India Once Again Weighs on Ceragon

8 August, 2025

Ceragon’s revenue dropped 14% in Q2 due to project delays from a key customer in India. The company suspended its annual guidance but believes the disruption is temporary. Meanwhile, growth continues in the U.S. market

Ceragon has reported a sharp decline in revenue for the second quarter of 2025, driven by ongoing challenges in the Indian telecom market—one of its two main target regions, alongside North America. Revenue totaled $82.3 million, down roughly 14% year-over-year. The drop in Indian sales is attributed to project delays from a single major customer, whose identity has not been disclosed. As a result, Ceragon has suspended its full-year revenue guidance until the situation becomes clearer.

This is not the first time India has caused turbulence for the company. In 2019–2020, Ceragon faced a steep revenue decline due to a prolonged telecom market freeze in India, which triggered a business and financial crisis. Since then, however, the company’s dependency on India has somewhat decreased, and its geographic revenue mix has become more diversified.

During the investor call, CEO Doron Arazi addressed the Indian situation directly: “On the surface, our Q2 results may appear weaker than expected, but this is largely due to a single region—India—and primarily one key customer facing known financial challenges. This led to a temporary pause in orders and short-term uncertainty, as the project’s future remains unclear. Based on what we know today, this seems to be a matter of timing rather than any fundamental change in the market or our position within it.”

The company ended the quarter with a GAAP operating loss of $1.3 million, but maintained a slight profit of $0.03 per share on a Non-GAAP basis. Arazi emphasized Ceragon’s core resilience during this challenging period: “The second quarter demonstrated the strength and flexibility we’ve built into our business. We delivered strong Non-GAAP profitability, generated cash, reduced debt, and advanced our strategic goals—even as the Indian market remains volatile.”

Ceragon is working to offset pressures from Asia through expansion in other regions, particularly North America. This marks the third consecutive quarter of growth in the U.S., where orders and revenues rose to approximately $27 million—its highest quarterly result in over a year. “We are seeing growing momentum in North America and other regions, where our advanced technology is opening doors with Tier-1 operators and private network customers,” said Arazi.

The global telecom sector has recently experienced a slowdown, especially in emerging markets, due to unpredictable regulations, high financing costs, and increased competition from Chinese vendors. Ceragon, which provides wireless communication solutions for mobile operators and private networks, is seeking stability amid global uncertainty by expanding into regions with greater business visibility. Despite the short-term setback, the company’s leadership maintains a positive outlook for the medium and long term, continuing to grow operations in North America, Europe, and Latin America. According to management, meaningful growth is expected to resume in 2026, as global markets recover and Indian projects return to track.

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Posted in tags: Ceragon , India

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