Ceragon Networks Ltd.

Q2 2026 revenue was $93.9 million, up 14.2% from $82.3 million in Q2 2025. Non-GAAP gross profit was $30.3 million versus $29.0 million a year ago, and non-GAAP gross margin was 32.2% versus 35.2% in Q2 2025. Non-GAAP operating income was $4.0 million versus $4.7 million, and non-GAAP net income was $1.7 million, or $0.02 per diluted share, versus $2.5 million, or $0.03 per diluted share. Revenue guidance for 2026 was reiterated at $355 million to $385 million, while full-year non-GAAP gross margin guidance was reduced to 33.5% to 34.5% from 35.5%, and operating margin guidance was reduced to 5% to 6% from 6.5% to 7.5%.

Doron Arazi said Ceragon’s newer technologies and solutions are creating a competitive advantage and that the company is seeing strong demand in India, North America, private networks, and managed services. He emphasized that the issue is not demand or visibility, but supply-chain disruption and component timing, which is forcing a cautious revenue frame despite strong bookings. His tone was confident on the strategic direction, saying the company is expanding TAM and gaining opportunities as the competitive landscape changes.

Ronen Stein said Q2 was profitable on a non-GAAP basis and generated positive free cash flow from operating and investing activities. He cited non-GAAP gross profit of $30.3 million, gross margin of 32.2%, operating income of $4.0 million, and net income of $1.7 million; cash ended at $34.8 million, short-term loans were $12 million, and net positive cash was about $22.8 million. He said inventory was $59.5 million, receivables were $101.3 million, DSO was 107 days, and component costs and supply-chain issues are expected to pressure gross margins through the rest of 2026.

Analysts pressed on why guidance was not raised given strong bookings, especially from India and improving North America trends. Management said the limiting factor is component availability and delivery timing, not demand, and that the AI-driven chip shortage is making conversion to revenue harder to predict. Questions also focused on India mix, U.S. private networks, LEO/Starlink, and 2027; management said India demand is driven by 4G upgrades and FWA/5G expansion, private networks convert more slowly, and any Starlink terrestrial build could create backhaul opportunities but remains too early to assess.