Ceragon Networks (CRNT) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $85.0 million, down 4.1% year-over-year but up from Q4 2025, with non-GAAP EPS of $0.01 and strong execution in India and North America.

• Gross margin improved to 36.0% from 33.5% year-over-year, reflecting favorable geographic and product mix.

• Non-GAAP net income was $0.7 million, down from $2.6 million in Q1 2025 and $1.4 million in Q4 2025.

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

• Management remains optimistic, reiterating full-year 2026 guidance and highlighting robust demand in key markets.

Financial highlights

• Q1 2026 revenue was $85.0 million, down from $88.7 million in Q1 2025 but up from $82.3 million in Q4 2025.

• Non-GAAP gross profit was $30.6 million, with gross margin at 36.0%.

• Non-GAAP operating income was $4.2 million (4.9% of revenue), compared to $4.5 million (5.1%) in Q1 2025.

• Non-GAAP net income was $0.7 million or $0.01 per diluted share; GAAP net loss was $1.3 million.

• Cash flow from operations was $6.5 million, up from $2.6 million in Q1 2025.

Outlook and guidance

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

• Non-GAAP gross margin target is a 1 percentage point improvement; operating margin guidance is 6.5%–7.5% at midpoint.

• Q2 expected to see higher revenue from India and lower from North America due to supply chain issues, with margin pressure.

• Q3 anticipated to rebound as North America recovers and cost mitigation efforts take effect.