India Demand Drives Ceragon Q2 Revenue Up 14%, but Margin Squeeze Forces Guidance Cut

summarizeSummary

Ceragon reported Q2 revenue of $93.9 million, up 14% year-over-year, but cut full-year margin guidance due to cost pressures. Non-GAAP operating margin is now expected at 5%-6%, down from 6.5%-7.5%.

check_boxKey Events · Earnings and Guidance · CRNT

• Revenue Beats on India Strength

  Q2 revenue rose 14.2% to $93.9 million, with India contributing 48% of sales. Year-to-date bookings from Indian operators reached $120 million, up from $86 million in May.

• Margin Guidance Cut

  Full-year non-GAAP gross margin guidance lowered to 33.5%-34.5% from 35.5%, and non-GAAP operating margin to 5%-6% from 6.5%-7.5%, reflecting cost and supply chain pressures.

• GAAP Net Loss, Non-GAAP Profit

  GAAP net loss was $2.1 million ($0.02/share), while non-GAAP net income was $1.7 million ($0.02/share). Restructuring charges of $1.1 million weighed on GAAP results.

• Cash Position Declines

  Cash and equivalents fell to $34.8 million from $38.4 million at year-end 2025, partly due to $7 million in debt repayments. The company has a $250 million shelf registration available.

auto_awesomeAnalysis · CRNT · Manufacturing

Ceragon delivered strong 14% revenue growth to $93.9 million, driven by India, but gross margin contracted to 31.7% from 34.6% a year ago. Management cut full-year margin guidance — non-GAAP gross margin now seen at 33.5%-34.5% vs. 35.5% previously, and operating margin at 5%-6% vs. 6.5%-7.5%. The revenue outlook was maintained at $355-$385 million, but the margin reset signals cost pressures are eating into profitability. Cash declined to $34.8 million from $38.4 million at year-end, though the company has a $250 million shelf registration available if needed. The stock trades at $2.20, giving a market cap of about $192 million — the margin cut is a material negative for a company already operating near breakeven.