Cambium Networks Corporation

Q3 2024 revenue was $43.7 million, down 5% sequentially. Non-GAAP gross margin was 42.3%, up from 33.5% in Q2. Non-GAAP net loss was $3.8 million, or $0.14 per diluted share, versus a loss of $7.1 million, or $0.25 per share, in Q2. Adjusted EBITDA was a loss of $2.3 million versus a loss of $6.7 million in Q2. Cash flow from operations was $8.9 million, free cash flow was $5.2 million, cash was $46.5 million, and net inventories were $43 million. For Q4 2024, management guided to revenue of $40 million to $45 million, non-GAAP gross margin of 42.5% to 45.5%, non-GAAP operating loss of $3 million to $5 million, and adjusted EBITDA of negative $1 million to negative $3 million.

Morgan Kurk said the company is seeing results from efforts to improve operations, simplify the portfolio, and optimize go-to-market for Enterprise. He highlighted strong Enterprise momentum, new product launches, and better software releases across legacy PMP and ePMP products, while noting that defense was disappointing but the pipeline remains encouraging. His tone was cautiously constructive, with repeated emphasis that the business is moving in the right direction.

Jacob Sayer focused on the quarter’s financial improvement, pointing to the rise in non-GAAP gross margin to 42.3% from 33.5% and the reduction in operating expenses to $22.1 million, down $1.2 million sequentially. He said the higher gross margin mainly reflected lower E&O and supplier-commitment losses, and that the company has lowered its adjusted EBITDA breakeven to about a $50 million quarterly revenue run rate. He also flagged the balance sheet issue: compliance with the trailing EBITDA covenant was not met as of September 30, liquidity covenant noncompliance occurred as of October 31, and the company is working with the bank on a forbearance.

Analyst John Roy pressed on whether weak defense demand was merely delayed or permanently lost; management said they are comfortable saying the business did not go to a competitor, but cautioned that some government programs can still be canceled altogether. He also asked about the bank situation, and management said they had no concrete timing to share because they are still negotiating with the bank and private equity firm. On the broader strategy, Jacob Sayer said Enterprise is the company’s growth area, while PTP is being compressed by market forces and defense remains lumpy.