Revenue contraction has pressured profitability, with operating margins falling to 2.5% in 2026Q1 as the company struggles to scale against a fixed R&D burden of $7.9 million.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 |
|---|
| Sales/Revenue | 335.08M | 338.73M | 394.19M | 347.18M | 295.17M | 290.77M | 262.88M | 285.58M | 343.87M | 332.03M | 293.64M | 349.44M | 371.11M | 361.77M | 446.65M | 445.27M | 249.85M | 184.22M | 217.28M | 161.89M | 108.42M | 73.78M | 54.83M | 34.42M | 18.39M | 24.85M | 29.2M | 4.55M |
| Revenue Growth % | -15.03% | -14.07% | 13.54% | 17.62% | 1.52% | 10.61% | -7.95% | -16.95% | 3.57% | 13.07% | -15.97% | -5.84% | 2.58% | -19% | 0.31% | 78.21% | 35.63% | -15.21% | 34.22% | 49.32% | 46.95% | 34.55% | 59.3% | 87.13% | -25.99% | -14.88% | 541.41% | - |
| Cost of Goods Sold | 219.82M | 224.18M | 257.34M | 227.31M | 202.11M | 202.39M | 187.24M | 188.74M | 227.71M | 224.7M | 194.48M | 246.49M | 283.64M | 249.54M | 308.35M | 323.19M | 160.47M | 123.49M | 144.61M | 103.41M | 80.78M | 52.49M | 32.19M | 20.65M | 12.79M | 45.28M | 6.22M | 3.18M |
| COGS % of Revenue | - | 66.18% | 65.28% | 65.47% | 68.47% | 69.61% | 71.22% | 66.09% | 66.22% | 67.67% | 66.23% | 70.54% | 76.43% | 68.98% | 69.04% | 72.58% | 64.23% | 67.04% | 66.55% | 63.88% | 74.51% | 71.14% | 58.71% | 59.98% | 69.54% | 182.21% | 21.31% | 69.88% |
| Gross Profit | 115.25M | 114.55M | 136.85M | 119.87M | 93.06M | 88.38M | 75.64M | 96.84M | 116.17M | 107.33M | 99.16M | 102.95M | 87.47M | 112.23M | 138.3M | 122.08M | 89.38M | 60.73M | 72.67M | 58.48M | 27.64M | 21.29M | 22.64M | 13.78M | 5.6M | -20.43M | 22.98M | 1.37M |
| Gross Margin % | 34.4% | 33.82% | 34.72% | 34.53% | 31.53% | 30.39% | 28.78% | 33.91% | 33.78% | 32.33% | 33.77% | 29.46% | 23.57% | 31.02% | 30.96% | 27.42% | 35.77% | 32.96% | 33.45% | 36.13% | 25.49% | 28.86% | 41.29% | 40.02% | 30.46% | -82.21% | 78.69% | 30.12% |
| Gross Profit Growth % | - | -16.29% | 14.17% | 28.8% | 5.3% | 16.83% | -21.89% | -16.64% | 8.23% | 8.24% | -3.68% | 17.7% | -22.06% | -18.85% | 13.29% | 36.58% | 47.19% | -16.44% | 24.26% | 111.59% | 29.82% | -5.96% | 64.36% | 145.85% | 127.43% | -188.92% | 1575.78% | - |
| Operating Expenses | 105.26M | 103.5M | 98.12M | 98.66M | 104M | 83.57M | 83.22M | 89.54M | 90.03M | 84.19M | 79.67M | 80.13M | 112.69M | 129.81M | 152.33M | 158.7M | 74.62M | 58.08M | 59.71M | 46.53M | 34.43M | 25.79M | 21.84M | 19.22M | 21.41M | 34.03M | 27.34M | 8.62M |
| OpEx % of Revenue | - | 30.56% | 24.89% | 28.42% | 35.23% | 28.74% | 31.66% | 31.35% | 26.18% | 25.36% | 27.13% | 22.93% | 30.36% | 35.88% | 34.11% | 35.64% | 29.87% | 31.53% | 27.48% | 28.74% | 31.76% | 34.96% | 39.83% | 55.85% | 116.39% | 136.94% | 93.62% | 189.43% |
| Selling, General & Admin | 74.85M | 73.08M | 58.94M | 64.37M | 70.09M | 54.1M | 52.22M | 62.75M | 62.31M | 60.23M | 59.9M | 62.05M | 79.72M | 94.5M | 104.84M | 108.24M | 49.51M | 37.89M | 39.4M | 30.62M | 22.64M | 16.83M | 14.07M | 11.6M | 11.16M | 18.09M | 11.32M | 3.12M |
| SG&A % of Revenue | - | 21.57% | 14.95% | 18.54% | 23.75% | 18.61% | 19.86% | 21.97% | 18.12% | 18.14% | 20.4% | 17.76% | 21.48% | 26.12% | 23.47% | 24.31% | 19.81% | 20.57% | 18.13% | 18.91% | 20.88% | 22.81% | 25.67% | 33.71% | 60.68% | 72.81% | 38.77% | 68.45% |
| Research & Development | 30.12M | 30.43M | 34.95M | 32.27M | 29.69M | 29.47M | 31M | 26.79M | 28.18M | 25.7M | 21.7M | 22.93M | 35M | 42.96M | 47.49M | 50.46M | 25.11M | 20.19M | 20.31M | 15.46M | 11.79M | 8.96M | 7.39M | 6.97M | 7.27M | 10.31M | 7.69M | 3.38M |
| R&D % of Revenue | - | 8.98% | 8.87% | 9.3% | 10.06% | 10.14% | 11.79% | 9.38% | 8.19% | 7.74% | 7.39% | 6.56% | 9.43% | 11.88% | 10.63% | 11.33% | 10.05% | 10.96% | 9.35% | 9.55% | 10.88% | 12.15% | 13.48% | 20.25% | 39.54% | 41.47% | 26.35% | 74.23% |
| Other Operating Expenses | 285K | 0 | 4.24M | 2.02M | 4.22M | 0 | 0 | 0 | -470K | -1.75M | -1.92M | -4.85M | -19.83M | -7.66M | 775K | 0 | 0 | 450K | 0 | 450K | 0 | 0 | 374K | 650K | 2.97M | 5.63M | 8.32M | 2.13M |
| Operating Income | 10M | 11.05M | 38.73M | 21.21M | -10.94M | 4.81M | -7.57M | 7.3M | 26.14M | 23.15M | 19.49M | 21.59M | -32.03M | -26.92M | -18.64M | -49.37M | 13.98M | 2.65M | 12.96M | 11.95M | -6.79M | -4.5M | 799K | -5.45M | -15.89M | -59.61M | -15.35M | -7.25M |
| Operating Margin % | 2.98% | 3.26% | 9.82% | 6.11% | -3.71% | 1.65% | -2.88% | 2.56% | 7.6% | 6.97% | 6.64% | 6.18% | -8.63% | -7.44% | -4.17% | -11.09% | 5.6% | 1.44% | 5.96% | 7.38% | -6.26% | -6.1% | 1.46% | -15.83% | -86.38% | -239.87% | -52.56% | -159.31% |
| Operating Income Growth % | - | -71.47% | 82.59% | 293.93% | -327.57% | 163.47% | -203.7% | -72.07% | 12.95% | 18.74% | -9.72% | 167.4% | -18.99% | -44.4% | 62.24% | -453.03% | 428.13% | -79.57% | 8.41% | 276.03% | -50.91% | -663.2% | 114.66% | 65.7% | 73.35% | -288.45% | -111.61% | - |
| EBITDA | 24.43M | 25.38M | 50.84M | 31.18M | 103K | 17.05M | 5.29M | 16.99M | 33.9M | 32.35M | 29.53M | 33.8M | -18.53M | -11.28M | -3.61M | -34.98M | 18.7M | 5.93M | 15.03M | 13.3M | -5.6M | -3.37M | 2.01M | -2.79M | -11.18M | -51.17M | -4.96M | -5.12M |
| EBITDA Margin % | 7.29% | 7.49% | 12.9% | 8.98% | 0.03% | 5.86% | 2.01% | 5.95% | 9.86% | 9.74% | 10.06% | 9.67% | -4.99% | -3.12% | -0.81% | -7.86% | 7.48% | 3.22% | 6.92% | 8.21% | -5.16% | -4.56% | 3.66% | -8.1% | -60.76% | -205.88% | -17% | -112.57% |
| EBITDA Growth % | -46.81% | -50.08% | 63.07% | 30168.93% | -99.4% | 222.41% | -68.88% | -49.88% | 4.79% | 9.55% | -12.62% | 282.34% | -64.37% | -212.1% | 89.67% | -287.08% | 215.24% | -60.54% | 13.03% | 337.56% | -66.28% | -267.8% | 171.93% | 75.05% | 78.16% | -930.95% | 3.14% | - |
| D&A (Non-Cash Add-back) | 14.43M | 14.33M | 12.11M | 9.97M | 11.04M | 12.25M | 12.86M | 9.69M | 7.76M | 9.21M | 10.04M | 12.2M | 13.5M | 15.64M | 15.03M | 14.39M | 4.71M | 3.28M | 2.07M | 1.34M | 1.19M | 1.13M | 1.21M | 2.66M | 4.71M | 8.45M | 10.38M | 2.13M |
| EBIT | 6.79M | 11.05M | 33.23M | 20.28M | -12.23M | 831K | -9.37M | 4.57M | 26M | 22.09M | 17.57M | 17.97M | -62.29M | -35.68M | -18.34M | -47.95M | 15.73M | 4.86M | 16.75M | 11.95M | -6.79M | -4.5M | 1.61M | -5.45M | -15.8M | -54.46M | -4.36M | -7.25M |
| Net Interest Income | -10.38M | -6.54M | -7.96M | -7.45M | -4.91M | -4.75M | -4.34M | -4.08M | -4.49M | -4.7M | -3.55M | -5.78M | -7.55M | -3.95M | -3.21M | -805K | 1.22M | 1.5M | 2.18M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | -1.98M | 93K | 107K | 160K | 79K | 111K | 111K | 126K | 242K | 101K | 140K | 1.31M | 644K | 2.64M | 2.14M | 2M | 3.79M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 10.38M | 6.54M | 5.97M | 7.54M | 5.02M | 4.91M | 4.42M | 4.2M | 4.6M | 4.83M | 3.79M | 5.88M | 7.69M | 5.26M | 3.85M | 2.02M | 882K | 327K | 1.61M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -9.96M | -10.34M | -11.47M | -8.47M | -6.31M | -8.63M | -6.9M | -7.17M | -6.35M | -5.89M | -6.3M | -14.74M | -37.95M | -14.02M | -3.55M | -2.02M | 1.25M | 1.5M | 2.18M | -189K | 1.33M | 673K | 141K | -2.73M | -83K | -4.75M | 15.35M | 0 |
| Pretax Income | 37K | 708K | 27.25M | 12.74M | -17.24M | -3.82M | -14.47M | 132K | 19.8M | 17.26M | 13.19M | 6.85M | -69.98M | -40.94M | -22.19M | -51.4M | 15.24M | 4.14M | 15.14M | 11.77M | -6.43M | -4.64M | 940K | -8.18M | -15.97M | -64.36M | 0 | 0 |
| Pretax Margin % | 0.01% | 0.21% | 6.91% | 3.67% | -5.84% | -1.31% | -5.51% | 0.05% | 5.76% | 5.2% | 4.49% | 1.96% | -18.86% | -11.32% | -4.97% | -11.54% | 6.1% | 2.25% | 6.97% | 7.27% | -5.93% | -6.29% | 1.71% | -23.76% | -86.83% | -258.98% | - | - |
| Income Tax | 2.49M | 2.8M | 3.19M | 6.52M | 2.45M | 11.01M | 2.62M | 2.48M | -3.25M | 1.7M | 1.76M | 5.84M | 6.5M | 6.54M | 1.2M | 2.26M | 1.18M | 489K | -10.83M | -1.18M | -1.33M | -673K | -815K | 2.27M | -1.45M | 2.38M | 17.44M | 89K |
| Effective Tax Rate % | 6729.73% | 395.2% | 11.71% | 51.19% | -14.19% | -288.27% | -18.09% | 1875.76% | -16.42% | 9.83% | 13.35% | 85.25% | -9.29% | -15.97% | -5.41% | -4.4% | 7.73% | 11.8% | -71.54% | -10.05% | 20.69% | 14.5% | -86.7% | -27.8% | 9.05% | -3.7% | - | - |
| Net Income | -2.45M | -2.09M | 24.06M | 6.22M | -19.69M | -14.83M | -17.09M | -2.34M | 23.05M | 15.56M | 11.43M | 1.01M | -76.48M | -47.48M | -23.39M | -53.65M | 14.06M | 3.65M | 25.98M | 13.14M | -5.46M | -3.83M | 1.61M | -7.72M | -14.36M | -56.84M | -12.88M | -7.34M |
| Net Margin % | -0.73% | -0.62% | 6.1% | 1.79% | -6.67% | -5.1% | -6.5% | -0.82% | 6.7% | 4.69% | 3.89% | 0.29% | -20.61% | -13.12% | -5.24% | -12.05% | 5.63% | 1.98% | 11.96% | 8.11% | -5.04% | -5.19% | 2.94% | -22.43% | -78.07% | -228.73% | -44.1% | -161.27% |
| Net Income Growth % | -110.82% | -108.69% | 286.87% | 131.59% | -32.78% | 13.25% | -629.18% | -110.17% | 48.11% | 36.14% | 1030.46% | 101.32% | -61.08% | -102.98% | 56.4% | -481.55% | 284.73% | -85.93% | 97.75% | 340.59% | -42.67% | -337.11% | 120.9% | 46.23% | 74.74% | -341.46% | -75.4% | - |
| Net Income (Continuing) | -2.45M | -2.09M | 24.06M | 6.22M | -19.69M | -14.83M | -17.09M | -2.34M | 23.05M | 15.56M | 11.43M | 1.01M | -76.48M | -47.48M | -23.39M | -53.65M | 14.06M | 3.65M | 25.98M | 13.14M | -5.46M | -3.83M | 1.61M | -7.72M | -14.36M | -56.84M | -12.88M | -7.34M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.03 | -0.02 | 0.27 | 0.07 | -0.09 | -0.18 | -0.20 | -0.02 | 0.28 | 0.19 | 0.15 | 0.01 | -1.22 | -1.23 | -0.64 | -1.49 | 0.38 | 0.10 | 0.68 | 0.41 | -0.19 | -0.15 | 0.06 | -0.33 | -0.64 | -2.69 | -0.62 | -0.96 |
| EPS Growth % | -110.53% | -108.63% | 270.88% | 182.82% | 51.17% | 10% | -847.87% | -107.54% | 47.37% | 26.67% | 1400% | 100.82% | 0.81% | -92.19% | 57.05% | -492.11% | 280% | -85.29% | 65.85% | 315.79% | -26.67% | -350% | 118.18% | 48.44% | 76.21% | -333.87% | 35.42% | - |
| EPS (Basic) | - | -0.02 | 0.28 | 0.07 | -0.09 | -0.18 | -0.20 | -0.02 | 0.29 | 0.20 | 0.15 | 0.01 | -1.22 | -1.23 | -0.64 | -1.49 | 0.40 | 0.11 | 0.70 | 0.44 | -0.20 | -0.15 | 0.06 | -0.33 | -0.64 | -2.69 | -1.12 | -0.96 |
| Diluted Shares Outstanding | 90.71M | 89.79M | 88.46M | 85.48M | 84.13M | 83.41M | 81.15M | 80.3M | 81.02M | 79.94M | 78.61M | 77.3M | 62.52M | 38.52M | 36.46M | 35.98M | 36.56M | 35.8M | 38.34M | 32.04M | 28.18M | 25.51M | 27.92M | 23.06M | 22.38M | 21.1M | 20.66M | 7.67M |
| Basic Shares Outstanding | 90.71M | 89.79M | 86.19M | 84.62M | 84.13M | 83.41M | 81.15M | 80.3M | 78.58M | 77.92M | 77.7M | 77.24M | 62.52M | 38.52M | 36.46M | 35.98M | 34.85M | 34.37M | 36.86M | 29.85M | 27.3M | 25.51M | 26.9M | 23.06M | 22.38M | 21.1M | 11.5M | 7.67M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Cyclical Revenue Concentration
As reported in recent financial statements, Ceragon's top-line performance has shifted into a contractionary phase, with revenue declining by 14.07% year-over-year, reflecting a significant deceleration from the growth observed in early 2024 when quarterly revenues consistently exceeded $100 million before retreating to current levels.
The reversal in revenue growth suggests that the company is highly susceptible to the lumpy nature of carrier capex cycles, particularly in emerging markets like India. Investors should monitor whether this decline represents a temporary pause in 5G infrastructure deployment or a more structural loss of market share to competitors.
Based on the provided income statement data, Ceragon has maintained a relatively stable gross margin profile, hovering around 33.8%, despite the recent volatility in top-line revenue, which suggests that the company possesses some degree of pricing power or effective cost management within its hardware-heavy product mix.
While the 33.8% margin appears resilient, it remains vulnerable to fluctuations in semiconductor component costs and global logistics expenses. The inability to expand these margins significantly during periods of higher volume indicates that the company's current cost structure is heavily tied to variable manufacturing inputs.
According to the latest quarterly figures, Ceragon's operating margin has compressed to a thin 2.5%, illustrating that the company struggles to achieve meaningful operating leverage as fixed R&D and SG&A expenses consume the majority of gross profit generated during periods of lower revenue volume.
The sharp drop from the 14.3% operating margin seen in 2024Q3 to current levels highlights the sensitivity of the bottom line to revenue fluctuations. This suggests that the company's current operating model requires a higher and more consistent revenue base to effectively absorb its fixed overhead costs.
Analysis of the cost structure reveals that R&D spending remains a persistent fixed burden, consistently ranging between $7M and $9M per quarter, which, when combined with SG&A, leaves little room for net profitability when revenue growth stalls or turns negative as observed in recent periods.
Management's commitment to R&D is necessary for maintaining technical competitiveness in the microwave backhaul space, yet it creates a high break-even threshold. The lack of expense discipline during revenue downturns suggests that the company may face continued earnings volatility until it can achieve greater scale or shift toward higher-margin software solutions.
As indicated by the recent net loss of $1.3 million in 2026Q1, the company's reliance on project-based hardware sales may be reaching a point of diminishing returns, raising concerns about whether the current business model can generate consistent shareholder value without a fundamental shift in revenue composition.
Short-term observers may point to the negative net margins as evidence that the company is struggling to compete effectively against larger, more diversified equipment vendors. The transition to disaggregated backhaul remains a critical, yet unproven, catalyst that investors should monitor to determine if it can truly decouple profitability from hardware volume.
Quick answers to the most common questions about buying CRNT stock.
For fiscal year 2025, Ceragon Networks Ltd. (CRNT) reported total revenue of $338.7M. This represents a 7341.3% increase compared to $4.6M in 1999.
Ceragon Networks Ltd. (CRNT) reported a net loss of $2.1M for the fiscal year ending 2025.
Ceragon Networks Ltd. (CRNT) reported an operating income of $11.1M, resulting in an operating profit margin of 3.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Ceragon Networks Ltd. (CRNT) generated $114.6M in gross profit for the year, representing a gross profit margin of 33.8%. This demonstrates the company's core pricing power and production efficiency.