Ceragon Networks (CRNT) Q1 2025 earnings summary

Executive summary

• Achieved highest booking levels since Q1 2024, with strong rebounds in India and EMEA and solid growth in North America; bookings improved in all regions, with private networks and E2E acquisition exceeding expectations.

• Q1 2025 revenues reached $88.7 million, a 0.2% increase year-over-year, with non-GAAP operating income of $4.5 million and non-GAAP net income of $2.6 million ($0.03 per diluted share).

• Positive demand signals observed, especially at Mobile World Congress, validating strategic alignment for long-term success.

• Acquisition of E2E Technologies completed, strengthening private network expertise, especially in North America.

• Private networks and software-driven services are key growth areas, with increasing customer interest and recurring revenue potential.

Financial highlights

• Q1 2025 revenue was $88.7 million, up 0.2% year-over-year from $88.5 million.

• Non-GAAP gross profit was $29.7 million, down 8.6% year-over-year; gross margin declined to 33.5% from 36.7%.

• Non-GAAP operating income was $4.5 million, down from $7.6 million in Q1 2024; GAAP operating loss was $(1.1) million due to $3.7 million in restructuring and $0.5 million in acquisition-related charges.

• Non-GAAP net income was $2.6 million ($0.03 per diluted share), compared to $4.7 million ($0.05 per share) in Q1 2024; GAAP net loss was $(1.0) million ($(0.01) per diluted share).

• Cash position at quarter-end was $27.7 million, down from $35.3 million, mainly due to the E2E acquisition.

Outlook and guidance

• Reiterated 2025 revenue guidance of $390 million–$430 million, including E2E Technologies.

• Expects non-GAAP operating margin of at least 10% at the low end of revenue guidance.

• Anticipates higher positive cash flow in 2025 versus 2024.

• Significant revenue uptick expected in the second half of 2025, mainly from India and EBAN product rollout.