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

Financial performance and outlook

• Q3 revenue volatility was due to delivery shifts from major customers, but no cancellations occurred, resulting in a larger backlog for 2026.

• North America showed a positive trend, contributing to improved gross margins, a strong backlog, and multiple advanced-stage opportunities expected to convert in 2026.

• India’s revenue run rate decreased to $100 million in the latter half of 2025, with slight expansion assumed for 2026 and new opportunities anticipated.

• Gross margin is expected to increase by 1% in 2026, driven by product mix, revenue growth, and ongoing cost savings, with non-GAAP operating margin guidance of 6.5%–7.5%.

• 2026 revenue guidance is $355M–$385M, including deferred Q4 deliveries, and backlog at end of 2025 nearly doubled versus end of 2024.

Strategic initiatives and product development

• Expanded product portfolio, including Siklu technology, is fueling new use cases and customer traction, especially in security and fixed wireless access.

• Four new products leveraging higher 5G frequencies and mmWave are set to launch in 2026, already generating customer commitments.

• Vertical integration with proprietary silicon and RF chips enables cost-effective, high-performance products, supporting competitive pricing and margin improvement.

• Investment is focused on both product development and sales, with increased sales resources targeting high-ROI opportunities and new product launches.

• Exploring strategic acquisitions for incremental growth and scale.

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 in SaaS models.

• Growth in software-led managed services and new software applications is increasing recurring revenue and profitability.