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How to Buy Sangoma Technologies Corporation (STC) Shares - Investment in Sangoma Technologies Corporation (STC) Stock

31 August 2025
8 min to read
How to buy Sangoma Technologies Corporation (STC) shares – Investment in Sangoma Technologies Corporation (STC) stock

Thinking about adding a communications technology innovator to your portfolio? Sangoma Technologies Corporation represents the backbone of modern business communications with its cutting-edge UCaaS solutions. As companies worldwide embrace digital transformation, this Canadian tech player offers unique exposure to the growing unified communications market. Let's explore whether STC deserves a spot in your investment strategy.

📈 Current Market Position and Stock Analysis

As of August 31, 2025, Sangoma Technologies Corporation (STC) trades at $8.22 on the Toronto Stock Exchange. The company has demonstrated remarkable resilience despite market volatility, maintaining its position as a leading provider of essential IT communications solutions for small and mid-market businesses.

Mark Your Calendar: September 23, 2025 is the critical date every STC investor should watch. This is when the company releases its next earnings report, and historical data suggests significant price movements around these events.

Earnings Impact Analysis: Learning from History

Looking at recent earnings patterns reveals valuable insights for timing your investment:

February 2025 Q2 Report: The stock reacted with moderate volatility as the company reported revenue of approximately $238 million trailing twelve months with a net loss margin near -2.9%. The market responded cautiously to the mixed financial picture.

May 2025 Q3 Results: Following the earnings release, STC demonstrated strong capital management by exceeding its Fiscal 2025 debt reduction target, repaying $7.3 million and reducing total debt to around $53 million ahead of schedule. This positive financial discipline helped stabilize the stock price.

The pattern is clear: Strategic financial announcements tend to create more sustained positive momentum than simple earnings beats or misses. The company’s debt reduction achievements and portfolio optimization through the sale of VoIP Supply in August 2025 have been particularly well-received by investors.

🔄 Six-Month Price Journey: Riding the Volatility Wave

Sangoma’s stock has experienced significant movement over the past six months, reflecting both market conditions and company-specific developments:

  • March 2025: Trading around $7.50 amid general tech sector weakness
  • April 2025: climbed to $8.80 following positive investor presentations at the Planet MicroCap Showcase in Las Vegas
  • June 2025: Dipped to $7.20 after mixed quarterly results but found support at this level
  • July 2025: Recovered to $8.50 on cloud infrastructure expansion news with AWS
  • August 2025: Consolidated around $8.22 following strategic divestiture completion

The 20% weekly surge in late August demonstrated the stock’s capacity for rapid appreciation, though it’s important to note this followed a 49% decline over the previous three years. This volatility profile makes STC suitable for investors with higher risk tolerance.

The stock’s beta coefficient of 1.35 confirms its above-average volatility compared to the broader market. However, this also means potential for higher returns during positive market cycles.

🔮 Price Forecast: 2025-2030 Outlook

Based on current analyst consensus and company fundamentals, here’s what investors might expect:

  • 2025 Year-End Target: $9.50-$10.50 (15-28% upside)
    The upcoming September earnings and continued execution on debt reduction could drive this appreciation. Analyst consensus suggests a “Buy” rating with average price targets around $11.50, representing significant potential upside.
  • 2026 Projection: $12.00-$14.00
    As the company’s GenAI platform gains traction and cloud partnerships mature, revenue growth could accelerate toward sustainable profitability.
  • 2028 Outlook: $18.00-$22.00
    By this point, Sangoma’s market position in unified communications should be firmly established, with potential international expansion contributing to valuation growth.
  • 2030 Vision: $25.00-$30.00
    If execution continues successfully, STC could establish itself as a mid-cap leader in business communications technology.

Verdict: BUY for long-term investors comfortable with technology sector volatility. The company’s strategic positioning in UCaaS and strong recurring revenue model (82% of revenue) provide fundamental support for growth.

⚠️ Risk Assessment: Navigating the Challenges

Major Risk Factors

  • Profitability Concerns: Despite healthy gross margins of 68.63%, the company continues to operate at a net loss (-2.91% margin). This fundamental disconnect between revenue generation and bottom-line results represents the primary investment risk.
  • Competitive Pressure: The unified communications space is intensely competitive, with larger players like Cisco, Microsoft, and Zoom dominating enterprise markets. Sangoma’s focus on small and mid-market businesses provides some protection but doesn’t eliminate competitive threats.
  • Execution Risk: The company’s growth strategy depends on successful integration of new technologies (like their GenAI platform) and expansion into new markets. Any missteps in execution could negatively impact stock performance.
  • Market Volatility: With a beta of 1.35, STC shares are significantly more volatile than the broader market. This can lead to substantial short-term price swings that may test investor patience.

Positive Signals and Growth Catalysts

  • Strategic Divestiture Success: The August 2025 sale of VoIP Supply demonstrates focused portfolio management and should strengthen the balance sheet.
  • Cloud Partnership Expansion: The enhanced AWS deployment for UCaaS and Contact Center solutions positions Sangoma well for the growing cloud communications market.
  • AI Innovation Leadership: The January 2025 launch of Sangoma GenAI platform shows commitment to technological innovation in business communications.
  • Strong Recurring Revenue: With 82% of revenue classified as recurring and customer churn below 1%, the business model provides stability during economic uncertainty.
  • Debt Reduction Progress: Exceeding fiscal 2025 debt reduction targets ahead of schedule indicates strong financial discipline and management execution.

📊 Significant News Analysis: Last 6 Months Review

February 2025: Q2 Fiscal Results

The company reported trailing twelve-month revenue of $238 million with continued operations despite net losses. The market reacted neutrally as investors focused on the company’s gross margin strength (above 68%) rather than bottom-line challenges.

Trader Takeaway: Gross margin maintenance suggests pricing power and operational efficiency, even during difficult periods.

August 2025: Strategic Portfolio Simplification

Sangoma completed the sale of VoIP Supply, effective June 30, 2025. This move streamlines operations and allows greater focus on core UCaaS offerings.

Trader Insight: Portfolio optimization often precedes improved operational performance and shareholder value creation.

January 2025: GenAI Platform Launch

The introduction of artificial intelligence-powered communications technology positioned Sangoma at the forefront of industry innovation.

Investment Perspective: Early adoption of AI in communications could provide competitive advantages and new revenue streams.

April 2025: Investor Engagement

Presentation at the Planet MicroCap Showcase demonstrated management’s commitment to shareholder communication and market visibility.

Market Impact: Increased institutional awareness often precedes improved liquidity and analyst coverage.

🎯 Beginner Trader Action Plan Today

Serious Recommendations:

  1. Start Small: Given the volatility, initiate with a position representing no more than 2-3% of your total portfolio
  2. Dollar-Cost Average: Consider building your position gradually over several months rather than one large purchase
  3. Set Price Alerts: Monitor key levels at $7.50 (support) and $9.00 (resistance) for potential entry/exit points

Humorous Veteran Wisdom: “Trading STC is like trying to have a clear phone conversation during a thunderstorm – sometimes you get perfect reception, sometimes all you hear is static. The key is knowing when to stay on the line and when to call back later!”

✅ How to Buy Sangoma Technologies Corporation (STC) Shares – Step by Step

Step Action Why It Matters
1 Choose a Trading Platform Select a broker that offers access to Toronto Stock Exchange listings
2 Complete Account Verification Provide required documentation for regulatory compliance
3 Fund Your Account Transfer sufficient capital for your intended investment
4 Search for “STC” Use the correct ticker symbol for Sangoma Technologies
5 Review Current Price Check real-time pricing at $8.22 (as of August 31, 2025)
6 Select Order Type Use limit orders to control entry price rather than market orders
7 Determine Position Size Calculate based on your risk tolerance and portfolio allocation
8 Execute Purchase Confirm order details before finalizing transaction
9 Set Monitoring Alerts Establish price alerts for important technical levels
10 Document Your Thesis Record why you bought and under what conditions you’d sell

💡 Why Pocket Option Appeals to New Investors

For those beginning their investment journey, Pocket Option offers several advantages that align perfectly with exploring opportunities like Sangoma Technologies:

  • Minimal Barrier to Entry: With a remarkably low minimum deposit requirement, investors can test strategies with real capital without significant financial commitment. This allows for practical learning while managing risk exposure.
  • Streamlined Verification: The platform’s efficient KYC process using just one document means you can move from registration to trading much faster than traditional brokers.
  • Diverse Withdrawal Options: Access to hundreds of withdrawal methods provides flexibility in managing your investment returns across different financial instruments.

The combination of low entry requirements and robust trading tools makes Pocket Option particularly suitable for investors looking to build positions in volatile but promising stocks like STC.

🌍 Sangoma Technologies in 2025: Communications Innovator

Sangoma Technologies Corporation stands as a established player in the business communications landscape, serving over 100,000 customers with 2.7 million unified communications seats worldwide. The company’s comprehensive suite includes award-winning UCaaS, CCaaS, CPaaS, and SIP Trunking technologies, all developed in-house and available across cloud, hybrid, or on-premises deployment models.

The company maintains its market position through continuous innovation, most notably with the January 2025 launch of its GenAI platform that leverages artificial intelligence to advance business communication technologies. Their strategic partnership with Amazon Web Services for enhanced cloud-native solutions demonstrates commitment to staying at the forefront of industry trends.

Interesting Fact 2025: Sangoma’s headquarters features a working replica of Alexander Graham Bell’s original telephone prototype in their lobby – a nod to their communications heritage while they build the future of AI-powered business conversations.

FAQ

What is Sangoma Technologies' main business?

Sangoma provides unified communications solutions including cloud-based phone systems, contact center technology, and SIP trunking services primarily for small and medium-sized businesses.

Why is STC stock considered volatile?

The stock has a beta coefficient of 1.35, meaning it typically moves 35% more than the overall market. This volatility comes from its small market cap, technology sector exposure, and ongoing transition to profitability.

When is the best time to buy STC shares?

Many investors watch for opportunities after earnings reports (next one September 23, 2025) or during broader market pullbacks that affect technology stocks disproportionately.

Does Sangoma pay dividends?

No, Sangoma does not currently pay dividends as it reinvests earnings into growth initiatives and technology development.

What percentage of revenue is recurring?

Approximately 82% of Sangoma's revenue is classified as recurring, providing stability through subscription-based cloud services and maintenance contracts.

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