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 one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star then zero. 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, welcome to Sangoma's 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, Sangoma's Chief Executive Officer, Jeremy Wubs, Chief Operating Officer, and Larry Stock, 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 31st, 2026. Following their 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 SEDAR+, EDGAR, and our website. As a reminder, Sangoma reports under International Financial Reporting Standards, IFRS. 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 form, and the company's annual audited financial statements posted on SEDAR+, EDGAR, 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. Before we get into the details of the quarter, I wanted to step back and provide a clearer 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, growing approximately 9% and 17% year-over-year, supported by increasing demand for trusted, intelligent communications infrastructure. At the same time, our application business is in transition, 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. 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 CAD 204 million and CAD 205 million. This revision reflects two factors. We think 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 UCaaS 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 accelerating. 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. 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. For today, I'm gonna 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 sizes, 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 proposition. We are building a deeper, more embedded relationships 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 inter-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 it's 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 owned global voice networks, combined with our broader communication stack, positions us directly in that layer. Importantly, it allows us to participate in that growth, not just on a seat 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. 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 a 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. Taken together, these three areas reflect 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. With that, I'll turn it over to Jeremy to walk through the operating results in more detail. Jeremy, over to you. Thanks, Charles. I'll focus on what we're seeing operationally across the business, pipeline and customer health, momentum in our MSP and voice infrastructure lines, and how well-positioned we are to support long-term growth. First, both pipeline and customer health remain strong. Overall, pipeline and backlog were relatively flat quarter-over-quarter, while bookings were lower, following a particularly strong Q2. As deal sizes increase, the mix and timing of bookings can vary, but we continue to build and execute against a pipeline of larger, more strategic opportunities. This quarter has seen an abundance of add-on business to previously booked deals, further reinforcing our essential communication strategy and ability to capture share of wallet. For example, the large full-stack retail solution with 350-plus locations that closed in Q2, it started out as 150K MRR. It's about 15% implemented, and we're already booked an additional 50K MRR, taking this to 200K MRR. We have a customer with a large national group of clinics, and over the last 12+ months, they've expanded to 675 locations and 144K of total MRR, with an additional 112 locations expected in the back half of this calendar year. It's not just the larger deals that are getting larger. We have a multi-location healthcare customer that has expanded throughout the fiscal from its first location in Q1, three more in Q2, five more in Q3, with bookings now totaling 22K MRR. Expansion is all about trust and confidence in our ability to support our customers, which continues to be stable and highly sticky. Churn improved this quarter to approximately 0.79%, which is better than our historical level at 1% and a direct result of the significant improvements in CSAT and NPS that I talked about in prior quarters. Second, we continue to see strong momentum in our MSP and voice infrastructure lines. Our MSP business is growing approximately 9% year-over-year, outperforming the broader market, driven by our strategy to move upmarket and deliver full stack deployments. These are multi-product engagements where we move deeper into the customer environment over time. Our voice infrastructure and advanced SIP trunking lines remain a standout, growing approximately 19% year-over-year, driven by new customer wins, expansions within the existing accounts, and increasing traffic across our network. It's evident now more than ever that communications relevance, reliability, and trust reside in the infrastructure layer. This will continue to be amplified as cyber threats, voice and data phishing tactics, and importantly, AI agents become more prevalent and embedded in workflows and the way customers operate their business. Today, AI agents are already answering calls, booking appointments, and following up with customers. As these workflows move deeper into business operations, they rely on secure, trusted communications infrastructure with appropriate regulatory and compliance measures in place, whether that's PCI, HIPAA, STIR/SHAKEN. These capabilities don't get built overnight, and they represent areas where we've invested for years and continue to expand. At the same time, we're beginning to bring AI capabilities directly into the platform with both AI IVR and conversational receptionist agents now in beta and additional capabilities being added through select third-party integrations. We also continue to evaluate targeted acquisitions, particularly in AI and security, where those capabilities directly strengthen our intelligent, trusted communications infrastructure. As voice becomes more embedded in automated workflows, it is clear this will continue to be one of the fastest-growing and most strategic parts of our portfolio. With that, I'll turn it over to Larry to walk through the financials in more detail. Thank you, Jeremy. As Charles outlined, the consolidated view of Sangoma maps the growth that's happening within the portfolio, and that's particularly important as we think about the underlying value of the business. At a high level, approximately 60% of our revenue comes from applications, which includes UCaaS, CX, and CPaaS technologies. Over the past two years, we've consolidated this portfolio significantly, moving from a fragmented set of platforms to a more focused, integrated stack. Within this segment, we serve both a lower-end customer base where the market has become increasingly commoditized and a larger mid-market customer where we're growing through a vertical lead bundled strategy. Overall, this portfolio has declined at a low single-digit rate year to date, but we're seeing improving trends as our mix shifts towards larger, higher quality deals. Approximately 30% of our revenue comes from our data networking and voice networking portfolio, which includes MSP access and carrier voice. Together, this infrastructure portfolio is growing in the mid-teens and becoming a more strategically important contributor as usage scales and value concentrates at the infrastructure layer. The remainder of the portfolio includes our open source business and hardware, which each represent single-digit percentages of revenue. While smaller in size, both play important strategic roles in supporting our infrastructure platform and bundled essential communication solutions. The most important point is this. Different parts of the portfolio are growing at different rates, but the portfolio is built to generate cash across the board, and that cash flow is the foundation of value at Sangoma. In the third quarter, we generated CAD 6 million in net cash from operating activities, representing an 80% conversion rate from adjusted EBITDA. Year to date, our conversion of adjusted EBITDA to net cash from operations was 87%, which is right in line with our expectations for the fiscal year. Free cash flow for the third quarter was CAD 3.6 million or CAD 0.11 per diluted share and remains a core driver of shareholder value. During the quarter, we repurchased approximately 196,000 shares under our NCIB, bringing total repurchases to approximately 271,000 shares year to date. Subsequent to quarter end, the TSX approved the renewal of the NCIB for an additional 12-month period. We also continued to reduce our debt. During the first three quarters of fiscal 2026, we repaid approximately CAD 15.5 million of term debt. Total outstanding debt at March 31st was CAD 32.5 million, and quarter end cash was CAD 15.2 million. Our consistent cash generation, ongoing deleveraging, and disciplined capital returns have continued to reinforce the underlying value of the business and provide strategic flexibility as we move forward. Now turning to the P&L. Total revenue for the third quarter was CAD 51 million, reflecting the mix and timing dynamics we've discussed across the portfolio. Revenue from outside the U.S. was down approximately CAD 300,000 quarter-over-quarter and CAD 660,000 year-over-year, reflecting the macroeconomic and global trade-related pressures that have impacted demand in certain international markets. Gross margin for the quarter was 71% compared to 74% in the second quarter. The change reflects a combination of factors, including a higher contribution from infrastructure services with respect to product mix and higher fulfillment costs in certain international regions. Adjusted EBITDA for the third quarter was CAD 7.5 million or 15% of revenue. While margins were impacted by the factors I just outlined, we've been actively reallocating investments in both R&D and SG&A toward the faster-growing parts of the business, particularly infrastructure and AI-enabled capabilities, allowing us to continue investing in growth while maintaining solid profitability and cash generation. Turning to our outlook, we are updating our guidance for the fiscal year. We now expect full fiscal 2026 revenue in the range of CAD 204 million-CAD 205 million. This reflects continued momentum in infrastructure and services alongside the timing of revenue recognition on larger integrated deployments. It also takes into consideration the headwinds we have experienced on the international business. We now expect adjusted EBITDA margin in the range of 15%-16%. The change reflects the evolving mix of the business, with faster-growing infrastructure representing a larger share of revenue in the near term. Over time, we expect margin expansion for both the infrastructure side of the business as consumption volume grows in essential communications applications as larger customer contracts scale. Importantly, this outlook continues to be supported by strong cash generation, disciplined capital allocation, and improving visibility as deployments mature. Before we open the line for questions, and as always, I want to thank the broader Sangoma team for their hard work, dedication, and execution. Operator, we're now ready to open the call for questions. Thank you. One moment, please. We'll now begin the question-and-answer session. To join the question queue, you may press star then one on your telephone keypad. You'll hear a tone acknowledging your request. If you're using a speakerphone, please. Pardon me. One moment, please. Sure. The first question is from Gavin Fairweather with ATB Cormark. Please go ahead. Oh, hey. Hopefully, you can hear me. There's a bit of background noise. Just on the new focus around the voice and data networks on the infrastructure side, maybe you can just refresh us on kind of the capacity and geographic coverage of that segment. You know, how you know, win in that segment and differentiate yourself versus competitors. Just lastly, kinda how much of that is being sold through, you know, existing channels and existing clients and versus it being separate? Yeah, I'll talk. Hey, Gavin, it's Jeremy. There's a couple of things. you know, the kind of data infrastructure is more North American-focused. It runs on a pretty advanced infrastructure backbone we have. That's really tied to a lot of the large deals and logos I talked about in previous quarters. Like, it starts with the network infrastructure, getting that traffic running over top, and it gives us the opportunity to kind of in later quarters go sell more applications and solutions on top of it. You got one component, very North American-focused, data infrastructure-based, and then the voice infrastructure base. There is some commonalities in the kind of the network it operates on, but that's sold mostly to a lot of large other UCaaS trunking providers, you know, that have software offerings that need to, you know, run calling, run AI agents, run more advanced applications. That infrastructure is both North American-based and actually reaches out globally into the worldwide theater. I would say for the most part, it's a lot of the same partners in our partner ecosystem, but it's a subset. It's, you know, ones that are more sophisticated, ones that have a better appreciation for kind of the more advanced features and services that we're able to provide. You know, they have a propensity to go after larger logos, and that's really what's helped us win, you know, a lot of those larger deals I've talked about in other quarters and see the, you know, 19% growth on the voice infrastructure side and 9% year-over-year growth on the data infrastructure side. Appreciate that. Very helpful. Then just on the multi-product larger wins that you've secured in recent quarters, I think you said that the backlog of deals kind of booked but not yet live was pretty unchanged with last quarter, which I think was at an elevated level. Maybe you can just talk about, you know, the timelines for some of that business to go live and start showing up on the services side. Yeah. Most of them take about six to eight months to deploy. I mean, the example I sort of talked about earlier, we had closed in Q2 350 locations. It's about 15, almost 20% implemented now. You know, you're talking a couple more quarters, two to three more quarters before they get up to full run rate, whether that's, you know, the 150K one I mentioned. They, you know, another one I talked about last quarter is about 20K. Those types of deals, so you're talking six to eight months. If it's a little more voice infrastructure related, you know, it probably in a quarter or two. If it starts with kind of a national data network, like the bigger ones that are in the, you know, 100K plus range, that's more in the six to eight month timeframe. Every quarter, though, we're continuing to build on the foundation of more bookings in this area. The simple way to look at it, Gavin, is we're getting these customers onto our networks through a value proposition that standardizes their network platform, reduces their total cost of ownership, and secures their network. We bring them on every quarter. They get rolled out over the course of eight to 12 months. Every quarter we keep adding to that portfolio. The compounding effect of that is really hard to time it because some of it is not just our own capacity, it's the capacity of the clients themselves to organize their locations, get ready for us to install. It's why we have difficulty sometimes so early, like we're only one year into this sort of pivot to the larger transformational type deals to really pivot on when these will all land on whatever particular quarter. I think as we get more and more mature, every single quarter we'll get much more clarity on, you know, understanding how the impact has to revenue relative to the other pressures that we're facing and that we talked about earlier. Thanks. I'll pass the line. The next question is from Daniel Rosenberg with Paradigm Capital. Please go ahead. Hi there. Sorry for any background noise. I'm just in transit. My first question was around the expressions of interest that you mentioned. Any color you could give about, you know, are these several expressions of interest? How, you know, initial conversations, how deep these conversations have gone? Just any color there would be appreciated. Yeah, look, we've been looking at ways to drive value creation with a company of our size. You know, we're a small cap Canadian company with, you know, some liquidity challenges. The, you know, part of our mandate was really to get the company into good operational strength, which is where it is now, and good financial strength. We knew when we got them into these two positions, we'd have lots of options. One of the options would be to buy a bunch of companies and start to build on our platform. The other option was potentially to exploit the value in our financial systems. Well, just like we've been trying to do with our own company, we've had interest really since we've begun the transformation. You know, at the beginning of this fiscal year, we came out of transformation, and we've had lots of inbound interest to look at the company from all kinds of scenarios. Mergers, potentially, you know, combining efforts, partnerships where we would combine portfolios. Obviously, we've been looking at acquisitions. It's kind of been a slow-growing, ongoing set of interests over the course of the last year. It just got to the point now where the board felt it was, you know, our duty to, you know, announce that this was going on just because the interest continued to increase. You know, inside that last six months, really the last six to eight months, the market has dramatically shifted. There's been a lot of activity in this type of space and so we felt it was, like, the right time to do it. Okay. Appreciate that. Just turning to your commentary around kind of the macro, some international impacts. I was just curious if you could tell me what you're hearing from the budgets of your target customers. Has there been any change in propensity to spend? I think of all these AI applications, you know, just dollars, where they're being allocated. Just what are you seeing on the front lines? Honestly, on the international front, our portfolios international are somewhat restricted to a handful of offerings. We have a cloud-based offering that can operate in multiple countries, and we have a lot of traditional voice hardware business out in those parts of the world. These are offerings that are generally fairly cost-conscious. With some of the activities in the Strait of Hormuz and the disruption to supply chains, shipping costs, production costs have gone up, and a lot of our clients are just basically telling us that the costs have become prohibitive. They're pulling back on their deals until they sort of see if there's any calmness that comes to that part of the world. We ship product to, you know, Korea, and to Asian markets, and to Middle Eastern markets, into the Indian markets, into Italy, and so some of those have had some disruptions. Basically, most of it has been around cost of transportation, and shipping costs have just made it somewhat cost prohibitive, and it's slowed down our orders unexpectedly. As you know by how fast this war came upon, very, very quickly, which has caused a bit of the challenge we've had this quarter. You know, if I was just being honest with you, I think the feeling I'm getting from customers in that market is it's still a little ambiguous. You know, does this thing shut down in Q4 and we go back to normal, or does it take a couple of quarters before costs, shipping stable down while they got to go through the backlog? We don't know. As a result, you know, we've been quite cautious about our guidance relative to the impact that would have. Also just one other, you know, thing, like we've had events being canceled by customers because of some of this turmoil that's going on in the market. You know, the overall answer to your question is the feedback we're getting is the market is very uncertain as to what's going on. It's creating caution, that caution is translating into slower orders for us and delays in orders relative to the situation they're faced with. To be honest, I don't blame them. Okay. lastly for me, just on the margin. Would you say the margin impact this quarter is kind of a function of what you just described? 'Cause when I think of you guys historically, you've been pretty consistent in the margin that you've been able to produce. just wondering how you're thinking about margins on a go-forward basis, you know, any expectations of a rebound if some of these issues get resolved in the near term? Yeah. For, you know, for the next quarter as we're guiding, we see it relatively the same given the visibility that we have. As we, you know, as we transition to seeing some of the volume in some of these other areas and our ability to increase the margin there, moving forward, we would expect to see that expand as we move forward. For the next quarter, we've built that into the guidance that we've given just because of the uncertainty in those areas. Great. Thanks for taking my questions. Thank you. The next question is from Suthan Sukumar with Stifel Canada. Please go ahead. Hi, Sue. Good evening, guys. You guys, for my first question, I wanted to touch on some of the commentary you guys made around, you know, keeping the investments going into the growth categories of the business. Is this more of a reallocation of resources, or is there now a new incremental scope of investment given some of the market signals that you're seeing? It's really both. We're always looking at costs and on a net basis, we'll be at about a CAD 2 million annualized cost reduction. However, we are putting back into the business significant investments in those areas which would be a reallocation. From that point of view, we're looking at where we can deploy those assets to serve where we're seeing the growth. It is the combination of both, Suthan. Okay. Okay. Okay, great. With respect to the color you guys shared on the pipeline trends sequentially, you know, I think you touched on the earlier question, but you know, is that, is that, you know, is that sort of activity in the pipeline that you're seeing now, is that more reflecting, you know, more of a pause in overall client decisions here given the macro that's playing out? Is this also a function of really just the larger scope of deals that you guys are working with now and the lumpier nature of those deals? You know, moreover, what are you seeing, you know, post the quarter? No. Like, I'll be clear on a couple of things, if I understand your question. First of all, the pullback or the hesitation is really pretty focused in on some of our international markets and those customers. In the U.S. markets where, you know, 90% of our revenue exists today, we're not really seeing a pullback. What we're seeing there more of is, look, we kicked off in July of this year, this idea because we were post integration and transformation, bundles of larger deals upmarket, which required, you know, three major things to happen. One, we needed to find sales leadership that knew how to sell the integrated bundle value proposition. Two, we need to really isolate the partners that really understood the complexity of these types of larger, you know, lowering TCO type value propositions. Three, we had to sort of land those deals and then roll them out. We got all three of those things actually pretty right in the first couple of quarters. What we're still struggling with a little bit, it's just the speed of execution of deployment. As every quarter goes by, we get much more intelligent about how these things roll out, especially these larger, very large complex deals like the one Jeremy was talking about. You know, we didn't anticipate that we would start at a 150,000 MRR, then within three or four months later, we're now adding another 50,000 of MRR. Now it's a CAD 200,000. We've never done deals of that size before. We're learning as we go. We don't see any real pause here. In fact, we're gonna see continued escalation or not escalation, but increased volumes of these types of transactions. They're just gonna be a little bit wonky for the first couple of quarters. Like one quarter, you might have huge booking numbers where you'll do 10 million of TCV, and then the next quarter you might have half that, and the next quarter you might have triple that. As we get more and more mature over the coming quarters because we're now definitively focused on this business and couple that, Suthan, with we've made a conscious decision this quarter to really focus the growth of the company on these areas of the business and not try and invest in all the areas. There's a realization that the application side of this business, just a very tough sled. I think it's commoditizing. I think it's an area of the business where you need to deprioritize. I don't mean stop growing, but sustain that business, but really put dollars that we have available to us into those areas that are growing double digit. The value proposition that we tested in July of this year, at the beginning of July, beginning of this year, has proven that this is the area that customers are appreciating and that we are going to start investing more and more of our energy and time to. We're just not at a point yet where I can pinpoint every single quarter the exact amount of revenue that's gonna fall. What I can tell you is just it's growing. There's demand for it. I think AI now and agent traffic on these networks is gonna continue to increase the volume there, and we'll continue to learn as we deploy these things on a quarter-by-quarter basis. I know it's a very vague answer to the question, but it's really the best we can tell you about right now is it's an exciting area of growth for us, but it's a new area that is now showing up in real numbers for the company as we announced today in terms of what we're seeing, and we're allocating the investments to support that. Gotcha. No, that's a helpful color. Just one last one from me, guys. Just on the strategic review, would you entertain selling parts of the business? If the board ultimately deems that, you know, you guys stay the normal course of business, would you continue to be active on M&A going forward? Being active on, sorry? M&A. Being active on- So- on M&A. Yeah. Because of the ambitions you've talked about in the past. Yeah, yeah. Of course, because, what this announcement was about, and I know, you know, the general view is it's just simply, "Hey, we're looking at strategic alternatives in one dimension." We're not. We have been and continue to look at, you know, being an acquirer of companies, but to now potentially being acquired. There's no definitive timeline at this point. You know, do we see selling parts of the company, I think is what your question was. I don't think that's a logical answer because the value of this company has always been predicated in the foundation of the essential communications bundle that we believe the mid-market is moving towards. Selling parts of the company doesn't seem to make sense, although the board is willing to entertain anything that creates shareholder value. It's a broad announcement on how the board feels about what we wanna do. We wanna unlock value for the company that creates shareholder value, and we're gonna look at all various options to maximize that. Okay, great. Thanks for the for the feedback, guys. I'll pass the line. Okay, bye. The next question is from David Kwan with TD Securities. Please go ahead. Hi, David. Hello? Mr. Kwan, your line is open. Oh, hi. Can you hear me? Yes. Yep. Oh, perfect. I'm not sure what happened. Obviously you spoke a few months ago, and there was just a lot of bullish commentary and data points on the call, and not so much on kinda some of the headwinds that you might have been seeing, especially internationally. I'm just trying to reconcile that with kind of what came out this quarter. Like, how did things, I guess, seemingly change relatively quickly in some of your markets, most notably internationally? Was it just the Iran conflict or is there something else? No, it was the Iran conflict. I mean, the Middle East crisis, the disruption to the supply chain directly affected our mostly NRR business, which is tied to the international side of our revenue stream. It's a very stable, the international markets for us, and the leader who runs it is usually very stable. Q3 is actually our strongest quarter, generally speaking. It has been for multiple years. This is the seasonality trend of the international markets. The only thing that's really disrupted it, and we're getting direct feedback, is the very rapid implications associated with the macroeconomic issues that are going on. It's created problems with shipping costs. It's created problems with clients', you know, belief that we would get product to them at a certain time, and orders were delayed, It's just caused a short-term impact. I don't know how long it's gonna last, and that's why I'm being a little bit more conservative about, you know, where I think Q4 is. Is this gonna end? If it does, like, okay. Ask any of my CEO friends the same question. Like, okay, well what's the backlog implication to this? If you're an NRR seller, you're a product seller, which we are for international, that's mostly what we sell out there's a direct impact there, it creates a lot of ambiguity. That's why I said in my remarks, I gotta be direct with you guys. Like, I'm gonna have to lower guidance as a result of it because I just cannot put my finger on where they're gonna be. We were quite bullish on them going into January. Then when did this thing happen? Like, it happened, what, February, March, and boom. It has that kind of an impact. I'm not being cute, but that's about as honest as an answer I can give you. No, I appreciate, I sure appreciate the color, Charles. I guess when you look at the breakdown of the revenues, the proc revenues actually were quite solid. But on the services side, it looks like the shortfall was relative to kind of what you guys had kinda guided to in terms of year-over-year and sequential growth this quarter. Seemed to be about CAD 2 million. I'm trying to understand what the difference was. Was there, you know, the FX was a bit of an impact there, but what happened there? I'm sorry, with respect to what specifically? Just on the services revenue side. You guys had been talking about Q3 being a quarter of returning to not just quarter-over-quarter growth, in services revenue, but also year-over-year basis. Relative to where the revenues fell out this quarter, it looked like there was about a CAD 2 million shortfall. Given that churn was actually seemingly, I think went down this quarter based on Jeremy's commentary, I'm just trying to reconcile that. Hey, David. It's Jeremy. A lot of it was what Charles just mentioned previously, like the timing really of some of those larger, more strategic deals. We booked a tremendous TCV in Q2. We had very strong bookings in Q1 as well around some of these larger strategic deals. You know, I wouldn't have predicted, you know, that we'd only be on some of these larger ones 15% deployed. I thought we'd be at 40%, 50% deployed, and that MRR would've flown, you know, would've shown up this quarter. It's not, you know, it's not kind of, you know, our ability to implement and kinda pace these deals. It's just the pace at which the customers go. You know, one of the large account I mentioned before, large retail at 350 plus locations, some of them are in, you know, strip malls. They gotta do it after hours. They gotta coordinate it with the landlord. They gotta get to the telecom room. You've got it on the schedule for whatever, the first of the month, and sometimes by the time you can get all that coordinated, it's two, three, four weeks later. That's really what's impacting our, you know, our Q3 services revenue, the lumpiness and the pacing of these larger deals. As we have a larger and more stable volume of large deals, you know, that'll help create more predictability in the MRR and services business. I mean, David, I made it clear as well, like that is certainly a big part of it. We have a big portfolio. Part of the portfolio is NRR and the product business, which has generally grown, so that you've heard there's been some headwinds associated with that we described. There's also the third bucket, which I've been very open about, right? The market has dramatically changed in the software industry in the last seven to eight months. No one would have If you asked me a year ago, would I have thought the infrastructure, networking, and data businesses would have been a strength of Sangoma, I would have said you're smoking grass. It is now, you talk to any of the major players in this space, infrastructure plus AI could become the new success because there's a realization AI agents are coming on these networks at an extraordinarily rapid rate, and they need an infrastructure that can trust, authenticate, timestamp these agents just like you would with voice calls. We've become to realize that the services, the pure software side of the business, the traditional UCaaS business, which makes up a large chunk of our revenue, is just commoditizing at an accelerating rapid rate. I can either fight that, which I thought we could over the course of the year. I could fight it hard or try and differentiate with a company of my size, CAD 200 million, or we can really put the guns of growth towards where we think the puck's gonna be, which is in the infrastructure. We've kind of made a pivot in Q3 under that realization, and given the adaptability of this company and how fast we can pivot, we pivoted in Q3. We took out some costs, we reallocated those costs into the growth engines. That's had a bit of an effect on the year-over-year, the consolidated view, as Larry said in his remarks. It's hiding the underlying growth of what's really happening in the company and what I believe the market is actually doing and rewarding. I guess the simple way of saying it, the plan in July is a little bit different than the plan now, some eight, nine months later, primarily because you cannot deny the market has absolutely shifted in technology, in particular in the last eight months. I appreciate the color, guys. Last question. For the strategic review, did you just commence that, or did that start earlier and you're only disclosing that now? No, we've been sort of working with our bankers since about the beginning of the fiscal year. Really it was mostly focused on a hugely broad mandate that kind of went into acquisitions, it went into all kinds of a potential way to unlock shareholder value because we just didn't feel the market was rewarding the company for the value that it had. I mean, we've got value in two areas. You know, we've strengthened the financial position of the company with its balance sheet, its debt, its cash flow, its EBITDA position, and we've strengthened the portfolio after two years of grueling transformation. We still didn't feel the market was rewarding it, so we wanted to get a different set of eyeballs on it, we engaged that process at the beginning of the year. Because of what's happening in the market, the company had drawn a lot of attention to itself, we thought it was appropriate in our fiduciary responsibility to announce it. I appreciate it. Thank you. You're welcome. The next question is from Robert Young with Canaccord Genuity. Please go ahead. Hi, good evening. I was gonna ask why now on the strategic review, I think the answer to the last question partly answered. I mean, I think if I were to look at the previous comments you just made, it sounds as though you're looking at optimizing the business. This isn't a situation where you've had an outside offer that's forcing a process, if I'm, you know, trying to understand the answer to the previous question. Is that? That's right, Robert. You're right. As usual, smart as a whip. I mean, you're already looking at divesting slower parts of the business like the VoIP Supply transaction. Is this just a continuation of what you had been doing before, just more formalized? Yeah, it's a little broader than that now. I think, like I said earlier, the market, you know, We, me, like most CEOs who are in my space right now, are a little frustrated by this. It's dramatic structural changes that are hard to understand in the software industry, in the UCaaS industry. You know, we believe there's value in this company, in Sangoma in particular, dual value in its financial strength and dual value in its portfolio and the richness of the portfolio, and certainly in what we're starting to see now with the, with the growth in the business in certain areas, you know, combined with the compression in other areas. The value is just being locked up, and the market's not appreciating. We're looking at broader ways to unlock shareholder value. That's my job. First and foremost, beyond protecting the integrity of the employees of the company, is to increase shareholder value. You know, I think we've just taken the mandate broadly. We've had a lot of inbound interest on the company, and it's increasing, and it became, you know, for us, something that we felt it was our responsibility to announce, and that's what we did. Okay. Thanks for that color. Sure. Digging a little bit into the pricing pressure, you already suggested it was related to specific areas. I think, you know, in UCaaS. I missed the other parts. Is this where bundling has not been a factor? I think you said that there was strong demand in the U.S. Is the pricing pressure outside of the U.S.? No, no. The pricing pressure is across the UCaaS portfolio as a point solution. The way you stave off commoditization when you have that is you move into value proposition that blends a commoditized offering with a better premium offering or a better value proposition. The bundling strategy is our way. We always knew pricing compression was coming. I mean, when I joined the company in 2023, I joined it knowing full well that over the next two years we're gonna be in a commoditization cycle. There were too many UCaaS players out there. What Sangoma had that was different than everybody else is that it had voice, data, video security, and its own proprietary hardware. Moved the company towards bundling, which we took us two years to kinda get the transformation enabled to make that happen. Launched that in July, which was the beginning of this fiscal year. Logged 11 million of TCV in the first two quarters, more coming this quarter, more coming next quarter. Those deals have a very different business model than selling point solution UCaaS by itself. The timing of revenue between selling a point solution of UCaaS at a super high margin by itself is way different than selling a bundle, which gets rolled out over eight-12 months, depending on the speed of the client's ability to execute. It's getting the timing right of dealing with commoditization while executing the bundle that we're still, I'm just being honest with you, still struggling to pinpoint how to land a plane in every 90-day cycle to meet these quarterly numbers, you know, at such a tight rein. It's just hard to do. It's always been that way for anyone that plays in this space, until you get volume. As we go into 27 and 28, you know, every quarter, we begin to understand better how to realistically time the revenue drop from the time of revenue contracted. Great. Okay. The churn number, it's still very impressive. You noted there was a lot of large expansions, and so a net revenue retention or net dollar retention number I would think would be very high this quarter. I know you don't give that number, but was it abnormally high this quarter? Maybe if you just talked about whether the, you know, the channel go-to-market strategy, is that driving some of this expansion activity with these large customers? Yeah. Not yet. It's just starting to. First of all, on churn, you know, Jeremy and the team have just done an outstanding job of, and that's certainly from his background of focusing on customer service. If you're gonna get into these bundles, you're gonna become the virtual CIO for your customer. In order to maintain and retain that customer, you've gotta have some degree of trust built up through good service and good support. Between Jeremy and Joel Kappes, our Chief Client Officer, they've driven that number down, including bringing in AI technologies in to better help us understand our client base and get them through, you know, the pre, the pre 2023, I guess, Sangoma. That had some challenges and that caused a lot of this churn to kinda go through the system. On the bundling side, now that we're landing these larger contracts, there's a kind of phase 2, right? First land the contracts, now we're gonna invest heavily into account expansion. We really couldn't do that until we got a bunch of these contracts in that were bundle aware. Part of this reallocation that Larry had talked about, we're actually moving six bodies into the account expansion team. It's part of that investment and reallocation. Mining one of the core value capabilities of Sangoma is its 100,000 plus customers. We really haven't got into harvesting them well. We now have a great leader who's running that for us. We're putting more resources towards that, and we have a portfolio that has a good customer sat and NPS score attached to it that makes it a little easier for us to sell more features, more services, more capabilities to that base. You've got these two plays, new logo acquisitions going after large new contracts on these five-year terms that are more infrastructure-based, then moving them over to a farming function to allow for account expansion because the company is now ready to do so. Just like I said, those things are both moving into full motion, really this quarter and kind of going into 2027. Okay. Last question. Just the infrastructure, if you could just clarify what that means when you say that I think of hardware like session border controllers and such? No, infrastructure, just think about it simply, right? Think about like a layer cake. The bottom of the layer cake is the voice network. It's kinda A to Z countries, it's global, and it moves voice traffic. It carries voice traffic on a wholesale model. We sell it to ISVs, ISPs, carriers, those kinds of people, and then they move traffic, voice traffic across these networks. More increasingly, we're gonna start to see more agent traffic moving back and forth, communicating with humans. Agents communicating with humans communicating with humans over voice traffic. The next layer above that is the infrastructure of data, mostly North American-based. It's our own network. It's really more machine to machine application traffic that moves across these networks, internet traffic, that type of stuff. It's got security embedded on top of that, and that carries, you know, mostly data traffic, and then I think in the future, agent to agent communication. These two layers we call infrastructure in the simplest terms. It's just carrying traffic that used to be primarily humans. Increasingly, we're gonna start seeing more agent traffic 24/7 days a week, consuming more of those network infrastructures and hopefully commanding more of a premium price than what traditional human to human conversations would get. Yeah. Just for clarity on those are absolutely services businesses. They're not hardware. That's right. It's, you know, recurring services or reoccurring services for usage on those, on those platforms. The data networks, for example, can be five-year contracts, three-year contracts on average. The voice ones are recurring revenue generally on a yearly basis. So very, very high quality revenue that is very consistent. Once you get agent traffic on these networks, it's very hard to get off. It's going to be a very sticky business and continue to be so, as long as you don't have the customer hate you, which is why NPS and CSAT are so important to us. Very interesting. Thanks for that. I'll pass the line. Okay. This concludes the question and answer session and today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.