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.
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.
India Bookings Strengthen 2026 Visibility
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.
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.
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.
North America Timing Issue Expected to Shift Revenue
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.
Margins Face Mix, Cost and Currency Pressures
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.
Guidance Reiterated Despite Moving Parts
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.
Private Networks and Europe Remain Areas of Focus
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.
About Ceragon Networks NASDAQ: CRNT
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.
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