Ceragon Networks Ltd. posted third‑quarter 2025 results that showed a 16.7% decline in revenue to $85.5 million, yet the company beat consensus estimates of $83.48 million by $2.02 million. The decline was largely driven by a 12% drop in legacy product sales, while new‑market deployments in North America and a rebound in India offset the weakness.
Gross profit rose to $29.4 million, giving a non‑GAAP gross margin of 35.0% versus 34.3% in the same quarter last year. The margin expansion reflects higher pricing power in North America and a shift toward higher‑margin E‑band solutions, which have seen stronger demand from service providers seeking resilient, high‑capacity links.
GAAP operating income fell to $3.8 million from $14.6 million year‑over‑year, but non‑GAAP operating profit was $5.3 million. GAAP net income was flat at $0.0 million, while non‑GAAP net income was $1.7 million. The company’s non‑GAAP earnings per share were $0.02, missing consensus estimates of $0.03–$0.04. Management explained that a $0.02 foreign‑exchange impact related to an India‑based project reduced EPS, and that excluding this effect the EPS would have been $0.04, in line with expectations.
Free cash flow was $3.3 million, and the cash balance at the end of September stood at $43.0 million. The positive cash flow, combined with a robust balance sheet, gives Ceragon flexibility to invest in new product development and to weather short‑term market volatility.
CEO Doron Arazi reiterated confidence in the 2025 outlook, reaffirming the full‑year revenue target of $340 million and projecting mid‑single‑digit growth for 2026. Arazi highlighted the company’s ability to capitalize on AI‑driven network demand and the growing need for resilient, high‑capacity wireless transport, positioning Ceragon to benefit from the shift toward hybrid fiber‑wireless architectures.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.