Ceragon Networks (CRNT) AI Stock Analysis

• Market Cap: $204.05M
• Dividend Yield: N/A
• Average Volume (3M): 408.98K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.19
• Revenue Growth: -3.78%
• EPS Growth: -92.62%
• Country: US
• Employees: 1,056
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.02
• Shares Outstanding: 89,889,970
• 10 Day Avg. Volume: 403,432
• 30 Day Avg. Volume: 408,979
• PEG Ratio: 0.83
• Price to Book (P/B): 1.09
• Price to Sales (P/S): 0.56
• P/FCF Ratio: 10.51
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 0.64
• Enterprise Value/Gross Profit: 1.88
• Enterprise Value/Ebitda: 9.72
• 1Y Price Target: $3.25
• Price Target Upside: 43.17% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.16
• Revenue Forecast (FY): $364.24M

• Rating: 62 Neutral
• Price Target: $2.50 ▲(10.13% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by solid balance-sheet positioning and strong recent cash generation, which partially offset earnings volatility and 2025 revenue/profit declines. Technical indicators are neutral-to-soft, and valuation is a major constraint due to the very high P/E. The latest earnings call adds some support via reiterated 2026 growth and margin improvement guidance, but near-term margin and demand risks remain meaningful.

Positive Factors

Balance-sheet resilience

Low absolute debt and materially higher equity provide durable financial flexibility. This capital structure reduces refinancing risk, supports funding product launches and backlog execution, and allows the company to sustain investment through telecom capex cycles without relying heavily on external financing.

Strong cash generation

Consistent positive operating cash flow and a marked rebound in free cash flow strengthen self-funding capacity. Reliable cash conversion supports working-capital needs, funds R&D and product launches, and cushions the business against cyclical revenue swings, improving long-term solvency and execution ability.

Product roadmap and regional backlog

A clear product roadmap plus expanding North America backlog and an India baseline enhance demand visibility and diversification. New products and regional strength increase addressable market and reduce reliance on single markets, improving sustainable revenue expansion if execution continues as planned.

Negative Factors

Revenue volatility & decline

Sharp top-line reversal undermines confidence in demand durability. Cyclical telecom capex and timing shifts make revenue lumpy; persistent declines would strain margins and limit reinvestment capacity, increasing execution risk for growth plans and making multi-quarter recovery uncertain.

Margin compression & rising expense ratios

Pronounced margin erosion and higher operating expense ratios reduce cash available for strategic investments. Even with guidance for modest margin improvement, elevated S&M and G&A as a percent of revenue risk making margins sensitive to revenue swings and cost inflation over the medium term.

Component costs & working-capital strain

Rising component costs and elevated DSO/inventory create persistent margin and liquidity pressure. Memory price spikes can erode gross margins; long receivable cycles and sizable inventory increase financing needs and amplify exposure to customer payment and order-timing volatility.

Ceragon Networks Business Overview & Revenue Model

Company Description

Ceragon Networks Ltd. provides wireless backhaul and fronthaul solutions that enable cellular operators and other wireless service providers. Its solutions use microwave and millimeter wave radio technology to transfer telecommunication traffic between base stations, small/distributed cells, and the core of the service provider's network. The company also uses microwave technology for ultra-high speed, ultra-low latency communication for wireless 5G and 4G, 3G, and other cellular base stations. In addition, it provides IP-20 all-outdoor solutions, such as IP-20C, IP-20C-HP, IP-20S, IP-20E, and IP-20V; IP-20 split-mount/all-indoor solutions comprising IP-20N/IP-20A, IP-20F, and IP-20G; and IP-50 disaggregated solutions, including IP-50E, IP-50C, IP-50S, and IP-50FX for various short-haul, long-haul, fronthaul, and enterprise access applications. Further, the company offers network management system; and network and radio planning, site survey, solutions development, installation, network auditing and optimization, maintenance, training, and other services. It provides its services to oil and gas companies; public safety organizations; business and public institutions; broadcasters; energy utilities; and private communications networks. The company sells its products through direct sales, original equipment manufacturers, distributors, and system integrators. It operates in North America, Europe, Africa, the Asia Pacific, the Middle East, India, and Latin America. The company was formerly known as Giganet Ltd. and changed its name to Ceragon Networks Ltd. in September 2000. Ceragon Networks Ltd. was incorporated in 1996 and is headquartered in Rosh HaAyin, Israel.

How the Company Makes Money

Ceragon Networks generates revenue through the sale of its wireless backhaul and fronthaul equipment, including microwave radios and related software solutions. Key revenue streams include direct sales to telecommunications operators and enterprises, as well as ongoing maintenance and support services. Additionally, the company benefits from partnerships with major telecom equipment manufacturers and system integrators, which help expand its market reach. Revenue is also supported by contracts for network planning and optimization services, as well as upgrades and enhancements to existing customer networks, ensuring a steady flow of income from both new installations and ongoing service agreements.

Ceragon Networks Financial Statement Overview

Summary

Balance sheet looks resilient with manageable leverage (debt well below equity) and improving equity, while cash generation is a standout with strong 2025 operating cash flow and sharply higher free cash flow. Offsetting this, earnings quality is volatile: 2025 revenue declined and the company returned to a net loss after strong 2024 profitability, raising durability and margin-risk concerns.

Income Statement

Revenue growth has been inconsistent: solid expansion in 2023–2024, followed by a decline in 2025 (annual revenue down ~7%). Profitability also swung meaningfully—2024 produced healthy operating and net profits, but 2025 returned to a small net loss despite still-positive operating profit, suggesting margin pressure and/or below-the-line headwinds. A positive takeaway is the multi-year improvement from the 2022 loss period to strong 2024 results, but the latest year’s reversal lowers confidence in earnings durability.

Balance Sheet

Leverage appears manageable, with total debt (~$49.7M in 2025) well below equity (~$172.8M), and equity has grown versus 2022–2024—supporting balance-sheet resilience. Total assets are relatively stable year to year, and prior years show moderate debt relative to equity. The key weakness is that returns to shareholders were strong in 2024 but profitability weakened in 2025, which can slow further balance-sheet strengthening if it persists.

Cash Flow

Cash generation is a clear strength recently: 2025 operating cash flow (~$31.6M) and free cash flow (~$17.9M) were solid, with free cash flow sharply higher than the prior year (strong growth in 2025). While cash flow was negative in 2021–2022, the rebound since 2023 indicates improving conversion of operations into cash. A watch item is volatility across cycles—free cash flow and operating cash flow have swung materially over the last five years.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	338.73M	394.19M	347.18M	295.17M	290.77M
Gross Profit	114.55M	136.85M	119.87M	93.06M	88.38M
EBITDA	25.38M	45.34M	30.25M	-1.19M	13.08M
Net Income	-2.09M	24.06M	6.22M	-19.69M	-14.83M
Balance Sheet
Total Assets	317.04M	345.00M	298.52M	289.32M	292.56M
Cash, Cash Equivalents and Short-Term Investments	38.37M	35.31M	28.24M	22.95M	17.08M
Total Debt	49.66M	41.11M	50.20M	54.43M	36.37M
Total Liabilities	144.29M	178.67M	164.51M	169.53M	155.41M
Stockholders Equity	172.75M	166.32M	134.02M	119.78M	137.15M
Cash Flow
Free Cash Flow	17.95M	9.73M	17.99M	-17.32M	-24.61M
Operating Cash Flow	31.56M	26.20M	30.89M	-4.89M	-15.02M
Investing Cash Flow	-24.00M	-16.46M	-20.87M	-12.42M	-9.39M
Financing Cash Flow	-5.51M	-1.52M	-4.86M	23.11M	14.53M

Ceragon Networks Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.27
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRNT, the sentiment is Positive. The current price of 2.27 is below the 20-day moving average (MA) of 2.30, above the 50-day MA of 2.24, and above the 200-day MA of 2.26, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 49.48 is Neutral, neither overbought nor oversold. The STOCH value of 63.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CRNT.

Ceragon Networks Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AVNW	63 Neutral	$323.07M	22.14	5.60%	―	10.89%	―
CRNT	62 Neutral	$204.05M	―	-1.23%	―	-3.78%	-92.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
FIEE	56 Neutral	$35.19M	-24.65	-66.84%	―	-5.65%	88.68%
AUDC	55 Neutral	$191.40M	23.11	7.67%	4.28%	0.15%	17.21%
LTRX	55 Neutral	$237.36M	-25.27	-12.12%	―	-26.85%	-93.91%
INSG	55 Neutral	$200.30M	-67.41	―	―	-17.45%	76.52%

Ceragon Networks Corporate Events

Ceragon Networks Posts 2025 Results, Reiterates 2026 Guidance as Cash Position Improves

Ceragon Networks reported fourth-quarter and full-year 2025 results on February 17, 2026, showing revenue declines but continued non-GAAP profitability and improved cash generation. The company ended 2025 with $338.7 million in revenue, a GAAP net loss of $2.1 million, non-GAAP net income of $8.2 million, and a stronger net cash position of $19.4 million despite softer top line versus 2024.

Fourth-quarter 2025 revenue fell 23% year on year to $82.3 million, with GAAP net income near break-even and non-GAAP net income of $1.4 million, while North America remained a key growth engine with backlog entering 2026 nearly double the prior year. Management reiterated its 2026 revenue and margin guidance, signaling confidence in demand momentum and execution as the company seeks to leverage its balance sheet and regional strength to support near double-digit growth.

The most recent analyst rating on (CRNT) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Ceragon Networks stock, see the CRNT Stock Forecast page.

Ceragon Networks Sets February 17, 2026 Date to Report Q4 and Full-Year 2025 Results

On February 3, 2026, Ceragon Networks filed a Form 6-K with the U.S. Securities and Exchange Commission noting, among other items, a company announcement that it plans to release its financial results for the fourth quarter and full year ended December 31, 2025, on Tuesday, February 17, 2026, before the U.S. market opens. Management will host a Zoom webcast and conference call at 8:30 a.m. ET that same day to review the results and conduct a Q&A session, with a replay to be made available on the company’s website for investors who cannot attend live, underscoring Ceragon’s ongoing engagement with the capital markets and its transparency toward shareholders.

The most recent analyst rating on (CRNT) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Ceragon Networks stock, see the CRNT Stock Forecast page.

Ceragon Networks Lifts 2026 Outlook After North American Order Deferral Boosts Backlog

On January 8, 2026, Ceragon Networks issued a business update indicating that it expects preliminary fourth-quarter 2025 revenue of $81 million to $83 million, after a large North American customer deferred certain scheduled deliveries from December 2025 into 2026, a shift that management says boosted year-end backlog and nearly doubled the company’s North American backlog compared with the end of 2024. Looking ahead, Ceragon guided for 2026 annual revenue of $355 million to $385 million, signaling confidence that growing demand in North America and India, continued momentum in private networks, and new product introductions will support a more resilient, diversified and scalable growth profile despite recent order timing volatility.

The most recent analyst rating on (CRNT) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Ceragon Networks stock, see the CRNT Stock Forecast page.

Ceragon Networks to Present at 28th Annual Needham Growth Conference in New York

On January 5, 2026, Ceragon Networks announced that its management team will participate in the 28th Annual Needham Growth Conference in New York, scheduled for January 13–14, 2026, including a fireside chat on Wednesday, January 14 at 10:15 a.m. ET that will be accessible via live webcast and later replay. Management will also be available for one-on-one meetings with investors during the conference, signaling the company’s continued effort to engage the investment community and highlight its role in the rapidly evolving wireless connectivity and 5G infrastructure market.

The most recent analyst rating on (CRNT) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Ceragon Networks stock, see the CRNT Stock Forecast page.