Ceragon Networks (NASDAQ:CRNT) reported higher third-quarter revenue and non-GAAP earnings as a rebound in North America and increased software sales helped offset component cost pressures.
Revenue rose 11.7% to $95.5 million from $85.5 million a year earlier. Non-GAAP net income increased to $6.2 million, or $0.07 per diluted share, from $1.7 million, or $0.02 per share. Non-GAAP operating margin expanded to 8.5% from 6.2%.
Chief Executive Officer Doron Arazi said activity with a major North American carrier recovered after a component shortage disrupted business in the second quarter. The company expects supply pressures to continue into 2027 and is responding with longer procurement planning horizons, commitments for critical components and customer price adjustments.
North America rebound lifts margins
North America generated $37.8 million in third-quarter revenue, making it Ceragon’s largest region for the period, followed by India at $33.6 million. Chief Financial Officer Ronen Stein said three customers each accounted for more than 10% of quarterly revenue.
Non-GAAP gross margin rose to 36.4% from 35% a year earlier. Stein attributed the improvement to a favorable geographic and product mix, including more revenue from North America and software, along with a smaller benefit from tariff refunds.
Arazi said the company was nearing the end of technical work with another North American Tier 1 carrier and expected a meaningful order in the fourth quarter. He also pointed to private-network opportunities, including an initial commercial deployment with a fire safety integrator and efforts to replicate private 5G deployments for defense applications.
During the question-and-answer session, Arazi confirmed an analyst’s characterization that gross margins would normalize in the fourth quarter. He cautioned, however, that quarterly margins can fluctuate with regional mix and software purchases.
Guidance and supply constraints
Ceragon maintained its 2026 revenue outlook of $365 million to $375 million. At the midpoint of that revenue range, it also maintained guidance for non-GAAP gross margin of 33.5% to 34.5% and non-GAAP operating margin of 5% to 6%.
Stein said the range of possible fourth-quarter revenue reflected component supply issues rather than demand. Arazi said the company was ordering components further in advance and working with customers to ensure they would take delivery. He said he did not expect demand affected by timing constraints to be canceled.
Arazi said price increases were generally easier to implement with smaller customers than with larger accounts, where agreements and competition can complicate negotiations. He said discussions with some large customers were ongoing and that no increases had yet been concluded with them.
India and EMEA outlook
Arazi expects 2027 volumes in India to be comparable to 2026 levels, based on forecasts from the company’s two main customers there. Additional modernization projects and a potential request for proposals from another major carrier could provide upside, he said.
In Europe, the Middle East and Africa, bookings exceeded revenue over the past two quarters, contributing to a growing backlog, Arazi said. Ceragon secured an award from a new Tier 1 operator in the region and expects initial orders in the coming quarters. Management said it expects significant revenue growth in EMEA in 2027.
Arazi said changes in the competitive landscape were prompting operators to consider alternatives to incumbent suppliers. He also said uncertainty surrounding Nokia’s announced process for divesting a business could create opportunities for other suppliers while operators wait for clarity.
Cash position and market opportunities
Ceragon ended the quarter with $39.1 million in cash and $7 million in short-term loans, resulting in net cash of approximately $32.1 million, up from $19.4 million at the end of 2025. Net cash generated by operating and investing activities was $8.9 million for the quarter, compared with approximately $3 million a year earlier.
Looking ahead, Arazi said disruption at Cambium Networks could help Ceragon gain market share, particularly in North America. Ceragon has hired former Cambium sales professionals, strengthened distributor relationships and partnered with other technology providers, including RADWIN, to broaden its wireless portfolio.
Arazi said the Cambium-related opportunity was more imminent than potential business tied to satellite connectivity or new U.S. wireless infrastructure. He characterized the company’s early 2027 planning outlook as positive but did not provide a quantitative forecast.
About Ceragon Networks (NASDAQ:CRNT)
Ceragon Networks Ltd. (NASDAQ: CRNT) is a telecommunications equipment and solutions provider headquartered in Israel. The company develops wireless transport systems that help communications service providers connect mobile networks, broadband infrastructure and other distributed sites without relying solely on fiber-optic connections.
Its product portfolio includes microwave and millimeter-wave radio systems, packet microwave solutions, antennas, network management software and related services.
