Sangoma (SANG): Customer Wins from Legacy Vendors, but Financials Demand Discipline

Sangoma Technologies builds and sells voice and data connectivity products that anchor enterprise communications stacks; it monetizes through hardware and software sales, recurring support and maintenance, and upgrades for customers replacing legacy systems. Recent management commentary positions Sangoma as a direct beneficiary of displacement in the legacy PBX/UC market, while the company’s public financials require active investor scrutiny before sizing a position. For a focused view of Sangoma’s customer relationships and what they imply for revenue growth, visit Null Exposure.

Business snapshot: platform economics, revenue base and where gains would show up

Sangoma is a B2B communications infrastructure vendor whose economic model mixes one-time product revenue with annuity-style support and software revenues. That mix creates asymmetric upside from share capture — new installations generate initial hardware revenue and, importantly, recurring maintenance and license streams that compound over time. The last twelve months show $219.7m in revenue and $155.1m in gross profit, but profitability remains constrained with a negative net margin and diluted EPS of -$0.17. Market capitalization (~$150.8m) and valuation multiples (EV/Revenue ~0.80; EV/EBITDA ~4.4) reflect a market pricing that already discounts near-term margin recovery.

Operationally, Sangoma’s posture is that of a mid-market infrastructure supplier: contracting is B2B, often multi-year for support, and the product set is critical to customer communications. Concentration signals are mixed — insider ownership is meaningful (~27%) and institutions hold ~33% of the float — which can stabilize strategy execution but also concentrates voting control. Sangoma’s maturity is evident in scale and product breadth, yet growth must come from replacing entrenched vendors and expanding recurring revenue.

What management said on customer displacement — two named targets

Management explicitly named two legacy vendors as sources of new customers in its remarks.

• Mitel — Sangoma said it is taking share from Mitel as part of recent wins and transitions, signaling competitive displacement in the enterprise telephony market. According to Sangoma’s 2025 Q4 earnings call, management noted that they are “capturing share from Avaya and Mitel.” (Sangoma 2025 Q4 earnings call, first reported March 7, 2026.)

• Avaya (AVYA) — Management identified Avaya similarly as a direct source of displaced customers, which implies Sangoma’s go-to-market can convert migrations away from Avaya’s legacy systems into revenue and services for Sangoma. According to the same 2025 Q4 earnings call, management confirmed they are “capturing share from Avaya and Mitel,” explicitly naming Avaya as a source of wins (Sangoma 2025 Q4 earnings call, first reported March 7, 2026).

Both calls point to the same operational theme: Sangoma is positioned to harvest replacement cycles in legacy unified communications platforms. The direct naming of legacy vendors is meaningful because these vendors represent a large installed base of customers who require migration paths, support and interoperability — all areas where Sangoma sells product and services.

How to read these signal(s) as an investor

These customer mentions are qualitative but directional: when management says they are “capturing share,” it indicates pipeline conversion and competitive wins rather than instant materiality to top-line results. Investors should evaluate three practical implications:

• Revenue conversion timeline: displacement wins usually convert to recognized revenue across a multi-quarter cycle — initial hardware deals flow quickly, but recurring support and software revenue accrues over time.
• Margin profile: product-heavy wins can create short-term revenue bumps but mixed margin outcomes until recurring software/support revenue scales; Sangoma’s current operating margin (-3.34% TTM) and negative EPS require attention to margin recovery dynamics.
• Competitive durability: successfully converting Avaya and Mitel customers implies Sangoma’s product-set and migration approach are competitive in the mid-market; sustained win rates would reduce acquisition cost over time and lift lifetime value.

For investors wanting a systematic read on Sangoma’s customer traction and risk-reward, see more detailed coverage at Null Exposure.

Constraints and company-level signals that shape the opportunity

No explicit contractual constraints were disclosed in the customer commentary. Company-level signals that matter to deal economics and durability include:

• Contracting posture: Sangoma operates through B2B contracts that combine one-time and recurring elements; stability of recurring revenue will determine valuation multiple expansion.
• Concentration: Insider ownership (~27%) and institutional holdings (~33%) indicate a governance profile that can accelerate strategic continuity but also limit shareholder activism.
• Criticality: Products occupy a mission-critical layer of customer communications, which increases switch costs and the revenue defensibility of support contracts once customers migrate.
• Maturity: The company has established scale (>$200m revenue TTM) but reported negative operating margins, signaling that Sangoma is in a transition phase where growth must translate into profitable scale.

These signals are company-level and should inform how investors model conversion rates and margin expansion when assessing the value of customer wins.

Key risks and what to watch next

• Profitability risk: Sangoma’s EPS is negative and operating margin is below breakeven; conversion of share-capture into sustained margin improvement is not guaranteed.
• Revenue growth trend: Quarterly revenue growth was down ~13% YOY in the last reported quarter, so wins against legacy vendors need to offset broader softness.
• Execution cadence: Customer migrations require project delivery, interoperability, and support scaling; execution missteps translate into delayed revenue and margin pressure.

Watch for quarterly revenue cadence tied to migration programs, changes in recurring revenue mix, and any quantification from management of how many customers or ARR came from Avaya/Mitel conversions.

Bottom line — position, process, and next steps

Sangoma’s explicit callout of Avaya and Mitel as sources of new customers is a strategic positive: it validates Sangoma’s competitive positioning in legacy replacement cycles. However, investors must balance that topline opportunity with current margin shortfalls and a revenue trend that requires reacceleration. For analysts and operators, the right approach is to track the cadence of migration-based bookings, the share of recurring revenue, and margin recovery milestones over the next two quarters.

For deeper diligence and ongoing tracking of Sangoma’s customer relationships and market signals, visit Null Exposure. If you want tailored alerts or a focused brief on Sangoma’s competitive wins, start with the homepage at Null Exposure and request the Sangoma brief.