Download PDF

1. Company Snapshot

1.a. 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.

Show Full description

1.b. Last Insights on CRNT

Ceragon Networks' recent performance was negatively driven by its Q4 earnings miss, with quarterly earnings of $0.09 per share, lagging behind estimates of $0.10 per share. Softness in the CSP market, slowdown in public network domains outside of India, and weak macro environment are concerns. Despite growth initiatives in mmW products, Private Networks, and Managed Services, these headwinds may continue to weigh on the company's performance.

1.c. Company Highlights

2. Ceragon Networks Ltd. Delivers Solid Q3 2025 Despite Revenue Decline

Ceragon Networks Ltd. reported revenue of $85.5 million for the third quarter of 2025, above expectations, with a non-GAAP gross margin of 35%. Non-GAAP EPS was $0.02, negatively impacted by a $0.02 foreign exchange fluctuation. Excluding this effect, EPS would have been approximately $0.04, which is in line with estimates. The company's actual EPS of $0.02 fell short of the estimated $0.04. The company generated free cash flow of $3.3 million, demonstrating the strength and resilience of its business model.

Publication Date: Nov -12

📋 Highlights
  • Revenue & Margin Performance:: Q3 revenue reached $85.5 million (down 16.7% YoY from $102.7M) but exceeded expectations, with non-GAAP gross margin at 35% (up slightly YoY).
  • Free Cash Flow Resilience:: Generated $3.3 million in free cash flow, reflecting a robust business model despite revenue decline and inventory reductions to $58.4 million.
  • Strategic Technology Momentum:: E-band and 60 GHz solutions drive demand, with an initial order covering dozens of sites and potential for expansion to hundreds of additional locations.
  • Outlook & Guidance:: Maintained $340 million full-year 2025 revenue guidance, with 2026 optimism driven by AI-driven capacity needs, India/North America growth, and a $111.9 million trade receivables balance.
  • Cost & Operational Efficiency:: Component costs rose slightly, but the company secured $15.8M non-GAAP operating income (down from $15.8M in Q3 2024) and improved liquidity ($111.9M trade receivables vs. $149.6M YoY).

Financial Performance

The company's revenue for the third quarter was down 16.7% from $102.7 million in 2024. The non-GAAP gross margin was 35%, up slightly from the prior year period. Operating income on a non-GAAP basis for the third quarter was $5.3 million, versus operating income of $15.8 million in Q3 2024. As CFO Ronen Stein noted, the company's financial results reflect the resilience of its operations and the strengthening demand across key markets.

Business Outlook

Ceragon Networks Ltd.'s capabilities, particularly its E-band and innovative point-to-multipoint offerings, provide tangible solutions to address key challenges faced by customers, including network capacity and network resiliency. The company's addressable market continues to grow driven by these two challenges, amplified by the growth of AI and increasingly data-intensive applications. The company is well-positioned for continued success, with a strong balance sheet and the ability to fund strategic acquisitions.

Valuation

With a P/E Ratio of 15.42 and an EV/EBITDA of 4.98, the company's valuation appears reasonable. The company's Free Cash Flow Yield of 6.52% is also attractive. Analysts estimate next year's revenue growth at 7.2%, which suggests that the company is poised for continued growth. The current valuation metrics indicate that the market has already priced in some growth, but the company's strong fundamentals and growth prospects make it an attractive investment opportunity.

Growth Prospects

The company is seeing opportunities in private networks and enterprise business, driven by the growth of AI and data-intensive applications. The company's 60 GHz technology provides fiber-like capacity over short distances with fast and economical deployment, making it an attractive solution for private networks. With a strong funnel of opportunities across regions and the potential for growth in its key use cases, Ceragon Networks Ltd. is well-positioned for continued success.

3. NewsRoom

Card image cap

Ceragon Networks Ltd. (NASDAQ:CRNT) Receives Consensus Recommendation of “Moderate Buy” from Analysts

Nov -18

Source: defenseworld.net

Card image cap

Ceragon: Indian Concerns Abate, But Revenue Growth Pressures Are Still Expected To Persist

Nov -12

Source: seekingalpha.com

Card image cap

Ceragon Networks Ltd. (CRNT) Q3 2025 Earnings Call Transcript

Nov -11

Source: seekingalpha.com

Card image cap

Ceragon Networks (CRNT) Q3 Earnings Lag Estimates

Nov -11

Source: zacks.com

Card image cap

Ceragon Reports 2025 Third Quarter Financial Results

Nov -11

Source: prnewswire.com

Card image cap

Ceragon Wins $2.7M Managed Services Contract with Colombian Mobile Operator, Leveraging Network Digital Twin

Nov -10

Source: prnewswire.com

Card image cap

Ceragon to Announce Third Quarter 2025 Financial Results on November 11, 2025

Oct -30

Source: prnewswire.com

Card image cap

Ceragon to Participate in Upcoming Investor Conferences

Oct -27

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.00%)

6. Segments

Wireless Backhaul and Fronthaul Solutions

Expected Growth: 8%

Increasing demand for high-speed mobile broadband, 5G network deployments, and growing need for rural broadband connectivity drive growth in Wireless Backhaul and Fronthaul Solutions. Ceragon's solutions enable operators to cost-effectively increase capacity, reduce latency, and improve network reliability, positioning the company for continued growth.

7. Detailed Products

IP-50C

A compact, high-power, all-outdoor wireless backhaul solution for 4G and 5G networks

IP-20C

A compact, all-outdoor wireless backhaul solution for small-cell and enterprise access applications

FibeAir IP-20A

A high-capacity, all-indoor wireless backhaul solution for 4G and 5G networks

FibeAir IP-10

A compact, all-indoor wireless backhaul solution for small-cell and enterprise access applications

Network Management System (NMS)

A comprehensive network management system for wireless backhaul networks

Ceragon's Network Optimization Services

A suite of services to optimize wireless backhaul network performance and efficiency

8. Ceragon Networks Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Ceragon Networks Ltd. operates in the wireless backhaul market, which is characterized by a moderate threat of substitutes. While there are alternative technologies available, such as fiber optic cables, they are not yet widely adopted and are often more expensive than wireless solutions.

Bargaining Power Of Customers

Ceragon Networks Ltd.'s customers are primarily telecom operators, who have limited bargaining power due to the specialized nature of the products and services offered by the company.

Bargaining Power Of Suppliers

Ceragon Networks Ltd. relies on a limited number of suppliers for its components, which gives them some bargaining power. However, the company's strong relationships with its suppliers and its ability to negotiate prices mitigate this risk.

Threat Of New Entrants

The wireless backhaul market has high barriers to entry, including significant R&D investments and regulatory hurdles, which makes it difficult for new entrants to join the market.

Intensity Of Rivalry

The wireless backhaul market is highly competitive, with several established players competing for market share. Ceragon Networks Ltd. faces intense competition from companies such as Ericsson, Nokia, and Huawei.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 27.25%
Debt Cost 11.51%
Equity Weight 72.75%
Equity Cost 11.51%
WACC 11.51%
Leverage 37.46%

11. Quality Control: Ceragon Networks Ltd. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
AudioCodes

A-Score: 5.1/10

Value: 5.8

Growth: 5.7

Quality: 5.9

Yield: 6.9

Momentum: 5.0

Volatility: 1.7

1-Year Total Return ->

View Full Report
Stock-Card
Invisio

A-Score: 4.6/10

Value: 0.0

Growth: 8.3

Quality: 7.9

Yield: 0.6

Momentum: 8.0

Volatility: 3.0

1-Year Total Return ->

View Full Report
Stock-Card
Satixfy

A-Score: 4.4/10

Value: 8.0

Growth: 2.7

Quality: 5.6

Yield: 0.0

Momentum: 10.0

Volatility: 0.3

1-Year Total Return ->

View Full Report
Stock-Card
HMS Networks

A-Score: 3.8/10

Value: 0.2

Growth: 7.1

Quality: 6.3

Yield: 0.6

Momentum: 6.0

Volatility: 2.7

1-Year Total Return ->

View Full Report
Stock-Card
Ceragon Networks

A-Score: 3.6/10

Value: 6.3

Growth: 6.9

Quality: 4.9

Yield: 0.0

Momentum: 3.0

Volatility: 0.7

1-Year Total Return ->

View Full Report
Stock-Card
Napatech

A-Score: 2.3/10

Value: 6.0

Growth: 0.0

Quality: 4.4

Yield: 0.0

Momentum: 2.5

Volatility: 0.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.99$

Current Price

1.99$

Potential

-0.00%

Expected Cash-Flows