Ceragon Reports Fourth Quarter and Full-Year 2025 Financial Results

Results in-line with January update; Guidance reiterated and balance sheet strengthened

ROSH HA'AIN, Israel, Feb. 17, 2026 /PRNewswire/ -- Ceragon (NASDAQ: CRNT), a leading solutions provider of end-to-end wireless connectivity, today reported its financial results for the fourth quarter and full-year ended December 31, 2025. The results are in-line with the preliminary results disclosed on January 8, 2026.

Q4 2025 Financial Highlights:

FY 2025 Financial Highlights:

Q4 2025 Business Highlights:

Ceragon's CEO, Doron Arazi, commented: "Our fourth quarter and full-year results are consistent with the preliminary results we shared in January. We remained profitable on a non-GAAP basis for both the fourth quarter and full-year 2025 and had strong free cash flow in the fourth quarter. We delivered on what we communicated, strengthened our balance sheet, and exited the year with a significantly higher backlog in North America. Our outlook for 2026 remains unchanged, and we are reiterating our revenue guidance of $355 million to $385 million, which at the midpoint implies near double-digit growth based on the current environment."

Primary Fourth Quarter 2025 Financial Results:

Revenues were $82.3 million, down 23.0% from $106.9 million in Q4 2024.

GAAP Gross profit was $27.7 million, with gross margin of 33.6%, compared to a gross margin of 34.0% in Q4 2024.

GAAP Operating income was $2.4 million compared with $9.5 million in Q4 2024.

GAAP Net income was $0.1 million, or $0.00 per diluted share, compared with $3.6 million, or $0.04 per diluted share in Q4 2024.

Non-GAAP results were as follows: Gross margin was 34.3%, operating income was $3.4 million, and net income of $1.4 million, or $0.02 per diluted share.

Primary Full-Year 2025 Financial Results:

Revenues were $338.7 million, down 14.1% from $394.2 million in 2024.

GAAP Gross profit was $114.6 million, with gross margin of 33.8%, compared to a gross margin of 34.7% in 2024.

GAAP Operating income was a record $7.2 million compared to $38.7 million for 2024.

GAAP Net income (loss) was ($2.1) million, or ($0.02) per diluted share, compared to $24.1 million, or $0.27 per diluted share for 2024.

Non-GAAP results were as follows: Gross margin was 34.5%, operating profit was $18.0 million, and net income was $8.2 million, or $0.09 per diluted share.

Balance Sheet

Cash and cash equivalents were $38.4 million on December 31, 2025, compared to $35.3 on December 31, 2024.

For a reconciliation of GAAP to non-GAAP results, see the attached tables.

Revenue Breakout by Geography:

Q4 2025

North America

39 %

India

30 %

EMEA

15 %

Latin America

10 %

APAC

6 %

Outlook

For 2026, management expects revenue between $355 million and $385 million and non-GAAP operating margin to be between 6.5% to 7.5% at the midpoint of the provided revenue range. This margin outlook reflects the currency assumptions established in January, and management will closely monitor and evaluate currency fluctuations as the year progresses.

Conference Call

The Company will host a Zoom web conference today at 8:30 a.m. ET to discuss the financial results, followed by a question-and-answer session for the investment community.

Investors are invited to register for the conference call by clicking here. All relevant access details will be provided upon registration.

For those unable to join the live call, a replay will be available on the Company's website at www.ceragon.com.

About Ceragon

Ceragon (NASDAQ: CRNT) is the global innovator and leading solutions provider of end-to-end wireless connectivity, specializing in transport, access, and AI-powered managed & professional services. Through our commitment to excellence, we empower customers to elevate operational efficiency and enrich the quality of experience for their end users.

Our customers include service providers, utilities, public safety organizations, government agencies, energy companies, and more, who rely on our wireless expertise and cutting-edge solutions for 5G & 4G broadband wireless connectivity, mission-critical services, and an array of applications that harness our ultra-high reliability and speed. Ceragon solutions are deployed by more than 600 service providers, as well as more than 1,600 private network owners, in more than 130 countries. Through our innovative, end-to-end solutions, covering hardware, software, and managed & professional services, we enable our customers to embrace the future of wireless technology with confidence, shaping the next generation of connectivity and service delivery. Ceragon delivers extremely reliable, fast to deploy, high-capacity wireless solutions for a wide range of communication network use cases, optimized to lower TCO through minimal use of spectrum, power, real estate, and labor resources - driving simple, quick, and cost-effective network modernization and positioning Ceragon as a leading solutions provider for the "connectivity everywhere" era.

For more information please visit: www.ceragon.com

Ceragon Networks® and FibeAir® are registered trademarks of Ceragon Networks Ltd. in the United States and other countries. CERAGON® is a trademark of Ceragon, registered in various countries. Other names mentioned are owned by their respective holders.

Safe Harbor

This press release contains statements that constitute "forward-looking statements" within the meaning of the Securities Act of 1933, as amended and the Securities Exchange Act of 1934, as amended, and the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on the current beliefs, expectations and assumptions of Ceragon's management about Ceragon's business, financial condition, results of operations, micro and macro market trends and other issues addressed or reflected therein. Examples of forward-looking statements include, but are not limited to, statements regarding: projections of demand, revenues, net income, gross margin, capital expenditures and liquidity, competitive pressures, order timing, supply chain and shipping, components availability; growth prospects, product development, financial resources, cost savings and other financial and market matters. You may identify these and other forward-looking statements by the use of words such as "may", "plans", "anticipates", "believes", "estimates", "targets", "expects", "intends", "potential" or the negative of such terms, or other comparable terminology, although not all forward-looking statements contain these identifying words.

Although we believe that the projections reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations there from will not be material. Such forward-looking statements involve known and unknown risks and uncertainties that may cause Ceragon's future results or performance to differ materially from those anticipated, expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to: Company's forward-looking forecasts, with respect to which there is no assurance that such forecasts will materialize; Company's ability to future plan, business, marketing and product strategies on the forecasted evolution of the market developments, such as market and territory trends, future use cases, business concepts, technologies, future demand, and necessary inventory levels; the effects of fluctuations in currency exchange rates between the currencies in which we operate; the effects of global economic trends, including recession, rising inflation, rising interest rates, commodity price increases and fluctuations, commodity shortages and exposure to economic slowdown; risks related to conditions in Israel and the escalation of hostilities in the Middle East; risks associated with delays in the transition to 5G technologies and in the 5G rollout; risks relating to the concentration of our business on a limited number of large mobile operators and the fact that the significant weight of their ordering, compared to the overall ordering by other customers, coupled with inconsistent ordering patterns, could negatively affect us; risks resulting from the volatility in our revenues, margins and working capital needs; disagreements with tax authorities regarding tax positions that we have taken could result in increased tax liabilities; the high volatility in the supply needs of our customers, which from time to time lead to delivery issues and may lead to us being unable to timely fulfil our customer commitments; and such other risks, uncertainties and other factors that could affect our results of operation, as further detailed in Ceragon's most recent Annual Report on Form 20-F, as published on March 25, 2025, as well as other documents that may be subsequently filed by Ceragon from time to time with the Securities and Exchange Commission.

We caution you not to place undue reliance on forward-looking statements, which speak only as of the date hereof. Ceragon does not assume any obligation to update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release unless required by law.

While we believe that we have a reasonable basis for each forward-looking statement contained in this press release, we caution you that these statements are based on a combination of facts and factors currently known by us and our projections of the future, about which we cannot be certain. In addition, any forward-looking statements represent Ceragon's views only as of the date of this press release and should not be relied upon as representing its views as of any subsequent date. Ceragon does not assume any obligation to update any forward-looking statements unless required by law.

The results reported in this press release are preliminary and unaudited results, and investors should be aware of possible discrepancies between these results and the audited results to be reported, due to various factors.

Ceragon's public filings are available on the Securities and Exchange Commission's website at www.sec.gov and may also be obtained from Ceragon's website at www.ceragon.com.

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Ceragon Investor & Media Contact:

Rob Fink

FNK IR

Tel.: 1+646-809-4048

[email protected]

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(U.S. dollars in thousands, except share and per share data)

Three months ended

Year ended

December 31,

2025

2024

2025

2024

Revenues

82,330

106,932

338,728

394,190

Cost of revenues

54,667

70,550

224,176

257,339

Gross profit

27,663

36,382

114,552

136,851

Operating expenses:

Research and development, net

7,891

8,969

30,427

34,951

Sales and Marketing

12,053

11,077

48,681

44,717

General and administrative

6,005

5,374

24,394

14,220

Restructuring and related charges

3,732

1,416

Acquisition- and integration-related charges

(652)

283

1,660

Other operating expenses

1,160

Total operating expenses

25,297

26,863

107,306

98,124

Operating income

2,366

9,519

7,246

38,727

Financial expenses and others, net

1,656

4,863

6,538

11,474

Income before taxes

710

4,656

708

27,253

Taxes on income

581

1,046

2,798

3,190

Net income (loss)

129

3,610

(2,090)

24,063

Basic net income (loss) per share

0.00

0.04

(0.02)

0.28

Diluted net income (loss) per share

0.00

0.04

(0.02)

0.27

Weighted average number of shares used in

computing basic net income (loss) per share

90,612,915

87,207,634

89,787,286

86,191,178

Weighted average number of shares used in

computing diluted net income (loss) per share

92,432,382

89,987,560

89,787,286

88,460,001

CONDENSED CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands)

December 31,

2025

2024

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

38,368

35,311

Trade receivables, net

99,673

149,619

Inventories

61,587

59,693

Other accounts receivable and prepaid expenses

25,576

16,415

Total current assets

225,204

261,038

NON-CURRENT ASSETS:

Severance pay and pension fund

362

4,915

Property and equipment, net

39,952

36,764

Operating lease right-of-use assets

16,554

16,702

Intangible assets, net

23,182

16,791

Goodwill

11,007

7,749

Other non-current assets

781

1,037

Total non-current assets

91,838

83,958

Total assets

317,042

344,996

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:

Trade payables

70,784

91,157

Deferred revenues

2,371

2,573

Short-term loans

19,000

25,200

Operating lease liabilities

4,001

2,971

Other accounts payable and accrued expenses

24,071

29,547

Total current liabilities

120,227

151,448

LONG-TERM LIABILITIES:

Accrued severance pay and pension

2,537

8,359

Operating lease liabilities

13,331

12,936

Other long-term payables

8,195

5,928

Total long-term liabilities

24,063

27,223

SHAREHOLDERS' EQUITY:

Share capital

234

232

Additional paid-in capital

454,640

447,369

Treasury shares at cost

(20,091)

Other comprehensive loss

(8,816)

(10,060)

Accumulated deficit

(253,215)

(251,125)

Total shareholders' equity

172,752

166,325

Total liabilities and shareholders' equity

317,042

344,996

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

(U.S. dollars, in thousands)

Three months ended

Year ended

December 31,

2025

2024

2025

2024

Cash flow from operating activities:

Net income (loss)

129

3,610

(2,090)

24,063

Adjustments to reconcile net income (loss) to net cash

provided by operating activities:

Depreciation and amortization

3,927

3,251

14,327

12,112

Loss from sale of property and equipment, net

207

Stock-based compensation expense

1,030

921

4,091

4,298

Decrease (increase) in accrued severance pay and

pensions, net

(239)

(599)

(970)

Decrease (increase) in trade receivables, net

12,275

(28,437)

52,567

(46,224)

Decrease (increase) in other assets (including other

accounts receivable, prepaid expenses, other non-current

assets, and the effect of exchange rate changes on cash

and cash equivalents)

(4,596)

3,656

(8,819)

1,344

Decrease (increase) in inventory

(3,531)

(309)

(2,128)

7,606

Decrease in operating lease right-of-use assets

1,610

939

4,626

4,632

Increase (decrease) in trade payables

1,175

15,291

(22,103)

23,032

Increase (decrease) in other accounts payable and accrued

expenses (including other long-term payables)

(199)

3,549

(5,088)

3,898

Decrease in operating lease liability

(1,328)

(689)

(3,053)

(4,196)

Increase (decrease) in deferred revenues

465

(452)

(219)

(3,604)

Net cash provided by operating activities

11,023

1,129

31,556

26,198

Cash flow from investing activities:

Purchases of property and equipment, net

(3,033)

(3,727)

(13,609)

(14,581)

Software development costs capitalized

(1,143)

(645)

(3,818)

(1,883)

Payments made in connection with business acquisitions,

net of acquired cash

(6,570)

Net cash used in investing activities

(4,176)

(4,372)

(23,997)

(16,464)

Cash flow from financing activities:

Proceeds from exercise of stock options

5,071

690

5,878

Repayments of bank credits and loans, net

(12,000)

(6,200)

(7,400)

Net cash provided by (used in) financing activities

(11,965)

5,071

(5,510)

(1,522)

Effect of exchange rate changes on cash and cash

equivalents

499

(531)

1,008

(1,138)

Increase (decrease) in cash and cash equivalents

(4,619)

1,297

3,057

7,074

Cash and cash equivalents at the beginning of the period

42,987

34,014

35,311

28,237

Cash and cash equivalents at the end of the period

38,368

35,311

38,368

35,311

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS

(U.S. dollars in thousands, except share and per share data)

Three months ended

December 31,

Year ended

December 31,

2025

2024

2025

2024

GAAP Cost of revenues

54,667

70,550

224,176

257,339

Stock-based compensation expenses

(148)

(121)

(471)

(495)

Amortization of acquired intangible assets

(421)

(189)

(1,799)

(756)

Excess cost on acquired inventory in business combination (*)

(124)

Non-GAAP Cost of revenues

54,098

70,240

221,906

255,964

GAAP Gross profit

27,663

36,382

114,552

136,851

Stock-based compensation expenses

148

121

471

495

Amortization of acquired intangible assets

421

189

1,799

756

Excess cost on acquired inventory in business combination (*)

124

Non-GAAP Gross profit

28,232

36,692

116,822

138,226

GAAP Research and development expenses

7,891

8,969

30,427

34,951

Stock-based compensation expenses

(211)

(192)

(679)

(701)

Loss from termination of joint development agreement

Non-GAAP Research and development expenses

7,680

8,777

29,748

34,250

GAAP Sales and marketing expenses

12,053

11,077

48,681

44,717

Stock-based compensation expenses

(417)

(332)

(1,361)

(1,356)

Amortization of acquired intangible assets

(258)

(117)

(1,030)

(622)

Non-GAAP Sales and marketing expenses

11,378

10,628

46,290

42,739

GAAP General and administrative expenses

6,005

5,374

24,394

14,220

Stock-based compensation expenses

(254)

(276)

(1,580)

(1,746)

Non-GAAP General and administrative expenses

5,751

5,098

22,814

12,474

GAAP Restructuring and related charges

3,732

1,416

Restructuring and related charges

(3,732)

(1,416)

Non-GAAP Restructuring and related charges

GAAP Acquisition- and integration-related charges

(652)

283

1,660

Acquisition- and integration-related charges

652

(283)

(72)

(1,660)

Non-GAAP Acquisition- and integration-related charges

GAAP Other operating expenses

1,160

Other operating expenses

(1,160)

Non-GAAP Other operating expenses

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS

(U.S. dollars in thousands, except share and per share data)

Three months ended

December 31,

Year ended

December 31,

2025

2024

2025

2024

GAAP Operating income

2,366

9,519

7,246

38,727

Stock-based compensation expenses

1,030

921

4,091

4,298

Amortization of acquired intangible assets

679

306

2,829

1,378

Excess cost on acquired inventory in business combination (*)

124

Restructuring and other charges

3,732

1,416

Acquisition- and integration-related charges

(652)

283

1,660

Other operating expenses

1,160

Non-GAAP Operating income

3,423

12,189

17,970

48,763

GAAP Financial expenses and others, net

1,656

4,863

6,538

11,474

Leases – financial income (expenses)

(283)

(1,573)

(167)

Non-cash revaluation expenses associated with business combination

(1,385)

1,995

(1,703)

Non-GAAP Financial expenses and others, net

1,396

3,493

6,960

9,604

GAAP Tax expenses

581

1,046

2,798

3,190

Non-cash tax adjustments

(413)

Non-GAAP Tax expenses

581

1,046

2,798

2,777

GAAP Net income (loss)

129

3,610

(2,090)

24,063

Stock-based compensation expenses

1,030

921

4,091

4,298

Amortization of acquired intangible assets

679

306

2,829

1,378

Excess cost on acquired inventory in business combination (*)

124

Restructuring and other charges

3,732

1,416

Acquisition- and integration-related charges

(652)

283

1,660

Other operating expenses

1,160

Leases – financial expenses (income)

283

(15)

1,573

167

Non-cash revaluation expenses associated with business combination

(23)

1,385

(1,995)

1,703

Non-cash tax adjustments

413

Non-GAAP Net income

1,446

7,650

8,212

36,382

GAAP Basic net income (loss)per share

0.00

0.04

(0.02)

0.28

GAAP Diluted net income (loss)per share

0.00

0.04

(0.02)

0.27

Non-GAAP Diluted net income per share (**)

0.02

0.09

0.41

(*) Consists of charges to cost of revenues for the difference between the fair value of acquired inventory in business combination, which was recorded at fair value, and the actual cost of this inventory, which impacts the Company's gross profit.

(**) Weighted average number of shares used in computing diluted net income per share is the same as in GAAP

SOURCE Ceragon Networks Ltd.