Ceragon Networks Ltd. reported fourth‑quarter 2025 revenue of $82.3 million, a 14.1% decline from $94.5 million in Q4 2024. The drop is largely attributable to a shift in geographic mix: North America’s share of revenue rose to 39% from 12% in Q4 2024, while India’s contribution fell from 52% to 30%. The company’s total 2025 revenue of $338.7 million also fell 14.1% from $394.2 million in 2024, reflecting the same regional realignment and a modest decline in the company’s core private‑network business.
Operating income for the quarter was $3.4 million, down from $9.5 million in Q4 2024, and non‑GAAP operating income fell to $3.4 million from $9.5 million. Non‑GAAP net income for Q4 2025 was $1.4 million, or $0.02 per diluted share, a miss of $0.01 versus the consensus estimate of $0.03. The lower EPS is driven by the revenue decline and a higher proportion of lower‑margin North American sales, which offset the company’s historically stronger Indian market. Full‑year non‑GAAP net income of $8.2 million, or $0.09 per diluted share, remained in line with the 2024 figure of $8.5 million.
Gross margin for Q4 was 34.3%, slightly below the 34.5% margin reported for the full year, and both figures are marginally lower than the 35.2% margin recorded in Q4 2024. The compression reflects higher cost of goods sold in the North American segment, where the company has invested in new infrastructure to support its expanding customer base. Non‑GAAP operating margin for the quarter fell to 4.2% from 11.4% in Q4 2024, while the full‑year margin contracted to 5.3% from 12.4% in 2024.
Ceragon reaffirmed its 2026 revenue guidance of $355 million to $385 million and reiterated a non‑GAAP operating margin target of 6.5% to 7.5%. Management emphasized that the guidance reflects confidence in a near‑double‑digit revenue growth trajectory, driven by the company’s strategic pivot to North America and the expected impact of the February 2025 acquisition of E2E Technologies, which is projected to strengthen the private‑network portfolio in the United States. The company also plans to launch four new products in 2026, aimed at expanding its market share in the private‑network segment.
The earnings miss and revenue decline highlight the challenges Ceragon faces in a shifting geographic landscape and the need to balance investment in growth markets with margin preservation. Nonetheless, the company’s ability to maintain profitability on a non‑GAAP basis, coupled with a robust balance sheet and a clear growth strategy, suggests that management remains optimistic about the company’s long‑term prospects.
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