This article first appeared on GuruFocus .
Release Date: May 19, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Ceragon Networks Ltd ( NASDAQ:CRNT ) reported strong execution in key markets, particularly in India, with $86 million in bookings from two leading operators.
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The company experienced healthy demand across its business, with revenue for Q1 2026 at $85 million and non-GAAP EPS at $0.01.
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Gross margin improved to 36% from 33.5% in Q1 2025, benefiting from favorable geographic and product mix.
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Ceragon Networks Ltd ( NASDAQ:CRNT ) is making progress with a major Tier 1 carrier in North America, with successful trials of its new FR2 solution.
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The company has a net positive cash position of $22.1 million, up from $19.4 million at the end of 2025, indicating strong financial health.
Negative Points
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Revenue for Q1 2026 was down 4.1% from Q1 2025, indicating a decline in sales compared to the previous year.
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The company is facing supply chain challenges with a large Tier 1 carrier in North America, impacting revenue timing.
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There are broader industry-wide cost headwinds, including rising memory pricing, elevated copper and metals costs, and high freight costs.
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Foreign exchange fluctuations, particularly the appreciation of the Israeli shekel and the weakness of the Indian rupee, are negatively impacting profitability.
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Operating income for Q1 2026 decreased to $4.2 million from $4.5 million in Q1 2025, reflecting a decline in operational profitability.
Q & A Highlights
Q: Can you provide more details on the expected margin pressure in Q2 and the revenue outlook for India? A: (CEO) We anticipate strong revenue from India in Q2 due to accelerated rollouts, which will result in a higher revenue ratio from India compared to North America. This shift, along with temporary component issues in North America, will impact our gross margins. However, we expect these pressures to be offset in Q3, maintaining our annual targets.
Q: How is the geopolitical situation affecting your supply chain, particularly in North America? A: (CEO) The supply chain challenge involves a semiconductor affected by geopolitical tensions, leading to longer lead times and export license delays. We are working closely with our customer and vendors to resolve this, expecting a recovery in Q3.
Q: What impact does Nokia's divestment of its wireless transmission business have on Ceragon? A: (CEO) Nokia's divestment has increased customer engagement, particularly in Europe, where we see potential new business. This situation is positive for us, as some operators are choosing to increase their purchases from Ceragon.
Q: Can you elaborate on the progress with the new 28 GHz product for North American Tier 1 operators? A: (CEO) The new product, leveraging Wi-Fi 7 technology, has successfully completed a proof-of-concept trial. We are in discussions with multiple carriers, and we expect significant orders in Q3, contributing to revenue in 2027.
Q: How are you addressing the cost pressures and foreign exchange impacts on profitability? A: (CFO) We are implementing initiatives to mitigate cost pressures, which should take effect in Q3. While foreign exchange rates, particularly the Israeli shekel and Indian rupee, have impacted profitability, our hedging policy helps reduce exposure.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
