Strong demand in India drives 14% year-over-year revenue growth
ROSH HA'AIN, Israel, Aug. 11, 2026 /PRNewswire/ -- Ceragon $(CRNT)$, a leading solutions provider of end-to-end wireless connectivity, today reported its financial results for the second quarter period ended June 30, 2026.
Q2 2026 Financial Highlights:
-- Revenues of $93.9 million
-- GAAP Operating income of $0.2 million, non-GAAP operating income of $4.0
million
-- GAAP Net loss of $2.1 million, non-GAAP net income of $1.7 million
-- GAAP EPS of ($0.02) per diluted share, non-GAAP EPS of $0.02 per diluted
share
Q2 2026 Business Highlights:
-- India -- Sequentially higher revenue and strong bookings (approximately
$120 million in announced year-to-date bookings in July) have increased
visibility for the remainder of 2026; notable interest in E-band
solutions
-- North America -- Demand remained robust with record quarterly bookings in
private networks
CEO Doron Arazi commented: "Our second quarter reflects the benefits of the strategy we've been executing over the past several years. Demand remains healthy across multiple end markets, and we're seeing momentum from both our traditional carrier business and newer growth areas such as private networks and managed services. Just as importantly, the quality of our opportunities and customer engagement, gives us confidence in the outlook for the balance of the year, as described below."
"Customer demand remains healthy, and our competitive position continues to improve, despite near-term industry-wide cost and supply chain pressures," continued Mr. Arazi. "Our E-band solutions are generating particular interest from customers and represent a strong competitive differentiator. Our recent field trial success with our 5G FR2 (mmWave) product for a new Tier 1 North American carrier points to our continued innovation that drives increased demand for our technology. Strong bookings and growing interest from new and existing customers reinforce our confidence in Ceragon's technology, innovation roadmap, and long-term growth prospects."
Primary Second Quarter 2026 Financial Results:
Revenues were $93.9 million, up 14.2% from $82.3 million in Q2 2025.
Gross profit was $29.7 million, or a gross margin of 31.7%, compared to gross margin of 34.6% in Q2 2025.
GAAP Operating income was $0.2 million compared with $2.2 million for Q2 2025.
GAAP Net income (loss) was ($2.1) million, or ($0.02) per diluted share, compared with ($1.3) million, or ($0.01) per diluted share for Q2 2025.
Non-GAAP results were as follows: Gross margin was 32.2%, operating profit was $4.0 million, and net income was $1.7 million, or $0.02 per diluted share.
Balance Sheet
Cash and cash equivalents were $34.8 million on June 30, 2026, compared to $38.4 million on December 31, 2025.
For a reconciliation of GAAP to non-GAAP results, see the attached tables.
Revenue Breakout by Geography:
Q2 2026
-------------- -------
India 48 %
-------------- -------
North America 22 %
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EMEA 13 %
-------------- -------
Latin America 9 %
-------------- -------
APAC 8 %
-------------- -------
Outlook
Management updated its 2026 outlook as follows:
-- Revenue of $355 million to $385 million
-- Non-GAAP gross margin is expected to be between 33.5% - 34.5% vs. 35.5%
previously at the midpoint of the provided revenue guidance range
-- Non-GAAP operating margin is expected to be between 5% - 6% vs. 6.5% -
7.5% previously at the midpoint of the provided revenue guidance range.
Conference Call
The Company will hold a Zoom webcast today at 8:30 a.m. ET to review the results, followed by a Q&A session.
Investors are invited to register by clicking here. All relevant access details will be provided upon registration.
For investors unable to join the live call, a replay will be available on the Company's website at www.ceragon.com
About Ceragon
Ceragon (NASDAQ: CRNT) is the global innovator and leading solutions provider of end-to-end wireless connectivity, specializing in transport, access, and AI-powered managed & professional services. Through our commitment to excellence, we empower customers to elevate operational efficiency and enrich the quality of experience for their end users.
Our customers include service providers, utilities, public safety organizations, government agencies, energy companies, and more who rely on our wireless expertise and cutting-edge solutions for 5G & 4G broadband wireless connectivity, mission-critical services, and an array of applications that harness our ultra-high reliability and speed. Ceragon solutions are deployed by more than 600 service providers, as well as more than 1,600 private network owners, in more than 130 countries. Through our innovative, end-to-end solutions, covering hardware, software, and managed & professional services, we enable our customers to embrace the future of wireless technology with confidence, shaping the next generation of connectivity and service delivery. Ceragon delivers extremely reliable, fast-to-deploy, high-capacity wireless solutions for a wide range of communication network use cases, optimized to lower TCO through minimal use of spectrum, power, real estate, and labor resources -- driving simple, quick, and cost-effective network modernization and positioning Ceragon as a leading solutions provider for the "connectivity everywhere" era.
For more information please visit: www.ceragon.com
Ceragon Networks$(R)$ and FibeAir(R) are registered trademarks of Ceragon Networks Ltd. in the United States and other countries. CERAGON (R) is a trademark of Ceragon, registered in various countries. Other names mentioned are owned by their respective holders.
Safe Harbor
This press release contains statements that constitute "forward-looking statements" within the meaning of the Securities Act of 1933, as amended and the Securities Exchange Act of 1934, as amended, and the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on the current beliefs, expectations and assumptions of Ceragon's management about Ceragon's business, financial condition, results of operations, micro and macro market trends and other issues addressed or reflected therein. Examples of forward-looking statements include, but are not limited to, statements regarding: projections of demand, revenues, net income, gross margin, capital expenditures and liquidity, competitive pressures, order timing, supply chain and shipping, components availability; growth prospects, product development, financial resources, cost savings and other financial and market matters. You may identify these and other forward-looking statements by the use of words such as "may", "plans", "anticipates", "believes", "estimates", "targets", "expects", "intends", "potential" or the negative of such terms, or other comparable terminology, although not all forward-looking statements contain these identifying words.
Although we believe that the projections reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations there from will not be material. Such forward-looking statements involve known and unknown risks and uncertainties that may cause Ceragon's future results or performance to differ materially from those anticipated, expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to: Company's forward-looking forecasts, with respect to which there is no assurance that such forecasts will materialize; Company's ability to future plan, business, marketing and product strategies on the forecasted evolution of the market developments, such as market and territory trends, future use cases, business concepts, technologies, future demand, and necessary inventory levels; the effects of fluctuations in currency exchange rates between the currencies in which we operate; risks relating to the conversion of the orders from customers into revenues; the effects of global economic trends, including recession, rising inflation, rising interest rates, commodity price increases and fluctuations, commodity shortages and exposure to economic slowdown; risks related to conditions in Israel and the continuation of hostilities in the Middle East; risks associated with delays in the transition to 5G technologies and in the 5G rollout; risks relating to the concentration of our business on a limited number of large mobile operators and the fact that the significant weight of their ordering, compared to the overall ordering by other customers, coupled with inconsistent ordering patterns, could negatively affect us; risks resulting from the volatility in our revenues, margins and working capital needs; disagreements with tax authorities regarding tax positions that we have taken could result in increased tax liabilities; the high volatility in the supply needs of our customers, which from time to time lead to delivery issues and may lead to us being unable to timely fulfil our customer commitments; and such other risks, uncertainties and other factors that could affect our results of operations, as further detailed in Ceragon's most recent Annual Report on Form 20-F, as published on April 15, 2026, as well as other documents that may be subsequently filed by Ceragon from time to time with the Securities and Exchange Commission.
We caution you not to place undue reliance on forward-looking statements, which speak only as of the date hereof. Ceragon does not assume any obligation to update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release unless required by law.
While we believe that we have a reasonable basis for each forward-looking statement contained in this press release, we caution you that these statements are based on a combination of facts and factors currently known by us and our projections on the future, about which we cannot be certain. In addition, any forward-looking statements represent Ceragon's views only as of the date of this press release and should not be relied upon as representing its views as of any subsequent date. Ceragon does not assume any obligation to update any forward-looking statements unless required by law.
The results reported in this press-release are preliminary and unaudited results, and investors should be aware of possible discrepancies between these results and the audited results to be reported, due to various factors.
Ceragon's public filings are available on the Securities and Exchange Commission's website at www.sec.gov and may also be obtained from Ceragon's website at www.ceragon.com.
Investor Contact:
Rob Fink
FNK IR
Tel. +1-646-809-4048
crnt@fnkir.com
Joey Delahoussaye
FNK IR
Tel. +1-312-809-1087
crnt@fnkir.com
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except share and per share data)
Three months ended Six months ended
June 30, June 30,
---------------------- ----------------------
2026 2025 2026 2025
---------- ---------- ---------- ----------
Revenues 93,914 82,262 178,917 170,914
Cost of revenues 64,187 53,822 119,114 113,375
---------- ---------- ---------- ----------
Gross profit 29,727 28,440 59,803 57,539
---------- ---------- ---------- ----------
Operating expenses:
Research and
development, net 8,405 7,332 16,346 15,581
Sales and Marketing 12,909 11,722 26,899 24,019
General and
administrative 6,823 6,940 12,343 12,376
Restructuring and
related charges 1,120 - 1,660 3,732
Acquisition- and
integration-related
charges 233 229 233 704
---------- ---------- ---------- ----------
Total operating
expenses 29,490 26,223 57,481 56,412
---------- ---------- ---------- ----------
Operating income 237 2,217 2,322 1,127
Financial and other
expenses, net 1,663 2,896 4,519 1,906
---------- ---------- ---------- ----------
Income (loss) before
taxes (1,426) (679) (2,197) (779)
Taxes on income 665 588 1,237 1,468
---------- ---------- ---------- ----------
Net income (loss) (2,091) (1,267) (3,434) (2,247)
========== ========== ========== ==========
Basic net income
(loss) per share (0.02) (0.01) (0.04) (0.03)
========== ========== ========== ==========
Diluted net income
(loss) per share (0.02) (0.01) (0.04) (0.03)
========== ========== ========== ==========
Weighted average
number of shares
used in computing
basic net income
(loss) per share 91,033,749 89,470,719 90,872,376 89,108,772
========== ========== ========== ==========
Weighted average
number of shares
used in computing
diluted net income
(loss) per share 91,033,749 89,470,719 90,872,376 89,108,77
========== ========== ========== ==========
CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
June 30, December 31,
2026 2025
--------- ------------
ASSETS
-----------------------------------------------
CURRENT ASSETS:
-----------------------------------------------
Cash and cash equivalents 34,771 38,368
Trade receivables, net 101,283 99,673
Inventories 59,459 61,587
Other accounts receivable and prepaid expenses 24,564 25,576
--------- ------------
Total current assets 220,077 225,204
--------- ------------
NON-CURRENT ASSETS:
-----------------------------------------------
Severance pay and pension fund 430 362
Property and equipment, net 41,065 39,952
Operating lease right-of-use assets 16,003 16,554
Intangible assets, net 24,525 23,182
Goodwill 11,007 11,007
Other non-current assets 669 781
--------- ------------
Total non-current assets 93,699 91,838
--------- ------------
Total assets 313,776 317,042
========= ============
LIABILITIES AND SHAREHOLDERS' EQUITY
-----------------------------------------------
CURRENT LIABILITIES:
-----------------------------------------------
Trade payables 74,173 70,784
Deferred revenues 1,300 2,371
Short-term loans 12,004 19,000
Operating lease liabilities 4,061 4,001
Other accounts payable and accrued expenses 27,251 24,071
--------- ------------
Total current liabilities 118,789 120,227
--------- ------------
LONG-TERM LIABILITIES:
-----------------------------------------------
Accrued severance pay and pension 2,557 2,537
Operating lease liabilities 12,715 13,331
Other long-term payables 7,665 8,195
--------- ------------
Total long-term liabilities 22,937 24,063
--------- ------------
SHAREHOLDERS' EQUITY:
-----------------------------------------------
Share capital 234 234
Additional paid-in capital 457,690 454,640
Treasury shares at cost (20,091) (20,091)
Accumulated other comprehensive loss (9,134) (8,816)
Accumulated deficit (256,649) (253,215)
--------- ------------
Total shareholders' equity 172,050 172,752
--------- ------------
Total liabilities and shareholders' equity 313,776 317,042
--------- ------------
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(U.S. dollars, in thousands)
Three months ended Six months ended
June 30, June 30,
-------------------- ------------------
2026 2025 2026 2025
--------- --------- -------- --------
Cash flow from operating
activities:
Net income (loss) (2,091) (1,267) (3,434) (2,247)
Adjustments to reconcile net
income (loss) to net cash
provided by operating
activities:
Depreciation and amortization 3,471 3,632 6,905 6,964
Loss from sale of property and
equipment, net 52 - 122 10
Stock-based compensation
expense 1,755 1,549 2,647 2,199
Decrease (increase) in accrued
severance pay and pensions,
net (85) 30 (48) 77
Decrease (increase) in trade
receivables, net (6,838) 21,778 (1,537) 28,162
Decrease (increase) in other
assets (including other
accounts receivable, prepaid
expenses, other non- current
assets, and the effect of
exchange rate changes on cash
and cash equivalents) (461) (1,179) 755 (2,319)
Decrease (increase) in
inventory (2,269) 2,206 1,561 127
Decrease in operating lease
right-of-use assets 1,182 1,323 2,135 2,054
Increase (decrease) in trade
payables 9,255 (13,961) 3,081 (18,045)
Increase (decrease) in other
accounts payable and accrued
expenses (including other
long-term payables) 3,666 (3,285) 2,620 (2,531)
Decrease in operating lease
liability (1,161) (90) (2,140) (915)
Increase (decrease) in
deferred revenues (1,410) 26 (1,071) (164)
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