Exhibit A

 

 

 Ceragon Reports 2026 Third Quarter Financial Results

 

Revenue increase of 11.7% YOY driven by increased revenue from India;

Improved revenue mix drove 430 basis point improvement in gross margin sequentially;

Company generated $14.1 million in cash from operations in third quarter

 

Rosh Ha'ain, Israel, November 5, 2026 -- Ceragon (NASDAQ: CRNT), a leading solutions provider of end-to-end wireless connectivity, today reported its financial results for the third quarter, the period ended September 30, 2026.

 

Q3 2026 Financial Highlights:

 

•Revenue of $95.5 million

 

•GAAP Operating income of $4.5 million, non-GAAP operating income of $8.1 million

 

•GAAP Net income of $2.4 million, non-GAAP net income of $6.2 million

 

•GAAP EPS of $0.03 per diluted share, non-GAAP EPS of $0.07 per diluted share

 

Q3 2026 Business Highlights:

 

•North America strength: Strong sequential rebound in revenue driven by Tier 1 carrier demand and higher software mix

 

•India demand remains healthy: Solid underlying demand from major operators, driven by ongoing network modernization investments

 

•EMEA growth opportunities: Growing E-band interest, new operator engagements, and opportunities to gain market share amid changes in the competitive landscape

 

Ceragon’s CEO, Doron Arazi, commented: “We delivered a strong third quarter, highlighted by approximately 12% year-over-year revenue growth, improved profitability, and $14.1 million in positive cash flow from operations. North America benefited from renewed Tier 1 carrier activity and a favorable mix, while demand in India remained healthy despite continued significant supply constraints. These results reinforce our confidence in Ceragon's competitive position and our ability to capitalize on the growing need for high-capacity wireless connectivity.”

 

“Looking ahead, we are increasingly encouraged by several developments that could create meaningful opportunities in 2027 and beyond,” concluded Mr. Arazi. “In North America, we have opportunities to expand our customer base and benefit from evolving network architectures and competitive dynamics. In EMEA, growing demand for E-band solutions and changes in the competitive landscape are serving as catalysts with customers. We are winning private network business in new use cases where Ceragon’s differentiation has been a major factor. We believe these early wins can be replicated with other customers and applications, which could significantly expand our addressable market and drive growth in 2027 and beyond.”

 

Primary Third Quarter 2026 Financial Results:

 

Revenues were $95.5 million, up 11.7% from $85.5 million in Q3 2025.

 

Gross profit was $34.3 million, or a gross margin of 36.0%, compared to a gross margin of 34.3% in Q3 2025.

 

GAAP Operating income was $4.5 million compared with $3.8 million for Q3 2025.

 

GAAP Net income was $2.4 million, or $0.03 per diluted share, compared with $0.0 million, or $0.00 per diluted share, for Q3 2025.

 

Non-GAAP results were as follows: Gross margin was 36.4%, operating profit was $8.1 million, and net income was $6.2 million, or $0.07 per diluted share.

 

For a reconciliation of GAAP to non-GAAP results, see the attached tables.

 

 

Balance Sheet

 

Cash and cash equivalents were $39.1 million on September 30, 2026, compared to $38.4 million on December 31, 2025.

 

Revenue Breakout by Geography:

 

  Q3 2026
North America 40%
India 35%
EMEA 12%
Latin America 7%
APAC 6%

 

Outlook

 

Management updated its 2026 outlook:

 

•Revenue of $365 million to $375 million

 

•Non-GAAP gross margin is expected to be between 33.5% and 34.5% at the midpoint of the revenue guidance range

 

•Non-GAAP operating margin is expected to be between 5% and 6% at the midpoint of the revenue guidance range

 

Conference Call

 

The Company will hold a Zoom webcast today at 8:30 a.m. ET to review the results, followed by a Q&A session.

 

Investors are invited to register by clicking here. All relevant access details will be provided upon registration.

 

For investors unable to join the live call, a replay will be available on the Company’s website at www.ceragon.com

 

About Ceragon

 

Ceragon (NASDAQ: CRNT) is the global innovator and leading solutions provider of end-to-end wireless connectivity, specializing in transport, access, and AI-powered managed & professional services. Through our commitment to excellence, we empower customers to elevate operational efficiency and enrich the quality of experience for their end users.

 

Our customers include service providers, utilities, public safety organizations, government agencies, energy companies, and more who rely on our wireless expertise and cutting-edge solutions for 5G & 4G broadband wireless connectivity, mission-critical services, and an array of applications that harness our ultra-high reliability and speed. Ceragon solutions are deployed by more than 600 service providers, as well as more than 1,600 private network owners, in more than 130 countries. Through our innovative, end-to-end solutions, covering hardware, software, and managed & professional services, we enable our customers to embrace the future of wireless technology with confidence, shaping the next generation of connectivity and service delivery. Ceragon delivers extremely reliable, fast-to-deploy, high-capacity wireless solutions for a wide range of communication network use cases, optimized to lower TCO through minimal use of spectrum, power, real estate, and labor resources – driving simple, quick, and cost-effective network modernization and positioning Ceragon as a leading solutions provider for the “connectivity everywhere” era.

 

For more information please visit: www.ceragon.com

 

Ceragon Networks® and FibeAir® are registered trademarks of Ceragon Networks Ltd. in the United States and other countries. CERAGON ® is a trademark of Ceragon, registered in various countries. Other names mentioned are owned by their respective holders.

 

 

Safe Harbor

 

This press release contains statements that constitute “forward-looking statements” within the meaning of the Securities Act of 1933, as amended and the Securities Exchange Act of 1934, as amended, and the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on the current beliefs, expectations and assumptions of Ceragon’s management about Ceragon’s business, financial condition, results of operations, micro and macro market trends and other issues addressed or reflected therein. Examples of forward-looking statements include, but are not limited to, statements regarding: projections of demand, revenues, net income, gross margin, capital expenditures and liquidity, competitive pressures, order timing, supply chain and shipping, components availability; growth prospects, product development, financial resources, cost savings and other financial and market matters. You may identify these and other forward-looking statements by the use of words such as "may", "plans", "anticipates", "believes", "estimates", "targets", "expects", "intends", "potential" or the negative of such terms, or other comparable terminology, although not all forward-looking statements contain these identifying words.

 

Although we believe that the projections reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations there from will not be material. Such forward-looking statements involve known and unknown risks and uncertainties that may cause Ceragon’s future results or performance to differ materially from those anticipated, expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to: Company's forward-looking forecasts, with respect to which there is no assurance that such forecasts will materialize; Company's ability to future plan, business, marketing and product strategies on the forecasted evolution of the market developments, such as market and territory trends, future use cases, business concepts, technologies, future demand, and necessary inventory levels; the effects of fluctuations in currency exchange rates between the currencies in which we operate; risks relating to the conversion of the orders from customers into revenues; the effects of global economic trends, including recession, rising inflation, rising interest rates, commodity price increases and fluctuations, commodity shortages and exposure to economic slowdown; risks relating to supply chain constraints and disruptions, including shortages, extended lead times, and price increases of components and raw materials; risks related to conditions in Israel and the continuation of hostilities in the Middle East; risks associated with delays in the transition to 5G technologies and in the 5G rollout; risks relating to the concentration of our business on a limited number of large mobile operators and the fact that the significant weight of their ordering, compared to the overall ordering by other customers, coupled with inconsistent ordering patterns, could negatively affect us; risks resulting from the volatility in our revenues, margins and working capital needs; disagreements with tax authorities regarding tax positions that we have taken could result in increased tax liabilities; the high volatility in the supply needs of our customers, which from time to time lead to delivery issues and may lead to us being unable to timely fulfil our customer commitments; and such other risks, uncertainties and other factors that could affect our results of operations, as further detailed in Ceragon’s most recent Annual Report on Form 20-F, as published on April 15, 2026, as well as other documents that may be subsequently filed by Ceragon from time to time with the Securities and Exchange Commission.

 

We caution you not to place undue reliance on forward-looking statements, which speak only as of the date hereof. Ceragon does not assume any obligation to update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release unless required by law.

 

While we believe that we have a reasonable basis for each forward-looking statement contained in this press release, we caution you that these statements are based on a combination of facts and factors currently known by us and our projections on the future, about which we cannot be certain. In addition, any forward-looking statements represent Ceragon’s views only as of the date of this press release and should not be relied upon as representing its views as of any subsequent date. Ceragon does not assume any obligation to update any forward-looking statements unless required by law.

 

The results reported in this press-release are preliminary and unaudited results, and investors should be aware of possible discrepancies between these results and the audited results to be reported, due to various factors.

 

Ceragon’s public filings are available on the Securities and Exchange Commission’s website at www.sec.gov and may also be obtained from Ceragon’s website at www.ceragon.com.

 

Investor Contact:

 

Rob Fink

FNK IR

Tel. +1-646-809-4048

crnt@fnkir.com

 

Joey Delahoussaye

FNK IR

Tel. +1-312-809-1087

crnt@fnkir.com

 

 


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(U.S. dollars in thousands, except share and per share data)

 

  

Three months ended 

September 30,

  

Nine months ended 

September 30, 

 
  

2026

  

2025 

  

2026

  

2025 

 
                 
Revenues   95,524    85,484    274,441    256,398 
Cost of revenues   61,182    56,134    180,296    169,509 
                     
Gross profit   34,342    29,350    94,145    86,889 
                     
Operating expenses:                    
  Research and development, net   7,852    6,955    24,198    22,536 
Sales and Marketing   13,459    12,609    40,358    36,628 
General and administrative   6,410    6,013    18,753    18,389 
Restructuring and related charges   -    -    1,660    3,732 
Acquisition- and integration-related charges   2,143    20    2,376    724 
                     
Total operating expenses   29,864    25,597    87,345    82,009 
                     
Operating income   4,478    3,753    6,800    4,880 
                     
Financial and other expenses, net   1,391    2,976    5,910    4,882 
                     
Income (loss) before taxes   3,087    777    890    (2)
                     
Taxes on income   706    749    1,943    2,217 
                     
Net income (loss)   2,381    28    (1,053)   (2,219)
                     
Basic net income (loss) per share   0.03    0.00    (0.01)   (0.02)
                     
Diluted net income (loss) per share   0.03    0.00    (0.01)   (0.02)
                     

Weighted average number of shares used in computing basic net income (loss) per share

   91,814,545    90,296,561    91,189,884    89,509,052 
                     

Weighted average number of shares used in computing diluted net income (loss) per share

   93,435,521    91,744,069    91,189,884    89,509,052 

 

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands)

 

   September 30,   December 31, 
  

2026

  

2025 

 
ASSETS          
           
CURRENT ASSETS:          
Cash and cash equivalents   39,097    38,368 
Trade receivables, net   100,447    99,673 
Inventories   65,660    61,587 
Other accounts receivable and prepaid expenses   25,933    25,576 
           
Total current assets   231,137    225,204 
           
NON-CURRENT ASSETS:          
Severance pay and pension fund   410    362 
Property and equipment, net   42,273    39,952 
Operating lease right-of-use assets   15,184    16,554 
Intangible assets, net   23,830    23,182 
Goodwill   11,007    11,007 
Other non-current assets   624    781 
           
Total non-current assets   93,328    91,838 
           
Total assets   324,465    317,042 
           
LIABILITIES AND SHAREHOLDERS' EQUITY          
           
CURRENT LIABILITIES:          
Trade payables   83,660    70,784 
Deferred revenues   2,803    2,371 
Short-term loans   7,000    19,000 
Operating lease liabilities   4,207    4,001 
Other accounts payable and accrued expenses   29,663    24,071 
           
Total current liabilities   127,333    120,227 
           
LONG-TERM LIABILITIES:          
Accrued severance pay and pension   2,717    2,537 
Operating lease liabilities   12,007    13,331 
Other long-term payables   7,896    8,195 
           
Total long-term liabilities   22,620    24,063 
           
SHAREHOLDERS' EQUITY:          
Share capital   234    234 
Additional paid-in capital   458,717    454,640 
Treasury shares at cost   (20,091)   (20,091)
Other comprehensive loss   (10,080)   (8,816)
Accumulated deficit   (254,268)   (253,215)
           
Total shareholders' equity   174,512    172,752 
           
Total liabilities and shareholders' equity   324,465    317,042 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW 

(U.S. dollars, in thousands)

 

  

Three months ended 

September 30,

  

Nine months ended 

September 30, 

 
  

2026

  

2025 

  

2026

  

2025 

 
                 
Cash flow from operating activities:                    
Net income (loss)   2,381    28    (1,053)   (2,219)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:                    
Depreciation and amortization   4,847    3,436    11,752    10,400 
Loss from sale of property and equipment, net   13    15    135    25 
Stock-based compensation expense   898    862    3,545    3,061 
Decrease in accrued severance pay and pensions, net   180    (723)   132    (646)
Decrease (increase) in trade receivables, net   834    12,130    (703)   40,292 
Increase in other assets (including other accounts receivable, prepaid expenses, other non-current assets, and the effect of exchange rate changes on cash and cash equivalents)   (2,430)   (1,904)   (1,675)   (4,223)
Decrease (increase) in inventory   (6,380)   1,276    (4,819)   1,403 
Decrease in operating lease right-of-use assets   965    962    3,100    3,016 
Increase (decrease) in trade payables   9,500    (5,233)   12,581    (23,278)
Increase (decrease) in other accounts payable and accrued expenses (including other long-term payables)   2,490    (2,358)   5,110    (4,889)
Decrease in operating lease liability   (708)   (810)   (2,848)   (1,725)
Increase (decrease) in deferred revenues   1,503    (520)   432    (684)
Net cash provided by operating activities   14,093    7,161    25,689    20,533 
                     
Cash flow from investing activities:                    
Purchases of property and equipment, net   (3,761)   (3,150)   (9,358)   (10,576)
Software development costs capitalized   (1,465)   (964)   (4,386)   (2,675)
Payments made in connection with business acquisitions, net of acquired cash   -    -    -    (6,570)
Net cash used in investing activities   (5,226)   (4,114)   (13,744)   (19,821)
                     
Cash flow from financing activities:                    
Proceeds from exercise of stock options   19    4    295    655 
Proceeds from (repayments of) bank credits and loans, net   (5,004)   10,500    (12,000)   5,800 
Net cash provided by (used in) financing activities   (4,985)   10,504    (11,705)   6,455 
                     
Effect of exchange rate changes on cash and cash equivalents   444    220    489    509 
                     
Increase (decrease) in cash and cash equivalents   4,326    13,771    729    7,676 
Cash and cash equivalents at the beginning of the period   34,771    29,216    38,368    35,311 
Cash and cash equivalents at the end of the period   39,097    42,987    39,097    42,987 

 

 

 

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS 

(U.S. dollars in thousands, except share and per share data)

 

  

Three months ended 

September 30,

  

Nine months ended 

September 30, 

 
  

2026

  

2025 

  

2026

  

2025 

 
                 
GAAP cost of revenues   61,182    56,134    180,296    169,509 
Stock-based compensation expenses   (106)   (134)   (345)   (323)
Amortization of acquired intangible assets   (342)   (422)   (1,186)   (1,378)
Non-GAAP cost of revenues   60,734    55,578    178,765    167,808 
                     
GAAP gross profit   34,342    29,350    94,145    86,889 
Stock-based compensation expenses   106    134    345    323 
Amortization of acquired intangible assets   342    422    1,186    1,378 
Non-GAAP gross profit   34,790    29,906    95,676    88,590 
                     
GAAP Research and development expenses   7,852    6,955    24,198    22,536 
Stock-based compensation expenses   (186)   (190)   (594)   (468)
Non-GAAP Research and development expenses   7,666    6,765    23,604    22,068 
                     
GAAP Sales and marketing expenses   13,459    12,609    40,358    36,628 
Stock-based compensation expenses   (320)   (304)   (1,010)   (944)
Amortization of acquired intangible assets   (219)   (275)   (659)   (772)
Non-GAAP Sales and marketing expenses   12,920    12,030    38,689    34,912 
                     
GAAP General and administrative expenses   6,410    6,013    18,753    18,389 
Stock-based compensation expenses   (286)   (234)   (1,596)   (1,326)
Non-GAAP General and administrative expenses   6,124    5,779    17,157    17,063 
                     
GAAP Restructuring and related charges   -    -    1,660    3,732 
Restructuring and related charges   -    -    (1,660)   (3,732)
Non-GAAP Restructuring and related charges   -    -    -    - 
                     
GAAP Acquisition- and integration-related charges   2,143    20    2,376    724 
Acquisition- and integration-related charges   (2,143)   (20)   (2,376)   (724)
Non-GAAP Acquisition- and integration-related charges   -    -    -    - 

 

 

 

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS 

(U.S. dollars in thousands, except share and per share data)

 

  

Three months ended 

September 30, 

  

Nine months ended 

September 30, 

 
  

2026

  

2025

  

2026 

  

2025 

 
                 
GAAP Operating income   4,478    3,753    6,800    4,880 
Stock-based compensation expenses   898    862    3,545    3,061 
Amortization of acquired intangible assets   561    697    1,845    2,150 
Restructuring and other charges   -    -    1,660    3,732 
Acquisition- and integration-related charges   2,143    20    2,376    724 
Non-GAAP Operating income   8,080    5,332    16,226    14,547 
                     
GAAP Financial and other expenses, net   1,391    2,976    5,910    4,882 
Leases – financial expenses   (256)   (152)   (252)   (1,290)
Non-cash revaluation associated with a business combination   23    24    (14)   1,972 
Non-GAAP Financial and other expenses, net   1,158    2,848    5,644    5,564 
                     
GAAP Tax expenses   706    749    1,943    2,217 
Non-GAAP Tax expenses   706    749    1,943    2,217 
                     
GAAP Net income (loss)   2,381    28    (1,053)   (2,219)
Stock-based compensation expenses   898    862    3,545    3,061 
Amortization of acquired intangible assets   561    697    1,845    2,150 
Restructuring and other charges   -    -    1,660    3,732 
Acquisition- and integration-related charges   2,143    20    2,376    724 
Leases – financial expenses   256    152    252    1,290 
Non-cash revaluation associated with a business combination   (23)   (24)   14    (1,972)
Non-GAAP Net income    6,216    1,735    8,639    6,766 
                     
GAAP basic net income (loss) per share   0.03    0.00    (0.01)   (0.02)
                     
GAAP diluted net income (loss) per share   0.03    0.00    (0.01)   (0.02)
                     
Non-GAAP Diluted net income per share   0.07    0.02    0.09    0.07 
                     
Weighted average number of shares used in computing GAAP basic net income (loss) per share   91,814,545    90,296,561    91,189,884    89,509,052 
Weighted average number of shares used in computing GAAP diluted net income (loss) per share   93,435,521    91,744,069    91,189,884    89,509,052 
Weighted average number of shares used in computing non-GAAP diluted net income per share   93,435,521    91,744,069    93,228,976    91,507,031