Ceragon Networks Ltd.

Ladies and gentlemen, thank you for standing by and welcome to Saragon's first quarter 2026 earnings call. Our presentation today will be followed by a question and answer session, at which time, if you wish to ask a question, you will need to either raise your hand using your mobile or desktop application or press star 9 on your telephone keypad and wait for your name to be announced. I must advise you that this call is being recorded today. I would now like to hand over the call to our first speaker today, Rob Fink, Head of Investor Relations. Rob, please go ahead.

Thank you, Operator, and good morning, everyone. Hosting the calls today is Daron Arazi, Saragon's Chief Executive Officer, and Ronen Stein, Chief Financial Officer. Before we start, please note that today's discussion includes forward-looking statements within the meaning of the Securities Act of 1933 and as amended, the Securities Exchange Act of 1934, as amended, and the safe harbor provision of the Privacy and Securities Litigation Reform Act of 1995. These statements include, among other things, projected financial performance, future initiatives, business outlooks, development efforts, anticipated results, timeline, and other matters. Forward-looking statements are based on current expectations and assumptions that involve risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include, among other things, global and regional economic conditions, conditions in Israel and the region, fluctuations in exchange rate, customer concentration, ordering patterns, and supply chain challenges, as further detailed in Saragon's most annual report in Form 20F, and other documents filed with the Securities and Exchange Commission. Forward-looking statements are accurate only as of the date they are made and Saragon undertakes no obligation to update them. Saragon's public filings are available on the Security and Exchange Commission's website at sec.gov and on Saragon's website at saragon.com. Also, today's call will include certain non-GAAP measures for a reconciliation between GAAP and non-GAAP results Please see the table attached to the press release issued earlier today, which is posted on the investor relations section of Saragon's website. With all that, I will now turn the call over to Daron. Daron, the call is yours.

Thank you, Rob, and good morning, everyone. The first quarter of 2026 was a solid start to the year for Saragon, highlighted by strong execution in several key markets, especially India. The results reflected healthy demand across our business and the strength of Saragon's positioning in several important growth markets. Revenue for the first quarter of 2026 was $85 million, and non-GAAP EPS was one cent. North America represented 37% of revenue in the quarter, and India represented 35%, continuing the regional concentration trends we discussed previously. Gross margin benefited from favorable geographic and product mix, as well as increased software license revenue. Although profitability was negatively impacted, by several macro and industry-wide cost pressures that intensified during the quarter. However, demand trends across the business remain encouraging and support our view that Ceragon remains strategically well positioned in the evolving wireless connectivity market. I begin with India, where activity levels remain strong and the conversion of opportunities into bookings accelerated during the quarter. Earlier this month, we announced approximately $86 million in bookings in India, mainly from two leading operators, including a substantial portion related to our new IT50 ICSA platform, supporting large-scale fixed wireless access expansion projects. These wins reinforce both the scale of the market opportunity and several competitive positioning, especially given the expected changes in the competitive landscape. Operators continue investing aggressively to support rising data consumption and broadband expansion, and our event solutions align well with those requirements. In particular, demand for our event portfolio is accelerating across multiple applications. Customers increasingly view these solutions as a compelling alternative to fiber due to their ability to deliver fiber-like capacity with faster deployment and timelines with lower total cost of ownership. By the way, Based on customer feedback, we believe this trend may be expanding beyond India into additional geographies and customer verticals. This view is also generally consistent with recent industry analysts reporting year-over-year growth of 4% in the global wireless backhaul market in 2025. Turning to North America, execution during the first quarter was generally in line with our expectations. As we discussed previously, order volumes from one of our key T1 carrier customers were particularly strong during the second half of 2025, and in T1, this customer moderated bookings activity following the elevated period of demand. Importantly, our current expectations for 2026 with this customer remain largely unchanged. We continue to expect another strong year with this customer, with revenue at levels similar to or modestly above 2025 levels, with acceleration in the second half. At the same time, we are making encouraging progress with another major T1 carrier in North America. Recently, we successfully completed a proof-of-concept trial involving our new FR2 solution for the 28 gigahertz spectrum band. Following the positive outcome of the trial, we are now advancing development discussions and commercial engagement efforts with these customers. We are hopeful that this could potentially translate into meaningful orders starting in the third quarter. More broadly, the North American market remains active. We continue to generate strong engagement levels from both traditional CSP and ISP customers, particularly around higher capacity network architectures. eBend as fiber redundancy, and eBend as a next-generation wireless transport solution that can accelerate deployment and increase capacity while improving economics. We are also advancing more opportunities in private networks in North America, but as I've mentioned before, sales cycles in this segment remain longer and are more project-oriented. At higher level, changes in the competitive landscape are driving more interest from many customers globally, most notably CSP customers and most particularly among service providers in Europe. Discussions with these customers are at different stages of engagement and we believe that we may start seeing initial orders from some of them in the remainder of 2026. In private networks, momentum continues to build, although deployment activity remains project-driven and gradual in nature. Last month, we announced approximately $10 million in private network contracts across multiple customers and use cases. Such projects, many of which are end-to-end in scope, are often anchored in advanced wireless technologies Transport combined with 5G or LTE to enable edge IoT connectivity and support operational automation for private networks. Server's capabilities align well with the expanding industry demand and use cases, giving us a durable competitive advantage when bidding on projects. When I step back and look at the full picture, our Q1 results came in largely where we anticipated, and my view on the outlook today remains largely unchanged from what we communicated in January and February. The investment thesis that underpins that outlook, specifically growing demand for our solutions, a strengthening competitive position and an expanding addressable market all remain intact. That said, our line of sight to get there is certainly evolving and I want to walk you through what we see. As we have shared, India is already delivering at the level we needed to support our annual guidance. We had hoped the demand we were seeing would convert to bookings and revenue, and it is. North America also remains fundamentally strong. We have new customers, new orders, and a healthy backlog of opportunity. However, we are navigating a supply chain situation with one of our large tier one carriers that will shift some revenue expected in Q2 into Q3. The supply chain situation is isolated to one specific component and is a timing issue, not a demand issue and not a relationship issue. We are working closely with the customer and relevant component vendors on a catch-up plan. This expected shift does not lead us to modify our previous revenue guidance for 2026 of $355 to $385 million. Our operating model has some built-in flexibility to absorb the unexpected. Carrier shifts are a known dynamic in our business, and we plan for it. What makes Q2 uniquely challenging is that the timing of the expected North America revenue shortfall coincides with a surge in India revenue that, while welcome, naturally carries lower margins. The result is that our second quarter revenue mix will likely be more heavily weighted toward India than we would normally see, and that mix shift alone is expected to create pressure on gross margins. Looking into the back half of the year, Based on what we see today, we expect North America to rebound strongly in the third quarter as the supply stream improves, the mix normalizes, and margins recover sequentially. Taken across both quarters, our current visibility suggests these dynamics should largely offset one another. As a public company that reports quarterly, we don't have the luxury of investors simply waiting for the natural offset to play out. So I wanted to walk through the moving pieces now while we still have time to frame them properly. Looking deeper into the near term, in addition to the revenue mix dynamics I described, there are broader industry-wide cost headwinds that are not unique to Saragon, as well as some negative foreign exchange trends that may put higher pressure on our profitability. Ronen will describe these issues in more detail in a bit. Nevertheless, the demand environment is strong and our competitive position is improving. The full year revenue range of $355 to $385 million will be provided in January remains our target and we are executing against it. With that, I will turn over to Ronen.