Revenue has contracted significantly from $84.5M in 2022Q4 to $43.7M in 2024Q3, while operating margins remain deeply negative at -18.4% as of the most recent quarter.
| Sales/Revenue | 172.22M | 220.19M | 296.9M | 335.85M | 278.46M | 267.03M | 241.76M | 216.67M | 181.44M |
| Revenue Growth % | -34.89% | -25.84% | -11.6% | 20.61% | 4.28% | 10.45% | 11.58% | 19.41% | - |
| Cost of Goods Sold | 142.71M | 151.36M | 151.76M | 175.06M | 139.05M | 135.8M | 126.27M | 105.96M | 91.72M |
| COGS % of Revenue | - | 68.74% | 51.11% | 52.12% | 49.94% | 50.86% | 52.23% | 48.9% | 50.55% |
| Gross Profit | 29.51M | 68.83M | 145.14M | 160.8M | 139.41M | 131.23M | 115.5M | 110.71M | 89.73M |
| Gross Margin % | 17.14% | 31.26% | 48.89% | 47.88% | 50.06% | 49.14% | 47.77% | 51.1% | 49.45% |
| Gross Profit Growth % | - | -52.58% | -9.74% | 15.34% | 6.23% | 13.62% | 4.32% | 23.38% | - |
| Operating Expenses | 112.27M | 129.69M | 125.26M | 124.38M | 115.46M | 129.93M | 109.14M | 95.84M | 77.54M |
| OpEx % of Revenue | - | 58.9% | 42.19% | 37.03% | 41.46% | 48.66% | 45.15% | 44.23% | 42.73% |
| Selling, General & Admin | 63.41M | 70M | 69.43M | 66.88M | 62.45M | 76.38M | 61.46M | 54.79M | 42.84M |
| SG&A % of Revenue | - | 31.79% | 23.39% | 19.91% | 22.43% | 28.6% | 25.42% | 25.29% | 23.61% |
| Research & Development | 42.28M | 53.48M | 49.87M | 51.32M | 46.37M | 47.69M | 38.92M | 32.23M | 26.27M |
| R&D % of Revenue | - | 24.29% | 16.8% | 15.28% | 16.65% | 17.86% | 16.1% | 14.87% | 14.48% |
| Other Operating Expenses | 4M | 6.21M | 5.96M | 6.17M | 6.64M | 5.86M | 8.77M | 8.82M | 8.43M |
| Operating Income | -82.75M | -60.85M | 19.88M | 36.42M | 23.95M | 755K | 6.35M | 14.87M | 12.19M |
| Operating Margin % | -48.05% | -27.64% | 6.7% | 10.84% | 8.6% | 0.28% | 2.63% | 6.86% | 6.72% |
| Operating Income Growth % | - | -406.11% | -45.41% | 52.08% | 3071.92% | -88.11% | -57.3% | 22.01% | - |
| EBITDA | -73.51M | -51.83M | 27.48M | 43.4M | 31.22M | 7.12M | 15.37M | 23.8M | 20.62M |
| EBITDA Margin % | -42.69% | -23.54% | 9.25% | 12.92% | 11.21% | 2.67% | 6.36% | 10.98% | 11.37% |
| EBITDA Growth % | -6062.11% | -288.63% | -36.69% | 39.02% | 338.3% | -53.66% | -35.42% | 15.39% | - |
| D&A (Non-Cash Add-back) | 9.24M | 9.03M | 7.6M | 6.98M | 7.27M | 6.37M | 9.02M | 8.92M | 8.43M |
| EBIT | -82.81M | -61.13M | 19.88M | 35.88M | 23.46M | 755K | 6.35M | 14.4M | 12.19M |
| Net Interest Income | -4.31M | -2.52M | -1.98M | -4.27M | -5.33M | -8.08M | -8.11M | -5.02M | -7.57M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 4.31M | 2.52M | 1.98M | 4.27M | 5.33M | 8.08M | 8.11M | 5.02M | 7.57M |
| Other Income/Expense | -4.37M | -2.79M | -1.86M | -4.51M | -5.82M | -8.62M | -8.66M | -5.49M | -7.73M |
| Pretax Income | -87.13M | -63.65M | 18.02M | 31.91M | 18.13M | -7.32M | -2.31M | 9.38M | 4.46M |
| Pretax Margin % | -50.59% | -28.9% | 6.07% | 9.5% | 6.51% | -2.74% | -0.96% | 4.33% | 2.46% |
| Income Tax | 10.99M | 13.77M | -2.18M | -5.51M | -444K | 10.28M | -799K | -418K | 1.55M |
| Effective Tax Rate % | -12.62% | -21.64% | -12.12% | -17.29% | -2.45% | -140.42% | 34.56% | -4.46% | 34.69% |
| Net Income | -98.12M | -77.42M | 20.2M | 37.42M | 18.57M | -17.6M | -1.51M | 9.8M | 2.27M |
| Net Margin % | -56.98% | -35.16% | 6.8% | 11.14% | 6.67% | -6.59% | -0.63% | 4.52% | 1.25% |
| Net Income Growth % | -574.13% | -483.27% | -46.02% | 101.46% | 205.53% | -1063.32% | -115.44% | 330.73% | - |
| Net Income (Continuing) | -98.12M | -77.42M | 20.2M | 37.42M | 18.57M | -17.6M | -1.51M | 9.8M | 2.91M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8.62M |
| EPS (Diluted) | -3.48 | -2.81 | 0.72 | 1.31 | 0.70 | -0.69 | -0.08 | 0.49 | 0.11 |
| EPS Growth % | -546.17% | -490.28% | -45.04% | 87.14% | 201.45% | -803.14% | -115.59% | 345.45% | - |
| EPS (Basic) | - | -2.81 | 0.75 | 1.42 | 0.72 | -0.69 | -0.08 | 0.49 | 0.11 |
| Diluted Shares Outstanding | 28.22M | 27.52M | 28.03M | 28.63M | 26.4M | 25.67M | 19.81M | 19.81M | 19.81M |
| Basic Shares Outstanding | 27.9M | 27.52M | 26.92M | 26.42M | 25.71M | 25.67M | 19.81M | 19.81M | 19.81M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - |
Liquidity and inventory overhang
According to recent financial disclosures, Cambium Networks experienced a severe revenue decline, with quarterly figures dropping from a peak of $84.5M in 2022Q4 to $43.7M in 2024Q3, signaling a persistent inability to sustain growth amidst shifting demand cycles for its core wireless infrastructure products.
The consistent year-over-year revenue contraction suggests that the company is struggling to find a floor in its primary PMP and PTP segments. This trend implies that the reliance on U.S. rural broadband subsidy cycles may be creating a volatile and unreliable revenue base for the firm.
As reported in quarterly filings, gross margins have fluctuated significantly, collapsing to a low of -27.4% in 2023Q4 before recovering to 39.9% in 2024Q3, which highlights the company's vulnerability to inventory write-downs and the competitive pricing environment within the enterprise networking hardware sector.
The extreme variance in gross margins suggests that Cambium lacks the pricing power necessary to offset fluctuations in semiconductor costs and channel inventory levels. Investors should monitor whether the recent margin recovery is sustainable or merely a result of aggressive cost-cutting and inventory clearing activities.
Based on the company's income statements, operating expenses have consistently outpaced gross profit, resulting in persistent operating losses that reached a peak deficit of $41.6M in 2023Q4, demonstrating a failure to scale the business model effectively during periods of declining top-line revenue.
The inability to reduce R&D and SG&A costs in proportion to the revenue decline suggests a rigid cost structure that may be unsustainable. This misalignment appears to be a primary driver of the company's current negative profitability profile and warrants further investigation into management's restructuring efforts.
Data from recent balance sheet snapshots indicates that cash reserves have dwindled to $18.7M, a figure that appears insufficient given the ongoing operating losses, suggesting that the company may face significant liquidity risks if it cannot achieve a rapid turnaround in its core business segments.
Short-sellers would likely focus on the potential for dilutive financing or a liquidity crisis if the current cash burn rate persists. The combination of shrinking revenue and limited cash runway suggests that the company's operational flexibility is increasingly constrained, leaving little room for error in its strategic execution.
Quick answers to the most common questions about buying CMBM stock.
For fiscal year 2023, Cambium Networks Corporation (CMBM) reported total revenue of $220.2M. This represents a 21.4% increase compared to $181.4M in 2016.
Cambium Networks Corporation (CMBM) reported a net loss of $77.4M for the fiscal year ending 2023.
Cambium Networks Corporation (CMBM) reported an operating income of $-60.9M, resulting in an operating profit margin of -27.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Cambium Networks Corporation (CMBM) generated $68.8M in gross profit for the year, representing a gross profit margin of 31.3%. This demonstrates the company's core pricing power and production efficiency.