Ceragon Networks' Q1 2025: Unpacking Contradictions in Private Networks, Margins, and Market Dynamics

Private network opportunities and market growth, gross margin expansion strategy, impact of tariffs on customer decision-making, gross margin expansion and long-term goals, Siklu's demand and market opportunities are the key contradictions discussed in Ceragon Networks' latest 2025Q1 earnings call.



Strong Financial Performance and Bookings:
- Ceragon Networks reported the highest bookings since Q1 2024, with particular strength in India and North America.
- The growth was driven by increased demand across India and EMEA, as well as sustained growth in North America.

India's Contribution and Growth Opportunities:
- India contributed $42.9 million in revenue, an increase of 65% year-over-year, with significant bookings tied to a major network modernization initiative.
- This was attributed to broad-based demand and strategic alignment with customers' needs, positioning Ceragon for long-term success.

Tariff Dynamics and Strategic Positioning:
- Ceragon acknowledged tariff dynamics affecting Private Network customers but noted continued activity among carriers.
- The company's diversified manufacturing footprint and adaptable supply chain enable it to proactive navigate these changes and maintain profitability.

Acquisitions and Product Roadmap:
- Ceragon's acquisition of E2E Technologies in February strengthened its expertise in Private Networks, particularly in the energy and utilities sector in North America.
- The company is focusing on expanding its millimeter-wave and Private Network capabilities, such as the upcoming E-Band product launch in India.

Revenue and Non-GAAP Profitability:
- Ceragon's revenue was $88.7 million in Q1 2025, up 0.2% year-over-year, with India being the strongest region.
- Non-GAAP profitability was maintained amidst volatile market conditions, supported by strong bookings and strategic positioning in high-growth segments.