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Ceragon's Q3 2026 Financial Report Highlights Revenue and Growth Opportunities

Ceragon Networks Ltd. (NASDAQ: CRNT), a prominent provider of comprehensive wireless connectivity solutions, revealed its financial results for the third quarter of 2026, ending on September 30. The report showcases not only resilience but also significant growth in the company's operations, particularly driven by its strong performance in various regions, including North America and India.

Financial Overview

In Q3 2026, Ceragon achieved revenues of $95.5 million, reflecting an 11.7% year-over-year increase compared to $85.5 million in the same quarter of 2025. This notable growth was attributed to a surge in demand from Tier 1 carriers in North America, alongside an increased revenue mix that contributed to a substantial improvement in gross margin.

The company reported a GAAP operating income of $4.5 million, which adjusted up to $8.1 million when accounting for non-GAAP figures. Similarly, Ceragon’s net income figures indicated a positive trend, with GAAP net income standing at $2.4 million, translating into earnings per diluted share of $0.03, while non-GAAP net income reported at $6.2 million highlighted earnings of $0.07 per diluted share.

Key Highlights

Ceragon's strong growth can be attributed to several strategic factors:

• - Diverse Revenue Streams: Sales from India remained notably robust, driven by ongoing network modernization projects, while North America benefitted from increased software demand.
• - Improved Gross Margins: The company achieved a gross margin of 36.0%, reflecting a 430 basis point improvement sequentially compared to the previous quarter, underscoring operational efficiency.

Regional Performance

The company outlined its revenue contributions by geography as follows:

• - North America: 40%
• - India: 35%
• - EMEA: 12%
• - Latin America: 7%
• - APAC: 6%

This breakdown illustrates how pivotal the North American and Indian markets are to Ceragon’s operational strategy moving forward.

CEO Commentary

Doron Arazi, Ceragon's CEO, expressed optimism regarding the results: "We delivered a strong third quarter, highlighted by approximately 12% year-over-year revenue growth, improved profitability, and $14.1 million in positive cash flow from operations. Our strategic engagements in North America, coupled with healthy demand in India, reinforce our competitive stance in the market."

Arazi further elaborated on future prospects, emphasizing notable opportunities in North America driven by evolving network architectures and increasing market demand for E-band solutions in EMEA. He noted that private network business and utilization of Ceragon's unique offerings present avenues for significant growth potential in 2027 and beyond.

Future Outlook

Looking ahead, management has updated the 2026 revenue outlook to a range of $365 million to $375 million. The expectation for non-GAAP gross margin is also optimistic, projected between 33.5% and 34.5% at mid-point estimates. This forward-looking stance underscores Ceragon's ambitions in existing markets while eyeing new growth avenues.

To expand on these results, Ceragon plans to hold a Zoom webcast today at 8:30 a.m. ET, where management will discuss the financial outcomes and insights, followed by a question-and-answer segment. Interested parties can register to gain access to the session.

Conclusion

Ceragon's third-quarter results signify a strong performance amidst a challenging business landscape. Their commitment to enhancing operational efficiency while capturing growth opportunities in emerging and established markets positions them as a significant player in the wireless connectivity domain. With a clear vision for the future and a solid financial foundation, stakeholders can remain confident in Ceragon's trajectory as it continues to push on the frontiers of wireless technology.

For more information about Ceragon and its offerings, you can visit their official website at www.ceragon.com.

Disclaimer: This financial report contains forward-looking statements that involve risks and uncertainties; actual results may differ materially from those projected.