Slides
Page 1
1N a s d a q : C R N T ‹#›P r o p r i e t a r y & C o n f i d e n t i a l | P r o p r i e t a r y & C o n f i d e n t i a l | CERAGON NETWORKS Investor Presentation Needham Growth Conference January 2026
Page 2
2N a s d a q : C R N T DISCLAIMER This presentation has been prepared by Ceragon Networks Ltd. (“Ceragon” or the “Company”) for informational purposes only. This presentation and the information contained herein are proprietary to the Company and may not be reproduced (in whole or in part) nor summarized, used, distributed, disseminated and/or copied without the prior written consent by the Company. Ceragon Networks® and FibeAir® are registered trademarks of Ceragon in the United States and other countries. CERAGON® is a trademark of Ceragon Networks Ltd., registered in various countries. Other names mentioned are owned by their respective holders. Neither this presentation nor any of the information contained herein constitute an offer to sell or the solicitation of an offer to buy any securities. No offering of securities shall be made in the United States except pursuant to registration under the U.S. Securities Act of 1933, as amended, or an exemption therefrom. No offering of securities shall be made in Israel except pursuant to an effective prospectus under the Israeli Securities Law, 1968 or an exemption from the prospectus requirements under such law. This presentation does not constitute a proposal and/or an offer and/or invitation to acquire and/or to be issued shares or any other securities by the Company and/or to engage in any transaction. This presentation has been prepared to provide summary information to its recipients, but it does not, however, purport to present all material information regarding the Company and/or the subject matter thereof, and it is subject to, and must be read in conjunction with, all other publicly available information, including Ceragon’s public filings with the Securities and Exchange Commission (“SEC”). In particular, the Company makes no representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein. Historical facts and past operating results are not intended to mean that future performances or results for any period will necessarily match or exceed those of any prior year. Forward Looking Statements. This presentation contains statements that statements that constitute “forward-looking statements” within the meaning of the Securities Act of 1933, as amended and the Securities Exchange Act of 1934, as amended, and the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on the current beliefs, expectations and assumptions of Ceragon’s management about Ceragon’s business, financial condition, results of operations, micro and macro market trends and other issues addressed or reflected therein. Examples of forward-looking statements include, but are not limited to, statements regarding: projections of demand, revenues, net income, gross margin, capital expenditures and liquidity, competitive pressures, order timing, supply chain and shipping, components availability; growth prospects, product development, financial resources, cost savings and other financial and market matters. You may identify these and other forward-looking statements by the use of words such as “may”, “plans”, “anticipates”, “believes”, “estimates”, “targets”, “expects”, “intends”, “potential” or the negative of such terms, or other comparable terminology, although not all forward-looking statements contain these identifying words. Although we believe that the projections reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations there from will not be material. Such forward-looking statements involve known and unknown risks and uncertainties that may cause Ceragon’s future results or performance to differ materially from those anticipated, expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to: Company’s forward-looking forecasts, with respect to which there is no assurance that such forecasts will materialize; Company’s ability to future plan, business, marketing and product strategies on the forecasted evolution of the market developments, such as market and territory trends, future use cases, business concepts, technologies, future demand, and necessary inventory levels; the effects of foreign political and economic risks as well as global economic trends, including recession, rising inflation, rising interest rates, commodity price increases and fluctuations, commodity shortages and exposure to economic slowdown; risks related to conditions in Israel, including Israel’s conflicts with Hamas and other parties in the region; risks associated with delays in the transition to 5G technologies and in the 5G rollout; risks relating to the concentration of our business on a limited number of large mobile operators and the fact that the significant weight of their ordering, compared to the overall ordering by other customers, coupled with inconsistent ordering patterns, could negatively affect us; risks resulting from the volatility in our revenues, margins and working capital needs; disagreements with tax authorities regarding tax positions that we have taken could result in increased tax liabilities; the high volatility in the supply needs of our customers, which from time to time lead to delivery issues and may lead to us being unable to timely fulfil our customer commitments; and such other risks, uncertainties and other factors that could affect our results of operation, as further detailed in Ceragon’s most recent Annual Report on Form 20-F, as published on March 25, 2025, as well as other documents that may be subsequently filed by Ceragon from time to time with the Securities and Exchange Commission. We caution you not to place undue reliance on forward-looking statements, which speak only as of the date hereof. Ceragon does not assume any obligation to update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release unless required by law. While we believe that we have a reasonable basis for each forward-looking statement contained in this press release, we caution you that these statements are based on a combination of facts and factors currently known by us and our projections of the future, about which we cannot be certain. In addition, any forward-looking statements represent Ceragon’s views only as of the date of this press release and should not be relied upon as representing its views as of any subsequent date. Ceragon does not assume any obligation to update any forward-looking statements unless required by law. The results reported in this press-release are preliminary and unaudited results, and investors should be aware of possible discrepancies between these results and the audited results to be reported, due to various factors. Ceragon’s public filings are available on the Securities and Exchange Commission’s website at www.sec.gov and may also be obtained from Ceragon’s website at www.ceragon.com. Industry Data. This presentation contains estimates and information that is based on industry publications, reports and peer company public filings. This information involves a number of assumptions and limitations, and you are cautioned not to rely on or give undue weight to this information. The Company has not independently verified the accuracy or completeness of the data contained in these industry publications, reports or filings.
Page 3
3N a s d a q : C R N T KEY INVESTMENT HIGHLIGHTS 34.8% 35.1% 8.4% 10.1% 2023 2024 $ Millions MARGINS Non-GAAP Gross Margin Adjusted Non-GAAP Operating Margin $347.2 $394.2 2023 2024 $ Millions REVENUE $16.7 $27.3 $6.2 $24.1 2023 2024 $Millions NET INCOME Adjusted Non-GAAP Net Income GAAP Net Income Winning strategy to drive sustainable growth • Growing private network business and customer base selling end-to- end solutions that more than double the TAM • Increased SW-led services to grow recurring business & profitability • Leader in the rapidly-growing mmW segment • Maintains leadership with powerful radios using proprietary chipset Global presence to drive opportunities & diversification • ~2,200 customers in 130 countries Consistent delivery with high financial discipline • Generated free cash flow and non-GAAP profitability in Q3 • Expected to continue in Full Year 2025 Differentiated technology enabling market share gains • Unique combination of cost and bandwidth capabilities • Point to Multipoint solution resonating with private networks • IP-50EXP (mmW) is the new microwave (throughput and distance) Adjusted Non-GAAP Operating Margin and Adjusted Non-GAAP Net Income in 2024 exclude a ~$9.1 million benefit from an initial recovery of a credit loss that was provisioned in Q4 2022 related to a specific customer. TOP-TIER GLOBAL CUSTOMER BASE RECENT FINANCIAL HIGHLIGHTS
Page 4
4N a s d a q : C R N T 4 PROGRESS IN LONG-TERM STRATEGY 4 Recurring business with software-led Managed Services New SW application offerings Introduction of four new mmWave products in E-Band and FR2 frequencies NEW GROWTH ENGINES WINNING IN OUR CORE Disruptive 5G Wireless Transport Offering In-house core next-generation technology – positions Ceragon 2-3 years ahead of the competition Increasing presence with CSPs globally REVENUES MARGINS NEW CUSTOMERS NEW OPPORTUNITIES Expanding presence with Private Networks Increasingly providing end-to-end solutions, driving margin and recurring revenue Bolstering our reputation with new customers beyond our core customer base to reduce the impact large CSPs have on our revenue
Page 5
5N a s d a q : C R N T Q4 2025 BUSINESS UPDATE • Preliminary Q4 Revenue: $81M - $83M • Q4 Revenue Impacted by Customer Timing: Large North American customer deferred scheduled deliveries • North America Orders Intact, Backlog Increased: No cancellations expected, and the deferral increased backlog entering 2026 • North America Momentum Continues: Strong bookings through Q4, including a solid finish in Private Networks
Page 6
6N a s d a q : C R N T 2025 HIGHLIGHTS • Preliminary FY2025 Revenue: $337.4M - $339.4M • New Customers Added: More than 30 new customers, over 75% of them were in private networks • North America Momentum Continues: Strong bookings through Q4, backlog exiting 2025 almost doubled vs. end of 2024 • Increasing Customer Activity Worldwide Entering 2026: POCs, RFPs, and emerging use cases in private networks and CSPs
Page 7
7N a s d a q : C R N T PRELIMINARY 2026 GUIDANCE Revenue: $355 million to $385 million ▪ North America has multiple opportunities in advanced stages expected to convert in 2026 ▪ India run-rate revenue is approximately $100M primarily from two main customers • Slight revenue expansion within these two customers is assumed at low-end of guidance • Optimistic about RFPs from other customers - could lead to meaningful growth ▪ Measured recovery in ROW ▪ Inclusive of the shift of revenues related to the delayed deliveries from Q4 ▪ Continue to explore strategic acquisitions that can drive incremental growth and scale Non-GAAP Operating Margin: 6.5% to 7.5% ▪ Based on: • Revenue at midpoint of guidance - $370M • Non-GAAP Gross Margin: ~100 bp higher for the full year – Mixture and cost reductions • USD/IL currency exchange rate impact, based on recent months ▪ Operating Margin 8% to 9% excluding assumed FX impact
Page 8
8N a s d a q : C R N T EXPENSE CONSIDERATIONS FOR 2026 GUIDANCE ▪ Foreign Currency Impact: USD/ILS movement implies approximately $0.05 to $0.06 EPS headwind in 2026 vs. 2025 (assuming FX remains similar to recent average levels) ▪ Go-to-Market Investments: Increased focus in regions with more growth opportunities, with significant portion predominantly related to increased variable compensation (results-driven) ▪ New Product Investment: Launch of four innovative products aligned with emerging customer needs
Page 9
9N a s d a q : C R N T SUMMARY 2026 guidance reflects: • Multiple worldwide opportunities (POCs, award declarations, orders) of new use cases in private networks and CSPs • Increased North America backlog and momentum in both private networks and CSPs • Increased business in India from existing customers and potential new wins from other incremental RFPs • Measured recovery in other regions • Increased investments in products and go-to-market efforts to drive ROI Strategy is focused on improving consistency, diversification, mix shift, and stronger execution
Page 10
10N a s d a q : C R N T D E L I V E R I N G C O N N E C T I V I T Y E V E R Y W H E R E THANK YOU