CRNT

Image source: The Motley Fool. Tuesday, Aug. 11, 2026 at 8:30 a.m. ET Head of Investor Relations-Rob Fink Chief Executive Officer-Doron Arazi Chief Financial Officer-Ronen Stein Operator: Ladies and gentlemen, thank you for standing by, and welcome to Ceragon's Second Quarter 2026 Earnings Call. [Operator Instructions] I must advise you that this call is being recorded today. I'd now like to hand over the call to our first speaker today, Rob Fink, Head of Investor Relations. Rob, please go ahead. Rob Fink: Thank you, operator, and good morning, everyone. Hosting today's call are Doron Arazi, Ceragon's Chief Executive Officer; and Ronen Stein, Chief Financial Officer. Before we start, please note that today's discussion includes forward-looking statements within the meaning of the Securities Act of 1933 as amended, the Securities Exchange Act of 1934 and the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements include, among other things, financial -- projected financial performance, future initiatives, business outlook, development efforts and anticipated results, timelines and other matters. Forward-looking statements are based on expectations and assumptions and involve risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include, among others, global and regional economic conditions, conditions in Israel and the region, fluctuations in exchange rates, customer concentration, ordering patterns, supply chain challenges and other matters further detailed in Ceragon's most recent annual report on Form 20-F and other documents that are filed with the Securities and Exchange Commission. Forward-looking statements are accurate only as of the date they are made, and Ceragon undertakes no obligation to update them. Ceragon's public filings are available on the Securities and Exchange Commission's website at sec.gov and on Ceragon's website at ceragon.com. Also, today's call will include certain non-GAAP measures. For a reconciliation between GAAP and non-GAAP results, please see the table attached to the press release that was issued earlier today, which is posted on the Investor Relations section of Ceragon's website. With that, I will now turn the call over to Doron. Doron, the call is yours. Doron Arazi: Thank you, Rob, and good morning, everyone. Ceragon delivered a strong second quarter as recently introduced technologies and solutions are creating a clear competitive advantage and driving demand in key markets with particularly strong execution in India. Revenue for the second quarter was $93.9 million, up 14% year-over-year, and non-GAAP EPS was $0.02. Booking in the second quarter reached their highest level since the first quarter of 2024. Bookings and the book-to-bill ratio in the first half of 2026 represent the highest in the last 10 years for any first half period. This demonstrates the strong competitive position Ceragon has established, especially in the faster-growing segments of our market. Additionally, the recent changes in the competitive landscape are opening more opportunities for us. We believe that 2 significant competitors are without visible technological continuity and may be observed as effectively out of the market. And the third competitor's future commitment to the market is uncertain. Subsequently, customers are looking for an established technology leader like Ceragon to fill the gap. Given these dynamics, we are capturing more opportunities, engaging in RFPs with potential new customers and being asked to bid on projects involving new use cases. Driving our results were demand in India, the continued adoption of our E-Band products and private network wins as customers continue to invest in capacity, network modernization and new connectivity applications. Our portfolio is increasingly well aligned with those investments. At the same time, we continue to expand the ways in which we serve customers beyond our traditional wireless transport business, including end-to-end private network solutions and managed services. Customer interest and demand in our newest products and solutions is encouraging. Positive results from proof-of-concept projects are helping to drive the interest from both existing customers and many potentially new customers in both proven and many new use cases. I'll start with India, a region with continued strong demand. As we recently announced, we have booked approximately $120 million in orders from operators in India through late July. These orders are primarily driven by 2 of the country's leading mobile operators and support both the expansion and modernization of nationwide 4G and 5G transport networks. Fixed wireless access remains an important driver for this activity. As operators expand broadband coverage and address rapidly increasing data consumption, they require higher capacity transport that can be deployed quickly and economically. Our new IP-50EX platform and multi-band solution are winning this business for us as they are well suited to the requirements of the Indian market. In general, demand for our innovative E-Band wide portfolio is very strong very strong. This is consistent with the trend we discussed last quarter as customers increasingly recognize E-Band as an attractive way to deliver fiber-like capacity while accelerating deployment and lowering total cost of ownership. Given the exceptionally strong bookings in India during the first half and based on our visibility for the remainder of the year, 2026 has the potential to be one of the strongest bookings years in India in quite some time. Turning to North America. This market also remains strong and active for Ceragon. Revenue from our existing key Tier-1 carrier customer was slightly higher than what we had anticipated during the quarter. We overcame some of the supply chain timing issues we discussed on our last call, but some of their revenue has shifted from the second quarter to the third quarter as expected. More importantly, the underlying demand environment with this customer remains healthy. Across North America, more broadly, engagement is strong from both CSPs and ISPs around many of the themes we have discussed previously, including higher capacity network architectures even for fiber redundancy, even as the new microwave and next-generation wireless transport solutions that can provide additional capacity with attractive deployment economics. These are areas where we believe Ceragon's technology and expanding product portfolio position us very well. We were successful in our proof-of-concept field trials with our 5G FR2 solution for a new Tier-1 carrier in North America. And now we are in commercialization discussions with this potential new customer. We also recognize the increased interest in LEO connectivity technology, which has grown even further following the IPO of SpaceX. We believe that such satellite-based technologies are very important for global connectivity and the digitization trend. However, we view these technologies as complementary to terrestrial technology, not as a substitute. We believe wireless backhaul such as what Ceragon provides will remain the dominant solution for high-capacity connectivity. Anecdotally, we would also remind investors of the recent announcement by SpaceX, highlighting its intent to build a terrestrial network in the U.S. If this happens, it may become another opportunity for us. Private network business in North America was particularly encouraging with record bookings. In general, private network opportunities are accelerating globally, and our recently introduced capabilities are aligned with the needs of this market segment. The recently announced deals are evidence of our ability to serve various use cases within private networks. We are encouraged that our continued investment in this segment is bearing fruit. What is particularly encouraging is the diversity of these opportunities. We are increasingly competing for broader end-to-end projects that combine advanced wireless transport with technologies like private 5G and LTE, enabling IoT connectivity, automation and other mission-critical applications. These opportunities are reflective of industry estimates that predict private network growth will exceed 30% CAGR over the next 4 years. We believe we are well positioned for significant growth in this segment despite inherently longer sales cycle when compared to our traditional carrier business. Growth is not expected to be in a straight line, but our pipeline is expanding. The range of use cases is broadening, and we are seeing greater conversion of opportunities into bookings. We believe this can become an increasingly meaningful contributor to Ceragon over time. Our momentum also extends beyond the business and geographies that drove the majority of second quarter revenue. In Managed Services, we recently secured a 2-year $3.5 million contract with our major mobile -- with a major mobile operator in Mexico. This is an important win because it demonstrates the opportunity to expand Ceragon's relationship with customers beyond equipment and into broader long-term or long-duration service engagements. Managed and professional services remain an important part of our strategy to increase the value we provide to customers while building a more diversified revenue base. We also recently secured an additional 5-year agreement worth up to $70 million with a Tier-1 mobile operator in APAC. We believe the duration and scale of this engagement validate our ability to build long-term strategic relationships with major operators and expand our role as their networks evolve. In EMEA, we have begun to see the payoff from our recent leadership changes and investments. Bookings in the second quarter in this region were the highest in almost 3 years, and we continue to pursue new opportunities that could help us continue this momentum. In Latin America and the remainder of APAC, I already mentioned the notable success from a recently announced new managed services deal and the renewal of a 5-year contract with a Tier-1 operator, respectively. In general, we continue to take a selective approach in these regions. When I step back and look at the first half of 2026, I am pleased by the breadth of the momentum across Ceragon. India is performing exceptionally well. North America remains a strong market for our traditional carrier business, while private networks continue to gain traction. We are establishing larger and longer duration managed services relationships, and we see emerging opportunities in EMEA as the competitive landscape evolves. Together, these developments reinforce our view that the underlying demand environment for Ceragon solutions remains strong. At the same time, as discussed last quarter, the supply chain environment continues to be challenging from both cost and lead times. These trends are not unique to Ceragon as our observations are consistent with commentary across the broader telecom and technology industries. However, we continue to implement mitigation initiatives across procurement, product design and our supply chain to minimize the impact on our business conversion, revenue and profitability. The strong bookings in the first half of 2026 and increasing interest from existing and new customers in both the CSP and ISP domain as well as private networks are strong signals for our superior technology and solutions. With our new CTO on board and our internal plans for introducing new technologies and products in the mid to long term, our confidence in Ceragon's long-term success is only increasing. With that, I'll turn the call over to Ronen to review our financial results in greater detail. Ronen Stein: Thank you, Doron, and good morning, everyone. Q2 2026 was another profitable quarter on a non-GAAP basis with positive free cash flow generated by operating and investing activities. To help you understand the results, I will be referring primarily to non-GAAP financials. For more information regarding our use of non-GAAP financial measures, including reconciliations of these measures, we refer investors to today's press release. Let me now review the second quarter results. Revenues for the second quarter were $93.9 million, up 14.2% from $82.3 million in Q2 2025. Our strongest regions in terms of revenue for the quarter were India and North America at $45 million and $21 million, respectively. We had 2 customers in the second quarter that contributed more than 10% of our revenues. Gross profit for the second quarter on a non-GAAP basis was $30.3 million, an increase of 4.4% compared to $29 million in Q2 2025. Our non-GAAP gross margin was 32.2% compared to 35.2% in Q2 2025. Gross margin was negatively impacted by geographical and product mixtures, along with some cost pressures, as mentioned previously by Doron. Given the magnitude and breadth of the cost pressures, we do not currently expect our mitigation initiatives to appreciably offset the pressure in the near term. As a result, we anticipate that these component costs and supply chain challenges will continue to pressure gross margins over the remainder of 2026. As another mitigation plan for our current challenges, we are also focusing on increased software sales. Turning to operating expenses. Research and development expenses for the second quarter on a non-GAAP basis were $8.2 million, up from $7.2 million in Q2 2025. As a percentage of revenue, our non-GAAP R&D expenses were 8.7% in the second quarter as compared to 8.8% in the second quarter last year. Sales and marketing expenses for the second quarter on a non-GAAP basis were $12.3 million, up from $11.1 million in Q2 2025. As a percentage of revenue, sales and marketing expenses on a non-GAAP basis were 13.1% in the second quarter compared to 13.5% in the second quarter last year. General and administrative expenses for the second quarter on a non-GAAP basis were $5.7 million compared to $5.9 million in Q2 2025. As a percentage of revenues, non-GAAP G&A expenses were 6.1% in the second quarter compared to 7.2% in the second quarter last year. Operating income for the second quarter on a non-GAAP basis was $4 million compared to $4.7 million for Q2 2025. As a percentage of revenues, non-GAAP operating income was 4.2% in the second quarter compared to 5.7% in the second quarter last year. As a reminder, operating income was also negatively impacted versus 2025 due to adverse foreign currency movement in the Israeli shekel. Financial and other expenses for the second quarter on a non-GAAP basis were $1.6 million compared to $1.7 million in the second quarter last year. Foreign exchange conditions stabilized during the quarter. Our tax expenses for the second quarter on a non-GAAP basis were $0.7 million. Net income for the second quarter on a non-GAAP basis was $1.7 million or $0.02 per diluted share compared to $2.5 million or $0.03 per diluted share for Q2 2025. As for our balance sheet, our cash position at the end of the second quarter was $34.8 million compared to $38.4 million at the end of 2025. Short-term loans at the end of Q2 2026 were $12 million compared to $19 million at the end of 2025. Thus, at the end of the second quarter, we had a net positive cash position of approximately $22.8 million compared to a net cash position of approximately $19.4 million at the end of 2025. We believe we have cash and facilities that are sufficient for our operations and working capital needs. Our inventory at the end of the second quarter was $59.5 million, down from $61.6 million at the end of 2025. Our trade receivables at the end of the second quarter were $101.3 million, up from $99.7 million at the end of 2025. Our DSO now stands at 107 days. With respect to our cash flow, net cash generated by operations and investing activities was $0.3 million in the second quarter compared to approximately $5.6 million in Q2 2025. Net cash provided by operating activities was $5.1 million, while net cash used in investing activities was $4.8 million compared to $10.8 million and $5.1 million, respectively, in Q2 2025. Turning to our 2026 guidance. We reiterate our 2026 revenue guidance of $355 million to $385 million. Given the underlying business strength and the anticipated cost challenges in the second half of 2026, we now expect our full year 2026 gross margin to be between 33.5% to 34.5% versus 35.5% previously and operating margin to be between 5% to 6% versus 6.5% to 7.5% previously, both at the midpoint of our provided revenue range for 2026. The reduction in non-GAAP gross margin reflects our current view of the full year impact of the anticipated cost pressures. That concludes my prepared remarks, and I'd like to now turn the call back over to Doron for any remaining comments. Doron? Doron Arazi: Thanks, Ronen. There will always be moving pieces in our business from quarter-to-quarter. And today, those include component costs, supply availability and geographic mix. But the underlying fundamentals that matter most to our long-term outlook remain encouraging. Demand for our technology and solutions is increasing. Our addressable market is expanding, and we are converting more of these opportunities into meaningful bookings and long-term customer relationships. With that, I now open the call for questions. Operator: [Operator Instructions] Our first question will be from Scott Searle from ROTH Capital. Okay. We will move to Ryan Koontz from Needham. Scott Searle: I apologize for my confusion there. Doron, just maybe to dive in. I'm not sure if I heard a book-to-bill number, but I'd be curious if you had it. And then given the reiterated guidance for 2026, given the performance in the second quarter, at the lower end, it would imply you're kind of flattish the second half versus the first half, given the strength that you're seeing in India, given the bookings that you're seeing in India. And it sounds like even the recovering strength in the third quarter for North America would imply a number higher than, I think, flattish versus the first half. So I'm kind of wondering what your thought process is there and the swing factors to get you from the low end of the range to the high end of the range. Doron Arazi: Yes. So thank you for this question, Scott. The issue is not the demand. The issue is not the visibility. The issue is the disruption in the supply chain and time line of getting components. Let's not forget, the AI explosion has created a perfect storm in the domain of chips and active components for many industries. And while time line for delivery of these components are lingering and the level of confidence in meeting time lines is also being kind of reduced a little bit, we prefer to take the approach in which we keep this revenue guidance within this frame because this is the main, so to speak, visibility problem that we have. So to summarize, it's not about the demand. It's about the ability to get the components in time to deliver and to convert these great orders into revenue. Scott Searle: And if I could follow up, as my follow-up question. Just specifically in North America was a little weaker this quarter. It sounds like your Tier-1 slipped shipments from the second quarter into the third quarter. But I'm wondering on the private networks front, how did that progress sequentially from March to June? And it sounds like you've got a good backlog of business. So the visibility from North America may be into the second half of the year. And since you touched on it, Starlink, I'm wondering if you're actually seeing any opportunities created from there, if there are any discussions ongoing on that front? Or if at this point, it's basically just kind of speculating if they start to build out a terrestrial network. So thanks. Doron Arazi: I'll start with the second question. Look, we probably all heard the same messages coming on the conference calls they had a while ago. they did not indicate anything that is more specific, such as what is the architecture or more details about the architecture of this new terrestrial network and so on and so forth. So I think that it's still early to assess how this is going to play out. But if I'm trying to kind of get the messages from that call, they would definitely want to build a very -- a network that is -- can be built very fast and at the same token can be quite competitive to the existing legacy networks. In such case, especially when they will start aggregating much more data in their existing antennas, the backhaul will become a very important element in the architecture. I don't think that at this point, their technology can carry such amount of data. I'm not sure that it will be able to carry such amount of data even in the long term, but that's something that we can leave out. So based on all these assumptions, I think that there can be an opportunity for players in the millimeter wave and microwave domain to help them build their network very fast with a level of service that can compete with the incumbents. And now to your first question. Look, North America looks good. We anticipated that the second part and predominantly Q3 will look better for us because of all the reasons that we described already in the call of the first quarter results. So basically, we are a bit positively surprised in Q2, but the general trajectory is what we discussed already, which indicates that we believe that the second half will be much better. With regard to private networks, yes, the business is growing and is growing nicely. I just want to remind you that the conversion of private network projects into revenue is much slower than just sending our equipment to a Tier-1 operator and recognizing it within the same quarter. So I don't think that the impact of the strength in terms of booking and backlog of private networks will be that significant in the short term. But all in all, the bottom line for North America is positive. We believe that the second part of the year could be stronger than the first one. Operator: Our next question is from Ryan Koontz from Needham. Ryan Koontz: Can you hear me? Operator: Yes. Ryan Koontz: Sorry about that. Super. With regards to India, what are you seeing there in terms of changes in mix and the use case? It's great to hear the strength coming from India. Is this mostly for rural coverage? Are you looking at FWA and urban areas at all? Or what kind of use cases are you seeing in India that are giving you the confidence and the bookings here? And how is that affecting your product mix? Doron Arazi: Yes. So I think that the business in India is driven by 2 main, so to speak, phenomenon. One, there are still operators who have not completed the upgrade of the network even to 4G. And this is one part of the business strength. The other part, and that's for the more advanced operators. In the 5G era, the operators in India are looking to expand the business predominantly bringing connectivity to residential areas and to enterprise, which means more fixed wireless access use cases. There, you are talking about much higher capacity that is needed for the backhaul -- and in those cases, they are using either our ICSA product or multiband that can ensure minimum level of connectivity with much bigger capacity on average. These are the 2 main phenomena that are driving the demand. Ryan Koontz: And then maybe on the U.S. side, it sounds like your new Tier-1, you're trying to ramp with, you're really just working through the operational processes and maybe commercial processes. And you think you have still a good shot of seeing some share gains in '27 there? Doron Arazi: Yes. I would say that -- this strengthening relationship with this new Tier-1 operator will start driving meaningful revenue for us in 2027. I do believe that we -- and I think I also mentioned that in the previous call, I do believe that we'll start getting the orders quite soon, maybe even in Q3. But in terms of impact on revenue, it's going to become meaningful in 2027. Ryan Koontz: And then maybe lastly on the LEO impacts. It's interesting. I hear what you're saying on Starlink, if they build, this would get them time to market to get to the microwave to the density in more urban areas. I assume the other LEOs, namely AST SpaceMobile and their collaboration with the U.S. incumbent mobile operators, at this point, you're not seeing any slowdown in the rural build in terms of their thoughts around the '27 and beyond? Doron Arazi: We don't see any slowdown. And I need to kind of reiterate the main, so to speak, observation, given what we know. I don't know what I don't know. But based on all the public announcements, including some announcements and discussions about the technology and the current capabilities, the fundamental limitation is area spectral efficiency, which means bits per square kilometer. And in this respect, if you need very high capacity, at this point, at least, the LEO is not a great solution. The LEO is an amazing solution for increasing coverage predominantly for mobility because you know that once you start getting into homes and so on and so forth, the signal cannot go through walls and this kind of stuff. So the way I see the world is that this is a great collaboration between the OpCos and the LEO players to basically improve the level of service for the OpCos and reach out to these very rural areas where they don't have coverage, and it doesn't make sense for the OpCos to invest in more, so to speak, fundamental technology. That's the reason why we see this collaboration. It's about coverage. It's not about capacity. Operator: Our next question is from Tyler Burmeister from Lake Street Capital Markets. Tyler Burmeister: Maybe first, I was wondering if you could give us any idea how much of the $120 million bookings year-to-date in India would you expect to convert to revenue this year? And then it sounds like the second half gross margin impact is largely or all component supply chain related. But I'm just wondering, is there any potential impact as well from just a stronger mix in India than maybe you're expecting at least earlier this year? Ronen Stein: Good morning. The $120 million is expected mostly to be converted this year or fully all, but mostly this year. This is the expectation. Some of it was already converted. I remind that the $120 million is bookings over this year -- year-to-date till end of July when it was announced. Doron Arazi: I would just add to Ronen's point in terms of the -- your question about gross margin, how should we think about gross margin? So let's not forget, when we take my previous comment when I'm expecting obviously, subject to the supply chain challenges that North America revenue will be stronger in the second part of the year as opposed to the first part. And with the fact that India continues to be strong, we see the contribution of North America helping us to improve the gross margin. But the bottom line is that Ronen has actually indicated how the gross margin for the year is going to look like in his comments. And that's basically based on a better mix between North America and India for the second part of the year. And I think that all in all, with the comments -- with the prepared comments, you can anticipate the gross margins on the second part of the year. Tyler Burmeister: And then maybe just a follow-up there on the gross margin side of it. With your updated supply chain timelines, component timelines, do we expect to see any directional rebound in gross margins in Q4? Do you expect some of these challenges to persist into '27? Any update on the timeline for improvement from some of these component challenges would be great. Ronen Stein: So I cannot guide on a quarterly basis, but the H2, as Doron just mentioned and completed my prepared remarks, this is supposed to be already covered. So the costs, we don't see in 2026 in the second half much improvement on the cost side. On the mixture side, both regional and product and trying to sell more software, as I commented in my prepared remarks, we expect the margins to streamline on the annual basis, as I just mentioned. For the next year, we continue to have and for the future, we continue to have more initiatives that will just take us more time, both on cost initiatives as well as the fact that once agreements with customers will get renewed or something like that, we will continue to push for higher prices because this has already been discussed not only on our part, but also other players in the market are. I think that everybody understands that current prices cannot be continue if costs continue to go up. Doron Arazi: Just as a general comment, I think that we are truly in a perfect storm. And this situation is not sustainable for a very long time. And because of that, we believe that we'll start seeing gradual improvement in 2027. And as Ronen hinted, it may come from different angles, starting with building a more efficient product in terms of home cost and redesign and some of the comments that we already mentioned in this regard in our prepared comments but also from the angle of price increase. It's a full industry issue. And while today, we may have some sort of contracts that we are honoring. Obviously, many of the contracts and some of the orders are always or almost always being opened up on an annual basis. And that will also give us another opportunity to also discuss pricing with our customers. So we are not absorbing everything within our industry. Operator: Our next question is from Ben Taxdhal from Craig-Hallum. Unknown Analyst: Can you guys hear me? Yes. Perfect. I'm on for Christian Schwab here. A lot of my questions have been answered. I'm just wondering how maybe a little bit more broadly, how does this demand environment shape up to ones in years past? And then maybe if you could tie in there, what is your initial thoughts on '27? I know maybe you can't give a number, but can you kind of tie that all together? That would be very helpful. Doron Arazi: I would say the following. without giving any sort of specific guidance to 2027 and beyond, we continue to assume in our analysis that a single high-digit growth in revenue is a reasonable assumption. Obviously, if we will be able to accelerate the execution of our new strategy with regard to private networks, it can become, so to speak, a driver for even higher growth. And on the legacy business of the CSP, ISP, all these public networks, our assumption is that on the one hand, we have new opportunities because of the competition environment that is, generally speaking, diluted and making our life in terms of attaining new customers easier. And if that becomes even bigger, for us, it can also outpace the low single-digit growth that is expected for this piece of the business. So all in all, when I look at our strategy, we are doing 2 things. First of all, we are increasing our TAM beyond just selling point-to-point product to either private networks or public networks. And that by itself is increasing our TAM. And since we are directing our business toward private networks end-to-end, which is expected to grow in a relatively high pace we feel that at this point, without doing a very in-depth analysis, a high single-digit growth for the years to come is prudent and makes sense. Operator: Our next question is from Theodore O'Neill from Hills Research. Theodore O'Neill: Congratulations on the quarter. I wanted to circle back on SpaceX's discussion about what they would do with the terrestrial network. Elon Musk is talking about in earlier this month, I guess, last week that they're talking about trying to create a terrestrial network that would run on the acquired EchoStar frequencies and which would be, I think, completely different frequency than what the major carriers are using now. Is that something you could participate in if they decided to go that way? Or is it strictly just the microwave backhaul part that you would be addressing? Doron Arazi: We are addressing predominantly the backhaul or the transport part of any network, which is our main competency. And in this respect, assuming they will use this spectrum in a very good way, the question I'm asking myself and I think many others are, OK, that's great. And what's going to happen in the aggregation points. After you are able to serve more subscription, how are you going to manage your network architecture starting from the aggregation point. And for that, I don't think they gave information or at least I was not exposed to such information about the architecture. And this is my main focus in my comments. I believe that if they want to move fast, one of the challenges will be, OK, I got much more subscription. I got much more customers to serve. I actually got much more traffic in the access. How do I do -- plan my transport part so that my network can be as efficient and as good as the, I would say, legacy terrestrial ones. Operator: There are no further questions. So that concludes today's call. Thank you for your participation. You may now disconnect. Before you buy stock in Ceragon Networks, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ceragon Networks wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Ceragon (CRNT) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Release Date: August 11, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Ceragon Networks Ltd (NASDAQ:CRNT) delivered a strong Q2 2026 with revenue of $93.9 million, up 14% year-over-year, and achieved the highest bookings since Q1 2024. The company reported record first-half 2026 bookings and book-to-bill ratio in the last 10 years, driven by strong demand in India, including approximately $120 million in orders from operators. Ceragon Networks Ltd (NASDAQ:CRNT) is benefiting from a favorable competitive landscape, as two major competitors are effectively out of the market and a third's commitment is uncertain, opening new opportunities. The company is seeing strong adoption of its innovative E-band and multi-band solutions, which are winning business in India and other markets due to their high capacity and cost-effectiveness. Ceragon Networks Ltd (NASDAQ:CRNT) is expanding into high-growth areas like private networks and managed services, with record private network bookings in North America and new long-term contracts, including a $70 million APAC deal. The company maintains a net positive cash position of $22.8 million and generated positive free cash flow in Q2 2026, despite supply chain challenges. Ceragon Networks Ltd (NASDAQ:CRNT) experienced a decline in non-GAAP gross margin to 32.2% in Q2 2026 from 35.2% in Q2 2025, due to geographical and product mix and cost pressures. The company faces ongoing supply chain challenges, including component cost increases and lead time extensions, which are expected to continue pressuring gross margins for the remainder of 2026. Ceragon Networks Ltd (NASDAQ:CRNT) lowered its full-year 2026 gross margin guidance to 33.5%-34.5% (from 35.5%) and operating margin to 5%-6% (from 6.5%-7.5%), reflecting cost pressures. Non-GAAP operating income decreased to $4 million in Q2 2026 from $4.7 million in Q2 2025, and net income fell to $1.7 million from $2.5 million, impacted by adverse foreign currency movements. The company's days sales outstanding (DSO) increased to 107 days, and trade receivables rose to $101.3 million, indicating potential cash flow collection issues. Revenue from a key North American Tier 1 carrier was delayed from Q2 to Q3 due to supply chain timing issues, and the company expects only gradual improvement in cost pressures in 2027. Warning! GuruFocus has detected 3 Warning Sign with CRNT. Is CRNT fairly valued? Test your thesis with our free DCF calculator. Q: Given the strong Q2 performance and reiterated 2026 revenue guidance, the lower end implies flattish second-half versus first-half results. What are the swing factors that get you from the low end to the high end of the range?A: Doron (CEO) explained that the issue is not demand or visibility but rather disruption in the supply chain and timelines for getting components. The AI explosion has created a "perfect storm" in the domain of chips and active components, leading to lingering delivery timelines and reduced confidence in meeting them. Therefore, the company prefers to keep revenue guidance within the current frame, as the main visibility problem is the ability to get components in time to convert orders into revenue. Q: Can you provide any idea how much of the $120 million bookings year-to-date in India would you expect to convert to revenue this year? And is the second-half gross margin impact largely component supply chain related or also from a stronger mix in India?A: Ronen (CFO) stated that the $120 million is expected to be mostly converted this year, with some already converted. Doron (CEO) added that while North America revenue is expected to be stronger in the second half, helping to improve gross margins, the overall gross margin guidance reflects a better mix between North America and India. Ronen (CFO) also noted that the cost pressures are expected to persist through the second half of 2026, with no significant improvement on the cost side, but the company is focusing on increased software sales and pushing for higher prices in future contract renewals. Q: With regards to India, what are you seeing in terms of changes in mix and use cases? Is this mostly for rural coverage, FWA in urban areas, or other use cases?A: Doron (CEO) explained that the business in India is driven by two main phenomena. First, some operators have not yet completed upgrading their networks even to 4G. Second, for more advanced operators in the 5G era, they are looking to expand connectivity to residential areas and enterprises, which means more fixed wireless access (FWA) use cases. These require much higher capacity for backhaul, leading to the use of Ceragon's IXA product or multi-band solutions that ensure minimum connectivity with much bigger capacity on average. Q: On the US side, it sounds like your new Tier 1 carrier is ramping. Are you working through operational and commercial processes, and do you still have a good shot at seeing share gains in 2027?A: Doron (CEO) confirmed that the strengthening relationship with the new Tier 1 operator will start driving meaningful revenue in 2027. He believes the company will start getting orders quite soon, possibly even in Q3, but the impact on revenue will become meaningful in 2027. Q: Regarding SpaceX's potential terrestrial network, is that something Ceragon could participate in, or is it strictly the microwave backhaul part you would address?A: Doron (CEO) stated that Ceragon is addressing predominantly the backhaul or transport part of any network, which is its main competency. He noted that if SpaceX builds a terrestrial network, the backhaul will become a very important element in the architecture, especially as they aggregate more data. He believes there can be an opportunity for players in the millimeter wave and microwave domain to help build the network very fast with a level of service that can compete with incumbents. Q: On the LEO impacts, are you seeing any slowdown in rural builds from US incumbent mobile operators collaborating with LEO providers like AST Space Mobile?A: Doron (CEO) said the company does not see any slowdown. He reiterated that based on public announcements, the fundamental limitation of LEO technology is area spectral efficiency (bits per square kilometer). For very high capacity needs, LEO is not a great solution. He views LEO as complementary for increasing coverage, particularly in very rural areas, rather than a substitute for terrestrial high-capacity backhaul. Q: How does this demand environment shape up to ones in years past, and what are your initial thoughts on 2027?A: Doron (CEO) stated that without giving specific guidance, the company continues to assume that high single-digit growth in revenue is a reasonable assumption. If the company can accelerate execution of its private network strategy, it could become a driver for even higher growth. On the legacy CSP/ISP business, new opportunities from a diluted competitive environment could also outpace the expected low single-digit growth. Overall, the company is increasing its TAM by expanding beyond point-to-point products into private networks and end-to-end solutions. Q: With your updated supply chain timelines, do we expect to see any directional rebound in gross margins into Q4? Do you expect these challenges to persist into 2027?A: Ronen (CFO) said he cannot guide on a quarterly basis, but the second half is already covered in the annual guidance. The company does not see much improvement on the cost side in 2026. For 2027, the company has more initiatives, including cost initiatives and pushing for higher prices upon contract renewals, as the industry understands that current prices cannot be sustained if costs continue to rise. Doron (CEO) added that the "perfect storm" is not sustainable for a very long time, and the company expects gradual improvement in 2027 from more efficient product designs (BOM cost) and price increases. Q: In North America, how did private networks progress sequentially from March to June, and are there any opportunities created from Starlink's potential terrestrial network?A: Doron (CEO) noted that North America looks good, with the second half, predominantly Q3, expected to be better. Regarding private networks, the business is growing nicely, but conversion of private network projects into revenue is much slower than traditional equipment sales to Tier 1 operators. The impact of strong bookings and backlog in private networks will not be significant in the short term. On Starlink, he said it is still early to assess how the terrestrial network will play out, but if they build a network quickly, backhaul will become a critical element, potentially creating opportunities for Ceragon. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Ceragon Networks Ltd.? Here are five stocks we like better. Revenue and bookings accelerated: Second-quarter revenue rose 14.2% year over year to $93.9 million, while bookings reached their highest level since Q1 2024. India led sales with $45 million, supported by approximately $120 million in mobile-operator orders expected to largely convert to revenue in 2026. Profitability guidance was reduced: Supply-chain disruptions, component costs and unfavorable product and geographic mix lowered non-GAAP gross margin to 32.2% from 35.2% a year earlier. Ceragon maintained 2026 revenue guidance of $355 million to $385 million but cut its gross-margin and operating-margin outlooks. Expansion opportunities remain: North American private-network bookings reached a record, while Ceragon advanced 5G FR2 commercialization discussions with a new Tier 1 carrier. The company also announced multi-year managed-services and APAC operator agreements worth up to $70 million. Ceragon is the under-the-radar networking stock you should know Ceragon Networks (NASDAQ:CRNT) reported second-quarter 2026 revenue of $93.9 million, up 14.2% from $82.3 million a year earlier, as demand in India and North America supported growth. The company said bookings reached their highest level since the first quarter of 2024, while first-half bookings and book-to-bill represented its strongest first half in 10 years. Chief Executive Officer Doron Arazi said recently introduced technologies, including the company’s E-band portfolio, IP-50CX platform and multi-band offerings, are helping Ceragon win business tied to network modernization, capacity upgrades and fixed wireless access deployments. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat Supply Chain Hurdles Open Entry Into Ceragon Networks “Demand for our technology and solutions is increasing, our addressable market is expanding, and we are converting more of these opportunities into meaningful bookings and long-term customer relationships,” Arazi said. India was Ceragon’s largest revenue region during the quarter, contributing $45 million in sales, followed by North America with $21 million. Arazi said the company had booked approximately $120 million in orders from Indian mobile operators through late July, primarily involving two of the country’s leading carriers. The orders support expansions and modernization of nationwide 4G and 5G transport networks. → 3 Dividend Champion Utilities for a Market That Can't Sit Still According to Arazi, Indian demand is being supported by two factors: continuing network upgrades among operators that have not completed 4G modernization and demand from more advanced operators expanding fixed wireless access for residential and enterprise connectivity. “Fixed wireless access remains an important driver” in India, Arazi said, as carriers seek higher-capacity transport that can be deployed quickly and economically. He said the IP-50CX and multi-band products are winning business in these applications. → Take-Two’s Q1 Results Leave GTA 6 Bulls Stuck in the Fog of War Chief Financial Officer Ronen Stein said most of the $120 million of India bookings is expected to convert into revenue during 2026, with some already recognized. Arazi added that 2026 could become one of Ceragon’s strongest booking years in India in some time, subject to supply-chain conditions. Despite revenue growth, profitability declined from the prior-year period. Non-GAAP gross profit rose 4.4% to $30.3 million, but non-GAAP gross margin fell to 32.2% from 35.2%. Stein attributed the decline to geographic and product mix as well as component-cost pressure and supply-chain challenges. Non-GAAP operating income was $4 million, or 4.2% of revenue, compared with $4.7 million, or 5.7% of revenue, in the second quarter of 2025. Non-GAAP net income totaled $1.7 million, or $0.02 per diluted share, compared with $2.5 million, or $0.03 per diluted share, a year earlier. Stein said Ceragon does not expect mitigation initiatives to appreciably offset cost pressure in the near term. The company is pursuing procurement, product-design and supply-chain actions, while also seeking to increase software sales. Management also said it expects to pursue higher prices as customer agreements are renewed. “The issue is not the demand,” Arazi told analysts. “The issue is the disruption in the supply chain, and timeline of getting components.” He said the company’s revenue outlook reflects uncertainty around obtaining components on time and converting orders into revenue. Ceragon reiterated its 2026 revenue guidance of $355 million to $385 million. However, it lowered its expected full-year non-GAAP gross margin to 33.5% to 34.5%, from 35.5% previously, and reduced its operating-margin expectation to 5% to 6%, from 6.5% to 7.5%, both measured at the midpoint of its revenue range. Arazi said North American revenue from an existing Tier 1 carrier was slightly above the company’s expectations in the quarter, although some shipments shifted into the third quarter. He said underlying demand from that customer remains healthy and that Ceragon expects the second half in North America to be stronger than the first. The company also completed proof-of-concept field trials of its 5G FR2 solution with a new Tier 1 North American carrier and has entered commercialization discussions. Arazi said the company could begin receiving orders relatively soon, potentially in the third quarter, but expects revenue from the relationship to become meaningful in 2027. Private-network bookings in North America reached a record, management said. Ceragon is pursuing broader projects combining wireless transport with private 5G and LTE technologies for IoT connectivity, automation and other mission-critical uses. Arazi cautioned that private-network projects generally have longer sales cycles and slower revenue conversion than traditional carrier equipment shipments. Ceragon secured a two-year, $3.4 million managed-services contract with a major mobile operator in Mexico. The company also won an additional five-year agreement worth up to $70 million with a Tier 1 mobile operator in APAC. EMEA bookings reached their highest level in nearly three years during the second quarter, according to management. The company ended the quarter with $34.8 million in cash and $12 million in short-term loans, producing a net cash position of approximately $22.8 million. Net cash generated by operating and investing activities was $0.3 million during the quarter. Looking beyond 2026, Arazi said Ceragon continues to view high-single-digit revenue growth as a reasonable assumption, without providing formal guidance. He said gains in private networks and opportunities created by changes in the competitive environment could potentially support faster growth. Ceragon Networks Ltd. is a global provider of wireless backhaul solutions, specializing in high-capacity, low-latency connectivity for mobile operators and private networks. The company designs and manufactures a portfolio of microwave and millimeter-wave equipment that serves as a fiber alternative for carrying voice, data and video traffic between cell sites and core networks. Ceragon's solutions are engineered to support the rigorous performance requirements of modern 4G and 5G deployments, with an emphasis on scalability, reliability and efficient spectrum utilization. The company's product lineup includes point-to-point and multi-point radio platforms, as well as software-driven network management tools that enable operators to plan, deploy and monitor end-to-end transport networks. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Ceragon Networks Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Ceragon Networks (NASDAQ:CRNT) shares moved higher in pre-market trading on Tuesday after the wireless connectivity specialist reported second-quarter results that exceeded Wall Street expectations for both earnings and revenue. Adjusted earnings per share came in at $0.02, above the analyst consensus of $0.01. Revenue reached $93.9 million, beating expectations of $86.78 million and increasing 14% from $82.3 million in the second quarter of 2025. Ceragon shares rose 4.55% in pre-market trading following the release. Strong demand in India was a major contributor to Ceragon’s top-line performance, with the country accounting for 48% of second-quarter revenue. North America represented a further 22%. The company reported approximately $120 million of year-to-date bookings in India through July. Ceragon also recorded its highest-ever quarterly bookings for private networks in North America, highlighting momentum beyond its traditional carrier business. “Our second quarter reflects the benefits of the strategy we’ve been executing over the past several years,” said CEO Doron Arazi. “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.” Despite the adjusted earnings beat, Ceragon recorded a GAAP net loss of $2.1 million, equivalent to $0.02 per diluted share. That compared with a GAAP net loss of $1.3 million in the same period last year. On an adjusted basis, the company generated net income of $1.7 million. Margins also weakened year on year. GAAP gross margin was 31.7%, while adjusted gross margin stood at 32.2%, compared with 34.6% in the second quarter of 2025. The margin decline provides an important counterpoint to the stronger revenue performance, with investors balancing improving demand against continued pressure on profitability. For fiscal 2026, Ceragon now expects revenue of between $355 million and $385 million, putting the midpoint of its outlook at $370 million. At the same time, the company lowered its profitability expectations. Adjusted gross margin is now forecast at 33.5% to 34.5%, compared with a previous guidance midpoint of 35.5%. Ceragon also revised its adjusted operating margin forecast to between 5% and 6%, down from a previous outlook with a midpoint of 7%. For investors, the second-quarter earnings and revenue beat demonstrates healthy demand, particularly in India and North American private networks. However, lower margin guidance and the widening year-on-year GAAP net loss leave profitability as a key issue to monitor as Ceragon progresses through the second half of 2026. Ceragon Networks stock price

Strong demand in India drives 14% year-over-year revenue growth ROSH HA'AIN, Israel, Aug. 11, 2026 /PRNewswire/ -- Ceragon (NASDAQ: 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: 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® and FibeAir® are registered trademarks of Ceragon Networks Ltd. in the United States and other countries. CERAGON ® 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 FinkFNK IRTel. [email protected] Joey DelahoussayeFNK IRTel. [email protected] View original content to download multimedia:https://www.prnewswire.com/news-releases/ceragon-reports-2026-second-quarter-financial-results-302848255.html

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved the highest first-half bookings and book-to-bill ratio in 10 years, driven by aggressive 5G expansion and network modernization in India. Capitalized on a shifting competitive landscape where two significant competitors lack technological continuity and a third shows uncertain market commitment. Experienced strong demand for E-Band and multi-band solutions as customers seek fiber-like capacity with faster deployment and lower total cost of ownership. Expanded the addressable market through end-to-end private network solutions, which saw record bookings in North America despite longer sales cycles. Successfully navigated supply chain timing issues in North America, with underlying demand from Tier-1 carriers remaining healthy and resilient. Advanced the managed services strategy with significant multi-year contract wins in Mexico and APAC, diversifying revenue beyond traditional hardware sales. Maintained a selective approach in Latin America and APAC while seeing a payoff from leadership changes in EMEA with the highest bookings in three years. Reiterated 2026 revenue guidance of $355 million to $385 million, reflecting strong demand tempered by component availability and lead time challenges. Lowered full-year gross and operating margin expectations due to persistent cost pressures from the 'perfect storm' in the semiconductor and active component markets. Anticipates meaningful revenue contribution from a new North American Tier-1 carrier starting in 2027 following successful 5G FR2 solution field trials. Assumes a long-term growth trajectory of high single-digits, supported by private network expansion and market share gains from exiting competitors. Expects gradual margin improvement in 2027 through product redesigns, increased software mix, and potential price adjustments upon contract renewals. Component cost pressures and supply chain disruptions are expected to persist through the remainder of 2026, limiting near-term margin recovery. Identified LEO satellite technology as a complementary coverage solution rather than a substitute for high-capacity terrestrial wireless backhaul. Noted potential future opportunities in providing backhaul for emerging terrestrial networks, such as those proposed by SpaceX. Operating income was negatively impacted by adverse foreign currency movements in the Israeli shekel compared to the prior year. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that the guidance range is constrained by supply chain disruptions and chip delivery timelines rather than a lack of demand. The 'AI explosion' has created a competitive environment for active components, reducing confidence in meeting specific delivery timelines. North America is expected to be stronger in the second half of 2026 as Tier-1 shipments delayed from Q2 are realized. Private network bookings are growing nicely, but management cautioned that revenue conversion is slower than traditional carrier equipment sales. Demand is bifurcated between operators completing 4G upgrades and advanced operators deploying 5G and Fixed Wireless Access (FWA). High-capacity requirements for residential and enterprise connectivity are driving adoption of ICSA and multi-band products. Management views LEO as a solution for coverage and mobility in rural areas, not a high-capacity substitute for terrestrial backhaul. LEO technology faces fundamental limitations in area spectral efficiency (bits per square kilometer) compared to microwave and millimeter wave solutions.

Millicom International Cellular SA (TIGO) came out with quarterly earnings of $0.64 per share, beating the Zacks Consensus Estimate of $0.54 per share. This compares to earnings of $0.51 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +18.52%. A quarter ago, it was expected that this company would post earnings of $0.89 per share when it actually produced earnings of $0.97, delivering a surprise of +8.99%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Millicom International Cellular, which belongs to the Zacks Wireless Non-US industry, posted revenues of $2.18 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.24%. This compares to year-ago revenues of $1.37 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Millicom International Cellular shares have added about 65.6% since the beginning of the year versus the S&P 500's gain of 12.8%. While Millicom International Cellular has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Millicom International Cellular was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.65 on $2.11 billion in revenues for the coming quarter and $1.78 on $8.31 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Wireless Non-US is currently in the top 36% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Ceragon Networks (CRNT), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 11. This provider of wireless backhaul services is expected to post break-even quarterly earnings per share in its upcoming report, which represents a year-over-year change of -100%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Ceragon Networks' revenues are expected to be $86.25 million, up 4.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Millicom International Cellular SA (TIGO) : Free Stock Analysis Report Ceragon Networks Ltd. (CRNT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Management to host investor conference call at 8:30 a.m. ET on the same day to discuss results ROSH HA'AIN, Israel, July 29, 2026 /PRNewswire/ -- Ceragon (NASDAQ: CRNT), a leading solutions provider of end-to-end wireless connectivity, announces that it will release its earnings results for the second quarter ended June 30, 2026 on Tuesday, August 11, 2026, before the market opens. The Company will hold a Zoom webcast at 8:30 a.m. ET that same day to review the results, followed by a Q&A session. Investors may register for the call by clicking here. All relevant access details will be provided upon registration. For those 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® and FibeAir® are registered trademarks of Ceragon Networks Ltd. in the United States and other countries. CERAGON® is a trademark of Ceragon, registered in various countries. Other names mentioned are owned by their respective holders. Investor Contact: Rob FinkFNK IR1+646-809-4048 Joey DelahoussayeFNK IR1+312-809-1087 [email protected] View original content to download multimedia:https://www.prnewswire.com/news-releases/ceragon-to-announce-second-quarter-2026-financial-results-on-august-11-2026-302837463.html

This article first appeared on GuruFocus. Release Date: May 19, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Ceragon Networks Ltd (NASDAQ:CRNT) reported strong execution in key markets, particularly in India, with $86 million in bookings from two leading operators. The company experienced healthy demand across its business, with revenue for Q1 2026 at $85 million and non-GAAP EPS at $0.01. Gross margin improved to 36% from 33.5% in Q1 2025, benefiting from favorable geographic and product mix. Ceragon Networks Ltd (NASDAQ:CRNT) is making progress with a major Tier 1 carrier in North America, with successful trials of its new FR2 solution. The company has a net positive cash position of $22.1 million, up from $19.4 million at the end of 2025, indicating strong financial health. Revenue for Q1 2026 was down 4.1% from Q1 2025, indicating a decline in sales compared to the previous year. The company is facing supply chain challenges with a large Tier 1 carrier in North America, impacting revenue timing. There are broader industry-wide cost headwinds, including rising memory pricing, elevated copper and metals costs, and high freight costs. Foreign exchange fluctuations, particularly the appreciation of the Israeli shekel and the weakness of the Indian rupee, are negatively impacting profitability. Operating income for Q1 2026 decreased to $4.2 million from $4.5 million in Q1 2025, reflecting a decline in operational profitability. Warning! GuruFocus has detected 5 Warning Sign with CRNT. Is CRNT fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide more details on the expected margin pressure in Q2 and the revenue outlook for India? A: (CEO) We anticipate strong revenue from India in Q2 due to accelerated rollouts, which will result in a higher revenue ratio from India compared to North America. This shift, along with temporary component issues in North America, will impact our gross margins. However, we expect these pressures to be offset in Q3, maintaining our annual targets. Q: How is the geopolitical situation affecting your supply chain, particularly in North America? A: (CEO) The supply chain challenge involves a semiconductor affected by geopolitical tensions, leading to longer lead times and export license delays. We are working closely with our customer and vendors to resolve this, expecting a recovery in Q3. Q: What impact does Nokia's divestment of its wireless transmission business have on Ceragon? A: (CEO) Nokia's divestment has increased customer engagement, particularly in Europe, where we see potential new business. This situation is positive for us, as some operators are choosing to increase their purchases from Ceragon. Q: Can you elaborate on the progress with the new 28 GHz product for North American Tier 1 operators? A: (CEO) The new product, leveraging Wi-Fi 7 technology, has successfully completed a proof-of-concept trial. We are in discussions with multiple carriers, and we expect significant orders in Q3, contributing to revenue in 2027. Q: How are you addressing the cost pressures and foreign exchange impacts on profitability? A: (CFO) We are implementing initiatives to mitigate cost pressures, which should take effect in Q3. While foreign exchange rates, particularly the Israeli shekel and Indian rupee, have impacted profitability, our hedging policy helps reduce exposure. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Ceragon Networks Ltd.? Here are five stocks we like better. Ceragon posted a solid Q1 with revenue of $85 million and non-GAAP EPS of $0.01, while management reiterated its full-year 2026 revenue guidance of $355 million to $385 million. India was the standout growth driver, with about $86 million in bookings and strong demand for E-band and IP-50EXA solutions supporting fixed wireless access expansion; management now sees 2026 India revenue around $100 million or slightly higher. North America is being pushed around by timing issues, including a component supply chain delay that should shift some second-quarter revenue into the third quarter, though Ceragon still expects a strong year and sees improving momentum in private networks and Europe. Ceragon is the under-the-radar networking stock you should know Ceragon Networks (NASDAQ:CRNT) reported first-quarter 2026 revenue of $85 million and non-GAAP earnings of $0.01 per diluted share, describing the period as a “solid start” marked by strong execution in India and continued activity in North America. Chief Executive Officer Doron Arazi said demand trends remain “encouraging” across the business and that the company continues to see healthy demand for its wireless connectivity offerings, particularly in E-band solutions used for high-capacity transport and fixed wireless access deployments. → Why Applied Optoelectronics Stock May Be Near a Turning Point Supply Chain Hurdles Open Entry Into Ceragon Networks Chief Financial Officer Ronen Stein said first-quarter revenue declined 4.1% from $88.7 million in the first quarter of 2025. North America contributed $31.3 million, or 37% of revenue, while India contributed $30 million, or 35% of revenue. The company had three customers that each represented more than 10% of quarterly revenue. Arazi highlighted India as a major driver of the quarter, saying activity levels remained strong and the conversion of opportunities into bookings accelerated. Earlier in the month, Ceragon announced approximately $86 million in bookings in India, mainly from two leading operators. A substantial portion of those bookings relates to the company’s new IP-50EXA platform, which is being used to support large-scale fixed wireless access expansion projects. → The Pentagon's AI Pivot Supercharges Defense Stocks Arazi said the bookings reinforce the scale of the market opportunity and Ceragon’s competitive position, especially as changes in the competitive landscape unfold. He said demand for the company’s E-band portfolio is accelerating across multiple applications, with customers viewing the technology as an alternative to fiber because it can deliver “fiber-like capacity” with faster deployment timelines and lower total cost of ownership. In response to an analyst question, Arazi said the India bookings give Ceragon higher confidence in its baseline expectation of around $100 million of revenue from the region in 2026, and possibly slightly higher. He said the company expects additional orders from two Indian customers in the third and fourth quarters. → Ackman and Berkshire Are Betting Against Each Other on AI Regarding a possible request for proposal from a third tier 1 customer in India, Arazi said the situation is “a bit tricky” because the operator is government-owned and timing remains unclear. He said the company does not currently need that potential business to support its 2026 revenue outlook, and if it materializes later, it could serve as a starting point for 2027. In North America, Arazi said first-quarter execution was generally in line with expectations. He noted that one key tier 1 carrier customer had particularly strong order volumes in the second half of 2025 and moderated bookings in the first quarter following that elevated demand. Ceragon still expects another strong year with that customer, with 2026 revenue similar to or modestly above 2025 levels and acceleration in the second half. The company is also navigating a supply chain issue affecting one large North American tier 1 carrier, which is expected to shift some revenue from the second quarter into the third quarter. Arazi said the issue is tied to one specific component and described it as a timing issue rather than a demand or relationship problem. During the question-and-answer session, Arazi said the component is a semiconductor also used in other industries affected by geopolitical developments. He said a demand surge for the component and delays tied to export license processes lengthened lead times. Ceragon is working with the customer and component vendors on a catch-up plan, and Arazi said he sees “a better line of sight” toward resolution. Ceragon is also progressing with another major tier 1 carrier in North America. Arazi said the company recently completed a proof-of-concept trial involving its new FR2 solution for the 28 GHz spectrum band. Following the trial, Ceragon is advancing development discussions and commercial engagement efforts, with the potential for meaningful orders beginning in the third quarter. In a later response, Arazi said any significant order would likely begin contributing meaningful revenue in 2027. Non-GAAP gross profit was $30.6 million in the first quarter, up 3.1% from $29.7 million a year earlier. Non-GAAP gross margin improved to 36% from 33.5% in the prior-year period, helped by geographic and product mix and increased software license revenue. Those benefits were partly offset by cost pressures. Stein said first-quarter non-GAAP operating income was $4.2 million, compared with $4.5 million in the first quarter of 2025. Non-GAAP operating margin was 4.9%, compared with 5.1% a year earlier. Non-GAAP net income was $0.7 million, or $0.01 per diluted share, compared with $2.6 million, or $0.03 per diluted share, in the year-ago quarter. Stein said sales and marketing expenses rose to $13.4 million from $11.8 million a year earlier, reflecting increased investment in private networks. Non-GAAP research and development expenses declined to $7.8 million from $8.1 million, while non-GAAP general and administrative expenses were $5.3 million, compared with $5.4 million. Management cautioned that second-quarter margins are likely to come under pressure because India is expected to represent an unusually high share of revenue while some North American revenue shifts into the third quarter. Stein said an unfavorable geographic mix “can take a few points” from gross margin. Arazi said the company expects higher pressure in the second quarter and a sequential recovery in the third quarter, adding that the two quarters together should largely even out against Ceragon’s margin expectations. Stein also cited industry-wide cost headwinds, including rising memory prices, elevated copper and metals costs, and high freight costs, partly tied to the situation in the Strait of Hormuz. He said mitigation efforts are underway and are expected to begin taking effect in the third quarter. Currency fluctuations are also weighing on profitability. Stein said the continued appreciation of the Israeli shekel against the U.S. dollar has hurt operating income, though Ceragon’s hedging policy partially mitigates the impact. Weakness in the Indian rupee is affecting accounts receivable and increasing financial expenses. Ceragon reiterated its 2026 revenue guidance of $355 million to $385 million. The company also maintained its margin targets, including a 1 percentage point improvement in non-GAAP gross margin and non-GAAP operating margin of 6.5% to 7.5%, both at the midpoint of the revenue range. Stein said Ceragon ended the quarter with $39.2 million in cash, up from $38.4 million at the end of 2025. Short-term loans were $17.1 million, down from $19 million, giving the company a net positive cash position of $22.1 million. Inventory declined to $56.5 million from $61.6 million, while trade receivables fell to $94.4 million from $99.7 million. Days sales outstanding stood at 103 days. Free cash flow, measured as net cash flow from operations and investing activities, was positive $2.8 million. Arazi said momentum in private networks continues to build, though deployments remain project-driven and gradual. Ceragon announced approximately $10 million in private network contracts last month across multiple customers and use cases. He said many projects are end-to-end in scope and combine advanced wireless transport with 5G or LTE to support edge IoT connectivity and operational automation. Management also discussed the potential impact of Nokia’s announced intention to divest its wireless transmission business. Arazi said Ceragon is seeing stronger engagement with potential customers, particularly in Europe. In some cases where customers already use both Nokia and Ceragon, he said the “easy decision” is to buy more from Ceragon, and this has already appeared in one or two use cases. Arazi said EMEA is an area where Ceragon is making “very nice progress,” driven primarily by Europe. He said he is confident the region can have a record year in 2026 based on current forecasts for the second and third quarters. “The demand environment is strong and our competitive position is improving,” Arazi said. He added that Ceragon views the challenges around geographic mix, margins and foreign exchange as largely non-operational and temporary. Ceragon Networks Ltd. is a global provider of wireless backhaul solutions, specializing in high-capacity, low-latency connectivity for mobile operators and private networks. The company designs and manufactures a portfolio of microwave and millimeter-wave equipment that serves as a fiber alternative for carrying voice, data and video traffic between cell sites and core networks. Ceragon's solutions are engineered to support the rigorous performance requirements of modern 4G and 5G deployments, with an emphasis on scalability, reliability and efficient spectrum utilization. The company's product lineup includes point-to-point and multi-point radio platforms, as well as software-driven network management tools that enable operators to plan, deploy and monitor end-to-end transport networks. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Ceragon Networks Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.