Should you sell your Sangoma stock?

Paradigm Capital analyst Daniel Rosenberg lowered his target on Sangoma Technologies (Sangoma Technologies Stock Quote, Chart, News, Analysts, Financials TSX:STC) to $10.00 from $12.00 in a May 14 report, while maintaining a “Buy” rating, citing lower sector valuation multiples, increased pricing competition and a slower-than-expected growth inflection.

“Guidance was revised slightly downward due the current macro environment,” Rosenberg said. “While growth inflection will take more time, the current valuation remains attractive given the strengthening balance sheet, positive cash flow and sticky customer base.”

Sangoma reported Q3 fiscal 2026 revenue of $51.0-million, down 12.2% year-over-year and in line with consensus at $52.1-million. Excluding the VoIP Supply divestiture, revenue declined by less than 2% on a like-for-like basis. Adjusted EBITDA was $7.5-million, below consensus at $9.2-million, with margin of 14.7%.

Rosenberg said profitability was hurt by a lower-margin product mix, while longer sales cycles affected services revenue. Fiscal 2026 guidance was revised lower, with revenue now expected at $204-million to $205-million and Adjusted EBITDA margin at 15% to 16%.

He added that Sangoma’s board has launched a strategic review process after receiving inbound expressions of interest during the year.

The analyst said he lowered his valuation multiple to 7.5x EV/EBITDA from 7.75x because of broader market multiple contraction and rising competition around pricing.

Rosenberg expects Sangoma to generate Adjusted EBITDA of $32.2-million on revenue of $204.7-million in fiscal 2026, improving to $34.5-million on revenue of $205.1-million in fiscal 2027.

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