Ceragon Networks (CRNT) 28th Annual Needham Growth Conference Virtual summary

Financial performance and outlook

• Revenue volatility in Q3 and Q4 was due to delivery shifts from major customers, but backlog nearly doubled by end of 2025 with no cancellations and new significant orders received in Q4.

• North America showed a positive trend, with increased backlog, strong private network bookings, and multiple advanced-stage opportunities expected to convert in 2026.

• India started 2025 strong due to a large prior deal, stabilized at a $100M run rate, with slight expansion assumed and potential upside from new RFPs expected to close in H1 2026.

• 2026 revenue guidance is $355M–$385M, including deferred Q4 deliveries, with non-GAAP operating margin guidance of 6.5%–7.5% and gross margin ~100 bps higher.

• Gross and operating margins are expected to improve in 2026, supported by product mix, revenue growth, and ongoing cost savings, despite some OPEX increases and FX headwinds.

Product innovation and technology

• Acquisition of Siklu and E2E has strengthened the product portfolio, enabling new use cases in security, fixed wireless access, and energy/utility sectors, with several new products launching in 2026.

• Proprietary silicon and modem chip technology provide a cost and performance advantage, with new millimeter wave products offering up to 25 Gbps at significantly lower costs.

• Maintains leadership in mmWave segment with proprietary chipset and advanced radios, launching four new mmWave products in E-Band and FR2 frequencies.

• Vertical integration in chip design enables competitive pricing and improved total cost of ownership for operators.

• AI-driven demand is increasing in enterprise networks, with products positioned to address high-capacity, low-latency needs, and a new CTO focused on leveraging radio and data intelligence.

Software, SaaS, and recurring revenue

• Strategic roadmap aims to unify network management, digital twin, and AI-driven analytics into a modular software platform, with growing customer interest and initial POCs and orders.

• SaaS and recurring revenue models are being developed, with customers increasingly willing to pay for advanced software capabilities and growth in software-led managed services.