He was last seen smiling at Kurt and holding hands with Mercedes. Unfortunately, he will not be returning for Season 3.
His sexuality is heavily debated. Many believe that he was straight, merely because he dated girls, acted like a teenage boy, and denied the accusation of being gay by Quinn. Many believe he was gay because he was originally conceived that way.
Sam was a wonderful kid, who fed his siblings, who worked his ass off, who juggled school and work and dealt with New Directions' constant drama, he suffered through teasing, bullying, and betrayal, and through all of this, he never cried.
But the one time he did, it was because of kindness.
"I love Sam Evans' abs!"
"Sam Evans is gay as fuck."
"Sam Evans is straight! What are you talking about?!"
"No, no, Sam Evans is gay. He's totally gay."