Ceragon Networks (CRNT) AI Stock Analysis

• Market Cap: $204.33M
• Dividend Yield: N/A
• Average Volume (3M): 546.60K
• Price to Earnings (P/E): 157.2
• Beta (1Y): 1.17
• 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: 88,839,080
• 10 Day Avg. Volume: 383,896
• 30 Day Avg. Volume: 546,600
• PEG Ratio: 0.06
• Price to Book (P/B): 2.42
• Price to Sales (P/S): 1.02
• P/FCF Ratio: 41.35
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 0.60
• Enterprise Value/Gross Profit: 1.78
• Enterprise Value/Ebitda: 7.42
• 1Y Price Target: $3.25
• Price Target Upside: 35.98% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: $2.50 ▲(4.60% Upside)

Ceragon Networks' overall stock score is primarily impacted by its mixed financial performance and bearish technical indicators. The high P/E ratio suggests overvaluation, further weighing down the score. While the earnings call highlighted some positive developments, the financial and technical challenges are more significant factors in the current assessment.

Positive Factors

North American demand & backlog

A materially larger North American backlog and firm 2026 revenue guidance indicate durable demand from Tier‑1 customers. This reduces cyclicality, supports revenue visibility into the next year, and underpins investment planning and capacity allocation across markets.

Conservative balance sheet

Low leverage and a solid equity base provide financial flexibility to fund R&D, absorb project timing shifts, and pursue selective M&A or product investments without pressuring liquidity, supporting multi‑quarter strategic execution.

Growing recurring services

Expansion into managed services and digital‑twin offerings builds recurring revenue and higher lifetime customer value. This structural shift diversifies sales beyond one‑time hardware cycles and improves revenue resilience and margin predictability over several quarters.

Negative Factors

Revenue decline trend

Sustained year‑over‑year revenue declines erode economies of scale and constrain investment capacity. If demand recovery lags, margin pressure and slower R&D or sales expansion could persist, hampering multi‑quarter growth prospects and strategic initiatives.

Weak cash conversion

Significant drop in free cash flow and poor conversion from net income reduce internal funding for capex, inventory, and product development. Over several quarters this can increase reliance on external financing or constrain the pace of scaling higher‑margin services.

Order timing volatility & customer concentration

Dependence on a few large customers creates revenue timing risk when deliveries are deferred. Such volatility undermines predictability of bookings and quarterly cash flows, complicating capacity planning and increasing execution risk across the medium term.

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

Ceragon Networks presents a mixed financial picture. The income statement shows profitability with decent margins, but a decline in revenue growth is concerning. The balance sheet is strong with low leverage and a solid equity base, providing stability. However, the cash flow statement indicates challenges in cash generation, which could impact future investments and growth. Improvement in revenue growth and cash flow generation is needed to enhance financial health.

Income Statement

Ceragon Networks shows a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) data indicates a decline in revenue growth rate by 4.52%, which is concerning. However, the company maintains a decent gross profit margin of 33.79% and a net profit margin of 3.57%, indicating some level of profitability. The EBIT and EBITDA margins are moderate at 7.82% and 11.29%, respectively, suggesting operational efficiency. Despite the revenue decline, the company has managed to stay profitable, which is a positive sign.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.22, indicating a conservative approach to leverage. The return on equity (ROE) is 8.20%, which shows the company is generating a reasonable return on shareholders' equity. The equity ratio stands at 52.64%, suggesting a solid equity base relative to total assets. Overall, the balance sheet portrays financial stability with manageable debt levels.

Cash Flow

The cash flow statement reveals some challenges, with a significant decline in free cash flow growth rate by 56.74% in the TTM period. The operating cash flow to net income ratio is 0.22, indicating that operating cash flow is not significantly higher than net income, which could be a concern for liquidity. The free cash flow to net income ratio is 0.47, suggesting that not all net income is translating into free cash flow. The company needs to improve its cash flow generation to support future growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	363.33M	394.19M	347.18M	295.17M	290.77M	262.88M
Gross Profit	123.00M	136.85M	119.87M	93.06M	88.38M	75.64M
EBITDA	29.56M	45.34M	30.25M	-1.19M	13.08M	3.50M
Net Income	1.39M	24.06M	6.22M	-19.69M	-14.83M	-17.09M
Balance Sheet
Total Assets	326.92M	345.00M	298.52M	289.32M	292.56M	272.42M
Cash, Cash Equivalents and Short-Term Investments	42.99M	35.31M	28.24M	22.95M	17.08M	27.10M
Total Debt	47.61M	41.11M	50.20M	54.43M	36.37M	13.00M
Total Liabilities	154.81M	178.67M	164.51M	169.53M	155.41M	126.29M
Stockholders Equity	172.11M	166.32M	134.02M	119.78M	137.15M	146.13M
Cash Flow
Free Cash Flow	5.43M	9.73M	17.99M	-17.32M	-24.61M	11.17M
Operating Cash Flow	22.53M	26.20M	30.89M	-4.89M	-15.02M	17.25M
Investing Cash Flow	-25.02M	-16.46M	-20.87M	-12.42M	-9.39M	-6.49M
Financing Cash Flow	11.84M	-1.52M	-4.86M	23.11M	14.53M	-7.38M

Ceragon Networks Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.39
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 2.39 is above the 20-day moving average (MA) of 2.28, above the 50-day MA of 2.13, and above the 200-day MA of 2.25, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 62.16 is Neutral, neither overbought nor oversold. The STOCH value of 64.24 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	66 Neutral	$279.99M	21.71	5.24%	―	10.89%	―
AUDC	62 Neutral	$229.41M	18.02	7.67%	4.28%	0.15%	17.21%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
LTRX	61 Neutral	$261.34M	-25.73	-13.39%	―	-26.85%	-93.91%
FIEE	57 Neutral	$29.84M	-22.75	-66.84%	―	-5.65%	88.68%
CRNT	49 Neutral	$204.33M	157.24	0.84%	―	-3.78%	-92.62%
INSG	47 Neutral	$166.92M	-43.91	―	―	-17.45%	76.52%

Ceragon Networks Corporate Events

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.

Ceragon Networks Reports Solid Q3 2025 Financial Results Amid Market Growth

On November 11, 2025, Ceragon Networks reported its financial results for the third quarter ending September 30, 2025, showing solid revenue and cash flow despite a decline in year-over-year revenue. The company achieved $85.5 million in revenue and a non-GAAP net income of $1.7 million, with significant contributions from North America and renewed activity in India. Ceragon’s CEO highlighted the company’s improved market visibility and potential growth opportunities driven by trends in network utilization and AI evolution, positioning Ceragon to benefit from increased demand for wireless transport solutions.

The most recent analyst rating on (CRNT) stock is a Buy with a $3.00 price target. To see the full list of analyst forecasts on Ceragon Networks stock, see the CRNT Stock Forecast page.

Ceragon Networks Secures $2.7M Managed Services Contract in Colombia

On November 10, 2025, Ceragon Networks announced a significant two-year managed services contract worth $2.7 million with a major mobile operator in Colombia. This contract involves providing a comprehensive suite of managed services, including remote technical support and on-site assistance, leveraging Ceragon’s Network Digital Twin for predictive maintenance. The agreement enhances Ceragon’s position in Latin America, showcasing its capability to manage complex, multi-vendor networks and reinforcing its role as a key partner for mobile operators. This partnership is expected to optimize operational expenditures for the mobile operator, improve network resilience, and support the growing demand for expert managed services in the region.

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.