Ceragon Networks (CRNT) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue declined 14.4% year-over-year to $82.3 million, mainly due to a temporary halt in orders from a major Indian customer, but North America showed strong momentum and new strategic wins.

• Non-GAAP EPS was $0.03, with non-GAAP net income of $2.5 million, and healthy operating margins despite revenue headwinds.

• Technological innovation and recent acquisitions expanded capabilities, driving new opportunities in North America and private networks.

• Gross margin was 35.2%, flat year-over-year, and cash and cash equivalents stood at $29.2 million at quarter end.

• Management achieved non-GAAP profitability and positive free cash flow, with continued investment in strategic initiatives.

Financial highlights

• Q2 2025 revenue was $82.3 million, down from $96.1 million in Q2 2024 and $88.7 million in Q1 2025.

• Non-GAAP operating income was $4.7 million, down from $13.1 million in Q2 2024, but up from $4.5 million in Q1 2025.

• Non-GAAP net income was $2.5 million, or $0.03 per diluted share, versus $9.9 million, or $0.11 per share, in Q2 2024.

• Cash and cash equivalents at quarter end were $29.2 million, down from $35.3 million at year-end 2024.

• Operating cash flow for Q2 2025 was $4.8 million, with free cash flow of $6.1 million.

Outlook and guidance

• Near-term visibility is limited due to India, and prior guidance is not reaffirmed; second-half revenue expected to be roughly in line with the first half.

• Management anticipates continued non-GAAP profitability and positive cash flow at current revenue levels.

• Optimism for significant incremental business in India and North America in 2026, with new opportunities in both traditional and private network segments.

• Results are preliminary and unaudited, with potential discrepancies upon final audit.

• Forward-looking statements highlight risks from global economic trends, supply chain volatility, and regional conflicts.