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A sign of steady stewardship is when a change of stewards doesn’t disrupt the business. Sinch’s first earnings call under Acting CEO Jonas Dahlberg delivered on results and provided a progress update on an established strategy. It was a healthy mix of no-drama updates, new-product previews, and well-known challenges.
Organic revenue growth accelerated to 6%, Americas grew 9%, and free cash flow reached ~ $77.4M. Cross-selling accounted for five of the ten largest new deals. After repurchasing 15% of its shares over the past year, the company authorized another buyback of up to 10%.
Margin pressure is showing again. Organic gross profit grew only 2%. API platform revenue grew 9.1% organically, while its gross profit declined 0.6%. Network Connectivity revenue was essentially flat, but gross profit grew 16%.
Revenue growth is moving toward the products Sinch wants to emphasize. Profit growth is still coming from the old network.
The Good
Americas now represents 66% of group gross profit and is carrying the growth story.
Organic revenue grew 9%, gross profit grew 10%, and API revenue grew in the mid-teens, led by messaging and email. Acting CEO Jonas Dahlberg said that if Americas maintains its current pace while EMEA and APAC remain flat, Sinch will get close to its 2027 growth target.
That concentration cuts both ways. With EMEA and APAC ‘in repair’, the Americas have little room for execution errors.
For all the attention paid to RCS and Voice AI, email was the most important product story in the presentation.
Sinch delivers more than 850B emails annually, with volume growing 21% YoY. The platform reports 99.99% uptime, a 97% delivery rate, and peak throughput above 6M emails per minute. More importantly, Jonas said email has delivered double-digit revenue and gross profit growth for several years, and it contributes roughly the same EBITDA as messaging. Email is, therefore, one of Sinch’s largest software businesses, even if the reporting still buries it inside the broader portfolio.
The AI-native strategy is also more concrete than its current revenue contribution suggests.
OpenAI, Lovable, and Cursor are all customers. Sinch is reaching the segment directly, through native integrations and resellers, along with marketplaces. Jonas acknowledged that Twilio often reaches the developer first, while Sinch expects to enter later, when the customer needs scale, reliability, compliance, and enterprise support. More on this later.
The strategy assumes that AI startups eventually graduate to Sinch.
That broader distribution logic may also help explain Infobip’s recent acquisition. CPaaS vendors are competing not only for traffic but also for distribution inside the environments where agents are built. (See sidebar.)
Sidebar: Is SaaS Really Dead?
SaaS is not dead. SaaS as web-based CRUD is.
The old bargain was simple: Upload your contacts, customer data, campaigns, and workflows into my system, and then pay me to manage them. The application’s website became the destination. This model is breaking.
Thanks to AI, CRUD (Create-Read-Update-Delete) behind a web interface is no longer enough to earn the prized position of enterprise system of record. The pressure is to be where work happens. The SaaS that survives meets users where they work, operates where their data already lives, and integrates with the systems where business gets done.
In the agentic future, those are also the environments where agents are being built.
That is why the Cursor marketplace relationship makes sense. Developers are already building there, so Sinch does not need to pull them into another dashboard. It needs to make messaging, voice, verification, and compliance available inside the environment where the agent is created.
“Connect your agent” is replacing “upload your contacts.”
The Interesting
Sinch’s three-year integration effort is beginning to appear in customer buying behavior.
Five of its ten largest new Q2 deals involved additional products sold to existing customers. The combinations included Voice, Toll-free, and WhatsApp; Engage App with Messaging Conversation API; Numbers Lookup; Voice API; and SMS.
Deal counts are not the same as retention data, but they do show that products acquired and developed separately are beginning to appear in the same customer relationships.
Sinch also said it is ready for M&A again after spending three years integrating the previous acquisition wave. Management described two paths: category consolidation, where greater scale creates cost advantages, and capability acquisitions that improve Sinch’s position in an AI-driven market.
The company has earned the right to look again. Its history should also make it unusually selective.
The Unknown
The biggest unknown is Voice AI, not because Sinch lacks a strategy, but because its competitors already have numbers.
Twilio and Bandwidth, the number one and number three players, are reporting clear Voice AI momentum. Sinch says it is also seeing high percentage growth, but from a small base, and Jonas acknowledged that AI voice is not yet contributing meaningfully to current growth.
Twilio reaches developers earlier; Bandwidth is more specialized in voice; and Sinch expects to become more competitive when the workloads require enterprise-grade scale, compliance, reliability, and support. This strategy assumes customers will tolerate switching costs or that the savings will be enough to justify them. Missing out on “top of funnel” may have worked pre-AI, but today Sinch has to overcome its weak developer mindshare and show how it captures developers on Day 0.
APAC remains unresolved. Sinch believes it is fully provided for the India customer dispute, but margin pressure in Australia continues. The company still sees a long-term opportunity in India as adoption of RCS and WhatsApp grows, though that opportunity is not showing up in group results today.
Finally
Last quarter, I said the Sinch pit crew was humming but still waiting for a Product turbo boost. Q2 suggests I may have been looking at the wrong engine.
Email already delivers double-digit revenue and gross profit growth, generates roughly the same EBITDA as messaging, and sends more than 850B messages a year. Americas is working, cross-sell is beginning to appear, and the buyback is producing the intended per-share benefit.
This is still not the clean product-led recovery management wants it to become. API gross profit has to follow API revenue, cross-sell has to show up in retention, and Sinch has to explain why the Voice AI wave is lifting Twilio and Bandwidth first.
Email may already provide the economics Sinch wants from the rest of its portfolio. The next test is whether Voice AI and the broader API business can begin to match it.