Ceragon's Q2 2025 Earnings Call: Contradictions Unraveled on India Market, Gross Margins, and Private Networks Growth

Revenue Challenges and Regional Dynamics:
- Ceragon's Q2 revenue was $82.3 million, down 14.4% from the previous year and 14.2% from the prior quarter.
- The decline was primarily due to slowdown in India, where revenue from customers was $24.8 million, down 30% year-over-year, attributed to a key customer facing financial challenges.

Technology and Market Strategy:
- The company secured a multi-million dollar project with a Tier 1 carrier in North America, leveraging Siklu technology, and saw increased interest in its point-to-multipoint solutions.
- Ceragon's strategic focus on advanced wireless connectivity, private networks, and managed services is driving new opportunities and market penetration.

Operational Efficiency and Cost Management:
- Gross margin remained steady at 35.2% during the quarter despite lower revenue.
- The company maintained healthy operating margins and generated $6.1 million in free cash flow by managing costs and optimizing operational expenses.

Outlook and Market Positioning:
- Despite limited visibility for the second half, Ceragon expects revenue to be roughly in line with the first half, aiming for non-GAAP profit and cash generation.
- The company's strategic focus on technological leadership and cost effectiveness is positioning it to capitalize on global market opportunities.