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Ceragon Networks (CRNT)
NASDAQ:CRNT
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Ceragon Networks
(NASDAQ:CRNT)
Rating:63Neutral
Price Target:
$2.00
▲(5.26% Upside)
Positive Factors
North America Performance
North America had its best quarter in over a year.
Technology Leadership Strategy
Management is determined to execute its technology leadership strategy, validated by a recent U.S. tier 1 win.
Negative Factors
Competition in Europe and LatAm
Europe and LatAm showed weakness due to intensifying competition from China.
Revenue Expectations
The revenue is expected to remain flat, implying an extended recovery.
Ceragon Networks (CRNT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$167.02M
Dividend YieldN/A
Average Volume (3M)978.90K
Price to Earnings (P/E)12.3
Beta (1Y)1.03
Revenue Growth5.06%
EPS Growth29.66%
CountryUS
Employees1,056
SectorTechnology
Sector Strength87
IndustryCommunication Equipment
Share Statistics
EPS (TTM)0.03
Shares Outstanding88,839,080
10 Day Avg. Volume948,214
30 Day Avg. Volume978,903
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)2.42
Price to Sales (P/S)1.02
P/FCF Ratio41.35
Enterprise Value/Market Cap1.37
Enterprise Value/Revenue0.58
Enterprise Value/Gross Profit1.71
Enterprise Value/Ebitda4.45
Forecast
1Y Price Target
$2.94Price Target Upside54.74% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Ceragon Networks Business Overview & Revenue Model
Company DescriptionCeragon Networks (CRNT) is a leading provider of wireless backhaul solutions, specializing in high-capacity, cost-effective connectivity for mobile network operators and service providers. Operating primarily in the telecommunications sector, Ceragon offers a range of products and services including microwave radios, broadband solutions, and network management systems designed for 4G and 5G networks. Their innovative technology enables efficient data transfer over long distances, supporting the growing demand for mobile data and connectivity around the globe.
How the Company Makes MoneyCeragon Networks generates revenue primarily through the sale of its wireless backhaul equipment and related services. The company's revenue model is built on multiple key streams including product sales, service contracts, and software licensing. Ceragon often engages in long-term contracts with mobile operators, providing not only the hardware needed for network expansion but also ongoing maintenance and support services. Additionally, strategic partnerships with major telecommunications companies and system integrators enhance its market reach and contribute to its revenue growth. Factors such as the increasing demand for high-speed mobile data, the expansion of 5G networks, and a rising trend towards network densification significantly bolster Ceragon's earnings potential.
Ceragon Networks Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: -15.93%|
Next Earnings Date:Nov 10, 2025
Earnings Call Sentiment Neutral
Despite significant revenue challenges in India leading to a notable year-over-year revenue decline, Ceragon Networks maintained non-GAAP profitability and operating margins, driven by strong performance in North America and successful deployment of their point-to-multipoint solution. The company also generated positive free cash flow, demonstrating financial resilience and operational strength.Q2-2025 Updates
Positive Updates
Non-GAAP Earnings and Operating Margins Maintained
Ceragon Networks delivered $0.03 in non-GAAP earnings per share and maintained healthy operating margins despite disruptions in India, demonstrating operational strength and resilience.
North America Revenue Growth
Revenue in North America reached $26.8 million, the strongest region in terms of revenue, driven by a multimillion-dollar project with a new major Tier 1 carrier.
Point-to-Multipoint Solution Success
Ceragon's point-to-multipoint solution is gaining traction, especially in smart city applications, with a potential multiyear project in Latin America expected to generate recurring annual revenue of $7-8 million for a minimum of 5 years.
Positive Free Cash Flow
The company generated $6.1 million in free cash flow, enabling debt reduction despite revenue headwinds.
Negative Updates
Revenue Decline in India
Revenue from customers in India was $24.8 million, a decrease of 30% year-over-year, due to a key customer's financial challenges and project stalls.
Overall Revenue Decrease
Total revenue for Q2 was $82.3 million, down 14.4% from the same period in 2024, impacted by challenges in India.
Operating Income Decline
Non-GAAP operating income for Q2 was $4.7 million, down from $13.1 million in Q2 2024, primarily due to the absence of a prior year's credit loss recovery benefit and lower gross profit.
Company Guidance
During Ceragon Networks' earnings call, the company addressed several key metrics, indicating both challenges and growth areas. Despite a 14.4% year-over-year decline in revenue for Q2 2025, totaling $82.3 million, Ceragon maintained a non-GAAP gross margin of 35.2%. North American operations showed resilience, contributing $26.8 million to revenue and reflecting a solid performance amidst global challenges. The company reported non-GAAP earnings per share of $0.03, highlighting operational strength despite a significant 30% year-over-year revenue drop in India, which was attributed to financial difficulties faced by a major customer. Ceragon's strategic focus on innovation has positioned it well, with notable advancements in private networks and managed services, especially in North America, where they secured a multimillion-dollar project with a Tier 1 carrier. Although the company withheld specific future guidance due to uncertainties, it anticipates that the second half of the year will mirror the first in terms of revenue, with continued investments in strategic initiatives expected to drive future growth.Ceragon Networks Financial Statement Overview
Summary
Ceragon Networks shows strong financial health with significant improvements in profitability and revenue growth. The income statement reflects efficient operations and cost management. Balance sheet metrics indicate a stable financial position with prudent use of debt. Cash flow performance, while showing some pressure, remains manageable.Income Statement
Ceragon Networks has demonstrated a strong recovery in its income statement metrics. The TTM gross profit margin stands at 33.95%, reflecting efficient cost management. The net profit margin has improved significantly to 5.75%, indicating profitability growth. Revenue growth is consistent, with a notable increase from $262.88M in 2020 to $394.34M in TTM 2025, evidencing a robust upward trajectory. EBIT and EBITDA margins are also healthy at 8.71% and 13.02% respectively, showcasing operational efficiency.78
Positive
Balance Sheet
The balance sheet of Ceragon Networks shows a stable financial position with a debt-to-equity ratio of 0.24, suggesting conservative leverage. The return on equity is 13.58%, indicating effective use of equity capital. However, the equity ratio is 48.25%, showing a balanced asset financing between debt and equity. The company maintains adequate cash reserves, although total assets have seen moderate growth.72
Positive
Cash Flow
Cash flow analysis reveals moderate performance with a free cash flow of $6.16M in TTM 2025, a decrease from previous years. The operating cash flow to net income ratio is close to 1, suggesting that net income is well-backed by cash flows. However, the free cash flow to net income ratio is lower, indicating some pressure in converting profits into free cash flows. Despite fluctuations in capital expenditures, the company manages its cash flows carefully.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 394.34M | 394.19M | 347.18M | 295.17M | 290.77M | 262.88M |
| Gross Profit | 133.88M | 136.85M | 119.87M | 93.06M | 88.38M | 75.64M |
| EBITDA | 51.33M | 45.34M | 30.25M | -1.19M | 13.33M | 3.79M |
| Net Income | 22.68M | 24.06M | 6.22M | -7.40M | -14.83M | -16.11M |
Balance Sheet | ||||||
| Total Assets | 346.18M | 345.00M | 298.52M | 301.61M | 292.56M | 272.42M |
| Cash, Cash Equivalents and Short-Term Investments | 27.69M | 35.31M | 28.24M | 22.95M | 17.08M | 27.10M |
| Total Debt | 40.77M | 41.11M | 50.20M | 54.43M | 36.37M | 13.00M |
| Total Liabilities | 179.17M | 178.67M | 164.51M | 169.53M | 155.41M | 126.29M |
| Stockholders Equity | 167.01M | 166.32M | 134.02M | 132.07M | 137.15M | 146.13M |
Cash Flow | ||||||
| Free Cash Flow | 6.16M | 9.73M | 17.99M | -17.32M | -24.61M | 10.76M |
| Operating Cash Flow | 22.19M | 26.20M | 30.89M | -4.89M | -15.02M | 17.67M |
| Investing Cash Flow | -23.34M | -16.46M | -20.87M | -12.42M | -9.39M | -6.92M |
| Financing Cash Flow | 828.00K | -1.52M | -4.86M | 23.11M | 14.53M | -7.38M |
Ceragon Networks Technical Analysis
Negative
1.90
Price Trends
2.27
Negative
2.26
Negative
3.01
Negative
Market Momentum
-0.12
Positive
37.09
Neutral
19.94
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRNT, the sentiment is Negative. The current price of 1.9 is below the 20-day moving average (MA) of 2.06, below the 50-day MA of 2.27, and below the 200-day MA of 3.01, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 37.09 is Neutral, neither overbought nor oversold. The STOCH value of 19.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CRNT.
Ceragon Networks Risk Analysis
Ceragon Networks disclosed 51 risk factors in its most recent earnings report. Ceragon Networks reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ceragon Networks Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $262.17M | 10.94 | 49.88% | 3.71% | 26.30% | 317.51% | |
63 Neutral | $167.02M | 12.27 | 8.61% | ― | 5.06% | 29.66% | |
61 Neutral | $147.87M | 29.71 | 111.75% | ― | -10.99% | ― | |
57 Neutral | HK$14.80B | 10.64 | -0.76% | 4.27% | 6.99% | -31.80% | |
57 Neutral | $282.49M | 20.94 | 7.32% | 4.19% | -0.93% | 3.10% | |
54 Neutral | $278.90M | ― | -1.32% | ― | 12.39% | -123.62% |
* Technology Sector Average
Performance Comparison
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Ceragon Networks
1.90
-1.18
-38.31%
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21.72
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27.36
13.68
100.00%
INSG
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10.26
-2.76
-21.20%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.