Sangoma Technologies Corporation

Thank you for standing by. This is the conference operator. Welcome to the Sangoma Investor Conference Call. As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity for analysts to ask questions. To join the question queue, you may press star then 1 on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star then 0. I would now like to turn the conference over to Samantha Reburn, Chief Legal Officer. Please go ahead, Ms. Reburn.

Thank you, Operator. Hello, everyone, and welcome to Fingal in the third quarter of fiscal year 2026 investor call. We are recording the call and will make it available on our website for anyone who is unable to join us live. I'm here today with Charles Salameh, Fingal's Chief Executive Officer, Jeremy Webb, Chief Operating Officer, and Larry Stoff, Chief Financial Officer. Charles will provide a high-level overview of the quarter. Jeremy and Larry will take you through the operating results for the third quarter of fiscal year 2026, which ended on March 31, 2026. Following that presentation, we will open the floor for Q&A with analysts. We will discuss the press release that was distributed earlier today, together with the company's financial statements and MD&A, which are available on CDAR+, EDGAR, and our website. As a reminder, take over reports under International Financial Reporting Standards, IFRS, And during the call, we may refer to terms such as adjusted EBITDA and free cash flow, which are non-IFRS measures but defined in our MD&A. Before we start, I'd like to remind you that the statements made during the course of this call that are not purely historical are forward-looking statements regarding the company or management's intentions, estimates, plans, expectations, and strategies for the future. Because such statements deal with future events, They are subject to various risks and uncertainties, and actual results may differ materially from those projected in the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements are discussed in the accompanying MD&A, Unaudited Condensed Consolidated Interim Financial Statements, our annual information forum, and the company's annual audited financial statements, both on CR Plus, Ender, and our website. With that, I'll hand the call over to Charles.

Good afternoon, everyone, and thanks for joining us. This quarter is an important one for Sangoma, not just in terms of results, but in how we want investors to understand the business going forward. The market is shifting quickly, given the dynamics of AI. And before we get into the details of the quarter, I wanted to step back and provide a clear view of how we are seeing the business evolve due to these shifts. This quarter, we are breaking Sangoma into its core components, hardware, applications, the data networking, and the voice portfolios to better reflect where the growth is actually occurring inside the portfolio. What this view shows us is that it's a business in transition. When you look at Sangoma on a consolidated basis, you're seeing a blended view of very different businesses, some mature and under pressure and others growing and becoming increasingly strategic. That consolidated lens, while accurate from a reporting standpoint, does not fully reflect where the momentum is building or where we are investing for the future. Our data networking and voice networking segments are performing very well, going approximately 9% and 17% year over year, supported by increasing demand for trusted, intelligent communications infrastructure. At the same time, our application business has been transitioning. with growth in larger integrated contracts being somewhat outweighed by declines in more commoditized segments, which is kind of impacting our consolidated revenue profile. That divergence matters because the value in this company is not evenly distributed, and increasingly, it is being created in areas that are not always visible in the top line number. And given where we are in the year and the visibility we now have into Q4, we believe it's important to be direct. We now expect that full-year revenue to land somewhere between $204 and $205 million. This revision reflects two factors. Recent geopolitical and global trade-related disruptions are affecting certain international markets for us, and continued pricing and monetization pressure across parts of our software and UCAS markets are also affected. Importantly, there are parts of the business that we believe will drive long-term value, our infrastructure assets. that are performing and growing well, and we are seeing early signs of that shift accelerate. As we outlined in our earnings release today, in response to increasing inbound expressions of interest, the board has initiated a structured strategic process supported by a financial advisor to evaluate alternatives focused on ensuring the full value of the business is realized. This is an active board-led process and a priority at the highest levels of the organization. We believe the platform we've built, particularly our communications infrastructure, our recurring revenue base, and our AI-enabled platform strategies is increasingly relevant at scale. And this process is about aligning that strength with the right path forward. Our objective is straightforward. Continue to execute the business while the board evaluates the right path to ensure the value is realized. So for today, I'm going to anchor our discussion in three areas. First, our go-to market is evolving towards larger integrated deployments, which I've spoken about before. We are increasingly moving up market, not selling point solutions, but delivering integrated communication environments across our distributed enterprises. These are multi-product deployments that combine network, voice, security, and applications into a single managed framework. What's important here is not just the deal size, but the deal quality. These contracts are longer term, three to five years in duration, higher value, and expand generally over time. As the deal size and the complexity increase, deployments are implemented in stages, which affects the timing of when revenue is recognized across these bundles. That dynamic is impacting the short term. But these larger integrated deployments are improving customer lifetime value, reducing churn, and reinforcing our value propositions. We are building a deeper, more embedded relationship with our customers, and that is fundamentally shifting in our models. Secondly, our communication infrastructure business is emerging as a primary growth engine. This is where we're seeing the strongest and most consistent momentum. Our data and voice networking businesses are growing ahead of the rest of the portfolio, driven by increasing demand for reliable, secure, and scalable, intelligent, trusted communication infrastructures. This reflects a broader structural shift in how communications are being consumed. As automation and AI agents become embedded in these workflows, the volume and frequency of voice and data interactions increases. We think this will continue. These are not traditional user-driven calls. They are system-driven, always-on interactions that require routing, validation, and delivery across both the voice and the data network. That drives higher consumption at the infrastructure layer and is showing up in the numbers that we are seeing. We believe this is where the next phase of value creation will occur, not just in the applications, but in the networks that carry and enable those interactions. Our own global voice networks combined with our broader communications stack positions us directly in that layer. And importantly, it allows us to participate in that growth not just on a fee basis, but on a usage and consumption basis over time. This is where AI becomes a catalyst, not just a feature, and where we see Sangoma playing a central role as that demand scales across our infrastructures. Now, third, our financial models continue to generate strong cash flow and provide strategic flexibility. Our recurring revenue base, improved mix, and operating discipline translates into strong conversion from EBITDA to cash. That allows us to reinvest in growth, reduce our leverage, and maintain flexibility in how we allocate capital. In Q3, we made deliberate efforts to reposition our investments towards the growing areas of our business that I spoke about earlier. As those businesses scale, we expect operating leverage to support margin expansion over the next several years. That flexibility matters, particularly in the market where valuation does not always reflect underlying performance. Sangoma is a classic case. It allows us to continue to execute the strategy while also evaluating broader opportunities to unlock value. Taking together these three areas reflects a business that is shifting from a collection of products to a more integrated platform, from seat-based growth to infrastructure-led consumption, and from short-term revenue focus to longer-term value creation. And with that, I'll turn it over to Jeremy to walk through the operating results in more detail. Jeremy, over to you.