Ceragon Networks Q2 2025 Earnings Call Highlights: Navigating India Challenges, Securing New Deals, and Generating Strong Cash Flow

Ceragon Networks Ltd reported Q2 2025 earnings of $0.03 non-GAAP EPS and $82.3 million revenue, down 14.4% YoY, mainly due to challenges in the Indian market. Despite disruptions, the company secured a multi-million dollar project in North America and is experiencing increased interest in its point-to-multipoint solution. However, revenue from Indian customers decreased by 30% YoY, and the company is not reaffirming prior guidance due to limited visibility.

Ceragon Networks Ltd. (CRNT) announced its Q2 2025 earnings results, reporting a non-GAAP EPS of $0.03 and revenue of $82.3 million, down 14.4% year-over-year (YoY) [1]. The earnings were in line with the consensus estimate of $0.03 EPS, while revenue missed the consensus estimate of $94.41 million by 8.01% [3]. The company attributed the revenue decline to challenges in the Indian market, where revenue decreased by 30% YoY [2].

Despite the challenges in India, Ceragon secured a multi-million dollar project in North America, showcasing its competitive edge. The company also reported increased interest in its point-to-multipoint solution, particularly in smart city applications, which could lead to significant recurring revenue. The IP-50 EXP solution, a leading traditional microwave solution alternative, is gaining traction, offering high capacity at a lower total cost of ownership [2].

Ceragon generated $6.1 million in free cash flow during the quarter, enabling debt reduction despite revenue headwinds. However, the company is not reaffirming prior guidance due to limited visibility, particularly in India [2]. Operating income on a non-GAAP basis for the second quarter was $4.7 million, a significant decline from $13.1 million in the previous year. General and administrative expenses increased significantly as a percentage of revenue, impacting overall profitability [2].

The CEO, Doron Razi, expressed optimism about new opportunities in the traditional microwave business and private networks, expecting the second half of the year to be similar to the first. The CFO, Ronen Stein, noted that the company is prepared to capitalize on any upward trends in India and is more optimistic for 2026 [2]. The company has a history of beating EPS estimates 88% of the time over the last two years and revenue estimates 88% of the time over the same period [1].

The stock has lost about 51.6% since the beginning of the year, underperforming the S&P 500's gain of 7.1%. The Zacks Rank for Ceragon is #4 (Sell), indicating that the shares are expected to underperform the market in the near future [3]. The company's earnings outlook will be crucial for investors to assess the stock's potential future performance.

References:
[1] https://seekingalpha.com/news/4478710-ceragon-networks-q2-2025-earnings-preview
[2] https://finance.yahoo.com/news/ceragon-networks-ltd-crnt-q2-170047663.html
[3] https://www.nasdaq.com/articles/ceragon-networks-crnt-q2-earnings-match-estimates