Ceragon Networks Ltd. (NASDAQ: CRNT) reported revenues of $93.9 million for the second quarter ended June 30, 2026, up 14.2% from $82.3 million a year earlier, and cut the margin half of its full year outlook on the same day. The results were furnished to the U.S. Securities and Exchange Commission on August 11, 2026 in a report of foreign private issuer.
Growth came with a lower gross margin. Gross profit was $29.7 million, a gross margin of 31.7%, against 34.6% in the second quarter of 2025. GAAP operating income fell to $0.2 million from $2.2 million. The GAAP net loss was $2.1 million, or ($0.02) per diluted share, against a loss of ($1.3) million, or ($0.01), a year earlier. On a non-GAAP basis gross margin was 32.2%, operating profit $4.0 million and net income $1.7 million, or $0.02 per diluted share. Cash and cash equivalents were $34.8 million on June 30, 2026, against $38.4 million on December 31, 2025.
The income statement, presented in U.S. dollars in thousands, shows six month revenues of 178,917 against 170,914, gross profit of 59,803 against 57,539, and total operating expenses of 57,481 against 56,412. Within those expenses, research and development, net was 8,405 in the quarter against 7,332, sales and marketing 12,909 against 11,722, and general and administrative 6,823 against 6,940. Restructuring and related charges of 1,120 were booked in the quarter, against none a year earlier. Total assets stood at 313,776 against 317,042 at the end of 2025, with trade receivables of 101,283 and inventories of 59,459.
The India concentration
India supplied 48% of quarterly revenue, ahead of North America at 22%, EMEA at 13%, Latin America at 9% and APAC at 8%. Chief Executive Doron Arazi said demand remains healthy across multiple end markets and that “Customer demand remains healthy, and our competitive position continues to improve, despite near-term industry-wide cost and supply chain pressures”. He pointed to interest in E-band products and to a field trial of the company’s 5G FR2 millimetre wave product with a new Tier 1 North American carrier. In North America the company reported record quarterly bookings in private networks. Ceragon describes itself as deployed by more than 600 service providers and more than 1,600 private network owners in more than 130 countries.
The Indian bookings have been disclosed twice this year in their own right. On May 5, 2026 Ceragon said it had booked approximately $86 million of orders year-to-date from operators in India, mainly from two leading operators, with a record number of links from the IP-50EXA platform supporting fixed wireless access expansion. It said approximately $24 million of those bookings were recognised as revenue in the first quarter of 2026, with most of the remainder expected to be recognised by the end of 2026. On July 28, 2026 the running total was updated to approximately $120 million, still from two of the country’s leading mobile operators, covering microwave and millimetre wave transport including the IP-50EXA and IP-50CX platforms.
The outlook that moved
Management updated its 2026 guidance alongside the results. Revenue is now expected at $355 million to $385 million. Non-GAAP gross margin is expected between 33.5% and 34.5%, against 35.5% previously at the midpoint of the revenue guidance range. Non-GAAP operating margin is expected between 5% and 6%, against a previous range of 6.5% to 7.5%.
The revenue frame is a recovery from a weak prior year. Ceragon’s annual report on Form 20-F records revenues of $338.7 million in 2025 against $394.2 million in 2024, a decrease of 14.1%. India fell to $116.7 million from $167.6 million over that period while North America rose to $112.8 million from $89.9 million. Gross profit for 2025 was $114.6 million, or 33.8% of revenues, against $136.9 million and 34.7% in 2024.
Analysis: the mix that lifts revenue is the mix that costs margin
The company’s own annual report supplies the explanation the quarterly release leaves implicit. In the 20-F Ceragon states that for 2025 and 2024, 34.4% and 42.5% respectively of revenues were earned in India, and that sales of its products in that market “are usually at lower gross margins in comparison to other regions”. It also attributed part of the improvement in 2025 gross profit percentage to a better regional mixture, specifically an increase in revenues from North America and a reduction in revenues from India.
Read against that, the second quarter is the same relationship running the other way. India moved from roughly a third of full year 2025 revenue to 48% of the quarter, revenue grew 14.2%, and reported gross margin fell 2.9 percentage points year on year. The guidance change is consistent: a lower margin band paired with an unchanged emphasis on Indian demand. The company also names cost and supply chain pressures, and the two explanations are not exclusive, but only one of them is documented in the filings with a stated regional pattern.
The gap between GAAP and non-GAAP results is worth separating from that. Non-GAAP gross margin of 32.2% sits half a point above the GAAP figure, and the whole of the difference between a GAAP operating income of $0.2 million and a non-GAAP operating profit of $4.0 million comes from items the company excludes, among them the 1,120 of restructuring and related charges and 233 of acquisition and integration charges booked in the quarter. Those charges are real cash and organisational events, and restructuring has now appeared in three of the four half year columns the release presents.
There is also a timing question the bookings releases raise and do not settle. The May disclosure said approximately $24 million of the $86 million India book had been recognised in the first quarter, with most of the balance expected by the end of 2026. The July release lifted the total to approximately $120 million. Neither release states a delivery schedule, so a reader cannot tell from the public record how much of the July figure is scheduled inside the guidance period and how much sits beyond it. Bookings are also not revenue: they are orders received, and the company has not published a backlog figure or a book-to-bill ratio.
What a careful reader would look at next is the geography table and the margin line together rather than either alone. If the third quarter shows India holding near 48% and non-GAAP gross margin printing at the bottom of the 33.5% to 34.5% band, the regional mix explanation in the 20-F is doing the work. If India recedes toward its 2025 share and margin stays compressed, the cost and supply chain explanation carries more weight. Cash is the other line to watch: cash and cash equivalents fell by roughly the amount of a quarter’s non-GAAP earnings over the half while trade receivables of 101,283 and inventories of 59,459 continued to absorb working capital, and the company has not published an operating cash flow commentary alongside the quarterly release.
