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what it is
Ceragon sells wireless gear that moves carrier traffic between cell sites and the network core.
how it gets paid
Last year Ceragon Networks made $394M in revenue. Wireless backhaul systems was the main engine at $160M, or 41% of sales.
what just happened
Revenue stayed at $171M while EPS fell to -$0.03.
At a glance
n/a balance sheet
35/100 earnings predictability — expect surprises
0.2x trailing p/e — the market's not buying it — or you found a deal
14.5% return on capital — nothing to write home about
$0.28 fy2024 eps est
xvary composite: 39/100 — weak
What they do
Ceragon sells wireless gear that moves carrier traffic between cell sites and the network core.
Ceragon sits in the pipes between cell sites and the network core. backhaul → the link that moves traffic between those points → so what: replacing it means trucks, crews, and downtime. More than 400 service providers and 800 private network owners already use the gear in 150+ countries, so you are not looking at a one-customer story.
How they make money
$394M
annual revenue
Wireless backhaul systems
$160M
+8.5%
Millimeter-wave fronthaul
$90M
+10.0%
Private network solutions
$70M
+12.0%
Software and networking functions
$44M
flat
Support and services
$30M
+5.0%
The products that matter
microwave transport equipment
Wireless Backhaul Solutions
$82.3M q4 revenue base
this is the core offering behind the latest $82.3M quarter. if operators keep spending here, revenue can hold up. if pricing slips, the profit line feels it immediately.
core revenue engine
radio access transport links
Wireless Fronthaul Solutions
1,600+ global clients
this sits inside a customer base of more than 1,600 clients worldwide. it matters because 5g transport spend is only useful to Ceragon if that installed customer set keeps ordering.
network buildout exposure
Key numbers
0.2x
trailing profit
You are paying 20 cents for each $1 of trailing profit. That is the market saying the earnings stream is tiny or temporary.
$394M
FY2024 sales
That is the revenue base for the whole business. A $10M swing is 2.5% of sales.
14.0%
operating margin
For every $1 of sales, 14 cents stays after running the business. That is the cushion between profit and panic.
33.7%
gross margin
Roughly one-third of revenue survives before overhead. If this slips 3 points, gross profit drops about $11.8M on $394M sales.
Financial health
n/a
strength
- balance sheet grade n/a
- risk rank 4 — safer than 20% of stocks
- price stability 15 / 100
n/a — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for CRNT right now.
source: institutional data · return history unavailable
What just happened
missed estimates
Revenue stayed at $171M while EPS fell to -$0.03.
Sales were down 7% vs. prior year. Gross margin came in at 33.7%, which kept the business profitable on the product side but did not stop EPS from slipping.
$171M
revenue
-$0.03
eps
33.7%
gross margin
the number that mattered
The $171M quarter matters because it was still the top line, but it was 7% smaller than a year ago.
source: EDGAR quarterly filing
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What could go wrong
the #1 risk is geographic telecom spending weakness hitting already-thin profitability.
med
Geographic revenue weakness
Management already flagged revenue declines in specific markets. When a quarter produces $82.3M of revenue and only about $0.001 of EPS, regional softness has almost no cushion.
A few weaker regions can be the difference between a profitable quarter and a quarter that rounds to zero.
med
Near-zero earnings conversion
Ceragon's 33.7% gross margin leaves room to cover costs. The latest quarter shows that room can disappear fast after operating expenses and mix shifts.
If gross margin slips or operating costs rise, the earnings line can vanish even while revenue still looks healthy.
med
Customer and project timing
A 1,600-client base sounds diversified. In telecom infrastructure, large projects still arrive in lumps, budgets move slowly, and delayed operator spending shows up quickly in small-cap results.
If orders slip, the market may start treating the $394M revenue base as temporary rather than durable.
At $82.3M of quarterly revenue and about $0.001 EPS, Ceragon does not need a disaster to disappoint you. It just needs margins to stay thin.
source: institutional data · regulatory filings · risk analysis
Pay attention to
the number that mattered
whether EPS stops rounding to zero
Revenue can stay respectable and still fail shareholders. If another quarter looks like $82.3M of sales and about $0.001 EPS, the margin story has not improved.
next report
fy2026 revenue setup vs. $363M watch level
The next guide matters because last year came in at $394M. Same business, very different message if the next number starts with a three instead of a four.
risk check
any repeat of geographic market weakness
Management already pointed to regional declines. You want to hear stabilization there, because this company does not have the margin structure to shrug off another soft patch.
balance sheet
cash staying ahead of debt
More cash than total debt buys time. It does not buy a thesis. If profitability stays thin, liquidity becomes the safety net investors focus on next.
Analyst rankings
earnings predictability
35 / 100
Low predictability means the quarterly numbers can swing more than you want. In human-speak, analysts do not trust this business to print the same kind of quarter twice in a row.
source: institutional data
Institutional activity
institutional ownership data for CRNT is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$2
current price
n/a
target midpoint · n/a from current
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