Ceragon Networks (CRNT) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue was $85.5M, with North America leading at 41% and India at 29% of the geographic split; North America achieved record revenue and bookings, while India saw renewed activity.

• Non-GAAP net income was $1.7M ($0.02 per diluted share), with strong free cash flow of $3.3M and cash reserves rising to $43M.

• Improved visibility in customer spending and project timing, boosting confidence for 2025 and optimism for 2026 growth.

• Strategic focus on AI-driven demand, network capacity, and resiliency, with innovative E-band and 60 GHz solutions gaining traction.

• Expanded managed services and digital twin offerings, with notable wins in Latin America and the U.S., including a major smart city project and e-commerce client.

Financial highlights

• Q3 2025 revenue was $85.5M, down 16.7% year-over-year from $102.7M in Q3 2024 and down from $88.7M in Q2 2025.

• Non-GAAP gross margin was 35%, slightly up from prior year; non-GAAP gross profit was $29.9M, down 15.1% year-over-year.

• Non-GAAP net income was $1.7M, down from $14.1M in Q3 2024; EPS would have been $0.04 excluding FX impact.

• Free cash flow for Q3 was $3.3M; cash position at quarter-end was $43M, up from $35.3M at end of 2024.

• Operating income (non-GAAP) was $5.3M, down from $15.8M in Q3 2024, impacted by absence of a $5.1M credit loss recovery benefit.

Outlook and guidance

• Confident in achieving $340M full-year revenue target for 2025, with improved visibility and momentum.

• Optimistic for growth in 2026, with a strong funnel of opportunities across all regions and segments.

• Mid-single-digit growth expected for 2026, with potential for upside as annual planning finalizes.