Thank you for standing by. This is the conference operator. Welcome to Sangoma's Second Quarter Fiscal 2026 Conference Call. This conference is being recorded. 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 Sangoma's second quarter of fiscal year 2026 investor call. We are recording the call, and we will make it available on our website for anyone who's 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 then take you through the operating results for the second quarter of fiscal year 2026, which ended on December 31, 2025. 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 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. I'm pleased to report that fiscal Q2 tracked right to plan, including one of our strongest booking quarters in recent history. This is a clear indication that our go-to-market strategy is gaining traction and that the investments we've made in positioning Sangoma for growth are starting to show tangible results. As we outlined last quarter, Q2 would show sequential revenue growth, and we delivered on that expectation. Revenue for the quarter was $51.5 million, up 1.2% sequentially. Importantly, service revenue grew 1% — this is an important signal as it reflects the early impact of improving bookings momentum beginning to translate into recurring revenue growth. We delivered $8.3 million in adjusted EBITDA with 16% margins, and conversion of adjusted EBITDA to operating cash flow was very strong at more than 120%. This continues to reinforce quality, consistency, and discipline in our earnings model. As a result, free cash flow improved sequentially to $8 million or $0.24 per fully diluted share. Building on the KPIs we introduced last quarter, we're starting to see sustained progress in our mid-market strategy. Pipeline conversions remain solid, our bookings profile continues to improve, and we're seeing growing traction across our verticals and wholesale motions. Collectively, these trends highlight the increasing effectiveness of our platform approach and our ability to execute at larger scales. Regarding our pipeline, it remained steady in Q2, reflecting a healthy balance between new opportunity creation and deal conversion. Importantly, we're continuing to see improvements in our close rates, reinforcing both the quality of the pipeline and the effectiveness of our go-to-market execution. On bookings, MRR bookings grew significantly, up 67% sequentially and 60% year-over-year. As we increasingly engage with these larger, more complex mid-market opportunities, we expect some quarterly volatility, but with higher long-term value and stronger recurring revenue. This is exactly the type of shift we want to see as we scale this business. On churn, I am also very proud of this; we also saw sequential improvement in the churn rate. Retention remains excellent with blended churn holding just under 1%. This reflects the stability of our recurring revenue base and the progress we've made in customer experience, service delivery, and platform stability. As we continue to execute on our FY '26 priorities, we are seeing momentum across all the business. Our essential communications platform, combined with more focused solution bundles, deeper vertical alignment, and a strengthening partner ecosystem, is enabling us to compete more effectively for larger multisite and more strategic mid-market opportunities. Broader, this reflects a shift in how customers are buying, and we're seeing that dynamic increasingly show up in the structure and quality of opportunities we’re pursuing. The progress we are seeing is not isolated to individual wins, but it's visible in the overall size of the opportunities, the quality of those bookings, and the breadth of the customer segments engaging with us on our platform. With our leadership team, operating systems, and partner programs now firmly in place, we are investing to scale our go-to-market engine. As outlined last quarter, we committed approximately $2 million in incremental SG&A to accelerate pipeline development, customer acquisitions, and execute on partner enablement. In Q2, we began deploying these investments in a measured way, focused on building momentum while maintaining strong financial discipline. Our approach to capital allocation remains balanced and pragmatic. We continue to reduce debt and return value to our shareholders through our normal course issuer bid. At the same time, we maintain the flexibility to pursue strategic and selective accretive M&A aligned with our strategy should the right opportunity arise. Before I hand it over to Jeremy, I want to take a moment to frame how we see the next phase of our business. What we are seeing in the market today, particularly in the mid-market, continues to reinforce the direction that we've been intentionally pursuing over the past several years. Customer expectations are evolving towards fewer vendors, more integrated solutions, and partners that can deliver dependable service in industry-specific contexts. In this environment, scale becomes a strategic priority, not as an objective on its own, but because it supports stronger economics, consistent execution, and deeper long-term customer relationships. The key point here is that our ability to pursue scale is now an enabler for Sangoma rather than a constraint. The foundational work we completed has positioned Sangoma extremely well. We have the balance sheet, operating discipline, platform breadth, and partner ecosystem required to grow organically while also being able to pursue opportunities that expand our scale and momentum as industry dynamics continue to evolve. As a result, we have real flexibility in how we move forward. That includes continuing to execute organically, selectively expanding the platform where it makes sense, and maintaining the ability to evaluate broader opportunities as the market continues to mature. Any path we pursue will be grounded in discipline and a clear focus on long-term value creation as we have been doing for the past two years. Importantly, we've already seen the impact of the foundation show up in the fundamentals: stronger bookings, growing recurring revenue base, improving churn, and consistent cash generation. I want to thank the entire Sangoma team for their continued focus and execution as well as the key stakeholders who have been with us through this entire transformation. The progress we're seeing is the direct result of the work being done across the whole company, and it positions us well for the next phase of our growth. Jeremy is now going to walk you through how the momentum is translating into our go-to-market execution and our booking performance. Over to you, Jeremy.

Thanks, Charles. I am pleased to provide an update on our go-to-market progress. Building on the bookings momentum Charles highlighted, what I want to emphasize today is how those wins are being driven and why we're confident in the trajectory of our go-to-market engine. As mentioned, our pipeline remains healthy, and we continue to convert a balanced mix of volumetric business and larger strategic mid-market opportunities. During the second quarter, we closed $7.5 million of the $14.8 million in new large strategic deal TCV identified last quarter, bringing our total large strategic TCV bookings to $10.8 million for the first half of fiscal 2026. Equally important, we backfilled the pipeline as we move into the second half. These bookings further validate our strategy as an essential communications provider and our ability to move upmarket. Several of these large wins also include upfront product or NRR components and will contribute to a slightly higher product mix in Q3. In prior quarters, I referenced a number of our go-to-market strategies targeting service providers, MSPs, vertical solution providers, and wholesale opportunities. Regarding the wholesale opportunities, last quarter, I talked about a CLEC win of over $20,000 MRR and a comparable deal in our pipeline for a large healthcare organization of $12,000 MRR. I'm very pleased to confirm that this opportunity, which supports two large hospitals and nine urgent care facilities, is now a closed win. We also closed a large multi-location retail customer worth $18,000 MRR that previously had three separate vendors for voice, access, and managed services. This client was looking for a single provider and valued the bundled solution from Sangoma to standardize the technology stack across all locations and ensure scalability, repeatability, and simplified support. Our most substantial service win this quarter was a greater than $150,000 MRR deal with a large distributed retail customer with over 350 locations and a fragmented and disparate business communications environment. This customer was also looking for a single provider to once again ensure scalability, repeatability, and simplified support. Beyond these large and strategic MRR wins, our hardware products, such as our prem UC products, phones, and gateways continue to contribute to our product revenue as they move through distribution. I'm very pleased that this channel continues to show strength with revenue up 4% over the same quarter last year. We are also seeing strong momentum with our carrier voice and trunking solutions. During the quarter, we announced a contract with Commio, who selected our wholesale SIP trunking solution to support their nationwide cloud voice and messaging footprint. They are one of many new customers that are leveraging our trunking infrastructure, which is up over 10% from the same quarter last year. I'm encouraged by the progress of our go-to-market. We have a disciplined and focused team driving a growing pipeline of volumetric business alongside larger strategic opportunities. These larger deals are being closed, and we will see the revenue impact in later quarters, providing solid visibility towards our growth. I want to extend my thanks and appreciation to the entire Sangoma team. It's truly a team effort for their continued execution and focus on driving sustainable, profitable growth. I'll end here and pass things over to Larry. Thank you.

Thank you, Jeremy, and welcome, everyone. We appreciate you joining us for today's call. Fiscal Q2 landed exactly where we expected, reflecting continued execution across the business. As a result of the bookings momentum in Q2, our starting backlog for Q3 is up approximately 125% compared to the start of Q2. This provides strong visibility into the second half of the year and reinforces the improving consistency of our operating performance. In the second quarter, we generated $10.1 million in net cash from operating activities, representing a 122% conversion rate from adjusted EBITDA. This reflects positive working capital movements as trade receivables returned to historical levels following the timing impact we discussed last quarter related to our ERP implementation. Year-to-date, our conversion of adjusted EBITDA to net cash from operations was 91%, which is right in line with our expectations for the fiscal year. Free cash flow for the second quarter was $8 million or $0.24 per diluted share. Given our strong free cash flow yield relative to the share price, we continue to take advantage of our normal course issuer bid. During the second quarter, we repurchased approximately 196,000 shares. Since launching the program last April, we have retired more than 700,000 shares or 2.1% of shares outstanding. This reflects both our capital discipline and our confidence in the long-term value of the business. We also continued to reduce debt, retiring an additional $5.2 million in debt during the second quarter. We ended Q2 at $37.6 million of total debt compared to $60.4 million in Q2 of last year. This ongoing deleveraging remains an important part of our capital allocation strategy. As our credit profile improves, it further enhances our flexibility as we think about the next phase of the business. Quarter-end cash was $17.1 million, up 27% from June 30. Looking ahead to the remainder of fiscal '26 and into fiscal '27, our capital priorities remain unchanged, leveraging strong cash generation to support organic growth and profitability, continuing to reduce debt to provide greater strategic flexibility, returning capital to shareholders where appropriate, including through the NCIB, and evaluating disciplined, strategically aligned M&A opportunities. This balanced approach positions us to drive durable long-term value creation. Now turning to the P&L. Total revenue for the second quarter was $51.5 million, representing sequential growth of 1.2% from Q1 as we had indicated last quarter. Excluding $6.4 million of revenue from VoIP Supply, which was strategically sold to exit low-margin nonrecurring resale activity, revenue was 2% lower year-over-year on a like-for-like basis. As Charles noted, services, which represent 92% of total revenue, grew 1% sequentially driven by higher cloud services revenue. Gross profit was $38.2 million in the second quarter, and gross margin improved to 74% compared to 72% in the first quarter and 68% in the prior year period, reflecting a more favorable revenue mix and continued strength in recurring services. Adjusted EBITDA for the second quarter was $8.3 million or 16% of revenue, consistent with Q1. We also had higher commissions tied to several large contracts booked in Q2, a healthy sign of commercial productivity. We expect adjusted EBITDA margins to improve in the second half of fiscal '26 as revenue builds and we benefit from operating leverage. With the first two quarters coming in largely as expected and a solid backlog, we are tightening our guidance for fiscal '26. We now expect revenue of $205 million to $208 million, adjusted EBITDA margin in the range of 17% to 18%. Achieving this outlook assumes another sequential revenue increase in Q3, and we anticipate returning to year-over-year organic growth once we adjust for the divestiture of VoIP Supply. We look forward to building on these foundations as we move through the back half of the year and into fiscal '27. Before we open the line for questions, I want to thank the broader Sangoma team. Your focus, commitment, and execution continue to drive the progress we're seeing across the entire business. We're now ready to open the call for questions.

Our first question is from Robert Young with Canaccord Genuity.

Great. The 67% quarter-over-quarter growth in MRR bookings, I'd like to dig into that a bit. What are the key drivers there? I mean you mentioned a lot in your prepared remarks, timing of larger deals, higher close rates, I guess, the go-to-market biting where you want it to. Maybe you could just dig into that a little more because it's a big number. What are the key drivers?

Yes. I mean the key drivers, Rob, are really tied to some of those larger strategic deals. We've got a really healthy new partner program in place, and we're seeing some of those bigger strategic partners working closely with us to find larger logos. So some of those logos that I mentioned just a few minutes ago, some of those larger deals are what grew both our pipeline and really our bookings quarter-over-quarter.

And those are deals, Rob. Those were deals that we started developing early in Q3 of last year and Q4, and they're just now coming to fruition, as I was talking about that the pipeline was building with these larger transactions, these multisite locations, and they started landing in Q1 and Q2, and we will see that continued trend going forward and hopefully growing.

And that's my second question is just the trend. I mean that 67% growth quarter-over-quarter, but 60% year-over-year, is that the sort of growth in bookings that you anticipate? Or is there seasonality? Like is the pipeline still shifting towards large bundled deals that can continue to support that type of bookings growth? Or is this just a special quarter for that?

No. As I mentioned earlier, we have transitioned from a transformational phase, which wrapped up in June, into a growth phase. The booking pipeline is expected to expand as we continue to secure more deals. We established the company to integrate various elements of essential communications to meet the needs of the increasingly sophisticated mid-market. The idea was that this segment would seek single vendors, lower total cost of ownership, and high-quality service for their essential communications needs. This is what we've built, and the past two quarters are starting to reflect that. Previously, we had not experienced deals of this size. We are entering a new business area with the company. So, in this quarter, especially in the first half, we anticipate significant growth in bookings because we did not have this level before; our past deals were smaller and focused on individual components. You are starting to see the evidence of our integration strategy and our capacity to assemble larger deals that include voice, data, video, security, and hardware components. We have closed five quite substantial deals, and we expect more to come in the future. This is the focal point for our company and our growth strategy. Now we have tangible evidence that supports the notion that customers are inclined to purchase this way.

Okay. And last question for me would just be on the wholesale activity. I think you had two this quarter that you had talked about before. And so that's a relatively new channel, as I understand it. Maybe if you could just go into the opportunity in wholesale and white label a little more deeply and whether that's something that can significantly expand the TAM, grow, and be supportive of accelerated growth maybe, and then I'll pass the line.

I'm going to start with a real quick update on that. So the wholesale channel really is about these large ecosystem partners, whether it's a carrier, a CLEC, or even private healthcare, where you have multiple big hospitals combining together with an ecosystem of special care centers scattered all over the United States. These infrastructures and ecosystems are now being realized through our wholesale channel to be monetized, where the hospital itself, for example, might say, "Hey, we want to have a standard offering for all the special care facilities that are attached to our ecosystem. We want a wholesale price for a bundle for a special care center 1, 2, or 3 depending on their size, and we want to make money off of that." Carriers the same way, right? They're buying our packages. They're wholesaling into their ecosystem of residential customers and small businesses that are attached to. So this idea of leveraging our ability to integrate and sell to the retail channel is now being used for the wholesale channel, which can then use the lower retail or wholesale pricing to monetize their ecosystem. Do you want to add to that, Jim?

Yes. I'd just add, Rob, there are two big players that were in the industry selling soft switches, right, as well, right? So I mean, Microsoft and Metaswitch and where all that went, and then Cisco BroadSoft. And so there are customers that have been on those platforms. They're getting pushed to kind of new business models that don't have the same type of margin that they used to. We've got a really great platform with our wholesale offering. So we're inserting ourselves into that transformation opportunity. The two examples I gave are examples of that; customers that have soft switches, they're looking for something competitive that still holds the kind of margin profile they had in the past. And so they're moving with us as part of that transformation plan.

The next question is from Gavin Fairweather with ATB Cormark.

Maybe just to start out on the bundling and nice to see some more examples of bundled wins. Curious how many of your newer prospects are you seeing that are interested in a bundled solution? And how you're thinking about that opportunity in the base? I mean presumably, a lot of the base would still be components selling. Is there a way for you to move in there and really drive greater upsell momentum?

Yes, that's a great question. I'd say there are three things to think about. One, we've highlighted a few of these larger strategic deals that were kind of that full stack opportunity like we're seeing momentum and success for those. We're very bullish on more of that showing up certainly in our pipeline over the coming quarters. Second is kind of new customers, and we've reorganized our go-to-market to really focus on that integrated proposition, full bundle sales so that our partners are able to go out and sell that full stack solution versus point solutions. So those are two parts of our plan. The third component, which you're highlighting, is we have a lot of customers that are single-threaded with one single offer. We have a team very specifically that is using some new AI tools to examine analytically that base, use data models to look at where within those existing customers and partners the opportunity to cross-sell and upsell may be. That's a motion that the team is running now. We do a bit of upselling, I would say, today, not as much as I would like. But on a go-forward basis, we expect to see a pretty significant increase in the cross-sell and upsell for two reasons: one, we've really put a focused team around it, and two, we are using some data models and AI tools to help us target those clients.

We've also made it easier through our coding tools to give our partners the opportunity to pick and choose from a menu of different items that they really couldn't do before, and we can present them now on a more concise bill. These two components that you've been hearing me talk a lot about were prerequisites to be able to do this, and as more and more partners begin to understand that this tool is now there, there's kind of an easy button to put pieces together, the bundling proposition becomes way more attractive because it's larger commission for them.

Great. And then just on partner maturity. I know you narrowed down your network of partners to a bit over 1,000. I'm wondering, is the read-through from the bookings that we're seeing that the partner network has really kind of hit maturity and is quite effective? Or do you think that there's further partner enablement that you can do to help get to a new level?

I think there are two things. One, the continued growth within the existing partner ecosystem because we're far more strategic with them, and we've given them tools to allow them to see the breadth of the entire portfolio of Sangoma. Secondly, there is a much more focused effort on new partners because we've narrowed not only our partners, but we're also narrowing our focus, at least for the foreseeable fiscal year, which is to win and dominate in four verticals where we're very strong: healthcare, education, retail, and hospitality. In those environments, we're acquiring new partners who specialize in these fields. We're also partnering up with a software vendor who is very much entrenched in these verticals, whether it's Jazzware in hospitality or QuickLaunch in education that we've had press releases on, where the partner ecosystem will continue to expand, but now with much more precision than we had in the past, where it was just a holistic set of partners who can advocate for us and sell any one of our solutions. We're much more precise. So you'll see deeper entrenchment with our existing narrowed-down partner group, and you'll see an expansion of the partner ecosystem along the vertical lines that I described.

Maybe just lastly on churn. I did notice the change in language from 1% to just under 1%. I think last quarter, you talked about some non-ideal customers churning out that had been on three-year contracts. I'm curious if a lot of that is now flushed through the system, or do you think that churn could move lower here in the coming quarter?

I think we have a little bit of room to improve, Gavin, for a couple of reasons. One is some of the more challenging accounts have moved through the system. The second is, similar to what I mentioned before about data models to cross-sell and upsell, we have some new AI tools, again, data models to help us target some customers that might have a higher churn propensity. We're getting more proactive with those customers to offer more for the same to protect that base and use it as an opportunity to cross-sell and upsell.

I don't have a problem just telling you we're putting money into churn reduction; something we can't control, like macroeconomic issues, things such as businesses shutting down or what have you. We're not seeing that as a major part of our business. But there are also ways we can get proactive with customers, early renewals, things of that nature. I set a pretty bold target. I want 0.85%. We were at 0.96%. We should be focusing on trying to push churn down as much as we possibly can. We've got a lofty goal to try and go after; it's a very important part of our revenue plan and the way we handle LTV in this company. As we're going after larger deals, churn is an important metric and is a very important priority for me, for what we're putting our money into to invest in this company.

The next question is from David Kwan with TD Securities.

I just want to clarify one quick thing. Just on the revenue guidance. It sounds like you still think you're expecting to grow year-over-year, excluding VoIP Supply starting in Q3 and then continuing into Q4 in addition to growing sequentially?

That's correct.

Okay. Perfect. And as it relates to the product revenue, I think there was talk about expecting some higher hardware product sales in Q3. Should we assume that the gross margins probably are coming down a bit sequentially because of that due to revenue mix?

No, I don't think so. We're expecting our margins to be stable as we enter Q3. In Q4, even if there are some changes in the mix, I would still expect them to remain stable.

A bit of the product mix is just coming from some of those larger strategic deals, and there's a bit of NRR upfront associated with them. So we expect a little bit of a shift, but it's really tied to the NRR associated with the MRR business.

That's right.

Right. Perfect. Regarding the growth investments, I recall you mentioned about the $2 million from last quarter related to the go-to-market investments. This was mentioned in the context of the upcoming quarters. We also observed a significant increase in sales and marketing, which was anticipated, but there was also notable spending in the G&A area. Could you elaborate on what this spending was directed towards? Additionally, did you possibly accelerate this spending due to the increase we experienced this quarter in operational expenses? Should we consider Q2 as the new baseline for our forecasts?

Yes. It's a combination of things, actually, David. So we did have some increased commissions in the quarter for some of the new bookings that we had. Excuse me, just the timing. We also had also in timing, some tax-related items that hit G&A this quarter. Nothing unusual, and that will fluctuate a little bit as we move forward, but not by much. I would expect that we're in line with where we've been and that, that trend will continue for both G&A and sales and marketing. In light of the investments that we've made, I think we'll be right in line with that.

Okay. Great. And just one last question. Curious what you're seeing in the M&A market. Obviously, we've seen some pretty significant downdrafts here in the software market in particular. So curious to see what you're seeing from an M&A perspective as you look at maybe adding some tuck-in acquisitions.

When we started this journey two years ago, you heard me say this, David, a number of times, the whole idea was to set the company up for optionality on what we perceive to be a market that will be under pressure because of some of the extraneous factors, some of them technically related around AI, some of them commoditization because there are a lot of players in the industry. I think it's an opportune time. We're seeing a lot of opportunities in the marketplace, both small scale and larger scale. We're seeing valuations come down; we're seeing our valuation beginning to level-set with where the market was two years ago, which gives us even greater opportunity to get off our balance sheet position. We're seeing it across the spectrum, companies of all sizes and scales and of all dimensions that really add value to our platform, whether it's vertically oriented software companies, MSPs, which have really come down in valuation, hardware companies, but we're not really interested in those, but security players and even distribution scale companies in our space, in the communications space, in the call center space. These are all areas where it would be valuable to the platform, given the platform is now integrated and has come down in valuation, that we can take advantage of. As I said in my comments, leveraging scale as a strategic option for the company because the balance sheet is now in a position that enables us to do so. I think it's an opportune time; the market is providing. I've seen this movie three or four times in my career where the industry offers opportunities, and those who have strong balance sheets and good financial discipline can take advantage of the discontinuities occurring in the industry, and the M&A world is providing that opportunity as we speak. So we're seeing it across the spectrum.

The next question is from Suthan Sukumar with Stifel Canada.

Congrats on the quarter. For my first question, I wanted to talk about the partner ecosystem. It sounds like the post all the changes and investments you guys have made, the partner channel sounds like it's humming quite nicely here. Can you talk a little bit about the level of partner engagement and contribution to bookings growth versus your direct sales organization this quarter? And what are some of the metrics you look at to measure performance here on an ongoing basis?

Yes. Thanks, Suth. I mean a couple of things. The bulk of our revenue outside some of the sort of carrier trunking and other things we do are partner-driven, right? So when you hear me talk about the bookings increase, the large TCV deals we've signed, those have all come through partners, really the combination of new, more strategic partners. Some of them are oriented around the verticals that Charles mentioned earlier. Then others are just new partners, right, that are enticed by the bundles that we have and getting out in front of their customers with that integrated value proposition. Our partner program from a metrics perspective really centers on are we signing up the right new partners, how quickly are those partners quoting, and how quickly are those partners getting to win. So we kind of track the lifecycle of our partners to see if they're the right strategic fit. They are able to represent our value proposition well to customers, and they’re quoting and closing business for us. We keep a pretty close and kind of intimate eye on our partnerships and want to make sure we put all the right partner programs and support in place to help them grow because it helps us grow.

That's great. For my second question, I want to discuss the on-prem component of your current pipeline. How is that segment performing now? Additionally, what are your thoughts on the conversion of that pipeline over the course of this year? I'm interested in how this opportunity is aligning with your initial expectations.

Yes. We continue to see our Prem UC business and Prem PBX up. It's been up every year-over-year for the last number of quarters. We've got great momentum there. We're typically seeing the share come from both Avaya and Mitel. Those are the places we've been hunting, like we're a little more oriented around small, medium business, and that's kind of where our product sits. It drives both our prem solution as well as some of our phones. So it's continued to have strong momentum for us. There is an absolute market for prem solutions out there, certain customer profiles, sometimes in government, education, and others that want that solution, and we continue to see momentum there. So we're pretty bullish on continuing to take share and grow in that space.

Okay. Great. Just one last question for me. Just on the overall booking strength this quarter and heading into Q3. How do you guys think about that conversion of bookings to revenues over the course of the year? I mean, to me, it sounds like these are some significantly larger projects than you've dealt with in the past. So it feels like there are more moving pieces than you might be used to, but just kind of curious what you're assuming here.

These types of deals do take time to roll out, like the one Jeremy mentioned that we won this quarter. It's 300-plus locations. There's a deployment of equipment at every location. An installing partner has got to be on site. You work as quickly as you can with the client in combination with them to coordinate, dispatch, install, and test. We've got a pretty good machine running now. Joel Kappes, who runs our provisioning team, has a well-trained project management organization that knows how to thoughtfully and efficiently execute on these to roll out and convert revenue as quickly as possible. Not only for our sake, obviously, because we want the revenue as quickly as possible, but customers want to move that fast too. Once they understand the value prop that this is going to standardize their network stack, lower their TCO, they want to move quickly. So you've got a motivated customer, and you've got a motivated company. Jeremy and the team have done an excellent job of building the infrastructure, the process, the systems, the tooling, and the competency to execute on these larger transactions. We see revenue dropping consistently from quarters of deals done in the previous quarters. There'll be a natural wave that keeps building, wave upon wave, as bookings go up, revenue drops from deals we may have signed two or three quarters ago. Our goal is to be much more transparent so you can see those bookings coming through, you understand the translation to revenue, you understand the provisioning cycle. Within eight to ten months or so, depending on the size of the deal, you're going into full throttle for three to five years. When you combine that with a churn rate of below 1% or 0.96% where we're at now, the LTV becomes very compelling. So you take the $11 million that Jeremy talked about; at those churn rates, you’re going to assume they churn three times. That's a $30 million TCV as long as you can keep customer service and all those things up. That’s how we see it.

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.