Niche Player' in Gartner's 2025 Magic Quadrant, focused on the mid-market and specific verticals like healthcare and retail, the market leaders are constantly expanding their feature sets and targeting the mid-sized enterprises that are Sangoma's sweet spot.

The key for Sangoma is its ability to offer a comprehensive, end-to-end solution that integrates cloud, hybrid, and on-premises deployments, which many mid-market companies still prefer, especially compared to a purely cloud-centric giant.

Continued migration of legacy Private Branch Exchange (PBX) systems to the cloud

The shift from on-premises Private Branch Exchange (PBX) systems to cloud-based solutions is a massive tailwind for Sangoma. This migration is driving the Cloud PBX market, which is projected to reach $22.62 billion in 2025, growing at a Compound Annual Growth Rate (CAGR) of 14.32%. This is a huge opportunity, but it also dictates a clear technological roadmap.

Sangoma is uniquely positioned because of its historical strength in both on-premises (via Asterisk and FreePBX) and cloud solutions. They are actively capitalizing on this trend, gaining market share in the mid-market as legacy hardware-focused vendors like Avaya and Mitel are stepping back from on-premises to focus on large enterprise cloud offerings. This creates a 'white space' for Sangoma to acquire customers who need a managed transition or a hybrid solution. The company's strategic focus has resulted in over 90% of its total revenue now stemming from software-led recurring services, a clear indicator of this successful cloud transition.

Need for 5G and high-speed fiber network compatibility for quality of service

For all cloud-based communications-voice, video, and collaboration-to work reliably, the underlying network infrastructure must be top-tier. Quality of Service (QoS) is entirely dependent on high-speed, low-latency connectivity. This makes 5G and high-speed fiber compatibility a critical technological factor.

Sangoma has proactively addressed this by integrating connectivity into its product suite, offering a fully managed 5G Wireless Broadband Internet Service. This service, which partners with major U.S. carriers like Verizon, AT&T, and T-Mobile, offers speeds that are 10 to 20 times faster than 4G/LTE, along with ultra-low latency, which is essential for high-quality video and voice streaming. They also offer managed internet options that include fiber, cable, and DSL, and operate a nationwide, PCI/HIPAA compliant network backbone.

This end-to-end approach-owning the application and the network access-is a smart move. It gives them a single point of accountability for the customer's entire communications experience, which is a major advantage over competitors who only manage the software layer.

• Offer managed 5G Wireless Broadband with speeds up to 10-20X faster than 4G/LTE.
• Operate a nationwide, managed, and compliant (PCI/HIPAA) network backbone.
• Provide diverse connectivity options: fiber, cable, DSL, and satellite.

Sangoma Technologies Corporation (SANG) - PESTLE Analysis: Legal factors

The legal landscape for Sangoma Technologies Corporation in 2025 is defined by a complex, fragmented set of US regulations, particularly around data privacy and emergency services, plus the ever-present risk of patent trolls in the Unified Communications as a Service (UCaaS) sector. The biggest near-term challenge is operationalizing compliance across a patchwork of state laws, especially given the federal regulatory pullback on net neutrality.

New state-level US data privacy laws (like CCPA expansions) requiring compliance updates.

You're operating in a US market where the lack of a federal data privacy law has created a costly, state-by-state compliance maze. In Fiscal Year 2025 alone, at least eight new state-level comprehensive privacy laws took effect, including those in Iowa, Delaware, and Nebraska. This isn't just a California Consumer Privacy Act (CCPA) problem anymore; it's a national operational burden.

For a UCaaS provider like Sangoma, which processes vast amounts of customer data-voice recordings, user locations, and contact lists-the compliance cost is material. The Information Technology and Innovation Foundation (ITIF) estimates that navigating this patchwork of state laws could impose out-of-state costs of between $98 billion and $112 billion annually on US businesses. That's a huge, non-productive expense for the entire industry. The compliance burden is defintely rising, forcing companies to implement different data rights request processes for consumers in different states.

For example, some state laws, like the Montana Consumer Data Privacy Act (MCDPA) amendments effective in October 2025, lowered the applicability threshold to include businesses processing the data of just 25,000 consumers, which drags more mid-market companies into scope. Plus, enhanced protections for biometric data-like voice biometrics-took effect in states like Colorado in July 2025, requiring clearer notice and consent before collection.

Regulatory compliance for E911/emergency services mandates in the US.

Compliance with E911 mandates is a non-negotiable legal and safety requirement for any interconnected Voice over Internet Protocol (VoIP) provider like Sangoma. The FCC continues to enforce Kari's Law and the provisions of the RAY BAUM'S Act, which are critical for public safety. These rules require Multi-Line Telephone Systems (MLTS) to:

• Enable direct 911 dialing without a prefix (e.g., dialing '9' first).
• Provide a 'dispatchable location' to the Public Safety Answering Point (PSAP).
• Send an on-site notification to a central location when a 911 call is placed.

The challenge here is the 'dispatchable location' requirement, which demands granular location data-building, floor, and room number-for non-fixed (nomadic) users, a core feature of UCaaS softphones. Non-compliant businesses face potential FCC fines of up to $10,000 per violation, plus daily fines for every day the system is non-compliant. To cover the infrastructure and regulatory costs, many providers pass on a monthly E911 fee, which for some competitors is around $1.50 per line, per month. Sangoma must continuously invest in its location-detection technology to mitigate this risk and ensure customer safety.

Net neutrality debates potentially affecting network prioritization for voice/video traffic.

The legal status of net neutrality in the US underwent a significant shift in 2025, directly impacting UCaaS quality of service. In January 2025, a federal appeals court struck down the Federal Communications Commission's (FCC) attempt to reinstate federal net neutrality rules by classifying broadband as a Title II telecommunications service. This effectively ended federal net neutrality regulation for the near term, meaning Internet Service Providers (ISPs) are no longer federally barred from practices like throttling or paid prioritization.

This creates a legal risk for Sangoma's core services, where voice and video quality (Quality of Service or QoS) are paramount. Without federal rules, ISPs could theoretically create 'fast lanes' for competitors willing to pay a premium, or slow down (throttle) general VoIP traffic. The legal fight has now shifted entirely to the state level:

The legal risk is that Sangoma may be forced to pay more for guaranteed service quality or risk customer churn in unregulated states due to poor call quality. This is a critical operational risk tied directly to a legal ruling.

Intellectual property and patent litigation risk in the highly competitive UCaaS space.

The UCaaS industry is a hotbed for intellectual property (IP) litigation, characterized by frequent lawsuits from Non-Practicing Entities (NPEs), often called patent trolls. In the first half of 2025, the high-tech sector, which includes UCaaS, saw 59.3% of all patent cases filed in US district courts, with NPEs filing a staggering 91% of those high-tech suits. This is just the cost of doing business in this industry.

While Sangoma's Fiscal 2025 Annual Information Form stated the company was not aware of any material legal proceedings as of September 2025, the reality is that the company is not immune. For instance, Sangoma Technologies US Inc. was named as a defendant in a patent infringement lawsuit, Lab Technology, LLC v. Sangoma Technologies US Inc., filed in the Southern District of Florida on June 16, 2025. While the specifics of the patent are not public, this case is a concrete example of the ongoing litigation risk. Legal defense costs for even non-material cases are substantial, and are generally embedded within the company's General and Administration (G&A) expenses, which totaled $37.1 million for Fiscal 2025.

The core legal action for Sangoma is to maintain its strong IP portfolio, including its role as the primary developer and sponsor of the open-source Asterisk and FreePBX projects, and to budget for the inevitable, ongoing cost of patent defense. You must plan for this as a continuous, non-discretionary operating expense.

Sangoma Technologies Corporation (SANG) - PESTLE Analysis: Environmental factors

Growing client demand for cloud providers to demonstrate clear carbon reduction strategies.

You are seeing a clear shift in the market where enterprise clients, particularly in the mid-market Sangoma Technologies Corporation targets, are now factoring environmental performance into their vendor selection. This isn't just a feel-good measure; it's a supply chain risk assessment. For Fiscal Year 2025, the context is that approximately 36% of organizations globally have defined sustainability initiatives that include tracking their carbon footprint through cloud usage, and that number is rising fast.

Sangoma's primary strategy to address this is by leveraging the massive scale and public commitments of its underlying infrastructure partners. The company is an expanded user of Amazon Web Services (AWS) for its core Cloud Unified Communications as a Service (UCaaS) and Contact Center solutions. This effectively transfers the most energy-intensive part of the service-the data center-to a provider that is committed to powering its operations with 100% renewable energy by 2025. This is a smart, capital-efficient way to meet client demand without the multi-billion-dollar investment of building green data centers yourself.

Increased focus on hardware end-of-life recycling and e-waste management.

The most significant environmental action Sangoma took in Fiscal Year 2025 directly addresses the e-waste problem. The company completed the sale of its VoIP Supply, LLC subsidiary on June 30, 2025, for a purchase price of $4.5 million. This strategic divestiture effectively concludes Sangoma's direct involvement in the VoIP hardware distribution segment, which is the most exposed part of the business to electronic waste (e-waste) and complex hardware recycling regulations.

Here's the quick math: by shifting its focus, Sangoma's revenue mix heading into Fiscal 2026 is now over 90% software-led, recurring services. This dramatically reduces its Scope 3 emissions risk-the indirect emissions from its value chain-related to manufacturing, shipping, and end-of-life disposal of physical products. The global e-waste management market is projected to grow from $75.61 billion in 2024, so exiting this segment eliminates a growing liability. That's a defintely a clear-cut de-risking move.

Energy consumption of data centers becoming a key factor in site selection and cost.

The energy profile of data centers is a critical cost and environmental factor. Globally, data center electricity consumption is expected to more than double between 2023 and 2028, with a five-year Compound Annual Growth Rate (CAGR) of 19.5%, reaching 857 Terawatt hours (TWh) in 2028. For service provider data centers, electricity is the largest ongoing expense, accounting for up to 60% of total operating spending. This is why site selection and power efficiency are paramount.

Sangoma mitigates this risk by utilizing hyperscale cloud infrastructure, specifically AWS, for its cloud-based offerings. This means Sangoma is essentially buying energy efficiency and renewable power in bulk, which is far more efficient than running smaller, proprietary data centers. The decision to use a cloud-native infrastructure allows them to benefit from the host provider's Power Usage Effectiveness (PUE) and renewable energy procurement, which is a major competitive advantage in cost and environmental footprint.

Investor and stakeholder pressure for transparent Environmental, Social, and Governance (ESG) reporting.

While Sangoma's Fiscal 2025 financial results show strong operational execution-Total Revenue of $236.7 million and Adjusted EBITDA of $41.0 million-the public disclosures remain heavily focused on financial metrics, debt reduction, and strategic acquisitions/divestitures. The lack of a readily available, comprehensive 2025 ESG or Sustainability Report is an observable gap. Investors, especially those focused on long-term value and regulatory compliance, are increasingly using ESG metrics to screen technology companies.

The opportunity here is clear: formalizing and publicizing the environmental benefits of the 2025 strategic pivot. The shift away from hardware distribution and the reliance on green cloud partners like AWS are already strong environmental moves. The next logical step is translating those actions into quantifiable Environmental, Social, and Governance (ESG) metrics, using standards like the Sustainability Accounting Standards Board (SASB) to show how the business model change reduces environmental risk and increases long-term value for shareholders.