We feel now is a pretty good time to analyse Sangoma Technologies Corporation's (TSE:STC) business as it appears the company may be on the cusp of a considerable accomplishment. Sangoma Technologies Corporation, together with its subsidiaries, develops, manufactures, distributes, and supports voice and data connectivity components for software-based communication applications in the United States of America and internationally. The CA$309m market-cap company posted a loss in its most recent financial year of US$8.7m and a latest trailing-twelve-month loss of US$8.1m shrinking the gap between loss and breakeven. The most pressing concern for investors is Sangoma Technologies' path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for Sangoma Technologies

According to the 5 industry analysts covering Sangoma Technologies, the consensus is that breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of US$3.6m in 2026. Therefore, the company is expected to breakeven roughly 2 years from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 166%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Sangoma Technologies' growth isn’t the focus of this broad overview, but, keep in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 27% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Sangoma Technologies which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Sangoma Technologies, take a look at Sangoma Technologies' company page on Simply Wall St. We've also put together a list of essential factors you should further research:

1. Valuation: What is Sangoma Technologies worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Sangoma Technologies is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Sangoma Technologies’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.