Ceragon Networks (CRNT) investor relations material

Executive summary

• Q1 2026 revenue was $85 million, a 4.1% decrease year-over-year but up from Q4 2025, with strong execution in India and robust North American performance.

• Non-GAAP net income was $0.7 million ($0.01 per diluted share), down from $2.6 million in Q1 2025, with gross margin improving to 36% from 33.5% year-over-year.

• Positive free cash flow and strengthened cash position, with cash and cash equivalents at $39.2 million at quarter-end.

• Management remains optimistic about strategic positioning and reiterates full-year 2026 guidance.

• Gross margin benefited from favorable mix and increased software revenue, but profitability was pressured by macro and industry-wide costs.

Financial highlights

• Q1 2026 revenue was $85 million, down 4.1% year-over-year from $88.7 million.

• Non-GAAP gross profit was $30.6 million, with gross margin rising to 36% from 33.5% year-over-year.

• Non-GAAP operating income was $4.2 million (4.9% margin), down from $4.5 million (5.1%) year-over-year.

• Non-GAAP net income was $0.7 million ($0.01 per diluted share), compared to $2.6 million ($0.03) in Q1 2025.

• Cash and cash equivalents stood at $39.2 million at quarter-end, with positive free cash flow of $2.8 million.

Outlook and guidance

• 2026 revenue guidance reiterated at $355 million–$385 million.

• Non-GAAP gross margin targeted to improve by 1 percentage point; operating margin expected at 6.5%–7.5% at midpoint of revenue range.

• Q2 expected to see higher India revenue and lower North America revenue due to a supply chain issue, pressuring gross margin.

• Q3 anticipated to rebound in North America, normalizing mix and margins.