Ceragon Networks (NASDAQ:CRNT) reported fourth-quarter and full-year 2025 results that were in line with the preliminary figures it shared in January, while reiterating its 2026 revenue outlook and pointing to steady early-year activity across core markets. Management also highlighted improving cash generation and balance sheet strength, alongside continued investments in new products and private network opportunities.
Q4 and full-year results matched preliminary update
Chief Executive Officer Doron Arazi said the company’s reported results “align with the preliminary results” provided in January. Ceragon posted fourth-quarter 2025 revenue of $82.3 million, consistent with the range it had previously communicated, and non-GAAP earnings per diluted share of $0.02.
Regional performance and profitability metrics
Chief Financial Officer Ronen Stein said Q4 2025 was “another profitable quarter on a non-GAAP basis,” with positive free cash flow in excess of $7 million. Fourth-quarter revenue declined 23% year over year from $106.9 million in Q4 2024. Ceragon’s strongest regions by revenue were North America ($32.3 million) and India ($24.7 million). Stein added that two customers contributed more than 10% of quarterly revenue.
On margins, non-GAAP gross profit in Q4 was $28.2 million, down from $36.7 million a year earlier, while non-GAAP gross margin was 34.3%, unchanged from Q4 2024.
Operating expenses reflected mix and scale effects. Stein noted 2025 operating expenses included the impact of E2E, whereas the prior-year period did not. Non-GAAP R&D spending in Q4 was $7.7 million (9.3% of revenue), compared with $8.8 million (8.2% of revenue) a year earlier. Non-GAAP sales and marketing expense rose to $11.4 million (13.8% of revenue) from $10.6 million (9.9%). Non-GAAP general and administrative expense was $5.8 million (7% of revenue), up from $5.1 million (4.8%).
Non-GAAP operating income for Q4 2025 was $3.4 million, down from $12.2 million in Q4 2024, and non-GAAP net income was $1.4 million, compared with $7.7 million a year earlier.
For the full year 2025, Ceragon’s revenue declined 14.1% from $394.2 million in 2024. Non-GAAP gross margin was 34.5%, compared with 35.1% in 2024. Non-GAAP operating income was $18.0 million (5.3% of revenue), down from $48.8 million (12.4%). Full-year non-GAAP net income was $8.2 million, compared with $36.4 million in 2024.
Cash, working capital, and receivables improvement
Stein said cash at the end of 2025 was $38.4 million, up from $35.3 million at the end of 2024, while short-term loans declined to $19.0 million from $25.2 million. Inventory ended 2025 at $61.6 million, up slightly from $59.7 million.
Trade receivables fell to $99.7 million at year-end 2025 from $149.6 million a year earlier, with days sales outstanding at 107 days. In response to a question on the improvement in accounts receivable, Stein said the company “done a lot of work with customers, mainly in India,” citing sustained follow-up efforts to improve collections across both new and older projects.
On cash flow, Stein said net cash flow generated by operations and investing activities was $7.3 million in Q4 2025 and $15.1 million for 2025, excluding the cost of the E2E acquisition.
2026 outlook reiterated; margin improvement expected
Arazi said the company’s view for 2026 was unchanged from the January update, adding that early-year activity supported management’s confidence in the outlook. Ceragon reiterated full-year 2026 revenue guidance of $355 million to $385 million. Arazi said the guidance assumes progress in advancing backlog in North America, a baseline of $100 million in annualized revenue from India plus incremental demand from two existing customers, “potential timely RFP wins,” and “reasonable recoveries in other regions.”
Stein said Ceragon expects approximately 1 percentage point of improvement in non-GAAP gross margin at the midpoint of the revenue range, citing improved mix between North America and India and additional cost-reduction initiatives. He also said the company is working on a plan to address a “recent spike” in memory component prices. At the midpoint of guidance, Ceragon expects a non-GAAP operating margin of 6.5% to 7.5%, based on the currency assumptions established in January.
On foreign exchange, Stein said Ceragon monitors currency closely and maintains a hedging policy, though it is “less hedged” over longer periods. As a rule of thumb, he said a 1% annualized change in FX would impact operating margin by about 0.1% on an annualized basis.
North America, India, private networks, and product plans
Management pointed to continued execution in North America and steady demand in India. Arazi said execution in North America “continues to be solid,” supported by communications service provider activity, and that the company sees “numerous emerging private network opportunities.” In India, he said activity continues to track at the run rate previously discussed, and that early bookings reinforced confidence in baseline demand.
In response to questions about what could drive results to the high end of 2026 guidance, Arazi said he could envision “various scenarios,” but emphasized that North America and India would need to be “relatively stronger,” along with some expected recovery in other regions.
Arazi also described seasonality expectations, saying Q1 revenue would likely reflect typical first-quarter seasonality, plus some impact from orders that were expected in Q4 but arrived in Q1. He said he still expects the second half of the year to be “much stronger” than the first half, while noting encouragement from early business in India that increased his confidence in achieving at least the low end of the company’s India range.
On private networks, Arazi cited a “multi-million-dollar” private network order in APAC with an electricity transmission utility, following a previously announced competitive win. He said the award reflects Ceragon’s ability to deliver a turnkey solution, supports near-term revenue in 2026, and offers longer-term expansion potential as additional sites are deployed. He added that private network opportunities span regions, including APAC, Europe, and North America, with opportunities in areas such as mining and energy.
The company also outlined product and go-to-market priorities. Arazi said Ceragon plans to launch four new products in 2026, with some expected to generate initial revenue this year, and that investments remain focused on execution and conversion. He called Mobile World Congress in March an important industry event for customer engagement, saying inbound interest and meeting activity heading into the show had been strong and that the event has historically helped turn engagement into trials and revenue over time.
Finally, management addressed point-to-multipoint traction tied to the Siklu acquisition. Arazi said the 60 GHz point-to-multipoint product is gaining traction in security and safety use cases globally and is also drawing interest for small cell backhaul or fixed wireless access in short-distance deployments. He added that Ceragon is seeing increased demand for a similar product in FR2 and is in advanced discussions with customers, while moving forward with related R&D.
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.
