Ceragon Networks - 20-F annual report

The discount rate was determined based on the estimated collateralized borrowing rate of the Company, adjusted to the specific lease term and location of each lease.As of December 31, 2025, 2024 and 2023, 95%, 97% and 94% represent revenues in the United States.Including Europe, Middle East and Africa. Revenues from sales in Israel for the years ended December 31, 2025, 2024 and 2023, amounted to $3,606 thousand, $5,182 thousand, and $4,151 thousand, respectively.Employee related includes employee salaries and commissions, payroll taxes, benefits, and outsourced labor costs.Other segment items include consulting and professional services, depreciation of property and equipment, amortization of intangible assets, share-based compensation expenses, acquisition and integration related charges, marketing expenses, finance and legal expenses, travel expenses, subcontractors costs, software and subscription costs, overhead expenses and restructuring and related charges.Long-lived assets are comprised of property and equipment, net and operating lease right-of-use assets.P6YDuring 2025, 123,307 of the Company’s stock options expired.http://fasb.org/us-gaap/2025#CostOfRevenuehttp://fasb.org/us-gaap/2025#CostOfRevenuehttp://fasb.org/us-gaap/2025#CostOfRevenuehttp://fasb.org/us-gaap/2025#OtherExpenseshttp://fasb.org/us-gaap/2025#OtherExpenseshttp://fasb.org/us-gaap/2025#OtherExpenseshttp://fasb.org/us-gaap/2025#SellingAndMarketingExpensehttp://fasb.org/us-gaap/2025#SellingAndMarketingExpensehttp://fasb.org/us-gaap/2025#SellingAndMarketingExpensehttp://fasb.org/us-gaap/2025#GeneralAndAdministrativeExpensehttp://fasb.org/us-gaap/2025#GeneralAndAdministrativeExpensehttp://fasb.org/us-gaap/2025#GeneralAndAdministrativeExpenseDuring 2024, the Company collected $9,064 thousand from South American customer, see Note 13D.3.http://fasb.org/us-gaap/2025#OtherExpenseshttp://fasb.org/us-gaap/2025#OtherExpenses0001119769FYfalseRepresent an amount lower than $1 thousand00011197692025-01-012025-12-310001119769srt:MinimumMemberus-gaap:EquipmentMember2025-12-310001119769srt:MaximumMemberus-gaap:EquipmentMember2025-12-310001119769us-gaap:OtherMachineryAndEquipmentMember2025-12-3100011197692024-01-012024-12-3100011197692023-01-012023-12-3100011197692025-12-3100011197692024-12-310001119769srt:MinimumMember2025-01-012025-12-310001119769srt:MaximumMember2025-01-012025-12-3100011197692023-12-310001119769crnt:CashFlowHedgesAccumulatedOtherComprehensiveIncomeMember2024-12-310001119769us-gaap:AccumulatedTranslationAdjustmentMember2024-12-310001119769crnt:CashFlowHedgesAccumulatedOtherComprehensiveIncomeMember2025-01-012025-12-310001119769us-gaap:AccumulatedTranslationAdjustmentMember2025-01-012025-12-310001119769us-gaap:AccumulatedTranslationAdjustmentMember2025-12-310001119769crnt:CashFlowHedgesAccumulatedOtherComprehensiveIncomeMember2025-12-3100011197692024-06-012024-06-300001119769srt:MinimumMember2024-06-300001119769srt:MaximumMember2024-06-3000011197692023-06-012023-06-3000011197692023-06-300001119769srt:MinimumMember2023-06-300001119769srt:MaximumMember2023-06-300001119769srt:MinimumMember2023-12-310001119769srt:MaximumMember2023-12-310001119769crnt:ComputersManufacturingPeripheralEquipmentMember2025-12-310001119769crnt:ComputersManufacturingPeripheralEquipmentMember2024-12-310001119769us-gaap:OfficeEquipmentMember2025-12-310001119769us-gaap:OfficeEquipmentMember2024-12-310001119769us-gaap:LeaseholdImprovementsMember2025-12-310001119769us-gaap:LeaseholdImprovementsMember2024-12-310001119769us-gaap:GuaranteeObligationsMember2025-12-310001119769us-gaap:GuaranteeObligationsMember2024-12-3100011197692022-03-012022-03-200001119769crnt:StationEnterprisesLtdMember2022-02-012022-02-080001119769crnt:StationEnterprisesLtdMember2022-02-080001119769crnt:MediationAgreementMember2025-05-012025-05-160001119769crnt:AdslQualityLtdMember2024-10-012024-10-150001119769crnt:FormerEmployeeMember2025-01-012025-12-310001119769srt:NorthAmericaMember2025-01-012025-12-310001119769srt:NorthAmericaMember2024-01-012024-12-310001119769srt:NorthAmericaMember2023-01-012023-12-310001119769us-gaap:EMEAMember2025-01-012025-12-310001119769us-gaap:EMEAMember2024-01-012024-12-310001119769us-gaap:EMEAMember2023-01-012023-12-310001119769srt:AsiaPacificMember2025-01-012025-12-310001119769srt:AsiaPacificMember2024-01-012024-12-310001119769srt:AsiaPacificMember2023-01-012023-12-310001119769country:IN2025-01-012025-12-310001119769country:IN2024-01-012024-12-310001119769country:IN2023-01-012023-12-310001119769srt:LatinAmericaMember2025-01-012025-12-310001119769srt:LatinAmericaMember2024-01-012024-12-310001119769srt:LatinAmericaMember2023-01-012023-12-310001119769country:IL2025-12-310001119769country:IL2024-12-310001119769crnt:SegmentGeographicalGroupsOfCountriesGroupFiveMember2025-12-310001119769crnt:SegmentGeographicalGroupsOfCountriesGroupFiveMember2024-12-310001119769crnt:CustomersMembercountry:USus-gaap:SalesRevenueNetMemberus-gaap:GeographicConcentrationRiskMember2025-01-012025-12-310001119769crnt:CustomersMembercountry:USus-gaap:SalesRevenueNetMemberus-gaap:GeographicConcentrationRiskMember2024-01-012024-12-310001119769crnt:CustomersMembercountry:USus-gaap:SalesRevenueNetMemberus-gaap:GeographicConcentrationRiskMember2023-01-012023-12-310001119769crnt:CustomersMemberus-gaap:SalesRevenueNetMemberus-gaap:OtherAffiliatesMember2025-01-012025-12-310001119769crnt:CustomerOneMemberus-gaap:SalesRevenueNetMemberus-gaap:OtherAffiliatesMember2025-01-012025-12-310001119769crnt:CustomersTwoMemberus-gaap:SalesRevenueNetMemberus-gaap:OtherAffiliatesMember2025-01-012025-12-310001119769crnt:CustomersMemberus-gaap:SalesRevenueNetMemberus-gaap:OtherAffiliatesMember2024-01-012024-12-310001119769crnt:CustomerOneMemberus-gaap:SalesRevenueNetMemberus-gaap:OtherAffiliatesMember2024-01-012024-12-310001119769crnt:CustomerOneMemberus-gaap:SalesRevenueNetMemberus-gaap:OtherAffiliatesMember2023-01-012023-12-310001119769crnt:CustomersMemberus-gaap:SalesRevenueNetMemberus-gaap:OtherAffiliatesMember2023-01-012023-12-310001119769crnt:CustomersTwoMemberus-gaap:SalesRevenueNetMemberus-gaap:OtherAffiliatesMember2024-01-012024-12-310001119769crnt:CustomersTwoMemberus-gaap:SalesRevenueNetMemberus-gaap:OtherAffiliatesMember2023-01-012023-12-310001119769country:IL2025-01-012025-12-310001119769country:IL2024-01-012024-12-310001119769country:IL2023-01-012023-12-310001119769us-gaap:RelatedPartyMember2024-01-012024-12-310001119769us-gaap:RelatedPartyMember2023-01-012023-12-310001119769us-gaap:RelatedPartyMember2025-01-012025-12-310001119769crnt:RadBynetMember2025-01-012025-12-310001119769crnt:RadBynetMember2024-01-012024-12-310001119769crnt:RadBynetMember2023-01-012023-12-3100011197692022-12-310001119769us-gaap:RestrictedStockUnitsRSUMember2024-12-310001119769us-gaap:RestrictedStockUnitsRSUMember2025-01-012025-12-310001119769us-gaap:RestrictedStockUnitsRSUMember2025-12-310001119769us-gaap:CostOfSalesMember2025-01-012025-12-310001119769us-gaap:CostOfSalesMember2024-01-012024-12-310001119769us-gaap:CostOfSalesMember2023-01-012023-12-310001119769us-gaap:ResearchAndDevelopmentExpenseMember2025-01-012025-12-310001119769us-gaap:ResearchAndDevelopmentExpenseMember2024-01-012024-12-310001119769us-gaap:ResearchAndDevelopmentExpenseMember2023-01-012023-12-310001119769us-gaap:SellingAndMarketingExpenseMember2025-01-012025-12-310001119769us-gaap:SellingAndMarketingExpenseMember2024-01-012024-12-310001119769us-gaap:SellingAndMarketingExpenseMember2023-01-012023-12-310001119769us-gaap:GeneralAndAdministrativeExpenseMember2025-01-012025-12-310001119769us-gaap:GeneralAndAdministrativeExpenseMember2024-01-012024-12-310001119769us-gaap:GeneralAndAdministrativeExpenseMember2023-01-012023-12-310001119769us-gaap:StockOptionMember2023-01-012023-12-310001119769us-gaap:StockOptionMember2024-01-012024-12-310001119769us-gaap:StockOptionMember2025-01-012025-12-310001119769us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMember2025-12-310001119769us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2025-12-310001119769us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-12-310001119769us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2024-12-310001119769us-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-12-310001119769us-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMember2025-12-310001119769us-gaap:AccountsPayableAndAccruedLiabilitiesMemberus-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-12-310001119769us-gaap:AccountsPayableAndAccruedLiabilitiesMemberus-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMember2025-12-310001119769us-gaap:AccountsPayableAndAccruedLiabilitiesMember2025-12-310001119769us-gaap:AccountsPayableAndAccruedLiabilitiesMember2024-12-310001119769crnt:ResearchAndDevelopmentMember2023-01-012023-12-310001119769crnt:ResearchAndDevelopmentMember2024-01-012024-12-310001119769crnt:ResearchAndDevelopmentMember2025-01-012025-12-310001119769dei:BusinessContactMember2025-01-012025-12-310001119769crnt:SikluCommunicationLimitedMember2023-12-032023-12-040001119769crnt:SikluCommunicationLimitedMember2023-12-040001119769crnt:SikluCommunicationLimitedMemberus-gaap:TrademarksMember2023-12-032023-12-040001119769crnt:SikluCommunicationLimitedMemberus-gaap:CustomerRelationshipsMember2023-12-032023-12-040001119769crnt:SikluCommunicationLimitedMemberus-gaap:TechnologyBasedIntangibleAssetsMember2023-12-032023-12-040001119769srt:MinimumMembercrnt:SikluCommunicationLimitedMemberus-gaap:CustomerRelationshipsMember2023-12-032023-12-040001119769srt:MaximumMembercrnt:SikluCommunicationLimitedMemberus-gaap:CustomerRelationshipsMember2023-12-032023-12-040001119769srt:MinimumMembercrnt:SikluCommunicationLimitedMemberus-gaap:TechnologyBasedIntangibleAssetsMember2023-12-032023-12-040001119769srt:MaximumMembercrnt:SikluCommunicationLimitedMemberus-gaap:TechnologyBasedIntangibleAssetsMember2023-12-032023-12-040001119769crnt:SikluCommunicationLimitedMember2025-01-012025-12-310001119769crnt:SikluCommunicationLimitedMember2024-01-012024-12-310001119769crnt:SikluCommunicationLimitedMember2023-01-012023-12-310001119769srt:MaximumMembercrnt:SikluCommunicationLimitedMember2023-12-032023-12-040001119769crnt:End2EndTechnologiesLlcMember2025-01-012025-12-310001119769crnt:End2EndTechnologiesLlcMember2025-12-310001119769crnt:End2EndTechnologiesLlcMemberus-gaap:TrademarksMember2025-01-012025-12-310001119769crnt:End2EndTechnologiesLlcMemberus-gaap:CustomerRelationshipsMember2025-01-012025-12-310001119769crnt:End2EndTechnologiesLlcMemberus-gaap:TechnologyBasedIntangibleAssetsMember2025-01-012025-12-310001119769crnt:End2EndTechnologiesLlcMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2024-12-310001119769crnt:End2EndTechnologiesLlcMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2025-01-012025-12-310001119769crnt:End2EndTechnologiesLlcMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2025-12-310001119769crnt:End2EndTechnologiesLlcMember2025-01-012025-01-310001119769crnt:End2EndTechnologiesLlcMember2025-01-310001119769srt:MinimumMembercrnt:End2EndTechnologiesLlcMember2025-01-012025-12-310001119769srt:MaximumMembercrnt:End2EndTechnologiesLlcMember2025-01-012025-12-310001119769srt:MinimumMembercrnt:SikluCommunicationLimitedMember2023-12-032023-12-040001119769crnt:SikluCommunicationLimitedMember2025-12-310001119769crnt:SikluCommunicationLimitedMember2025-12-312025-12-310001119769us-gaap:TechnologyBasedIntangibleAssetsMember2025-12-310001119769us-gaap:TechnologyBasedIntangibleAssetsMember2024-12-310001119769us-gaap:OtherNonoperatingIncomeExpenseMember2025-12-310001119769us-gaap:OtherNonoperatingIncomeExpenseMember2024-12-310001119769srt:MinimumMemberus-gaap:OtherNonoperatingIncomeExpenseMember2025-12-310001119769srt:MaximumMemberus-gaap:OtherNonoperatingIncomeExpenseMember2025-12-310001119769us-gaap:CustomerRelationshipsMember2024-12-310001119769us-gaap:CustomerRelationshipsMember2025-12-310001119769us-gaap:TrademarksMember2024-12-310001119769us-gaap:TrademarksMember2025-12-310001119769srt:MinimumMemberus-gaap:TechnologyBasedIntangibleAssetsMember2025-12-310001119769srt:MinimumMemberus-gaap:CustomerRelationshipsMember2025-12-310001119769srt:MaximumMemberus-gaap:TechnologyBasedIntangibleAssetsMember2025-12-310001119769srt:MaximumMemberus-gaap:CustomerRelationshipsMember2025-12-310001119769srt:MinimumMembercrnt:FirstTwoYearsMember2025-01-012025-12-310001119769srt:MaximumMembercrnt:FirstTwoYearsMember2025-01-012025-12-310001119769crnt:LawForEncouragementOfIndustryTaxesMember2025-12-310001119769crnt:LawForEncouragementOfIndustryTaxesMember2025-01-012025-12-310001119769crnt:PreferredTechnologicalEnterpriseIncomeMember2025-01-012025-12-310001119769country:NO2025-12-310001119769country:BR2025-12-310001119769country:US2025-01-012025-12-310001119769country:BR2025-01-012025-12-310001119769country:USus-gaap:ForeignCountryMember2025-01-012025-12-310001119769country:INus-gaap:ForeignCountryMember2025-01-012025-12-310001119769crnt:OtherCountriesMemberus-gaap:ForeignCountryMember2025-01-012025-12-310001119769country:NO2025-01-012025-12-310001119769country:MX2025-01-012025-12-310001119769country:NG2025-01-012025-12-310001119769country:PE2025-01-012025-12-310001119769country:CO2025-01-012025-12-310001119769country:PY2025-01-012025-12-310001119769country:AR2025-01-012025-12-310001119769country:ZA2025-01-012025-12-310001119769crnt:OtherCountriesMember2025-01-012025-12-310001119769country:BRus-gaap:ForeignCountryMember2025-01-012025-12-310001119769us-gaap:CommonStockMember2022-12-310001119769us-gaap:AdditionalPaidInCapitalMember2022-12-310001119769us-gaap:TreasuryStockCommonMember2022-12-310001119769us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310001119769us-gaap:CommonStockMember2023-01-012023-12-310001119769us-gaap:AdditionalPaidInCapitalMember2023-01-012023-12-310001119769us-gaap:TreasuryStockCommonMember2023-01-012023-12-310001119769us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-12-310001119769us-gaap:RetainedEarningsMember2023-01-012023-12-310001119769us-gaap:CommonStockMember2023-12-310001119769us-gaap:AdditionalPaidInCapitalMember2023-12-310001119769us-gaap:TreasuryStockCommonMember2023-12-310001119769us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-310001119769us-gaap:RetainedEarningsMember2023-12-310001119769us-gaap:CommonStockMember2024-01-012024-12-310001119769us-gaap:AdditionalPaidInCapitalMember2024-01-012024-12-310001119769us-gaap:TreasuryStockCommonMember2024-01-012024-12-310001119769us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-012024-12-310001119769us-gaap:RetainedEarningsMember2024-01-012024-12-310001119769us-gaap:CommonStockMember2024-12-310001119769us-gaap:AdditionalPaidInCapitalMember2024-12-310001119769us-gaap:TreasuryStockCommonMember2024-12-310001119769us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-12-310001119769us-gaap:RetainedEarningsMember2024-12-310001119769us-gaap:CommonStockMember2025-01-012025-12-310001119769us-gaap:AdditionalPaidInCapitalMember2025-01-012025-12-310001119769us-gaap:TreasuryStockCommonMember2025-01-012025-12-310001119769us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-01-012025-12-310001119769us-gaap:RetainedEarningsMember2025-01-012025-12-310001119769us-gaap:CommonStockMember2025-12-310001119769us-gaap:AdditionalPaidInCapitalMember2025-12-310001119769us-gaap:TreasuryStockCommonMember2025-12-310001119769us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-12-310001119769us-gaap:RetainedEarningsMember2025-12-310001119769us-gaap:RetainedEarningsMember2022-12-31iso4217:EURiso4217:ILSiso4217:ILSxbrli:sharescrnt:Segmentxbrli:sharesiso4217:USDiso4217:USDxbrli:sharesxbrli:pure

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 20-F

(Mark One)

☐	REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934

☒	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2025

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

☐	SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of event requiring this shell company report __________

Commission file number 0-30862

CERAGON NETWORKS LTD.

(Exact Name of Registrant as Specified in Its Charter)

Israel

(Jurisdiction of Incorporation or Organization)

3 Uri Ariav st., Bldg. A (7th Floor) PO Box 112, Rosh Ha’Ayin, Israel, 4810002

(Address of Principal Executive Offices)

Hadar Vismunski Weinberg (+972) 3-543-1369 (tel.), (+972) 3-543-1600 (fax), 3 Uri Ariav st., Bldg. A (7th

Floor) PO Box 112, Rosh Ha’Ayin, Israel, 4810002

(Name, Telephone, E-mail and/or Facsimile Number and Address of Company Contact Person)

Securities registered or to be registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Ordinary Shares, Par Value NIS 0.01	CRNT	Nasdaq Global Select Market

Securities registered or to be registered pursuant to Section 12(g) of the Act: None

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None

Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report: 88,392,925 Ordinary Shares, NIS 0.01 par value.

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes ☐ No ☑

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

Yes ☐ No ☑

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☑	Non-accelerated filer ☐
Emerging growth company ☐

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☑

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:

U.S. GAAP ☑
International Financial Reporting Standards as issued by the International Accounting Standards Board ☐
Other ☐

If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow.

Item 17 ☐ Item 18 ☐

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☑

TABLE OF CONTENTS

		Page
PART I
ITEM 1.	Identity of Directors, Senior Management and Advisers	3
ITEM 2.	Offer Statistics and Expected Timetable	3
ITEM 3.	Key Information	3
ITEM 4.	Information on the Company	34
ITEM 4A.	Unresolved Staff Comments	52
ITEM 5.	Operating and Financial Review and Prospects	52
ITEM 6.	Directors, Senior Management and Employees	63
ITEM 7.	Major Shareholders and Related Party Transactions	82
ITEM 8.	Financial Information	83
ITEM 9.	The Offer and Listing	87
ITEM 10.	Additional Information	87
ITEM 11.	Quantitative and Qualitative Disclosures about Market Risk	96
ITEM 12.	Description of Securities Other than Equity Securities	96
PART II
ITEM 13.	Defaults, Dividend Arrearages and Delinquencies	96
ITEM 14.	Material Modifications to the Rights of Security Holders and Use of Proceeds	96
ITEM 15.	Controls and Procedures	96
ITEM 16.	[Reserved]	97
ITEM 16A.	Audit Committee Financial Expert	97
ITEM 16B.	Code of Ethics	97
ITEM 16C.	Principal Accountant Fees and Services	98
ITEM 16D.	Exemptions from the Listing Standards for Audit Committees	98
ITEM 16E.	Purchases of Equity Securities by the Issuer and Affiliated Purchasers	98
ITEM 16F.	Change in Registrant’s Certifying Accountant	98
ITEM 16G.	Corporate Governance	99
ITEM 16H.	Mine Safety Disclosure	99
ITEM 16I.	Disclosure Regarding Foreign Jurisdictions that Prevent Inspections	99
ITEM 16J.	Insider Trading Policies	100
ITEM 16K.	Cybersecurity	100
PART III
ITEM 17.	Financial Statements	101
ITEM 18.	Financial Statements	101
ITEM 19.	Exhibits	102

INTRODUCTION

Definitions

In this annual report, unless the context otherwise requires:

•

references to “Ceragon,” the “Company,” “us,” “we,” “our” and the “registrant” refer to Ceragon Networks Ltd., an Israeli company, and its consolidated subsidiaries;

•

references to “ordinary shares,” “our shares” and similar expressions refer to our Ordinary Shares, NIS 0.01 nominal (par) value per share;

•

references to “dollars,” “U.S. dollars”, “USD” and “$” are to United States Dollars;

•

references to “shekels” and “NIS” are to New Israeli Shekels, the Israeli currency;

•

references to the “Companies Law” are to Israel’s Companies Law, 5759-1999;

•

references to the “SEC” are to the United States Securities and Exchange Commission; and

•

references to the “Nasdaq Rules” are to the rules of the Nasdaq Global Select Market.

Cautionary Statement Regarding Forward-Looking Statements

This annual report on Form 20-F includes “forward-looking statements” within the meaning of the Securities Act of 1933, as amended (the “Securities Act”), the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. We have based these forward-looking statements on our current expectations and projections about future events.

Forward-looking statements can be identified by the use of terminology such as “may,” “will,” “assume,” “expect,” “anticipate,” “estimate,” “continue,” “believe,” “potential,” “possible,” “intend” and similar expressions that are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements discuss future expectations, plans and events, contain projections of results of operations or of financial condition or state other “forward-looking” information. They involve known and unknown risks and uncertainties that may cause the actual results, performance or achievements of Ceragon to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause our actual results to differ materially from those projected in the forward-looking statements include, without limitation, the risk factors set forth under “Item 3. Key Information Risk Factors,” the information about us set forth under Item 4. “INFORMATION ON THE COMPANY”, the information related to our financial condition under Item 5. “OPERATING AND FINANCIAL REVIEW AND PROSPECTS”, and information included in this annual report generally. Any forward-looking statements represent Ceragon’s views only as of the date hereof 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 applicable law.

PART I

ITEM 1.

IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS

Not applicable.

ITEM 2.

OFFER STATISTICS AND EXPECTED TIMETABLE

Not applicable.

ITEM 3. KEY INFORMATION

A. [Reserved]

B. Capitalization and indebtedness

Not applicable.

C. Reasons for the offer and use of proceeds

Not applicable.

D. Risk Factors

The following risk factors, among others, could affect our business, results of operations or financial condition and cause our actual results to differ materially from those expressed in forward-looking statements made by us. These forward-looking statements are based on current expectations and we assume no obligation to update this information. You should carefully consider the risks described below, in addition to the other information contained elsewhere in this annual report. The following risk factors are not the only risk factors that the Company faces, and as such, additional unknown risks and uncertainties that we currently deem immaterial may also affect our business. Our business, financial condition and results of operations could be seriously harmed if any of the events underlying any of these risks or uncertainties actually occur. In such an event, the market price for our ordinary shares could decline.

Below are some, but not all, of the main risks factors and challenges that we have been facing and may further face, which could have an adverse effect on our business, results of operations and financial condition (the list below is not exhaustive, and investors should read this “Risk factors” section in full):

•

the effects of global economic trends, including recession, rising inflation, rising interest rates, commodity price increases and fluctuations, commodity shortages and exposure to economic slowdown;

•

the effect of the concentration of a major portion of our business on large mobile operators;

•

the impact of delays in generational technology transitions and their rollout;

•

the significant volatility to which our business is primarily subject due to fluctuations in market demand;

•

competition from other wireless transport equipment providers and from other communication solutions that compete with our wireless solutions;

•

merger and acquisition activities that expose us to risks and liabilities;

•

risks related to our forward-looking forecasts, with respect to which there is no assurance that such forecasts will materialize as we predicted;

•

increased breaches of network or information technology security along with an increase in cyber-attack activities, either on our or our customers’ networks, could have an adverse effect on our business;

•

our reliance on third-party manufacturers, suppliers and service providers, and such reliance may disrupt the proper and timely management of deliveries of our products, a risk that is intensified in the case of a single source supplier;

•

the global supply of electronic components, including integrated circuits, has experienced, and may continue to experience, an increase in demand while production capacity remains limited;

•

if we fail to effectively cope with the high volatility in the supply needs of our customers, we may be unable to timely fulfill our customer commitments (for example, delivery issues due to long lead time and availability of components and manufacturing power);

•

we may be exposed to inventory-related losses on inventory purchased by our contract manufacturers and other suppliers, or to increased expenses should unexpected production ramp up be required due to inaccurate forecasts or business changes. In addition, part of our inventory may be written off, which would increase our cost of revenues;

•

risks related to fluctuations in currency exchange rates and restrictions related to foreign currency exchange controls;

•

the expansion of our service offering to new areas, including managed services and software offerings that might pose product development, marketing, sales, operation, implementation and support challenges;

•

risks related to expansion into new fields, such as the private networks market, the development and commercialization of new products, and the rapid change in the markets for our products and in related technologies and operational concepts development;

•

risks relating to the failure to attract or retain qualified and skilled “talents” and personnel and the intense competition for such “talents” and personnel;

•

our engagement in providing installation or rollout projects for our customers and end users whether directly or via third party prime contractor, which are long-term projects that are subject to inherent risks, including early delivery of our products with delayed payment terms, delays or failures in acceptance testing procedures, and potential significant collection risk from our customers all of which may result in substantial period-to-period fluctuations in our results of operations, cash flow and financial condition;

•

We are exposed to risks associated with integrating AI tools into our products, solutions, and operations;

•

changes in privacy and data protection laws and regulations could have an adverse effect on our business prospects, results of operations, and financial condition;

•

the impact of complex and evolving regulatory requirements in which we operate, on our business, results of operations and financial condition;

•

We have significant operations globally, including in countries that may be adversely affected by political or economic instability, major hostilities or acts of terrorism, which expose us to risks and challenges associated with conducting business internationally;

•

Our products and certain components they are comprised of are subject to certain export controls and sanctions regimes that could adversely impact our competitive position and our business;

•

risks relating to disagreements with tax authorities regarding tax positions that we have taken which may result in increased tax liabilities;

•

the occurrence of international, political, regulatory or economic events in emerging markets, where the majority of our sales are made;

•

the impact of industry downturn, reduction in our customers’ profitability due to increased regulation or new mobile services requirements; and

•

risks relating to attempts for a hostile takeover, or shareholder activism, which may, divert our management’s and Board’s attention and resources from our business and could give rise to perceived uncertainties as to our future direction, could result in the loss of potential business opportunities, limit our ability to raise funds and make it more difficult for us to attract and retain qualified personnel for positions in both management and Board levels.

These and other risk factors are further described and elaborated herein below. You should carefully read and consider the full description of the risk factors as described below, in addition to the other information contained elsewhere in this annual report:

Risks Relating to Our Business

Our global operation exposes us to the effects of global economic trends, including recession, rising inflation, rising interest rates, commodity price increases and fluctuations, commodity shortages and exposure to economic slowdown.

The global nature of our activity and our global presence and operation in different countries, regulatory, legal and financial regimes, exposes us to a wide spread of customers, suppliers, subcontractors and contractors, and, in turn, to global and local macro and micro developments. In response to rising inflation in recent years, central banks in the markets in which we operate, including the United States Federal Reserve, have tightened their monetary policies and raised interest rates, and such measures may continue. While interest rates have begun to decline and inflation is lower than in past quarters in the U.S., costs of labor, capital, employee compensation, and other similar effects have increased in the recent past. Our suppliers may raise their prices, and in the competitive markets in which we operate, we may not be able to make corresponding price increases to preserve our gross margins and profitability due to market conditions and competitive dynamics. Additionally, any such increase in prices, even if possible, may not be accepted by our customers, and there is no assurance that we will be able to increase our pricing to offset our increased costs, or that our operations will not be materially impacted by rising inflation and its broader effects on the markets in which we operate in the future. Further, elevated or rising interest rates, lead us, and our customers, to experience higher financing costs, which may, in turn, negatively affect our business, financial condition and results of operations. The global economy has also been impacted by fluctuating foreign exchange rates and geopolitical tensions. As we have substantial international operations, fluctuations in exchange rates between the currencies in which we operate and the U.S. dollar could decrease our revenues or increase our operating costs and financial expenses and adversely affect our results of operations, profits and cash flows. The duration, extent and volatility of inflation, interest rates, foreign exchange rate fluctuations, geopolitical tensions and other macroeconomic headwinds are uncertain and we cannot accurately predict whether we will be able to effectively mitigate their impact on our business. Such developments might have direct or indirect impacts on our business and results of operations, which are hard to predict, monitor or assess, causing uncertainties and high volatility with respect to our estimated or expected results of operations, and, could have an adverse effect on our business, results of operations and financial condition. Our business, and our customers’ businesses, are sensitive to macroeconomic conditions.

Economic factors, such as interest rates, inflation, currency exchange rates, changes in monetary and related policies, market volatility, customer confidence, recession or recessionary indicators, supply chain issues, unemployment rates and real wages, are among the most significant factors that impact customer spending behavior. Specifically, due to the complexity of our supply chain, we have experienced and may continue to experience increase in shipment costs, due to macroeconomic and geopolitical issues, regulatory actions, including sanctions, tariffs, and trade restrictions, labor disturbances and approval delays, which impacted our ability to timely meet demand in certain instances. For example, since February 28, 2026, the war situation between Iran and Israel, the U.S., and other countries in the region has contributed to disruptions to regional air travel and to maritime traffic through critical routes, including increased risk and disruption around the Strait of Hormuz, and broader impacts on energy and freight markets. In addition, following the February 28, 2026 strikes, Houthi officials indicated an intent to resume missile and drone attacks against commercial shipping in and around the Red Sea and Gulf of Aden, which could lead to diversions, longer transit times, and higher shipping and insurance costs. To date, we have successfully managed our supply chain, but if these factors continue or become more severe, they may have an adverse effect on our supply chain and on our ability to fulfill customer orders in a timely manner, which could in turn have an adverse effect on our position in the market and on our business and operations. Additionally, geopolitical developments in East Asia, including any assertion of control by the People’s Republic of China over Taiwan, could significantly disrupt semiconductor supply chains, as well as impact demand to our products by local customers. Global tariff regimes have also adversely affected our cost structure and pricing, negatively impacted our results in 2025, and may continue to affect us in 2026 depending on future trade policy and enforcement.

Additionally, elevated global demand for AI infrastructure may divert wafer, substrate, memory and advanced packaging capacity toward AI-related products, creating shortages, longer lead times and price increases for components we require; certain suppliers may reallocate or suspend production lines accordingly. We are monitoring such developments closely and conducting a supply-chain risk-mapping exercise to address these exposures, however, there can be no assurance that this initiative will be successful or that any mitigation measures identified will be implemented on the anticipated timeline or will effectively reduce these risks. These adverse market forces have a direct impact on our overall performance. Any such disruptions could have a material adverse impact on our business and our results of operation and financial condition.

A major portion of our business concentrates on a limited number of large mobile operators. The significant weight of their ordering, compared to the overall ordering by other customers, coupled with inconsistent ordering patterns, could negatively affect our business, financial condition and results of operations.

A significant portion of our business is concentrated with certain customers. In 2025, approximately 47.9% of our total revenues were attributed to three customers, in 2024, approximately 49.2% of our total revenues were attributed to three customers and in 2023, approximately 44.8% of our total revenues were attributed to two customers. The loss of significant customers or any material reduction in orders from them, in the absence of gaining new significant customers to replace such lost business, has adversely affected, and in the future could adversely affect, various aspects of our results of operations and our financial condition.

In addition, we have difficulty in projecting future revenues from these customers, since (i) our sales are mostly generated from case-by-case purchase orders rather than long-term contracts, our customers are not obligated to purchase from us a fixed amount of products or services over any period of time, and may terminate or reduce their purchases from us at any time without prior notice or penalty; (ii) customers might not be bound by any minimum quota; (iii) the ordering pattern and volume of business directed to us by such customers may fluctuate as a result of numerous parameters, including changing spending policies, changes in prices, rollout strategy and local market conditions and (iv) the delivery schedule to such customers may be changed by them and adversely affect our revenue working capital and cash flow. Any credit crunch, distressed financial situation or insolvency on the part of such customers, may adversely affect our ability to collect the balance due from them and further expend the variation in our revenues and operating results. This risk is heightened in India, in which government actions relating to the rollout of cellular networks affect the demand for our products from customers and increase the difficulty to project future revenues.

Furthermore, since a significant portion of our business is derived from specific countries, our business could be negatively impacted should certain events occur in these countries, such as a slowdown in investments and expansion of communication networks due to the cyclical characteristic of the investment in this industry, as well as changes in local legislation, governmental controls and regulations (including those specifically related to the communication industry) and tariffs and taxes, as well as trade restrictions, a downturn in economic or financial conditions, or an outbreak of natural calamities. Also, an outbreak of hostilities, political or economic instability, as well as any other extraordinary events having an adverse effect on the economy or business environment in these countries, may harm the operations of our customers in these countries, and result in a significant decline of business coming from those countries.

In addition, the telecommunications industry has experienced certain consolidation among its participants, and we expect this trend to continue. Some operators in this industry have experienced financial difficulty and have filed, or may file, for bankruptcy protection. Other operators may merge and one or more of our competitors may supply products to the customers of the combined company following those mergers. This consolidation could result in purchasing decision delays and decreased opportunities for us to supply products to companies following any consolidation. This consolidation may also result in lost opportunities for cost reduction and economies of scale and could generally reduce our opportunities to win new customers to the extent that the number of potential customers decreases. Furthermore, as our customers become larger, they may have more leverage to negotiate better pricing which could adversely affect our revenues and gross margins.

To mitigate the abovementioned risks, we are actively pursuing strategies to diversify our customer base and revenue streams. These efforts include expanding our presence across additional geographic markets, targeting new customer segments beyond large mobile operators, and developing new products and solutions designed to appeal to a broader range of customers in the telecommunications ecosystem. By pursuing these diversification strategies, we seek to reduce our dependence on any single customer or group of customers and create a more balanced and resilient revenue base over time. However, there can be no assurance that these efforts will be successful or that we will be able to sufficiently diversify our customer base to reduce the risks associated with customer concentration.

Realization of any of these risks could result in a material reduction in orders and could adversely affect our results of operations, including gross margin and cash flow, and our financial condition. Although some of these risks derive inherently from the concentration of our business, certain risks may be attributed also to the geographical territories in which we operate as detailed under the risk “Due to the volume of our sales in emerging markets, we are susceptible to a number of political, economic and regulatory risks that could have a material adverse effect on our business, reputation, financial condition and results of operations. This includes the business practices in such emerging markets, that may expose us to legal and business conduct-related regulatory risks”.

Delays in generational technology transitions and their rollout may negatively impact on our revenues, financial condition and results of operation.

We consider generational transitions in wireless technology, including the ongoing transition from 4G to 5G and the anticipated future evolution to 6G, to be among our main growth engines in the foreseeable future. Thus, the development roadmap of our products is designed to introduce 5G-based products to the market and to position us to capitalize on emerging 6G technologies as they develop. Nonetheless, the pace of the transition to 5G technologies and 5G rollout, as well as the timeline for 6G development, is hard to predict, as it depends on numerous factors which are uncertain and beyond our control including, economic factors, financial conditions of operators and the development of 5G use cases. Further delays in 5G technologies' deployment and rollout, or slower-than-anticipated development and adoption of 6G technologies, could have an adverse effect on our future revenues, profitability and cash flow and cause our results to materially differ from our expectations.

Moreover, the timing and pace of generational transitions create uncertainty regarding optimal investment allocation between current and emerging technologies. If we invest heavily in products for one technology generation and the market transitions to the next generation more quickly than anticipated, or if we invest prematurely in next-generation technologies before the market is ready, we may not achieve anticipated returns on our investments. These investment allocation decisions are particularly challenging given the significant resources required to develop and commercialize products for each technology generation.

Our business is subject to significant volatility, primarily due to fluctuations in market demand. Consequently, during periods of low demand, we may experience a reduction in bookings and a slower conversion to revenue in accordance with our customers' requirements. This volatility can result in incurred losses and negative cash flows. Our guidance for revenue and profitability are based on certain assumptions regarding market behavior. However, there is no assurance that the market will behave as anticipated, which could adversely affect our revenue, results of operations, and cash flow. Additionally, we cannot guarantee that we will be able to convert our current or future backlog into profitability and positive operating cash flows. Should trends of volatility, losses, or negative cash flows persist, our results of operations and cash flow may be significantly and adversely impacted.

We are exposed to high volatility in our revenue that is driven by different risks as described and detailed separately in this section. In 2025 we incurred a net loss of $2.1 million, and in 2024 and 2023 we incurred a net income of $24.1 million and $6.2 million, respectively. We generated positive cash flow from operations of $31.6 million in 2025, $26.2 million in 2024 and $30.9 million in 2023. Business volatility may adversely impact our profitability cash flow and working capital needs. We cannot assure you that the trend in the last three years will continue.

Additionally, while in 2025, 2024 and 2023 we have taken measures to improve our gross profit, reduce our operating expenses, improve our working capital management and secure more booking, the implementation of such measures is lengthy, may be delayed as a result of the other risks and uncertainties detailed in this Annual Report on Form 20-F and there is no assurance that such measures will be sufficient or successful or that we will be able to preserve the increase in our revenues, and not return to experiencing a decline in our revenues, incur substantial losses and generate negative cash flows or that a decline, losses and negative cash flow will not occur. Any adverse change in our revenue levels may result in an adverse impact on our businesses, and in the event that our revenues decline and we experience losses and negative cash flow, our results of operations will be significantly adversely impacted. We may need to consider taking additional measures such as reducing costs, which may impact our ability to compete in the market and serve our working capital needs as planned. Furthermore, our working capital needs may require additional or alternate cash resources. If we are unable to obtain such resources nor generate positive cash flow from our operations, our liquidity and ability to fund operations could be impaired.

We face intense competition from other wireless equipment providers and from other communication solutions that compete with our wireless solutions. If we fail to compete effectively, we may experience a decline in the demand for our products and our business, financial condition and results of operations could be materially adversely affected.

The market for wireless transport equipment is rapidly evolving, highly competitive and subject to rapid changes.

Our main competitors include companies such as Huawei Technologies Co., Ltd., L.M. Ericsson Telephone Company, Nokia Corporation and ZTE Corporation, commonly referred to as “generalists”, each providing a vast wireless solutions portfolio, which includes a wireless transport solution within their portfolio. These generalists may also compete with us on “best-of-breed” projects, in which operators invest resources and efforts to select the best wireless transport solution. In addition to these primary competitors, a number of smaller wireless transport specialists, mainly including Aviat Networks Inc. (“Aviat”) and SIAE Microelectronica S.P.A., offer, or are developing, competing products. We also face competition in the private networks field from mobile operators, system integrators and hardware vendors.

In addition, the industry generalists are substantially larger than us, have longer operating histories and possess greater financial, sales, service, marketing, distribution, technical, manufacturing and other resources. These generalists have greater name recognition, a larger customer base and may be able to respond more quickly to changes in customer requirements and evolving industry standards.

To our knowledge, many of these generalists also have well-established relationships with our current and potential customers and may have extensive knowledge of our target markets, which may give them additional competitive advantages. In addition, to our knowledge, these generalists focus more on selling services and bundling the entire network as a full-package service offering, and therefore some of our customers, which seek “best-of-breed” solutions like ours, may prefer to purchase “bundled” solutions from the generalists. Moreover, as these generalists are usually financially stronger than us, they may be able to offer customers more attractive pricing and payment terms, as well as customer credit programs, which may increase the appeal of their products in comparison to ours.

In addition, our products compete with other high-speed communications solutions, including fiber optic lines and other wireless technologies. Some of these technologies utilize existing installed infrastructure and have achieved significantly greater market acceptance and penetration than wireless technologies. Moreover, as more and more data demands are imposed on existing network frameworks coupled with growing demand for additional bandwidth as a result of massive use of remote services and work from home modes of operation, and due to consolidation of fixed and mobile operators, operators may be more motivated to invest in more expensive high-speed fiber optic networks to meet current needs and remain competitive. Some of the principal disadvantages of point-to-point and point-to-multipoint wireless technologies that may make other technologies more appealing include suboptimal operations in extreme weather conditions and limitations in connection with the need to establish line of sight between antennas and limitations in site acquisition for multiple links, or the perception that fiber-optic solutions are more “environmentally-friendly” predominantly in populated areas, favoring other technologies.

The development and expansion of Low Earth Orbit (LEO) satellite networks represent a competitive risk to our business. As these networks become more capable of providing backhaul connectivity for cellular networks, there is a potential for network operators to favor satellite-based solutions over our microwave transmission products. This shift could be driven by the broader coverage and the improving cost efficiencies associated with LEO satellite networks. If cellular network providers increasingly adopt LEO satellite solutions for backhaul purposes, the demand for our microwave products may decrease, adversely affecting our sales and market position.

The rise of LEO satellite systems as a contender in providing direct-to-consumer broadband connectivity presents an additional risk to our business. These satellite networks could sidestep the necessity for widespread terrestrial cellular infrastructure by offering an alternate mode of connectivity directly to consumers. Consequently, mobile operators might assess their infrastructure strategies and opt to scale back investments in terrestrial networks. Such a strategic shift could result in decreased demand for microwave backhaul solutions, thereby interrupting traditional growth and upgrade patterns for microwave backhaul infrastructure. This reevaluation by mobile operators could lead to a contraction in the market for our products, negatively impacting our revenue and growth prospects.

To the extent that these competing communications solutions reduce demand for our wireless transmission products, there may be a material adverse effect on our business and results of operations.

Moreover, some of our competitors can benefit from currency fluctuations as their costs and expenses are primarily denominated in currencies other than the U.S. dollar. In case the U.S. dollar strengthens against these currencies these competitors might offer their products and services for a lower price and capture market share from us, which might adversely affect our business and negatively influence our results of operation and financial condition.

We expect to face continuing competitive pressures in the future. If we are unable to compete effectively, our business, financial condition and results of operations would be materially adversely affected. For more information on the “best-of-breed” market, please refer to Item 4. INFORMATION ON THE COMPANY; B. Business Overview – “Wireless Transport; Short-haul, Long-haul and Small Cells Transport”.

Merger and acquisition activities expose us to risks and liabilities, which could also result in integration problems and adversely affect our business.

We continue to explore potential merger and acquisition opportunities within our wireless transport market or as a diversification effort in order to create a growth engine and implement a growth strategy. In addition, we also explore merger and acquisition opportunities aimed at obtaining technological improvement of our products, adding new technologies to our products and to diversify our business. During January 2025, we completed the acquisition by merger of E2E, a systems integration and software development company.

We are unable to predict whether or when any prospective deals will be completed.

In addition, these strategic transactions involve numerous risks, which can jeopardize or even eliminate the benefits entailed in such transactions, such as:

•

we may not be able to discover, or the target company may fail to provide us with, all relevant information and documents in relation to the transaction, which could lead to a failure to achieve the objectives of acquisition and to a substantial loss;

•

we may fail to reveal that the due diligence materials and documents provided contain untrue statements of material facts or omit to state a material fact necessary to make the statements therein not misleading, hence fail to achieve the objectives of acquisition and suffer a substantial loss;

•

we may fail to correctly assess the due diligence investigation findings, establish a correct investment thesis or establish a correct post-merger integration plan;

•

the process of integrating an acquired business including, for example, the operations, systems, technologies, products, and personnel of the combined companies, particularly companies with large and widespread operations and/or complex products, may be prolonged due to unforeseen difficulties;

•

the implementation of the transaction may distract and divert management’s attention from the normal daily operations of our business;

•

we may sustain and record significant expenditure and costs associated with outstanding transactions that either did not or will not materialize or would fail to achieve its objectives;

•

there will be increased expenses associated with the transaction, and we may need to use a substantial portion of our cash resources or incur debt in order to cover such expenses; expenses which the combined merged companies may not be sufficient to offset;

•

we may generate negative cash flow as a result of such transaction, which may require fund raising that may not be available for us;

•

we may incur unexpected accounting and other expenses associated with the transaction, such as tax expenses, write offs, amortization expenses related to intangible assets, restructuring costs, litigation costs or such other costs derived from the acquisition;

•

the transaction may harm our business as currently conducted (for example, there may be a temporary loss of revenues, we may experience loss of current key employees, customers, resellers, vendors and other business partners or companies with whom we engage today or which relate to any acquired company);

•

we may be required to issue ordinary shares as part of the transaction, which would dilute our current shareholders;

•

we may need to assume material liabilities of the merged entity;

•

in certain cases, mergers and acquisitions require special approvals, or are subject to scrutiny by the local authorities, and failing to comply with such requirements or to receive such approvals, may prevent or limit our ability to complete the acquisitions as well as expose us to legal proceedings prior or following the consummation of such acquisitions. In some cases, such proceedings, if initiated, may conclude in a requirement to divest portions of the acquired business;

•

contingent consideration or earn-out arrangements may not be achieved and may require adjustments or renegotiation over time, which could impact our results of operations due to remeasurement of such obligations, disputes with sellers regarding the achievement of milestones, or diversion of management attention;

•

the failure to successfully complete the integration associated with the transaction (including integrating any acquired technology into our products), which may cause new markets we were aiming for not to materialize or in which competitors may have a stronger market position; or

•

we may fail to effectively obtain the technological improvement.

Specifically, if we are unable to successfully or effectively integrate our current acquisition by merger of E2E, our ability to grow our business or to operate our business effectively could be reduced, and our business, financial condition and operating results could suffer. Even after we have completed the transaction, we cannot assure that we will be able to integrate the operations of the acquired business without encountering difficulty regarding different business strategies with respect to marketing and integration of personnel with disparate business backgrounds and corporate cultures. The integration of E2E is still in progress.

As a result, the anticipated benefits or cost savings of such mergers and acquisitions or other restructuring activities may not be fully realized, or at all, or may take longer to realize than expected. Acquisitions involve numerous risks, any of which could harm our business, results of operations, cash flow and financial condition as well as the price of our ordinary shares.

Our business depends on accurately forecasting market trends and customer demand, securing and executing customer orders as planned, and managing a highly variable mix of products, geographies, and services; if our forecasts prove inaccurate, if customers defer or cancel orders, or if our revenue and margin mix differ from expectations, our revenue, gross margin, cash flows, and operating results could fluctuate significantly and be materially and adversely affected.

Our strategic, corporate, marketing, and product planning relies on forward‑looking assessments of market developments, including anticipated use cases, business concepts, technologies, and customer needs. We shape our network architecture, technological and operational solutions, and services to align with these projections, including initiatives focused on Open RAN and disaggregated architectures. There is no assurance that these concepts will gain market acceptance, that market trends will develop as we anticipate, or that our solutions will meet future demand. If our forecasts are inaccurate or our offerings fail to address evolving requirements, we could experience reduced demand, reputational harm, and significant losses, any of which could materially and adversely affect our business, financial condition, results of operations, and cash flows.

Even when we secure customer orders, there is no assurance they will be fulfilled in their original schedules. Customers may defer delivery dates, delay implementation timelines, or halt orders on short notice due to changes in their plans, budget constraints, regulatory developments, vendor‑related timing issues, or shifting priorities. Such actions can occur with little or no warning and may cause pronounced quarterly revenue volatility, resource underutilization, supply‑chain and inventory inefficiencies, and challenges in operational and financial planning. Similar events may recur and could adversely impact our working capital, collections, and liquidity, particularly where we have increased production or inventory in anticipation of scheduled deliveries.

Our gross margin is inherently difficult to predict and is subject to significant fluctuations driven by changes in geographical revenue mix, product mix, and the proportion of software and services. Gross margin percentages and deal economics can vary materially among regions, countries, customers, and transactions depending on deal size, scope, delivery terms and timelines, and other commercial provisions. A shift toward lower‑margin regions, offerings, or service components may reduce our gross margin, while the opposite may increase it; because actual mix frequently deviates from our expectations and may change late in a period, our reported margins can vary significantly from quarter to quarter.

Our revenue and operating results are also affected by the timing of revenue recognition, which depends on multiple factors that may differ from expectations, including delivery schedules, completion of related services, customer acceptance testing, project timetables, and the aggregation of contract‑specific revenue recognition requirements. A significant portion of our revenue has historically been generated toward the end of each quarter, which heightens the impact of any late‑period delays on our reported results. In addition, a meaningful portion of our business is concentrated with certain customers who are not obligated to purchase minimum volumes and may reduce or terminate purchases without notice or penalty, change desired delivery schedules, or encounter financial distress or insolvency.

These dynamics make forecasting difficult, may adversely impact our revenues, gross margins, working capital, cash flows, and collections, and can cause our actual results to differ materially from our guidance or internal expectations for any given period.

Increased breaches of network or information technology security could have an adverse effect on our business.

Cyber-attacks or other breaches of network or IT security may cause equipment failures or disrupt our systems and operations, expose us to ransom demands or sensitive data leaks. We were subject to an immaterial intrusion to our networks in 2025 and might be subject to additional attempts to breach the security of our networks and IT infrastructure through cyber-attacks, malware, computer viruses and other means of unauthorized access. While we maintain insurance coverage for some of these events, we cannot be certain that our coverage will be adequate for liabilities actually incurred. While we take cybersecurity measures and maintain redundancy and disaster recovery practices for our critical services, we cannot assure you that our cybersecurity measures and technology will adequately protect us from these and other risks. Furthermore, our inability to operate our facilities as a result of such events, even for a limited period of time, may result in significant expenses or the loss of market share to our competitors. We may expend significant resources or modify our products to try to protect against security incidents. The integration of E2E’s information systems poses cybersecurity risks that, if not properly managed, could result in unauthorized access to sensitive data, operational disruptions, and potential financial liabilities.

Maintaining the security of our products, computers and networks is a critical issue for us and our customers. Therefore, each year we invest additional resources and technologies to better protect our assets. However, security researchers, criminal hackers and other third parties regularly develop new techniques to penetrate computer and network security measures. In addition, hackers also develop and deploy viruses, worms, Trojan horses and other malicious software programs, some of which may be specifically designed to attack our products, systems, computers or networks. Moreover, due to current labor market trends, a significant number of our employees or employees of our vendors, suppliers and service providers, have moved to work from their homes and remotely access our or such vendors’, suppliers’ or service providers’ IT networks. Such remote working mode creates the risk of attacking the end-point user stations, connection channels and gateways. We have seen a significant increase of cyberattacks on enterprises and individuals in recent years and we assume that we shall further be exposed to such threats going forward. In addition, our and our vendors’, suppliers’ and service providers’ networks and IT systems are increasingly being moved to cloud-based platforms such as IaaS (Infrastructure as a Service) and SaaS (Software as a Service) IT solutions. These cloud-based arena poses risks of attack on and from the end-point user stations, connection channels and gateways as well as the IaaS and SaaS infrastructures of our service providers. Additionally, external parties may attempt to fraudulently induce our employees or users of our products to disclose sensitive information in order to gain access to our data or our customers’ data. These potential breaches of our security measures and the accidental loss, inadvertent disclosure or unauthorized dissemination of proprietary information or sensitive, personal or confidential data about us, our employees or our customers, including the potential loss or disclosure of such information or data as a result of hacking, fraud, trickery or other forms of deception, could expose us, our employees, our customers or the individuals affected, to a risk of loss or misuse of this information, result in litigation and potential liability or fines for us, damage to our brand and reputation or otherwise harm our business. Furthermore, the increasingly growing capabilities of AI and its availability for public use and adoption, may be used to identify vulnerabilities in our systems craft sophisticated cyberattacks. The rising adoption of AI and Generative AI in daily operations, research and development activities, and products poses additional and new risks, including, without limitation, data privacy and security risks, intellectual property infringement or leakage, ownership issues and/or confidentiality issues. Threats include potential data leaks, social engineering attacks, and decision-making based on manipulated information. Growing regulatory requirements for information security and data protection add to the challenge. Furthermore, cyberattacks and security incidents are expected to accelerate in both frequency and impact as the use of AI increases and attackers become increasingly sophisticated and utilize tools and techniques that are designed to circumvent controls, avoid detection, and remove or obfuscate forensic evidence.

Unauthorized use or behavior on part of our vendors’, suppliers’ and service providers’ employees or taking insufficient cybersecurity measures by them, could result with data leaks and penetration to our databases that are located or installed in their network. In addition, the shift to software solutions coupled with requirement to move data to cloud-based and open-source environments impose enhanced cybersecurity challenges that can make our vendors, suppliers and service providers more vulnerable to cyber-attacks.

In addition, due to the direct hostilities between Israel, Iran and other Iranian proxies, Israeli and Israeli associated companies have become more frequently the target of cyberattacks. Since the escalation of the heated relationship with Iran in June 2025, and more predominantly during February to March 2026, attackers associated with Iran have led a wave of cyberattacks against Israeli public institutions as well as private companies. As such, the risk of a cyberattack against our information technology systems and data security may become heightened.

Cyber-attacks on our customers’ networks involving our products could have an adverse effect on our business.

Maintaining the security of our products (including newly introduced software products) which are installed with our customers is a critical issue for us, therefore each year we invest additional resources and technologies to better protect our assets. However, security researchers, criminal hackers and other third parties regularly develop new techniques to penetrate computer and network security measures. Cyber-attacks, or other breaches of security on our customers’ networks, may be initiated at any network location or device including initiation through our products. Although we maintain high levels of cyber-security aware development processes, we cannot assure that such attacks, or other breaches of security through our products, will fail and therefore may negatively affect our customers’ business. Moreover, criminal hackers or hackers associated with national governments, may target a customer of ours or even try to get access to a wider group of the communication network users while devoting immense resources for long-term access to industry, economy or critical infrastructure users, gather intelligence and develop the means to disable their systems, which attacks are hard to detect, prevent and illuminate. Such attacks could be highly sophisticated, such as slipping malware and Trojan horses and warms into software updates or systematically search for vulnerabilities in our products or in the components we use even before it supplies to us, or using the Company’s networks as a vector to spread malware, might lead to widespread damage and compromised security to the customers. While we maintain insurance coverage for some of these events, we cannot be certain that our coverage will be adequate for liabilities actually incurred. In addition, these events could also result in damage to our reputation which will further negatively impact on our business.

Unauthorized use or behavior on part of our customers’ employees or taking insufficient cybersecurity measures by certain customers, could result in data leaks and penetration to our systems that are located or installed in its network. In addition, the shift to software solutions coupled with the requirement to move data to cloud-based and open-source environments impose enhanced cybersecurity challenges that can make our products and services more vulnerable to cyber-attacks. The rising adoption of AI and Generative AI in daily operations and products among our customers, as well as among cyber-attackers, as described above, poses additional and new risks, including, without limitation, data privacy and security risks, intellectual property infringement or leakage, ownership issues and/or confidentiality issues.

These potential breaches of our security measures could expose our customers to network failures or other related risks, result in litigation and potential liability or fines for us, damage to our brand and reputation or otherwise harm our business.

Relying on third-party manufacturers, suppliers and service providers may disrupt the proper and timely management of deliveries of our products, a risk that is intensified in the case of a single source supplier.

We outsource our manufacturing and the majority of our logistics operations and purchase ancillary equipment for our products from contract and other independent manufacturers. Although during 2025 , we have invested efforts in diversifying our manufacturers and suppliers base, including through our initiative to shift certain manufacturing operations to India, and despite our policy to maintain at least a second source for all of our products’ components, disruption in deliveries or in operations of these and other third-party suppliers or service providers, as a result of, for example, capacity constraints, production disruptions, price increases, regulatory restrictions, force majeure events, as well as quality control problems related to components, may all cause such third parties not to comply with their contractual obligations to us. This could have an adverse effect on our ability to meet our commitments to customers and could increase our operating costs. For additional information see “The global supply of electronic components, including integrated circles, has experienced, and may continue to experience, an increase in demand, while production capacity remains limited, which had, and may continue to have, an adverse effect on the lead-time for our components and increase their prices”.

Although we believe that our contract manufacturers and logistics service providers have sufficient economic incentive to perform our manufacturing and logistics services requirements, the resources devoted to these activities are not within our control. We cannot assure you that manufacturing, or logistics problems will not occur in the future due to insufficient resources devoted to our requirements by such manufacturers and logistics service providers, or due to insolvency or other circumstances that could have a material adverse effect on those manufacturers and logistics service providers’ operations. In addition, we cannot assure that we will have the ability or be in the position to demand from our contract manufacturers to assume our obligations to our customers, apply the same terms back-to-back to our contract manufacturers and suppliers, a risk that is intensified in the case of a single source supplier. Furthermore, our initiative to expand manufacturing operations in India, while intended to diversify our manufacturing footprint and reduce geographic concentration risk, may present additional challenges, including establishing relationships with new contract manufacturers, navigating local regulatory requirements, managing quality control across geographically dispersed operations, and potential delays or inefficiencies as new manufacturing capabilities are developed and scaled.

In addition, some of our contract manufacturers currently obtain key components from a limited number of suppliers. Our contract manufacturers’ dependence on a single or sole source supplier, or on a limited number of suppliers, subjects us to the following risks:

•

The component suppliers may experience shortages in components and interrupt or delay their shipments to our contract manufacturers. Consequently, these shortages could delay the manufacture of our products and shipments to our customers.

•

The component suppliers could discontinue the manufacture or supply of components used in our systems. In such an event, we or our contract manufacturers may be unable to develop alternative sources for the components necessary to manufacture our products, which could force us to redesign our products or buy a large stock of the component into inventory before it is discontinued. Any such redesign of our products would likely interrupt the manufacturing process and could cause delays in our product shipments. Moreover, a significant modification in our product design may increase our manufacturing costs and bring about lower gross margins. In addition, we may be exposed to excess inventory of such component, which we will have to write-down in case the demand is not as high as we anticipated at the time of buying these components.

•

The component suppliers may significantly increase component prices at any time and particularly if demand for certain components increases dramatically in the global market which would have an adverse effect on the Company’s business.

•

The component suppliers may significantly increase the time to produce and deliver their components at any time resulting in an immediate effect. These lead time increases would delay our products’ delivery timetable and could expose us to shortage in supply or late supplies that may trigger penalties, orders cancellation and losing some of our customers.

•

The component suppliers may refuse or be unable to further supply such component for various reasons, including, among other things, their prioritization, focus, regulations, force majeure events or financial situation.

The materialization of the risks detailed above could result in delays in deliveries of our products to our customers, which could subject us to penalties payable to our customers or cancellation of orders, increased warranty costs as well as increases in manufacturing and shipment expenses in the case of expedited deliveries, and damage to our reputation. If any of these problems occur, we may be required to seek alternate manufacturers or logistics service providers and we may not be able to secure such alternate manufacturers or logistics service providers that meet our needs and standards in a timely and cost-effective manner. Consequently, such occurrences, extra costs and penalties could significantly reduce our gross margins and profitability. The above-mentioned risks are exacerbated in the case of raw materials or component parts that are purchased from a single-source supplier.

The global supply of electronic components, including integrated circles, has experienced, and may continue to experience an increase in demand, while production capacity remains limited, which had, and may continue to have, an adverse effect on the lead-time for our components and increase in their prices.

The global demand for electronic components, including digital components, chipsets and semiconductors, has experienced an increase in the past several years, with a growing number of industries increasing their demand and consumption. This, together with the effect of trade embargos (and other factors effecting global shipment detailed under “Our global operation exposes us to the effects of global economic trends, including recession, rising inflation, rising interest rates, commodity price increases and fluctuations, commodity shortages and exposure to economic slowdown”), have led to longer lead-time of electronic components, with many cases of a lead time longer than a year. The lack of sufficient production facilities and capacity of the semiconductor foundry industry to meet such demand, which created a shortage in chipsets, electronic equipment and components, has already caused, and may continue to cause, price increases and extensions of delivery time. Additionally, elevated global demand for AI infrastructure may divert wafer, substrate, memory and advanced packaging capacity toward AI-related products, creating further shortages, longer lead times and price increases for components we require; certain suppliers may reallocate or suspend production lines, accordingly, exacerbating these supply constraints. As a result of this situation, we may be unable to obtain essential components in a timely manner and at a reasonable cost that is necessary for us to remain competitive. During such times, supplier-specific or industry-wide lead times for delivery can be as long as twelve months or more. If we are unable to obtain components in a timely manner to fulfill our customers’ demand, or at a reasonable cost, we may be unable to meet commitments under our contracts with customers, which could expose us to substantial liquidated damages and other claims and could materially and adversely affect our results of operations, financial condition, business and prospects. Additionally, an increase in lead time and the shortage in chipsets may result in delays in the delivery of our products and in meeting the timetables for the execution of our projects, which may trigger penalties, cancellation of orders and loss of some of our customers or market share. This has adversely affected, and may continue to adversely affect, our costs (including a significant increase in production costs) and to erode our gross margin. Furthermore, as our new Systems-on-Chip (SoC) commercialization and commencement of mass production is highly dependent on the timely delivery of the chipsets, these delays may also adversely affect the commercialization and mass production timetable, causing a delay in our ability to introduce and commercialize our new SoC-based products and safeguard and maintain our position and market share as leaders in the introduction of advanced 5G solution.

We experience high volatility in the supply needs of our customers, which from time to time lead to delivery issues due to long lead time and availability of components and manufacturing power. If we fail to effectively cope with such volatility and short-noticed supply demands of our customers, we may be unable to timely fulfill our customer commitments which would adversely affect our business and results of operations.

The delivery requirements of our customers are unevenly spread throughout the year. We may receive very large orders that were not forecasted, or that were expected with a different timing requirement. In addition, we offer our products to our customers in a wide variety of product variations and configurations, and our inability to forecast the quantities or mix of the delivery demands for our products may result in underestimating our material purchasing needs, as well as production capacity requirements. If we fail to effectively manage our deliveries to the customers in a timely manner, or otherwise fulfill our contractual obligations to them - for example if we are unable to synchronize our supply chain and production process in cases of rapidly increasing production needs - the cost of our material purchasing, manufacturing and logistics may increase and we may also be obligated to pay expediting fees to our contract manufacturers or penalties to our customers for delays, and may be subject to order cancelation, all of which would adversely affect our business, financial results and our relationship with our customers. This risk is heightened with the expansion of our service offering, which allows us to access new customers, whose business practices and supply needs we are not familiar with yet.

Due to inaccurate forecasts or business changes, we may be exposed to inventory-related losses on inventory purchased by our contract manufacturers and other suppliers, or to increased expenses should unexpected production ramp up be required. In addition, part of our inventory may be written off, which would increase our cost of revenues.

Our contract manufacturers and other suppliers are required to purchase inventory based on manufacturing projections we provide to them. If the actual orders from our customers are lower than projected, or the mix of products ordered changes, or if we decide to change our product line and/or our product support strategy, our contract manufacturers or other suppliers will have excess inventory of raw materials or finished products, which we would typically be required to purchase, thus incurring additional costs and our gross profit and results of operations could be adversely affected.

Further, we require our contract manufacturers and other suppliers from time to time, to purchase more inventory than is immediately required and with respect to our contract manufacturers, to partially assemble components, in order to shorten our delivery time in case of an increase in demand for our products. In the absence of such increased demand, we may need to make advance payments, compensate our contract manufacturers or other suppliers, or even buy the redundant inventory, as needed. We also may purchase components or raw materials from time to time for use by our contract manufacturers in the manufacturing of our products. This may cause additional write offs and may have a negative impact on our results of operations and cash flow.

Alternatively, if we underestimate our requirements and our actual orders from customers are significantly larger than our planned forecast, we may be required to accelerate the production and purchase of supplies, which may result in additional costs of buying components at less attractive prices, paying expediting fees and excess shipment costs, overtime and other manufacturing expenses. As a result, our gross margins and results of operations could be adversely affected.

Inventory of raw materials, work in-process or finished products located either at our warehouses or our customers’ sites as part of the network build-up may accumulate in the future, and we may encounter losses due to a variety of factors, including:

•

new generations of products replacing older ones, including changes in products because of technological advances and cost reduction measures; and

•

the need of our contract manufacturers to order raw materials that have long lead times, our need to order a Last Time Buy of end of life components and our inability to estimate exact amounts and types of items thus needed.

Further, our inventory of finished products located either at our warehouse or our customers’ sites as part of a network build-up may accumulate if a customer were to cancel an order or refuse to physically accept delivery of our products, or in rollout projects, which include acceptance tests, refuse to accept the network. The rate of accumulation may increase in a period of economic downturn.

Our international operations expose us to the risk of fluctuations in currency exchange rates and restrictions related to foreign currency exchange controls.

We are a global company operating in a multi-currency environment. Although we derive a significant portion of our revenues in U.S. dollars, a portion of our revenues are derived from customers operating in local currencies other than the U.S. dollar. Therefore, devaluation in the local currencies of our customers relative to the U.S. dollar could cause our customers to cancel or decrease orders or to delay payment, which could have a negative impact on our revenues and results of operations. We are also subject to other foreign currency risks including repatriation restrictions in certain countries, particularly in Latin America, Asia Pacific and in Africa or significant costs in converting local currencies to U.S. dollars. See the risk of “Due to the volume of our sales in emerging markets, we are susceptible to a number of political, economic and regulatory risks that could have a material adverse effect on our business, reputation, financial condition and results of operations”.

A substantial portion of our operating expenses are denominated in NIS, and to a lesser extent, other non-U.S. dollar currencies. Our NIS-denominated expenses consist principally of salaries and related costs as well as other related personnel expenses. In addition, our lease and Israeli facility-related expenses and certain engagements with other Israeli vendors are denominated in NIS as well. We anticipate that a portion of our expenses will continue to be denominated in NIS. Devaluation of the U.S. dollar against the NIS, as experienced in recent months, could have a negative impact on our results of operations.

We used, and may use in the future, derivative financial instruments, such as foreign exchange forward contracts, to mitigate the risk of changes in foreign exchange rates on our balance sheet accounts in various currencies and also to hedge our forecasted NIS denominated cash flows. Each type of derivative instrument may have different effect on our financial statements as explained in Note 2.q to our Consolidated Financial Statements. We do not use derivative financial instruments or other “hedging” techniques to cover all our potential exposure and may not purchase derivative instruments that adequately insulate us from foreign currency exchange risks. In some countries, we are unable to use “hedging” techniques to mitigate our risks because hedging options are not available for certain government restricted currencies. Moreover, derivative instruments are usually limited in time and as a result, cannot mitigate currency risks for the longer term. During 2025, we incurred losses in the amount of $2.0 million as a result of exchange rate fluctuations that have not been fully offset by our hedging policy. The volatility in the foreign currency markets may make it challenging to hedge our foreign currency exposures effectively.

In some cases, we may face regulatory, tax, accounting or corporate restrictions on money transfer from the country from which consideration should have been paid to us (or to our respective selling subsidiary) or revenues could have accumulated and allocated to us or could face general restrictions on foreign currency transfer outside of such country. Inability to collect and receive amounts that are already due and payable, could have a negative impact on our results of operations.

We are expanding our service and software offerings into new areas and entering new market fields, which present distinct operational, execution, and market challenges that could result in significant losses and adversely affect our business, financial condition, and operating results. Until such expansions mature, our continued concentration in a single market domain increases our sensitivity to demand fluctuations, which could negatively impact on our financial performance.

We are expanding the services we offer to new areas including managed services and software-based tools and services (including SaaS solutions) to support design, implementation, operation, monitoring and maintenance of wireless communication networks. These new offerings pose significant product development, marketing, sales, operation, implementation and support challenges. The fundamental risk lies in whether we can successfully execute these new initiatives and achieve the capabilities needed to succeed in these areas. Software solutions carry inherent risks such as cybersecurity vulnerability, unexpected integration challenges, debugging requirements, and underpricing. New products are more prone to bugs and software failures, which may adversely affect our ability to ramp up this activity, meet customer commitments, or satisfy customer expectations, and may cause us to incur additional costs or expose us to penalties. There is no assurance that we have successfully forecasted market trends and needs, that markets will accept our solutions as anticipated, or that we will achieve our revenue targets in these fields.

We are also expanding into new market fields, including the private networks market, to diversify our operations and customer base. These new market fields are characterized by longer sales and implementation cycles, which can be compounded by the fact that these solutions are new for our customers as well, potentially resulting in prolonged decision-making processes and delayed revenue realization. This expansion involves risks including uncertain market acceptance, brand development challenges, the need to expand customer service capabilities, regulatory compliance requirements, increased competition from established players, and substantial sales and marketing efforts with uncertain effectiveness. If we invest substantial time and resources into such expansion and are unable to achieve the desired results, our business, financial condition, and operating results could be adversely affected.

Although we have updated our strategy to focus on the private networks field and software-based solutions and managed services, which we believe will make our Annual Recurring Revenues (ARR) more meaningful, it will take time for these initiatives to materialize and mature. Until recently, we focused primarily on the "best-of-breed" segment of the wireless transport market, and we remain more sensitive to reductions in demand for point-to-point wireless transport products compared to companies with more diversified product lines.

If this market segment or service providers enter a negative cycle, or our market share shrinks before our new business strategy is fully implemented, our sales and revenues may decline, and our results of operations and cash flow may be significantly and adversely affected. If decreased demand for our specific technology is not offset by mature new offerings, we may need to take cost reduction measures that could adversely impact our research and development, operations, marketing and sales activities, and our ability to compete effectively.

Developing and commercializing new products may not be successful and could adversely affect our business, financial condition, and operating results, and if we fail to timely develop and market new products that keep pace with technological developments, changing industry standards, and our customers' needs, we may lose market share or may not be able to sustain our business.

Our business performance depends on our ability to develop and successfully commercialize new products. The development of new products, such as our new SoC-based products, is a highly speculative endeavor and may not be adequately forecasted. There can be no assurance that we will be successful in bringing any new products to market or that such products will generate revenues sufficient to justify our investments or achieve the desired profitability.

The wireless transport equipment industry is characterized by rapid technological developments, changing customer needs that expect increases in product performance, evolving industry standards, and increasing pressure to produce more cost-effective products. These rapid technological developments could either render our products obsolete or require us to modify our products, necessitating significant investment, both in time and cost, in new technologies, products, and solutions. Our success depends on our ability to maintain an agile infrastructure capable of adapting to such changes in a timely manner, but we cannot assure you that any such development or production ramp-up will be completed in a timely or cost-effective manner, or how the market will receive or adopt our products compared to our competitors' products. We consider the wireless market transition from 4G to 5G technologies to be one of our main growth engines in the foreseeable future. If our competitors or new market entrants develop products for this market that are, or are perceived to be, more advantageous to our customers from a technological or financial perspective, or if they introduce and market their products prior to us doing so, they may be able to better position themselves in the market, and we may lose potential or existing market share, which could have a material adverse effect on our business, financial results, and financial condition.

We are continuously seeking to develop new products and enhance our existing products. In 2024, we expanded our product portfolio of the IP-50 family with the new IP-50CX and IP-50EX. We also penetrated and improved the Siklu by Ceragon product line (Etherhaul and Multihaul family), which is intended to deliver solutions to various use cases in the private networks domain. In 2025, we significantly expanded our E-band portfolio with three new products that allow us to offer suitable products in this important field. In addition, we have released two new indoor devices that enhance our offering in the Split-Mount field. Furthermore, in 2025 we launched our new SoC-based IP-100E platform, the 25Gbps E-band radio. However, the mass production and productization of the IP-100E platform is planned for late 2026, and therefore, we do not expect significant commercialization of the IP-100E platform before that time. Any delays in the launch of new SoC-based products may cause us to lose our competitive advantage. Our market is also characterized by a growing demand for more sophisticated and rich software-based capabilities within the network IP layer (layer 3 routing/MPLS), some of which may require us to utilize and embed additional components, either in hardware or software (including third-party software), in the solutions we provide. We cannot assure you that we will continue to be successful in providing these necessary software-based capabilities in a cost-effective manner, which could affect our business performance. Additionally, we have established technological cooperation with third parties to address some of these capabilities, but we cannot assure that such cooperation will be successful or achieve the expected results. If such cooperation is not successful, we will have to consider other alternatives, and such investigation and entering into new cooperation in lieu of the failed ones might cause a delay in the introduction of such capabilities.

The process of developing new products is lengthy, complex, and uncertain, requiring significant research, development, and testing, all of which may fail to result in viable products. Our R&D efforts may not yield new products that can be commercialized, and there is a risk that new products may not achieve market acceptance if our target markets are not receptive to our new products or competitors offer superior or more cost-effective alternatives. We cannot assure that we will successfully forecast technology trends or that we will anticipate innovations made by other companies and respond with our own innovation in a timely manner, which could affect our competitiveness in the market. There is also the risk associated with protecting new intellectual property and potential infringement upon the intellectual property rights of others, and if we cannot adequately protect our intellectual property or if we infringe upon the rights of others, our competitive position may suffer.

We may encounter difficulties in scaling up production to meet demand, including problems involving production yields, quality control and assurance, and shortages of essential components. There could be pricing pressure from competitors and difficulty in obtaining adequate reimbursement for new products, which could affect their profitability. New products are also susceptible to defects, which could lead to liability and harm our reputation. In addition, new products and new versions of existing products are more prone to technical problems which may, among other things, adversely affect our ability to ramp up and to meet delivery commitments to our customers in a timely manner, and may cause us to incur additional manufacturing, development, and repair costs.

The failure to successfully develop, produce, market, and sell new products could have a material adverse effect on our business, financial condition, and results of operations. Even if our new products are successful, they may not generate revenues sufficient to justify our investments, and we may not achieve the desired profitability in selling these products.

If we fail to attract or retain qualified and skilled “talents” and personnel, our business, operations and product development efforts may be materially adversely affected.

Our products require sophisticated research and development, marketing and sales, and technical customer support. Our success depends on our ability to attract, train and retain qualified personnel in all these professional areas while also taking into consideration varying geographical needs and cultures. We compete with other companies for personnel in all of these areas, both in terms of profession and geography, and we may not be able to hire sufficient personnel to achieve our goals or support the anticipated growth in our business. The market for the highly trained personnel we require globally is competitive, due to the limited number of people available with the necessary technical skills and understanding of our products and technology. We experience competition on talent, predominantly among R&D and technological personnel, or employees having experience or expertise in high-tech and traded companies.

As the demand for qualified and highly skilled personnel is in constant demand, our ability to retain existing “talents” and recruit new ones is becoming more challenging. Consequently, we may have to face with increasing employment costs for existing and new personnel in professions characterized with high demand, and might have to increase our equity-based long-term incentive programs, which in turn could result in the dilution of our shareholders due to the exercise of such rights. Loss of senior level “talents”, including as a result of recent organizational changes, may cause delays in our development efforts and operational challenges as well as shortage in, and loss of, knowhow, knowledge, domain expertise and capabilities which cannot always be immediately mitigated.

These risks are heightened in light of the recently initiated restructuring of our human resources and employee structure, including the establishment of new research and development centers in additional countries and management personnel shifting and organizational changes. Integrating new employees and establishing new research and development centers, particularly in countries where we have limited operating experience, poses substantial management and operational challenges. Furthermore, our ability to realize the benefits of our new research and development centers hinges on recruiting a substantial number of qualified employees in countries where these facilities are being established. We may face competition for talent in these markets, and there is no guarantee we will be successful in attracting and retaining the necessary skilled workforce. The restructuring process and the assimilation of a new workforce may cause disruptions to our existing operations and human resources management. Failure to manage these factors and disruptions could lead to higher attrition rates, decrease in employee morale, and a loss of productivity.

If we fail to attract and retain qualified personnel due to compensation or other factors, or to manage or successfully perform in the above human resources related projects and disruptions, our business, operations and product development and cost reduction efforts would suffer.

We are engaged in providing installation or rollout projects for our customers and end users, whether directly or via third party prime contractor, which are long-term projects that are subject to inherent risks, including early delivery of our products with delayed payment terms, which expose us to our customers’ default, insolvency, or other adverse effects on our customers’ ability to pay us, delays or failures in acceptance testing procedures and other items beyond our control, all of which could have a material adverse effect on our results of operations or financial condition.

Our offering includes long term projects for our customers and end-users, such as the networks rollout, managed services, and related projects, whether directly or via a third party prime contractor. Some of those projects are characterized by providing customers’ credit and long payment terms. This has an adverse effect on our working capital and exposes us to the risks of default, insolvency, or other adverse effect on the customer’s ability to pay us. Although we hedge or insure some of those risks, the entire exposure cannot be covered. This may result in significant losses and may adversely affect our financial results.

In certain projects, we serve as an integrator and prime contractor of end-to-end rollout projects, which include installation and other services for our customers. In this context, we may act as the prime contractor and equipment supplier for network build-out projects, providing installation, supervision and commissioning services required for these projects, or we may provide such services and equipment (or part thereof) for projects handled by others, primarily system integrators.

These rollout projects often require us to deliver products and services representing an important portion of the contract price before receiving any significant payment from the customer, as significant amounts are to be paid by our customers over time, which expose us to our customers’ default, insolvency, or other adverse effects on our customers’ ability to pay us. In cases where we do not serve as prime contractors as aforesaid, and acting as subcontractors to a prime contractor, and the full project is handled by others, even if we have delivered to our commitments, there is a risk that we will not be able to receive payments in a timely fashion due to failure or default on part of the prime contractor or other issues which are not related to the performance of our portion of the project, causing payment delays by the end customers. Therefore, rollout projects could cause us to experience significant collection issues and as a result substantial period-to-period fluctuations in our results of operations, cash flow and financial condition.

Once a purchase order has been executed, the timing and amount of revenue may remain difficult to predict. The completion of the installation and testing of the customer’s networks and the completion of all other suppliers’ network elements are subject to the customer’s timing and efforts, and other factors outside our control, such as site readiness for installation or availability of power and access to sites, which may prevent us from making predictions of revenue with any certainty.

Also, as we usually engage subcontractors, third party service providers and temporary employees to perform a significant part of the work (such as installation, supervision, on-site testing, commissioning, repair and replacement services), we are dependent on such service providers’ and temporary employees’ timely and quality performance, including with respect to the fulfillment of or default under their back-to-back obligations to those we may have undertaken vis-à-vis our customers, as well as pricing that may fluctuate significantly due to various factors. All these factors may affect our ability to accurately project our costs and profits in providing these services and may result in significant deviations from our projections, which may adversely affect our financial results. In addition, we may be subject to other risks that may apply to our subcontractors or associated with their businesses.

In some of these projects, we may need to provide bank guarantees to ensure successful completion of the rollout services, to secure an advance payment we have received, in case we fail to meet our obligations, or to secure our warranty obligations. As a result, in these projects we assume greater financial risk.

In addition, typically in rollout projects, we are dependent on the customer to issue acceptance certificates to generate and recognize revenue. In such projects, we bear the risks of loss and damage to our products until the customer has issued an acceptance certificate upon successful completion of acceptance tests. Moreover, we are not always the prime integrator in these projects and in such cases, the acceptance may be delayed even further since it depends on the acceptance of other network elements not in our control. The early deployment of our products during a long-term project reduces our cash flow, as we generally collect a significant portion of the contract price after successful completion of an acceptance test. If our products are damaged or stolen, if the network we install does not pass the acceptance tests or if the customer does not or will not issue an acceptance certificate, the end user or the system integrator could refuse to pay us any balance owed and we would incur substantial costs, including fees owed to our installation subcontractors, increased insurance premiums, transportation costs and expenses related to repairing or manufacturing the products. In such a case, we may not be able to repossess the equipment, thus suffering additional losses.

Our service offering includes full design and implementation of wireless communication networks, while also using technologies of third-party vendors. The complexity of such projects and the reliance on third parties’ performance is increasing the risk of not meeting our performance obligations. As a result, the completion of such projects may be delayed, or the outcome may not be to the full satisfaction of the customer, who may in turn, impose penalties or exercise any other remedy available to customers in the service contract. In addition, the cost of such projects may be higher than planned. This may result in significant losses and may adversely affect our financial results.

We are exposed to risks associated with integrating AI tools into our products, solutions, and operations.

Ceragon integrates artificial intelligence and machine learning ("AI/ML") technologies into two key areas of its business: (i) our products and solutions, such as network optimization and predictive maintenance tools; and (ii) our internal operations, where employees use AI/ML, including Generative AI, to support decision-making and workflow efficiency. We also rely on AI/ML models hosted or developed by third-party providers. These technologies are subject to the risks and uncertainties described below, many of which are beyond our control. Any of these risks, alone or in combination, could have a material adverse effect on our business, financial condition, and results of operations.

Our future success depends in part on our ability to integrate AI/ML technologies effectively into our products, solutions, including network planning, deployment, optimization, and maintenance. The market for AI-enhanced solutions in our industry is evolving rapidly. If our competitors adopt AI/ML more quickly or more successfully than we do, our competitive position could be impaired. Likewise, if we fail to adopt AI/ML within our operation in a timely and effective manner, our operational efficiency, service quality, and competitiveness could suffer. In addition, adopting and maintaining AI/ML technologies may require significant capital expenditures and increase operational costs due to computing demands, infrastructure requirements, and the need for specialized expertise, and there can be no assurance that such investments will yield the anticipated benefits or a positive return.

The deployment of AI/ML technologies, whether by us or by our vendors, subcontractors, or other third parties on whom we rely, introduces inherent and evolving risks of misuse, error, and noncompliance. AI/ML models may produce biased, flawed, incomplete, or inaccurate outputs, some of which may appear correct. This may occur if the inputs that the model relied on were themselves inaccurate, incomplete, or flawed - including if a bad actor "poisons" the AI/ML with bad inputs or logic - or if the underlying logic of the model is flawed. If we or our personnel rely on such outputs without adequate human oversight, the consequences could include faulty network optimizations, poor decision-making, or harm to our customers or their networks. Any failure of our AI/ML technologies to perform as intended could adversely affect our business and results of operations, damage our reputation, erode customer confidence, and expose us to liability. We may also incur substantial costs defending or settling litigation or regulatory proceedings related to the use of AI/ML, including as a result of flawed outputs, alleged intellectual property infringement, or violations of applicable law.

The use of AI/ML also creates data privacy, cybersecurity, confidentiality, and intellectual property risks that may not be fully predictable. Sensitive information we input into a third-party AI/ML platform could be leaked or disclosed to others - for example, if the third party uses that information to train its models. AI/ML models may also infer or reveal additional sensitive information based on data they have ingested. We may not be able to fully monitor or control how third-party providers process, store, or use data inputted into their AI/ML platforms, and any failure by such providers to adequately safeguard our data could expose us to significant liability.

The legal and regulatory landscape surrounding AI is rapidly evolving and remains uncertain. Changes in legal or regulatory frameworks surrounding AI usage, including the adoption of new or more restrictive laws, regulations, or industry standards, may pose compliance risks, increase our costs, or limit our ability to develop, deploy, or benefit from these technologies. Many U.S. federal and state and foreign government bodies and agencies have introduced or are currently considering additional laws and regulations governing the use of AI technologies. Any such changes could require us to expend significant resources to modify our products, solutions, business processes, or operations to ensure compliance or remain competitive, and could expose us to fines, penalties, or other enforcement actions in the event of non-compliance. We cannot predict the timing, scope, or impact of future regulatory developments, and there is no assurance that we will be able to adapt to such changes in a timely or cost-effective manner.

We are subject to various regulations and standards relating to data privacy and security. Failure to comply with any applicable privacy, security, data protection laws, regulations, standards or other requirement could have an adverse effect on our business prospects, results of operations, and financial condition.

As a public company with significant operations in Israel, the United States, Europe and many other countries, we are subject to regulation and must comply with reporting and other requirements in a number of jurisdictions, and may from time to time be reviewed and investigated by the relevant authorities. As such reviews progress, the regulating agencies may determine that we are and have been in compliance with applicable rules, or they may determine to pursue enforcement actions or other sanctions against us for alleged noncompliance. The regulatory framework for data and privacy protection issues is rapidly evolving worldwide. Comprehensive data protection laws, including the General Data Protection Regulation (GDPR), imposes stricter obligations and provides for greater penalties for noncompliance. Additionally, laws in all 50 U.S. states require businesses to provide notice to parties whose personally identifiable information has been disclosed as a result of a data breach. The laws are not consistent, and compliance in the event of a widespread data breach is costly. In addition, failure to comply with the Israeli Privacy Protection Law 1981 and its regulations (PPL), as well as the guidelines of the Israeli Privacy Protection Authority, may expose us to administrative fines, civil claims (including class actions) and, in certain cases, criminal liability. In August 2025, a comprehensive amendment to the PPL became effective. This amendment enhanced the Israeli Privacy Protection Authority’s enforcement powers, granting it significant authority to impose administrative fines for non-compliance. The amendment also introduced broader oversight capabilities, alongside mechanisms for monitoring adherence to privacy guidelines, thereby heightening the compliance requirements for organizations that handle personal data in Israel. As a result, there has been a noticeable increase in enforcement activity by the Privacy Protection Authority in this area. While we have invested in, and intend to continue to invest in, reasonably necessary resources to comply with these evolving privacy standards, to the extent that we fail to adequately comply, that failure could have an adverse effect on our business, financial conditions, results of operations and cash flows.

We are subject to complex and evolving regulatory requirements that may be difficult and expensive to comply with and that could adversely impact our business, results of operations and financial condition.

Our business and operations are subject to regulatory requirements in Israel and in other jurisdictions where we operate or where our subsidiaries’ offices are located, including, among other things, with respect to government contracts, global trade compliance, export controls, trade sanctions, labor, tax, anti-bribery, anti-corruption, and data privacy and protection. In addition, certain countries have put regulations in place requiring local manufacturing of goods, while foreign-made products are subject to pricing penalties or even bans from participation in public procurement auctions. Compliance with these regulatory requirements may be onerous, time-consuming, and expensive, especially where these requirements vary from jurisdiction to jurisdiction or where the jurisdictional reach of certain requirements is not clearly defined or seeks to reach across national borders. Regulatory requirements in one jurisdiction may make it difficult or impossible to do business in another jurisdiction. Moreover, the cross-border nature of our business operations may trigger not only a responsibility to comply with Israeli trade compliance and export control legislation but also a responsibility to comply with certain applicable foreign trade and export control regulations. Certain of such requirements may also vary from the jurisdiction in which we operate to jurisdictions in which our suppliers, customers or resellers are operating. If we or our suppliers fail to obtain any required export licenses, or where existing licenses are revoked or become subject to export restrictions, our ability to manufacture, market and sell our products and services could be adversely affected, all of which could have a material adverse effect on our results of operations or financial condition.

Additionally, we may be limited in our ability to transfer or outsource certain aspects of our business to certain jurisdictions, and may be limited in our ability to undertake research, development, or sales activities in certain jurisdictions, or we may be unsuccessful in obtaining permits, licenses or other authorizations required to operate our business, such as for the marketing, sale, import or export of products, solutions and services, which may adversely affect our business, operations and results. We rely on a global supply chain and on certain marketing channels that may be similarly affected by these regulatory requirements. We cannot assure you that despite our efforts we will be able to successfully or effectively assure that all of our suppliers, agents and resellers will adhere, or will succeed in making sure that their suppliers or customers adhere, to the regulatory requirements that flow down to them. Further, these regulatory requirements are subject to change and governments around the world are adopting a growing number of compliance and enforcement initiatives. In particular, the pace and scope of changes to global trade control regulations has increased dramatically over the past years, in multiple jurisdictions relevant to our business. These regulations may continue to increase and change at an unusually rapid pace. It has been and may continue to be increasingly difficult to keep up with the pace and scope of these changes. Violations of applicable laws or regulations, including by our officers, employees, contractors or agents, may harm our reputation and deter governments and governmental agencies and other existing or potential customers or partners from purchasing our solutions. Furthermore, non-compliance with applicable laws or regulations could result in fines, damages, civil penalties, or criminal penalties against us, our officers or our employees, restrictions on the conduct of our business, and damage to our reputation. While we make efforts to comply with such regulatory requirements, we cannot assure you that we will be fully successful in our efforts, or that that regulatory changes will not negatively affect our ability to develop, manufacture and sell the products, solutions and services we offer.

Our business is subject to numerous laws and regulations designed to protect the environment, and the failure to comply with current or future environmental requirements could expose the Company to criminal, civil and administrative charges.

Our business is subject to numerous laws and regulations designed to protect the environment, including with respect to discharge management of hazardous substances. Although we believe that we comply with these requirements and that such compliance does not have a material adverse effect on our results of operations, financial condition or cash flows, the failure to comply with current or future environmental requirements could expose the Company to criminal, civil and administrative charges. Due to the nature of our business and environmental risks, we cannot provide assurance that any such material liability will not arise in the future.

Our wireless communications products emit electromagnetic radiation. While we are currently unaware of any negative effects associated with our products, there has been publicity regarding the potentially negative direct and indirect health and safety effects of electromagnetic emissions from wireless telephones and other wireless equipment sources, including allegations that these emissions may cause cancer. Health and safety issues related to our products may arise that could lead to litigation or other actions against us or to additional regulation of our products, and we may be required to modify our technology without the ability to do so. Even if these concerns prove to be baseless, the resulting negative publicity could affect our ability to market these products and, in turn, could harm our business and results of operations. Claims against other wireless equipment suppliers or wireless service providers could adversely affect the demand for our transport solutions.

Some of the regions where we operate may be more susceptible to political and economic instability, such as the Middle East. The recent escalation of hostilities involving Israel, Iran, the United States and other regional actors, including military operations referred to by Israel as “Operation Roaring Lion” and by the United States as “Operation Epic Fury,” has increased geopolitical uncertainty and could result in military escalation, disruptions to shipping and energy markets, restrictions on trade or travel, and broader economic instability. Additionally, ongoing conflicts addition regions relevant to our activities could result in a loss of sales and business in such regions, and may prevent us from participating in certain governmental and private tenders or other competitive procurement procedures. The invasion of Ukraine by Russia has had numerous adverse effects on the global and European markets in which we operate. Sanctions and export controls imposed by the U.S. U.K. and E.U. countries significantly limit trade with Russia-related entities and individuals. Furthermore, as Russia is a global source of raw materials, oil and gas and additional goods and commodities, the ongoing war and hostility also disrupts the supply of these resources (in addition to the imposition of sanctions and embargoes), causes price increases, shortage, disruption to deliveries, shipping and transportation. These disruptions are reflected both in price increases and shortages impacting our contract manufacturers and suppliers, and adversely affect our production and supply chain costs and timelines.

The international environment in which we operate is affected by international trade agreements and tariffs. As a result of recent revisions in the U.S. administrative policy there are, and may be additional, changes to existing trade agreements, greater restrictions on free trade and significant increases in tariffs on goods imported into the United States. Therefore, there is current uncertainty about the future relationship between the United States and other countries with respect to trade policies, taxes, government regulations, and tariffs, and we cannot predict whether, and to what extent, U.S. trade policies will change in the future. Future actions of the U.S. administration and that of foreign governments, with respect to tariffs or international trade agreements and policies, remain currently unclear.

The duration, severity and global implications (including potential inflation and devaluation consequences) of these and other geopolitical conflicts that may arise in the future, cannot be predicted at this time and could have an effect on our business, exchange rate exposure, supply chain, operational costs and commercial presence in these markets.

Significant portions of our operations are conducted outside the markets in which our products are sold, and accordingly we often import a substantial number of products into such markets. We may, therefore, be denied access to our customers or suppliers or denied the ability to ship products as a result of a closing of the borders of the countries in which we sell our products, or in which our or our suppliers’ operations are located, due to economic, legislative, political and military conditions, including hostilities and acts of terror, in such countries.

Our corporate headquarters and a portion of our manufacturing activities are located in Israel. Our Israeli operations are dependent upon materials imported from outside Israel. Accordingly, our operations and information technology systems could be materially and adversely affected by acts of terrorism, including through cybersecurity threats, or if trade between Israel and its present trading partners were materially impaired due to escalating hostilities in the Middle East, including as a result of acts of terrorism in the United States or elsewhere. The recent escalation of hostilities involving Israel, Iran, the United States, and the military activity and regional conflicts, may result in disruption to our operations and facilities, such as our manufacturing and R&D facilities located in Israel, and impact our employees, some of which are military reservists being called to active military duty, and impact the economic, social and political stability of Israel.

Our products and certain components they are comprised of are subject to certain export controls and sanctions regimes that could adversely impact our competitive position and our business

Because we incorporate encryption functionality into our products, they are currently subject to Israeli export controls. Some of our products may also be subject to similar export controls in other jurisdictions relevant to our operations, which place certain licensing requirements on some of our exports and limit our marketing possibilities. In addition, export controls and related regulations in jurisdictions from which we source components may limit or delay our ability to obtain certain components necessary for our products, as these might be deemed sensitive our restricted, or may require us to obtain particular licenses, and any delays or failures in obtaining such components or mandatory licenses could cause us to lose business opportunities or otherwise disrupt our operations. For example, components incorporating encryption functionality may require export licenses from the jurisdictions in which they are manufactured. Additional limitations on the sales and servicing of our products apply through U.S. economic sanctions and other similar sanctions regimes that may be applicable to our global operations. If we fail to comply with appliable sanctions or licensing requirements we could be subject to substantial civil and criminal penalties, loss of export privileges, and loss of certain business partners. Obtaining export licenses for some of our sales may be time consuming and may result in loss of sales opportunities. Furthermore, even though we take precautions, the pace of changes, the complexity, and the immediate effect of the sanctions and export controls pose a risk of failure to timely respond, adjust, implement or comply therewith. Among other things Israel has recently changed its regulatory framework for the export control of items with encryption functionality, and this new framework may increase our regulatory burden with respect to certain export activities related to our products.

Additional tax liabilities could materially adversely affect our results of operations and financial condition.

As a global corporation, we are subject to income and other taxes both in Israel and in various foreign jurisdictions including indirect as well as withholding taxes, and significant judgment is required in determining our provision for income taxes. Our domestic and international tax liabilities are subject to the allocation of revenues and expenses in different jurisdictions and differentiation in the timing of recognizing revenues and expenses. Our tax expense includes estimates or additional tax, which may be incurred for tax exposures and reflects various estimates and assumptions, including assessments of our future earnings that could impact the valuation or recognition of our deferred tax assets. From time to time, we are subject to income and other tax audits, the timing of which is unpredictable. Our future results of operations could be adversely affected by changes in our effective tax rate as a result of a change in the mix of earnings in countries with differing statutory tax rates, changes in our overall profitability, changes in local tax legislation and rates, changes in tax treaties, changes in international tax guidelines (such as the OECD Base Erosions and Profit Shifting project – known as BEPS), changes in generally accepted accounting principles, changes in the valuation or recognition of deferred tax assets and liabilities, the results of audits and examinations of previously filed tax returns and continuing assessments of our tax exposures. While we believe we comply with applicable tax laws, there can be no assurance that a governing tax authority will not have a different interpretation of the law and impose additional taxes. In 2025 we received two tax assessments from local tax authorities in two territories in which we operate. The Company is in the process of challenging such new assessments, however if these tax assessments are accepted, we may be required to pay penalties in addition to the specific tax payment demand. Although we believe our estimates are reasonable, the ultimate outcome of tax audits, assessments and related litigation could be different from our provision for taxes including the reserve provided for uncertain tax positions and may have a material adverse effect on our consolidated financial statements and cash flows. Should we be assessed with additional taxes, there could be a material adverse effect on our results of operations and financial condition.

Due to the volume of our sales in emerging markets, we are susceptible to a number of political, economic and regulatory risks that could have a material adverse effect on our business, reputation, financial condition and results of operations. This includes the business practices in such emerging markets, that may expose us to legal and business conduct-related regulatory risks.

A majority of our sales are made in emerging economies in Latin America, India, Asia Pacific and Africa. For each of the years ended December 31, 2025 and 2024, sales in these regions accounted for approximately 57% and 63% of our revenues, respectively. As a result, the occurrence of international, political, regulatory or economic events in these regions could adversely affect our business and result in significant revenue shortfalls and collection risk. Any such revenue shortfalls and/or collection risks could have material adverse effects on our business, financial condition and results of operations. Furthermore, other governmental action related to tariffs or international trade agreements, changes in U.S. social, political, regulatory and economic conditions or in laws and policies governing foreign trade, manufacturing, development and investment in the territories and countries, where our customers are located, could adversely affect our business, financial condition, operating results and cash flows.

Below are the main risks and challenges that we face as a result of operating in emerging markets:

•

unexpected or inconsistent changes in regulatory requirements, including security regulations, licensing and allocation processes;

•

unexpected changes in or imposition of tax, tariffs, customs levies or other barriers and restrictions;

•

fluctuations in foreign currency exchange rates;

•

restrictions on currency and cash repatriation;

•

the burden of complying with a variety of foreign laws, including foreign import restrictions which may be applicable to our products;

•

difficulties in protecting intellectual property;

•

laws and business practices favoring local competitors;

•

collection delays and uncertainties;

•

difficulties in transferring or obtaining funds from certain countries within these emerging markets;

•

requirements to do business in local currency; and

•

judicial systems that do not apply the principles of natural justice with regard to disputes with foreign nationals.

In addition, local business practices in jurisdictions in which we operate, and particularly in emerging markets, may be inconsistent with international regulatory requirements, such as anti-corruption and anti-bribery laws and regulations, to which we are subject. It is possible that, notwithstanding our strict policies and in violation of our instructions, employees of ours, subcontractors, agents or business partners may violate such legal and regulatory requirements, which may expose us to criminal or civil enforcement actions. If we fail to comply with or effectively enforce such legal and regulatory requirements, our business and reputation may be harmed, and we might be exposed to civil and criminal penalties or sanctions.

All of these risks could result in increased costs or decreased revenues, either of which could have a materially adverse effect on our profitability.

An industry downturn, reduction in our customers’ profitability due to increased regulation or new mobile services requirements, may cause investments in networks to slow, be delayed or stop, which could harm our business.

We are exposed to changing network models that affect operator and government spending on infrastructure as well as trends in investment cycles of telecom operators and other service providers. The changes include but are not limited to: (i) further expansion of coverage; expansion out of metro, as well as other urban and suburban areas to rural areas; (ii) densification and optimization of the 4G networks to provide faster speeds; (iii) introduction of 5G services as well as expansion and densification of the 5G networks; and (iv) 2G and/or 3G networks shutdown, which is already taking place and designed to free spectrum for the delivery of 5G services.

We are also exposed to private networks investment coming from businesses, governmental entities and other public domains. Private networks can be an alternative to the Public Networks and may alternatively support owners’ objectives, such as coverage, capacity, speed, security, and others. The demand for investments in private networks is dynamic and slowdown or delay in such investments may have an adverse effect on our business, operating results and financial condition.

The proliferation of strategic options for service providers, as outlined above, coupled with uncertain development path and clarity as to the future standards and mass-market use cases, may cause service providers to prolong evaluations of services and network strategies, resulting in slower and smaller budget spent in the next several years, which may negatively affect our business. In addition, the intensification of use of “over-the-top services” - which make use of the operators’ network to deliver rich content to users but do not generate revenue to operators - is causing operators to lose a substantial portion of their potential revenues. In addition, changes in regulatory requirements in certain jurisdictions around the world are allowing smaller operators to enter the market, which may also reduce our customers’ pricing to their end-users, further causing them to lose revenues. This has made operators more careful in their spending on infrastructure upgrades and buildouts.

As a result, operators are looking for more cost-efficient solutions and network architectures, which will allow them to break the linearity of cost, coverage, capacity and costs of service delivery through more efficient use of existing infrastructure and assets. If operators fail to monetize new services, fail to introduce new business models or experience a decline in operator revenues or profitability, their willingness or ability to invest further in their network systems may decrease, which will reduce their demand for our products and services and may have an adverse effect on our business, operating results and financial condition.

Our sales cycles in connection with competitive bids or to prospective customers are lengthy.

It typically takes from three to eighteen months after we first begin discussions with a prospective customer, before we receive an order from that customer, if an order is received at all. In some instances, we participate in competitive bids, in tenders issued by our customers or prospective customers, and these tender processes can continue for many months before a decision is made by the customer. In addition, even after the initial decision is made, there may be a lengthy testing and integration phase or contract negotiation phase before a final decision to purchase is made. In some cases, even if we have signed a contract and our products were tested and approved for usage, it could take a significant amount of time until the customer places purchase orders, if at all. As a result, we are required to devote a substantial amount of time and resources to secure sales. In addition, the lengthy sales cycle results in greater uncertainty with respect to any particular sale, as events that impact customers’ decisions occur during such cycle and in turn, increase the difficulty of forecasting our results of operations and may cause an increase in inventory levels and our liability to our suppliers, and a risk for inventory write downs and write-offs.

If we fail to obtain regulatory approval for our products, or if sufficient radio frequency spectrum is not allocated for use by our products, our ability to market our products may be restricted.

Generally, our products must conform to a variety of regulatory requirements and international treaties established to avoid interference among users of transmission frequencies and to permit interconnection of telecommunications equipment. Any delays in compliance with respect to our future products could delay the introduction of those products. Also, these regulatory requirements may change from time to time, which could affect the design and marketing of our products as well as the competition we face from other suppliers’ products, which may not be affected as much from such changes. Delays in the allocation of new spectrum for use with wireless transport communications, such as the E, V, D and W bands in various countries, at prices which are competitive for our customers, may also adversely affect the marketing and sales of our products.

In addition, in most jurisdictions in which we operate, users of our products are generally required to either have a license to operate and provide communications services in the applicable radio frequency or must acquire the right to do so from another license holder. Consequently, our ability to market our products is affected by the allocation of the radio frequency spectrum by governmental authorities, which may be by auction or other regulatory selection. These governmental authorities may not allocate sufficient radio frequency spectrum for use by our products. We may not be successful in obtaining regulatory approval for our products from these authorities and as we develop new products either our products or some of the regulations will need to change to take full advantage of the new product capabilities in some geographies. Historically, in many developed countries, the lack of available radio frequency spectrum has inhibited the growth of wireless telecommunications networks. If sufficient radio spectrum is not allocated for use by our products, our ability to market our products may be restricted, which would have a materially adverse effect on our business, financial condition and results of operations. Additionally, regulatory decisions allocating spectrum for use in wireless transport at frequencies used by our competitors’ products, could increase the competition we face. In addition, the 5G rollout could be contingent upon the allocation of the radio frequency spectrum by governmental authorities which could cause a delay in the ramp up of those activities.

Other areas of regulation and governmental restrictions, including tariffs on imports and technology controls on exports or regulations related to licensing and allocation processes, could adversely affect our operations and financial results.

Our products are used in critical communications networks, which may subject us to significant liability claims.

Since our products are used in critical communications and private networks, we may be subject to significant liability claims if our products do not work properly. The terms of agreements with our customers do not always provide sufficient protection from liability claims. In addition, any insurance policies we have may not adequately cover our exposure with respect to such claims. We warrant to our current customers that our products will operate in accordance with our product specifications, but if our products fail to conform to these specifications, our customers could require us to remedy the failure or could assert claims for damages. Liability claims could require us to spend significant time and money on litigation or to pay significant damages. Such exposure to claims may be heightened in the private networks sector, as a substantial portion of these networks are mission-critical. These include networks operated by electricity companies, oil and gas companies, police departments, and other essential services. An outage in these networks carries a significantly higher business impact and potentially even societal consequences. Any such claims, successful or not, would be costly and time-consuming to defend, and could divert management’s attention and seriously damage our reputation and our business.

Our failure to establish and maintain effective internal control over financial reporting could result in material misstatements in our financial statements or a failure to meet our reporting obligations. This may expose us to fines and damages and cause investors to lose confidence in our reported financial information, which could result in a decline of the trading price of our shares.

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rule 13a-15(f) of the Exchange Act. If we conclude in the future that our internal controls over financial reporting are not effective, we may fail to meet our future reporting obligations on a timely basis, our financial statements may contain material misstatements, our operating results may be negatively impacted, and we may be subject to litigation and regulatory actions, causing investor perceptions to be adversely affected and potentially resulting in a decline in the market price of our shares. Even if we conclude that our internal controls over financial reporting are adequate, any internal control or procedure, no matter how well designed and operated, can only provide reasonable assurance of achieving desired control objectives and cannot prevent all mistakes or intentional misconduct or fraud.

We could be adversely affected by our failure to comply with the covenants in our credit agreement or by the failure of any bank to provide us with credit under committed credit facilities.

We have a committed credit facility available for our use from a syndicate of several banks. Our credit agreement contains financial and other covenants. Any failure to comply with the covenants, including due to poor financial performance, may constitute a default under the credit facility, which may have a material adverse effect on our financial condition. In addition, the payment may be accelerated, and the credit facility may be cancelled upon an event, in which a current or future shareholder acquires control (as defined under the Israeli Securities Law) of us. For more information, please refer to Item 5: “OPERATING AND FINANCIAL REVIEW AND PROSPECTS; B. Liquidity and Capital Resources.”

In addition, the credit facility is provided by the syndication with each bank agreeing severally (and not jointly) to make its agreed portion of the credit loans to us. If one or more of the banks providing the committed credit facility were to default on its obligation to fund its commitment, the portion of the committed facility provided by such defaulting bank would not be available to us.

In the event that the credit facility is terminated in accordance with its terms, including due to breach of covenants by us, or if it is not renewed and we are not able to secure alternative financing, we could experience distressed cash flow or cash flow challenges that could harm our business operations and prospects, results of operations, cash flow and financial position.

If we are unable to protect our intellectual property rights, our competitive position may be harmed.

Our ability to compete will depend, in part, on our ability to obtain and enforce intellectual property protection for our technology internationally. We currently rely upon a combination of trade secret, patent, trademark and copyright laws, as well as contractual rights, to protect our intellectual property. However, as our patent portfolio may not be as extensive as those of our competitors, we may have limited ability to assert any patent rights in negotiations with, or in counterclaims against, competitors who assert intellectual property rights against us.

We also enter into confidentiality, non-competition and invention assignment agreements with our employees and contractors engaged in our research and development activities, as well as non-disclosure agreements with our suppliers and certain customers so as to limit access to and disclosure of our proprietary information. We cannot assure you that any steps taken by us will be adequate to deter misappropriation or impede independent third-party development of similar technologies. These risks might be more severe in territories in which we have recently established research and development centers. Moreover, under current law, we may not be able to enforce the non-competition agreements with our employees to their fullest extent.

We cannot assure you that the protection provided for our intellectual property by the laws and courts of foreign nations will be substantially similar to the remedies available under U.S. law. Furthermore, we cannot assure you that third parties will not assert infringement claims against us based on foreign intellectual property rights and laws that are different from those established in the United States. Any such failure or inability to obtain or maintain adequate protection of our intellectual property rights, for any reason, could have a material adverse effect on our business, results of operations and financial condition.

Defending against intellectual property infringement claims could be expensive and could disrupt our business.

The wireless equipment industry is characterized by vigorous protection and pursuit of intellectual property rights, which has resulted in often protracted and expensive litigation. We have been exposed to infringement allegations in the past, and we may in the future be notified that we or our vendors, allegedly infringed certain patent or other intellectual property rights of others. Any such litigation or claim could result in substantial costs and diversion of resources. In the event of an adverse result of any such litigation, we could be required to pay substantial damages (including potentially punitive damages and attorney’s fees should a court find such infringement willful), or to cease the use and licensing of allegedly infringing technology and the sale of allegedly infringing products (including those we purchase from third parties). We may be forced to expend significant resources to develop non-infringing technology, obtain licenses for the infringing technology or replace infringing third party equipment. We cannot assure you that we would be successful in developing such non-infringing technology, that any license for the infringing technology would be available to us on commercially reasonable terms, if at all, or that we would be able to find a suitable substitute for infringing third party equipment.

We occasionally use Open Source codes during our development process and in our software products. An unintentional breach of Open Source licenses might compel us to publish certain confidential and proprietary codes, incur damages, and result with intellectual property infringement claims that could be expensive and could disrupt our business.

We occasionally use open source software component under open source licenses. As certain open source copyright licenses may be categorized as “copyleft licenses” that place certain requirements and restrictions on users, we maintain a process to assure the use of permissive licenses that guarantee the freedom to use, modify and redistribute, and creating proprietary derivative works, in order to avoid any limitations on our IPs and exposure of confidential proprietary software. Nonetheless, if we shall not correctly monitor and manage those licenses, fail to maintain their terms (for example, to provide adequate copyright notices, or avoid modifications) or otherwise fail in identifying limited open source codes, we might be subject to third party copyright and to reciprocity obligation requiring us to make our code open for use by others as well. Such claims may harm our development efforts and competitive advantage and expose us to copyright infringement claims that could be expensive and could disrupt our business.

Risks Relating to Our Ordinary Shares

Holders of our ordinary shares who are U.S. residents may be required to pay additional U.S. income taxes if we are classified as a passive foreign investment company (“PFIC”) for U.S. federal income tax purposes.

There is a risk that we may be classified as a PFIC. Our treatment as a PFIC could result in a reduction in the after-tax return for U.S. holders of our ordinary shares and may cause a reduction in the value of our shares. For U.S. federal income tax purposes, we will generally be classified as a PFIC for any taxable year in which either: (1) 75% or more of our gross income is passive income, or (2) at least 50% of the average value (determined on a quarterly basis) of our total assets for the taxable year produce, or are held for the production of, passive income. Based on our analysis of our income, assets, activities and market capitalization, we do not believe that we were a PFIC for the taxable year ended December 31, 2025. However, there can be no assurance that the United States Internal Revenue Service (“IRS”) will not challenge our analysis or our conclusion regarding our PFIC status. There is also a risk that we were a PFIC for one or more prior taxable years or that we will be a PFIC in future years, including 2026. If we were a PFIC during any prior years, U.S. shareholders who acquired or held our ordinary shares during such years will generally be subject to the PFIC rules. The tests for determining PFIC status are applied annually and it is difficult to make accurate predictions of our future income, assets, activities and market capitalization, which are relevant to this determination. If we were determined to be a PFIC for U.S. federal income tax purposes, highly complex rules would apply to U.S. holders owning our ordinary shares and such U.S. holders could suffer adverse U.S. tax consequences.

For more information, please see Item 10. ADDITIONAL INFORMATION – Taxation - “U.S. Federal Income Tax Considerations” – “Tax Consequences if We Are a Passive Foreign Investment Company.”

The price and trading volume of our ordinary shares are subject to volatility. Such volatility could limit investors’ ability to sell our shares at a profit, could limit our ability to successfully raise funds and may expose us to class actions against the Company and its senior executives.

The stock market in general, and the market price of our ordinary shares in particular, are subject to fluctuation. As a result, changes in our share price and trading volumes may be unrelated to our operating performance. In addition, smaller market cap companies have historically been more volatile than stocks of larger companies. The price of our ordinary shares and the trading volumes in our ordinary shares have experienced volatility in the past and may continue to do so in the future, which may make it difficult for investors to predict the value of their investment, to sell shares at a profit at any given time, or to plan purchases and sales in advance. In the two-year period ended December 31, 2025, the price of our ordinary shares has ranged from a high of $5.48 per share to a low of $1.84 per share. A variety of factors may affect the market price and trading volume of our ordinary shares, including:

•

announcements of technological innovations or new commercial products by us or by our competitors;

•

announcement of significant deals won by us or by our competitors;

•

competitors’ positions and other events related to our market;

•

changes in the Company’s estimations regarding forward looking statements and/or announcement of actual results that vary significantly from such estimations;

•

the announcement of corporate transactions, merger and acquisition activities or other similar events by companies in our field or industry;

•

changes and developments effecting our field or industry;

•

period to period fluctuations in our results of operations and cash flow;

•

changes in financial estimates by securities analysts;

•

our earnings releases and the earnings releases of our competitors;

•

our ability to show and accurately predict revenues;

•

our need to raise additional funds and the success or failure thereof;

•

other announcements, whether by the Company or others, referring to the Company’s financial condition, results of operations and changes in strategy;

•

changes in senior management or the board of directors;

•

the general state of the securities markets (with a particular emphasis on the technology and Israeli sectors thereof);

•

the general state of the credit markets, the volatility of which could have an adverse effect on our investments;

•

developments concerning material proprietary rights, including material patents;

•

whether we or our competitors receive or are denied regulatory approvals; and

•

global and local macroeconomic developments, components shortage, effects of the Russia-Ukraine war, the conflict between China and Taiwan, and the state of war declared in Israel in October 2023, the military confrontation between Israel and Iran, and other global occurrences, such as an outbreak of pandemic with similar effect.

Many of these factors are beyond our control, and we believe that period-to-period comparisons of our financial results will not necessarily be indicative of our future performance.

All these factors and any corresponding price fluctuations may materially and adversely affect the market price of our ordinary shares and may result in substantial losses to our investors.

In addition to the volatility of the market price of our shares, the stock market in general and the market for technology companies in particular, has been highly volatile and at times thinly traded. These broad market and industry factors may seriously harm the market price of our ordinary shares, regardless of our operating performance. Investors may not be able to resell their shares following periods of volatility.

In addition, the volatility of the market price of our share, especially when market price is perceived to be very low, may stimulate hostile activities against us such as capital markets’ “activists” trying to influence our operations and hostile takeover attempts by competitors (or other potential stakeholders), as we have recently experienced (see below under “Attempts for a hostile takeover or shareholder activism, may negatively affect our business”). This may cause a significant distraction of management attention in executing against our plans and adversely impact our business and financial results.

Moreover, the market prices of equity securities of companies that have a significant presence in Israel may also be affected by changes in the Middle East, including political and economic changes, and particularly in Israel. As a result, these companies may experience volatility in their share prices and/or difficulties in raising additional funds required to effectively operate and grow their businesses. Thus, market and industry-wide fluctuations and political, economic and military conditions in the Middle East and Israel, may adversely affect the trading price of our ordinary shares, regardless of our actual operating performance. For further details see below under “Conditions in the Middle East and in Israel may adversely affect our operations”.

Further, as a result of the volatility of our stock price, we could be subject, and are currently subject, to securities litigation, which could result in substantial costs and divert management’s attention and Company resources from our business. On January 6, 2015, the Company was served with a motion to approve a purported class action, naming the Company, its Chief Executive Officer and its directors as defendants (the “Defendants”). The motion was filed with the District Court of Tel-Aviv (the “Court”). The purported class action alleges breaches of duties by making false and misleading statements in the Company’s SEC filings and public statements. The class action claimed amount is approximately $75,000,000. On May 27, 2021, following a lengthy procedure that included filing of various pleadings and affidavits, evidentiary hearings, and submission of summaries, the Court ruled to certify the motion as a class action, while applying the Israeli Law (the “Ruling”). According to the Ruling, the class action shall include several causes of action according to the Israeli Securities Act and the Israeli Torts Ordinance, concerning the alleged misleading statements in the Company's SEC filings. On September 12, 2021, the Defendants filed a motion for a rehearing on behalf of the Defendants in order to revert the Ruling (the “Rehearing Motion”). On January 27, 2022, a judgment was rendered in the Rehearing Motion. The Court ruled that the Ruling was erroneous as it applied Israeli Law, instead of foreign law, and held accordingly that the law that will apply is U.S. law. The Court further held that the case will be returned to the first judicial instance and will be adjudicated as a class claim under U.S. law. The Court commented that the Company’s claims based upon the Statute of Limitations should prima facie also be adjudicated under U.S. law. On March 20, 2022, following the Court’s decision, the Plaintiff filed to the first judicial instance, an amended class action claim, based on provisions of U.S. law. The Plaintiff estimated the amended claim amount at $52,099,000. For more information see below in Item 8. “FINANCIAL INFORMATION – Legal Proceedings”.

If we sell ordinary shares in future financings, shareholders may experience immediate dilution and as a result our share price may decline.

In order to raise additional capital, we may at any time offer additional ordinary shares or other securities convertible into or exchangeable for our ordinary shares at prices that may not be the same as the price paid for our ordinary shares by our shareholders. We have a shelf registration statement on Form F-3 on file with the SEC¹ which allows us to offer and sell, from time to time, in one or more offerings, our ordinary shares, rights, warrants, debt securities and units comprising any combination of these securities with an aggregate offering price of up to U.S.$150 million (the “Shelf Registration Statement”). The price per share at which we will sell additional ordinary shares, or securities convertible or exchangeable into ordinary shares, in future transactions, including under the Shelf Registration Statement, may be higher or lower than the price per share paid by our existing shareholders. If we issue ordinary shares or securities convertible into ordinary shares, our shareholders would experience additional dilution and, as a result, our share price may decline.

In addition, as opportunities present themselves, we may enter into financing or similar arrangements in the future, including the issuance of debt or equity securities with or without additional securities convertible or exchangeable into ordinary shares. Whether or not we issue additional shares at a discount, any issuance of ordinary shares will, and any issuance of other equity securities may result in additional dilution of the percentage ownership of our shareholders and could cause our share price to decline. New investors could also gain rights, preference and privileges senior to those of our shareholders, which could cause the price of our ordinary shares to decline. Debt securities may also contain covenants that restrict our operational flexibility or impose liens or other restrictions on our assets, which could also cause the price of our ordinary shares to decline.

Attempts for a hostile takeover or shareholder activism may negatively affect our business.

In recent years, shareholder activists have become involved in numerous public companies. We experienced such involvement in 2022 by our competitor Aviat that launched a hostile takeover attempt against us. Shareholder activists could propose involving themselves in the governance, strategic direction and operations of a company. While shareholders’ activism might be, in certain cases, an efficient course of action taken by financial investors in order to enhance market efficiency and financial performance, other shareholders might have hostile intentions towards the company and may provoke actions which are intended to damage its business and reputation.

Shareholder activism in general, and hostile takeover attempts in particular, including proxy contests, divert our management’s and Board’s attention and resources from our business, could give rise to perceived uncertainties as to our future direction, could result in the loss of potential business opportunities, limit our ability to raise funds and make it more difficult for us to attract and retain qualified personnel for positions in both management and Board levels. In addition, if nominees advanced by activist shareholders are elected or appointed to our Board with a specific agenda, it may adversely affect our ability to effectively and timely implement our strategic plans or to realize long-term value from our assets. Also, we may be required to incur significant expenses, including legal fees, related to hostile takeover, or shareholder activism matters. Further, our share price could be subject to significant fluctuations or otherwise be adversely affected by the events, risks and uncertainties associated with any shareholder activism in general, and hostile takeover attempts in particular.

Risks Relating to Operations in Israel

Conditions in the Middle East and in Israel may adversely affect our operations.

As of the date hereof, Israel is engaged in operation “Roaring Lion", a joint military operation with the United States against the Iranian regime that commenced in February 2026. The operation, codenamed “Epic Fury”" by the United States, is aimed at removing existential threats to the State of Israel by targeting Iran's nuclear program, ballistic missile infrastructure, air defense systems, and regime leadership. In the opening strikes of the operation, Israel eliminated Supreme Leader Ayatollah Ali Khamenei, along with dozens of senior officials, military commanders, and nuclear scientists. Iran has responded with ballistic missile barrages targeting Israel and U.S. allied facilities in the Gulf region, causing civilian casualties and infrastructure damage in Israel. The outcome of this ongoing operation, including its duration and ultimate effects on the Iranian regime, Israel’s security environment, and regional stability, remains uncertain and may have material adverse effects on our operations and the Israeli economy.

In June 2025, Israel conducted operation “Rising Lion”, a 12-day military campaign against Iran that eliminated key elements of Iran’s nuclear program. The operation, conducted with significant U.S. military support including U.S. airstrikes, also targeted Iran’s ballistic missile production capabilities and senior military and scientific personnel.

The “Swords of Iron” war began in October 2023, following a surprise attack on Israel led by Hamas that included massacres, terrorism and crimes against humanity. Following 15 months of conflict, a ceasefire agreement between Israel and Hamas took effect in January 2025. However, the ceasefire did not hold, and fighting resumed after negotiations for a subsequent phase failed. A second ceasefire was reached in October 2025, which included the release of all remaining hostages and a partial Israeli withdrawal from Gaza. Hostilities with the Hezbollah terrorist organization, which escalated into an Israeli invasion of Lebanon in late 2024, resulted in a 60-day ceasefire agreed to in November 2024. While Israel largely withdrew from Lebanon in February 2025, it maintained military outposts in southern Lebanon, and Hezbollah has now rejoined hostilities in connection with operation Roaring Lion.

The Houthi movement in Yemen, an Iranian-backed proxy, has targeted marine vessels in the Red Sea, affecting those enroute to Israel or partly owned by Israeli businesses. This has led shipping companies to reroute or halt shipments to Israel. The Red Sea is crucial for Israel's trade, and disruptions could cause delays in supplier deliveries, longer lead times, and increased costs for freight, insurance, materials, and labor, and have a general adverse effect on the Israeli market.

In addition, Israel has been involved in an armed operations with armed groups in the West Bank, which also included mobilization of armed forces.

The ongoing military operations and regional instability have had and are expected to continue to have significant adverse effects on the Israeli economy, including damage to infrastructure, mobilization of reservists affecting the labor force, disruption of business operations, and increased costs. The outcome and duration of these conflicts remain uncertain, and any escalation could have material adverse effects on our operations.

Our facilities did not sustain any damage and in accordance with the instructions of the Israeli National Emergency Management Authority, there is currently no limitation or denial of access or activity limitation in our facilities. None of our employees were directly harmed as a result of the war. As of the date hereof, we operate continuously, and so far, the situation in Israel has not had a material effect on our operations and business. We monitor closely the directives of the Israeli National Emergency Management Authority and where needed, make required adjustments to our operations in accordance with such directives, including by instructing our workforce to work remotely.

Our headquarters, a substantial part of our research and development facilities and some of our contract manufacturers’ facilities are located in Israel. Accordingly, we are directly influenced by the political, economic and military conditions affecting Israel. Specifically, we could be adversely affected by:

•

hostilities involving Israel;

•

the interruption or curtailment of trade between Israel and its present trading partners;

•

a downturn in the economic or financial condition of Israel; and

•

a full or partial mobilization of the reserve forces of the Israeli army.

All of the above raise a concern as to the stability in the region which may affect the security, social, economic and political landscape in Israel and therefore could adversely affect our business, financial condition and results of operations.

In addition, there are concerns that companies and businesses will terminate, and may have already terminated, certain commercial relationships with Israeli companies following ongoing efforts by countries, activists and organizations to boycott the State of Israel and related entities and companies. The foregoing efforts, particularly if they become more widespread, as well as rulings by the International Court of Justice, International Criminal Court and other international tribunals, may adversely impact on our ability to cooperate with research institutions and collaborate with other third parties. Further deterioration of Israel’s relationship with the Palestinians or countries in the Middle East could expand the disruption of international trading activities in Israel, may materially and negatively affect our business conditions, could harm our results of operation and adversely affect the Company’s share price.

Our business may also be disturbed by the obligation of personnel to perform military service. Our employees who are Israeli citizens are generally subject to a periodic obligation to perform reserve military service, until, in general, they reach the age of 45 (or older, for reservists with certain occupations), but during military conflicts, these employees may be called to active duty for longer periods of time, as occurred, and may continue to occur, during the “Swords of Iron” war. In response to the increase in violence and terrorist activity in the past years, and especially during the “Swords of Iron” war, there have been, and may continue to be, periods of significant call-ups for military reservists. In case of further regional instability such employees, who may include one or more of our key employees, may be absent for extended periods of time, which may materially adversely affect our business.

Furthermore, our Company’s insurance does not cover loss arising out of events related to the security situation in the Middle East. While the Israeli government generally covers the reinstatement value of direct damages caused by acts of war or terror attacks, we cannot be certain that such coverage will be maintained.

Another risk for political, social and economic instability in Israel is associated with the extensive changes which began in early 2023 by the current Israeli government with respect to Israel’s judicial system. In response to such developments, individuals, organizations and financial institutions, both within and outside of Israel, have voiced concerns that the proposed changes may negatively impact the business environment in Israel. Such proposed changes may also adversely affect the labor market in Israel or lead to political instability or civil unrest. To the extent that any of these negative developments do occur, they may have an adverse effect on our business, our results of operations and our ability to raise additional funds, if deemed necessary by our management and board of directors, and to attract or retain qualified and skilled “talents” and personnel.

Moreover, after several credit rating downgrades in recent years, in November 2025, S&P Global Ratings revised its outlook on Israel to “stable” from “negative”, while affirming the “A” rating. Despite this stabilization in outlook by S&P, other agencies, including Moody’s, continued to maintain a negative outlook as of late 2025, citing persistent exposure to geopolitical risks and a polarized political system.

We can give no assurance that the political, economic and security situation in Israel will not have a material adverse effect on our business in the future.

We received grants from the IIA that may require us to pay royalties and restrict our ability to transfer technologies or know-how outside of Israel.

In prior years we have received government grants from the Israel Innovation Authority (the “IIA”) for the financing of a portion of our research and development expenditures in Israel. Under royalty-bearing financing programs, we are obligated to repay the grants by way of royalty payments from revenues generated by the sale of products and/or services developed in the framework of the approved R&D program using financing from such grants (“Financed Know-How”). Such royalties are payable until 100% of the amount of the grant (as adjusted for fluctuation in the USD/NIS exchange rate) is repaid with applicable interest. In December 2006, Ceragon entered into an agreement with IIA under which Ceragon paid its debt to the IIA and since than Ceragon is exempt from royalty payments to the IIA, except for the programs of Siklu Communication Ltd. (“Siklu”) (following this arrangement with the IIA, Ceragon is considered as “Technological Innovation Investment-Abundant Corporation” and can apply for grants only under non-royalty-bearing programs).

Notwithstanding the full repayment of any IIA grants (together with the applicable interest) by Ceragon, unless otherwise agreed by IIA, we must continue to comply with the requirements of the Israeli Law for the Encouragement of Industrial Research and Development, 1984 and regulations promulgated thereunder (the “R&D Law”) with respect to technologies that were developed using Financed Know-How.

In accordance with certain grant plans, in addition to the obligation to pay royalties to the IIA, the R&D Law requires that products which incorporate Financed Know-How be manufactured in Israel and prohibits the transfer of Financed Know-How and any right derived therefrom to third parties, unless otherwise approved in advance by the IIA. Such prior approval may be subject to payment of increased royalties. Failure to comply with the requirements under the R&D Law may subject us to financial sanctions, to mandatory repayment of grants received by us (together with interest and penalties), as well as expose us to criminal proceedings. Although such restrictions do not apply to the export from Israel of the Company’s products developed with such Financed Know-How, they may prevent us from engaging in transactions involving the sale, outsource or transfer of such Financed Know-How or of manufacturing activities with respect to any product or technology based on Financed Know-How, outside of Israel, which might otherwise be beneficial to us. Furthermore, the consideration available to our shareholders in a transaction involving the transfer outside of Israel of Financed Know-How (such as a merger or similar transaction) may be reduced by any amounts that we are required to pay to the IIA. Moreover, the government of Israel may from time to time audit sales of products which it claims incorporate Financed Know-How and this may lead to royalties being payable on additional products, and may subject such products to the restrictions and obligations specified hereunder.

Siklu is a part of royalty-bearing financing programs of the IIA. Following the acquisition of Siklu, we have assumed additional restrictions and liabilities arising out of Siklu’s Financed Know-How.

For more information regarding the restrictions imposed by the R&D Law and regarding grants received by us from the IIA, please see Item 4. “INFORMATION ON THE COMPANY- B. Business Overview- The Israel Innovation Authority.”

The tax benefits to which the Company believes it should be entitled from the approved enterprise program, require us to satisfy specified conditions, which, if we fail to meet, might deny us from these benefits in the future. Further, if such tax benefits are rejected, reduced or eliminated in the future, we may be required to pay increased taxes.

The Company has certain capital investment programs that have been granted approved enterprise status by the Israeli government (the “Approved Programs”), pursuant to Israel’s Law for the Encouragement of Capital Investments, 1959 (the “Encouragement Law”). The Company has three capital investment programs that have been granted Approved Enterprise status, under the Law. The benefit period under Approved Enterprise starts with the first year the benefited enterprise earns taxable income, provided that 14 years have not passed since the approval was granted and 12 years have not passed since the enterprise began operating. As of December 31, 2025, the 14 years have passed pateit will continue to be eligible to enjoy the tax benefits in accordance with the provisions of the Law for the Encouragement of Capital Investments, 1959 (the “Investment Law”). Once it begins to generate taxable income from these approved enterprise programs, the portion of its income derived from these programs will be tax exempt for a period of two years. The benefits available to an approved enterprise program are dependent upon the fulfillment of conditions stipulated under the Encouragement Law and in the certificates of approval or in rulings obtained from the Israeli Tax Authorities. If we fail to comply with these conditions, in whole or in part, we may be required to pay additional taxes for the period(s) in which we benefited from the tax exemption and would likely be denied these benefits in the future. The amount by which our taxes would increase, will depend on the difference between the then-applicable corporate tax rate and the rate of tax, if any, that we would otherwise pay as an approved enterprise, and on the amount of any taxable income that we may earn in the future.

In addition, the Israeli government may reduce, or eliminate in the future, tax benefits available to approved enterprise programs. Our Approved Programs and the resulting tax benefits may not continue in the future at their current levels or at any level. The termination or reduction of these tax benefits would likely increase our tax liability. The amount, if any, by which our tax liability would increase will depend upon the rate of any tax increase, the amount of any tax rate benefit reduction, and the amount of any taxable income that we may earn in the future. For a description of legislation regarding “Preferred Enterprise” see Item 10. “ADDITIONAL INFORMATION”.

On December 31, 2025, Israel enacted legislation implementing the OECD Pillar Two global minimum tax, effective for fiscal years beginning on or after January 1, 2026. The rules introduce a Qualified Domestic Minimum Top‑Up Tax (QDMTT) for multinational groups with consolidated revenues of at least €750 million whose effective tax rate in Israel is below 15%.

The Company is currently below the revenue threshold and therefore not in scope of the relevant Pillar Two rules. Management will continue to monitor developments and assess any future implications for the Company’s tax position and related disclosures as additional guidance becomes available.

Being a foreign private issuer exempts us from certain SEC requirements and Nasdaq Rules, which may result in less protection than is afforded to investors under rules applicable to domestic issuers.

We are a “foreign private issuer” within the meaning of rules promulgated by the SEC. As such, we are exempt from certain provisions under the Exchange Act applicable to U.S. public companies, including:

•

the rules under the Exchange Act requiring the filing with the SEC of quarterly reports on Form 10-Q and current reports on Form 8-K;

•

the sections of the Exchange Act regulating the solicitation of proxies, consents or authorizations in respect of securities registered under the Exchange Act, including extensive disclosure of compensation paid or payable to certain of our highly compensated executives as well as disclosure of the compensation determination process;

•

the provisions of Regulation FD aimed at preventing issuers from making selective disclosures of material information; and

•

the sections of the Exchange Act establishing insider liability for profit realized from any “short-swing” trading transaction (a purchase and sale, or sale and purchase, of the issuer’s equity securities within less than six months).

In June 2025, the SEC published a concept release inviting public comment on whether, and how, it should revise the definition of foreign private issuer in light of changes in the demographics of foreign private issuers in the years since the definition was originally adopted. As of the date of this Annual Report, changes to the foreign private issuer definition have not been enacted, however any such change, if applicable to us, could have significant implications on our ability to maintain our foreign private issuer status. In addition, we are permitted to follow certain home country corporate governance practices and laws in lieu of certain Nasdaq Rules applicable to U.S. domestic issuers. For instance, we have relied on the foreign private issuer exemption with respect to shareholder approval requirements for equity-based incentive plans for our employees and the requirement to have a formal charter for our Compensation Committee. Following our home country governance practices rather than the Nasdaq Rules that would otherwise apply to a U.S. domestic issuer, may provide less protection to investors. For the list of the specific exemptions that we have chosen to adopt, please see Item 16G. “CORPORATE GOVERNANCE”.

We may lose our status as a foreign private issuer, which would increase our compliance costs and could negatively impact on our operations results.

We may lose our foreign private issuer status if (a) a majority of our outstanding voting securities are either directly or indirectly owned of record by residents of the United States and (b) one or more of (i) a majority of our executive officers or directors are United States citizens or residents, (ii) more than 50% of our assets are located in the United States or (iii) our business is administered principally in the United States. In such case, we would be required to, among other things, file periodic reports and registration statements on U.S. domestic issuer forms with the SEC, which are more extensive than the forms available to a foreign private issuer, follow U.S. proxy disclosure requirements, including the requirement to disclose, under U.S. law, more detailed information about the compensation of our senior executive officers on an individual basis, modify certain of our policies to comply with accepted governance practices associated with U.S. domestic issuers and we would lose our ability to rely upon exemptions from certain corporate governance requirements on U.S. stock exchanges that are available to foreign private issuers, as described in the previous risk factor above. All of the above would cause us to incur substantial additional internal and external costs, including for outside legal and accounting support.

It may be difficult to enforce a U.S. judgment against us or our officers and directors, or to assert U.S. securities laws claims in Israel.

We are incorporated under the laws of the State of Israel. Service of process upon our directors and officers, almost all of whom reside outside the United States, may be difficult to obtain within the United States. Furthermore, because the majority of our assets and investments, and almost all of our directors and officers are located outside the United States, any judgment obtained in the United States against us or any of them may not be collectible within the United States.

Additionally, it may be difficult for an investor, to assert U.S. securities law claims in original actions instituted in Israel. Israeli courts may refuse to hear a claim based on an alleged violation of U.S. securities laws reasoning that Israel is not the most appropriate forum to bring such a claim. In addition, even if an Israeli court agrees to hear such a claim, it is not certain if Israeli law or U.S. law will be applicable to the claim. If U.S. law is found to be applicable, the content of applicable U.S. law must be proved as a fact by an expert witness, which can be a time-consuming and costly process. Certain matters of procedure will also be governed by Israeli law. A judgement granted by US Courts may be enforced in Israel subject to various statutory requirements which are procedural in essence.

Your rights and responsibilities as a shareholder will be governed by Israeli law which differs in some respects from the rights and responsibilities of shareholders of U.S. companies.

Since we are incorporated under Israeli law, the rights and responsibilities of our shareholders are governed by our Articles of Association as in effect from time to time (the “Articles of Association”), and Israeli law. These rights and responsibilities differ in some respects from the rights and responsibilities of shareholders in United States-based corporations. In particular, a shareholder of an Israeli company has a duty to act in good faith and in a customary manner in exercising its rights and performing its obligations towards the company and other shareholders and to refrain from abusing its power in the company, including, among other things, in voting at the general meeting of shareholders on certain matters, such as an amendment to a company’s articles of association, an increase of a company’s authorized share capital, a merger of a company and approval of interested party transactions that require shareholder approval. A shareholder also has a general duty to refrain from discriminating against other shareholders. In addition, a controlling shareholder or a shareholder who knows that it possesses the power to determine the outcome of a shareholders’ vote or to appoint or prevent the appointment of an office holder in a company, or has another power with respect to a company, has a duty to act in fairness towards such company. Israeli law does not define the substance of this duty of fairness and there is limited case law available to assist us in understanding the nature of this duty or the implications of these provisions. These provisions may be interpreted to impose additional obligations and liabilities on our shareholders that are not typically imposed on shareholders of U.S. corporations.

Provisions of Israeli law may delay, prevent, or make undesirable an acquisition of all or significant portion of our shares or assets.

Israeli corporate law regulates mergers and acquisitions and requires that a tender offer be effected when certain thresholds of percentage ownership of voting power in a company are exceeded (subject to certain conditions), which may have the effect of delaying, preventing or making more difficult a merger with, or acquisition of, us. Further, Israeli tax considerations may make potential transactions undesirable to us, or to some of our shareholders, if the country of residence of such shareholder does not have a tax treaty with Israel (thus not granting relief from payment of Israeli taxes). With respect to mergers, Israeli tax law provides tax deferral in certain circumstances but makes the deferral contingent on the fulfillment of numerous conditions, including a holding period of two years from the date of the transaction, during which certain sales and dispositions of shares of the participating companies are restricted. Moreover, with respect to certain share swap transactions, the tax deferral is limited in time, and when such time expires, the tax becomes payable even if no actual disposition of the shares has occurred. See Exhibit 2.1 Item 10.B. – “Mergers and Acquisitions under Israeli Law”.

In addition, in accordance with the Israeli Economic Competition Law, 1988 (the “Economic Competition Law”), and the R&D Law, to which we are subject due to our receipt of grants from the IIA, a change in control in the Company (such as a merger or similar transaction) may be subject to certain regulatory approvals in certain circumstances. For more information regarding such required approvals please see Item 4. “INFORMATION ON THE COMPANY - B. Business Overview - The Israel Innovation Authority”.

In addition, as a corporation incorporated under the laws of the State of Israel, we are subject to the Economic Competition Law and the regulations promulgated thereunder, under which we may be required in certain circumstances to obtain the approval of the Israel Competition Authority in order to consummate a merger or a sale of all or substantially all of our assets.

These provisions of Israeli law could have the effect of delaying or preventing a change in control and may make it more difficult for a third party to acquire us, even if doing so would be beneficial to our shareholders, and may also adversely affect the price that investors may be willing to pay in the future for our ordinary shares.

ITEM 4. INFORMATION ON THE COMPANY

A. History and Development of the Company

We were incorporated under the laws of the State of Israel on July 23, 1996 as Giganet Ltd. We changed our name to Ceragon Networks Ltd. on September 6, 2000. We operate under the Companies Law, our registered office is located at 3 Uri Ariav St., Bldg. A (7th Floor) PO Box 112, Rosh Ha’Ayin, Israel, 4810002, and our telephone number is +972-3-543-1000. The U.S. Securities and Exchange Commission (SEC) maintains a public internet site that contains Ceragon’s filings with the SEC and reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC (http://www.sec.gov). Our web address is www.ceragon.com. Information contained on our website does not constitute a part of this annual report.

Our agent for service of process in the United States is Ceragon Networks, Inc., our wholly owned U.S. subsidiary and North American headquarters, located at 851 International Parkway, Suite 1340, Richardson, Tx 75081.

For information concerning the Company’s principal capital expenditures currently in progress, refer to Item 5.B. “Liquidity and Capital Resources”.

On December 5, 2023, the Company closed the acquisition of 100% of Siklu Communication Ltd. and the assets and business activities of Siklu, Inc.

On January 31, 2025, we closed on the acquisition of E2E by way of merger, to further expand our offering to private networks, in consideration for approximately $8.5 million, subject to customary post-closing adjustments and up to an additional $4.3 million subject to achieving certain financial goals primarily in 2025 and paid mostly in 2026.

At closing, Ceragon issued approximately 215,000 Ordinary Shares to the stockholders of E2E.

B. Business Overview

We are the leading wireless transport specialist company in terms of unit shipments and global distribution of our business, providing innovative high-capacity wireless connectivity solutions to global markets across various industries, such as wireless (mobile) networks service providers and private networks.

Wireless transport is a means for connecting mobile and fixed network sites (e.g. cellular base stations in various architectures) to the rest of the network. It carries information to and from the cellular base stations. It is used as high-speed connectivity to telecom sites, typically when fiber optics wireline connectivity is not available and for its backup, or where and when rapid deployment is required.

Ceragon’s innovative technology of compact multi-core all-outdoor and Split-Mount wireless backhaul solutions, assisted in positioning Ceragon as a leader in the global wireless transport market, and we expect that it would have potentially positioned us to benefit from new wireless generation technologies/deployments such as the current 5G.

In preparation for the transition from 4G to 5G technologies, we have begun planning the roll-out of new 5G-supporting products. In 2019, we introduced the market-first “disaggregated wireless transport” architecture, which allows operators to significantly simplify 5G network deployment and maintenance, as well as reduce of capital and operating expenses. We have invested in a new chipset which incorporates multi-cores to be incorporated into products launched in 2025 and onwards. The first new incorporated product is IP-100E which was launched in 2025.

The term ‘wireless transport’ refers to various types of network connectivity signaling and network protocols which vary in speeds and include (i) backhaul - used in 4G, 5G and earlier generations of mobile networks to send data packets between the network and the base-stations and between the base-stations to other network elements, and (ii) fronthaul - used in 4G and 5G networks to send radio signal values between building blocks of the base station, which can be separated from another across geographic site locations to achieve network efficiencies in some network scenarios.

Wireless transport offers network operators a cost-efficient alternative to wire-line connectivity between network nodes at different sites, mainly fiber optics. Support for high broadband speeds and very large numbers of devices, means that all value-added services can be supported, while the high reliability of wireless systems provide for lower maintenance costs. Because they require no trenching, wireless transport links can also be set up much faster and at a fraction of the cost of fiber solutions. On the customer’s side, this translates into an increase in operational efficiency and faster time-to-market, as well as a shorter timetable to achieving new revenue streams.

We provide wireless transport solutions and services that enable cellular operators, other service providers and private networks to build new networks and evolve networks towards 4G and 5G services. The services provided over these networks are: voice, mobile and fixed broadband, multimedia, Industrial/Machine-to-Machine (M2M), Internet of Things (IoT) connectivity and other mission critical services. We also provide our solutions for wireless transport to other vertical markets such as Internet service providers, public safety, municipalities, government, utilities, oil and gas, defense, smart cities, as well as maritime communications and broadcasters. Our wireless transport solutions use microwave and millimeter-wave radio technologies to transfer large amounts of telecommunication traffic between wireless 5G, 4G, 3G and other cellular base station technologies (distributed, or centralized with dispersed remote radio heads) and the core of the service provider’s network. We follow industry consortiums of companies, which attempt to better define future technologies in ICT (Information and Communication Technologies) markets, such as Open Networking Foundation (ONF), Metro Ethernet Forum (MEF), European Telecommunications Standards Institute (ETSI), Telecom Infra Project (TIP) and others, and when it is relevant, we take part in industry processes and standards setting.

In addition to providing our solutions, we also offer our customers a comprehensive set of turn-key services, including advanced network and radio planning, site survey, solutions development, network rollout, maintenance, wireless transport network audit and optimization, and training. To enable delivery of turn-key solutions to our customers, in addition to providing roll-out services, we have partnered with other third-party providers of technologies complementary to our own. Our offering includes technologies such as: Unlicensed Point-to-Point, Private Long-Term Evolution (LTE), Private 5G, Licensed/unlicensed Point-to-Multipoint, Internet Protocol/Multi-Protocol label Switching (IP/MPLS) SW and/or white boxes and many others. This allows us to better cover our customers’ end-to-end needs and increases the level of stickiness with these customers. Our services include powerful project management tools such as our “InSide Software” tool that streamline deployments of complex wireless networks, thereby reducing time and costs associated with network set-up and allowing a fast time-to-revenue. Our experienced teams can deploy hundreds of wireless transport links every week, and our rollout project track record includes hundreds of thousands of links already installed and operational with a variety of industry-leading operators.

Designed for any network scenario, including risk-free flexible migration from current and legacy network technologies and architectures to evolving standards and network transport scenarios, our solutions provide ultra-high-speed connectivity at any distance, be it a few kilometers or tens of kilometers, and even longer, over any available spectrum (or combinations of available spectrum bands) and in any site and network architecture. Our solutions support all wireless access technologies, including 5G-NR NSA, 5G-NR SALTE, HSPA, EV-DO, CDMA, W-CDMA, WIFI and GSM as well as Tetra, P.25 and LMR for critical communications. These solutions allow wireless service providers to cost-effectively and seamlessly evolve their networks from a monolithic base-station architecture to an open radio access network (RAN) architecture, utilizing vertical and horizontal disaggregation, allowing them extra flexibility, scalability and efficiency, thereby meeting the increasing demand of a growing number of connections of any type for consumers and enterprises with growing needs for mobile and other multimedia services, and a growing number of machines or IoT devices such as street surveillance devices or meters.

We also provide our solutions to other non-carrier vertical markets (private networks) such as oil and gas companies, public safety organizations, businesses and public institutions, broadcasters, municipalities, energy utilities, defense, smart cities and others that operate their own private communications networks. Our solutions are deployed by more than 600 service providers of all sizes, as well as in more than 1,600 private networks, in more than approximately 130 countries.

The acquired portfolio of products of Siklu is widely deployed in Fixed Wireless Access applications, addressing the needs of Telecom Service Providers delivering Internet access to commercial properties or business campuses as well as to private homes, apartment building and/or gated communities. Additionally, these solutions address the growing Smart City application, connecting wirelessly the many properties and assets of the cities (e.g CCTV cameras for security, traffic or parking management, Wi-Fi Access points, or IOT sensors). Thus, a new range of integrated services is available to the residents, the visitors and to organizations addressing this market.

In January 2025 we acquired by merger E2E to further expand our offering to private networks. E2E provides a full end-to-end solution for private networks, primarily serving customers in Oil and Gas, Utilities and industrial verticals. E2E is essentially a systems integration company that designs, deploys and manages connectivity solutions to its customers as well as other related devices. In addition, E2E has developed a software solution to help manage the customers’ networks and monitor certain operational and business-related metrics. Except for this proprietary software, E2E provides products to its customers sourced from its ecosystem of vendors.

Established in 2013, E2E is active in the United States, headquartered in Minnesota and employs approximately 50 employees.

Wireless Transport; Short-haul, Long-haul and Small Cells Transport

Today’s cellular networks are predominantly based on 4G and 5G technologies. These networks constantly undergo expansion of coverage, densification with additional sites to cater to higher demands for speeds and to make more services available per given area. In order to allocate spectrum resources for 4G and 5G, some operators are shutting down their 2G and/or 3G network (a “network sunset”) in order to re-allocate radio access network frequency bands to 4.5 and 5G services. These market dynamics of network expansion and densification have resulted in higher demand for wireless transport capacity, at increased density, accommodating sophisticated services over the network at far higher volume than available up to recent years. Such services include the many 5G use cases, which among others include enhanced mobile broadband, mission critical services, IoT & Industrial IoT (Industry 4.0, or “IIoT”), Gigabit broadband to homes, multi Gigabits services to enterprises and more.

The wireless transport market of service providers is divided into two main market segments. The first is a market segment in which operators invest resources and efforts to select the best wireless transport solution that will meet their wireless transport needs, in terms of the ability to improve their business operational efficiency, services reliability and their customers’ (subscribers’) quality of experience. This market segment is referred to as “best-of-breed”. The other market segment is characterized by operators that do not select the wireless transport solution, since this decision is made by a network solution provider retained by the operator. This network solution provider delivers a full end-to-end solution and the equipment required to operate the entire network, including the wireless transport equipment. Operators in this segment of the market rely on the network solution providers to choose wireless transport as part of the full end-to-end solution while often compromising on performance and optimization of the network and other resources, as see it as a solution which does not play a primary role within the end-to-end network rollout considerations. This segment of the market is referred to as “bundled-deals”. Ceragon will also sometimes offer end-to-end solutions to private networks, utilizing its ecosystem of 3^rdparty vendors.

Ceragon serves the “best-of-breed” segment of the market and specializes in a range of solutions, which to the Company’s belief, provide high value for our customers including:

•

Short-haul solutions, which typically provide a wireless link capacity of up to 4 Gbps per link for backhaul with single unit, and/or a link capacity of up to 20Gbps for fronthaul (25Gbps with next generation Eband IP-100E). These solutions are available for distances of several hundred feet to 10 miles. Short-haul links are deployed in access applications (macro cells, small cells and distributed cells) wirelessly connecting the individual base-stations or base-station element (i.e. a “central unit”, a “distributed unit” or a “radio unit”) towers to the core network. Short-haul solutions are also used in a range of Private Networks verticals such as state and local government, public safety, utilities, defense, education and oil and gas.

•

Long-haul solutions, which typically provide a capacity of up to 10 Gbps, are used in the “highways” of the telecommunication backbone network. These links are typically used to carry services at distances of 10 to 50 miles, and, using the right planning, configuration and equipment, can also bridge distances of 100 miles and more. Long-haul solutions are also used in a range of non-carrier “vertical” applications such as broadcast, state and local government, public safety, utilities and offshore communication for oil and gas platforms.

Ceragon has, on more than one occasion, been the first to introduce new products and features to the market, including the first solution for wireless transmission for evolving cellular networks, providing 155 Mbps at 38 GHz in 1996 and numerous microwave and millimeter-wave technology innovations thereafter. Since 2008, Ceragon has invested in pioneering the multicore technology focusing on addressing the multiple wireless transport challenges of 4G and 5G services. This technology is at the core of Ceragon’s in-house developed chipsets for wireless transport, now in their Fourth generation, which enable Ceragon to design and offer vertically integrated solutions. This vertical integration enables Ceragon to provide higher flexibility, better performance, and improved time-to-market. With the first products based on multicore technology introduced to the market in 2013, Ceragon has enabled dual-core radios and far advanced capabilities, such as Line-of-Sight Multiple Input Multiple Output (LoS MIMO), which allows efficient use of spectrum where congestion of frequencies exist, Advanced Frequency Reuse (AFR), which allows massive network densification and Advanced Space Diversity (ASD), which eliminates the use of multiple antennas in various network scenarios, thereby accelerating network deployment and reducing total cost of ownership.

In 2019, Ceragon introduced the market-first “disaggregated wireless transport” architecture, which allows operators to significantly simplify 5G network deployment and maintenance, as well as reduce capital and operating expenses.

Ceragon has invested in a new chipset which incorporates multi-cores in a chipset which was launched in 2024. This is integrated into our IP-100E product line which was launched in 2025 and will be in mass production and productization in late 2026, offering industry-leading performance and capacity.

Industry Background

The market demand for wireless transport is being generated primarily by cellular operators, wireless broadband service providers, businesses and public institutions that operate private networks. This market is fueled by the explosion in mobile data usage in developing and developed countries.

The main catalyst for the wireless transport evolution has been the huge increase in data and video consumption across the globe. This evolution generates higher capacity and cost-efficient architectures, based on IP/Ethernet technologies in a developing set of network scenarios and architectures.

•

In 4G, the fronthaul transport network connects Remote Radio Heads (RRHs) to distant centralized/cloud Baseband Units (BBUs), while backhaul connects BBUs back to 4G Evolved Packet Core (EPC). In 5G, the New Radios (NR) are connected to the BBU, which can be disaggregated into a Central Unit (CU) and a Distributed Unit (DU). The new midhaul interconnects the CU to the DU via a new, standardized 3GPP interface.

•

With help from organizations such as the operator-led O-RAN Alliance, 5G fronthaul and midhaul network interface specifications are open and defined in a structured format. This allows MNOs to purchase RUs, DUs, CUs, and the associated transport networks between them, from anyone. We believe that this presents new market opportunities for Ceragon’s leading wireless transport solutions with our open network architecture.

Rapid subscriber and connections growth and the proliferation of advanced end devices, driven mainly by video content, have significantly increased the amount of traffic that must be carried over a cellular operator’s transport infrastructure. The proliferation of industrial, security and metering devices through IoT technologies, and implementation of new 5G network architectures is also increasing the total capacity and coverage that is needed to be transported throughout networks and put additional strain on network capacity, requiring even higher capacity wireless backhaul and fronthaul connectivity.

New WiFi technologies offer much higher capacities to end users and devices, and therefore require much higher capacity backhaul solutions.

Growing requirements come from private networks such as campuses, oil & gas, critical infrastructure and alike.

Smart and safe city projects require new capacities and performance in ‘Street Level Networking’ in PtP and PtMP solutions.

With the growth in adoption of 4G and the accelerated pace of adoption of 5G, which require even higher network speeds and wireless transport capacity, cellular operators and Private Networks are seeking strategies, using new technologies, which will allow further business growth, to facilitate quick and cost-efficient enablement of new services for more connected subscribers (either human or machine). Among those are Software Defined Networks (SDN) and Network Function Virtualization (NFV) technologies, which are key for network slicing.

Network slicing is a network engineering model in which the physical network is providing resources to numerous virtual networks on top, whereas each virtual network delivers a specific set of performance characteristics for a specific service, or set of services, sharing common requirements. For example, a network slice that is tasked with delivering ultra-high bandwidth for mission critical multimedia services (voice and video) to law enforcement agencies, requires a different amount of network resources ensuring prioritized capacity and minimal delay variation, whereas a different network slice supports video streaming service for mobile entertainment. SDN and NFV technologies are designed to support network slicing models and their implementation, for high quality subscriber experience, by simplifying service creation and orchestration through simple network traffic engineering rules and tools, as well as enabling end-to-end network resources optimization across all network domains, including the wireless transport domain, for increased operational efficiency. Network resources optimization is expected to be achieved, in part, using SDN technologies with wireless transport optimization applications, which will exploit network intelligence gathered by SDN controllers within the network.

The wireless transport domain of the network will require adaptation to these industry trends by enabling far higher capacities, with ultra-low latency for high service quality, simple service creation and optimization to cope with the influx of an increase in the number of services compared to 4G networks, and a high degree of wireless resources optimization (spectrum and other) that will be incorporated within the wireless transport network infrastructure.

Cellular Operators

In order to address the strain on backhaul and fronthaul capacity, cellular operators have several alternatives, including leasing existing fiber lines, laying new fiber optic networks or deploying wireless solutions. Leasing existing lines requires a significant increase in operating expenses and, in some cases, requires the wireless service provider to depend on a direct competitor. Laying new fiber-optic lines is capital and labor-intensive and these lines cannot be rapidly deployed. The deployment of high capacity and ultra-high-capacity point-to-point wireless links represents a scalable, flexible and cost-effective alternative for expanding backhaul and fronthaul capacity. Supporting typical data rates of 2 Gbps (backhaul) and 20Gbps (fronthaul) over a single radio unit, wireless transport solutions enable cellular operators to add capacity only as required while significantly reducing upfront and ongoing backhaul and fronthaul costs.

The surge in mobile data usage, fueled by anticipation and adoption of advanced releases of 4G and 5G services, drives operators to accelerate and finalize the migration of their networks to a more flexible, feature-rich and cost-optimized IP network architecture. Additionally, the surge in data usage in densely populated areas drives operators to explore new network architectures that utilize a variety of small-cell technologies requiring the deployment of dense wireless transport network in various microwave and millimeter-wave spectral bands. As operators intensify 4G services availability and transition to 5G services, all of which are IP-based wireless access technologies, they look for ways to benefit from IP technology in their transport network while maintaining support for their primary legacy services. The progression that is expected in 5G networks rollout over the next several years, will broaden cellular operators’ assessment of the growing role that wireless backhaul and fronthaul may take in their network, as reaching the small cells with more fiber is expected to become a significant challenge, both physically and economically.

Wireless Broadband Service Providers

For wireless broadband service providers, which offer alternate high data access, high-capacity transport is essential for ensuring continuous delivery of rich media services across their high-speed data networks. If the transport network and its components do not satisfy the wireless broadband service providers’ need for cost-effectiveness, resilience, scalability or ability to supply enough capacity, then the efficiency and productivity of the network may be seriously compromised. While both wireless and wire-line technologies can be used to build these transport systems, many broadband service providers opt for wireless point-to-point microwave solutions. This is due to several advantages of the technology including: rapid installation, support for high-capacity data traffic, scalability and lower cost-per-bit compared to wire-line alternatives.

This market segment will also benefit (in some cases) from PtMP solutions as well.

Private Networks and Other Service Providers

Many large businesses and public institutions require private high bandwidth communication networks to connect multiple locations. These private networks are typically built using IP-based communications infrastructure. This market includes educational institutions, utility companies, oil and gas industry, broadcasters, state and local governments, public safety agencies, maritime customers, defense contractors and more. These customers continue to invest in their private communications networks for numerous reasons, including security concerns, the need to exercise control over network service quality and redundant network access requirements. As data traffic on these networks rises, we expect that businesses and public institutions will continue to invest in their communications infrastructure, including wireless transport equipment. Like wireless service providers, customers in this market demand a highly reliable, cost-effective transport solution that can be easily installed and scaled to their bandwidth requirements. Following the acquisition by merger of E2E and along with our organic efforts, our share of business associated with private networks may increase in the future.

This market segment will also benefit (in some cases) from PtMP solutions as well.

Wireless vs. Fiber Transport

Though fiber-based networks can easily support the rapid growth in bandwidth demands, they carry high initial deployment costs and take longer to deploy than wireless. Certainly, where fiber is available within several hundred feet of the operator’s point of presence, with ducts already in place, and when there are no regulatory issues that prohibit the connection – fiber can become the operator’s preferred route. In other scenarios, high-capacity wireless connectivity using microwave and millimeter-wave technologies (wireless transport), is significantly more cost efficient. Wireless transport is taking a significant role in 4G and 5G network densification as a result of ease, cost and the speed of deployment. In fact, in most cases the return-on-investment from fiber installations can only be expected in the long term, making it hard for operators to achieve lower costs per bit and earn profits in the foreseeable future.

Wireless microwave and millimeter-wave transport solutions on the other hand are capable of delivering high bandwidth, carrier-grade network services. Our wireless transport solutions are suitable for all capacities, carrying multi Gbps of traffic over a single radio connection (or “link”). Unlike fiber, wireless solutions can be set up quickly and are more cost efficient on a per-bit basis from the outset. In many countries, microwave and millimeter-wave links are deployed as alternative routes to fiber, ensuring on-going communication in case of fiber-cuts and network failures.

Licensed vs. License-exempt Wireless Transport

Licensed wireless transport:Service providers select the optimal available transmission frequency based on the rainfall intensity in the transmission area and the desired transmission range. The regulated, or licensed, microwave bands (4-42GHz) and millimeter-wave bands (71-86GHz) are allocated by government licensing authorities for high-capacity wireless transmissions. The license grants the licensee exclusive use of that spectrum for a specific use thereby eliminating any interference issues. A licensed microwave or millimeter-wave spectrum is typically the choice of leading operators around the world because it matches the bandwidth and interference protection they require. Our licensed spectrum products operate across the entire span of the licensed microwave and millimeter-wave spectrum described herein, from 4GHz microwave to 86GHz, delivering multi Gbps per link and are scalable and versatile to meet all radio access networks, small cells, private networks and long-haul radio transmission paths requirements.

License-exempt wireless transport:Service providers and private network owners also select license-exempt spectrum in order to provide high speed connectivity to businesses, campuses (often regarded as a wireless backhaul) and serve cellular small cells with wireless backhaul connectivity, without regulatory approval for spectrum.

License exempt spectrum can be categorized into two main categories: 1) 57 – 66GHz millimeter-wave band, known as the v-band spectrum and operating at very wide channel bandwidths, up to 2,000MHz and capable of delivering up to multiple Gbps bi-directional capacity. The use of v-band spectrum requires the existence of a line of sight between the sites. Additional V-band solutions include point-to-multipoint and mesh networks architectures which provide up to multiple Gbps aggregate capacity and their primary use is for access services to end-users with limited capacity of backhaul operating within the access service spectrum (in-band backhaul); and 2) sub 6GHz license-exempt spectrum, operating at narrow channel bandwidths delivering up to 1Gbps bi-directional capacity (FDD), typically in point-to-multipoint network architecture. The use of sub 6GHz spectrum allows for non, or near, line of sight connectivity between the sites and facilitates an economic and flexible rollout model, at the expense of achieving modest capacity, as specified above. License exempt V-band and sub 6GHz bands are more vulnerable to interference as a result of the uncoordinated use of the spectrum.

Our Solutions

We offer a broad product portfolio of innovative, field-proven, high-capacity wireless transport solutions, which incorporate our unique multicore technology. Our multicore technology is a key element in our differentiation within the wireless transport market, serving the “best-of-breed” market segment. Our multicore technology is comprised of a high order of digital signal carriers embedded in modems having multiple baseband cores, designed for microwave and millimeter-wave communications, and RF integrated circuits (RFIC), which support the entire available microwave and millimeter-wave spectrum. We integrate our multicore technology SoCs into sub-systems and complete wireless transport solutions that deliver high value to our customers. With our approach to solutions, from system-on-a-chip design, all the way to solutions design, we enable cellular operators, other wireless service providers, public safety organizations, utility companies and other private network owners to effectively obtain a range of benefits:

•

Increase business operational efficiency by reducing network-related expenses. Our customers are able to obtain the required capacity with one-quarter of the spectrum needed otherwise, double network capacity without adding more equipment simply by remotely expanding wireless link capacity, significantly reduce energy related expenses by utilizing our energy efficient products, use smaller antennas thereby reducing telecommunication tower leasing costs, and improve their staff productivity with the use of a single wireless transport platform for their long-haul, short-haul and small/distributed cells transport needs. We offer a range of solutions for quick and simple modernization of wireless networks to 4G and 5G, which significantly contribute to our customers’ ability to modernize and expand their services.

Our wireless transport solutions are offered across the widest range of frequencies - from 4GHz microwaves to 86GHz millimeter-waves. This provides our customer with more flexibility in deploying its wireless transport infrastructure, as it enables the customer to select the spectrum available in the customer’s market, from a wider range of frequencies. Any transport network topology is supported to enable high network availability and resiliency, including ring, mesh, tree and chain topologies.

•

Enhance service portfolio, quality of experience and reach. Our multicore technology allows our customers to introduce new services (e.g. 5G use cases), to improve subscriber (user) quality of experience generated from the voice, data and multimedia services that they provide to their customers and to extend their network and services reach in order to address new markets. Our All-outdoor offering enables quicker installation and deployment, hence improving time-to-market of our customers’ services to their subscribers.

•

Ensure peace of mind. Our solutions utilize the latest in microwave and millimeter-wave technology, incorporated in-house developed System-on-Chips (baseband and RF integrated circuits), and use the latest advances in SMT (Surface-mount technologies) based manufacturing – allowing our customers to benefit from the highest service availability across their Ceragon-based wireless transport network.

•

End to End connectivity solutions for Private Networks. Our solutions for private networks include a suite of products and services, either owned by us or by our ecosystem partners, to support private networks in everything they need for high quality connectivity solutions and complete support from initial ideation and design, to deployment, ongoing management and support, allowing our customers to have a one-stop shop for all network related operations. Our acquisition by merger of E2E expands our offering with additional services, use cases and proprietary vendor-agnostic management software.

We provide our customers with future solutions already built-in to their Ceragon-installed base. We invest a significant amount of effort in designing and providing solutions, which are not only backward compatible with our earlier product generations, but also allow our customers to reuse the radio units and antennas of their Ceragon links installed base, thereby replacing only the low labor-consuming indoor (sheltered) units - thus benefiting from the latest wireless transport performance of our latest technology across their Ceragon-installed base. Moreover, our solutions support multiple technologies within the same wireless transport equipment, providing our customers with high flexibility in network transition from legacy connectivity to 4G and 5G connectivity and architectures, at their desired pace of transition - while achieving long-term operational efficiency, high service quality and availability.

Design to Cost. We see increasing demand for smaller systems with low power consumption and a cost structure that fits today’s business environment in the diverse markets, seeking wireless transport solutions. We believe that this complicated puzzle can be solved through vertical integration from system to chip level. Our strategy to drive performance up while driving costs down is achieved through our investment in modem and RF (radio frequency) integrated circuit (IC) design. Our advanced chipsets, which are already in use in more than one million units in the field, integrate all the radio functionality required for high-end microwave and millimeter-wave systems. By owning the technology and controlling the complete system design, we achieve a very high level of vertical integration and cost structure and control over the timing of introducing certain capabilities, which is not available to vendors relying on off-the-shelf chipsets. This, in turn, enables us to yield systems that have superior performance when compared with systems which use off-the-shelf chipsets component available from other single source, due to our ability to closely integrate and fine-tune the performance of all the radio components. We have introduced automated testing that allows us to speed up production while lowering the costs for electronic manufacturing services manufacturers. Thus, we believe we are able to achieve one of the lowest per-system cost positions in the industry and can offer our customers further savings through compact, low power consumption designs – which is becoming a key parameter in the ability of operators to deploy their networks, while meeting operational efficiency targets, and at the same time promote a more “green” environment by reducing energy consumption and environmental pollution caused thereby.

Our Point-to-Multipoint Solutions.Our Millimeter wave (mmW) solutions from Siklu by Ceragon deliver ultra-fast, cost-effective wireless connectivity across urban, suburban, and enterprise environments. Operating in the license-exempt 60 GHz (V-band) and lightly licensed 70/80 GHz (E-band), mmWave technology bypasses the congestion and complexity of traditional microwave and fiber, offering interference-free performance, multi-gigabit speeds, and ultra-low latency. Ultra-low latency is ideal for FWA and enterprise links, License-exempt / lightly licensed spectrum for rapid deployment, and it is optimized for dense environments like the urban jungle, and it provides support for fiber extension, redundancy and metro growth.

Our Products

Our portfolio of products utilizes microwave and millimeter-wave radio technologies that provide our customers with wireless connectivity that dynamically adapts to weather conditions and optimizes range and efficiency for a given frequency channel bandwidth. Our products are typically sold as a complete system comprised of some or all of the following four components: an outdoor unit, an indoor unit, a compact high-performance antenna and a network management system. We offer all-packet microwave and millimeter-wave radio links, with optional migration from TDM to Ethernet. Our products include integrated networking functions for both TDM, Ethernet and IP/MPLS.

We offer our products in four configurations: All-outdoor, split-mount, all-indoor, and disaggregated transport.

•

All-outdoor solutions combine the functionality of both the indoor and outdoor units in a single, compact device. This weather-proof enclosure is fastened to an antenna, eliminating the need for rack space or sheltering, as well as the need for air conditioning, and is more environmentally friendly due to its lower footprint and power consumption.

•

Split-mount solutions consist of:

➢

Indoor units which are used to process and manage information transmitted to and from the outdoor unit, aggregate multiple transmission signals and provide a physical interface to wire-line networks.

➢

Outdoor units or Radio Frequency Units (RFU), which are used to control power transmission, and provide an interface between antennas and indoor units. They are contained in compact weather-proof enclosures fastened to antennas. Indoor units are connected to outdoor units by standard coaxial or Cat-5/6 baseband cables.

•

All-indoor solutions refer to solutions in which the entire system (indoor unit and RFU) resides in a single rack inside a transmission equipment room. A waveguide connection transports the radio signals to the antenna mounted on a tower. All indoor equipment is typically used in long-haul applications.

•

Disaggregated wireless transport solutions offer a single radio suitable for all-outdoor, a split-mount scenario, and a networking unit, which provides versatile and scalable hardware options based on merchant routing silicon and also provides routing capabilities (L3) that are radio technologies aware.

•

Pointing out accurate solutions for high movement environments. These are advanced microwave radio systems for use on moving rigs/vessels where the antenna is stabilized in one or two axes, azimuth or azimuth/elevation.

•

Antennas are used to transmit and receive microwave radio signals from one side of the wireless link to the other. These devices are mounted on poles typically placed on rooftops, towers or buildings. We rely on third party vendors to supply this component.

•

End-to-End Network Management. Our network management system uses standard management protocol to monitor and control managed devices at both the element and network level and can be integrated into our customers’ existing network management systems.

•

Unified network intelligence and management software suite: Provides an intuitive and in-depth view of the entire wireless transport network. It is the ideal tool to proactively run, analyze and maintain network health for the best performance and functionality. In addition, it provides self-defined automation use cases, pre-defined configuration files that can be uploaded quickly to the network elements - on-site or remotely.

•

Smart Activation Key: A single centralized Smart Activation Key that instantly discovers and automatically activates all network elements.

•

PtMP - We acquired a new type of solution that provides Point to Multi-Point offering. This solution is ideal for the emerging 5G Gigabit Wireless Access (GWA) market for residential customers and many enterprise market segments that require dense gigabit connectivity.

The IP-20 Platform provides a wide range of solutions for any configuration requirement and diverse networking scenarios. Composed of high-density multi-technology nodes and integrated radio units of multiple radio technologies ranging from 4GHz and up to 86GHz, it offers ultra-high capacity of multiple Gbps with flexibility in accommodating for every site providing high performance terminals for all-indoor, split mount and all-outdoor configurations. The IP-20 platform supports carrier-ethernet services and is MEF 2.0 certified.

The IP-50 Platform provides wireless transport using a single type of radio in microwave or millimeter-wave for all configuration and installation scenarios and IP/MPLS and segment routing capabilities over merchant silicon hardware options.

IP-20/50 All-outdoor solutions:

Product	Frequency range	Application	Networking & transport technologies
IP-20C-HP	4-11GHz, dual-carrier	Longhaul	Carrier Ethernet
IP-50E	71-86GHz	Shorthaul, Fronthaul, Enterprise access	Carrier Ethernet
IP-50EX/EXP/EXA	71-86GHz	Shorthaul, Enterprise access	Carrier Ethernet
IP-50C	6-42GHz, dual-carrier	Shorthaul	Carrier Ethernet
IP-50CX	6-42GHz, dual-carrier	Shorthaul	Carrier Ethernet

IP-20/50 Split-mount / all-indoor solutions:

Product	Frequency range	Application	Networking & transport technologies
IP-20N / IP-20A	4-86GHz	Shorthaul, Long-haul	Carrier Ethernet, TDM
IP-50GP/GPX	4-86GHz	Shorthaul, Long-haul	Carrier Ethernet, TDM
IP-20F	4-86GHz	Shorthaul	Carrier Ethernet, TDM
IP-20G	6-42GHz	Shorthaul	Carrier Ethernet, TDM

IP-50 disaggregated solutions:

Product	Frequency range	Application	Networking & transport technologies
IP-50FX	6-86GHz	Shorthaul, Long-haul, Routing	Carrier Ethernet

As wireless transport capacity needs grow, the wireless transport network blueprint evolves to supporting more radio carriers in one box (2 carriers, instead of 1) as a basic configuration with the IP-20C-HP product, or even 4+0 (a link utilizing 4-carriers in a carrier-aggregation configuration) in all-outdoor configuration with layer-1 carrier aggregation to support growing capacity needs at minimal footprint with the IP-50C/CX product. Ceragon’s multicore technology covers all network scenarios and site configurations wherever All-outdoor, Split-mount, or All-indoor. Various multicore radio units can be used with IP-20N/IP-20A, IP-50GP/GPX or IP-50FX products, such as RFU-SX, RFU-D and the RFU-D-HP, or IP-50C/CX and IP-50E/EX family in the disaggregated solution (i.e. can be used as a stand-alone, all-outdoor radio or in a split-mount configuration, connected to the IP-50FX). As part of the IP-50FX Disaggregated Cell Site Gateway (DCSG), we introduced a Radio Aware Open Networking (RAON) Software, designed to increase operational efficiency, simplify radio monitoring and management, and expect in the future to release a reduced energy consumption.

In addition to the IP-20 and the IP-50 Platforms, Ceragon provides the PointLink portfolio that offers a tailored solution for oil and gas and other maritime offshore applications.

We are also able to address a new range of markets and opportunities with the addition of Siklu’s products:

The EtherHaul Platform (EH) provides a wide range of Point-to-Point all-outdoor radios operating in the mmWave spectrum (V-band 60GHz license-exempt and E-band 70/80GHz lightly licensed). Deployable at street level with integrated antennas or on roof-tops and towers with external antennas, the capacity ranges from 1Gbps to 20Gbps. All the radios are PoE or DC powered, and many offer PoE-out options to power additional equipment served by the wireless link.

The MultiHaul Platform (MH) is a novel series of all-outdoor compact radios operating in the 60GHz license exempt spectrum, with beam-forming self-aligning antennas, and Layer 2 SDN MESH capability for SON (Self-Organizing-Network). The radios operate in Point-to-Multipoint topologies, lowering the cost of the radio link, and growing the range or coverage of the wireless network. The MESH can feature redundant links to raise the resiliency of the wireless network. All the radios are PoE powered, and many offer PoE-out options to power additional equipment served by the wireless link.

Product	Frequency range	Application	Networking & transport technologies
EH-600TX, EH-614TX	57-68GHz	Smart City, Street level, Broadband Access, Private Network	PtP, CE & transparent bridge, PoE-in/out
EH-710TX	71-76GHz	Smart City, Street level, Broadband Access, Private Network	PtP, CE & transparent bridge, PoE-in/out
EH-8010FX	71-86GHz	Broadband Access, Private Network	PtP, transparent bridge
MH-B100 & MH-T200	59-64GHz	Smart City, Street level, Broadband Access, Private Network	PtMP, transparent bridge to full VLAN, PoE-in/out
MH-N36x, MH-N265 MH-T280, MH-T265, MH-T260/1	57-66GHz	Smart City, Street level, Broadband Access, Private Network	PtMP, MESH, transparent bridge to full VLAN, PoE-in/out

Our network management system (NMS) can be used to monitor network element status, provide statistical and inventory reports, download software and configuration to elements in the network, and provide end-to-end service management across the network. Our NMS solutions support all our microwave and millimeter-wave products through a single user interface.

SDN (Software Defined Network) solution

As the mobile industry progresses towards the 5G era, SDN is becoming more important for operators. SDN concepts and protocols will allow the operators to have a complete, multi-technology, multi-vendor view of their network and apply optimization and predictive maintenance instructions in real time. The SDN concepts and values fit well the openness and disaggregation principles our customers are seeking. We offer our customers a wide variety of SDN supporting products and tools:

•

SDN Controller – Ceragon’s SDN Master is a complete controller supporting SDN protocols that can monitor and control Ceragon’s products in an SDN environment. The SDN Master can work as a ‘standalone’ controller, or as part of an SDN solution managed by a higher level SDN controller offered by a third-party vendor (sometimes referred to as an SDN Orchestrator), allowing full flexibility to our customers.

•	SDN support in our wireless transport products - all Ceragon IP-20 and IP-50 products support the needed SDN protocols allowing the operator to manage these products with Ceragon SDN controllers but also with third party SDN controllers, again, allowing full flexibility to our customers.

•

SDN applications – Software (SW) tools with significant impact on our customers’ TCO (total cost of ownership), network availability, and fast network rollout. These applications enable operators to increase their network efficiency and effectiveness with operational optimization and automatization capabilities. With the SDN technology, Ceragon SW solutions are entering into the cloud domain allowing multiple open and flexible deployment scenarios for our customers. Currently, Ceragon is developing and enhancing those and other SW tools in order to expand our offering also to stand-alone SW solutions and services either as on-premises, remote or SaaS services. “Ceragon Insight” is a unified network intelligence and management software suite for wireless transport network. It aims to provide NOC and Engineering teams with deep insight and analytics tools that save money by enabling highly effective operations, assuring quality of service, and speeding response to ongoing and upcoming issues.

IP-100 Platform

Ceragon has invested in a new chipset which incorporates multi-cores in a chipset which was launched in 2024 and is now integrated into our IP-100E family, offering industry-leading performance and capacity. We are already designing the first IP-100 products that will be using that chipset that will significantly increase our wireless transport products capabilities in terms of higher capacity, lower latency and more, the first of them was launched in 2025. These capabilities will make the IP-100 platform the optimized choice for existing and new use cases in the 5G mobile market. The IP-100 platform is expected to expand Ceragon products coverage beyond the MW bands, V-Band and E-Band range (4-86 GHz) and include W-band (up to 110 GHz) and D-band (up to 170 GHz) products.

As telecommunication networks and services become more demanding, there is an increasing need to match the indoor units’ advanced networking capabilities with powerful and efficient radio units. Our outdoor RFUs are designed with sturdiness, power, simplicity and compatibility in mind. As such, they provide high-power transmission for both short and long distances and can be assembled and installed quickly and easily. The RFUs can operate with different Ceragon indoor units, according to the desired configuration, addressing any network need be it cellular, backbone, rural or private transport networks.

Our Services

We offer complete solutions and services for the design and implementation of telecommunication networks, as well as the expansion or integration of existing ones. We have a global projects and services group that operates alongside our products groups. Under this group we offer our customers a comprehensive set of turn-key services including: advanced network and radio planning, site survey, solutions development, installation, network auditing and optimization, maintenance, training and more. Our services include utilization of powerful project management tools in order to streamline deployments of complex wireless networks, thereby reducing time and costs associated with network set-up, and allowing faster time to revenue. Our experienced teams can deploy hundreds of “wireless transport links” every week, and our rollout project track-record includes hundreds of thousands of links already installed and in operation with a variety of Tier 1 operators.

We are committed to providing high levels of service and implementation support to our customers. Our sales and network field engineering services personnel work closely with customers, system integrators and others to coordinate network design and ensure successful deployment of our solutions.

We support our products with documentation and training courses tailored to our customers’ varied needs. We have the capability to remotely monitor the in-network performance of our products and to diagnose and address problems that may arise. We help our customers to integrate our network management system into their existing internal network operations control centers.

Currently, in the pursuit of our new strategy to diversify and expand our offering to include, among other things, solutions for WISPs (wireless internet services), private networks and software based solutions, we are developing and enhancing SW tools including those that have been used by us for networks planning, commissioning, monitoring, optimization and maintenance, to be included in our services offering as a stand-alone SW solutions and services either as on-premise, remote or SaaS.

Ceragon Digital Twin is a Ceragon developed tool that creates a virtual representation of customers’ physical networks. The Ceragon Digital Twin can be used to analyze, emulate, diagnose, and optimize the physical network and site infrastructure based on detailed modeling, data collection and interfaces to achieve near real-time, interactive mapping between physical networks and virtual twin networks. Our customers benefit from a data-driven and vendor- agnostic system that proactively identifies network weak spots, redundancies, energy cost inefficiencies, alerts for upcoming capacity bottlenecks, and many other network health and efficiency features. Customers benefit from a more resilient network as well as both CAPEX and OPEX savings, driven by optimized, when and where needed expansion, energy cost reduction, and a lowered need for site visits. We also invest in expanding our Digital Twin solution offering to better support critical private networks requirements, including IoT standards and selected devices.

Ceragon’s Managed Services provide end-to-end, proactive management of the customer’s network operation. Ceragon leverages its decades of networking expertise, specialized software tools and Network Management personnel, to relieve customers from the need to manage their network infrastructure. Professional and efficient network management saves customer resources, provides “peace of mind”, and allows our customers to focus on their actual business activities. These services are specifically designed for smaller public networks and private networks where there is less available headcount and often less technological expertise.

Ceragon's AI-Powered Managed and Professional Services incorporate advanced analytics and automation to support more efficient and consistent network operations. By applying machine learning to network data, these services enable continuous monitoring, early detection of potential issues, and data-driven optimization of network performance. This approach helps shift operational models from reactive troubleshooting toward more proactive and structured maintenance practices, while reducing reliance on manual processes.

As part of our Professional Services, we work with customers across the network lifecycle, including planning, deployment, and ongoing optimization. AI-based insights are used to support capacity planning, improve resource utilization, and enable more informed operational decisions across multi-vendor environments. Together, these capabilities aim to improve network reliability, operational efficiency, and long-term cost management.

Our suite of Professional Services was designed specifically for private networks to make possible the easiest network implementation throughout the entire network lifecycle – to help meet all of their connectivity needs. From planning and designing the right solution, through sourcing the required equipment, rolling out and installing the network and assuring optimal performance through ongoing testing, management and maintenance services, Ceragon can customize the appropriate service offering for each customer. In addition, we are investing in expanding our system integration capabilities to support more use cases and verticals, as the demand for modern private networks continues to increase.

Our acquisition by merger of E2E expands our services and software offering, focused on the needs of private networks. E2E served dozens of customers, supporting them with meaningful networks deployments and software-based management. E2E brings capabilities in providing a full suite of services and system integration capabilities.

Our Customers

We have sold our products, directly and through a variety of channels, to over 600 service providers and more than 1,600 private network customers in more than approximately 130 countries. Our principal customers are wireless service providers that use our products to expand transport network capacity, reduce transport costs and support the provision of advanced telecommunications services. In 2025, we continued to maintain our position as the number one wireless transport specialist, in terms of unit shipments and global distribution of our business. While most of our sales are direct, we do reach a number of these customers through OEM or distributor relationships. We also sell systems to large enterprises and public institutions that operate their own private communications networks through system integrators, resellers and distributors. Our customer base is diverse in terms of both size and geographic location.

The following table summarizes the distribution of our revenues by region, stated as a percentage of total revenues for the years ended December 31, 2025, 2024 and 2023:

	Year Ended December 31,
Region	2025			2024			2023
North America (*)		33	%		23	%		28	%
EMEA (**)		15	%		16	%		18	%
India		34	%		43	%		31	%
Asia-Pacific		9	%		9	%		10	%
Latin America		9	%		9	%		13	%

(*) As of December 31, 2025, 2024 and 2023, 95%, 97% and 94% represent revenues in the United States.

(**) Including Europe, Middle East and Africa.

Sales and Marketing

We sell our products through a variety of channels, including direct sales, OEMs, resellers, distributors and system integrators. Our sales and marketing staff, including services and supporting functions, include approximately 574 employees in many countries worldwide, who work together with local agents, distributors and OEMs to expand our business.

We are a supplier to various key OEMs, system integrators, distributors and resellers, and we are focusing our efforts on direct sales. We also plan to develop additional strategic relationships with equipment vendors, global and local system integrators, distributors, resellers, networking companies and other industry suppliers with the goal of gaining greater access to our target markets.

Marketing plays an important role in promoting Ceragon’s products, solutions and services in creating lead generation to new and existing customers, and ultimately establishing its leadership and differentiation in the market. Ceragon’s key marketing activities include the following:

•

Proactively planning and executing marketing campaigns and developing content as well as communications material to promote the Ceragon products, solutions and services to customers and prospects over the entire course of the sales-cycle. Activities include advertising, e-mail, press releases, newsletters, marketing collateral (white papers, e-books, brochures, case studies, etc.), blogs, promotional videos and more. This content is produced and written with search engine optimization in mind to ensure Ceragon high ranking in customer organic search results and with AI bots.

•

Organizing and running exhibitions, seminars and events. This goes far beyond the mere planning the logistics of the event, but customizing messaging for target audience, creating event materials, such as displays, presentations, animated videos, demos, and most importantly promoting the event to customers and prospects to ensure successful attendance and secure customer meetings.

Following the outbreak of the COVID-19 pandemic, we have developed remote marketing tools such as webinars, live-demos, remote seminars and enhanced the use of digital tools and remote marketing activities.

Our revenue and operating results are hard to predict and may vary significantly from quarter to quarter and from our expectations for any specific period. The timing of revenue recognition is based on several factors. See Item 5. Operating and Financial Review and Prospects – General – Critical Accounting Policies and Estimates – Revenue Recognition.

Manufacturing and Assembly

Our manufacturing process consists of materials planning and procurement, assembly of indoor units and outdoor units, final product assurance testing, quality control and packaging and shipping. With the goal of streamlining all manufacturing and assembly processes, we have implemented an outsourced, just-in-time manufacturing strategy that relies on contract manufacturers to manufacture and assemble circuit boards and other components used in our products and to assemble and test indoor units and outdoor units for us. The use of advanced supply chain techniques has enabled us to increase our manufacturing capacity, reduce our manufacturing costs and improve our efficiency.

We comply with standards promulgated by the International Organization for Standardization and have received certification under the ISO 9001 (Quality), ISO 14001 (Environment), ISO 27001 (Information Security Management System) and ISO 45001 (Health and Safety) standards. These standards define the procedures required for the manufacture of products with predictable and stable performance and quality, as well as environmental guidelines for our operations and safety assurance.

We outsource most of our manufacturing operations to major contract manufacturers in Israel, Singapore, the Philippines and China. We established an RMA center in India. Most of our warehouse operations are outsourced to subcontractors in Israel, the Netherlands, the United States, Philippines and Singapore. The raw materials (components) for our products come primarily from the United States, Europe and Asia Pacific.

Our activities in Europe require that we comply with European Union Directives with respect to product quality assurance standards and environmental standards including the “RoHS” (Restrictions of Hazardous Substances) Directive.

Additionally, we apply and maintain a conflict mineral policy with respect to the sourcing of metal parts containing tin, tungsten, tantalum and gold, also referred to as 3TG, in addition to other trade compliance policies.

Research and Development

We place considerable emphasis on research and development to improve and expand the capabilities of our existing products, to develop new products (with particular emphasis on equipment for emerging IP-based networks) and features and effective bandwidth utilization, and to lower the cost of producing both existing and future products. We intend to continue to devote a significant portion of our personnel and financial resources to research and development. As part of our product development process, we maintain close relationships with our customers to identify market needs and to define appropriate product specifications. In addition, we intend to continue to comply with industry standards and we are full members of the European Telecommunications Standards Institute in order to participate in the formulation of European standards and, in order to participate in the formulation of European standards, we are full members of the European Telecommunications Standards Institute.

Our research and development activities are conducted mainly at our facilities in Rosh Ha’Ayin, Israel, but also at our sites in Greece, Romania and India (Bangalore). As of December 31, 2025, our research, development and engineering staff consisted of 257 employees globally. Our research and development team includes highly specialized engineers and technicians with expertise in the fields of millimeter-wave design, modem and signal processing, data communications, system management and networking solutions.

Our research and development department provide us with the ability to design and develop most of the aspects of our proprietary solutions, from chip-level, including ASICs and RFICs, to full system integration. Our research and development projects currently in process include extensions to our leading IP-based networking product lines and development of new technologies to support future product concepts. In addition, our engineers continually work to redesign our products with the goal of improving their manufacturability and testability while reducing costs.

Intellectual Property

To safeguard our proprietary technology, we rely on a combination of patent, copyright, trademark and trade secret laws, confidentiality agreements and other contractual arrangements with our customers, third-party distributors, consultants and employees, each of which affords only limited protection. We have a policy which requires all of our employees to execute employment agreements which contain confidentiality provisions.

To date, Ceragon has 18 patents granted in the United States and other foreign jurisdictions including the EPO (European Patent Office) and 8 patent applications pending in the United States and other foreign jurisdictions including the EPO.

In addition, Siklu has 31 patents granted in the United States, 1 patent granted in the UK and 4 patent applications pending in Germany.

Ceragon has registered trademarks as follows:

for the standard character mark Ceragon Networks in Canada;

for the standard character mark CERAGON, national registrations in Morocco, Malaysia, Indonesia (under the name of Ceragon Networks AS), Japan, Israel, Mexico, the United States, South Africa, the Philippines, Argentina, Venezuela, Peru, Canada, Nigeria, Brazil and Colombia, United Kingdom, Indonesia, Morocco, Malaysia and India, and International Registration (protection granted in Australia, Iceland, Bosnia & Herzegovina, Korea, Switzerland, Croatia, Norway, Russia, China, Ukraine, CTM (European Union), Turkey, Singapore, Macedonia, Egypt, Kenya and Vietnam);

for our design mark for FibeAir in United Kingdom and the European Union; and

for the standard character mark CeraView in United Kingdom and the European Union.

In addition, E2E has 1 trademark for the standard character mark E2E in the United States.

Competition

The market for wireless equipment is rapidly evolving, fragmented, highly competitive and subject to rapid technological change. We expect competition, which may differ from region to region, to persist in the future - especially if rapid technological developments occur in the broadband wireless equipment industry or in other competing high-speed access technologies.

We compete with several wireless equipment providers worldwide that vary in size and in the types of products and solutions they offer. Our primary competitors include large wireless equipment manufacturers referred to as generalists, such as Huawei Technologies Co., Ltd., L.M. Ericsson Telephone Company, Nokia Corporation and ZTE Corporation. In addition to these primary competitors, several other smaller wireless transport equipment suppliers, including Aviat Networks Inc., SIAE Microelectronica S.p.A, Cambium Networks (60GHz MESH products only), and Intracom telecom, offer and develop products that compete with our products.

We also expect consolidation pressure to continue as the wireless equipment market continues to be highly competitive and, as a result, we face price pressures. We expect to continue to be a leader in the “best-of-breed” market segment of the wireless transport market in terms of market share, technology and innovation, providing significant value to our customers.

Further market dynamics may drive some operators, which seek “best-of-breed” solutions, to seek “bundled” network solutions from the generalists. This trend may put additional strain on our competitiveness.

In addition, the development and expansion of Low Earth Orbit (LEO) satellite networks have become more capable of providing backhaul connectivity for cellular networks, and therefore there is a potential for network operators to favor satellite-based solutions over our microwave transmission products.

Furthermore, technologies such as FSO, laser and photonic, are emerging as potential alternatives to traditional wireless transport solutions. These technologies leverage optical communication principles to deliver high-capacity, low-latency, and interference-resistant connectivity.

We believe we compete favorably based on:

•

the diversification of our technologies and capabilities, which allows flexible vertical integration options, including the development of the core technology – RFIC and modems, including SoC (System on Chip);

•

our focus and active involvement in shaping next generation standards and technologies, which deliver best customer value;

•

our product performance, reliability and functionality, which assist our customers to achieve the highest value;

•

the range and maturity of our product portfolio, including the ability to provide solutions in every widely available microwave and millimeter-wave licensed and license-exempt frequency, as well as our ability to provide both IP and circuit switch solutions and therefore to facilitate a migration path for circuit-switched to IP-based networks;

•

our design to cost structure;

•

our time-to-market advantage, due to having our own technology and our own chipsets;

•

our focus on high-capacity, point-to-point microwave and point-to-point as well as point-to-multipoint millimeter-wave technologies, which allows us to quickly adapt to our customers’ evolving needs;

•

the range of rollout services offering for faster deployment of an entire network and reduced total cost of ownership;

•

our support and technical service, experience and commitment to high quality customer service,

•

our ability to expand to other vertical markets such as oil and gas, utilities, defense and public safety, by drawing upon the capabilities of our technologies and solutions;

•

Our unified network intelligence and management software suite is used for multi-vendor wireless transport networks. It provides the customer’s NOC and Engineering teams with deep insight and analytics tools that save money by enabling highly effective operations, assuring the best quality of service, and speeding up the team’s response to ongoing and upcoming issues;

•

Our Smart activation key SW allows to instantly discover and automatically activate all customers' network elements efficiently. This eliminates delivery and deployment delays with easy, instant, friction-free activation, along with powerful actionable intelligence from network element usage reports to improve performance, increase efficiency, and reduce operating costs; and

•

Our Wireless Network Design Engine, WiNDE, simplifies the design challenges of deploying the right piece of equipment at every point in the network. WiNDE takes in all the locations to be served in a given mmW network and applies cost and performance factors to automatically recommend optimal, cost-effective, and robust implementations from which to choose. The tool also creates a Bill of Materials to build the selected design as well as the configuration files to ensure that operations are as designed.

The Israel Innovation Authority and other Granting Authorities

The government of Israel encourages research and development projects in Israel through the IIA, formerly known as the Israeli Office of Chief Scientist, pursuant to the provisions of the R&D Law and subject thereto. We received grants from the IIA for several projects and may receive additional grants in the future.

Under the terms of certain IIA plans, a company may be required to pay royalties ranging between 3% to 6% (depending on the terms and conditions of the specific plan and the classification of the company), of the revenues generated from its products or services incorporating know-how developed with, or are a derivative of, funds received from the IIA (“IIA Products”), until 100% of the dollar value of the grant is repaid (plus LIBOR interest applicable to grants received on or after January 1, 1999 and until July 1, 2017; the interest applicable to grants received on or after July 1, 2017, and until January 1, 2024 is: (i) LIBOR interest until December 31, 2023, and (ii) thereafter, 12 months Term SOFR as published in the first trading day of each year by CME Group, or by any other party authorized by the Federal Reserve, or in alternative publication by the Bank of Israel, with the addition of 0.71513%; the interest applicable to grants received on or after January 1, 2024 is 12 months Term SOFR as published in the first trading day of each year by CME Group, or by any other party authorized by the Federal Reserve, or in alternative publication by the Bank of Israel).

The R&D Law requires that the manufacturing of IIA Products be carried out in Israel, unless the IIA provides its approval to the contrary. Such approval may only be granted under various conditions and entails repayment of increased royalties equal to up to 300% of the total grant amount, plus applicable interest, depending on the extent of the manufacturing that is to be conducted outside of Israel. In any case, IIA Products manufactured abroad carry an increase of 1% in the royalty rate.

The R&D Law also provides that know-how (and its derivatives) developed with, or that is a derivative of, funds received from the IIA and any right derived therefrom may not be transferred to third parties, unless such transfer was approved in accordance with the R&D Law. The research committee operating under the IIA may approve the transfer of know-how between Israeli entities, provided that the transferee undertakes all the obligations in connection with the R&D grant as prescribed under the R&D Law. In certain cases, such research committee may also approve a transfer of know-how outside of Israel, in both cases subject to the receipt of certain payments, calculated according to a formula set forth in the R&D Law, in amounts of up to six (6) times the total amount of the IIA grants, plus applicable interest (in case of transfer outside of Israel), and three (3) times of such total amount, plus applicable interest, (in case sufficient R&D activity related to the know how remains in Israel). Such approvals are not required for the sale or export of any products resulting from such R&D activity.

Further, the R&D Law imposes reporting requirements on certain companies with respect to changes in the ownership of a grant recipient. The grant recipient, its controlling shareholders, and foreign interested parties of such companies must notify the IIA of any change in control of the grant’s recipient or the holdings of the “means of control” of the recipient that result in an Israeli or a non-Israeli becoming an interested party directly in the recipient. The R&D Law also requires the new interested party to undertake to comply with the R&D Law. For this purpose, “control” means the ability to direct the activities of a company (other than any ability arising solely from serving as an officer or director of the company), including the holding of 25% or more of the “means of control”, if no other shareholder holds 50% or more of such “means of control.” “Means of control” refers to voting rights or the right to appoint directors or the chief executive officer. An “interested party” of a company includes a holder of 5% or more of its outstanding share capital or voting rights, its chief executive officer and directors, someone who has the right to appoint its chief executive officer or at least one director, and a company with respect to which any of the foregoing interested parties owns 25% or more of the outstanding share capital or voting rights or has the right to appoint 25% or more of the directors. Accordingly, in certain cases, any non-Israeli who acquires 5% or more of our ordinary shares may be required to notify the IIA that it has become an interested party and to sign an undertaking to comply with the R&D Law. In addition, the rules of the IIA may require additional information or representations with respect to such events.

In December 2006, Ceragon entered into an agreement with IIA to conclude our research and development grant programs sponsored by the IIA. Under the agreement, we were obligated to repay the IIA approximately $11.9 million in outstanding grants, in six semiannual installments from 2007 through 2009. During the second quarter of 2008, we paid the IIA approximately $7.4 million to retire all the debt remaining from this agreement. Nevertheless, we continue to be subject to the obligations and restrictions under the R&D Law and the IIA regulations, including regarding transfer of know-how and manufacturing outside of Israel, in respect to these grants. Following the 2006 arrangement with the IIA, Ceragon is considered as “Technological Innovation Investment-Abundant Corporation” and we can apply for grants only under non-royalty-bearing programs.

In each of 2013 and 2014 we received approval for a new R&D grant from the IIA in amounts of approximately $0.7 million and $0.9 million respectively, under a generic program (the “Generic Plan”). Additionally, and under such plan, in 2015 we received approval for new R&D grants in the amount of approximately $0.6 million, and in 2016, 2017 and 2018 we received approval for grants in a total amount for the three years, of approximately $1.4 million. In 2019 and 2020 we received approval for additional grants under the Generic Plan, in the frame of which we received a total amount of approximately $ 1.3 million. The Generic Plan has ended. The Generic Plan requires us to comply with the requirements of the R&D Law in the same manner applicable to previous grants, provided, however, that the obligation to pay royalties on sales of products based on technology or know how developed with the Generic Plan may apply, under certain conditions, to a recipient of the technology or knowhow developed with the Generic Plan, to the extent such is sold and/or transferred, while the Company’s self-sales of its products without such transfer, do not bear royalty payment obligations. In addition, we may manufacture part of the products developed under the program outside of Israel, up to the percentages declared in our applications for such grants.

In March 2014, we participated in two Magnet Consortium Programs, called “Hyper” and “Neptune” (the “Magnet Programs”), sponsored by the IIA. Under these Magnet Programs, which are intended to support innovative generic industry-oriented technologies, we cooperated with additional companies and research institutes. In the years 2016, 2017 and 2018 we received approval from the IIA for a sum of $3.8 million in aggregate, under these Magnet Programs. These two Magnet Programs have ended. The R&D Law applies to Magnet Programs, including the restrictions on transfer of know how or manufacturing outside of Israel, as described above. In addition, certain restrictions resulting from Magnet Programs’ internal agreements between the consortium members may apply.

In 2020, we joined as a member to an Industrial consortium called “WIN – Wireless Intelligent Networks Consortium” under a MAGNET consortium. The project ended. In the framework of this project, Ceragon received a grant totaling $1.2 million during the years 2020-2024.

In 2020, we signed with Ariel University a Research and License Agreement under a Magneton plan. This project has ended. In the framework of this project, we received a grant totaling $0.6 million during the years 2020-2024.

In 2021, we applied under the Promoting Applied Research in Academia (Nofar). Under this project, we supported a development plan of Ariel University and funded 10% of this plan (the IIA grants the other 90%). This plan did not call for any grant from the IIA. This project has ended.

In January 2023, we applied under the Magneton Plan with the Technion, Haifa Institute of Technology (“Technion”). This project, called “SW Managed Diplexer”, was approved by the IIA. The project started in January 2024 and is expected to end in February 2027. During 2024 and 2025 we received a grant totaling approximately $0.3 million, and we expect to receive an additional amount of approximately $0.1 during 2026.

In January 2023, we entered as a member into the Magnet Consortium Program is called “MM Production”. The total grant for this project is approximately $1.0 million (for a three-year period). So far, we have received an amount of $0.6 million, and we are expected to receive an additional amount of approximately $0.1 during 2026. The R&D Law applies to the Magnet Consortium Programs, including the restrictions on transfer of know how or manufacturing outside of Israel, as described above. In addition, certain restrictions resulting from Magnet Consortium Programs’ internal agreements between the consortium members may apply.

In February 2023, we applied under the Magneton Program with Ben-Gurion University. This program called “MESH Scheduling based AI” was approved and the total grant for it is approximately $0.2 million (for a two year-period). We have received the total grant and the project has ended.

In March 2023, we applied under the Magneton Plan with Tel-Aviv University. This program called “Fault Analysis” was approved and the total grant for it is approximately $0.2 million (for a one-year period). We have received the total grant and the project has ended.

In May 2023, we applied under the Industry Research Program for research in the D-band field. This program was approved and the total grant for it is approximately $1.0 million (for a two-year period). So far, we have received approximately $0.7 million and we are expected to receive the remaining amount during 2026.

During 2024 we applied under the Magneton Plan with Ben-Gurion University. This program, called “Identifying and classifying communication network fault locations”, was approved and the total grant for it is approximately $0.3 million (for a two year-period). The project started in March 2025. So far, we have received approximately $0.2 million.

In addition, we are part of a Horizon Europe project called Unity-6G. The UNITY-6G project aims to address energy efficiency and sustainability challenges in networked services, leveraging technologies like AI/ML, distributed ledger technologies (DLTs) to secure data exchange and build trust between parties, and via different network access technologies such as Non-Terrestrial Networks (NTNs), Non-Public Networks (NPNs), or approaches such as Open Radio Access Network (O-RAN). The project focuses on developing energy-efficient, integrated network infrastructures supporting convergence and interoperability of heterogeneous domains, including wireless networking, IoT, and mobile and distributed computing. The project started in January 2025, and we are expected to receive from the European Commission an amount of approximately $0.8 million total (for three-year period). So far, we have received approximately $0.6 million, and we are expected to receive an additional amount of approximately $0.2 during 2026.

In 2025, we applied under the Magneton Plan with Universidad Carlos III de Madrid. This program, called “Optimizing TX Power”, was approved and the total grant for is for approximately $0.4 million (for a two year-period). The project started in March 2026 and so far, we have received approximately $0.1 million.

All the above-described programs do not bear royalty payment obligations to the IIA, but may be subject to certain commercial arrangements among the participants thereof.

At the end of 2021, the publication of the LIBOR ceased, and alternative interests were applied throughout the worldwide economy, including the SOFR interest. The interest applicable to grants received on or after January 1, 2024 is 12 months Term SOFR as published in the first trading day of each year by CME Group, or by any other party authorized by the Federal Reserve, or in alternative publication by the Bank of Israel, with the addition of 0.71513%.

With respect to Siklu, between the years 2008-2020, Siklu received grants from the IIA in the total amount of approximately $14.6 million (approximately $16.4 million, including interest) for 20 files under a royalty-bearing program. So far, Siklu has reported to the IIA royalties in the amount of approximately $9.1 million and has paid to the IIA royalties in the amount of approximately $7.1 million. Accordingly, as of December 31, 2025, Siklu's debt to the IIA amounts to approximately $2.6 million. In 2023, Siklu agreed with the IIA to pay its past debt in monthly payments over a 5-year period, with the first payment being approximately $0.1 million and the remaining payments being $30,000 per month, after which the remaining debt shall be immediately repaid.

In addition, Siklu has also received from the European Commission (under the Horizon Europe program) a total amount of $2.2 million for four non-royalty-bearing programs (called “5G-PHOS”, “THOR” , “5G-COMPLETE” and “Int5Gent”), which have ended, and an amount of $0.37 million for one non-royalty-bearing program (called “PARALIA”), which is still active. An additional amount of approximately $0.1 million is expected to be received from the European Commission for the program “PARALIA”.

C. Organizational Structure

We are an Israeli company that commenced operations in 1996. The following is a list of our significant subsidiaries:

Company	Place of Incorporation	Ownership Interest
Ceragon Networks, Inc.	New Jersey	100	%
Ceragon Networks (India) Private Limited	India	100	%

D. Property, Plants and Equipment

Our corporate headquarters and principal administrative, finance, R&D and operations departments are located at Rosh Ha’Ain, Israel, at which we hold a leased facility of approximately 66,600 square feet of office space and approximately 5,800 square feet of warehouse space.

We also lease approximately 22,089 square feet of office space and warehouse space in Plano, Texas, USA.

We also lease space for other local subsidiaries to conduct pre-sales and marketing activities, R&D activities and other operations in their respective regions, as well as co-working spaces.

ITEM 4A.

UNRESOLVED STAFF COMMENTS

Not applicable.

ITEM 5.

OPERATING AND FINANCIAL REVIEW AND PROSPECTS

The following discussion and analysis should be read in conjunction with our consolidated financial statements, the notes to those financial statements, and other financial data that appear elsewhere in this annual report. In addition to historical information, the following discussion contains forward-looking statements based on current expectations that involve risks and uncertainties. Actual results and the timing of certain events may differ significantly from those projected in such forward-looking statements due to a number of factors, including those set forth in “Risk Factors” and elsewhere in this annual report. Our consolidated financial statements are prepared in conformity with U.S. GAAP.

For a discussion of our results of operations for the year ended December 31, 2024, including a year-to-year comparison between 2023 and 2024, and a discussion of our liquidity and capital resources for the year ended December 31, 2023, refer to Item 5. “Operating and Financial Review and Prospects” in our Annual Report on Form 20-F for the year ended December 31, 2024, filed with the SEC on March 25, 2025.

A. Operating Results

Overview

We are the number one wireless transport specialist in terms of unit shipments and global distribution of our business. We provide wireless transport solutions that enable cellular operators and other wireless service providers to serve a broad range of use-cases, including mobile broadband, fixed broadband, Industrial and other IoT services. Our solutions use microwave and millimeter wave technology to transfer large amounts of telecommunication traffic between base stations and small/distributed cells and the core of the service provider’s network.

We also provide our solutions to other non-carrier private networks such as oil and gas companies, public safety network operators, businesses and public institutions, broadcasters, energy utilities and others that operate their own private communications networks. Our solutions are deployed by more than 600 service providers, as well as more than 1,600 private network owners, in over approximately 130 countries.

Industry Trends

Market trends have placed, and will continue to place, pressure on our solutions, products and services. Our objective is to continue meeting the demand for our solutions while at the same time increasing our profitability. We seek to achieve this objective by constantly reviewing and improving our execution in, among others, development, manufacturing and sales and marketing. Set forth below is a more detailed discussion of the trends affecting our business:

•

The widespread surge in network traffic in 2020 to date emerging from the COVID-19 pandemic has significantly affected the way business and individuals access information for work and leisure. National lock-ins for large parts of the population and labor market trends brought many businesses to exercise company-wide work-from-home activities with massive use of video conferencing and cloud network communication. Entire families stay longer at home and extensively consume video streaming and online gaming, along with video chats with friends and relatives. The result is an increase in broadband demand. Some countries, even developed ones, lack broadband communication networks in rural areas. As a result, service providers are required to increase network investment to match the network capabilities to the surge in broadband demand. We anticipate that the increase in network traffic which service providers experienced amidst the pandemic will remain and may even increase, as companies and employees adapt to broader use of telecommuting, and families adopt higher use of video calls/chats as larger portions of the world population, young and elderly alike, use highly visual remote communication tools and high-volume communication transactions.

•

5G enables operators to enhance their services portfolio with more use cases such as enhanced mobile broadband (eMBB) delivering gigabit broadband, as well as address new market segments such as IoT & IIoT and mission critical applications with URLLC (Ultra Reliable Low Latency Communications) and mMTC (Massive Machine Type Communications) services. Those services, combined with new network architectures require higher capacity, lower latency networks and in particular higher transport capacity, far denser macro cells and small/distributed cells grids and the implementation of network virtualization technologies and architectures, namely network slicing using SDN. Our wireless transport solutions resolve both higher capacity, lower latency and network densification requirements with advanced capabilities, based on our multicore technology for microwave narrowband spectrum (up to 224Mhz) and the use of wider bands in millimeter-wave spectrum, up to 2,000MHz. Network virtualization requirements are addressed with layer 3 capabilities and SDN support.

•

OPEN RAN transforms Radio Access Network (RAN) technology from design to operation of the network. OPEN RAN creates the possibility of an open RAN environment, with interoperability between different vendors over defined interfaces. In a legacy mobile network ecosystem, RAN is proprietary where a single vendor provides proprietary radio hardware, software, and interface to enable the mobile network to function.

•

RAN ecosystem is evolving towards proving the competitive landscape of RAN supplier ecosystem and network operators embracing the transformation. Opening up RAN horizontally brings in a new range of low-cost radio players, and it gives mobile operators a choice to optimize deployment options for specific performance requirements at a much better cost. This trend is expected to increase the size of Best-of-Breed segment (on the account of the end-to-end market segment) that Ceragon is focusing on.

•

Software Defined Networking (SDN) is a concept aimed at simplifying network operations and allowing network engineers and administrators to quickly respond to a fast-changing business environment. SDN delivers network architectures that transition networks from a world of task-specific dedicated network devices, to a world of optimization of network performance through network intelligence incorporated within network controllers performing control functions and network devices, which perform traffic (data-plane) transport. Our wireless transport solutions are SDN-ready, built around a powerful software-defined engine and can be incorporated within the SDN network architecture. Our SDN architecture is envisioned to provide a set of applications that can achieve end-to-end wireless transport network optimization by intelligently making use of the scarce network resources, such as spectrum and power consumption.

•

The emergence of distributed cells presents transport challenges that differ from those of traditional macro-cells. Distributed cells are used to provide connectivity and capacity in hot spots and underserved spots, as well as increase coordination between adjacent cells, leading to improved service level. They also significantly reduce the cost of cell-site equipment. This new architecture is forecasted to be present in a high percentage of advanced 5G network deployments. Our distributed-cells wireless transport portfolio includes a variety of compact all-outdoor solutions that provide operators with optimal flexibility in meeting their unique physical, capacity, networking, and regulatory requirements.

•

The introduction of a disaggregated model for hardware and software. This model allows better scalability, simplicity and flexibility for network operators as it offers independent elements for hardware and software, allowing the use of commercial off-the-shelf hardware, to accelerate delivery of new solutions and innovations. Different domains in the network are being opened these days, such as the Radio Access Network - OpenRAN, the Routing in the cell-sites – DCSG (Disaggregated Cell Site Router), and the Disaggregated Wireless Transport.

•

The network sharing business model is growing in popularity among mobile network operators (MNOs) who are faced with increasing competition from over-the-top players and an ever-growing capacity crunch. Network sharing can be particularly effective in the transport portion of mobile networks, especially as conventional macro cells evolve into super-sized macro sites that require exponentially more bandwidth for wireless transport. It has become abundantly clear that in these new scenarios, a new breed of wireless transport solutions with a significant investment is required. Our wireless transport solutions support network sharing concepts by addressing both the ultra-high capacities required for carrying multiple operator traffic, as well as the policing for ensuring that each operator’s service level agreement is maintained.

•

While green-field deployments tend to be all IP-based, the overwhelming portion of network infrastructure investments goes into upgrading, or “modernizing” existing cell-sites to fit new services with a lower total cost of ownership. Modernizing is more than a simple replacement of network equipment. It helps operators build up a network with enhanced performance, capacity and service support. For example, Ceragon offers a variety of innovative mediation devices that eliminate the need to replace costly antennas, which are already deployed. In doing so, we help our customers to reduce the time and the costs associated with network upgrades. The result: a smoother upgrade cycle, short network down-time during upgrades and faster time to revenue.

•

A growing market for non-mobile transport applications which includes: offshore communications for the oil and gas industry, as well as the shipping industry, which require a unique set of solutions for use on moving rigs and vessels; broadcast networks that require robust, highly reliable communication for the distribution of live video content either as a cost efficient alternative to fiber, or as a backup for fiber installations; and Smart Grid networks for utilities, as well as local and national governments that seek greater energy efficiency, reliability and scale.

•

A growing demand for high capacity, IP-based long-haul solutions in emerging markets where telecom and broadband infrastructure, such as fiber, is lacking. This demand is driven by the need of service providers to connect more communities in order to bridge the digital divide, using 4G and even 5G services.

•

Subscriber growth continues mainly in emerging markets such as India, Africa and Latin America, but is getting close to saturation.

•

The adoption of AI across the telecommunications industry is accelerating and is expected to be a key driver of future network evolution, particularly in the context of 5G and emerging 6G architectures. Industry participants are increasingly incorporating AI capabilities into network infrastructure to enable enhanced automation, real-time optimization, predictive maintenance, and improved energy efficiency. These developments are contributing to the transition toward more autonomous, software-driven, and programmable networks, including the emergence of AI-native and AI-assisted radio access network (“RAN”) architectures. As operators seek to manage growing data traffic, complexity, and performance requirements, demand is increasing for solutions that integrate AI across network planning, deployment, and operations.

In parallel, the rapid growth of AI-driven applications, particularly those requiring real-time inference, such as generative AI, autonomous systems, and immersive digital experiences, is expected to materially increase network requirements, including higher capacity, lower latency, and more distributed compute capabilities. This is driving increased adoption of edge computing architectures and placing greater emphasis on network reliability, uplink performance, and deterministic latency. As a result, telecommunications operators and enterprises operating private networks are investing in next-generation infrastructure capable of supporting these workloads, while also expanding the use of AI beyond core network functions into customer-facing applications, enterprise services, and internal operations. The adoption of AI also introduces new considerations, including regulatory compliance, data privacy, cybersecurity, and governance requirements, which may influence the pace and structure of AI-related investments across the sector.

We are also experiencing pressure on our sale prices as a result of several factors:

•

Increased competition. Our target market is characterized by vigorous, worldwide competition of large and aggressive competitors for market share and rapid technological development. These factors have resulted in aggressive pricing practices and downward pricing pressures and growing competition.

•

Regional pricing pressures. A significant portion of our sales derives from India, in response to the rapid build-out of cellular networks in that country. For the years ended December 31, 2025 and 2024, 34.4% and 42.5%, respectively, of our revenues were earned in India. Sales of our products in these markets are usually at lower gross margins in comparison to other regions.

As we continue to focus on operational improvements, these price pressures may have a negative impact on our gross margins.

As part of our business, we are engaged in supplying installation and other services for our customers, often in emerging markets. In this context, we may act as the prime contractor and equipment supplier for network build-out projects, providing installation, supervision and commissioning services required for these projects, or we may provide such services and equipment for projects handled by system integrators. In such cases, we typically bear the risks of loss and damage to our products until the customer has issued an acceptance certificate upon successful completion of acceptance tests. If our products are damaged or stolen, or if the network we install does not pass the acceptance tests, the end user or the system integrator, as the case may be, could delay payment to us and we would incur substantial costs, including fees owed to our installation subcontractors, increased insurance premiums, transportation costs and expenses related to repairing or manufacturing the products. Moreover, in such a case, we may not be able to repossess the equipment, thus suffering additional losses. Also, these projects are rollout projects, which involve fixed-price contracts. We assume greater financial risks on fixed-price projects, which routinely involve the provision of installation and other services, versus short-term projects, which do not similarly require us to provide services or require customer acceptance certificates in order for us to recognize revenue. In addition, as most of our deliveries occur before we are able to collect the consideration for such projects, it poses further financial and customer credit risk, as well as collection and liquidity risks of such customers.

Results of Operations

Revenues. We generate revenues primarily from the sale of our products, and, to a lesser extent, services. The final price to the customer may largely vary based on various factors, including but not limited to the size of a given transaction, the geographic location of the customer, the specific application for which products are sold, the channel through which products are sold, the competitive environment and the results of negotiation.

Cost of Revenues. Our cost of revenues consists primarily of the prices we pay contract manufacturers for the products they manufacture for us, the costs of off the shelf parts, accessories and antennas, the costs of our manufacturing and operations facilities, estimated and actual warranty costs, costs related to management of our manufacturers’ activity and procurement of our proprietary and other product parts, supply chain and shipping, as well as inventory write-off costs and amortization of intangible assets. In addition, we pay salaries and related costs to our employees and fees to subcontractors relating to installation, maintenance, and other professional services.

Significant Expenses

Research and Development Expenses, net. Our research and development expenses, net of government grants, consist primarily of salaries and related costs for research and development personnel, subcontractors’ costs, costs of materials, costs of R&D facilities and depreciation of equipment. All of our research and development costs are expensed as incurred, except for development expenses, which are capitalized in accordance with ASC 985-20 and ASC 350-40. We believe that continued investment in research and development is essential to attaining our strategic objectives.

Sales and Marketing Expenses.Our sales and marketing expenses consist primarily of compensation and related costs for sales and marketing personnel, trade show and exhibit expenses, travel expenses, commissions and promotional materials.

General and Administrative Expenses.Our general and administrative expenses consist primarily of compensation and related costs for executive, finance, information system and human resources personnel, professional fees (including legal and accounting fees), insurance, provisions for credit loss (doubtful debts) and other general corporate expenses.

Restructuring and related charges.Restructuring expenses consist primarily of costs associated with reduction in workforce, consolidation of excess facilities, termination of contracts and the restructuring of certain business functions. Restructuring and related expenses are reported separately in the consolidated statements of operations.

Acquisition and integration-related charges. Acquisition-related expenses include those expenses related to acquisitions that would otherwise not have been incurred by the Company, including professional and services fees, such as legal, audit, consulting, paying agent and other fees. Acquisition-related costs are not included as components of consideration transferred but are accounted for as expenses in the period in which the costs are incurred.

Integration-related expenses represent incremental costs related to combining the Company and its business acquisitions, primarily third-party consulting and other third-party services related to merging the previously separate companies' systems and processes.

Financial and other expenses, net. Our financial and other expenses, net, consist primarily of gains and losses arising from the re-measurement of transactions and balances denominated in non-dollar currencies into dollars, gains and losses from our currency hedging activity, interest paid on bank loans and factoring activities, holdback amount fair value adjustments other fees and commissions paid to banks, actuarial losses and other expenses.

Taxes. Our taxes on income consist of current corporate tax expenses in various locations and changes in tax deferred assets and liabilities, as well as reserves for uncertain tax positions.

Critical Accounting Estimates

Our consolidated financial statements are prepared in accordance with generally accepted accounting principles in the U.S (“U.S. GAAP”). These accounting principles require management to make certain estimates, judgments and assumptions based upon information available at the time they are made, historical experience and various other factors that are believed to be reasonable under the circumstances. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities as of the date of the financial statements, as well as the reported amounts of revenues and expenses during the periods presented.

Our management believes the accounting policies that affect its more significant judgments and estimates used in the preparation of its consolidated financial statements and which are the most critical to aid in fully understanding and evaluating our reported financial results include the following:

•

Revenue recognition;

•

Inventory valuation; and

•

Business combination.

Revenue recognition We generate revenues from selling products and services to end users, distributors, system integrators and original equipment manufacturers (“OEM”). The Company recognizes revenue when (or as) it satisfies performance obligations by transferring promised products or services to its customers in an amount that reflects the consideration the Company expects to receive. The Company applies the following five steps: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied.

The Company considers customer purchase orders, which in some cases are governed by master sales agreements, to be the contracts with a customer. For each contract, the Company considers the promise to transfer tangible products, software products and licenses, network roll-out, professional services and customer support, each of which are distinct, to be the identified performance obligations. In determining the transaction price, the Company evaluates whether the price is subject to any variable consideration, to determine the net consideration which the Company expects to receive. As the Company’s standard payment terms are less than one year, the contracts have no significant financing component. The Company allocates the transaction price to each distinct performance obligation, based on their relative standalone selling price. Revenue from tangible products is recognized when control of the product is transferred to the customer (i.e., when the Company’s performance obligation is satisfied).

The revenues from customer support and extended warranty are recognized ratably over the contract period and the costs associated with these contracts are recognized as incurred. Revenues from network roll-out and professional services are recognized when the Company's performance obligation is satisfied, usually upon customer acceptance.

The Company accounts for rebates and stock rotations provided to customers as variable consideration, based on historical analysis of credit memo data, rebate plans and stock rotation arrangements, as a deduction from revenue in the period in which the revenue is recognized.

Inventory valuation. Our inventories are stated at the lower of cost or realizable net value. Cost is determined by using the moving average cost method. At each balance sheet date, we evaluate our inventory balance for excess quantities and obsolescence. This evaluation includes an analysis of slow-moving items and sales levels by product and projections of future demand. If needed, we write off inventories that are considered obsolete or excessive. If future demand or market conditions are less favorable than our projections, additional inventory write-offs may be required and would be reflected in cost of revenues in the period the revision is made.

Business Combination. We apply the provisions of ASC 805, “Business Combination,” and we allocate the fair value of purchase consideration to the tangible assets acquired, liabilities assumed, and intangible assets acquired based on their estimated fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. When determining the fair values of assets acquired and liabilities assumed, management makes significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from customer relationships, acquired technology and acquired trademarks from a market participant perspective, useful lives and discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. Acquisition-related expenses are recognized separately from the business combination and are expensed as incurred.

Impact of recently adopted accounting standards

The Company has reviewed recent accounting pronouncements and concluded that they are either not applicable to its business or that no material effect is expected on the consolidated financial statements as a result of their future adoption (see Note 2 of our audited consolidated financial statements).

Comparison of Period to Period Results of Operations

The following table presents a consolidated statement of operations data for the periods indicated as a percentage of total revenues.

	Year Ended December 31
	2025			2024
Revenues		100	%		100	%
Cost of revenues		66.2			65.3
Gross profit		33.8			34.7
Operating expenses:
Research and development, net		9.0			8.9
Sales and marketing		14.4			11.3
General and administrative		7.2			3.6
Restructuring and related charges		1.1			0.4
Acquisition and integration-related charges		-			0.4
Other operating expenses		-			0.3
Total operating expenses		31.7			24.9
Operating income		2.1			9.8
Financial expenses and others, net		1.9			2.9
Taxes on income		0.8			0.8
Net Income (Loss)		(0.6	)%		6.1	%

Year ended December 31, 2025 compared to year ended December 31, 2024

Revenues. Revenues totaled $338.7 million in 2025 as compared to $394.2 million in 2024, a decrease of $55.5 million, or 14.1%. Revenues in North America increased to $112.8 million in 2025, from $89.9 million in 2024. Revenues in India decreased to $116.7 million in 2025, from $167.6 million in 2024. Revenues in EMEA decreased to $49.3 million in 2025, from $65.0 million in 2024. Revenues in Latin America decreased to $30.4 million in 2025, from $37.2 million in 2024. Revenues in APAC decreased to $29.7 million in 2025, from $34.5 million in 2024. The acquisition of E2E by way of merger at the beginning of 2025 contributed to our revenue.

Cost of Revenues. Cost of revenue totaled $224.2 million in 2025 as compared to $257.3 million in 2024, a decrease of $33.2 million, or 12.9%. The decrease was primarily due to a decrease of $35.5 million related to material costs, mainly resulted from the lower volume of revenues, a decrease of $1.1 million related to salaries and employee-related expenses, a decrease of $0.8 million in shipping and storage costs (net of increase in cost), offset by an increase of $3.2 million in service costs, an increase of $1.0 of million in Amortization of intangibles and increase of $0.1 in other Expenses. Our cost of revenue includes the impact of the acquisition of E2E by way of merger at the beginning of 2025.

Gross Profit. Gross profit decreased to $114.6 million or 33.8% as a percentage of revenues in 2025 from $136.9 million or 34.7% in 2024. This decrease in gross profit is mainly attributable to the decline in revenues compared to the prior year, partially offset by better regional mixture with increase in revenues from North America and reduction in revenues from India, tight control over general operational costs, and improved supply chain costs.

Research and Development Expenses, Net. Our net research and development expenses totaled $30.4 million in 2025 as compared to $35.0 million in 2024, resulting in a decrease of $4.5 million, or 12.9%. The decrease was primarily due to a decrease of $4.7 million in salaries and related expenses, and was offset by an increase of $0.2 others research and development expenses. Our research and development expenses include the impact of the acquisition of E2E by way of merger at the beginning of 2025.

Our research and development efforts are a key element of our strategy and are essential to our success. We intend to maintain or slightly increase our commitment to research and development, and an increase or a decrease in our total revenue would not necessarily result in a proportional increase or decrease in the levels of our research and development expenditures. As a percentage of revenues, research and development expenses represent 9.0% and 8.9% in 2025 and 2024.

Sales and Marketing Expenses. Sales and marketing expenses totaled $48.7 million in 2025, as compared to $44.7 million in 2024, an increase of $4.0 million, or 8.9%. The increase was primarily attributed to an increase of $2.5 million in salaries and related expenses, an increase of $0.6 million in travel costs, an increase of $0.3 million in software and hardware maintenance, an increase of $0.3 million in depreciation expenses, and an increase of $0.3 million in other sales and marketing expenses. Our sales and marketing expenses include the impact of the acquisition of E2E by way of merger at the beginning of 2025.

General and Administrative Expenses. General and administrative expenses totaled $24.4 million in 2025 as compared to $14.2 million in 2024, an increase of $10.2 million, or 71.5%. The increase was primarily attributed to a change of $9.3 million in credit loss expenses. The change in credit loss expenses was mainly attributed to the fact that 2024 included a recovery of $9.1 million from a single customer in Latin America, which significantly reduced credit loss expenses in that period. In addition, there was an increase of $1.1 million in information technology (IT) related costs, an increase of $0.4 million in depreciation expenses, and an increase of 0.6 million in other general and administrative expenses, offset by a decrease of $0.8 million in salary and employee-related expenses, and a decrease of $0.4 million in audit and consulting fees. As a percentage of revenues, general and administrative expenses were 7.2% in 2025 compared to 3.6% in 2024. Our general and administrative expenses include the impact of the acquisition of E2E by way of merger at the beginning of 2025.

Restructuring and related charges.Restructuring and related charges totaled $3.7 million in 2025, as compared to $1.4 million in 2024. The increase was primarily attributed to contractual and termination severance pay and other related costs for the impacted employees. These expenses are not incurred on a consistent basis and may vary from period to period depending on the scope and nature of restructuring programs implemented.

Acquisition and integration-related charges. Acquisition and integration-related charges totaled $0.1 million in 2025, as compared to $1.7 million in 2024. The expenses in 2024 were primarily related to the acquisition and integration of Siklu, while in 2025 they were primarily related to the acquisition of E2E. The decrease included a $1.2 million reduction in integration-related expenses, partially offset by a $0.2 million increase in acquisition-related professional and services fees. In addition, the Company recorded a $0.6 million favorable adjustment to the earn-out liability related to the E2E acquisition in 2025, compared to no such adjustment in 2024.

Other operating expenses.Other operating expenses totaled $0.0 million in 2025, as compared to $1.2 million in 2024, related to the provision for the settlement of a class action claim (see Note 1C of our audited consolidated financial statements).

Financial and other expenses, Net. Financial expenses and others, net totaled $6.5 million in 2025 as compared to $11.5 million in 2024, a decrease of $4.9 million, or 43.0%. The decrease was mainly attributed to a favorable change of $3.5 million related to mark-to-market revaluation of acquisition-related holdback liability, which resulted in income in 2025 compared to expenses in 2024, a decrease of $1.2 million in interest on loans and factoring fees, a decrease of $0.1 million in exchange rate differences, and a decrease of $0.1 million in other financial expenses. As a percentage of revenues, financial and other expenses, net, were 1.9% in 2025 compared to 2.9% in 2024.

Taxes on income. Tax expenses were $2.8 million in 2025, compared to $3.2 million in 2024, resulting in a decrease of $0.4 million. Taxes on income are dependent upon where our profits are generated, such as the location and taxation of our subsidiaries. The decrease primarily reflects reduced profitability.

Net Income. In 2025, the Company had a net loss of $2.1 million compared to a net income of $24.1 million in 2024. As a percentage of revenues, net loss was (0.6%) in 2025 compared to a net income of 6.1% in 2024.

Impact of Currency Fluctuations

The majority of our revenues are denominated in U.S. dollars, and to a lesser extent, in INR (Indian Rupee), Euro, and in other currencies. Our cost of revenues is primarily denominated in U.S. dollars as well, while a major part of our operating expenses is in New Israeli Shekel (NIS), and to a lesser extent, in Indian INR (Indian Rupee), Euro, NOK (Norwegian Kroner), BRL (Brazilian Real) and other currencies. We anticipate that a material portion of our operating expenses will continue to be in NIS.

Fluctuation in the exchange rates between any of these currencies (other than U.S. dollars) and the U.S. dollar could significantly impact our results of operations as well as the comparability of these results in different periods. Even in cases where our revenues or our expenses in a certain currency are relatively modest, high volatility of the exchange rates with the U.S. dollar can still have a significant impact on our results of operations. For example, in recent years we have suffered a significant adverse impact on our financial results due to fluctuation in the exchange rates of the U.S. dollar compared to the INR (Indian Rupee), New Israeli Shekel (NIS), NOK (Norwegian Kroner), NGN (Nigerian Naira) and the ARS (Argentine Peso). We partially reduce currency exposure to NIS by entering into hedging transactions and may do so for other currencies in the future. The effects of foreign currency re-measurements are reported in our consolidated statements of operations. For a discussion of our hedging transactions, please see Item 11.”QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK”.

The influence on the U.S. dollar cost of our operations in Israel relates primarily to the cost of salaries in Israel, which are paid in NIS and constitute a substantial portion of our expenses in NIS. In 2025, the U.S. dollar appreciated in relation to the NIS at a rate of -12.5%, from NIS 3.647 per $1 on December 31, 2024, to NIS 3.19 per $1 on December 31, 2025. In 2024, the U.S. dollar appreciated in relation to the NIS at a rate of 0.6%, from NIS 3.627 per $1 on December 31, 2023, to NIS 3.647 per $1 on December 31, 2024.

The annual rate of inflation in Israel was 2.6% in 2025 and 3.2% in 2024.

Transactions and balances in currencies other than U.S. dollars are re-measured into U.S. dollars according to the principles in ASC Topic 830, “Foreign Currency Matters.” Gains and losses arising from re-measurement are recorded as financial income or expense, as applicable.

Effects of Government Regulations and Location on the Company’s Business

For a discussion of the effects of governmental regulation and our location in Israel on our business, see Item 3. “KEY INFORMATION” – Risk Factors – “Risks Relating to Operations in Israel”.

Additionally, due to the nature of our global presence and operations, we are subject to the law and jurisdiction in the countries where our branches or subsidiaries are located or in which we conduct our operations. For a discussion of the effects of governmental regulation and our global spread and operation of our business, see Item 3. “KEY INFORMATION” – Risk Factors – “We are subject to complex and evolving regulatory requirements that may be difficult and expensive to comply with and that could adversely impact our business, results of operations and financial condition”, “As part of our business are located throughout Europe, we are exposed to the negative impact of invasion of Ukraine by Russia on the European markets in which we operate and on our operations”, “Our international operations expose us to the risk of fluctuations in currency exchange rates and restrictions related to foreign currency exchange controls” and “Due to the volume of our sales in emerging markets, we are susceptible to a number of political, economic and regulatory risks that could have a material adverse effect on our business, reputation, financial condition and results of operations. This includes the business practices in such emerging markets, that may expose us to legal and business conduct-related regulatory risks”.

B.	Liquidity and Capital Resources

Since our initial public offering in August 2000, we have financed our operations primarily through the proceeds of that initial public offering, proceeds from exercise of stock options, follow-on offerings, cash provided by operating activities, and various loans and facilities from banks, including factoring and grants from the IIA.

The Company entered into the revolving Credit Facility, dated as of March 14, 2013 by and among the Company and Bank Hapoalim B.M., HSBC Bank Plc, Bank Leumi Le’Israel Ltd. and First International Bank of Israel Ltd. (the “Credit Facility”). The Credit Facility has been renewed and amended several times during the past years according to the Company’s needs and financial position.

In June 2023, the Company signed an amendment to the Credit Facility pursuant to which the term of the Credit Facility was extended by additional year to June 30, 2024. This amendment also included an increase of $9.8 million to $72 million to the Credit Facility for Loans and a decrease of $11.9 million to the bank guarantees credit lines to $45.9 million.

In December 2023, in connection with the acquisition of Siklu, the Company signed an amendment to the Credit Facility in which it obtained the approval of the syndication of banks to carry out Siklu's acquisition and added additional bank, Bank Mizrahi Tefahot Ltd., to the syndication agreement. This amendment also included an increase of $5 million to $77 million to the Credit Facility for Loans.

In June 2024, the Company signed an amendment to the Credit Facility pursuant to which the term of the Credit Facility was extended by an additional 2 years to June 30, 2026. This amendment also included a decrease of $5 million to the bank guarantees credit lines to $40.9 million.

As of December 31, 2025, the Company has utilized $19.0 million of the $77 million available under the Credit Facility for short-term loans. During 2025, the credit lines carried interest rates in the range of 4.94% and 6.44%.

As of December 31, 2025, the total credit facilities for bank guarantees and for loans is $117.9 million.

The Credit Facility is secured by a floating charge over all Company assets as well as several customary fixed charges on specific assets.

Repayment could be accelerated by the financial institutions in certain events of default including in insolvency events, failure to comply with financial covenants or an event in which a current or future shareholder acquires control (as defined under the Israel Securities Law) of the Company.

The Credit Facility contains financial and other covenants requiring that the Company maintains, among other things, minimum shareholders' equity value and financial assets, a certain ratio between its shareholders' equity (excluding total intangible assets and goodwill) and the total value of its assets (excluding total intangible assets and goodwill) on its balance sheet, a certain ratio between its net financial debt to each of its working capital and accounts receivable. As of December 31, 2025 and 2024, the Company met all of its covenants.

As of December 31, 2025, we had approximately $38.4 million in cash and cash equivalents.

In 2025, our $31.6 million in cash provided by operating activities was affected by the following principal factors:

Net loss of $2.1 million;

•

$43.7 million decrease in trade and other accounts receivable and prepaid expenses, net;

•

$14.3 million of depreciation and amortization expenses;

•

$4.6 million decrease in operating lease right-of-use assets; and

•

$4.1 million share-based compensation expenses.

These factors were offset mainly by:

•

$27.1 million decrease in trade and other accounts payable and accrued expenses, net;

•

$3.1 million decrease in operating lease liability;

•

$2.1 million increase in inventories;

•

$0.6 million decrease in accrued severance pay and pensions, net; and

•

$0.2 million decrease in deferred revenues.

In 2024, our $26.2 million in cash provided by operating activities was affected by the following principal factors:

•

Net income of $24.1 million;

•

$26.9 million increase in trade and other accounts payable and accrued expenses, net;

•

$12.1 million of depreciation and amortization expenses;

•

$7.6 million decrease in inventories;

•

$4.6 million decrease in operating lease right-of-use assets;

•

$4.3 million share-based compensation expenses; and

•

$0.3 million of loss from sale of property and equipment, net.

These factors were offset mainly by:

•

$44.9 increase in trade and other accounts receivable and prepaid expenses, net;

•

$4.2 million decrease in operating lease liability;

•

$3.6 million decrease in deferred revenues; and

$1.0 million decrease in accrued severance pay and pensions, net

Net cash used in investing activities was approximately $24 million for the year ending December 31, 2025, as compared to net cash used in investing activities of approximately $16.5 million for the year ended December 31, 2024. In the year ended December 31, 2025, our investing activities were comprised of $13.6 million paid for purchases of property and equipment, $6.6 million paid as cash consideration for the acquisition of E2E, and $3.8 million of software development costs capitalized. In the year ended December 31, 2024, our investing activities were comprised of $14.6 million paid for purchases of property and equipment and $1.9 million of software development costs capitalized.

Net cash used in financing activities was approximately $5.5 million for the year ended December 31, 2025, as compared to approximately $1.5 million net cash used in financing activities for the year ending December 31, 2024. In the year ended December 31, 2025, our net cash used in financing activities was primarily due to repayments of bank credits and loans of $6.2 million offset by proceeds from exercise of stock options of $0.7 million. In the year ended December 31, 2024, our net cash used in financing activities was primarily due to repayments of bank credits and loans of $7.4 million offset by proceeds from exercise of stock options of $5.9 million.

Our material cash requirements as of December 31, 2025, and any subsequent interim period, primarily include our capital expenditures, lease obligations and purchase obligations.

Our capital expenditure primarily consists of purchases of manufacturing and test equipment, computers and peripheral equipment, office furniture and equipment. Our capital expenditures were $13.6 million in 2025, $14.6 million in 2024 and $10.0 million in 2023. We will continue to make capital expenditures to meet the expected growth of our business.

During the normal course of business, we enter into certain lease contracts with lease terms through 2034. As of December 31, 2025, the total remaining contractual obligations are approximately $17.7 million, of which $4.9 million is for the next 12 months. Our lease obligations consist of the commitments under the lease agreements for offices and warehouses for our facilities worldwide, as well as car leases. Our facilities are leased under several lease agreements with various expiration dates. Our leasing expenses were $4.5 million in 2025, $4.6 million in 2024, and $4.0 million in 2023.

Our purchase obligations consist primarily of commitments for our operating activities and working capital needs. Our operating expenses were $107.3 million in 2025, $98.1 million in 2024 and $98.7 million in 2023. As of December 31, 2025, the Company had outstanding inventory purchase orders with its suppliers in the amount of $18.2 million.

Our capital requirements are dependent on many factors, including working capital requirements to finance the business activity of the Company, and the allocation of resources to research and development, marketing and sales activities. We plan on continuing to raise capital as we may require, subject to changes in our business activities.

We believe that the current working capital, cash and cash equivalent balances together with the Credit Facility available with the five financial institutions, will be sufficient for our expected requirements through at least the next 12 months.

C.	Research and Development, Patents and Licenses, Etc.

We place considerable emphasis on research and development to improve and expand the capabilities of our existing products, to develop new products (with particular emphasis on equipment for emerging IP-based networks) and to lower the cost of producing both existing and future products. We intend to continue to devote a significant portion of our personnel and financial resources to research and development. As part of our product development process, we maintain close relationships with our customers to identify market needs and to define appropriate product specifications. In addition, we intend to continue to comply with industry standards and, in order to participate in the formulation of European standards, we are full members of the European Telecommunications Standards Institute.

Our research and development activities are conducted mainly at our facilities in Rosh Ha’Ayin, Israel, and also at our sites in Greece, Romania and India (Bangalore). As of December 31, 2025, our research, development and engineering staff consisted of 257 employees globally. Our research and development team includes highly specialized engineers and technicians with expertise in the fields of millimeter-wave design, modem and signal processing, data communications, system management and networking solutions.

The IIA sometimes participate in our R&D funding for our Israel-based company. For more information regarding the restrictions imposed by the R&D Law and regarding grants received by us from the IIA, please see Item 4. “INFORMATION ON THE COMPANY- B. Business Overview - The Israel Innovation Authority.”

Our research and development department provides us with the ability to design and develop most of the aspects of our proprietary solutions, from chip-level, including both ASICs and RFICs, to full system integration. Our research and development projects currently in process include extensions to our leading IP-based networking product lines and development of new technologies to support future product concepts. In addition, our engineers continually work to redesign our products with the goal of improving their manufacturability and testability while reducing costs.

Intellectual Property

For a description of our intellectual property see Item 4. “INFORMATION ON THE COMPANY – B. Business Overview - Intellectual Property”.

D.	Trend Information

For a description of the trend information relevant to us see discussions in Parts A and B of Item 5. “OPERATING AND FINANCIAL REVIEW AND PROSPECTS”.

E.	Critical Accounting Estimates

See Item 5 “Critical Accounting Policies and Estimates” above.

Effect of Recent Accounting Pronouncements

See Note 2, Significant Accounting Policies, in Notes to the Consolidated Financial Statements in Item 8 of Part II of this Report, for a full description of recent accounting pronouncements, including the expected dates of adoption and estimated effects on financial condition and results of operations, which is incorporated herein by reference.

ITEM 6.

DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES

A.	Directors and Senior Management

The following table lists the name, age and position of each of our current directors and executive officers:

Name	Age	Position
Ilan Rosen⁽¹⁾	68	Chairman of the Board of Directors
Shlomo Liran ⁽¹⁾	74	Director
Efrat Makov ⁽¹⁾	58	Director
Rami Hadar ⁽¹⁾	62	Director
David (Dudi) Ripstein ⁽¹⁾	59	Director
Robert Wadsworth⁽¹⁾	65	Director
Yael Shaham ⁽¹⁾	57	Director
Doron Arazi	62	Chief Executive Officer
Ronen Stein	58	Chief Financial Officer
Ronen Ben-Hamou	54	Chief Revenue Officer
Oz Zimerman	62	Chief Marketing Officer & EVP Corporate Development
Hadar Vismunski Weinberg	53	Chief Legal Officer & Corporate Secretary
Michal Goldstein	55	Chief People Officer
Ulik Broida	59	Chief Product Officer
Dima Friedman	57	Chief Operating Officer
Ori Shental	51	Chief Technology Officer

(1)

Independent Director.

Set forth below is a biographical summary of each of the above-named directors and members of senior management.

Ilan Rosen has served as the Chairman of our Board of Directors since July 2023, and as our director since July 2021. Mr. Rosen served as Managing Director in HarbourVest Partners LLC, a global private equity firm with more than 700 employees, that manages about $75B worth of investments in various private equity strategies around the globe. Mr. Rosen additionally serves as a board member of the “Nazareth District Water and Sewage municipal authority LTD” since 2019. From 1997-2012 Mr. Rosen served as Chairman of the Board of Tdsoft LTD which later merged into VocalTec. In the years 1996-2003 Mr. Rosen served as VP of Investments at Teledata Communications, where he was an active Chairman of various Teledata Subsidiaries. From 1993-1996 he served as the CEO of Adsha Development Ltd. From 1989-1993 Mr. Rosen worked as a Senior Investment Manager at the Bank Hapoalim Investment Company. In the years 1985-1989 he worked as an economic consultant at A. Twerski Economic Consulting. Mr. Rosen holds a B.Sc. (cum laude) in Mechanical Engineering from Tel Aviv University in 1979 and an MBA from Tel Aviv University in 1986.

Shlomo Liran has served as our director since August 2015, after gaining experience in senior management positions, including in the telecommunication industry. In October 2016 Mr. Liran was appointed as the CEO of Spuntech Industries Ltd. From July 2014 until January 2015, Mr. Liran served as the Chief Executive Officer of Hadera Paper Ltd. From 2010 to 2013, Mr. Liran served as the Chief Executive Officer of Avgol Nonwovens Ltd. During the years 2008 and 2009 Mr. Liran served as the Chief Executive Officer of Ericsson Israel Ltd., and from 2004 to 2007 he served as Chief Executive Officer of TRE (Scandinavian cellular network) in Sweden and in Denmark. From 2000 to 2003, he served as Chief Executive Officer of YES Satellite Multi-Channel TV. Prior to that, Mr. Liran spent thirteen years in Strauss as CEO (1995-2000), General Manager of the Dairy Division (1991-1995) and VP Operations (1987-1991). Mr. Liran holds a B.Sc. in Industrial Engineering from the Technion, an M. Eng. System Analysis from University of Toronto, Canada and an AMP-ISMP advanced management program from the Harvard Business School.

Efrat Makov has served as our director since October 2022. Ms. Makov is currently also serving as a director of Allot Ltd. and B Communications Ltd. Ms. Makov previously served as a director of BioLight Life Sciences Ltd., Kamada Ltd., Anchiano Therapeutics Ltd. and iSPAC 1 Ltd. During the years 2007-2010, Ms. Makov served as the CFO of Alvarion. During 2005-2007 she served as the CFO of Aladdin Knowledge Systems. During 2002-2005, Ms. Makov served as Vice President of Finance at Check Point Software Technologies and previously, during 2000-2002, as a director of finance at NUR Macroprinters Ltd. During 1993-2000 Ms. Makov spent seven years in public accounting with Arthur Andersen LLP in its New York, London and Tel Aviv offices. Ms. Makov holds a B.A. degree in accounting and economics from Tel Aviv University and is a Certified Public Accountant in Israel and the United States.

Rami Hadar has served as our director since July 2021. Mr. Hadar serves as a Managing Partner in Claridge Israel, as well as serves on the board of its portfolio companies: AlgoSec, Gigaspaces, Cloudify, Shopic and D-Fend. In the years 2006 to 2014, Mr. Hadar served as CEO and board member of Allot Communications. Earlier in his career, between 2002-2005, Mr. Hadar served as CEO of Native Networks. Prior to that, between 1997-2002, Mr. Hadar co-founded Ensemble Communications, a pioneer in the broadband wireless space and the WiMax standard, where he served as Executive Vice President, Sales and Marketing. Between the years 1990-1995 Mr. Hadar co-founded and served as the CEO of CTP Systems (micro cellular networks) until its acquisition by DSP Communications. Mr. Hadar continued with DSPC’s executive management team for two years, and subsequently the company was acquired by Intel. Mr. Hadar holds a B.Sc. in Electrical Engineering from the Technion

David Ripstein has served as our director since July 2021. Mr. Ripstein has three decades of experience in senior management positions in Israel’s telecommunications industry and Israel Defense Force technology and intelligence units. From June 2022 to January 2023 Mr. Ripstein served as the Chief Executive Officer of SatixFy Ltd. From 2017 to 2022, Mr. Ripstein served as the President and Chief Executive Officer of GreenRoad Technologies Ltd., a global leader in fleet safety telematics. In 2016 Mr. Ripstein served as the CEO of Spotoption Technologies a fintech software provider. From 2000-2015, Mr. Ripstein served in various positions in Radcom, a Nasdaq-traded (RDCM) provider of service assurance solutions, first for six years as a General Manger and then for nine years as its President & Chief Executive Officer. Prior to Radcom, between the years 1999-2000 Mr. Ripstein co-founded two technology startups and between 1989-1999 served for 10 years as the head of a large R&D engineering group within the Israel Defense Forces-Intelligence Unit. Mr. Ripstein holds a B.Sc. in Electrical Engineering from the Technion.

Robert Wadsworth has served as our director since May 2024. Mr. Wadsworth currently serves on the Board of Directors of AGL Credit Management, Whisker Labs Inc., Spiro Technologies, and Direct Commerce, and on HarbourVest supervisory committee. He serves as a founding partner of both W3 Capital, LLC, a family investment firm, and as a founding partner of New Harbour Partners, a small enterprise private equity firm, where he served in the Executive Management Committee (office of the CEO) from 2011 to 2019. From 1997 he is a founding partner of HarbourVest Partners, the successor entity of Hancock Venture Partners, where in 1986 he served as a senior partner overseeing global direct investment activity and a member of the firm's Executive Management Committee. Mr. Wadsworth’s prior experience also includes management consulting with Booz, Allen & Hamilton during 1982 to 1984, where he specialized in the areas of operations strategy and manufacturing productivity. He holds a BS (magna cum laude) in Systems Engineering and Computer Science from the University of Virginia in 1982 and an MBA (with distinction) from Harvard Business School in 1986.

Yael Shaham has served as a director of the Company since September 2023. Ms. Shaham has over 25 years of experience in executive management and strategic leadership. She currently serves on the board of directors of Clalit Health Services, where she also chairs the Technology and Innovation Board Committee, and on the board of directors of Seach Medical Group, where she serves on the Audit and Compensation Committees. Ms. Shaham previously served on the board of directors of Glassbox and as General Manager of the Enterprise Division at Kaltura. Prior to that, from 2001 to 2019, she held a number of senior leadership roles at Amdocs, including General Manager of the Network Division, the IT & Operations Division, and the Revenue Management Division. Ms. Shaham holds an M.A., cum laude, in Organizational Sociology and a B.A., summa cum laude, in Computer Science and Sociology, both from Bar-Ilan University.

Doron Arazi has served as our Chief Executive Officer since July 2021. He rejoined Ceragon after taking a year and a half break where he served as CFO of privately held software companies in the Cyber and Telecom spaces. Mr. Arazi originally joined the company in 2014 as Executive Vice President and Chief Financial Officer, and in 2016 was appointed Deputy CEO, while continuing to carry the role of Chief Financial Officer. Prior to joining Ceragon, during 2010-2014, Mr. Arazi managed the business relationship with a U.S. Tier 1 mobile operator in Amdocs and was responsible for hundreds of employees. Prior to Amdocs, Mr. Arazi looked after the financial and growth activities of other high-tech companies in the telecommunications sector, including serving as CFO of Allot Communications between 2007-2010 and VP of Finance at Verint between 2000-2007. Mr. Arazi is a CPA and holds a B.A. degree in Economics and Accounting as well as an MBA degree focusing on Finance and Insurance, both from Tel Aviv University.

Ronen Stein has served as our Chief Financial Officer since September 2022. Mr. Stein brings more than twenty years of experience as chief financial officer and leadership roles in both private and U.S. listed public companies. From 2021 to 2022 Mr. Stein served as the CFO of Siklu, an Israel based company in the telecommunications sector. Prior to that, Mr. Stein served as the CFO of 10bis from 2017 to 2021, Enercon technologies Ltd. from January 2015 to December 2015, Knock N’Lock from 2008 to 2014 and Pointer Telocation (NASDAQ:PNTR), from 2002 to 2007. Mr. Stein is a Certified Public Accountant in Israel and holds an M.B.A, as well as a B.A. degree in economics and accounting, both from Tel Aviv University.

Ronen Ben-Hamou has served as our Chief Revenue Officer since January 2026 and as our Chief Growth Officer, since December 2023. Mr. Ben-Hamou brings over 20 years of international leadership experience in C-level, general management, business, and technical executive roles in the Telecommunication and IoT industries. He has led innovation and managed large-scale international organizations focusing on system, silicon, and software development. Prior to joining Ceragon, between the years 2019-2023 Mr. Ben-Hamou served as the CEO of Siklu, a provider of multi-Gigabit “wireless fiber” connectivity in urban, suburban and rural areas. His extensive experience includes commercializing new technologies with Tier 1 customers as well as driving digital transformation across the globe. Mr. Ben-Hamou’s previous roles also included EVP of Products & Solutions and Head of Global R&D as well as EVP, of IoT Technologies & Solutions at Telit during 2015-2017. Prior to that, during 2011-2015, he held leadership positions at Ericsson, as COO & Head of R&D of their Modems business unit, ST-Ericsson as SVP & GM of Thin Modem Solutions, and Infineon Technologies as VP & GM of Entry Phone base unit. Mr. Ben-Hamou holds a B.Sc. degree in Electrical Engineering from Coventry University in the UK.

Oz Zimerman joined Ceragon in March 2013 and currently serves as our Chief Marketing Officer & EVP Corporate Development. Oz brings with him over 25 years of global executive business experience in marketing, business development and strategy. From 2008 to 2012, Mr. Zimerman was Corporate Vice President Marketing and Business Development at DSP Group, where he penetrated world leading consumer electronic customers, acquired new technology which became the main growth engine of the company, established the DECT ULE Alliance and managed relations with top executive decision makers at world leading service providers. Prior to joining DSP Group, from 1998-2006, Oz was VP Channels Sales, Business Development and Strategic Marketing at ECI Telecom, where he defined and implemented exceptional and innovative pricing approach generating sharp sales increase. Prior to his work at ECI, between 1993-1997 he was Engagement Manager at Shaldor, a leading management consulting firm. Mr. Zimerman holds a B.Sc. in Industrial Engineering & Management from NYU University (summa cum laude) and a Master of Science in Engineering and Management from Columbia University.

Hadar Vismunski-Weinbergjoined Ceragon in April 2023 and serves as Chief Legal Officer and Corporate Secretary. Ms. Vismunski-Weinberg has extensive global leadership experience. Prior to Ceragon, she served as the Bank Corporate Secretary of Bank Leumi Ltd. (2021-2022), as Vice President, Chief General Counsel and Corporate Secretary at Partner Communications Company Ltd. (2017-2021) and held various legal leadership positions at Teva Pharmaceutical Industries Ltd., including VP Legal (2007-2017). In her earlier career, Ms. Vismunski-Weinberg was a partner in an Israeli law firm specializing in commercial and corporate law. Ms. Vismunski-Weinberg holds a Bachelor of Law from The Hebrew University of Jerusalem, and is a member of the Israeli Bar Association since 1999.

Michal Goldstein has served as our Chief People Officer since March 2020. Previous to this appointment, during 2015-2020 Ms. Goldstein served as the Chief Human Resources Officer of Contentsquare, a privately held global software company. Prior to Contentsquare, during 2011-2015 Ms. Goldstein was Vice President of Human Resources Centers of Excellence at NICE Systems (Nasdaq), as well as served in various Human Resources Business Partner positions at Amdocs during 2000-2011, where she spent eleven years, including three years in the company’s Silicon Valley office. Ms. Goldstein has a background in organizational development and consulting and holds a B.A in Psychology from the University of Haifa, Israel, an M.Sc. in Organizational Psychology from the University of Nottingham, UK, and a Doctor of Management Degree from the University of Hertfordshire, UK, specializing in organizational complexity.

Ulik Broida has served as our Chief Product Officer since January 2019 and in April 2021 joined Ceragon’s executive management team as Executive Vice President Solutions Management. In February 2022, Mr. Broida also assumed the role of Executive Vice President Products. Mr. Broida is responsible for product strategy, innovation and product management, and leads the company’s Product Management and Global Sales Engineering teams to ultimately support global sales in delivering value to service providers and mission critical private networks worldwide. Commencing in February 2022, Mr. Broida also leads the products research and development from inception and design using innovative, cutting-edge technologies, all the way to high volume production. Mr. Broida brings over 21 years of experience in strategic marketing and product strategy in the Telecom and IIOT industry. Prior to joining Ceragon, between the years 2016-2019 Mr. Broida served as the VP Marketing at mPrest, where he was responsible for product management, marketing, and business development. He served as Vice President of Marketing and Business Development at RAD from 2013 to 2016 and held numerous additional VP product management roles in Wavion (2010-2013), NICE (2006-2010), Alvarion (2000-2006). Mr. Broida holds a B.Sc in Electrical Engineering from the Technion, Israel’s Institute of Technology, and a Master’s degree in Business Administration from the Tel Aviv University.

Dima Friedman joined Ceragon in 2023 and serves as Chief Operating Officer. Mr. Friedman brings with him over 28 years of experience in business operations including supply chain management, customer service, engineering and corporate quality. Prior to joining Ceragon, Mr. Friedman served as Corporate Vice President of Operations (2010-2022) at DSP Group Inc., a publicly traded global leader in wireless communication and voice processing chipsets and algorithms. Mr. Friedman joined DSP Group in 1995 and served in a number of additional capacities including responsibilities for manufacturing engineering, production test engineering, foundry and assembly technology, configuration and lifecycle management, supplier management, product quality and reliability, as well as other business functions. Prior to his extensive career at DSP Group, Mr. Friedman additionally served two years at National Semiconductor. Mr. Friedman has a BSc in Electrical Engineering from Tel Aviv University, and has completed the Senior Executive Education Program at the Coller School of Management, Tel Aviv University.

Ori Shental joined Ceragon in 2026 and serves as Chief Technology Officer. Prior to joining Ceragon, Dr. Shental served as a research lead at Qualcomm, working on 6G pre-standardization and 5G millimeter-wave network planning (2020–2025). From 2016 to 2020, he was a Member of the Technical Staff in the Communications Theory Department at Nokia Bell Labs, home to the pioneers of MIMO. Earlier in his career, he held senior R&D roles at Toga Networks (2015–2016), Qualcomm Israel (2008–2015), and served as a consultant to RADCOM (2003–2006). From 1996 to 2003, he served as an R&D officer in Israel’s elite technological unit. He has authored more than 150 peer-reviewed publications and granted patents and has received multiple awards and recognitions for excellence in research and development. Dr. Shental has been an Adjunct Professor at Columbia University since 2018. He was a Postdoctoral Fellow at the University of California, San Diego, from 2006 to 2008, and holds a B.Sc. and Ph.D. in Electrical Engineering from Tel Aviv University, earned in 1996 and 2006, respectively.

Arrangements Involving Directors and Senior Management

There are no arrangements or understandings of which we are aware relating to the election of our current directors or the appointment of current executive officers in our Company. In addition, there are no family relationships among any of the individuals listed in this Section A (Directors and Senior Management).

B.	Compensation

Aggregate Executive Compensation

During 2025, the aggregate compensation paid by us or accrued on behalf of all persons listed in Section A above (Directors and Senior Management), and other directors and executive officers who served as such during 2025, consisted of approximately $4.1 million in salary, fees, bonuses, commissions and directors’ fees and approximately $0.7 million in amounts set aside or accrued to provide pension, retirement or similar benefits, but excluding amounts expended for automobiles made available to our officers, expenses (including business travel, professional and business association dues and expenses) reimbursed to our officers and other fringe benefits commonly reimbursed under local practices or paid by companies in Israel (all the amounts were translated to USD based on exchange rate as of December 31, 2025).

We have a performance-based bonus plan, which includes our executive officers. The plan is based on our overall performance, the particular unit performance, and individual performance. A non-material portion of the performance objectives of our executive officers are qualitative. The measurable performance objectives can change year over year, and are a combination of financial parameters, such as revenues, booking, gross profit, regional operating profit, operating income, net income and collection. The plan for our executive officers is reviewed and approved by our Compensation Committee and Board of Directors annually (and with respect to our CEO, also by our shareholders), as are any bonus payments to our executive officers made under such plan.

Cash CompensationOur directors (except for Mr. Ilan Rosen, our Chairman of the Board of Directors (“Chairman”), as described below) are compensated in accordance with regulations promulgated under the Companies Law concerning the remuneration of external directors (the “Remuneration Regulations”), as amended by the Israeli Companies Regulations (Relief for Companies with Shares Registered for Trade in a Stock Exchange Outside of Israel) - 2000 (the “Foreign Listed Regulations”). Each of them is entitled to a cash compensation in accordance with the “fixed” amounts of the annual and participation fees, as set forth in the Remuneration Regulations, based on the classification of the Company according to the amount of its capital, and to reimbursement of travel expenses for participation in a meeting, which is held outside of the director’s place of residence; currently – the sum of NIS 112,000 (approximately $35,909) (based on the NIS/USD exchange ratio as published by the Bank of Israel on March 16, 2026 (the “Exchange Ratio”) as an annual fee, the sum of NIS 3,500 (approximately $1,122, based on the Exchange Ratio) as an in-person participation fee, NIS 2,100 (approximately $673, based on the Exchange Ratio) for conference call participation and NIS 1,750 (approximately $561, based on the Exchange Ratio) for written resolutions. As the above-mentioned amounts are within the range between the fixed amounts set forth in the Remuneration Regulations and the maximum amounts set forth in the Foreign Listed Regulations, they are exempt from shareholder approval, in accordance with the Israeli Companies Regulations (Relief from Related Party Transactions) – 2000 (the “Relief Regulations”). At the annual general meeting held on May 24, 2024 (“2024 AGM”), our shareholders approved an annual fee of NIS 238,000 (approximately $76,306, based on the Exchange Ratio) to our Chairman, and participation fees equal to those listed above. Additionally, at the 2024 AGM our shareholders approved that Mr. Wadsworth shall be entitled to in-person participation fees also for conference call participation, as he is our only director residing outside of Israel. These cash amounts are subject to an annual adjustment for changes in the Israeli consumer price index in accordance with the Remuneration Regulations. The above-mentioned cash compensation is in line with the Company’s compensation policy, which was most recently revised and adopted by our shareholders at the 2023 annual general meeting of the shareholders, which was held on September 6, 2023 (the “2023 AGM”), according to which each of the Company’s non-executive directors is entitled to receive cash fees which include annual and participation fees (the “Compensation Policy”). For more information, please see “Remuneration of Directors” and “The Stock Option Plan” below and Note 14 to our consolidated financial statements included as Item 18 in this annual report.

Equity Compensation. During 2025, we granted to our directors and members of our senior management detailed in Section 6.A (excluding our Region Heads, as described above) and other directors and executive officers who served as such during the year 2025, in the aggregate, options to purchase 718,488 ordinary shares, with an exercise price that ranges from $2.45 to $3.00 per share. During 2025, we granted to our directors and members of our senior management detailed in Section 6A, in the aggregate 479,254 restricted share units (“RSUs”). As of December 31, 2025, there were a total of 2,314,514 outstanding options to purchase ordinary shares and 577,087 RSUs that were held by our directors and senior management.

In addition to cash fees, as remuneration for their contribution and efforts as directors of the Company, and in line with the limitations set forth in our Compensation Policy with respect to equity-based compensation for non-executive directors, our directors received annual equity grants with respect to their three-year terms of service as directors, which was last approved to them by our shareholders at the annual general meeting held on May 15, 2025 (the “2025 AGM”), as follows:

(i) each of Efrat Makov, Yael Shaham, Robert Wadsworth, Shlomo Liran, Rami Hadar and David Ripstein, directors of the Company, receive, on an annual basis, for a period of three years, an equal mix of outstanding options to purchase ordinary shares (“Options”) and RSUs in an annual value of $75,000 (the “Annual Equity Value” and collectively the “Annual Equity Awards”). The actual number of Options and RSUs shall be determined based on the average closing price per share as quoted on the Nasdaq stock market during the 30 consecutive trading days preceding the grant date (being the date of the 2024 AGM and its first and second anniversaries). Further detailed description of the Annual Equity Awards is provided in our 2024 AGM proxy statement filed on April 18, 2024 (the “2024 Proxy Statement”). At the annual general meeting held on May 15, 2025 (“2025 AGM”), our shareholders approved an additional grant of equity to the abovementioned directors, with a similar structure as the Annual Equity Awards, with an Annual Equity Value of $33,000, that were granted at the date of the 2025 AGM and will be granted upon the first anniversary of the 2025 AGM (the “2025 Equity Awards”). Further detailed description of the 2025 Equity Awards is provided in our 2025 AGM proxy statement filed on April 10, 2025 (the “2025 Proxy Statement”).

(ii) Ilan Rosen, our Chairman, also receives Annual Equity Awards and the 2025 Equity Awards, provided that their aggregate Annual Equity Value is $162,000.

b) Individual Compensation of Office Holders

The following information describes the compensation of our five most highly compensated “officer holders” (as such term is defined in the Companies Law) with respect to the year ended December 31, 2025. The five individuals for whom disclosure is provided are referred to herein as “Covered Office Holders.” All amounts specified below are in terms of cost to the Company, translated to USD based on exchange rate as of December 31, 2025, and are based on the following components:

•

Salary Costs. Salary Costs include gross salary, benefits and perquisites, including those mandated by applicable law which may include, to the extent applicable to each Covered Office Holder, payments, contributions and/or allocations for pension, severance, car or car allowance, medical insurance and risk insurance (e.g., life, disability, accidents), phone, convalescence pay, relocation, payments for social security, and other benefits consistent with the Company’s guidelines.

•

Performance Bonus Costs. Performance Bonus Costs represent bonuses granted to the Covered Office Holder with respect to the year ended December 31, 2025, paid in accordance with the Covered Office Holder’s performance of targets as set forth in his bonus plan, and approved by the Company’s Compensation Committee and Board of Directors.

•

Equity Costs represent the expense recorded in our financial statements for the year ended December 31, 2025, with respect to equity-based compensation granted in 2025 and in previous years. For assumptions and key variables used in the calculation of such amounts see Note 2U of our audited consolidated financial statements.

•

Doron Arazi – CEO: Salary Costs - $440,909; Performance Bonus Costs - $0; Equity Costs - $360,722.

•

Ronen Rotstein⁽¹⁾– Regional President, North America and EMEA: Salary Costs - $327,015; Performance Bonus Costs - $219,139; Equity Costs - $130,983.

•

Mario Querner⁽²⁾– (former) Regional President, EMEA: Salary Costs - $548,629 (including severance pay); Performance Bonus Costs - $126,067; Equity Costs – ($48,219).

•

Ronen Ben-Hamou – Chief Revenue Officer: Salary Cost - $364,230; Performance Bonus Costs - $18,809; Equity Costs - $123,885.

•

Ulik Broida – Chief Product Officer: Salary Costs - $291,147; Performance Bonus Costs - $0; Equity Costs - $127,641.

(1)

Effective January 1, 2026, and as a result of organizational changes within the Company, Mr. Rotstein no longer reports directly to the Chief Executive Officer. Accordingly, the Company does not consider Mr. Rotstein to be an officeholder of the Company as of the date of this report.

(2)

Mr. Querner ceased to serve as Regional President, EMEA effective July 31, 2025.

Compensation Policy

Under the Companies Law, we are required to adopt a compensation policy, which sets forth company policy regarding the terms of office and employment of office holders, including compensation, equity awards, severance and other benefits, exemption from liability and indemnification. Such compensation policy should take into account, among other things, providing proper incentives to office holders, management of risks by the Company, the office holder’s contribution to achieving corporate objectives and increasing profits, and the function of the office holder.

Our Compensation Policy is designed to balance between the importance of incentivizing office holders to reach personal targets and the need to assure that the overall compensation meets our Company’s long-term strategic performance and financial objectives. The Compensation Policy provides our Compensation Committee and Board of Directors with adequate measures and flexibility to tailor each of our office holder’s compensation package based, among other matters, on geography, tasks, role, seniority and capability. Moreover, the Policy is intended to motivate our office holders to achieve ongoing targeted results in addition to high-level business performance in the long term, without encouraging excessive risk taking.

The Compensation Policy and any amendments thereto must be approved by the board of directors, after considering the recommendations of the compensation committee, and by a special majority of our shareholders which should include (i) at least a majority of the shareholders who are not controlling shareholders and who do not have a personal interest in the matter, present and voting (abstentions are disregarded), or (ii) the non-controlling shareholders and shareholders who do not have a personal interest in the matter who were present and voted against the matter hold two percent or less of the aggregate voting power in the company (“Special Majority”). The Compensation Policy must be reviewed from time to time by the board and must be re-approved or amended by the board of directors and the shareholders no less than every three years. If the Compensation Policy is not approved by the shareholders, the compensation committee and the board of directors may nonetheless approve the policy, following further discussion of the matter and for detailed reasons.

Our Compensation Policy was originally approved by our shareholders in 2012 and was revised and adopted by our shareholders at the 2023 AGM.

Clawback Policy

On November 30, 2023, our Compensation Committee and Board of Directors approved the adoption of a clawback policy as contemplated pursuant to Rule 10D-1 under the Exchange Act (the “Clawback Policy”), effective as of October 2, 2023. Under the Clawback Policy, in the event that the Company is required to prepare an accounting restatement due to its material noncompliance with any financial reporting requirement under U.S. federal securities law, the policy provides that the Company will recoup compensation from each current or former executive officer (as defined in the Clawback Policy) who, during the three-year period preceding the date on which an accounting restatement is required, received incentive compensation based on the erroneous financial data that exceeds the amount of incentive-based compensation the executive would have received based on the restatement. In addition, the Compensation Committee and the Board of Directors may apply the Clawback Policy to persons who are not officers. The Compensation Committee and the Board of Directors administer the Company’s Clawback Policy and have sole discretion to determine how to seek recovery under the policy and may forgo recovery if both determine that recovery would be impracticable.

C.	Board Practices

Corporate Governance Practices

We are incorporated in Israel and therefore are generally subject to various corporate governance practices under the Companies Law, relating to matters such as external directors, audit committee, compensation committee, internal auditor and approvals of interested parties’ transactions. These matters are in addition to the ongoing listing conditions under the Nasdaq Rules and other relevant provisions of U.S. securities laws. Under applicable Nasdaq Rules, a foreign private issuer (such as the Company) may generally follow its home country rules of corporate governance in lieu of the comparable Nasdaq Rules, except for certain matters such as composition and responsibilities of the audit committee and the independence of its members. See Item 3. “KEY INFORMATION – Risk Factors – Risks Relating to Operation in Israel - Being a foreign private issuer exempts us from certain SEC requirements and Nasdaq Rules, which may result in less protection than is afforded to investors under rules applicable to domestic issuers.” For information regarding home country rules followed by us see Item 16G. “CORPORATE GOVERNANCE”.

General Board Practices

Under the Company’s Articles of Association, the Board of Directors is to consist of not less than five (5) and not more than nine (9) directors, unless otherwise determined by a resolution of the Company's shareholders. Our Board of Directors presently consists of seven (7) members. The Board of Directors retains all the powers in managing our Company that are not specifically granted to the shareholders. For example, for whatever purposes it deems fit, the Board may decide to borrow money or may set aside reserves out of our profits.

The Board of Directors may pass a resolution when a quorum is present, and by a vote of at least a majority of the directors present when the resolution is put to vote. A quorum is defined as at least a majority of the directors then in office who are lawfully entitled to participate in the meeting but not less than two directors. The Chairman of the Board is elected and removed by the board members. Minutes of the Board meetings are recorded and kept at our offices.

The Board of Directors may, subject to the provisions of the Companies Law, appoint a committee of the Board and delegate to such committee all or any of the powers of the Board, as it deems appropriate. Notwithstanding the foregoing and subject to the provisions of the Companies Law, the Board may, at any time, amend, restate or cancel the delegation of any of its powers to any of its committees. Our Board of Directors has appointed a Corporate Audit Committee under the Companies Law, a Financial Audit Committee under Nasdaq Rules, a Compensation Committee and a Nomination Committee.

Our Articles of Association provide that any director may appoint as an alternate director, by written notice to us, any individual who is qualified to serve as director and who is not then serving as a director or alternate director for any other director. An alternate director has all of the rights and obligations of a director, excluding the right to appoint an alternate for himself. Currently no alternate directors serve on our Board.

Terms and Skills of Directors

Our directors are generally elected at the annual general meeting of shareholders for a term ending on the date of the third annual general meeting following the general meeting at which they were elected, unless earlier terminated in the event of such director’s death, resignation, bankruptcy, incapacity or removal. At the 2024 AGM, Messrs. Rami Hadar, Ilan Rosen, Efrat Makov, Yael Shaham, Shlomo Liran and David Ripstein were re-elected to serve as directors and Mr. Robert Wadsworth was elected to serve as director. Information regarding the period during which each of our directors has served in that office can be found above under the heading “Directors and Senior Management”.

According to the Companies Law, a person who does not possess the skills required and the ability to devote the appropriate time to the performance of the office of director in a company, taking into consideration, among other things, the special requirements and size of that company, shall neither be appointed as a director nor serve as director in a public company. A public company shall not convene a general meeting the agenda of which includes the appointment of a director, and a director shall not be appointed, unless the candidate has submitted a declaration that he or she possesses the skills required and the ability to devote the appropriate time to the performance of the office of director in the company, that sets forth the aforementioned skills and further states that the limitations set forth in the Companies Law regarding the appointment of a director do not apply in respect of such candidate.

A director who ceases to possess any qualification required under the Companies Law for holding the office of director or who becomes subject to any ground for termination of his/her office must inform the company immediately and his/her office shall terminate upon such notice.

Independent Directors

Under the Nasdaq Rules, the majority of our directors are required to be independent. The independence criteria under the Nasdaq Rules excludes, among others, any person who is: (i) a current or former (at any time during the past three years) employee of the company or its affiliates; or (ii) an immediate family member of an executive officer (at any time during the past three years) of the company or its affiliates.

In addition, under the Companies Law, an “independent director” is either an external director or a director appointed or classified as such who meets the same non-affiliation criteria as an external director, as determined by the company’s audit committee, and who has not served as a director of the company for more than nine consecutive years. For these purposes, ceasing to serve as a director for a period of two years or less would not be deemed to sever the consecutive nature of such a director’s service. However, as our shares are listed on the Nasdaq Global Select Market, we may also, in accordance with the Foreign Listed Regulations, classify directors who qualify as independent directors under the relevant non-Israeli rules, as “independent directors” under the Companies Law. In addition, the Foreign Listed Regulations provide that “independent directors” may be elected for additional terms that do not exceed three years each, beyond the nine consecutive years, permitted under the Companies Law, provided that, if the director is being re-elected for an additional term or terms beyond the nine consecutive years (i) the audit committee and board of directors must determine that, in light of the director’s expertise and special contribution to the board of directors and its committees, the re-election for an additional term is to the company’s benefit; (ii) the director must be re-elected by the required majority of shareholders and subject to the terms specified in the Companies Law.

Currently, all of our serving directors – Ms. Makov, Ms. Shaham and Messrs. Liran, Rosen, Hadar, Wadsworth and Ripstein – qualify and serve as independent directors under the Nasdaq Rules.

External Directors

Under the Companies Law, Israeli public companies are generally required to appoint at least two external directors. Each committee of a company’s board of directors, which is authorized to exercise the board of directors’ authorities, is required to include at least one external director, and the corporate audit and compensation committees must include all of the external directors. The Foreign Listed Regulations allow us, as a company whose shares are traded on Nasdaq, and does not have a controlling shareholder (within the meaning of the Companies Law) to exempt ourselves from the requirement to have external directors on our Board of Directors and from related requirements imposed by the Companies Law concerning the composition of the audit and compensation committees, provided that we continue to comply with the relevant U.S. securities laws and Nasdaq Rules applicable to U.S. domestic issuers, regarding the independence of the Board and the composition of the audit and compensation committee.

An external director who was elected to serve as such prior to the date on which the company opted to comply with the applicable U.S. securities laws and Nasdaq Rules governing the appointment of independent directors and the composition of the audit and compensation committees, as set forth above, may continue to serve out his/her term as a non-external director on the company’s board of directors until the earlier of (i) the end of his/her three year term, or (ii) the second annual general meeting following the company’s decision to comply with the said applicable rules, without any further action on the part of the company or its shareholders. Such director may be elected to the board of directors by the company’s shareholders, but he/she would now be elected as a “regular” director (not an external director) and his/her election would be no different than the election of any other director.

On August 12, 2019, our Board of Directors resolved that commencing on the day following the date of the 2019 Annual General Meeting of Shareholders, the Company would follow the exemption from the requirement to have external directors on our Board, provided that it continues to meet the requisite requirements for said relief and unless the Board of Directors determines otherwise.

Financial and Accounting Expertise. Pursuant to the Companies Law and regulations promulgated thereunder, the board of directors of a publicly traded company is required to make a determination as to the minimum number of directors who must have financial and accounting expertise based, among other things, on the type of company, its size, the volume and complexity of the company’s activities and the number of directors. A director with “accounting and financial expertise” is a director whose education, experience and skills qualify him or her to be highly proficient in understanding business and accounting matters, thoroughly understand the Company’s financial statements and stimulating discussion regarding the manner in which financial data is presented.

Currently, Ms. Makov, who chairs the Financial Audit Committee, and Messrs. Liran, Rosen, and Ripstein, all independent directors, meet the audit committee composition requirements for purposes of the Nasdaq Rules. Each of Ms. Makov and Messrs. Liran, Rosen, and Ripstein, satisfy the qualifications set forth for “accounting and financial expertise” as defined under the Companies Law.

Remuneration of Directors

Directors’ remuneration is generally consistent with our compensation policy for office holders (see below) and generally requires the approval of the Compensation Committee, the Board of Directors and the shareholders (in that order).

Notwithstanding the above, under special circumstances, the compensation committee and the board of directors may approve an arrangement that deviates from our compensation policy, provided that such an arrangement is approved by a Special Majority.

According to the Remuneration Regulations, directors who are being compensated in accordance with such regulations are generally entitled to an annual fee, a participation fee for board or committee meetings and reimbursement of travel expenses for participation in a meeting which is held outside of the director’s place of residence. The minimum fixed and maximum amounts of the annual and participation fees are set forth in the Remuneration Regulations, and are based on the classification of the Company according to the size of its capital. Remuneration of a director who is compensated in accordance with the Remuneration Regulations, in an amount which is less than the fixed annual fee or the fixed participation fee, requires the approval of the Compensation Committee, the Board of Directors and the shareholders (in that order). A company may compensate a director (who is compensated in accordance with the Remuneration Regulations) in shares or rights to purchase shares, other than convertible debentures which may be converted into shares, in addition to the annual and the participation fees, and the reimbursement of expenses, subject to certain limitations set forth in the Remuneration Regulations.

Additionally, according to the Relief Regulations, shareholders’ approval for directors’ compensation and employment arrangements is not required if both the compensation committee and the board of directors resolve that either (i) the directors’ compensation and employment arrangements are solely for the benefit of the company or (ii) the remuneration to be paid to any such director does not exceed the maximum amounts set forth in the Foreign Listed Regulations. Further, according to the Relief Regulations, shareholders’ approval for directors’ compensation and employment arrangements is not required if (i) both the compensation committee and the board of directors resolve that such terms are not more beneficial than the former terms, or are essentially the same in their effect, and are in line with the company’s compensation policy; and (ii) such terms are brought for shareholder approval at the next general meeting of shareholders.

Neither we nor any of our subsidiaries have entered into a service contract with any of our current directors that provides for benefits upon termination of their service as directors.

For a full discussion of the remuneration paid to our directors see above in “B. Compensation a) Aggregate Executive Compensation”.

Mandatory Committees of the Board of Directors

Financial Audit Committee

In accordance with the rules of the SEC under the Exchange Act and under Nasdaq Rules, we are required to have an audit committee consisting of at least three directors, each of whom (i) is independent; (ii) does not receive any compensation from the Company (other than directors’ fees); (iii) is not an affiliated person of the Company or any of its subsidiaries; (iv) has not participated in the preparation of the Company’s (or subsidiary’s) financial statements during the past three years; and (v) is financially literate and one of whom has been determined by the board to be a financial expert. The duties and responsibilities of the Financial Audit Committee include: (i) recommending the appointment of the Company’s independent auditor to the Board of Directors, determining its compensation and overseeing the work performed by it; (ii) pre-approving all services of the independent auditor; (iii) overseeing our accounting and financial reporting processes and the audits of our financial statements; and (iv) handling complaints relating to accounting, internal controls and auditing matters. Nonetheless, under the Companies Law, the appointment of the Company’s independent auditor requires the approval of the shareholders, and its compensation requires the approval of our Board of Directors.

As of the date hereof, Ms. Makov and Messrs. Liran and Ripstein serve on our Financial Audit Committee, each of whom has been determined by the Board to meet the Nasdaq Rules and SEC standards described above, and with Ms. Makov serving as chairperson of such committee and as its financial expert. See Item 16A. “AUDIT COMMITTEE FINANCIAL EXPERT” below. We have adopted an Audit Committee charter as required under the Nasdaq Rules.

Corporate Audit Committee

We maintain a Corporate Audit Committee which is our audit committee for the purposes of the Companies Law; the duties and responsibilities of our Corporate Audit Committee mainly include: (i) identifying of irregularities and deficiencies in the management of our business, in consultation with the internal auditor and our independent auditor, and suggesting appropriate courses of action to amend such irregularities; (ii) reviewing and approving certain transactions and actions of the Company, including the approval of related party transactions that require approval by the audit committee under the Companies Law; defining whether certain acts and transactions that involve conflicts of interest are material or not and whether transactions that involve interested parties are extraordinary or not, and to approve such transactions; (iii) establishing procedures to be followed with respect to related party transactions; (iv) discuss with management policies and practices for risk assessment; (v) recommending the appointment of the internal auditor and its compensation to the Board of Directors; (vi) examining the performance of our internal auditor and whether it is provided with the required resources and tools necessary for him to fulfill its role, considering, inter alia, the Company’s size and special needs; (vii) examining the independent auditor’s scope of work as well as his fees and providing its recommendations to the appropriate corporate organ; (viii) overseeing the accounting and financial reporting processes of the Company; (ix) setting procedures for handling complaints made by the Company’s employees in connection with management deficiencies and the protection to be provided to such employees; (x) discuss and review responses to SEC comments regarding the Company’s financial statements or financial reporting; (xi) review and discuss with the independent auditor the matters required by Public Company Accounting Oversight Board Auditing Standard No. 1301 6 (Communications with Audit Committees) relating to the conduct of the audit; (xii) review and monitor, significant findings of any examination by regulatory authorities or agencies; (xiii) review proposed future internal audit plans; and (xiv) performing such other duties that are or will be designated solely to the audit committee in accordance with the Companies Law and the Company’s Articles of Association.

The Corporate Audit Committee composition requirements referred to under Section 115 of the Companies Law are not applicable to the Company as the Board of Directors, as part of its decision to opt out of the requirement to appoint external directors, as provided for under the Foreign Listed Regulations, also adopted relief from such composition requirements on the basis that the Company complies, and will continue to comply, with the relevant U.S. securities laws and Nasdaq Rules applicable to U.S. domestic issuers, regarding the independence of the Board and the composition of the audit and compensation committees.

As of the date hereof, Mr. Ripstein, Ms. Shaham and Ms. Makov serve on our Corporate Audit Committee, each of whom has been determined by the Board to meet the Nasdaq Rules and SEC standards described under the Financial Audit Committee section above, and Mr. Ripstein serves as its chairman.

Compensation Committee

Under the Nasdaq Rules, the compensation payable to our executive officers must be determined or recommended to the board for determination either by a majority of the independent directors on the board, in a vote in which only independent directors participate, or by a compensation committee consisting of at least two independent directors (as defined under the Nasdaq Rules). Each compensation committee member must also be deemed by our Board of Directors to meet the enhanced independence requirements for members of the compensation committee under the Nasdaq Rules, which requires, among other things, that our Board of Directors consider the source of each such committee member’s compensation in considering whether he or she is independent. According to the Companies Law, the compensation committee shall include all the external directors, which shall consist of the majority of its members. As indicated above, we opted out of the external director rules in accordance with the exemption provided under the Foreign Listed Regulations. Nonetheless, as our Board has decided to opt out of the requirement to elect external directors and to adopted relief from the audit and compensation composition requirements under the Companies Law, we are subject to the relevant U.S. securities laws and Nasdaq Rules applicable to U.S. domestic issuers regarding the independence of the Board and the composition of the audit and compensation committees.

According to the Companies Law, the board of directors of any Israeli public company must appoint a compensation committee, which is responsible for: (i) making recommendations to the Board of Directors with respect to the approval of the compensation policy (see below) and any extensions thereto; (ii) periodically reviewing the implementation of the compensation policy and providing the Board of Directors with recommendations with respect to any amendments or updates thereto; (iii) reviewing and resolving whether or not to approve arrangements with respect to the terms of office and employment of office holders; and (iv) determining whether or not to exempt under certain circumstances a transaction with a candidate for CEO, who is not affiliated with the Company or its controlling shareholders, from shareholder approval, and provided that the terms approved are consistent with the compensation policy. Under the Companies Law, the Compensation Committee may need to seek the approval of the Board of Directors and the shareholders for certain compensation-related decisions. See “Item 6 - Directors, Senior Management and Employees – B. Compensation”.

In addition, our Compensation Committee administers our Amended and Restated Share Option and RSU Plan. The Board has delegated to the Compensation Committee the authority to grant options and RSUs under this plan and to act as the share incentive committee pursuant to this plan, provided that such grants are within the framework determined by the Board, and that the grant of equity compensation to our office holders is also approved by our board.

The Compensation Committee composition requirements referred to under Section 118A of the Companies Law are not applicable to the Company as the Board of Directors, as part of its decision to opt out of the requirement to appoint external directors, as provided for under the Foreign Listed Regulations, also adopted relief from such composition requirements on the basis that the Company complies, and will continue to comply, with the relevant U.S. securities laws and Nasdaq Rules applicable to U.S. domestic issuers, regarding the independence of the Board and the composition of the audit and compensation committees.

Messrs Hadar, Rosen and Shaham serve on our Compensation Committee, each of whom meets the above-mentioned qualification requirements set forth under the Nasdaq Rules, and Mr. Hadar serves as its chairman.

Nomination Committee

The Nasdaq Rules require that director nominees be selected or recommended for the board’s selection either by a nomination committee composed solely of independent directors, or by a majority of independent directors, in a vote in which only independent directors participate, subject to certain exceptions. Currently, Messrs. Liran, Rosen and Hadar, all independent directors, serve as members of our Nomination Committee, which recommends director nominees for our Board’s approval.

Approval of Office Holders Terms of Employment

The terms of office and employment of office holders (other than directors and the CEO) require the approval of the compensation committee and then of the board of directors, provided such terms are in accordance with the company’s compensation policy. If terms of employment of such office holder are not in accordance with the compensation policy, then shareholder approval is also required following the approval of the compensation committee and board of directors after taking into account the various policy considerations and mandatory requirements set forth in the Companies Law with respect to office holders’ compensation. However, in special circumstances the compensation committee and then the board of directors may nonetheless approve such terms of office and employment, even if they were not approved by the shareholders, following further discussion and for detailed reasoning. In addition, the Relief Regulations provide that non-material changes to the terms of office of office holders who are subordinated to the company’s CEO will require only CEO approval, provided that the company’s compensation policy includes a reasonable range for such non-material changes.

The terms of office and employment of a CEO, regardless of whether such terms conform to the company’s compensation policy, must be approved by the compensation committee, the board of directors and then by a Special Majority.

Notwithstanding the above, in special circumstances the compensation committee and then the board of directors may nonetheless approve compensation for the CEO, even if such compensation was not approved by the shareholders, following further discussion and for detailed reasoning. In addition, under certain circumstances, a company’s compensation committee may exempt the terms of office and employment of a candidate for the position of CEO from shareholders’ approval, provided that the candidate is not a director and that the terms of office are compliant with the company’s compensation policy.

Amendment of existing terms of office and employment of office holders who are not directors, including chief executive officers, require the approval of the compensation committee only, if the compensation committee determines that the amendment is not material.

The terms of office and employment of directors, regardless of whether such terms conform to the company’s compensation policy, must be approved by the compensation committee, the board of directors and then by the shareholders, and, in case that such terms are inconsistent with the company’s compensation policy, such shareholders’ approval must be obtained by the Special Majority with respect to the CEO.

However, and as referred to above with respect to remuneration of directors, according to the Relief Regulations, a company’s compensation committee and board of directors are permitted to approve terms of office and employment of a CEO or of a director, without convening a general meeting of shareholders, provided however, that such terms: (i) are not more beneficial than the former terms, or are essentially the same in their effect; (ii) are in line with the company’s compensation policy; and (iii) are brought for shareholder approval at the next general meeting of shareholders. In addition, a company's compensation committee and board of directors are permitted to approve the terms of office of a director, without convening a general meeting of shareholders, provided that such terms are only beneficial to the company or that such terms are in compliance with the terms set forth in the Remuneration Regulations.

Approval of Certain Transactions with Related Parties

The Companies Law requires the approval of the corporate audit committee or the compensation committee, thereafter, the approval of the board of directors and in certain cases the approval of the shareholders, in order to effect specified actions and extraordinary transactions such as the following:

•

transactions with office holders and third parties, where an office holder has a personal interest in the transaction;

•

employment terms of office holders; and

•

extraordinary transactions with controlling parties, and extraordinary transactions with a third party where a controlling party has a personal interest in the transaction, or any transaction with the controlling shareholder or his relative regarding terms of service provided directly or indirectly (including through a company controlled by the controlling shareholder) and terms of employment (for a controlling shareholder who is not an office holder). A “relative” is defined in the Companies Law as spouse, sibling, parent, grandparent, descendant, spouse’s descendant, sibling or parent and the spouse of any of the foregoing.

Further, such extraordinary transactions with controlling shareholders require the approval of the corporate audit committee or the compensation committee, the board of directors and the majority of the voting power of the shareholders present and voting at the general meeting of the company (not including abstentions), provided that either:

•

the majority of the shares of shareholders who have no personal interest in the transaction and who are present and voting, not taking into account any abstentions, vote in favor; or

•

shareholders who have no personal interest in the transaction who vote against the transaction do not represent more than two percent of the aggregate voting rights in the company.

The Companies Law extends the disclosure requirements applicable to an office holder (as detailed below) to a controlling shareholder in a public company. Any shareholder participating in the vote on approval of an extraordinary transaction with a controlling shareholder must inform the company prior to the voting whether or not he or she has a personal interest in the approval of the transaction, and if he or she fails to do so, his or her vote will be disregarded.

Further, such extraordinary transactions as well as any transactions with a controlling shareholder or his relative concerning terms of service or employment need to be re-approved once every three years, provided however that with respect to certain such extraordinary transactions the corporate audit committee may determine that a longer duration is reasonable given the circumstances related thereto and such extended period has been approved by the shareholders.

In accordance with the Relief Regulations, certain defined types of extraordinary transactions between a public company and its controlling shareholder(s) are exempt from the shareholder approval requirements.

The approval of the corporate audit committee, followed by the approval of the board of directors and the shareholders, is required to effect a private placement of securities, in which either: (i) 20% or more of the company’s outstanding share capital prior to the placement is offered, and the payment for which (in whole or in part) is not in cash, in tradable securities registered in a stock exchange or not under market terms, and which will result in: (a) an increase of the holdings of a shareholder that holds 5% or more of the company’s outstanding share capital or voting rights; or (b) will cause any person to become, as a result of the issuance, a holder of more than 5% of the company’s outstanding share capital or voting rights; or (ii) a person will become a controlling shareholder of the company.

A “controlling party” is defined in the Israeli Securities Law and in the Companies Law, for purposes of the provisions governing related party transactions, as a person with the ability to direct the actions of a company but excluding a person whose power derives solely from his or her position as a director of the company or any other position with the company, and with respect to approval of transactions with related parties also a person who holds 25% or more of the voting power in a public company if no other shareholder owns more than 50% of the voting power in the company, and provided that two or more persons holding voting rights in the company, who each have a personal interest in the approval of the same transaction, shall be deemed to be one holder for the purpose of evaluating their holdings with respect to approvals of transactions with related parties.

Compensation committee approval is also required (and thereafter, the approval of the board of directors and in certain cases – the approval of the shareholders) to approve the grant of an exemption from the responsibility for a breach of the duty of care towards the company, for the provision of insurance and for an undertaking to indemnify any office holder of the company; see below under “Exemption, Insurance and Indemnification of Directors and Officers”.

The Company has adopted a Related Parties Transactions Policy which was last reviewed and ratified by the Corporate Audit Committee and the Board of Directors on February 8, 2023, that, among other things, reflects the approval procedures as required under law and sets criteria for the classification of proposed transactions as Extraordinary Transaction (or Exceptional Transaction), Ordinary Transactions and Ordinary Transactions that are insignificant ones.

Duties of Office Holders and Shareholders

Duties of Office Holders

Fiduciary Duties. The Companies Law imposes a duty of care and a duty of loyalty on all office holders of a company, including directors. The duty of care requires an office holder to act with the level of care with which a reasonable office holder in the same position would have acted under the same circumstances, and requires office holders to use reasonable means to obtain (i) information regarding the business advisability of a given action brought for the office holders’ approval or performed by the office holders by virtue of their position, and (ii) all other information of importance pertaining to the aforesaid actions. The duty of loyalty includes avoiding any conflict of interest between the office holder’s position in the company and his personal affairs, avoiding any competition with the company, avoiding the exploitation of any business opportunity of the company in order to receive personal advantage for himself or others, and revealing to the company any information or documents relating to the company’s affairs which the office holder has received due to his position as an office holder.

The company may approve an action by an office holder from which the office holder would otherwise have to refrain due to its violation of the office holder’s duty of loyalty if: (i) the office holder acts in good faith and the act or its approval is not to the detriment of the company, and (ii) the office holder discloses the nature of his or her interest in the transaction to the company a reasonable time prior to the company’s approval.

Each person listed in the table above under “Directors and Senior Management” is considered an office holder under the Companies Law.

Disclosure of Personal Interests of an Office Holder. The Companies Law requires that an office holder of a company promptly disclose any personal interest that he or she may have, and all related material information and documents known to him or her relating to any existing or proposed transaction by the company. If the transaction is an extraordinary transaction, the office holder must also disclose any personal interest held by the office holder’s spouse, siblings, parents, grandparents, descendants, spouse’s siblings, parents and descendants and the spouses of any of these people, or any corporation in which the office holder: (i) holds at least 5% of the company’s outstanding share capital or voting rights; (ii) is a director or chief executive officer; or (iii) has the right to appoint at least one director or the chief executive officer. An extraordinary transaction is defined as a transaction that is either: (i) not in the ordinary course of business; (ii) not on market terms; or (iii) likely to have a material impact on the company’s profitability, assets or liabilities.

In the case of a transaction which is not an extraordinary transaction, after the office holder complies with the above disclosure requirements, only board approval is required unless the articles of association of the company provide otherwise. The transaction must not be adverse to the company’s interest. If a transaction is an extraordinary transaction, or concerns the terms of office and employment, then, in addition to any approval stipulated by the articles of association, it must also be approved by the company’s audit committee (or with respect to terms of office and employment, by the compensation committee) and then by the board of directors, and, under certain circumstances, by shareholders of the company.

A person with a personal interest in any matter may not generally be present at any audit committee, compensation committee or board of directors meeting where such matter is being considered, and if he or she is a member of the committee or a director, he or she may not generally vote on such matter at the applicable meeting.

Duties of Shareholders

Under the Companies Law, a shareholder has a duty to: (i) act in good faith toward the company and other shareholders; and (ii) refrain from abusing his or her power in the company, including, among other things, voting in a general meeting of shareholders with respect to the following matters: (a) any amendment to the articles of association; (b) an increase of the company’s authorized share capital; (c) a merger; or (d) approval of interested party transactions which require shareholders’ approval.

In addition, any controlling shareholder, or any shareholder who knows that it possesses power to determine the outcome of a shareholder vote and any shareholder who, pursuant to the provisions of a company’s articles of association, has the power to appoint or prevent the appointment of an office holder in the company, is under a duty to act with fairness towards the company. The Companies Law does not describe the substance of this duty but states that the remedies generally available upon a breach of contract, will also apply in the event of a breach of the duty of fairness, taking into account such shareholder’s position.

Exemption, Insurance and Indemnification of Directors and Officers

The Companies Law provides that companies like ours may indemnify their officers and directors and purchase an insurance policy to cover certain liabilities, if provisions for that purpose are included in their articles of association.

Our Articles of Association allow us to indemnify and ensure our office holders to the fullest extent permitted by law.

Office Holders’ Exemption

Under the Companies Law, an Israeli company may not exempt an office holder from liability for a breach of his or her duty of loyalty, but may exempt in advance an office holder from his or her liability to the company, in whole or in part, for a breach of his or her duty of care (except in connection with distributions), provided that the articles of association allow it to do so. Our Articles of Association allow us to exempt our office holders to the fullest extent permitted by law.

Office Holders’ Insurance

Our Articles of Association provide that, subject to the provisions of the Companies Law, we may enter into a contract for the insurance of all or part of the liability imposed on our office holder in respect of an act or omission performed by him or her in his or her capacity as an office holder, regarding each of the following:

•

a breach of his or her duty of care to us or to another person;

•

a breach of his or her duty of loyalty to us, provided that the office holder acted in good faith and had reasonable cause to assume that his or her act would not prejudice our interests;

•

monetary liabilities or obligations imposed upon him or her in favor of another person; and/or

•

any other event, occurrence or circumstance in respect of which we may lawfully insure an office holder.

Without derogating from the aforementioned, subject to the provisions of the Companies Law and the Israeli Securities Law, we may also enter into a contract to insure an office holder, in respect of expenses, including reasonable litigation expenses and legal fees, incurred by an office holder in relation to an administrative proceeding instituted against such office holder or payment required to be made to an injured party, pursuant to certain provisions of the Israeli Securities Law.

Office Holder’s Indemnification

Our Articles of Association provide that, subject to the provisions of the Companies Law and the Israeli Securities Law, we may indemnify any of our office holders for an obligation or expense specified below, imposed on or incurred by the office holder in respect of an act or omission performed in his or her capacity as an office holder, as follows:

•

a financial liability imposed on him or her in favor of another person by any judgment, including a settlement or an arbitration award approved by a court.

•

reasonable litigation expenses, including attorney’s fees, incurred by the office holder as a result of an investigation or proceeding instituted against him by a competent authority which concluded without the filing of an indictment against him and without the imposition of any financial liability in lieu of criminal proceedings, or which concluded without the filing of an indictment against him but with the imposition of a financial liability in lieu of criminal proceedings concerning a criminal offense that does not require proof of criminal intent or in connection with a financial sanction (the phrases “proceeding concluded without the filing of an indictment” and “financial liability in lieu of criminal proceeding” shall have the meaning ascribed to such phrases in section 260(a)(1a) of the Companies Law);

•

reasonable litigation expenses, including attorneys’ fees, expended by an office holder or charged to the office holder by a court, in a proceeding instituted against the office holder by the Company or on its behalf or by another person, or in a criminal charge from which the office holder was acquitted, or in a criminal proceeding in which the office holder was convicted of an offense that does not require proof of criminal intent;

•

expenses, including reasonable litigation expenses and legal fees, incurred by an office holder in relation to an administrative proceeding instituted against such office holder, or payment required to be made to an injured party, pursuant to certain provisions of the Securities Law; and/or

•

any other event, occurrence or circumstance in respect of which we may lawfully indemnify an office holder.

The Company may undertake to indemnify an office holder as aforesaid: (a) prospectively, provided that, in respect of the first act (financial liability) the undertaking is limited to events which in the opinion of the Board of Directors are foreseeable in light of the Company’s actual operations when the undertaking to indemnify is given, and to an amount or criteria set by the Board of Directors as reasonable under the circumstances, and further provided that such events and amount or criteria are set forth in the indemnification undertaking; and (b) retroactively.

Limitations on Insurance and Indemnification

The Companies Law provides that a company may not exempt or indemnify an office holder nor enter into an insurance contract which would provide coverage for any monetary liability incurred as a result of any of the following:

•

a breach by the office holder of his or her duty of loyalty, except that the company may enter into an insurance contract or indemnify an office holder if the office holder acted in good faith and had a reasonable basis to believe that the act would not prejudice the company;

•

a breach by the office holder of his or her duty of care, if such breach was intentional or reckless, but unless such breach was solely negligent;

•

any act or omission intended to derive an illegal personal benefit; or

•

any fine, civil fine, financial sanction or monetary settlement in lieu of criminal proceedings imposed on such office holder.

In addition, under the Companies Law, exemption and indemnification of, and procurement of insurance coverage for, our office holders must be approved by our Compensation Committee and our Board of Directors and, with respect to an office holder who is CEO or a director, also by our shareholders. However, according to the Relief Regulations, shareholders’ and Board approvals for the procurement of such insurance coverage are not required if the insurance policy is approved by our Compensation Committee and: (i) the terms of such policy are within the framework for insurance coverage as approved by our shareholders and set forth in our Compensation Policy; (ii) the premium paid under the insurance policy is at fair market value; and (iii) the insurance policy does not and may not have a substantial effect on the Company’s profitability, assets or obligations.

Our Insurance and Indemnification

Indemnification letters, covering indemnification and insurance of those liabilities imposed under the Companies Law and the Israeli Securities Law, as discussed above, were granted to each of our present office holders and were approved for any future office holders.

In addition, in accordance with the Compensation Policy, we are currently entitled to hold directors’ and officers’ liability insurance policy for the benefit of our office holders, with insurance coverage of up to $45 million.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to our directors, officers and controlling persons, we have been advised that, in the opinion of the SEC, such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable.

Administrative Enforcement

As detailed above, under the Israeli Securities Law, a company cannot obtain insurance against or indemnify a third party (including its officers and/or employees) for any administrative procedure and/or monetary fine (other than for payment of damages to an injured party). The Israeli Securities Law permits insurance and/or indemnification for expenses related to an administrative procedure, such as reasonable legal fees, provided that it is permitted under the company’s articles of association.

We have adopted and implemented an internal enforcement plan to reduce our exposure to potential breaches of sections in the Companies Law and in the Israeli Securities Law applicable to us. Our Articles of Association and letters of indemnification permit, among others, insurance and/or indemnification as contemplated under the Israeli Securities Law (see “Exemption, Insurance and Indemnification of Directors and Officers” above).

Internal Auditor

Under the Companies Law, the board of directors of a public company must appoint an internal auditor proposed by the corporate audit committee (see under “Committees of the Board of Directors” – “Corporate Audit Committee”, above). The internal auditor may be an employee of the company but may not be an interested party, an office holder or a relative of the foregoing, nor may the internal auditor be the company’s independent accountant or its representative. The role of the internal auditor is to examine, among other things, whether the company’s actions comply with applicable law, integrity and orderly business procedure. The internal auditor has the right to request that the chairman of the corporate audit committee convene a corporate audit committee meeting, and the internal auditor may participate in all corporate audit committee meetings. The internal auditor’s tenure cannot be terminated without his or her consent, nor can he or she be suspended from such position unless the board of directors has so resolved after hearing the opinion of the corporate audit committee and after providing the internal auditor with the opportunity to present his or her position to the board of directors and to the corporate audit committee.

We have appointed the firm of C.C.R Management and Audit (2024) Ltd. as our internal auditor. Our internal auditor meets the independence requirements of the Companies Law, as detailed above.

D. Employees

As of December 31, 2025, we had 1,091 employees worldwide. Among our employees, 257 were employed in research, development and engineering, 574 in sales and marketing including services and supporting functions, 168 in general and administrative and 92 in operations. Out of our employees, 278 were based in Israel, 113 were based in the United States, 233 were based in EMEA (not including Israel), 177 were based in Latin America and 290 were based in Asia Pacific (including India).

In addition, as of December 31, 2025, we employed 650 Services Contractors, mainly supporting the projects we have won in the regions. Most of the costs of these employees were included in the cost of revenues in our financial statement.

We and our Israeli employees are not parties to any collective bargaining agreements. However, with respect to such employees, we are subject to Israeli labor laws, regulations and extension orders signed by the Israeli Ministry of Labor, Social Affairs and Social Services, as are in effect from time to time. Generally, we provide our employees with benefits and working conditions above the legally required minimums.

Israeli applicable law requires severance pay upon the dismissal, retirement or death of an employee or termination without due cause. In addition, applicable extension orders require every employee in Israel (except for specific circumstances) has a pension insurance policy, which includes, inter alia, death and disability insurance coverage. The amounts contributed by us to the severance component in the employees’ pension insurance are in lieu of the severance pay due to them. Israeli applicable law requires us and our employees to make payments to the National Insurance Institute, which is similar to the U.S. Social Security Administration. Such amounts also include payments by the employee for mandatory health insurance.

Substantially all our employment agreements include employees’ undertakings with respect to non-competition, assignment to us of intellectual property rights developed in the course of employment and confidentiality. However, it should be noted that the enforceability of non-competition undertakings is rather limited under the local laws in certain jurisdictions, including Israel.

To date, we have not experienced labor-related work stoppages and believe that our relations with our employees are good.

The employees of our other subsidiaries are subject to local labor laws and regulations that vary from country to country. In certain locations such as Brazil and Norway we are a party to collective bargaining agreements.

E. Share Ownership

The following table sets forth certain information regarding the ordinary shares owned, and stock options held, by our directors and senior management as of April 15, 2026. The percentage of outstanding ordinary shares is based on 90,876,955 ordinary shares outstanding as of April 8, 2026, that consists, for the purpose of the below calculation and presentation, ordinary shares and options to purchase ordinary shares which are vested or shall become vested within 60 days of April 15, 2026.

Name

Number of Ordinary Shares Beneficially Owned⁽¹⁾

Percentage of Outstanding Ordinary Shares Beneficially Owned

Number of Stock Options Held⁽²⁾

Exercise price of Options

Number of RSUs Held⁽²⁾

All directors and senior management as a group consisting of 16 people ⁽³⁾

2,296,429

2.48

2,296,429

1.68 – 3.70

675,533

(1)

Consists of 603,455 ordinary shares and 1,692,974 options to purchase ordinary shares which are vested or shall become vested within 60 days of April 15, 2026.

(2)

Each stock option is exercisable into one ordinary share and expires 6 years from the date of its grant. Of the number of stock options listed 1,692,974 options are vested or shall become vested within 60 days of April 15, 2026 for senior management as a group. 40,258 RSUs are expected to vest within 60 days of April 15, 2026.

(3)

Each of the directors and senior management beneficially owns less than 1% of the outstanding ordinary shares as of April 15, 2026 (including options held by each such person and which are vested or shall become vested within 60 days of April 15, 2026) and have therefore not been separately listed.

Equity Plans

Our previous Amended and Restated Share Option and RSU Plan (the “Share Option and RSU Plan”), expired pursuant to its terms on December 31, 2024, following which no additional grants may be made and any outstanding grants continue to be governed by the terms of such plan. During 2024, our Compensation Committee and our Board adopted the Company’s 2024 Equity Incentive Plan (the “2024 Equity Incentive Plan”; the Share Option and RSU Plan and the 2024 Equity Incentive Plan shall be collectively referred to as our “Equity Plans”), and at the 2024 AGM, our shareholders approved the 2024 Equity Incentive Plan.

The 2024 Equity Incentive Plan has been approved by the Israeli Tax Authority as required by applicable law and as an Incentive Stock Option “qualified plan” as defined by U.S. tax law. The 2024 Equity Incentive Plan is designed to grant options to our employees, directors, consultants and contractors, in Israel and worldwide, and is administered by our Compensation Committee. Generally, options granted under the 2024 Equity Incentive Plan expire six years from the date of grant, unless otherwise approved by the administrator.

In addition, under our Equity Plans, in the event of a sale of all, or substantially all, of our Ordinary Shares or assets, a merger, consolidation amalgamation, reorganization or similar transaction, or certain changes in the composition of the board of directors, or liquidation or dissolution, or such other transaction or circumstances that the Board determines to be a relevant transaction, then without the consent of the grantee or prior notice requirement, the administrator may make certain determinations as to the treatment of outstanding awards. Under our Equity Plans, in the event that all or substantially all of the issued and outstanding share capital of the Company shall be sold, each grantee shall be obligated to participate in the sale and to sell his/her equity awards at the price equal to that of any other share sold.

Amendment of our Equity Incentive Plans

Subject to applicable law, our Board of Directors may amend the Equity Plans, provided that any action by our Board of Directors which will alter or impair the rights or obligations of an option or RSU holder requires the prior consent of that option/RSU holder. Shareholder approval of any amendment to the 2024 Equity Incentive Plan will be obtained to the extent necessary to comply with applicable law or the extent that the Board determines that shareholder approval is appropriate and advisable. The administrator at any time and from time to time may modify or amend any award theretofore granted under the 2024 Equity Incentive Plan, including any award agreement, to the extent necessary to ensure compliance with Section 424 of the Code and Section 409A of the United States Internal Revenue Code of 1986, as amended.

The following tables present information regarding options and RSU grants under the Equity Plans. All additional options and RSUs from former plans have expired as of December 31, 2025.

Number of securities to be issued upon exercise or vesting of outstanding Options or RSUs			Weighted-average exercise price of outstanding options
	7,365,570⁽¹⁾			$ 2.57

(1)

Total of 3,468,848 relates to RSUs outstanding and 3,896,722 relates to options outstanding, under all the Equity Plans.

Outstanding Equity Awards at Fiscal Year-End

The following table presents certain option and RSU grant information concerning the distribution of options and RSUs (granted under the Equity Plans) among directors and employees of the Company as of December 31, 2025:

	Options and RSUs Outstanding		Unvested Options and RSUs
Directors and senior management consisting of 16 people		2,891,601		1,405,386

All other grantees		4,473,969		3,701,879

F. Disclosure of a Registrant’s Action to Recover Erroneously Awarded Compensation.

Not applicable.

ITEM 7.

MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS

Major Shareholders

The following table sets forth stock ownership information as of April 15, 2026 (unless otherwise noted below) with respect to each person who is known by us to be the beneficial owner of more than 5% of our outstanding ordinary shares, based on information provided to us by the holders or disclosed in public filings with the SEC.

Except where otherwise indicated, and except pursuant to community property laws, we believe, based on information furnished by such owners, that the beneficial owners of the ordinary shares listed below have sole investment and voting power with respect to such shares. The shareholders listed below do not have any different voting rights from any of our other shareholders. We know of no arrangements which would, at a subsequent date, result in a change in control of our company.

Total shares beneficially owned in the table below include shares that may be acquired upon the exercise of options that are exercisable within 60 days. The shares that may be issued under these options are treated as outstanding only for purposes of determining the percent owned by the person or group holding the options but not for the purpose of determining the percentage ownership of any other person or group. Each of our directors and officers who is also a director or officer of an entity listed in the table below disclaims ownership of our ordinary shares owned by such entity.

Name		Number of Ordinary Shares ⁽¹⁾				Percentage of Outstanding Ordinary Shares ⁽²⁾
Joseph D. Samberg ⁽³⁾			9,430,000				10.4	%

(1)

Consists of ordinary shares and options to purchase ordinary shares, which are vested or shall become vested within 60 days as of April 15, 2026.

(2)

Based on 90,876,955 ordinary shares outstanding as of April 8, 2026, excluding options to purchase ordinary shares which are vested or shall become vested within 60 days of April 15, 2026.

(3)

This information is derived from a Schedule 13D/A filed with the SEC on February 27, 2025. The Ordinary Shares are beneficially owned directly or indirectly by Joseph D. Samberg through the Joseph D. Samberg Revocable Trust (the “Revocable Trust”), of which Mr. Samberg serves as trustee, and entities controlled by Mr. Samberg (the “Trusts”). Mr. Samberg may be deemed to beneficially own the securities directly held by the Revocable Trust and the Trusts. Joseph D. Samberg’s address is 1091 Boston Post Road, Rye, NY 10580.

As of April 8, 2026, approximately 99.29% of our ordinary shares were registered for trade and held in the United States and there were 31 record holders with addresses in the United States. These numbers are not representative of the number of beneficial holders of our shares nor are they representative of where such beneficial holders reside due to the fact that many of these ordinary shares were held of record by brokers or other nominees (including one U.S. nominee company, CEDE & Co., which held approximately 99.0% of our outstanding ordinary shares as of said date).

Related Party Transactions

The Company’s Related Party Policy provides, among other things, that the board of directors may, from time to time, set criteria for routine/insignificant transactions which are not an extraordinary transaction. A proposed transaction that shall satisfy the criteria for routine/insignificant transactions, shall be deemed as classified as an ordinary transaction by the corporate audit committee and as pre-approved by the board. As

Any transaction and arrangement with entities in which our office holders may have a personal interest will require approval by our Corporate Audit Committee, our Board of Directors and, if applicable, our shareholders.

Supply Arrangement

C. Interests of Experts and Counsel

Not applicable.

ITEM 8.

FINANCIAL INFORMATION

Consolidated Statements and Other Financial Information

The annual financial statements required by this Item are found at the end of this annual report, beginning on Page F-1.

Export Sales

In 2025, our sales to end users located outside of Israel amounted to $335.1 million, or 98.9% of our $338.7 million revenues for this year.

Legal Proceedings

Class Action Claim (District Court of Tel Aviv - Economic Department)

On January 6, 2015, the Company was served with a motion to approve a purported class action, naming the Company, its Chief Executive Officer and its directors as defendants (the “Defendants”). The motion was filed with the District Court of Tel-Aviv (the “Court”). The purported class action alleges breaches of duties by making false and misleading statements in the Company's SEC filings and public statements. The class action claimed amount is approximately $75,000,000.

On June 21, 2015, the Defendants filed their response to the motion, arguing that the motion should be dismissed.

On May 27, 2021, following a lengthy procedure that included filing of various pleadings and affidavits, evidentiary hearings, and submission of summaries, the Court ruled to certify the motion as a class action, while applying the Israeli Law (the “Ruling”). According to the Ruling, the class action shall include several causes of action according to the Israeli Securities Act and the Israeli Torts Ordinance, concerning the alleged misleading statements in the Company’s SEC filings.

On June 9, 2021, the Court issued a decision suggesting that the parties refer the case to a mediation procedure.

The Company believes that the Ruling is erroneous and that the Defendants have strong defense arguments, and therefore, on September 12, 2021, filed a motion for a rehearing on behalf of the Defendants in order to revert the Ruling (the “Rehearing Motion”).

On October 20, 2021, the Plaintiff submitted his response to the Rehearing Motion and the Defendants submitted their reply to the Plaintiff’s response on November 23, 2021.

In light of the fact that the Ruling applied and was based upon Israeli Law (instead of the relevant foreign law), the Tel Aviv Stock Exchange filed a motion requesting the Court to allow it to join the proceedings as Amicus Curiae, in order to express its principle opinion that the applicable law, in so far as dual listed companies are concerned, is the foreign law, as well as regarding the negative implications of the Court’s application of Israeli law on dual listed companies.

Without delaying or derogating from the Rehearing Motion, the Company agreed to the Court’s suggestion that the parties refer the case to a mediation procedure and designated the retired Judge B. Arnon as a mediator. After several mediation meetings were held, the mediation process ended without reaching a settlement.

On January 3, 2022, a hearing was held in Court in the Rehearing Motion before the Honorable Justices K. Kabub, R. Ronen and T. Avrahami. Following the hearing, on January 25, 2022, the Attorney General joined the proceedings of the Rehearing Motion and submitted his position in collaboration with the Securities Authority. The Attorney General’s principle position as outlined, was that the applicable law in so far as dual listed companies are concerned is the foreign law, and in our case – U.S. law.

On January 27, 2022, a judgment was rendered in the Rehearing Motion. The Court ruled that the Ruling was erroneous as it applied Israeli Law, instead of foreign law, and held accordingly that the law that will apply is U.S. law. The Court further held that the case will be returned to the first judicial instance and will be adjudicated as a class claim under U.S. law. The Court commented that the Company’s claims based upon the Statute of Limitations should prima facie also be adjudicated under U.S. law.

On March 20, 2022, following the Court's decision, the Plaintiff filed to the first judicial instance, an amended class action claim, based on provisions of U.S. law. The Plaintiff estimated the amended claim amount at $52,099,000.

On June 28, 2022, following a joint application filed by the parties in order to approve certain procedural matters, the Court issued a decision suggesting that the parties should consider initiating another mediation procedure. On July 5, 2022, following the Court's decision, the parties filed a notice, informing the Court that they believe that the time to consider initiating another mediation procedure will be only after the parties submit their pleadings.

On November 3, 2022, the Defendants submitted their Statement of Defense, based on U.S law. On February 5, 2023, the Plaintiff submitted his response to the Defendants’ Statement of Defense.

On June 15, 2023, the Court rejected a motion filed by the Defendants to rule on the issues of Statute of Repose and Limitations as a preliminary matter and held that those issues will be dealt with as part of the main hearing. Additionally, the parties conducted preliminary procedures, including discovery and questionnaires, and filed related motions.

On September 21, 2023, a preliminary hearing was held. At the conclusion of the hearing, the Court ruled that it would issue written decisions on the discovery issues and then set dates for further proceedings. On September 28th, 2023, the Court approved the defendants’ motion for document discovery and determined that the documents in question are indeed relevant. As a result, the Court has directed the plaintiff to furnish the requested documents by October 28, 2023. Alternatively, the Court has given the plaintiff the option to waive any claims associated with these documents.

On October 1, 2023, the Court granted the plaintiff's motion for document discovery and ordered the Company to produce all requested documents and to complete some of the answers to the questions included in the plaintiff questionnaire within 45 days. In making this decision, it was determined that, in addition to the documents already provided to the plaintiff, the Company is required to disclose thousands of additional documents and document types. These materials, however, were deemed irrelevant and extended beyond the approved grounds for the class action request. The discovery and disclosure of such documents would impose a substantial burden on the Company. As a result, on December 31, 2023, the Company sought permission to appeal to the district Court's decision and requested a delay in its implementation. The Supreme Court granted a stay on the execution of the district Court's decision and scheduled a hearing for January 25, 2024.

During the hearing, the Supreme Court acknowledged the Company's contentions. It clarified that the extensive disclosure mandated by the district Court exceeded the necessary requirements in accordance with the law and suggested that the plaintiff negotiate agreements with the Company. These agreements are aimed at significantly reducing the scope of disclosure, particularly concerning the period for which documents and correspondence must be provided.

Following discussions both outside the courtroom and before the Honorable Judge, where the parties presented their arguments on each dispute demand, partial agreements were reached. These agreements outline the documents the company will provide to the plaintiff. Validated by the Supreme Court, these agreements substantially reduced the disclosure requirements outlined in the district Court's decision. The plaintiff, in turn, waived certain demands entirely and significantly narrowed others. For the limited remaining requirements, it was established that the company would convey its position on transferring the requested documents to the plaintiff in the reduced format proposed during the hearing. It was also decided that if no agreements are reached concerning these documents, the Court will make a decision on the matter.

On March 26, 2024, the Company provided the plaintiff with the required documents, in accordance with the agreements between the parties.

On March 12, 2024, following the submission of pleadings by the parties, the Supreme Court reduced the amount of expenses imposed by the district Court against the Company in its decision dated October 1, 2023, since the appeal resulted in a reduction in the extent of disclosure initially determined by the district Court.

On April 2024, the parties have agreed to refer the dispute to a mediation procedure before the esteemed retired judge, Dr. Avi Zamir. To date, two mediation meetings have been held.

On January 30, 2025, the parties filed an update with the court, indicating that, as part of the mediation process, they have reached preliminary understandings. As a result, the court was requested to grant the parties an additional 60-day period to allow them to finalize a settlement agreement, which will then be submitted for the court’s approval.

During the period that has elapsed since that update was filed, the parties have submitted several motions seeking extensions to finalize the settlement agreement and submit it for the Court’s approval. Pursuant to the parties’ motion filed on 12 March, 2026, which was approved by the Court, the Court extended the deadline for the parties to complete the necessary steps prior to submitting the settlement agreement for the Court’s approval until 19 April, 2026. Accordingly, the mediation process remains ongoing.

Although the parties have not yet reached a conclusive and binding settlement agreement, nor has the settlement agreement been submitted for Court approval (or approved by the Court), the Company estimates, based on its external legal counsel and all facts and circumstances, that the maximum potential loss under the settlement agreement will not exceed approximately 1.162 million USD and a provision for this amount was recorded on the balance sheet as of December 31, 2024.

Claim against Station Enterprises Ltd. regarding breach of the Lease Agreement

A dispute has arisen between the Company and Station Enterprises Ltd., with respect to the lease agreement signed between the parties on April 11, 2019 (the “Lease Agreement”), under which the Company leases its offices and labs in Rosh Haayin.

The Company, the lessee, claims that Station Enterprises was late in delivering the possession to the lessee and has not fulfilled its maintenance and management obligations. Therefore, the Company claims that Station Enterprises breached its contractual obligations, causing the Company damages and expenses.

Due to such alleged breaches, the Company has set off the rent and management fees against outstanding debts of Station Enterprises towards the Company and provided Station Enterprises with a set-off notice.

On February 8, 2022, Station Enterprises provided notice to the Company about the termination of the Lease Agreement, and on the exercise of the bank guarantees provided to it in connection with the Lease Agreement, in approximately $682,000. The Company rejected the alleged termination notice, which was provided with no legal grounds, and further required Station Enterprises not to exercise the bank guarantees. This demand was disregarded, and the bank guarantees were exercised in full.

The Company instructed its legal counsel to file a claim against Station Enterprises, in the framework of which the court will be asked to issue a Declarative Order, declaring that the notice of termination was invalid and that Lease Agreement is valid and in force; to order Station Enterprises to reimburse the Company for the amount of the exercised bank guarantees; to order Station Enterprises to uphold and fulfil its contractual obligation and undertakings under the Lease Agreement and the management agreement; and to compensate the Company for the damages caused to it in an amount of approximately $328,000.

The Statement of Claim was filed on May 31, 2022. A Statement of Defense was filed on October 23, 2022, and a Statement of Response was filed on November 23, 2022.

On October 13, 2022, Station Enterprises Ltd. submitted a new claim against the Company, for its eviction from the leased premises. The Statement of Defense was filed on February 12, 2023.

Since both lawsuits deal with the same issues, on December 25, 2022, the Company submitted a request to consolidate the lawsuits.

On January 12, 2023, the judge determined that he would make a final decision on the request when submitting the statement of defense, which, as mentioned, was filed on February 12, 2023. On March 27, 2023, the judge ordered the consolidation of the hearings in the two lawsuits.

The parties agreed to refer the dispute in both claims to mediation that started on May 8, 2023.

On June 27, 2023, a mediation meeting took place between the parties. After extensive meetings and negotiations between the parties, on September 22, 2024, the mediator announced that the mediation between the parties had failed. On July 15, 2024, during the first pre-trial, the judge made another attempt to mediate the dispute between the parties, but without success. Consequently, the court scheduled deposition dates and set another pre-trial for March 5, 2024.

On December 1, 2024, Ceragon submitted its affidavits. Following the submission of the affidavits, the parties resumed the mediation process.

On May 16, 2025, the parties entered into a mediation agreement pursuant to which the claim filed by Nitzba was dismissed, and the remedies unrelated to third parties in the claim filed by Ceragon were also dismissed. Accordingly, the remaining claim in the Ceragon action is the monetary remedy in the amount of NIS 1,120,778, while Ceragon retains the right to offset an amount of NIS 1,700,000 (plus VAT) from the claimed sums. On May 18, 2025, the court approved the mediation agreement and dismissed the Station Enterprises claim and the remedies in the Ceragon claim in accordance with the parties’ agreement.

The court has scheduled the next hearing on the matter for April 30, 2026.

Third‑Party Notice Filed Against the Company in Connection with ADSL Quality Ltd. v. Israel Police Proceedings

On October 15, 2024, ADSL Quality Ltd. and its owners filed a claim against the Israel Police in the Tel Aviv Magistrate Court. The claim concerns a police raid conducted on ADSL’s warehouse on January 7, 2018, during which approximately 50 electronic devices were seized. The plaintiffs allege that four of these devices were lost while in the possession of the police and that additional damages were caused during the raid. The total claim amount is $266,583.07.

On March 12, 2025, the Israel Police filed a statement of defense together with a third‑party notice against the Company. In its third‑party notice, the police argue that the raid was initiated following a complaint submitted by the Company; that the seized devices were transferred to the Company; and that if the four devices at issue were indeed lost, such loss likely occurred while the devices were in the Company’s possession. Accordingly, the police assert that, should they be required to compensate the plaintiffs, they are entitled to indemnification from the Company.

On July 6, 2025, the Company submitted its statement of defense to the third‑party notice. In its response, the Company argued that the third‑party notice should be dismissed in limine, as it was filed late and in an apparent attempt by the police to conceal that delay. Alternatively, the Company argued that the notice should be dismissed on its merits, as the police are not entitled to indemnification from the Company: the claim concerns actions and/or omissions of the police that are unrelated to the Company; three of the four devices were never transferred to the Company; and the fourth device appears to have been returned to the plaintiffs under a settlement agreement in earlier legal proceedings.

A pre‑trial hearing took place on July 20, 2025, during which the court instructed the parties to complete document discovery and scheduled them for a mandatory dispute‑resolution meeting (“MAHUT”).

The Israel Police and Ceragon completed mutual Document Discovery Process on October 27, 2025.

On November 16, 2025, a MAHUT session was held before a mediator, after which the parties agreed to proceed to a mediation session before the same mediator. Two mediation sessions have already taken place, and the mediation process is still ongoing.

As advised by the Company's lawyers, at this preliminary stage, the Company is unable to assess the likelihood of an adverse outcome with respect to the third‑party notice.

Claim by a Former Employee in France

A former employee of the Company’s French subsidiary, whose employment was terminated as part of a redundancy procedure initiated on February 3, 2025, has filed a claim before the Nanterre Labour Court, on September 22, 2025. A conciliation hearing is scheduled for July 6, 2026.

The former employee is seeking various remedies, including compensation for alleged procedural irregularities, compensation for dismissal without real and serious cause, damages for breach of the employer’s duties to provide training and adaptation, damages for sudden dismissal and for vexatious conduct, damages for alleged harm suffered, compensation under Article 700 of the French Code of Civil Procedure, compensation for unpaid overtime and related paid leave, and statutory compensation for alleged undeclared work. The total amount claimed is approximately $499,789.83.

As advised by the Company's lawyers, at this stage, it is too early to assess the likelihood of an adverse outcome, as the Company has not yet received the supporting evidence from the claimant.

TurboCode LLC v. Ceragon Networks, Inc. (Patent Litigation)

On April 11, 2025, TurboCode LLC filed a complaint for patent infringement against Ceragon Networks, Inc. in the United States District Court for the Eastern District of Texas. The claim alleged that several of the company’s products infringed TurboCode LLC's patent. The proceeding was dismissed with prejudice on July 9, 2025, following a confidential settlement agreement entered into by the parties for an immaterial amount.

Proceedings Initiated by Teleaus Pty Ltd to Wind Up Ceragon Networks (AUS) Pty Ltd

On October 13, 2025, Teleaus Pty Ltd (Teleaus), a subcontractor of the company, commenced proceedings in the Federal Court of Australia seeking to wind up Ceragon Networks (AUS) Pty Ltd (Ceragon Australia). The application was filed on the basis that Ceragon Australia allegedly failed to comply with a Creditor’s Statutory Demand, thereby giving rise to a presumption of insolvency under Australian law.

On about 10 February 2026, Ceragon Australia and Teleaus entered into a Deed of Settlement to resolve the proceedings, under which Ceragon Australia paid an immaterial amount.

Subsequently, the proceedings were dismissed by a court order.

We are not a party to any other material legal proceedings.

Dividends

We have never declared or paid any dividend on our ordinary shares except for the share dividend that was paid as a result of a 250-for-1 share recapitalization that took place immediately prior to our initial public offering. To date, we do not anticipate paying any dividends on our ordinary shares in the future. We currently intend to retain all future earnings to finance our operations and to expand our business. Under our Credit Facility, we undertook not to distribute dividends (unless certain terms are met) without the lenders’ prior written consent.

Significant Changes

See Item 5. “OPERATING AND FINANCIAL REVIEW AND PROSPECTS - B. Liquidity and Capital Resources” for a description of the January and June 2022 amendments to the credit facility.

ITEM 9.

THE OFFER AND LISTING

Offer and Listing Details

Our ordinary shares are listed on the Nasdaq Global Select Market under the symbol “CRNT”.

ITEM 10. ADDITIONAL INFORMATION

Memorandum and Articles of Association

Our registration number with the Israeli Registrar of Companies is 51-235244-4. Our purpose as set forth in article 1 to our Articles of Association is to engage, directly or indirectly, in any lawful undertaking or business whatsoever. A copy of our Articles of Association is attached as Exhibit 1.1 to this Annual Report on Form 20-F. The information called for by this Item is set forth in Exhibit 2.1 to this Annual Report on Form 20-F and is incorporated by reference into this Annual Report on Form 20-F. Exhibit 2.1 sets forth a description of our ordinary shares and certain provisions of our Articles of Association which are summaries and are qualified in their entirety by reference to the full text of our Articles of Association.

Material Contracts

For a description of our Credit Facility dated as of March 14, 2013 and signed by and between the Company and Bank Hapoalim B.M., HSBC Bank Plc, Bank Leumi Le’Israel Ltd. and First International Bank of Israel Ltd., as amended from time, inter alia in 2023 to supplement Bank Mizrahi-Tefahot Ltd., see Item 5 "OPERATING AND FINANCIAL REVIEW AND PROSPECTS - B. Liquidity and Capital Resources”. The summary provided is not complete and is qualified in its entirety by reference to the English summary of the material terms of such agreement including its amendments, which are filed as exhibits to this Annual Report on Form 20-F and incorporated herein by reference.

Except as otherwise disclosed in this annual report (including its exhibits), we are not currently, and have not been in the last two years, party to any material contract, other than contracts entered into in the ordinary course of business.

Exchange Controls

There are currently no Israeli currency control restrictions on payments of dividends or other distributions with respect to our ordinary shares or the proceeds from the sale of the shares, except for the obligation of Israeli residents to file reports with the Bank of Israel regarding certain transactions. However, legislation remains in effect pursuant to which currency controls can be imposed by administrative action at any time.

The ownership or voting of our ordinary shares by non-residents of Israel, except with respect to citizens of countries which are in a state of war with Israel, is not restricted in any way by our Memorandum or Articles of Association or by the laws of the State of Israel.

Taxation

The following is a short summary of the tax environment to which shareholders may be subject. The following is not intended, and should not be construed, as legal or professional tax advice and is not exhaustive of all possible tax considerations. Each shareholder should consult his or her own tax or legal advisor.

This summary is based on the current provisions of tax law and, except for the foregoing, does not anticipate any possible changes in law, whether by legislative, regulatory, administrative or judicial action. Holders of our ordinary shares should consult their own tax advisors as to the United States, Israeli or other tax consequences of the purchase, ownership and disposition of ordinary shares.

General Corporate Tax Structure in Israel

The corporate tax rate in 2025 is 23%.

However, the effective tax rate payable by a company that derives income from an approved enterprise, or preferred enterprise as discussed further below, may be considerably lower. See “The Investment Law” below.

The Investments Law

In general, the Investment Law is intended to provide tax benefits to Industrial Enterprises who undertake significant export activities leading to the economic competitiveness of the country. The Investment Law underwent several amendments in recent years as will be detailed below, however, benefits which were granted under prior versions of the law remain intact and may be applied to the extent the company who obtained such benefits continues to comply with the respective requirements and has not waived such benefits.

Tax Benefits under the 2017 Amendment

The 2017 Amendment was enacted as part of the Economic Efficiency Law that was published on December 29, 2016, and is effective as of January 1, 2017. The 2017 Amendment provides new tax benefits for two types of “Technology Enterprises”, as described below, and is in addition to the other existing tax beneficial programs under the Investment Law.

The 2017 Amendment provides that a technology company satisfying certain conditions will qualify as a “Preferred Technology Enterprise” and will thereby enjoy a reduced corporate tax rate of 12% on income that qualifies as “Preferred Technology Income”, as defined in the Investment Law. The tax rate is further reduced to 7.5% for a Preferred Technology Enterprise located in development Zone A.

Dividends distributed by a Preferred Technology Enterprise paid out of Preferred Technology Income, are generally subject to withholding tax at source at the rate of 20% or such lower rate as may be provided in an applicable tax treaty (subject to the receipt in advance of a valid certificate from the Israel Tax Authority (“ITA”) allowing such for reduced tax rate). However, if such dividends are paid to an Israeli company, no tax is required to be withheld. If such dividends are distributed to a foreign company (holding at least 90% of the share capital) and other conditions are met, the withholding tax rate will be 4%.

The Company is currently below the revenue threshold and therefore not in scope of the Pillar Two rules. Management will continue to monitor developments and assess any future implications for the Company’s tax position and related disclosures as additional guidance becomes available.

The Company did not apply the 2017 Amendment. The Company may change its position in the future.

Tax Benefits and Grants for Research and Development

Israeli tax law allows, under specific conditions, a tax deduction in the year incurred for expenditures, including capital expenditures, relating to scientific research and development projects, for the year in which they are incurred if:

•

the expenditures are approved by the relevant Israeli government ministry, determined by the field of research;

•

the research and development are for the promotion or development of the company; and

•

the research and development are carried out by or on behalf of the company seeking the deduction.

However, the amount of such deductible expenses shall be reduced by the sum of any funds received through government grants for the finance of such scientific research and development projects. Expenditures not so approved are deductible over a three-year period if the R&D is for the promotion or development of the company.

Tax Benefits under the Law for the Encouragement of Industry (Taxes), 1969

According to the Law for the Encouragement of Industry (Taxes), 1969, generally referred to as the Industry Encouragement Law, an industrial company is a company incorporated and resident in Israel, at least 90% of the income of which, in a given tax year, determined in Israeli currency exclusive of income from specified government loans, capital gains, interest and dividends, is derived from an industrial enterprise owned by it. An industrial enterprise is defined as an enterprise whose major activity in a given tax year is industrial production activity.

Under the Industry Encouragement Law, industrial companies are entitled to the following preferred corporate tax benefits, among others:

•

deduction of purchases of know-how, patents and the right to use a patent over an eight-year period for tax purposes;

•

deduction over a three-year period of specified expenses incurred with the issuance and listing of shares on the Tel Aviv Stock Exchange or on a recognized stock exchange outside of Israel (including Nasdaq);

•

the right to elect, under specified conditions, to file a consolidated tax return with additional related Israeli industrial companies; and

•

accelerated depreciation rates on equipment and buildings.

Eligibility for benefits under the Industry Encouragement Law is not subject to receipt of prior approval from any governmental authority.

We believe that we currently qualify as an industrial company within the definition of the Industry Encouragement Law. We cannot assure you that we will continue to qualify as an industrial company or that the benefits described above will be available to us in the future.

Israeli Capital Gains Tax on Sales of Shares

Israeli law imposes a capital gains tax on the sale of any capital assets by residents of Israel, as defined for Israeli tax purposes, and on the sale of assets located in Israel, including shares of Israeli resident companies, by non-residents of Israel, unless a specific exemption is available or unless a tax treaty between Israel and the shareholder’s country of residence provides otherwise (and subject to the receipt in advance of a valid certificate from the ITA allowing such exemption). The law distinguishes between real gain and inflationary surplus. The inflationary surplus is a portion of the total capital gain that is equivalent to the increase of the relevant asset’s purchase price which is attributable to the increase in the Israeli consumer price index or, in certain circumstances, a foreign currency exchange rate, between the date of purchase and the date of sale. The real gain is the excess of the total capital gain over the inflationary surplus.

Generally, the tax rate applicable to capital gains derived from the sale of securities, listed on a stock market, is 25% for Israeli individuals. Additionally, if such individual shareholder is considered a “significant shareholder” at any time during the 12-month period preceding such sale (i.e. such shareholder holds directly or indirectly, including jointly with others, at least 10% of any “means of control” in the company. “means of control” - including, among other things, the right to receive profits of the Company, voting rights, the right to receive the Company’s liquidation proceeds and the right to appoint a director) the tax rate is increased to 30%. Israeli companies are subject to the regular corporate tax rate (currently, 23%) on capital gains derived from the sale of securities.

Furthermore, beginning January 1, 2013, individuals (Israeli residents and non‑residents) became subject to an additional surtax at a rate of 2% on annual taxable income exceeding a statutory threshold. Effective January 1, 2017, the surtax rate increased to 3%.

Under the amendments enacted as part of the 2025-2027 Economic Efficiency Law, the annual surtax threshold was fixed (i.e., no CPI adjustment) for the years 2025-2027. For 2025, the taxable income ceiling is NIS 721,560 (linked to the Israeli CPI and consistent with prior‑year adjustments.

In addition, beginning in 2025, a new 2% surtax applies specifically to capital income—including interest, dividends, capital gains, and real‑estate appreciation – exceeding the same annual threshold, resulting in a potential combined surtax rate of 5% on high‑income capital sources.

Generally, non-Israeli residents are exempt from Israeli capital gains tax on any gains derived from the sale of shares publicly traded on a recognized stock market in Israel or outside of Israel (including Nasdaq) subject to meeting certain conditions. However, non-Israeli corporations will not be entitled to such exemption if an Israeli resident (i) has a controlling interest of 25% or more in such non-Israeli corporation, or (ii) is the beneficiary of or is entitled to 25% or more of the revenues or profits of such non-Israeli corporation, whether directly or indirectly. Such an exemption is not applicable to a person whose gains from selling or otherwise disposing of the shares are deemed to be business income.

Persons paying consideration for shares, including purchasers of shares, Israeli securities dealers effecting a transaction, or a financial institution through which securities being sold are held, are required, to withhold tax upon the sale of publicly traded securities at a rate of 25% for individuals and at the corporate tax rate (currently, 23%) for corporations. However, the sale of shares may be exempt from Israeli capital gain tax under the provisions of the Israeli Income Tax Ordinance or the provisions of an applicable tax treaty, subject to the receipt in advance of a valid certificate from ITA allowing for such exemption no tax will be withheld.

Under the convention between the United States and Israel concerning taxes on income, as amended (the “U.S.-Israel Tax Treaty”), generally, Israeli capital gains tax will not apply to the sale, exchange or disposition of ordinary shares by a person who:

•

holds the ordinary shares as a capital asset;

•

qualifies as a resident of the United States within the meaning of the U.S.-Israel tax treaty; and

•

is entitled to claim the benefits available to the person by the U.S.-Israel tax treaty.

However, this exemption will not apply, among other cases, if (i) the treaty U.S. resident holds, directly or indirectly, shares representing 10% or more of our voting power during any part of the 12-month period preceding the sale, exchange or disposition, subject to specified conditions, (ii) the capital gains from such sale, exchange or disposition can be allocated to a permanent establishment in Israel or (iii) such person is an individual and was present in Israel for a period or periods of 183 days or more in the aggregate during the relevant tax year. In this case, the sale, exchange or disposition would be subject to Israeli tax, to the extent applicable. However, under the U.S.-Israel tax treaty, the treaty U.S. resident would be permitted to claim a credit for the taxes against the U.S. federal income tax imposed on the sale, exchange or disposition, subject to the limitations in U.S. laws applicable to foreign tax credits.

Israeli Taxation of Dividends Distributed to Non-Resident Holders of Our Shares

Non-residents of Israel are subject to income tax on income accrued or derived from sources in Israel. These sources of income include passive income, including dividends, royalties and interest, as well as non-passive income from services provided in Israel. On distributions of dividends income tax is withheld at source at the following rates: 25%, increased to 30% for a shareholder that is considered a significant shareholder, as defined above, at the time of the distribution or at any time during the 12-month period preceding such distribution. However, if such shares are registered with a nominee company (as such term is used in the Israeli Securities Law, 5728-1968), such dividends will be subject to Israeli withholding tax at a rate of 25% whether the recipient is a substantial shareholder or not, unless a lower rate is provided in a treaty between Israel and the shareholder’s country of residence (subject to the receipt in advance of a valid tax certificate from the ITA allowing for a reduced tax rate). The distribution of dividends to non-Israeli residents (either individuals or corporations) from income derived from an Approved Enterprises or Benefited Enterprises or a Preferred Enterprise or a Preferred Technology Enterprise, in each case during the applicable benefits period is subject to withholding tax at a rate of 20%; unless a lower rate is provided in a treaty between Israel and the shareholder’s country of residence (subject to the receipt in advance of a valid tax certificate from the ITA allowing for a reduced tax rate). According to the U.S.-Israel Tax Treaty, the tax withholding rate on dividends distributed by an Israeli corporation to a U.S. individual and a U.S. corporation is 25%. If the U.S. company holds 10% or more of the voting power of the Israeli company during the part of the tax year which precedes the date of payment of the dividend and during the whole of the preceding tax year and certain other conditions are met, the tax withholding rate is reduced to 12.5%. Dividends received by such U.S. company distributed from income generated by an Approved Enterprise, a Benefited Enterprise, or a Preferred Enterprise or a Preferred Technology Enterprise, are subject to withholding tax at a rate of 15%. However, these provisions do not apply if the company generates certain amounts of passive income. The aforementioned rates under the U.S.-Israel Treaty will not apply if the dividend income was derived through a permanent establishment of the U.S. resident in Israel.

Israeli Transfer Pricing Regulations

On November 29, 2006, Income Tax Regulations (Determination of Market Terms), 2006, promulgated under Section 85A of the Israeli Income Tax Ordinance, came into effect (the “TP Regulations”). Section 85A of the Tax Ordinance and the TP Regulations generally requires that all cross-border transactions carried out between related parties be conducted on an arm’s length principle basis and will be taxed accordingly. The TP Regulations including the 2022 amendments are being implemented by the Company and have not had a material effect on the Company.

U.S. Federal Income Tax Considerations

Subject to the limitations described below, the following discussion summarizes certain U.S. federal income tax consequences of the purchase, ownership and disposition of our ordinary shares to a U.S. Holder that owns our ordinary shares as a capital asset (generally, for investment). A U.S. holder is a Holder of our ordinary shares that is for U.S. federal income tax purposes:

•

an individual citizen or resident of the United States;

•

a corporation (or other entity taxable as a corporation for U.S. federal income tax purposes) created or organized in the United States or under the laws of the United States, any political subdivision thereof or the District of Columbia;

•

an estate, the income of which is subject to U.S. federal income tax regardless of its source; or

•

a trust (i) if a court within the United States is able to exercise primary supervision over its administration and one or more U.S. persons have the authority to control all of its substantial decisions or (ii) that has in effect a valid election under applicable U.S. Treasury Regulations to be treated as a U.S. person.

If a partnership (or any other entity treated as a partnership for U.S. federal income tax purposes) holds our ordinary shares, the tax treatment of the entity and an equity owner in such entity will generally depend on the status of the equity owner and the activities of the entity. Such an equity owner or entity should consult its own tax advisor as to its tax consequences.

Certain aspects of U.S. federal income taxes relevant to a holder of our ordinary shares (other than a partnership) that is not a U.S. Holder (a “Non-U.S. holder”) are also discussed below.

This discussion is based on current provisions of the Internal Revenue Code of 1986, as amended (the “Code”), current and proposed Treasury Regulations, and administrative and judicial decisions as of the date of this annual report, all of which are subject to change, possibly on a retroactive basis. This discussion does not address all aspects of U.S. federal income taxation that may be relevant to any particular U.S. Holder in light of such holder’s individual circumstances. In particular, this discussion does not address the potential application of the U.S. federal income tax consequences to U.S. Holders that are subject to special treatment, including U.S. Holders that:

•

are broker-dealers or insurance companies;

•

have elected mark-to-market accounting;

•

are tax-exempt organizations or retirement plans;

•

are grantor trusts;

•

are S corporations;

•

are certain former citizens or long-term residents of the United States;

•

are financial institutions;

•

hold ordinary shares as part of a straddle, hedge or conversion transaction with other investments;

•

acquired their ordinary shares upon the exercise of employee stock options or otherwise as compensation;

•

are real estate investment trusts or regulated investment companies;

•

own directly, indirectly or by attribution at least 10% of our shares (by vote or value); or

•

have a functional currency that is not the U.S. dollar.

This discussion is not a comprehensive description of all the tax considerations that may be relevant to each person’s decision to purchase our ordinary shares. For example, this discussion does not address any aspect of state, local or non-U.S. tax laws, the possible application of the alternative minimum tax or United States federal gift or estate taxes.

Each holder of our ordinary shares is advised to consult his or her own tax advisor with respect to the specific tax consequences to him or her of purchasing, owning or disposing of our ordinary shares, including the applicability and effect of federal, state, local and foreign income and other tax laws to his or her particular circumstances.

Taxation of Distributions Paid on Ordinary Shares

Subject to the discussion below under “Tax Consequences if We Are a Passive Foreign Investment Company,” a U.S. Holder will be required to include in gross income as dividend income the amount of any distribution paid on our ordinary shares, including any non-U.S. taxes withheld from the amount paid, to the extent the distribution is paid out of our current or accumulated earnings and profits as determined for U.S. federal income tax purposes. Distributions in excess of earnings and profits will be applied against and will reduce the U.S. Holder’s tax basis in its ordinary shares and, to the extent in excess of that basis, will be treated as gain from the sale or exchange of ordinary shares. The dividend portion of such distribution generally will not qualify for the dividends received deduction otherwise available to corporations.

Dividends that are received by U.S. Holders that are individuals, estates or trusts will be taxed at the rate applicable to long-term capital gains (currently a maximum rate of 20%), provided that such dividends meet the requirements to be treated as “qualified dividend income.” Subject to the holding period and risk-of-loss requirements discussed below generally, dividends paid by a non-U.S. corporation that is not a PFIC (as discussed below) will generally be qualified dividend income if either the stock with respect to which the dividend is paid is readily tradable on an established securities market in the United States (such as the Nasdaq Global Select Market) or such corporation is eligible for the benefits of an income tax treaty with the IRS determines is satisfactory and which includes an exchange of information program. The IRS has determined that the U.S.-Israel income tax treaty is satisfactory for this purpose and includes an exchange of information program. Dividends that fail to meet such requirements, and dividends received by corporate U.S. Holders, are taxed at ordinary income tax rates. No dividend received by a U.S. Holder will be a qualified dividend if (1) the U.S. Holder held the ordinary share with respect to which the dividend was paid for less than 61 days during the 121-day period beginning on the date that is 60 days before the ex-dividend date with respect to such dividend, excluding for this purpose, under the rules of Code Section 246(c), any period during which the U.S. Holder has an option to sell, is under a contractual obligation to sell, has made and not closed a short sale of, is the grantor of a deep-in-the-money or otherwise nonqualified option to buy, or has otherwise diminished its risk of loss by holding other positions with respect to, such ordinary share (or substantially identical securities) or (2) the U.S. Holder is under an obligation (pursuant to a short sale or otherwise) to make related payments with respect to positions in property substantially similar or related to the ordinary share with respect to which the dividend is paid. If we were to be PFIC (as such term is defined in the Code) for any year, dividends paid on our ordinary shares in such year or in the following year would not be qualified dividends. In addition, a non-corporate U.S. Holder will be able to take a qualified dividend into account in determining its deductible investment interest (which is generally limited to its net investment income) only if it elects to do so; in such case the dividend will be taxed at ordinary income tax rates.

Distributions of current or accumulated earnings and profits paid in foreign currency to a U.S. Holder (including any non-U.S. taxes withheld from the distributions) will generally be includible in the income of a U.S. Holder in a dollar amount calculated by reference to the exchange rate on the date of the distribution. A U.S. Holder that receives a foreign currency distribution and converts the foreign currency into dollars after the date of distribution may have foreign exchange gain or loss based on any appreciation or depreciation in the value of the foreign currency against the dollar, which will generally be U.S. source ordinary income or loss.

U.S. Holders generally will have the option of claiming the amount of any non-U.S. income taxes withheld at source either as a deduction from gross income or as a dollar-for-dollar credit against their U.S. federal income tax liability. Individuals who do not claim itemized deductions, but instead utilize the standard deduction, may not claim a deduction for the amount of the non-U.S. income taxes withheld, but the amount may be claimed as a credit against the individual’s U.S. federal income tax liability. The amount of non-U.S. income taxes that may be claimed as a credit in any year is subject to complex limitations and restrictions, which must be determined on an individual basis by each holder. These limitations include rules which limit foreign tax credits allowable for specific classes of income to the U.S. federal income taxes otherwise payable on each such class of income. The total amount of allowable foreign tax credits in any year generally cannot exceed the pre-credit U.S. tax liability for the year attributable to non-U.S. source taxable income. Distributions of our current or accumulated earnings and profits generally will be non-U.S. source passive income for U.S. foreign tax credit purposes.

A U.S. Holder will be denied a foreign tax credit for non-U.S. income taxes withheld from a dividend received on the ordinary shares (1) if the U.S. holder has not held the ordinary shares for at least 16 days of the 31-day period beginning on the date which is 15 days before the ex-dividend date with respect to such dividend or (2) to the extent the U.S. holder is under an obligation to make related payments with respect to positions in substantially similar or related property. Any days during which a U.S. Holder has substantially diminished its risk of loss on the ordinary shares are not counted toward meeting the required 16-day holding period.

Taxation of the Disposition of Ordinary Shares

Subject to the discussion below under “Tax Consequences if We Are a Passive Foreign Investment Company,” upon the sale, exchange or other disposition of our ordinary shares (other than in certain non-recognition transactions), a U.S. Holder will recognize capital gain or loss in an amount equal to the difference between the U.S. Holder’s basis in the ordinary shares, which is usually the cost to the U.S. Holder of the ordinary shares, and the amount realized on the disposition. Capital gain from the sale, exchange or other disposition of ordinary shares held more than one year will be long-term capital gain and may, in the case of non-corporate U.S. holders, be subject to a reduced rate of taxation (long-term capital gains are currently taxable at a maximum rate of 20% for U.S. Holders that are individuals, estates or trusts). Gain or loss recognized by a U.S. Holder on a sale, exchange or other disposition of ordinary shares will generally be treated as U.S. source income for U.S. foreign tax credit purposes. The deductibility of a capital loss recognized on the sale, exchange or other disposition of ordinary shares may be subject to limitations.

A U.S. Holder that uses the cash method of accounting calculates the dollar value of the proceeds received on the sale as of the date that the sale settles. However, a U.S. Holder that uses the accrual method of accounting is required to calculate the value of the proceeds of the sale as of the trade date and may therefore realize foreign currency gain or loss. An accrual method U.S. Holder may avoid realizing such foreign currency gain or loss by electing to use the settlement date to determine the proceeds of sale for purposes of calculating the foreign currency gain or loss. In addition, a U.S. Holder that receives foreign currency upon disposition of ordinary shares and converts the foreign currency into dollars after the settlement date or trade date (whichever date the U.S. Holder is required to use to calculate the value of the proceeds of sale) may have foreign exchange gain or loss based on any appreciation or depreciation in the value of the foreign currency against the dollar, which will generally be U.S. source ordinary income or loss.

Net Investment Income Tax

Certain non-corporate U.S. Holders may also be subject to an additional 3.8% tax on all or a portion of their “net investment income,” which may include dividends on, or capital gains recognized from the disposition of, our ordinary shares, subject to certain limitations and exceptions. U.S. Holders are urged to consult their own tax advisors regarding the implications of the Net Investment income tax on their investment in our ordinary shares.

Tax Consequences if We Are a Passive Foreign Investment Company

For U.S. federal income tax purposes, we will be classified as a passive foreign investment company, (a “PFIC”), for any taxable year in which, after applying certain look-through rules, either (i) 75% or more of our gross income is passive income or (ii) at least 50% of the average value of our total assets (determined on a quarterly basis) for the taxable year produce, or are held for the production of, passive income. For this purpose, cash is considered to be an asset which produces passive income. Passive income includes dividends, interest, royalties, rents, annuities and the excess of gains over losses from the disposition of certain assets which produce passive income.

Based on our income, assets, activities and market capitalization, we do not believe that we were a PFIC for the taxable year ended December 31, 2025. However, there can be no assurances that the IRS will not challenge this conclusion. If we were not a PFIC for 2025, U.S. Holders who acquired our ordinary shares in 2025 will not be subject to the PFIC rules described below (regardless of whether we were a PFIC in any prior year) unless we are classified as a PFIC in future years. The tests for determining PFIC status are applied annually, and it is difficult to make accurate predictions of our future income, assets, activities and market capitalization, including fluctuations in the price of our ordinary shares, which are relevant to this determination.

If we are a PFIC, a U.S. Holder of our ordinary shares could be subject to increased tax liability upon the sale or other disposition (including gain deemed recognized if the ordinary shares are used as security for a loan) of its ordinary shares or upon the receipt of distributions that are treated as “excess distributions”, which could result in a reduction in the after-tax return to such U.S. Holder. In general, an excess distribution is the amount of distributions received during a taxable year that exceed 125% of the average amount of distributions received by a U.S. Holder in respect of the ordinary shares during the preceding three taxable years, or if shorter, during the U.S. Holder’s holding period prior to the taxable year of the distribution. Under these rules, the distributions that are excess distributions and any gain on the disposition of ordinary shares would be allocated ratably over the U.S. Holder’s holding period for the ordinary shares. The amount allocated to the current taxable year and any taxable year prior to the first taxable year in which we were a PFIC would be taxed as ordinary income. The amount allocated to each of the other taxable years would be subject to tax at the highest marginal rate in effect for the applicable class of taxpayer for that taxable year, and an interest charge for the deemed deferral benefit would be imposed on the resulting tax allocated to such other taxable years. The tax liability with respect to the amount allocated to taxable years prior to the year of the disposition or distribution cannot be offset by net operating losses. In addition, holders of stock in a PFIC may not receive a “step-up” in basis on shares acquired from a decedent. Furthermore, if we are a PFIC, each U.S. Holder of our common equity generally will be required to file an annual report with the IRS.

As an alternative to the tax treatment described above, a U.S. Holder could elect to treat us as a “qualified electing fund” (“QEF”), in which case such U.S. Holder would be required to include in income, for each taxable year that we are a PFIC, its pro rata share of our ordinary earnings as ordinary income and its pro rata share of our net capital gains as capital gain, subject to a separate election to defer payment of taxes where such deferral is subject to an interest charge. We may supply U.S. Holders that make a request in writing with the information needed to report income and gain under a QEF election, if we are a PFIC. Any income inclusion will be required whether or not such U.S. Holder owns our ordinary shares for an entire taxable year or at the end of our taxable year. The amount so includible will be determined without regard to our prior year losses or the amount of cash distributions, if any, received from us. Special rules apply if a U.S. Holder makes a QEF election after the first year in its holding period in which we are a PFIC. A U.S. Holder’s basis in its ordinary shares will increase by any amount included in income and decrease by any amounts distributed to the extent such amounts were previously taxed under the QEF rules. So long as a U.S. Holder’s QEF election is in effect beginning with the first taxable year in its holding period in which we were a PFIC, any gain or loss realized by such holder on the disposition of its ordinary shares held as a capital asset ordinarily would be capital gain or loss. Such capital gain or loss ordinarily would be long-term if such U.S. Holder had held such ordinary shares for more than one year at the time of the disposition. The QEF election is made on a shareholder-by-shareholder basis, applies to all ordinary shares held or subsequently acquired by an electing U.S. Holder and can be revoked only with the consent of the IRS.

As an alternative to making a QEF election, a U.S. Holder of PFIC stock which is “marketable stock” (e.g., “regularly traded” on the Nasdaq Global Select Market) may in certain circumstances avoid certain of the tax consequences generally applicable to holders of stock in a PFIC by electing to mark the stock to market as of the beginning of such U.S. Holder’s holding period for the ordinary shares. As a result of such election, in any taxable year that we are a PFIC, a U.S. Holder generally would be required to report gain or loss to the extent of the difference between the fair market value of the ordinary shares at the end of the taxable year and such U.S. Holder’s tax basis in its ordinary shares at that time. Any gain under this computation, and any gain on an actual disposition of the ordinary shares in a year in which we are a PFIC, would be treated as ordinary income. Any loss under this computation, and any loss on an actual disposition of the ordinary shares in a year in which we are a PFIC, generally would be treated as ordinary loss to the extent of the cumulative net-mark-to-market gain previously included. Any remaining loss from marking ordinary shares to market will not be allowed, and any remaining loss from an actual disposition of ordinary shares generally would be capital loss. A U.S. Holder’s tax basis in its ordinary shares is adjusted annually for any gain or loss recognized under the mark-to-market election. There can be no assurances that there will be sufficient trading volume with respect to the ordinary shares in order for the ordinary shares to be considered “regularly traded” or that our ordinary shares will continue to trade on the Nasdaq Global Select Market. Accordingly, there are no assurances that the ordinary shares will be marketable stock for these purposes. As with a QEF election, a mark-to-market election is made on a shareholder-by-shareholder basis, applies to all ordinary shares held or subsequently acquired by an electing U.S. Holder and can only be revoked with consent of the IRS (except to the extent the ordinary shares no longer constitute “marketable stock”).

The U.S. federal income tax consequences to a U.S. Holder if we were to be classified as a PFIC in 2025 or any previous taxable year are complex. A U.S. Holder should consult with his or her own advisor regarding those consequences, as well as regarding whether he or she should make either of the elections described above.

Tax Consequences for Non-U.S. Holders of Ordinary Shares

Except as described in “Information Reporting and Back-up Withholding” below, a non-U.S. Holder of our ordinary shares will not be subject to U.S. federal income or withholding tax on the payment of dividends on, and the proceeds from the disposition of, our ordinary shares, unless, in the case of U.S. federal income taxes:

•

the item is effectively connected with the conduct by the non-U.S. Holder of a trade or business in the United States and, in the case of a resident of a country which has a treaty with the United States, the item is attributable to a permanent establishment, or in the case of an individual, the item is attributable to a fixed place of business in the United States; or

•

the non-U.S. Holder is an individual who holds the ordinary shares as a capital asset and is present in the United States for 183 days or more in the taxable year of the disposition, and certain other conditions are met.

Information Reporting and Back-up Withholding

U.S. Holders generally are subject to information reporting requirements with respect to dividends on, or proceeds from the disposition of, our ordinary shares. In addition, a U.S. Holder may be subject, under certain circumstances, to backup withholding with respect to dividends paid on, or proceeds from the disposition of, our ordinary shares unless the U.S. Holder provides proof of an applicable exemption or correct taxpayer identification number, and otherwise complies with the applicable requirements of the backup withholding rules. A U.S. holder of our ordinary shares who provides an incorrect taxpayer identification number may be subject to penalties imposed by the IRS. Amounts withheld under the backup withholding rules are not an additional tax and may be refunded or credited against the U.S. Holder’s U.S. federal income tax liability, provided the required information is timely furnished to the IRS.

Non-U.S. Holders generally are not subject to information reporting or back-up withholding with respect to dividends paid in the United States on, or proceeds from the disposition of, our ordinary shares, provided that the non-U.S. Holder provides a taxpayer identification number, certifies to its foreign status, or establishes another exemption from the information reporting or back-up withholding requirements.

Certain U.S. Holders (and to the extent provided in IRS guidance, certain Non-U.S. Holders) who hold interests in “specified foreign financial assets” (as defined in Section 6038D of the Code) are generally required to file an IRS Form 8938 as part of their U.S. federal income tax returns to report their ownership of such specified foreign financial assets, which may include our ordinary shares, if the total value of those assets exceed certain thresholds. Substantial penalties may apply to any failure to timely file IRS Form 8938. In addition, in the event a holder that is required to file IRS Form 8938 does not file such form, the statute of limitations on the assessment and collection of U.S. federal income taxes of such holder for the related tax year may not close until three years after the date that the required information is filed. Holders should consult their own tax advisors regarding their tax reporting obligations.

Documents on Display

We are subject to the informational requirements of the Exchange Act applicable to foreign private issuers and fulfill these requirements by filing reports with the SEC. These reports include certain financial and statistical information about us and may be accompanied by exhibits.

The SEC maintains an Internet website at http://www.sec.gov that contains reports, proxy statements, information statements and other information regarding issuers that file electronically with the SEC filed through the SEC’s Electronic Data Gathering, Analysis and Retrieval (EDGAR) system.

You may also visit us on the Internet at www.ceragon.com. However, information contained on our website does not constitute a part of this annual report.

Annual Report to Security Holders.

Not applicable.

ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We do not use derivative financial instruments for trading purposes. Accordingly, we have concluded that there is no material market risk exposure of the type contemplated by Item 11, and that no quantitative tabular disclosures are required. We are exposed to certain other types of market risks, as described below.

Foreign Currency Risk

As the majority of our revenues and cost of revenues, as well as a significant portion of our operating expenses, are in U.S. dollars, we have determined that our functional currency is the U.S. dollar. However, a significant portion of our revenues, costs of revenue as well as a major portion of our operating expenses are denominated in other currencies, mainly in NIS, INR, EUR, BRL, ARS and NOK. As our financial results are reported in U.S. dollars, fluctuations in the exchange rates between the U.S. dollar and applicable non-dollar currencies may have an effect on our results of operations. In order to reduce such effect, we hedge a portion of certain cash flow transactions denominated in non-dollar currencies as well as a portion of certain monetary items in the balance sheet, such as trade receivables and trade payables, denominated in non-dollar currencies. The following sensitivity analysis illustrates the impact on our non-dollar net monetary assets assuming an instantaneous 10% change in foreign currency exchange rates from year-end levels, with all other variables held constant. On December 31, 2025, a 10% strengthening of the U.S. dollar versus other currencies would have resulted in a decrease of approximately $4.5 million in our net monetary assets position, while a 10% weakening of the dollar versus all other currencies would have resulted in an increase of approximately $4.5 million in our net monetary assets position.

The counter-parties to our hedging transactions are major financial institutions with high credit ratings. As of December 31, 2025, we had outstanding forward like contracts in the amount of $15.4 million for a period of up to twelve months.

We do not invest in interest rate derivative financial instruments.

ITEM 12.

DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES.

Not applicable.

PART II

ITEM 13.

DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES.

None.

ITEM 14.

MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS.

None

ITEM 15.

CONTROLS AND PROCEDURES

(a)

Disclosure Controls and Procedures

The Company performed an evaluation of the effectiveness of its disclosure controls and procedures that are designed to provide reasonable assurance that the material financial and non-financial information required to be disclosed to the SEC is recorded, processed, summarized and reported timely. Based on the Company’s evaluation, the Company’s management, including the CEO and CFO, has concluded that the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act) as of the end of December 31, 2025 are effective in reaching such reasonable assurance. Notwithstanding the foregoing, there can be no assurance that the Company’s disclosure controls and procedures will detect or uncover all failures of persons within the Company to disclose material information otherwise required to be set forth in the Company’s reports.

(b)

Management’s Annual Report on Internal Control Over Financial Reporting

The Company’s management is responsible for establishing and maintaining adequate internal control over financial reporting for the Company.

The Company performed an evaluation of the effectiveness of its internal control over financial reporting that is designed by, or under the supervision of, the Company’s principal executive and principal financial officers, and effected by the Company’s Board of Directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles and includes those policies and procedures that:

(i)

Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the Company;

(ii)

Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and

(iii)

Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements.

Under the supervision and with the participation of our management, including our CEO and CFO, we conducted an evaluation of the effectiveness of our internal control over financial reporting as of December 31, 2025 based on the framework for Internal Control - Integrated Framework set forth by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (COSO). Based on our assessment under that framework and the criteria established therein, our management concluded that the Company’s internal control over financial reporting was effective as of December 31, 2025, in providing reasonable assurance regarding the reliability of the Company’s financial reporting. Notwithstanding the foregoing, there can be no assurance that the Company’s financial reporting controls and procedures will detect or uncover all failures of persons within the Company to do all the required activities properly, which may impact the fair presentation of the financial statements of the Company otherwise required to be set forth in the financial reports.

Kost, Forer, Gabbay & Kasierer, A Member of EY Global, our independent registered public accounting firm, has issued an attestation report on the effectiveness of our internal control over financial reporting, appearing under Item 18: “FINANCIAL STATEMENTS” on pages F-3 – F-4, and such report is incorporated herein by reference.

(d)

Changes in Internal Controls Over Financial Reporting

There were no changes in the Company’s internal control over financial reporting that occurred during the year ended December 31, 2025, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

ITEM 16A.

AUDIT COMMITTEE FINANCIAL EXPERT

The Company’s Board of Directors has determined that each of Ms. Makov and Messrs. Liran, Hadar, Rosen and Ripstein qualifies as an audit committee financial expert and is an independent director under the Nasdaq Rules and regulations of the SEC.

ITEM 16B. CODE OF ETHICS

The Company has adopted a Code of Ethics that applies to the principal executive officer, principal financial officer, and controller, in addition to all employees of the Company. A copy of the Company’s updated Code of Ethics may be obtained, without charge, upon a written request addressed to the Company’s legal department, 3 Uri Ariav st., Bldg. A (7th Floor) PO Box 112, Rosh Ha’Ayin, Israel, 4810002 (Telephone no. +972-3-543-1000) (e-mail: ir@ceragon.com).

ITEM 16C.

PRINCIPAL ACCOUNTANT FEES AND SERVICES

Fees Paid to Independent Auditors

The following table sets forth, for each of the years indicated, the fees billed by Kost, Forer, Gabbay & Kasierer, A member of EY Global, our auditors, and the percentage of each of the fees out of the total amount billed by them.

	Year Ended December 31,
	2025					2024
Services Rendered	Fees		Percentages			Fees		Percentages

Audit Fees ⁽¹⁾	$	705,250		89	%	$	667,524		84	%
Audit-Related Fees ⁽²⁾	$	7,500		1	%	$	7,500		1	%
Tax Fees ⁽³⁾	$	75,406		10	%	$	119,203		15	%
Total	$	788,156		100	%	$	794,227		100	%

(1)	Audit fees consist of services that would normally be provided in connection with statutory and regulatory filings or engagements, including services that generally only the independent accountant can reasonably provide.

(2)	Audit related fees principally relates to assistance with audit services and consultation

(3)	Tax fees relate to tax compliance, planning and advice

Policies and Procedures

Our Financial Audit Committee is in charge of a policy and procedures for pre-approval of audit and non-audit services rendered by our independent auditors. The policy requires the Financial Audit Committee’s pre-approval of the scope of the engagement of our independent auditor. The policy prohibits retention of the independent auditors to perform the prohibited non-audit functions defined in Section 201 of the Sarbanes-Oxley Act of 2002 or the rules of the SEC, and also considers whether proposed services are compatible with the independence of the public auditors.

All of the fees listed in the table above were pre-approved by our Board of Directors, at the recommendation of our Financial Audit Committee.

ITEM 16D.

EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES

None.

ITEM 16E.

PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS

There were no purchases of our ordinary shares made by or on behalf of the Company or any “affiliated purchaser” during the year ended December 31, 2025.

ITEM 16F.

CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT

Not applicable.

ITEM 16G. CORPORATE GOVERNANCE

The Nasdaq Rules provide that foreign private issuers may follow home country practice in lieu of certain Nasdaq Rules, subject to certain exceptions and except to the extent that such exemptions would not be contrary to U.S. federal securities laws, so long as the foreign private issuer: (i) provides a written statement from an independent counsel in its home country certifying that the company’s practices are not prohibited by the home country law; and (ii) discloses that it does not follow such listing requirement and describes the home country practice followed in its reports filed with the SEC. The practices we currently follow in lieu of Nasdaq Rules are described below:

Compensation Committee Charter: We have opted out of the requirement to adopt and file a compensation committee charter as set forth in Nasdaq Rule 5605(d)(1). Instead, our Compensation Committee conducts itself in accordance with provisions governing the establishment (but not the composition) and the responsibilities of a compensation committee as set forth in the Companies Law and as further stipulated in our Compensation Policy.

Shareholder Approval: We have opted out of the requirement for shareholder approval of stock option plans and other equity-based compensation arrangements as set forth in Nasdaq Rule 5635. Nevertheless, as required under the Companies Law, shareholder voting procedures are followed for the approval of equity-based compensation of certain office holders or employees, such as our CEO and members of our Board of Directors. Equity based compensation arrangements with other office holders are approved by our Compensation Committee and our Board of Directors, provided they are consistent with our Compensation Policy, and in special circumstances in deviation therefrom, taking into account certain considerations as set forth in the Companies Law.

Annual General Meetings of Shareholders: We have opted out of the requirement for conducting annual meetings as set forth in Nasdaq Rule 5620(a), which requires Ceragon to hold its annual meetings of shareholders within twelve months of the end of its fiscal year end. Instead, Ceragon is following home country practice and law in this respect. The Companies Law requires that an annual meeting of shareholders be held every year, and not later than 15 months following the last annual meeting (see in Item 10.B above – “Additional Information – Voting, Shareholders’ Meetings and Resolutions”).

Quorum at General Meetings of Shareholders: As a result of the amendment of our Articles of Association in the 2024 AGM, we follow the requirement set under Rule 5620(c) of the Nasdaq Rules which requires the presence of two or more shareholders holding at least 33 1/3% to establish a quorum for any shareholders meeting.

Distribution of Annual Reports: We have chosen to follow our home country practice in lieu of the requirements of Nasdaq Rule 5250(d)(1), relating to an issuer’s furnishing of its annual report to shareholders. Specifically, we file annual reports on Form 20-F, which contain financial statements audited by an independent accounting firm, electronically with the SEC, and also post a copy on our website.

ITEM 16H.

MINE SAFETY DISCLOSURE

Not Applicable.

ITEM 16I.

DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

Not Applicable.

Item 16J. INSIDER TRADING POLICIES

The Company has adopted an Insider Trading Policy which contains insider trading policies and procedures governing the purchase, sale, and other dispositions of the Company’s securities by directors, senior management, and employees that are reasonably designed to promote compliance with applicable insider trading laws, rules and regulations, and the NASDAQ listing standards applicable to the Company. The Company’s Insider Trading Policy is attached as Exhibit 11.1 to this Annual Report.

Item 16K. CYBERSECURITY

Risk Management and Strategy

We have implemented and maintain various information security processes designed to identify, assess and manage material risks from cybersecurity threats to our critical computer networks, certain third party hosted services, communications systems, hardware and software, and our critical data, including intellectual property, confidential information that is proprietary, strategic or competitive in nature, and employees’ information.

We have established comprehensive governance routines that convene relevant parties at regular intervals, ensuring constant vigilance and strategic oversight in our cybersecurity efforts.

Under the leadership of our Chief Information Officer (CIO), Vice President of Information Technology (VP IT) and Chief Information Security Officer (CISO), our cybersecurity risk management program is guided by experienced professionals. Our CIO has over 20 years of global IT leadership experience, integrating risk-aware technologies, advancing digital transformation, and supporting regulatory compliance. Our VP IT brings 20 years of experience in managing IT infrastructure and security operations, ensuring compliance with industry standards and best practices. Our CISO has over 25 years of experience in IT infrastructure and cybersecurity, developing and strengthening the organization’s cybersecurity posture in alignment with evolving threats.

As part of our proactive approach to cybersecurity, we conduct daily, quarterly, and annual forums designed to address and manage cybersecurity threats. These forums serve as platforms for cross-functional collaboration and decision-making, integrating cybersecurity considerations into our corporate governance framework.

Our annual and quarterly forums are distinguished by the participation of our top executives, underscoring the strategic importance of cybersecurity at the highest levels of management. In addition to our scheduled gatherings, we promptly convene ad-hoc sessions to address immediate and emerging cybersecurity issues as necessary.

This agile and responsive approach to cybersecurity governance enables us to rapidly adapt to the evolving cyber threat landscape and reinforces our commitment to safeguarding our digital assets, preserving the integrity of our data, and maintaining the trust of our customers and shareholders.

As part of our unwavering commitment to cybersecurity, our Company has instituted an annual work plan that focuses on cyber-related objectives and initiatives. This strategic plan forms the blueprint for our cybersecurity efforts throughout the fiscal year and is designed to enhance our defense mechanisms, incident response capabilities, and overall security posture.

We are proactively monitoring the execution of our cybersecurity work plan, consistently tracking our progress against established milestones and deliverables. Our management team regularly reviews these metrics to ensure we are on course to meet or exceed our cybersecurity goals.

In alignment with our dedication to cybersecurity excellence, we conduct thorough reviews of prevailing cybersecurity standards that underscore our commitment to maintaining a secure and trustworthy digital environment. As part of our cybersecurity risk management efforts, we engage independent third-party consultants and auditors to enhance our security posture. These experts play a key role in identifying and mitigating risks through comprehensive assessments. Each year, they conduct an ISO 27001 compliance audit, along with one to two additional security audits and one to two penetration tests on our critical assets. These evaluations help us proactively address vulnerabilities, strengthen resilience against emerging threats.

Governance

Our Corporate Audit Committee is our corporate organ designated by the Board to be charged with the continual monitoring and supervision of our Company's strategic cybersecurity work plan and operational status. In such matters the Corporate Audit Committee shall convene with the attendance of an additional Board member, Mr. Rami Hadar, having extensive cybersecurity experience. The Corporate Audit Committee in this extended composition is poised to respond promptly to emerging cyber threats through ad-hoc engagement when necessary, according to the Company’s relevant policies.

Comprising those members of our Board who possess the highest level of expertise in cybersecurity among our Board members, the Corporate Audit Committee in this extended composition ensures knowledgeable and experienced governance in this critical domain. This underscores the Board's recognition of the importance of cybersecurity.

For a description of the risks from cybersecurity threats that may materially affect the Company and how they may do so, see our risk factors under Part 1. Item 3D. Risk Factors in this Annual Report on Form 20-F, including under “Increased breaches of network or information technology security could have an adverse effect on our business”, and “Cyber-attacks on our customers’ networks involving our products could have an adverse effect on our business”.

100

PART III

ITEM 17.

FINANCIAL STATEMENTS

Not applicable.

ITEM 18.

FINANCIAL STATEMENTS

The Consolidated Financial Statements and related notes thereto required by this item are contained on pages F-2 through F-48 hereof.

Index to Consolidated Financial Statements	Page

Reports of Independent Registered Public Accounting Firm	F-2 - F-5
Consolidated Balance Sheets	F-6 - F-7
Consolidated Statements of Operations	F-8
Consolidated Statements of Comprehensive Income (loss)	F-9
Consolidated Statements of Changes in Shareholders’ Equity	F-10
Consolidated Statements of Cash Flows	F-11 - F-12
Notes to Consolidated Financial Statements	F-13 - F-59

101

ITEM 19. EXHIBITS

1.1	Articles of Association of Ceragon Networks Ltd. (incorporated by reference to Exhibit 1.1 to the Company’s Annual Report on Form 20-F for the year ended December 31, 2024)

2.1	Description of Company’s Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934 (incorporated by reference to Exhibit 2.1 to the Company’s Annual Report on Form 20-F for the year ended December 31, 2024).

4.1

Credit facility, dated as of March 14, 2013 (“Credit Facility”) by and among the Company and Bank Hapoalim B.M., HSBC Bank Plc, Bank Leumi Le’Israel Ltd. and First International Bank of Israel Ltd. (English summary of the material terms) (incorporated by reference to Exhibit 4.4 to the Company’s Annual Report on Form 20-F for the year ended December 31, 2012)

4.2	Amendment, effective as of October 1, 2013, to the Credit Facility (English summary of the material terms) (incorporated by reference to Exhibit 99.3 in the Company’s Report on Form 6-K filed on November 19, 2013)

4.3	Amendment No. 2, effective as of April 29, 2014, to the Credit Facility (English summary of the material terms) (incorporated by reference to Exhibit 4.6 to the Company’s Annual Report on Form 20-F for the year ended December 31, 2014)

4.4	Amendment No. 3, effective as of March 31, 2015, to the Credit Facility (English summary of the material terms) (incorporated by reference to Exhibit 4.7 to the Company’s Annual Report on Form 20-F for the year ended December 31, 2014)

4.5	Amendment No. 4, effective as of March 10, 2016, to the Credit Facility (English summary of the material terms)(incorporated by reference to Exhibit 4.9 to the Company’s Annual Report on Form 20-F for the year ended December 31, 2015)

4.6	Amendment No. 5, executed in December 2016, to the Credit Facility (English summary of the material terms) (incorporated by reference to Exhibit 4.10 to the Company’s Annual Report on Form 20-F for the year ended December 31, 2016)

4.7	Amendment No. 6, effective as of March 30, 2017, to the Credit Facility (English summary of the material terms) (incorporated by reference to Exhibit 4.11 to the Company’s Annual Report on Form 20-F for the year ended December 31, 2016)

4.8	Amendment No. 7, executed on February 12, 2018, to the Credit Facility (English summary of the material terms) (incorporated by reference to Exhibit 4.12 to the Company’s Annual Report on Form 20-F for the year ended December 31, 2017)

4.9	Amendment No. 8, executed on March 26, 2018, to the Credit Facility (English summary of the material terms) (incorporated by reference to Exhibit 4.13 to the Company’s Annual Report on Form 20-F for the year ended December 31, 2017)

4.10	Amendment No. 9, executed on March 29, 2020, to the Credit Facility (English summary of the material terms) (incorporated by reference to Exhibit 4.13 to the Company’s Annual Report on Form 20-F for the year ended December 31, 2019)

4.11	Amendment No. 10, executed on June 25, 2020, to the Credit Facility (English summary of the material terms) (incorporated by reference to Exhibit 4.12 to the Company’s Annual Report on Form 20-F for the year ended December 31, 2020)

4.12	Amendment No. 11, executed on May 3, 2021, to the Credit Facility (English summary of the material terms) (incorporated by reference to Exhibit 4.12 to the Company’s Annual Report on Form 20-F for the year ended December 31, 2021)

4.13	Amendment No. 12, executed on June 30, 2021, to the Credit Facility (English summary of the material terms) (incorporated by reference to Exhibit 4.13 to the Company’s Annual Report on Form 20-F for the year ended December 31, 2021)

102

4.14	Amendment No. 13, executed on January 2, 2022, to the Credit Facility (English summary of the material terms) (incorporated by reference to Exhibit 4.14 to the Company’s Annual Report on Form 20-F for the year ended December 31, 2021)

4.15	Amendment No. 14, executed on June 26, 2022, to the Credit Facility (English summary of the material terms) (incorporated by reference to Exhibit 4.15 to the Company’s Annual Report on Form 20-F for the year ended December 31, 2023)

4.16	Amendment No. 15, executed on June 30, 2022, to the Credit Facility (English summary of the material terms) (incorporated by reference to Exhibit 4.16 to the Company’s Annual Report on Form 20-F for the year ended December 31, 2023)

4.17	Amendment No. 16, executed on June 26, 2023, to the Credit Facility (English summary of the material terms) (incorporated by reference to Exhibit 4.17 to the Company’s Annual Report on Form 20-F for the year ended December 31, 2023)

4.18	Amendment No. 17, executed on December 4, 2023, to the Credit Facility (English summary of the material terms) (incorporated by reference to Exhibit 4.18 to the Company’s Annual Report on Form 20-F for the year ended December 31, 2023)

4.19	Amendment No. 18, executed on June 27, 2024, to the Credit Facility (English summary of the material terms) (incorporated by reference to Exhibit 4.19 to the Company’s Annual Report on Form 20-F for the year ended December 31, 2024)

4.20

Amended and Restated Share Option and RSU Plan, as amended August 10, 2014 (incorporated by reference to Exhibit 4.8 to the Company’s Annual Report on Form 20-F for the year ended December 31, 2014) (incorporated by reference to Exhibit 4.20 to the Company’s Annual Report on Form 20-F for the year ended December 31, 2024)

4.21

Ceragon Networks Ltd. 2024 Equity Incentive Plan (incorporated by reference to Exhibit 4.2 of the Company’s Registration Statement on Form S-8, filed with the Commission on August 6, 2024) (File No. 333-281275)(incorporated by reference to Exhibit 4.21 to the Company’s Annual Report on Form 20-F for the year ended December 31, 2024)

4.22	Lease agreement New Facilities at Rosh Ha’Ain, including its amendments (incorporated by reference to Exhibit 4.13 to the Company’s Annual Report on Form 20-F for the year ended December 31, 2020)

8.1	List of Significant Subsidiaries (incorporated by reference to Exhibit 8.1 to the Company’s Annual Report on Form 20-F for the year ended December 31, 2020)

11.1	Insider Trading Policy (incorporated by reference to Exhibit 11.1 to the Company’s Annual Report on Form 20-F for the year ended December 31, 2024)

12.1	Certification by Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

12.2	Certification by Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

13.1	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

15.1	Consent of Independent Registered Public Accounting Firm

97.1	Ceragon Networks Ltd Policy for Recovery of Erroneously Awarded Compensation (incorporated by reference to Exhibit 97.1 to the Company’s Annual Report on Form 20-F for the year ended December 31, 2023)

101	Inline XBRL Instance Document

101	SCH Inline XBRL Taxonomy Extension Schema Document

101	CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document

101	DEF Inline XBRL Taxonomy Extension Definition Linkbase Document

101	LAB Inline XBRL Taxonomy Extension Labels Linkbase Document

101	PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document

104	Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

103

SIGNATURE

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this annual report on its behalf.

	CERAGON NETWORKS LTD.

	By:	/s/ Doron Arazi
		Name: Doron Arazi
		Title: Chief Executive Officer

Date: April 15, 2026

104

CERAGON NETWORKS LTD. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2025

IN U.S. DOLLARS

INDEX

	Page

Reports of Independent Registered Public Accounting Firm (PCAOB ID:1281)	F-2 – F-5

Consolidated Balance Sheets	F-6 – F-7

Consolidated Statements of Operations	F-8

Consolidated Statements of Comprehensive Income (Loss)	F-9

Consolidated Statements of Changes in Shareholders' Equity	F-10

Consolidated Statements of Cash Flows	F-11 - F-12

Notes to Consolidated Financial Statements	F-13 - F- 59

Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of Ceragon Networks Ltd.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Ceragon Networks Ltd. and subsidiaries (the Company) as of December 31, 2025, and 2024, the related consolidated statements of operations, comprehensive income (loss), changes in shareholders' equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated April 15, 2026 expressed an unqualified opinion thereon.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

F - 2

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Inventory Reserve Valuation
Description of the Matter		As of December 31, 2025, the Company had $61,587 thousands of inventory. As disclosed in Note 2 to the consolidated financial statements, the Company states inventories at the lower of cost or net realizable value. In connection with this policy, the Company periodically reviews inventory quantities on hand and records a reserve for obsolescence, excess quantities and slow-moving inventory based on historical and projected sales volume. The Company’s evaluation of inventory reserve includes management's analysis of inventory aging, future sales forecasts and market conditions. Auditing management’s estimate of obsolescence, excess quantities and slow-moving inventory reserve was complex and required significant judgment due to estimation uncertainty in the significant assumptions such as the future salability of the inventory, assessment by inventory age and market demand for the Company's products.
How we Addressed the Matter in Our Audit		We obtained an understanding, evaluated the design, and tested the operating effectiveness of internal controls over the Company’s process to determine the valuation of the Company’s inventory reserve. This included management’s assessment of the significant assumptions and data underlying the inventory reserve valuation. Our substantive audit procedures included, among others, evaluating the significant assumptions used and testing the accuracy and completeness of the underlying data that management used to estimate the inventory reserve value. We performed inquiries of appropriate non-financial personnel including operational employees, regarding the inventory reserve items and other factors to corroborate management's assertions regarding qualitative judgments about obsolescence, excess quantities and slow-moving inventory. We compared the cost of on-hand inventories to customer demand forecasts and historical sales and evaluated adjustments to sales forecasts for specific product considerations such as technological changes or alternative uses. We also assessed the historical accuracy of management estimates by comparing the forecasted sales to actual utilization of inventory.

/s/ KOST FORER GABBAY & KASIERER

A Member of EY Global

We have served as the Company's auditor since 2002.

Tel-Aviv, Israel

April 15, 2026

F - 3

Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of Ceragon Networks Ltd.

Opinion on Internal Control over Financial Reporting

We have audited Ceragon Networks Ltd. and subsidiaries' internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, Ceragon Networks Ltd. and subsidiaries (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2025, and 2024, the related consolidated statements of operations, comprehensive income (loss), changes in shareholders' equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes and our report dated April 15, 2026 expressed an unqualified opinion thereon.

Basis for Opinion

The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management's Annual Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

F - 4

Definition and Limitations of Internal Control Over Financial Reporting

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ KOST FORER GABBAY & KASIERER

A Member of EY Global

Tel-Aviv, Israel

April 15, 2026

F - 5

Ceragon Networks Ltd. and Subsidiaries

Consolidated Balance Sheets as of December 31

			2025		2024
	Note		$ thousands		$ thousands
Assets

Current assets:
Cash and cash equivalents				38,368		35,311
Trade receivables, net of allowance for credit losses of $14,060
and $13,796 at December 31, 2025 and 2024, respectively		11		99,673		149,619
Inventories		5		61,587		59,693
Other accounts receivable and prepaid expenses		4		25,576		16,415

Total current assets				225,204		261,038

Non-current assets:

Severance pay and pension fund				362		4,915
Property and equipment, net		6		39,952		36,764
Operating lease right-of-use assets		14		16,554		16,702
Intangible assets, net		7		23,182		16,791
Goodwill				11,007		7,749
Other non-current assets				781		1,037

Total non-current assets				91,838		83,958

Total assets				317,042		344,996

The accompanying notes are an integral part of the consolidated financial statements.

F - 6

Ceragon Networks Ltd. and Subsidiaries

Consolidated Balance Sheets as of December 31

			2025			2024
	Note		$ thousands			$ thousands
Liabilities and shareholders’ equity

Current Liabilities:

Trade payables				70,784			91,157
Deferred revenues		17		2,371			2,573
Short-term loans		9		19,000			25,200
Operating lease liabilities		14		4,001			2,971
Other accounts payable and accrued expenses		8		24,071			29,547

Total current liabilities				120,227			151,448

Non-current liabilities:
Accrued severance pay and pensions				2,537			8,359
Operating lease liabilities		14		13,331			12,936
Other long-term payables				8,195			5,928

Total non-current liabilities				24,063			27,223

Commitments and contingent liabilities		13

Shareholders’ Equity:		15
Share capital -
Ordinary shares of NIS 0.01 par value – Authorized: 240,000,000 and 240,000,000 shares on December 31, 2025 and 2024 respectively; Issued: 94,110,803 and 91,874,448 shares on December 31, 2025 and 2024, respectively; Outstanding: 90,629,280 and 88,392,925 shares on December 31, 2025 and 2024, respectively				234			232
Additional paid-in capital				454,640			447,369
Treasury shares at cost – 3,481,523 ordinary shares on December 31, 2025 and 2024				(20,091	)		(20,091	)
Accumulated other comprehensive loss				(8,816	)		(10,060	)
Accumulated deficit				(253,215	)		(251,125	)

Total shareholders' equity				172,752			166,325

Total liabilities and shareholders' equity				317,042			344,996

The accompanying notes are an integral part of the consolidated financial statements.

F - 7

Ceragon Networks Ltd. and Subsidiaries

Consolidated Statements of Operations

		Year ended December 31,
		2025			2024		2023
		$ thousands			$ thousands		$ thousands
Revenues	18		338,728			394,190		347,179
Cost of revenues			224,176			257,339		227,310

Gross profit			114,552			136,851		119,869

Operating expenses:
Research and development, net			30,427			34,951		32,274
Sales and marketing			48,681			44,717		40,577
General and administrative			24,394			14,220		23,793
Restructuring and related charges			3,732			1,416		897
Acquisition and integration-related charges	3b		72			1,660		1,118
Other operating expenses	1c		-			1,160		-

Total operating expenses			107,306			98,124		98,659

Operating income			7,246			38,727		21,210
Financial and other expenses, net	19		6,538			11,474		8,468

Income before taxes on income			708			27,253		12,742

Taxes on income	16c		2,798			3,190		6,522

Net income (loss)			(2,090	)		24,063		6,220

Net income (loss) per share:

Basic net income (loss) per share			(0.02	)		0.28		0.07

Weighted average number of ordinary shares used in computing basic net income (loss) per share			89,787,286			86,191,178		84,617,774

Diluted net income (loss) per share			(0.02	)		0.27		0.07

Weighted average number of ordinary shares used in computing diluted net income (loss) per share			89,787,286			88,460,001		85,482,626

The accompanying notes are an integral part of the consolidated financial statements.

F - 8

Ceragon Networks Ltd. and Subsidiaries

Consolidated Statements of Comprehensive Income (Loss)

	Year ended December 31,
	2025			2024			2023
	$ thousands			$ thousands			$ thousands
Net income (loss)		(2,090	)		24,063			6,220
Other comprehensive income (loss):

Change in foreign currency translation adjustment		410			(1,459	)		878

Change in unrealized gains (losses) on cash flow hedges:
Unrealized gains (losses) during the period		3,695			6			(1,418	)
Losses (gains) reclassified into net income (loss)		(2,861	)		(520	)		3,609
Net change		834			(514	)		2,191

Other comprehensive income (loss)		1,244			(1,973	)		3,069

Comprehensive income (loss)		(846	)		22,090			9,289

The accompanying notes are an integral part of the consolidated financial statements.

F - 9

Ceragon Networks Ltd. and Subsidiaries

Consolidated Statements of Changes in Shareholders' Equity

	Ordinary shares		Share capital			Additional paid-in capital		Treasury shares at cost			Accumulated other comprehensive loss			Accumulated deficit			Total shareholders' equity
			$ thousands			$ thousands		$ thousands			$ thousands			$ thousands			$ thousands
Balance as of January 1, 2023		84,353,681		224			432,214		(20,091	)		(11,156	)		(281,408	)		119,783

Exercise of options and vesting of RSUs		559,738		*	)		39		-			-			-			39
Share-based compensation		-		-			3,964		-			-			-			3,964
Shares issued as consideration in connection with the acquisition of Siklu Communication Ltd.		504,902		*	)		944		-			-			-			944
Other comprehensive income, net		-		-			-		-			3,069			-			3,069
Net income		-		-			-		-			-			6,220			6,220

Balance as of December 31, 2023		85,418,321		224			437,161		(20,091	)		(8,087	)		(275,188	)		134,019

Exercise of options and vesting of RSUs		2,974,604		8			5,910		-			-			-			5,918
Share-based compensation		-		-			4,298		-			-			-			4,298
Other comprehensive loss, net		-		-			-		-			(1,973	)		-			(1,973	)
Net income		-		-			-		-			-			24,063			24,063

Balance as of December 31, 2024		88,392,925		232			447,369		(20,091	)		(10,060	)		(251,125	)		166,325

Exercise of options and vesting of RSUs		1,367,713		*	)		690		-			-			-			690
Share-based compensation		-		-			4,091		-			-			-			4,091
Shares issued as consideration in connection with the acquisition of End 2 End Technologies		214,657		1			989		-			-			-			990
Shares issued as consideration in connection with the acquisition of Siklu Communication Ltd.		653,985		1			1,501		-			-			-			1,502
Other comprehensive income, net		-		-			-		-			1,244			-			1,244
Net loss		-		-			-		-			-			(2,090	)		(2,090	)

Balance as of December 31, 2025		90,629,280		234			454,640		(20,091	)		(8,816	)		(253,215	)		172,752

*) Represent an amount lower than $1 thousand

The accompanying notes are an integral part of the consolidated financial statements.

F - 10

Ceragon Networks Ltd. and Subsidiaries

Consolidated Statements of Cash Flows

	Year ended December 31,
	2025			2024			2023
	$ thousands			$ thousands			$ thousands
Cash flows from operating activities:
Net income (loss)		(2,090	)		24,063			6,220
Adjustments required to reconcile net income (loss) to net
cash provided by (used in) operating activities:
Depreciation and amortization		14,327			12,112			9,967
Loss from sale of property and equipment, net		44			207			61
Share-based compensation expense		4,091			4,298			3,964
Decrease in accrued severance pay and pensions, net		(599	)		(970	)		(267	)
Decrease (increase) in trade receivables, net		52,567			(46,224	)		(2,370	)
Decrease (increase) in other assets (including other accounts receivable, prepaid expenses, other non-current assets, and the effect of exchange rate changes on cash and cash equivalents)		(8,819	)		1,344			16,994
Decrease (increase) in inventories		(2,128	)		7,606			6,303
Decrease in operating lease right-of-use assets		4,578			4,632			3,781
Increase (decrease) in trade payables		(22,103	)		23,032			(1,847	)
Increase (decrease) in other accounts payable and accrued
expenses (including other long-term liabilities)		(5,088	)		3,898			1,677
Decrease in operating lease liability		(3,005	)		(4,196	)		(4,034	)
Decrease in deferred revenues		(219	)		(3,604	)		(9,562	)

Net cash provided by operating activities		31,556			26,198			30,887

Cash flows from investing activities:
Purchase of property and equipment		(13,609	)		(14,581	)		(9,955	)
Software development costs capitalized		(3,818	)		(1,883	)		(2,944	)
Payments made in connection with business acquisitions,
net of acquired cash		(6,570	)		-			(7,971	)

Net cash used in investing activities		(23,997	)		(16,464	)		(20,870	)

The accompanying notes are an integral part of the consolidated financial statements.

F - 11

Ceragon Networks Ltd. and Subsidiaries

Consolidated Statements of Cash Flows

	Year ended December 31,
	2025			2024			2023
	$ thousands			$ thousands			$ thousands
Cash flows from financing activities:

Proceeds from exercise of stock options		690			5,878			39
Repayments of bank credits and loans, net		(6,200	)		(7,400	)		(4,900	)

Net cash used in financing activities		(5,510	)		(1,522	)		(4,861	)

Effect of exchange rate changes on cash and cash equivalents		1,008			(1,138	)		133

Increase in cash and cash equivalents		3,057			7,074			5,289

Cash and cash equivalents at the beginning of the year		35,311			28,237			22,948

Cash and cash equivalents at the end of the year		38,368			35,311			28,237

Supplemental disclosure of non - cash investing activities:

Fair value of ordinary shares issued and contingent holdback obligations to selling shareholders provided as consideration
for business combination		2,207			-			2,561

Supplemental disclosure of cash flow information:

Cash paid for income taxes, net		2,650			1,127			2,839

Cash paid for interest on bank loans and factoring fees		3,611			4,682			6,040

The accompanying notes are an integral part of the consolidated financial statements.

F - 12

Ceragon Networks Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements

Note 1 - General

Ceragon Networks Ltd. ("the Company") is a global innovator and leading solutions provider of end-to-end wireless connectivity, specializing in transport, access, and AI-powered managed & professional services. The Company provides wireless transport solutions and services that enable cellular operators, other service providers and private networks to build new networks and evolve networks towards 4G and 5G services. The Company’s unique multicore technology and disaggregated approach to wireless transport provides highly reliable, fast to deploy, high-capacity wireless transport for a wide range of communication network use cases with minimal use of spectrum, power, real estate, and labor resources. It enables increased productivity, as well as simple and quick network modernization. The Company delivers a complete portfolio of turnkey end-to-end AI-based managed and professional services that ensure efficient network rollout and optimization to achieve the highest value for its customers.

The Company sells its products through a direct sales force, systems integrators, distributors and original equipment manufacturers.

The Company's wholly owned subsidiaries provide research and development, marketing, manufacturing, distribution, sales, professional services and technical support to the Company's customers worldwide.

As to principal markets and major customers, see notes 18b and 18c.

On December 4, 2023, the Company completed a series of definitive agreements with Siklu Communication Ltd. (“Siklu”) and Siklu Inc. (the “Seller”), referred to as the “Siklu Acquisition”. In the framework of the Siklu Acquisition, the Company acquired all of the outstanding shares of Siklu and the assets and business activities of the Seller. Siklu is a privately held Israeli-based company which is a provider of multi-Gigabit “wireless fiber” connectivity in urban, suburban and rural areas. See also note 3.

On January 31, 2025, the Company completed a series of definitive agreements with End 2 End Technologies, LLC (“E2E”), and E2E’s stockholders (the “E2E Sellers”), referred to as the “E2E Acquisition”. In the framework of the E2E Acquisition, the Company acquired by way of merger E2E. E2E is a US systems integration and software development company that serves Private Networks, primarily in the Energy and Utilities markets. See also note 3.

Note 2 - Significant Accounting Policies

A. Basis of presentation

The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. ("U.S. GAAP").

F - 13

Ceragon Networks Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements

Note 2 - Significant Accounting Policies (cont’d)

B. Use of estimates

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. The Company's management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. Actual results could differ from those estimates.

On an ongoing basis, the Company's management evaluates estimates, including those related to the fair value of acquired intangible assets and goodwill and the useful life of intangible assets, tax assets and liabilities, fair values of share-based awards, inventory write-offs, warranty provision, incremental borrowing rate (IBR) used for lease liabilities measurement, and allowance for credit loss. Such estimates are based on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities.

C. Financial statements in U.S. dollars

A majority of the revenues of the Company and certain of its subsidiaries are generated in U.S. dollars ("dollars"). In addition, a substantial portion of the Company's and certain of its subsidiaries' costs is incurred in dollars. Since management believes that the dollar is the currency of the primary economic environment in which the Company and its subsidiaries operate and considers the non-U.S. subsidiaries to be a direct, integral extension of the parent company's operations, the dollar is its functional and reporting currency.

Accordingly, amounts in currencies other than U.S dollars have been re-measured in accordance with ASC topic 830, "Foreign Currency Matters" ("ASC 830") as follows:

Monetary balances - at the exchange rate in effect on the balance sheet date. Consolidated statements of operations items - average exchange rates prevailing during the year.

All exchange gains and losses from the re-measurement mentioned above are reflected in the statement of operations in financial and other expenses, net (see note 19).

The financial statements of the Company's Brazilian subsidiary, whose functional currency is not the dollar, have been re-measured and translated into dollars. All amounts on the balance sheets have been translated into the dollar using the exchange rates in effect on the relevant balance sheet dates. All amounts in the statements of operations have been translated into the dollar using the average exchange rate for the relevant periods. The resulting translation adjustments are reported as a component of accumulated other comprehensive income (loss) in shareholders' equity.

D. Principles of consolidation

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

E. Cash and cash equivalents

Cash and cash equivalents consist of cash on hand and short-term unrestricted, highly liquid investments that are readily convertible to cash and with original maturities of three months or less at acquisition.

F - 14

Ceragon Networks Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements

Note 2 - Significant Accounting Policies (cont’d)

F. Inventories

Inventories are stated at the lower of cost or net realizable value. Inventory write-offs are provided to cover risks arising from slow-moving items, technological obsolescence, excess inventories, discontinued products, and for market prices lower than cost, if any.

The Company periodically evaluates the quantities on hand relative to historical and projected sales volume (which is determined based on an assumption of future demand and market conditions) and the age of the inventory. At the point of the loss recognition, a new lower cost basis for that inventory is established. In addition, if required, the Company records a liability for firm non-cancelable and unconditional purchase commitments with contract manufacturers for quantities in excess of the Company's future demands forecast consistent with its valuation of excess and obsolete inventory.

Inventory includes costs of products delivered to customers and not recognized as cost of sales, where revenues in the related arrangements were not recognized.

Cost is determined for all types of inventory using the moving average cost method plus indirect costs.

G. Property and equipment

Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated by the straight-line method over the estimated useful lives of the assets, at the following annual rates:

	%

Computers, manufacturing and peripheral equipment	6 – 33
Office, furniture and equipment	Mainly 15
Leasehold improvements	Over the shorter of the term of the lease or useful life of the asset

The Company capitalizes development costs incurred during the application development stage that are related to internal use technology that supports its cloud services. Under ASC 350-40, internal-use software is included in property and equipment, net in the consolidated balance sheets, under “Computers, manufacturing and peripheral equipment”. Capitalization of such costs begins when the preliminary project stage is complete and ceases at the point in which the project is substantially complete and is ready for its intended purpose. The costs are then amortized on a straight-line basis and are recognized as an operating expenses within the consolidated statements of operations. Costs incurred in the process of software production are charged to expenses as incurred.

H. Leases

The Company has operating leases for corporate offices and cars. Operating leases are reported separately in the Company's consolidated balance sheets on December 31, 2025 and 2024. The Company has no finance leases as of December 31, 2025 or 2024.

The Company determines if an arrangement is a lease at inception. A contract is determined to contain a lease component if the arrangement provides the Company with a right to control the use of an identified asset. Leases with an initial term of 12 months or less are not recorded on the balance sheet and lease expenses for these leases is recognized on a straight-line basis over the lease term. For operating leases, lease expenses for minimum fixed lease payments is recognized on a straight-line basis over the lease term.

F - 15

Ceragon Networks Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements

Note 2 - Significant Accounting Policies (cont’d)

H. Leases (cont’d)

Lease contracts may contain variable lease costs, such as common area maintenance and utilities, that vary over the term of the contract. Certain lease agreements include rental payments adjusted periodically for the consumer price index (“CPI”). The ROU and lease liability were calculated using the initial CPI and will not be subsequently adjusted unless the liability is reassessed for other reasons. As the interest rate implicit in lease contracts is not readily determinable, lease liabilities are measured using the Company’s estimated incremental borrowing rate (“IBR”), based on the information available at commencement date in determining the present value of lease payments. The Company’s IBR is estimated to approximate the interest rate on similar terms and payments in economic environments where the leased asset is located. Variable lease costs are not included in minimum fixed lease payments and, as a result, are excluded from the measurement of the right-of-use assets and lease liabilities. The Company expenses all variable lease costs as incurred. The Company combines its lease payments and fixed payments for non-lease components and accounts for them together as a single lease component.

I. Intangible assets, net

The Company's intangible assets are comprised of incurred software development costs, core technology, customer relationship, and trademark.

The Company capitalizes certain incurred software development costs. Capitalization of incurred software development costs is in accordance with ASC 985-20, "Software - Costs of Software to be Sold, Leased, or Marketed". Capitalization of software development costs begins upon the determination of technological feasibility and continues up to the time the software is available for general release to customers, at which time capitalized software costs are amortized to cost of revenues on a straight-line basis over the expected life of the related product.

Other purchased intangible assets have been recorded in the Company's financial statements as a result of acquisitions, consisting of core technology, customer relationship, and trademark.

Intangible assets that are considered to have definite useful life are amortized using the straight-line basis over their estimated useful lives.

J. Business Combinations

The Company applies the provisions of ASC 805, “Business Combination” and allocates the fair value of purchase consideration to the tangible assets acquired, liabilities assumed and intangible assets acquired based on their estimated fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. The allocation of the purchase price requires management to make significant estimates in determining the fair values of assets acquired and liabilities assumed, especially with respect to intangible assets. These estimates can include, but are not limited to, the cash flows that an asset is expected to generate in the future, the appropriate weighted-average cost of capital and the cost savings expected to be derived from acquiring an asset. These estimates are inherently uncertain and unpredictable. During the measurement period, which may be up to one year from the acquisition date, adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed may be recorded, with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s Consolidated Statements of Operation. Acquisition-related expenses are recognized separately from the business combination and are expensed as incurred (see also Note 3).

F - 16

Ceragon Networks Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements

Note 2 - Significant Accounting Policies (cont’d)

K. Goodwill

Goodwill is recorded as a result of acquisitions. Goodwill represents the excess of the purchase price in a business combination over the fair value of identifiable net tangible and intangible assets acquired. Goodwill is not amortized but rather is subject to an impairment test.

ASC No. 350, “Intangibles - Goodwill and other” (“ASC No. 350”) requires goodwill to be tested for impairment at the reporting unit level at least annually or between annual tests in certain circumstances and written down when impaired.

ASC No. 350 allows an entity to first assess qualitative factors to determine whether it is necessary to perform the quantitative goodwill impairment test. If the qualitative assessment does not result in a more likely than not indication of impairment, no further impairment testing is required. If it does result in a more likely than not indication of impairment, the quantitative goodwill impairment test is performed. Alternatively, ASC No. 350 permits an entity to bypass the qualitative assessment for any reporting unit and proceed directly to performing the quantitative goodwill impairment test. If the carrying value of a reporting unit exceeds its fair value, the Company recognizes an impairment of goodwill for the amount of this excess, in accordance with the guidance in FASB Accounting Standards Update (“ASU”) No. 2017-04, Intangibles - Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment.

The Company operates in one operating segment, and this segment is the only reporting unit. The Company performs an annual goodwill impairment test during the fourth quarter of each fiscal year, or more frequently if impairment indicators are present and compares the fair value of the reporting unit with its carrying value.

During the years 2025, 2024 and 2023, no goodwill impairment losses have been identified.

L. Impairment of long-lived assets

The Company's long-lived assets are reviewed for impairment in accordance with ASC topic 360," Property Plant and Equipment", ("ASC 360"), whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the asset. If an asset is considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value. During the years 2025, 2024 and 2023, no impairment losses have been recognized.

M. Income taxes

The Company accounts for income taxes in accordance with ASC topic 740, "Income Taxes" ("ASC 740"). This Statement prescribes the use of the liability method whereby deferred tax asset and liability account balances are determined based on differences between the financial reporting and tax bases of assets and liabilities and for carry-forward losses deferred taxes are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company and its subsidiaries provide a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value if it is more likely than not that some portion or all of the deferred tax asset will not be realized.

F - 17

Ceragon Networks Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements

Note 2 - Significant Accounting Policies (cont’d)

M. Income taxes (cont’d)

ASC 740 contains a two-step approach to recognizing and measuring uncertain tax positions accounted for in accordance with ASC 740. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes.

The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. The Company elected to classify interest expenses and penalties recognized in the financial statements as income taxes.

N. Revenue recognition

The Company recognizes revenue when (or as) it satisfies performance obligations by transferring promised products or services to its customers in an amount that reflects the consideration the Company expects to receive. The Company applies the following five steps: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied.

The Company determines that it has a contract with a customer when each of the parties has an identifiable right with regards to the products or services that should be transferred, payment terms, and customer’s ability and intention to pay, as long as contract’s commercial substance. A master sale agreement under which a customer places purchase orders to obtain goods or services does not itself constitute a contract with a customer, as it usually does not create an enforceable right and obligations for the parties. The Company considers customer purchase orders, which in some cases are governed by master sales agreements, to be the contracts with a customer.

For each contract, the Company considers the promise to transfer tangible products, network roll-out, professional services and customer support, each of which are distinct, to be the identified performance obligations. In determining the transaction price, the Company evaluates whether the price is subject to rebates, amounts collected on behalf of other third parties, indirect taxes or other adjustments, to determine the net consideration that the Company expects to receive. As the Company’s standard payment terms are less than one year, the contracts have no significant financing component. The Company allocates the transaction price to each distinct performance obligation based on their relative standalone selling price, which is the price at which the Company would sell a promised good or service separately to a customer. Standalone selling prices for the Company’s products and services are generally determined using observable inputs when available. In the absence of such observable inputs, the Company applies the expected cost plus a margin method. Revenue from tangible products is recognized at a point in time when control of the product is transferred to the customer (i.e., when the Company’s performance obligation is satisfied), in accordance with the agreed-upon delivery terms.

Revenues from customer support and extended warranty are recognized ratably over the contract period, as the services have a consistent continuous pattern of transfer to a customer during the contract period. The costs associated with these contracts are recognized as incurred. Revenues from network roll-out and professional services are recognized when the Company's performance obligation is satisfied.

A warranty is considered an assurance type warranty if it provides the customer with assurance that the product will function as intended for a limited period of time. An assurance type warranty is not accounted for as a separate performance obligation under the revenue model.

The Company provides product assurance warranties typically for periods of about 2 years that cover the compliance of the products with agreed-upon specifications. A provision is recorded for estimated warranty costs based on the Company's experience.

F - 18

Ceragon Networks Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements

Note 2 - Significant Accounting Policies (cont’d)

N. Revenue recognition (cont’d)

The Company elected to use the practical expedient and recognize the incremental costs of obtaining contracts as an expense since the amortization period of the assets that the Company otherwise would have recognized is one year or less. Additionally, the Company has elected to apply the practical expedient such that it does not evaluate payment terms of one year or less for the existence of a significant financing component.

O. Research and development expenses, net

Research and development expenses, net of government grants, are charged to the statement of operations as incurred, except for development expenses, which were capitalized in accordance with ASC 985-20 "Software – Costs of Software to be Sold, Leased, or Marketed" (see I above).

The Company records grants received from the Office of the Innovation Authority of the Israeli Ministry of Economics (the "IIA") and from the European Commission (under the Horizon Europe program) as a reduction to Research and development expenses. Royalties payable to the IIA are recognized pursuant to sales of related products and are included in Cost of revenues.

P. Warranty costs

The Company generally offers a standard limited warranty, including parts and labor for an average period of 1-3 years for its products. The Company estimates the costs that may be incurred under its basic limited warranty and records a liability in the amount of such costs at the time product revenue is recognized. Factors that affect the Company's warranty liability include the number of installed units, historical and anticipated rates of warranty claims, and cost per claim. The Company periodically assesses the adequacy of its recorded warranty liability and adjusts the amounts as necessary.

The Company recorded income (expenses) from decrease (increase) of warranty provision for the years ended December 31, 2025, 2024 and 2023 in the amounts of $248 thousand, $(631) thousand and $(293) thousand respectively. As of December 31, 2025 and 2024, the warranty provision was $2,077 thousand and $2,325 thousand respectively.

Q. Derivative instruments

The Company has instituted a foreign currency cash flow hedging program using foreign currency forward contracts ("derivative instruments") in order to hedge the exposure to variability in expected future cash flows resulting from changes in related foreign currency exchange rates. These transactions are designated as cash flow hedges, as defined under ASC topic 815, "Derivatives and Hedging".

ASC 815 requires companies to recognize all of their derivative instruments as either assets or liabilities in the financial statements at fair value. The Company measured the fair value of the contracts in accordance with ASC topic 820, "Fair value Measurement and Disclosures" at Level 2 (see also note 2v). The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, further, on the type of hedging relationship.

For those derivative instruments that are designated and qualify as hedging instruments, a company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge or a cash flow hedge.

F - 19

Ceragon Networks Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements

Note 2 - Significant Accounting Policies (cont’d)

Q. Derivative instruments (cont’d)

For derivative instruments that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the gain or loss on the derivative instrument is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings (see also note 2w). For derivative instruments that don’t meet the definition of a hedge, the changes in the fair value are included immediately in earnings in “Financial and other expenses, net” in each reporting period.

The Company's cash flow hedging program is to hedge against the risk of overall changes in cash flows resulting from forecasted foreign currency of salary. The Company hedges portions of its forecasted expenses denominated in NIS with forward exchange contracts.

R. Concentrations of credit risk

Financial instruments that potentially subject the Company and its subsidiaries to concentrations of credit risk consist principally of cash and cash equivalents, and trade receivables.

The majority of the Company's cash and cash equivalents are maintained in U.S. dollar. Generally, these cash and cash equivalents may be redeemed upon demand. Management believes that the financial institutions that hold the Company's and its subsidiaries' cash and cash equivalents are institutions with high credit standing, and accordingly, minimal credit risk exists with respect to these assets.

The Company's trade receivables are geographically diversified and derived from sales to customers all over the world. The Company and its subsidiaries generally do not require collateral; however, in certain circumstances, the Company and its subsidiaries may require letters of credit, additional guarantees or advance payments.

The Company and its subsidiaries perform ongoing credit evaluations of their customers and insure certain trade receivables under credit insurance policies.

S. Transfers of financial assets

ASC 860 "Transfers and Servicing", ("ASC 860"), establishes a standard for determining when a transfer of financial assets should be accounted for as a sale. The Company's arrangements are such that the underlying conditions are met for the transfer of financial assets to qualify for accounting as a true sale. The transfers of financial assets are typically performed by the factoring of receivables to four financial institutions.

As of December 31, 2025, and 2024, the Company sold trade receivables to several different financial institutions in a total net amount of $26,146 thousand and $30,346 thousand, respectively. Control and risk of those trade receivables were fully transferred in accordance with ASC 860.

During the years ended on December 31, 2025, 2024 and 2023, the Company recorded amounts of $1,300 thousand, $1,612 thousand, and $2,038 thousand, respectively, as financial expenses related to its factoring arrangements.

F - 20

Ceragon Networks Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements

Note 2 - Significant Accounting Policies (cont’d)

T. Severance pay

The Company's severance pay liability for its Israeli employees is calculated pursuant to Israel's Severance Pay Law based on the most recent salary of the employees multiplied by the number of years of employment, as of the balance sheet date. Employees are entitled to one month's salary for each year of employment or a portion thereof. The Company's liability for all of its employees in Israel is covered by monthly deposits with pension funds, insurance policies and an accrual. The value of the funds deposited into pension funds and insurance policies is recorded as an asset - Severance pay fund - in the Company's balance sheet.

The severance pay fund includes the deposited funds and accumulated adjustments to the Israeli Consumer Price Index up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to Israel's Severance Pay Law or labor agreements. The value of the deposited funds in insurance policies, is based on the cash surrendered value of these policies and includes profits / losses.

Starting April 2009, the Company's agreements with new employees in Israel are under section 14 of the Severance Pay Law -1963. The Company's contributions for severance pay shall replace its severance obligation, no additional calculations shall be conducted between the parties regarding the matter of severance pay and no additional payments shall be made by the Company to the employee. Further, the related obligation and amounts deposited on behalf of such obligation are not stated on the balance sheet, as the Company is legally released from obligation to employees once the deposit amounts have been paid.

As of December 2025, and 2024, accrued severance pay amounted to $613 thousand and $6,661 thousand, respectively. Severance expenses for the years ended December 31, 2025, 2024 and 2023, amounted to approximately $3,664 thousand, $2,074 thousand, and $3,449 thousand, respectively.

The Company accounts for its obligations for pension and other post-retirement benefits in accordance with ASC 715, "Compensation - Retirement Benefits". For more information refer to note 12.

U. Accounting for Share-based compensation

ASC topic 718, "Compensation - Stock Compensation", ("ASC 718"), requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods in the Company's consolidated statements of operations.

The Company estimates the fair value of stock options granted under ASC 718 using the binomial model with the following assumptions for 2025, 2024 and 2023:

	December 31,
	2025	2024	2023

Dividend yield	0%	0%	0%
Volatility	48% - 59%	42% - 61%	41% - 63%
Risk-free interest	3.5% - 3.8%	4.3% - 4.4%	4.1% - 5.5%
Early exercise multiple	1.70	1.70	2.10

F - 21

Ceragon Networks Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements

Note 2 - Significant Accounting Policies (cont’d)

U. Accounting for Share-based compensation (cont’d)

Risk-free interest rates are based on the yield from U.S. Treasury zero-coupon bonds with a term equivalent to the contractual life of the options and the volatility of the price of the Company's shares based upon actual historical stock price movements. The Early exercise factor represents the value of the underlying stock as a multiple of the exercise price of the option, which, if achieved, results in the exercise of the option.

Early exercise multiple is based on actual historical exercise activity. The expected term of the options granted is derived from output of the option valuation model and represents the period of time that options granted are expected to be outstanding.

The Company recognizes compensation expenses using the accelerated method for all awards ultimately expected to vest. Estimated forfeitures are based on historical pre-vesting forfeitures and on management's estimates. ASC topic 718 requires forfeitures to be estimated and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates.

V. Fair value of financial instruments

The Company applies ASC 820, "Fair Value Measurements and Disclosures". Under this standard, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the "exit price") in an orderly transaction between market participants at the measurement date.

In determining fair value, the Company uses various valuation approaches. ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.

The hierarchy is broken down into three levels based on the inputs as follows:

Level 1 - Valuations based on quoted prices in active markets for identical assets that the Company has the ability to access. Valuation adjustments and block discounts are not applied to Level 1 instruments. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment.

Level 2 - Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

The availability of observable inputs can vary from investment to investment and is affected by a wide variety of factors, including, for example, the type of investment, the liquidity of markets and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment and the investments are categorized as Level 3.

F - 22

Ceragon Networks Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements

Note 2 - Significant Accounting Policies (cont’d)

V. Fair value of financial instruments (cont’d)

The following methods and assumptions were used by the Company and its subsidiaries in estimating their fair value disclosures for financial instruments.

The carrying amounts of cash and cash equivalents, trade receivables, other accounts receivable and prepaid expenses, trade payables, and other accounts payable and accrued expenses approximate their fair values due to the short-term maturities of such instruments.

The derivative instruments are classified within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments.

The liability with respect to the Holdback Consideration regarding the End2End Acquisition is classified within Level 2 as the valuation inputs are based on quoted prices and market observable data.

The liability with respect to the Holdback Consideration regarding the Siklu Acquisition is classified within Level 3, as this liability is valued using valuation models. Some of the inputs to these models are unobservable in the market.

The liability with respect to the Earn-Out Consideration regarding the End2End Acquisition is classified within Level 3, as this liability is valued using valuation models. Some of the inputs to these models are unobservable in the market.

W. Comprehensive income (loss)

The Company accounts for comprehensive income in accordance with ASC topic 220, "Comprehensive Income". This statement establishes standards for the reporting and display of comprehensive income and its components in a full set of general-purpose financial statements. Comprehensive income generally represents all changes in shareholders' equity during the period except those resulting from investments by, or distributions to, shareholders.

The components of accumulated other comprehensive income - (“AOCI”) were as follows:

	Unrealized Gains (Losses) on Cash Flow Hedges			Foreign Currency Translation Adjustments			Total
	$ thousands			$ thousands			$ thousands
Balance as of January 1, 2025		406			(10,466	)		(10,060	)
Other comprehensive income (loss) before reclassifications		3,695			410			4,105
Amounts reclassified from AOCI		(2,861	)		-			(2,861	)
Other comprehensive income		834			410			1,244

Balance as of December 31, 2025		1,240			(10,056	)		(8,816	)

The effects on net loss of amounts reclassified from AOCI for the year ended December 31, 2025 derived from realized losses on cash flow hedges, included in cost of sales and operating expenses.

F - 23

Ceragon Networks Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements

Note 2 - Significant Accounting Policies (cont’d)

X. Treasury shares

The Company repurchased its ordinary shares on the open-market and holds such shares as Treasury shares. The Company presents the cost of repurchased treasury shares as a reduction of shareholders' equity.

Y. Basic and diluted net earnings per share

Basic net earnings per share are computed based on the weighted average number of ordinary shares outstanding during each year. Diluted net earnings per share is computed based on the weighted average number of ordinary shares outstanding during each year, plus dilutive potential ordinary shares considered outstanding during the year, in accordance with ASC topic 260, "Earnings Per Share" ("ASC 260").

The total weighted average number of shares related to the outstanding options and RSUs excluded from the calculations of diluted net earnings per share due to their anti-dilutive effect was 2,533,137, 2,364,143 and 5,164,222 for the years ended December 31, 2025, 2024 and 2023, respectively.

Z. Recently Adopted Accounting Standards

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topics 740), Improvements to Income Tax Disclosures, which expands the disclosure requirements for income taxes, primarily related to the rate reconciliation and income taxes paid. The Company adopted ASU 2023-09 during the year ended December 31, 2025, on a prospective basis. The adoption of this ASU affected only the Company’s disclosures to its consolidated financial statements. See Note 16 “Taxes on Income” for further information.

AA. Recently Issued But Not Yet Adopted Accounting Standards

In November 2024, the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40) - Disaggregation of Income Statement Expenses. The ASU requires, among other items, additional disaggregated disclosures in the notes to the financial statements for certain categories of expenses that are included in the consolidated statements of operations. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and for interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted, and may be applied either prospectively or retrospectively. The Company is currently evaluating the effect of adopting the ASU on its disclosures.

In July 2025, the FASB issued ASU 2025-05, Financial Instruments-Credit Losses (Topic 326) - Measurement of Credit Losses for Accounts Receivable and Contract Assets. The ASU provides a practical expedient to measure credit losses on current accounts receivable and contract assets under ASC No. 606, “Revenue from Contracts with Customers.” The practical expedient assumes that current conditions as of the balance sheet date do not change for the remaining life of the asset. For public business entities, ASU 2025-05 is effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Early adoption of ASU 2025-05 is permitted. The Company is currently evaluating the effect of adopting the ASU on its disclosures.

F - 24

Ceragon Networks Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements

Note 2 - Significant Accounting Policies (cont’d)

AA. Recently Issued But Not Yet Adopted Accounting Standards (cont’d)

In September 2025, the FASB issued ASU 2025-06 Intangibles—Goodwill and Other— Internal-Use Software (Subtopic 350-40). The amendment modernizes the accounting for software costs and enhances the transparency about an entity's software costs. ASU 2025-06 is effective for fiscal years beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. Early adoption is permitted, and may be applied either through a prospective, retrospective or a modified transition approach. The Company is currently evaluating the timing of adoption and impact of this amendment on its Consolidated Financial Statements and related disclosures.

In December 2025, the FASB issued ASU 2025-10, Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities. The update provides recognition, measurement, presentation, and disclosure requirements for government grants, including guidance for grants related to an asset and grants related to income. The amendments introduced two permitted approaches for asset-related grants: a deferred income approach or a cost accumulation approach. The guidance is effective for the Company beginning January 1, 2029, with early adoption permitted. The Company is currently evaluating the impact on its consolidated financial statement.

Note 3 - Acquisitions

A. Siklu

On December 4, 2023, the Company completed the Siklu Acquisition. See also note 1B.

As consideration for the Siklu Acquisition, the Company issued to the Seller 504,902 ordinary shares of the Company with a fair value of $944 thousand (the "Share Consideration") and paid $8,341 thousand of cash to repay Siklu's outstanding debt, including both principal and interest. In addition, the Company accounted for $1,617 thousand for additional consideration of up to 735,294 ordinary shares of the Company or cash, in certain circumstances, which will be released from holdback and issued to the Seller in 18 months following the indemnity release date as defined in the Siklu Acquisition agreement (the "Holdback Consideration"). The Holdback Consideration is classified by the Company as a liability that is marked to market each reporting period. During the years ended December 31, 2025, 2024 and 2023, the Company recorded adjustment to the fair value of its Holdback Consideration in a total amount of $(1,926) thousand, $1,703 thousand and $110 thousand, respectively that have been included in Financial and other expenses, net. In 2025, in accordance with the Holdback Consideration terms, the Company released the remaining Holdback Consideration. through the issuance of 653,985 Company shares to the Seller and the forfeiture of 81,309 shares.

The Siklu Acquisition has been accounted for as a business combination, and the financial results of Siklu have been included in the Company's consolidated financial statements for the period subsequent to the Siklu Acquisition.

F - 25

Ceragon Networks Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements

Note 3 - Acquisitions (cont'd)

A. Siklu (cont'd)

A summary of the allocation of the purchase consideration for Siklu is as follows (in thousands):

	Amortization Period		Amount
	years		$ thousands
Repayment of Siklu's outstanding debt obligations				8,341
Share Consideration				944
Holdback Consideration				1,617
Fair value of total consideration				10,902
Fair value of assets acquired and liabilities assumed:
Current assets (including cash and cash equivalents of $370 thousand)				5,732
Non-current assets				2,047
Trademark		2		440
Customer Relationships		2-5		1,209
Technology		2-6		3,638
Goodwill				7,749
Other current liabilities				(6,694	)
Long-term liabilities				(3,219	)
				10,902

The valuation of the acquired intangible assets is inherently subjective and relies on significant unobservable inputs. The Company used an income approach to value the acquired developed technology, customer relationships and trade mark intangible assets. The valuation for each of these intangible assets was based on estimated projections of expected cash flows to be generated by the assets, discounted to the present value at discount rates commensurate with perceived risk. The valuation assumptions take into consideration the Company's estimates of customer attrition, technology obsolescence and revenue growth projections. The Company is amortizing the identifiable intangible assets arising from the Siklu Acquisition in relation to the expected cash flows from the individual intangible assets over their respective useful lives, which have a useful life range of 2-10 years (see Note 7). Goodwill results from assets that are not separately identifiable as part of the transaction and is not deductible for tax purposes.

End 2 End

On January 31, 2025 the Company completed the E2E Acquisition. See also note 1C.

As consideration for the E2E Acquisition, the Company issued to the E2E Sellers 214,657 ordinary shares of the Company with a fair value of $990 thousand (the "Share Consideration") and paid $6,741 thousand in cash (the "Cash Consideration"). In addition, the Company accounted for $475 thousand for additional consideration of up to 102,938 ordinary shares of the Company, which will be released from holdback and issued to the E2E Sellers over 24 months from the acquisition date (the "Holdback Amount"). The Company classifies the Holdback Amount as a liability that is marked to market each reporting period. As of December 31, 2025, the Company recorded an income adjustment to the fair value of its Holdback Amount of $258 thousand in Financial and other expenses, net. The E2E Sellers shall be entitled, in certain circumstances, to an Earn-Out consideration in the form of up to 461,076 ordinary shares of the Company and up to $1,587 thousand in cash.

F - 26

Ceragon Networks Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements

Note 3 - Acquisitions (cont'd)

End 2 End

As of December 31, 2025, the applicable conditions for this Earn-Out consideration were not met and, accordingly, no Earn-Out consideration is payable in respect of this arrangement. In addition, if during the period from the closing date to December 31, 2026, the Company enters into a specific predefined sale agreement with a designated E2E customer, the Sellers shall be entitled to an additional Earn-Out consideration, payable in cash, equal to 50% of the agreement price (both together “Earn-Out”). The Company classifies the Earn-Out as a liability that is marked to market each reporting period. The fair value of the Earn-Out as of the acquisition date amounted to $1,624 thousand. The E2E Acquisition has been accounted for as a business combination, and the financial results of E2E have been included in the Company's consolidated financial statements for the period subsequent to the E2E Acquisition.

A summary of the allocation of the purchase consideration for E2E is as follows:

	Amortization Period		Amount
	years		$ thousands
Cash Consideration				6,741
Share Consideration				990
Holdback Amount				475
Earn-Out				1,624
Fair value of total consideration				9,830
Fair value of assets acquired and liabilities assumed:
Current assets (including cash and cash equivalents of $171 thousand)				3,620
Non-current assets				439
Trademark		2		370
Customer Relationships		4		1,781
Technology		3		3,290
Goodwill				3,258
Other current liabilities				(2,529	)
Long-term liabilities				(399	)
				9,830

The valuation assumptions take into consideration the Company's estimates of customer attrition, technology obsolescence and revenue growth projections. The Company is amortizing the identifiable intangible assets arising from the E2E Acquisition in relation to the expected cash flows from the individual intangible assets over their respective useful lives, which have a useful life range of 2-4 years. On the day of the E2E acquisition, there was no difference between tax basis to book basis, therefore no deferred taxes were recorded. The goodwill is expected to be fully deductible for income tax purposes.

Pro forma results of operations have not been presented because the effects of the acquisition were not material to our consolidated statements of operations.

F - 27

Ceragon Networks Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements

Note 3 - Acquisitions (cont'd)

Acquisition- and Integration-Related Charges

Acquisition-related expenses include those expenses related to acquisitions that would otherwise not have been incurred by the Company, including professional and services fees, such as legal, audit, consulting, paying agent and other fees. Acquisition-related costs are not included as components of consideration transferred but are accounted for as expenses in the period in which the costs are incurred.

Integration-related expenses represent incremental costs related to combining the Company and its business acquisitions, such as third-party consulting and other third-party services related to merging the previously separate companies' systems and processes.

The components of Acquisition- and integration-related expenses incurred in the years ended December 31, 2025, 2024 and 2023 were as follows:

	Year ended December 31,
	2025			2024		2023
	$ thousands			$ thousands		$ thousands
Acquisition-related professional and services fees		475			284		720
Integration-related expenses		221			1,376		398
Earn-Out fair value adjustment		(624	)		-		-

Total acquisition- and integration-related expense		72			1,660		1,118

The components of Acquisition- and integration-related expenses incurred in the year ended December 31, 2025, related to the E2E Acquisition, and the components of Acquisition- and integration-related expenses incurred in the year ended December 31, 2024 related to the Siklu Acquisition.

The table below presents the changes in the Earn-Out, which was classified as Level 3 and measured at fair value on a recurring basis, in the year ended December 31, 2025:

	$ thousands
Fair value as of acquisition date		1,624
Fair value adjustment		(624	)

Fair value at the end of the period		1,000

The Company estimated the fair value of the Earn-Out by utilizing a Monte Carlo simulation and an income approach method. The significant assumptions used in the model mainly relate to the projected revenues and operating income of E2E for 2025, as well as the estimated agreement price with a designated customer and the probability of such an agreement. Changes in Earn-Out fair value are recorded in the consolidated statements of operations under Acquisition- and integration-related charges.

F - 28

Ceragon Networks Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements

Note 4 - Other Accounts Receivable and Prepaid Expenses

	December 31,		December 31,
	2025		2024
	$ thousands		$ thousands
Government authorities		8,298		5,355
Deferred charges and prepaid expenses		9,001		4,624
Deposits receivable		4,428		3,436
Advances to suppliers		1,534		1,626
Hedging derivative		1,240		508
Other		1,075		866

		25,576		16,415

Note 5 - Inventories

	December 31,		December 31,
	2025		2024
	$ thousands		$ thousands


Raw materials		28,567		28,549
Work in progress		130		697
Finished products		32,890		30,447

		61,587		59,693

During the years ended December 31, 2025, 2024 and 2023, the Company recorded inventory write-offs for excess inventory and slow-moving inventory in a total amount of $2,752 thousand, $3,939 thousand and $7,731 thousand, respectively that have been included in Cost of revenues.

As of December 31, 2025, the Company has an outstanding inventory purchase orders with its suppliers in the amount of $18,180 thousand. The commitments are due primarily within one year.

F - 29

Ceragon Networks Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements

Note 6 - Property and Equipment, Net

	December 31,		December 31,
	2025		2024
	$ thousands		$ thousands
Cost
Computers, manufacturing, peripheral
equipment		186,205		172,342
Office furniture and equipment		3,399		3,214
Leasehold improvements		3,199		2,582

		192,803		178,138
Accumulated depreciation
Computers, manufacturing, peripheral
equipment		148,211		137,658
Office furniture and equipment		2,465		2,081
Leasehold improvements		2,175		1,635

		152,851		141,374

Depreciated cost		39,952		36,764

Depreciation expenses for the years ended December 31, 2025, 2024 and 2023 were $10,842 thousand, $10,336 thousand, and $9,335 thousand, respectively.

Changes of property and equipment not resulted in cash outflows as of December 31, 2025, 2024 and 2023 amounted to $965 thousand, $1,819 thousand, and $1,499 thousand, respectively.

F - 30

Ceragon Networks Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements

Note 7 - Intangible Assets, Net

Intangible Assets:

	Useful		December 31,		December 31,
	Life		2025		2024
			$ thousands		$ thousands
Original amounts:
Software development costs		5 – 10		19,566		15,263
Core technology		2 – 6		6,927		3,638
Customer relationship		4 – 5		3,123		1,209
Trademark		2		810		440

				30,426		20,550

Accumulated amortization:
Software development costs				3,097		2,441
Core technology				2,480		813
Customer relationship				1,058		268
Trademark				609		237

				7,244		3,759

Other Intangible assets, net:
Software development costs				16,469		12,822
Core technology				4,447		2,825
Customer relationship				2,065		941
Trademark				201		203

Other Intangible assets, net:				23,182		16,791

The following table represents the expected amortization in future periods, as of December 31, 2025:

	$ thousands
2026		3,203
2027		5,377
2028		4,428
2029		3,552
2030		3,115
2031 and thereafter		3,507

Total expected amortization		23,182

Amortization expenses for the years ended December 31, 2025, 2024 and 2023 amounted to $3,485 thousand $1,776 thousand and $632 thousand respectively.

F - 31

Ceragon Networks Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements

Note 8 - Other Accounts Payable and Accrued Expenses

	December 31,		December 31,
	2025		2024
	$ thousands		$ thousands
Employees and payroll accruals		12,626		15,810
Holdback Short Term Liability		195		3,430
Government authorities		2,580		3,317
Accrued expenses		2,763		2,788
Provision for warranty costs		2,077		2,325
Advanced payments from customers		3,830		1,735
Other		-		142

		24,071		29,547

Note 9 - Short-term loans

In March 2013, the Company was provided with a revolving Credit Facility by four financial institutions. The Credit Facility was renewed and amended several times during the past years according to Company's needs and financial position.

In June 2023, the Company signed an amendment to the Credit Facility pursuant to which the term of the Credit Facility was extended by an additional year to June 30, 2024. This amendment also included an increase of $9.8 million to $72 million to the Credit Facility for Loans and a decrease of $11.9 million to the bank guarantees credit lines to $45.9 million. In December 2023, in connection with the acquisition of Siklu, the Company signed an amendment to the Credit Facility in which it obtained the approval of the syndication of banks to carry out Siklu's acquisition and added an additional bank to the syndication agreement. This amendment also included an increase of $5 million to $77 million to the Credit Facility for Loans. In June 2024, the Company signed an amendment to the Credit Facility in the frame of which the Credit Facility was extended by an additional 2 years till June 30, 2026. This amendment included a decrease of $5 million to the bank guarantees credit lines to $40.9 million.

As of December 31, 2025, the Company has utilized $19,000 thousand of the $77,000 thousand available under the Credit Facility for short-term loans. During 2025, the credit lines carried interest rates between 4.94% and 6.44%.

As of December 31, 2025, the total credit facilities for bank guarantees and for loans is $117,886 thousand.

The Credit Facility is secured by a floating charge over all Company assets as well as several customary fixed charges on specific assets.

Repayment could be accelerated by the financial institutions in certain events of default, including in insolvency events, failure to comply with financial covenants or an event in which a current or future shareholder acquires control (as defined under the Israel Securities Law) of the Company.

The credit agreement contains financial and other covenants requiring that the Company maintains, among other things, minimum shareholders' equity value and financial assets, a certain ratio between its shareholders' equity (excluding total intangible assets and goodwill) and the total value of its assets (excluding total intangible assets and goodwill) on its balance sheet, a certain ratio between its net financial debt to each of its working capital and accounts receivable. As of December 31, 2025 and 2024, the Company met all of its covenants.

F - 32

Ceragon Networks Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements

Note 10 - Derivative Instruments

The Company enters into foreign currency forward contracts with financial institutions to protect against the exposure to changes in exchange rates of several foreign currencies that are associated with forecasted cash flows and existing assets and liabilities. The Company accounts for its derivative instruments as either assets or liabilities and carries them at fair value. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designation.

Foreign currency derivative contracts are classified within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments.

The fair value of derivative contracts in the consolidated balance sheets on December 31, 2025, and December 31, 2024 were as follows:

	Other accounts receivable and prepaid expenses		Other accounts payable and accrued expenses
	December 31, 2025
	$ thousands		$ thousands
Derivatives designated as hedging instruments:
Currency forward contracts		1,242		(2	)

Total derivatives		1,242		(2	)

	Other accounts receivable and prepaid expenses		Other accounts payable and accrued expenses
	December 31, 2024
	$ thousands		$ thousands
Derivatives designated as hedging instruments:
Currency forward contracts		508		(76	)

Total derivatives		508		(76	)

F - 33

Ceragon Networks Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements

Note 10 - Derivative Instruments (cont’d)

The notional amounts for derivatives contracts were as follows:

	December 31,		December 31,
	2025		2024
	$ thousands		$ thousands
Derivatives designated as hedging instruments:
Currency forward contracts		16,641		21,248

The maximum length of time over which the Company is hedging its exposure to the variability in future cash flows for forecasted transactions is up to 12 months.

The effect of total income (loss) from derivative contracts designated as cash flow hedges in the consolidated statements of operations for the years ended December 31, 2025, 2024 and 2023 was as follows:

	Year ended December 31,
	2025			2024			2023
	$ thousands			$ thousands			$ thousands

Cost of revenues		(452	)		(123	)		(901	)
Research and development, net		(1,394	)		(215	)		(1,544	)
Sales and marketing		(435	)		(76	)		(443	)
General and administrative		(580	)		(106	)		(721	)
Financial and other expenses, net		-			-			(498	)

Note 11 - Credit Losses

The Company is exposed to credit losses primarily through sales to customers. The Company’s expected loss allowance methodology for trade receivables is developed using historical collection experience, current and future economic and market conditions and a review of the current status.

The estimate of amount of trade receivable that may not be collected is based on the geographic location of the trade receivable balances, aging of the trade receivable balances, the financial condition of customers and the Company’s historical experience with customers in similar geographies.

Additionally, specific allowance amounts are established to record the appropriate provision for customers who have a higher probability of default.

F - 34

Ceragon Networks Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements

Note 11 - Credit Losses (cont’d)

The following table provides a roll-forward of the allowance for credit losses that is deducted from the amortized cost basis of trade receivables to present the net amount expected to be collected:

	December 31,			December 31,
	2025			2024
	$ thousands			$ thousands
Balance, at beginning of period		13,796			24,602
Provision for expected credit losses		616			621
Recoveries collected		(118	)		(*) (9,613	)
Amounts written off charged against the allowance and others		(234	)		(1,814	)

Balance, at end of period		14,060			13,796

(*) During 2024, the Company collected $9,064 thousand from South American customer, see Note 13D.3.

Note 12 - Pension Liabilities, Net

The Norwegian subsidiary Ceragon Networks AS (formerly "Nera Networks AS") has defined contribution schemes and four unfunded pension plans.

Under the defined contributions scheme Ceragon Networks AS makes a payment to the insurance company who administer the fund on behalf of the employee. Ceragon Networks AS has no liabilities relating to such schemes after the payment to the insurance company. As of December 31, 2025 all active employees are in this scheme. The contribution and the corresponding social security taxes are recognized as payroll expenses in the period to which the employee's services are rendered. The defined pension contribution schemes meet the requirements of the law on compulsory occupational pension.

Defined benefit scheme was stopped for admission from December 1, 2007, and persons that were employed after that date were automatically entered into the defined contribution scheme. The schemes give right to defined future benefits. These are mainly dependent on the number of qualifying employment years, salary level at pension age, and the amount of benefits from the national insurance scheme. The commitment related to the pension scheme is covered through an insurance company.

AFP-scheme - in force from 1 January 2011, the AFP-scheme is a defined benefit multi-enterprise scheme, but is recognized in the accounts as a defined contribution scheme until reliable and sufficient information is available for the group to recognize its proportional share of pension cost, pension liability and pension funds in the scheme. Ceragon Networks AS's liabilities are therefore not recognized as liability in the balance sheet.

The liabilities in respect of Ceragon Networks AS's unfunded pension plans together represent 100% of the PBO (Projected Benefit Obligation) of the entire group.

F - 35

Ceragon Networks Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements

Note 12 - Pension Liabilities, Net (cont’d)

The following tables provide a reconciliation of the changes in the plans' benefits obligation for the year ended December 31, 2025 and 2024, and the statement of funds status as of December 31, 2025 and 2024:

	December 31,			December 31,
	2025			2024
	$ thousands			$ thousands
Change in projected benefit obligation
Projected benefit obligation at beginning of year		1,813			2,123
Interest cost		77			59
Expenses paid		(137	)		(160	)
Exchange rates differences		230			(187	)
Actuarial (gain) loss		80			(22	)

Projected benefit obligation at end of year		2,063			1,813

The assumptions used in the measurement of the Company's benefits obligations as of December 31, 2025 and 2024 are as follows:

	December 31,			December 31,
	2025			2024
Weighted-average assumptions
Discount rate		3.90	%		3.90	%
Rate of compensation increase		3.75	%		3.75	%

The amounts reported for net periodic pension costs and the respective benefit obligation amounts are dependent upon the actuarial assumptions used. The Company reviews historical trends, future expectations, current market conditions and external data to determine the assumptions. The discount rate is the covered bond. For purposes of calculating the 2025 net periodic benefit cost and the 2025 benefit obligation, the Company has used a discount rate of 3.90%. The rate of compensation increase is determined by the Company, based upon its long-term plans for such increases.

F - 36

Ceragon Networks Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements

Note 12 - Pension Liabilities, Net (cont’d)

Benefit payments are expected to be paid as follows:

	$ thousands

2026		136
2027		141
2028		146
2029		152
2030		158
2031 and thereafter		1,330

		2,063

Regarding the policy for amortizing actuarial gains or losses for pension and post-employment plans, the Company has chosen to charge the actuarial gains or losses to statement of operations.

Interest cost and actuarial gain or losses are presented in financial and other expenses, net.

For the years ended December 31, 2025, 2024 and 2023, an actuarial loss of $80 thousand. and gain of $22 thousand, and loss of $105 thousand, respectively, was recognized in Financial and other expenses, net.

Note 13 - Commitments and Contingent Liabilities

A. Leases

See Note 14 “Leases” for lease-related commitments as of December 31, 2025.

Liabilities for Royalty Payments to the IIA

During 2025, 2024 and 2023, Ceragon received several research and development grants from the Israeli Innovation Authority ("IIA"). The grants require the Company to comply with the requirements of the Research and Development Law, however, Ceragon is not obligated to pay royalties on sales of products based on technology or know-how developed from the grants. In a case involving the transfer of technology or know how developed from the grants outside of Israel, Ceragon may be required to pay royalties related to past sales of products based on the technology or the developed know how. The Company recorded income from IIA grants for the years ended December 31, 2025, 2024 and 2023 in the amount of $1,335 thousand, $1,264 thousand, and $542 thousand, respectively.

Prior to the Siklu Acquisition, Siklu had received research and development grants from the IIA. The Company assumed Siklu's contract with the IIA, which requires the Company to pay royalties to the IIA on sales of products based on technology or know-how developed from the grants. The royalties were calculated at the rates of 3% to 4% of the aggregated proceeds from the sale of such products. As of December 31, 2025, the Company's maximum possible future royalties commitment, including $2,592 thousand of unpaid royalties accrued, was $9,887 thousand, based on grants received from the IIA and not yet repaid

F - 37

Ceragon Networks Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements

Note 13 - Commitments and Contingent Liabilities (cont’d)

C. Charges and guarantees

As of December 31, 2025 and 2024, the Company provided guarantees in an aggregate amount of $14,102 thousand, and $18,555 thousand respectively, with respect to tender offer guarantees, financial guarantees, warranty guarantees and performance guarantees to its customers.

D. Litigations

The Company is currently involved in various claims and legal proceedings. The Company reviews the status of each matter and assesses its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount can be reasonably estimated, the Company accrues liability for the estimated loss.

1) Class action claim (District Court of Tel Aviv - Economic Department)

On May 27, 2021, following a procedure that included filing of various pleadings and affidavits, the Court ruled to certify the motion as a class action, while applying the Israeli Law (the “Ruling”).

On September 12, 2021, the company filed a motion for a rehearing on behalf of the Defendants in order to revert the Ruling (the “Rehearing Motion”).

On January 3, 2022, a hearing was held in Court in the Rehearing Motion before the Honorable Justices K. Kabub, R. Ronen and T. Avrahami.

On June 28, 2022, following a joint application filed by the parties in order to approve certain procedural matters, the Court issued a decision suggesting that the parties should consider initiating another mediation procedure. On July 5th, 2022, following the court's decision, the parties filed a notice informing the court that they believe that the time to consider initiating another mediation procedure, will be only after the parties submit their pleadings.

On November 3, 2022, the Defendants submitted their Statement of Defense, based on U.S law. On February 5, 2023, the plaintiff submitted his response to the Defendants’ Statement of Defense.

F - 38

Ceragon Networks Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements

Note 13 - Commitments and Contingent Liabilities (cont’d)

D. Litigations (cont’d)

1) Class action claim (District Court of Tel Aviv - Economic Department) (cont’d)

On June 15, 2023, the court rejected a motion filed by the Defendants to rule on the issues of Statute of Repose and Limitations as a preliminary matter, and held that those issues will be dealt with as part of the main hearing. Additionally, the parties conducted preliminary procedures, including discovery and questionnaires, and filed related motions.

On September 21, 2023, a preliminary hearing was held. At the conclusion of the hearing, the court ruled that it would issue written decisions on the discovery issues and then set dates for further proceedings.

On September 28, 2023, the court approved the defendants’ motion for document discovery and determined that the documents in question are indeed relevant. As a result, the court has directed the plaintiff to furnish the requested documents by October 28, 2023. Alternatively, the court has given the plaintiff the option to waive any claims associated with these documents.

On October 1, 2023, the court granted the plaintiff's motion for document discovery and ordered the company to produce all requested documents and to complete some of the answers to the questions included in the plaintiff questionnaire within 45 days. In making this decision, it was determined that, in addition to the documents already provided to the plaintiff, the company is required to disclose thousands of additional documents and document types. These materials, however, were deemed irrelevant and extended beyond the approved grounds for the class action request. The discovery and disclosure of such documents would impose a substantial burden on the company.

As a result, on December 31, 2023, the company sought permission to appeal the district court's decision and requested a delay in its implementation. The Supreme Court granted a stay on the execution of the district court's decision and scheduled a hearing for January 25, 2024.During the hearing, the Supreme Court, presided over by the Honorable Judge Grosskopf, acknowledged the company's contentions. It clarified that the extensive disclosure mandated by the district court exceeded the necessary requirements in accordance with the law and suggested that the plaintiff negotiate agreements with the company. These agreements are aimed at significantly reducing the scope of disclosure, particularly concerning the period for which documents and correspondence must be provided. Following discussions both outside the courtroom and before the Honorable Judge, where the parties presented their arguments on each dispute demand, partial agreements were reached. These agreements outline the documents the company will provide to the plaintiff.

Validated by the Supreme Court, these agreements substantially reduced the disclosure requirements outlined in the district court's decision. The plaintiff, in turn, waived certain demands entirely and significantly narrowed others. For the limited remaining requirements, it was established that the company would convey its position on transferring the requested documents to the plaintiff in the reduced format proposed during the hearing. It was also decided that if no agreements are reached concerning these documents, the court will make a decision on the matter.

On March 26, 2024, the Company provided the plaintiff with the required documents, in accordance with the agreements between the parties.

On March 12, 2024, following the submission of pleadings by the parties, the Supreme Court reduced the amount of expenses imposed by the district court against the Company in its decision dated October 1, 2023, since the appeal resulted in a reduction in the extent of disclosure initially determined by the district court.

F - 39

Ceragon Networks Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements

Note 13 - Commitments and Contingent Liabilities (cont’d)

D. Litigations (cont’d)

1) Class action claim (District Court of Tel Aviv - Economic Department) (cont’d)

In April 2024, the parties have agreed to refer the dispute to a mediation procedure before the esteemed retired judge, Dr. Avi Zamir. To date, two mediation meetings have been held.

Although the parties have not yet reached a conclusive and binding settlement agreement, nor has the settlement agreement been submitted for court approval (or approved by the court), the company estimates, based on its external legal counsel and all facts and circumstances, that the probable loss under the settlement agreement will be approximately $1,162 thousand. Accordingly, a provision for this amount was recorded on the balance sheet as of December 31, 2025.

2) Claim against Station Enterprises Ltd. regarding breach of the Lease Agreement

A dispute has arisen between the Company and Station Enterprises Ltd, with respect to the lease agreement signed between the parties on April 11, 2019 (the "Lease Agreement"), under which the Company leases its offices and labs in Rosh Haayin.

F - 40

Ceragon Networks Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements

Note 13 - Commitments and Contingent Liabilities (cont’d)

D. Litigations (cont’d)

2) Claim against Station Enterprises Ltd. regarding breach of the Lease Agreement (cont’d)

On February 8, 2022, Station Enterprises provided notice to the Company of the termination of the Lease Agreement, and also on the exercise of the bank guarantees provided to it in connection with the Lease Agreement, in the amount of approximately $682 thousand. The Company rejected the alleged termination notice, which was provided with no legal grounds, and further required Station Enterprises not to exercise the bank guarantees. This demand was disregarded, and the bank guarantees were exercised in full.

The Statement of Claim was filed on May 31, 2022. A Statement of Defense was filed on October 23, 2022, and a Statement of Response was filed on November 23, 2022.

On October 13, 2022, Station Enterprises Ltd. submitted a new claim against the Company, for its eviction from the leased premises. The Statement of Defense was filed on February 12, 2023.

Since both lawsuits deal with the same issues, on December 25, 2022, the Company submitted a request to consolidate the lawsuits.

On January 12, 2023, the judge determined that he would make a final decision on the request when submitting the statement of defense.

On February 12, 2023, the Statement of Defense was filed on behalf of the Company.

On March 27, 2023, the judge ordered the consolidation of the hearings in the two lawsuits.

The parties agreed to refer the dispute in both claims to mediation before attorney Yitzhak Marciano. The first mediation meeting was held on May 8, 2023.

On July 15, 2024, during the first pre-trial, the judge made another attempt to mediate the dispute between the parties, but without success. Consequently, the court scheduled deposition dates and set another pre-trial for March 5, 2024. The date of the pre-trial was rescheduled several times and is now scheduled for September 16, 2025.

On December 1, 2024, the Company submitted its affidavits. following the submission of the affidavits, the parties resumed the mediation process.

F - 41

Ceragon Networks Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements

Note 13 - Commitments and Contingent Liabilities (cont’d)

D. Litigations (cont’d)

2) Claim against Station Enterprises Ltd. regarding breach of the Lease Agreement (cont’d)

On May 16, 2025, the parties signed a mediation agreement, pursuant to which the claim filed by Station Enterprises would be dismissed, and the remedies unrelated to the third parties in the claim filed by Ceragon would also be dismissed. Accordingly, the remaining claim in the Ceragon lawsuit is the monetary remedy in the amount of approximately $332 thousand (NIS 1,122 thousand) (the “Remaining Claim”). The mediation agreement further stipulates that Station Enterprises waived its right to receive all amounts offset by Ceragon, so that out of the total offset amount Ceragon is entitled to offset an amount of approximately $645 thousand (NIS 2,177 thousand), including VAT, from the claimed sums and repay the rest of the amount to Station Enterprises.

On May 18, 2025, the court approved the mediation agreement and dismissed the Station Enterprises claim and the remedies in the Ceragon claim in accordance with the parties’ agreement.

The court has scheduled the next hearing on the matter for April 30, 2026.

Third‑Party Notice Filed Against the Company in Connection with ADSL Quality Ltd. v. Israel Police Proceedings

The Israel Police and Ceragon completed mutual Document Discovery Process on October 27, 2025.

F - 42

Ceragon Networks Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements

Note 13 - Commitments and Contingent Liabilities (cont’d)

D. Litigations (cont’d)

Third‑Party Notice Filed Against the Company in Connection with ADSL Quality Ltd. v. Israel Police Proceedings (cont’d)

As advised by the Company's lawyers, at this preliminary stage, the Company is unable to assess the likelihood of an adverse outcome with respect to the third‑party notice.

Claim by a Former Employee in France

As advised by the Company's lawyers, at this stage, it is too early to assess the likelihood of an adverse outcome, as the Company has not yet received the supporting evidence from the claimant.

TurboCode LLC v. Ceragon Networks, Inc. (Patent Litigation)

Proceedings Initiated by Teleaus Pty Ltd to Wind Up Ceragon Networks (AUS) Pty Ltd

On about 10 February 2026, Ceragon Australia and Teleaus entered into a Deed of Settlement to resolve the proceedings, under which Ceragon Australia paid an immaterial amount. Subsequently, the proceedings were dismissed by a court order.

F - 43

Ceragon Networks Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements

Note 14 - Leases

The Company`s leases include offices and warehouses for its facilities worldwide, as well as car leases, which are all classified as operating leases. Certain leases include renewal options that are under the Company`s sole discretion. The renewal options were included in the right of use (“ROU”) and liability calculation if it was reasonably certain that the Company would exercise the option.

The components of lease expense and supplemental cash flow information related to leases for the years ended December 31, 2025, 2024 and 2023 were as follows:

	Year ended December 31,
	2025		2024		2023
	$ thousands		$ thousands		$ thousands
Components of lease expenses
Operating lease cost		4,480		4,298		4,014
Short-term lease cost		44		60		62
Variable lease cost		376		255		185

Total lease expenses		4,900		4,613		4,261

F - 44

Ceragon Networks Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements

Note 14 - Leases (cont’d)

	Year ended December 31,
	2025		2024		2023
	$ thousands		$ thousands		$ thousands
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities		4,360		3,950		3,913

Supplemental non-cash information related to lease liabilities arising from obtaining ROU assets		4,430		2,471		3,503

Supplemental balance sheet information related to leases was as follows:

	Year ended December 31,
	2025			2024
Weighted-average remaining operating lease term		3.61			6.09
Weighted-average discount rate of operating leases*		4.91	%		4.93	%

* The discount rate was determined based on the estimated collateralized borrowing rate of the Company, adjusted to the specific lease term and location of each lease.

Maturities of lease liabilities as of December 31, 2025, were as follows:

	$ thousands
2026		4,522
2027		4,138
2028		3,677
2029		2,990
2030		2,942
2031 and thereafter		1,305
Total undiscounted lease payments		19,574
Less: imputed interest		2,242
Present value of lease liability		17,332

Current lease liabilities		4,001
Non-current lease liabilities		13,331
Present value of lease liability		17,332

F - 45

Ceragon Networks Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements

Note 15 - Shareholders' Equity

The ordinary shares of the Company are traded on the Nasdaq Global Select Market, under the symbol "CRNT".

A. General

The ordinary shares entitle their holders to receive notice to participate and vote in general meetings of the Company, the right to share in distributions upon liquidation of the Company, and to receive dividends, if declared.

B. Stock options plans

In 2003, the Company adopted a share option plan which has been extended or replaced from time to time. At December 2024, the plan that was in effect was the Amended and Restated Share Option and RSU Plan as amended on August 10, 2014 (the “Plan”). Under the Plan, options and RSUs were granted to officers, directors, employees and consultants of the Company or its subsidiaries. The options vest primarily over four years, subject to certain exceptions. The options expire between six to ten years from the date of grant. The Plan was extended to expire on December 31, 2024 and then expired. In 2024, the Company adopted a new share option plan, the 2024 Equity Incentive Plan, to replace the Plan (the “New Plan”). Under the New Plan, options and RSUs may be granted to officers, directors, employees and consultants of the Company or its subsidiaries. The options vest primarily over four years, subject to certain exceptions. The options expire six years from the date of grant.

The Company has reserved sufficient authorized but unissued Shares for purposes of the Plan and the New Plan (together the “Plans”) subject to adjustments as provided in the Plans.

The following table summarizes the activities for the Company’s stock options for the year ended December 31, 2025:

	Year ended December 31, 2025
	Number of options			Weighted average exercise price		Weighted average remaining contractual term (in years)		Aggregate intrinsic value
								$ thousands
Outstanding at beginning of year		3,723,286			2.52		4.06		8,005
Granted		1,020,863			2.62
Exercised		(283,260	)		2.44
Forfeited or expired (*)		(564,167	)		2.40

Outstanding at end of the year		3,896,722			2.57		3.83		117

Options exercisable at end of the year		2,258,412			2.61		3.38		77

Vested and expected to vest		3,576,791			2.57		3.75		113

(*) During 2025, 123,307 of the Company’s stock options expired.

The weighted average fair value of options granted during 2025, 2024 and 2023 was $1.04, $1.18 and $1.02, respectively. The intrinsic value of options exercised during the years ended December 31, 2025, 2024 and 2023 was $265 thousand, $2,454 thousand, and $6 thousand, respectively.

F - 46

Ceragon Networks Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements

Note 15 - Shareholders' Equity (cont’d)

B. Stock options plans (cont’d)

The following table summarizes the activities for the Company’s RSUs for the year ended December 31, 2025:

	Year ended December 31, 2025
	Number of RSUs			Weighted average fair value

Unvested at beginning of year		2,723,042			2.43
Granted		2,295,350			2.32
Vested		(1,084,453	)		2.49
Forfeited		(465,091	)		2.41

Unvested at end of the year		3,468,848			2.34

As of December 31, 2025, the total unrecognized estimated compensation cost related to non-vested stock options and RSUs granted prior to that date was $4,458 thousand, which is expected to be recognized over a weighted average period of approximately one year.

The total equity-based compensation expenses related to all of the Company's equity-based awards, recognized for the years ended December 31, 2025, 2024 and 2023, was comprised as follows:

	Year ended December 31,
	2025		2024		2023
	$ thousands		$ thousands		$ thousands
Cost of revenues		471		495		482
Research and development, net		679		701		828
Sales and marketing		1,361		1,355		1,416
General and administrative		1,580		1,747		1,238

Total share-based compensation expenses		4,091		4,298		3,964

C. Dividends

In the event that cash dividends are declared in the future, such dividends will be paid in NIS or in foreign currency subject to any statutory limitations. The Company does not intend to pay cash dividends in the foreseeable future.

F - 47

Ceragon Networks Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements

Note 16 - Taxes on Income

A. Israeli taxation

1. Measurement of taxable income:

The Company has elected to file its tax return under the Israeli Income Tax Regulations 1986 (Principles Regarding the Management of Books of Account of Foreign Invested Companies and Certain Partnerships and the Determination of Their Taxable Income). Accordingly, starting tax year 2003, results of operations in Israel are measured in terms of earnings in U.S. dollars.

2. Tax benefits under the Law for the Encouragement of Capital Investments, 1959 (the "Law"):

According to the Law, the Company is entitled to various tax benefits by virtue of the "Approved Enterprise" status granted to part of their enterprises, as implied by this Law. The principal benefits by virtue of the Law are:

According to the provisions of the Law, the Company has chosen to enjoy the "Alternative" track. Under this track, the Company is tax exempt in the first two years of the benefit period and subject to tax at the reduced rate of 10%-25% for the remaining benefit period. The benefit period under Approved Enterprise starts with the first year the benefited enterprise earns taxable income, provided that 14 years have not passed since the approval was granted and 12 years have not passed since the enterprise began operating.

Generally, a company that is Abundant in Foreign Investment is entitled to an extension of the benefits period by an additional five years.

The tax benefits under the Approved Enterprise are conditional upon the fulfillment of the conditions stipulated by the Law, regulations published and the letters of approval for the investments in the approved enterprises. Non-compliance with the conditions may cancel all or part of the benefits and refund of the amount of the benefits, including interest.

The Company has three capital investment programs that have been granted Approved Enterprise status, under the Law.

As of December 31, 2025, the 14 years have passed for the three Approved Enterprise programs.

Income from sources other than the "Approved Enterprise" during the benefit period will be subject to the tax at the regular tax rate.

The Company believes it will continue to enjoy its current tax benefits in accordance with the provisions of the Investment Law prior to the 2005 Amendment.

In December 2016, the Knesset (the Israeli parliament) passed an additional amendment to the Law which provides for additional benefits to Preferred Technological Enterprises by reducing the tax rate on preferred Technological Enterprise income (as such is defined in Amendment 73) to 12% (the "Amendment"). This Amendment came into effect in May 2017 when the Minister of Finance promulgated the regulations for its implementation. The Company has evaluated the effect of the adoption of the Amendment on its financial statements, and as of the date of the approval of the financial statements, the Company did not apply the Amendment. The Company may change its position in the future.

F - 48

Ceragon Networks Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements

Note 16 - Taxes on Income (cont’d)

Israeli taxation (cont’d)

Global Minimum Tax (Pillar Two)

On December 31, 2025, Israel enacted the Minimum Corporate Tax on Multinational Groups Law (Pillar 2), which implements the OECD’s global minimum tax framework and becomes effective for fiscal years beginning on or after January 1, 2026. The legislation adopts the Qualified Domestic Minimum Top‑Up Tax (QDMTT) mechanism, under which Israeli constituent entities that are part of a multinational enterprise (MNE) group with consolidated global revenues of at least €750 million may be subject to a top‑up tax if their effective tax rate in Israel is below the required 15% minimum rate.

The Israeli rules are aligned with the OECD’s Pillar Two model and ensure that Israel retains primary taxing rights over low‑taxed profits generated locally, thereby reducing exposure to foreign top‑up tax under the Income Inclusion Rule or Undertaxed Profits Rule. The QDMTT applies only to in‑scope MNE groups and requires detailed annual reporting and compliance, including self‑assessment, potential monetary sanctions for late filings, and public disclosure in certain circumstances.

Management is currently evaluating the potential impact of the global minimum tax on the Group. As the rules become effective beginning in 2026 and further local administrative guidance is expected, the Group will continue to assess the implications for its effective tax rate, deferred tax balances, and related disclosures.

F - 49

Ceragon Networks Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements

Note 16 - Taxes on Income (cont’d)

A. Israeli taxation (cont’d)

4. Tax benefits under the Law for the Encouragement of Industry (Taxes), 1969:

The Encouragement Law provides several tax benefits for industrial companies. An industrial company is defined as a company resident and located in Israel, at least 90% of the income of which in a given tax year, exclusive of income from specified Government loans, capital gains, interest and dividends, is derived from an industrial enterprise owned by it. An industrial enterprise is defined as an enterprise whose major activity in a given tax year is industrial production activity.

Management believes that the Company is currently qualified as an "industrial company" under the Encouragement Law and, as such, enjoys tax benefits, including: (1) deduction of purchase of know-how and patents and/or right to use a patent over an eight-year period; (2) the right to elect, under specified conditions, to file a consolidated tax return with additional related Israeli industrial companies and an industrial holding company; (3) accelerated depreciation rates on equipment and buildings; and (4) expenses related to a public offering on the Tel-Aviv Stock Exchange and on recognized stock markets outside of Israel, are deductible in equal amounts over three years.

Eligibility for benefits under the Encouragement Law is not subject to receipt of prior approval from any Governmental authority. No assurance can be given that the Israeli tax authorities will agree that the Company qualifies, or, if the Company qualifies, that the Company will continue to qualify as an industrial company or that the benefits described above will be available to the Company in the future.

5. Tax rates:

Taxable income of Israeli companies was subject to tax at the rate of 23% in the years 2025, 2024 and 2023.

The effective tax rate payable by a company that is taxed under the Investment Law may be considerably lower (see also note 16.A2 above). Israeli corporations are generally taxed at the corporate income tax rate on their capital gains.

The Company's tax assessments through the 2019 tax year are considered final.

B. Income taxes for non-Israeli subsidiaries:

Non-Israeli subsidiaries are taxed according to the tax laws in their respective countries of residence.

C. Tax Assessments:

In 2023, 2024, and 2025 the Company and two of its subsidiaries received tax assessments from local tax authorities in two territories in which they operate. The Company’s management believes it has adequately provided for the reasonably foreseeable outcome related to these assessments and is currently challenging them. However, if these tax assessments are accepted, the Company may be subject to additional tax liabilities, which could have a material adverse effect on its results of operations.

F - 50

Ceragon Networks Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements

Note 16 - Taxes on Income (cont’d)

The income tax expenses for the years ended December 31, 2025, 2024 and 2023 consisted of the following:

	Year ended December 31,
	2025		2024		2023
	$ thousands		$ thousands		$ thousands
Current		2,798		2,777		3,746
Deferred		-		413		2,776

		2,798		3,190		6,522

Domestic (Israel)		882		1,270		1,048
Foreign		1,916		1,920		5,474

		2,798		3,190		6,522

E. Deferred income taxes

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

Significant components of the Company's deferred tax assets and liabilities are as follows:

	December 31,		December 31,
	2025		2024
	$ thousands		$ thousands
Net operating loss carry forward	78,927			74,253
Temporary differences:
Allowance for credit loss	15,807			14,712
Research and development	8,151			7,335
Lease liabilities	3,645			3,614
Unrealized foreign exchange gains/losses	5,772			6,869
Vacation	1,070			1,103
Severance	809			1,170
Other	1,628			1,558
Deferred tax assets before valuation allowance	115,809			110,614

Valuation allowance	(109,104	)		(104,707	)

Deferred tax assets	6,705			5,907
Deferred tax liabilities:
Right-of-use lease assets	(3,717	)		(3,799	)
Intangible assets	(1,467	)		(913	)
Other including property and equipment, net	(1,521	)		(1,195	)
Total deferred tax liabilities	(6,705	)		(5,907	)
Deferred tax asset, net	-			-

F - 51

Ceragon Networks Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements

Note 16 - Taxes on Income (cont’d)

E. Deferred income taxes (cont’d)

In assessing the realization of deferred tax assets, management considers whether it is more likely than not that all or some portion of the deferred tax assets will not be realized in each tax jurisdiction. The ultimate realization of the deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences are deductible and net operating losses are utilized. Based on consideration of these factors, the Company recorded valuation allowance amounted to $109,104 thousand and $104,707 thousand as of December 31, 2025 and 2024 respectively.

F. Net operating loss carry forward and capital loss

As of December 31, 2025, the Company and Siklu have accumulated net operating losses and capital loss for Israeli income tax purposes in the amount of approximately $261,990 thousand and $8,521 thousand, respectively. The net operating losses and capital loss may be carried forward and offset against taxable income in the future for an indefinite period.

As of December 31, 2025, the Company's Norwegian subsidiary had a net operating loss carry forward of approximately $12,061 thousand that can be carried forward. The net operating losses may be carried forward and offset against taxable income in the future for an indefinite period.

As of December 31, 2025, the Company's Brazilian subsidiary had a net operating loss carryforward of approximately $28,826 thousand that can be carried forward. The net operating losses may be carried forward and offset against taxable income in the future for an indefinite period. The offset is limited to a maximum of 30% of the annual taxable income.

G. Income (Loss) before taxes is comprised as follows:

	Year ended December 31,
	2025			2024		2023
	$ thousands			$ thousands		$ thousands
Domestic		3,939			23,752		10,880
Foreign		(3,231	)		3,501		1,862

		708			27,253		12,742

H. Cash paid for income taxes, net of refunds, were as follows:

	Year ended December 31, 2025
	$ thousands
Domestic (Israel)		123
Foreign:
USA		212
India		1,818
Brazil		186
Other countries		311

Total cash paid for income taxes, net of refunds		2,650

F - 52

Ceragon Networks Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements

Note 16 - Taxes on Income (cont’d)

I. Reconciliation of the theoretical tax expenses to the actual tax expenses

Reconciliation between the theoretical tax expenses, assuming all income is taxed at the statutory tax rate applicable to income of the Company and the actual tax expenses as reported in the statements of operations is as follows:

	Year ended December 31,
	2024			2023
	$ thousands			$ thousands
Income (loss) before taxes as reported in the consolidated statements of operations		27,253			12,742

Statutory tax rate		23	%		23	%

Theoretical tax expenses (income) on the above amount at the Israeli statutory tax rate		6,268			2,931
Non-deductible expenses and other permanent differences		1,328			2,411
Non-deductible expenses related to employee stock options		989			946
Deferred tax assets on losses and other temporary differences for which valuation allowance was provided, net		(4,459	)		(479	)
Other		(936	)		713

Effective tax expenses		3,190			6,522

A reconciliation of the provision for income taxes to the amount computed by applying the 23% statutory Israeli income tax rate to income before income taxes after the adoption of ASU 2023-09 is as follows:

	Year ended December 31, 2025
	$ thousands			%
	Tax			Rate
Israeli Statutory Income Tax Rate		163			23	%
Foreign tax effects
United States
State and local taxes		154			22	%
Changes in valuation allowance		(357	)		(50	)%
Withholding taxes		188			27	%

Other		77			11	%
Norway
Changes in valuation allowance		269			38	%

Other		6			1	%
Brazil
Nontaxable or nondeductible items		1,598			226	%
Changes in valuation allowance		(1,327	)		(187	)%

Other		(171	)		(24	)%
Colombia
Changes in valuation allowance		176			25	%

Other		(106	)		(15	)%
Mexico
Nontaxable or nondeductible items		(367	)		(52	)%
Changes in valuation allowance		144			20	%
Other		67			10	%
India

Foreign currency translation differences		991			140	%
Other		77			11	%
Paraguay
Nontaxable or nondeductible items		(219	)		(31	)%
Changes in valuation allowance		(160	)		(23	)%
Other		173			24	%
Nigeria
Changes in valuation allowance		168			24	%
Other		(93	)		(13	)%
Argentina
Changes in valuation allowance		253			36	%
Other		76			11	%

Peru
Changes in valuation allowance	133		19	%
Other	39		6	%
South Africa	144		20	%
Other foreign jurisdictions	263		37	%
Changes in Valuation Allowance	(2,101	)	(297	)%
Nontaxable or nondeductible items
Stock based compensation	868		122	%
Intercompany deemed interest	399		56	%
Prepaid taxes on excess employee benefits	118		17	%
Other	(102	)	(14	)%
Changes in unrecognized tax benefits	1,001		141	%
Withholding Taxes	223		31	%
Other	33		4	%

Effective tax expenses	2,798		395	%

F - 53

Ceragon Networks Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements

Note 16 - Taxes on Income (cont’d)

A reconciliation of the beginning and ending balances of unrecognized tax benefits related to uncertain tax positions is as follows:

	December 31,			December 31,			December 31,
	2025			2024			2023
	$ thousands			$ thousands			$ thousands

Beginning balance		3,351			2,721			2,021
Increases related to tax positions taken during prior years		211			249			430
Increase related to tax positions taken during the current year		548			607			641
Decreases related to statute of limitations		(80	)		(227	)		(371	)
Uncertain tax positions, end of year		4,030			3,351			2,721

The Company has accrued interest and penalty related to uncertain tax positions		615			293			466
Uncertain tax positions, end of year Including Interest		4,645			3,644			3,187

As of December 31, 2025, the total amount of gross unrecognized tax benefits (excluding interest and penalties) was 4,030 thousand of which if recognized, would favorably affect the Company’s effective tax rate.

F - 54

Ceragon Networks Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements

Note 17 - Revenues

Unbilled trade receivable occurs when a right to consideration for the Company’s performance under the customer contract occurs before invoicing to the customer. The amount of unbilled accounts receivable included within trade receivable, net on the Consolidated Balance Sheets, was $10,429 thousand and $10,950 thousand, as of December 31, 2025, and 2024, respectively.

The Company recognizes contract liabilities, or deferred revenues when it receives advance payments from customers before performance obligations have been performed. The balance of deferred revenues approximates the aggregate amount of the transaction price allocated to the unsatisfied performance obligations at the end of reporting period.

The following table presents the significant changes in the deferred revenue balance during the years ended December 31, 2025 and 2024:

	Year ended			Year ended
	December 31,			December 31,
	2025			2024
	$ thousands			$ thousands
Balance, beginning of the period		2,573			6,177
New performance obligations		605			3,117
Reclassification to other balance sheet item		-			(740	)
Reclassification to revenue as a result of satisfying performance obligations		(807	)		(5,981	)

Balance, end of the period		2,371			2,573

The Company elected to apply the optional exemption under ASC 606 paragraph 10-50-14(a) not to disclose the remaining performance obligations that relate to contracts with an original expected duration of one year or less.

Note 18 - Segments, Customers and Geographic Information

The Company applies ASC topic 280, "Segment Reporting", ("ASC 280"). The Company operates in one reportable segment (see Note 1 for a brief description of the Company's business). Reportable segments are defined as components of an enterprise about which separate financial information is evaluated regularly by the chief operating decision maker (“CODM”). The Company’s CODM is its chief executive officer. The Company’s CODM manages the business and evaluates operating performance based on consolidated net income (loss). The Company’s CODM does not regularly review asset information and, therefore, the Company does not report asset information. The CODM uses consolidated net income to monitor actual operating results to forecasts and prior periods.

F - 55

Ceragon Networks Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements

Note 18 - Segments, Customers and Geographic Information (cont’d)

The following table summarizes the Company’s segment revenue, significant segment expenses, and segment net income (loss):

	Year ended December 31,
	2025			2024		2023
	$ thousands			$ thousands		$ thousands

Revenues:		338,728			394,190		347,179
Cost of revenues		224,176			257,339		227,310
Gross profit		114,552			136,851		119,869
Less:
Employee related ⁽¹⁾		61,947			65,111		59,729
Other segment items ⁽²⁾		45,359			33,013		38,930
Financial and other expenses, net		6,538			11,474		8,468
Taxes on income		2,798			3,190		6,522

Net income (loss)		(2,090	)		24,063		6,220

⁽¹⁾ Employee related includes employee salaries and commissions, payroll taxes, benefits, and outsourced labor costs.

⁽²⁾ Other segment items include consulting and professional services, depreciation of property and equipment, amortization of intangible assets, share-based compensation expenses, acquisition and integration related charges, marketing expenses, finance and legal expenses, travel expenses, subcontractors costs, software and subscription costs, overhead expenses and restructuring and related charges.

The total revenues are attributed to geographic areas based on the location of the end customer. The following tables present total revenues for the years ended December 31, 2025, 2024 and 2023 and long-lived assets as of December 31, 2025, and 2024:

	Year ended December 31,
	2025		2024		2023
	$ thousands		$ thousands		$ thousands
Revenues:

North America (*)		112,800		89,945		95,573
EMEA (**)		49,256		64,958		62,023
Asia-Pacific		29,600		34,530		35,033
India		116,712		167,550		107,354
Latin America		30,360		37,207		47,196

		338,728		394,190		347,179

(*)

As of December 31, 2025, 2024 and 2023, 95%, 97% and 94% represent revenues in the United States.

(**)

Including Europe, Middle East and Africa. Revenues from sales in Israel for the years ended December 31, 2025, 2024 and 2023, amounted to $3,606 thousand, $5,182 thousand, and $4,151 thousand, respectively.

F - 56

Ceragon Networks Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements

Note 18 - Segments, Customers and Geographic Information (cont’d)

	December 31,		December 31,
	2025		2024
	$ thousands		$ thousands
Long-lived assets, net:

Israel		44,012		43,679
Others		12,493		9,787
Total long-lived assets, net (*)		56,505		53,466

(*)

Long-lived assets are comprised of property and equipment, net and operating lease right-of-use assets.

C. Major customer data as a percentage of total revenues:

In 2025, the Company had revenues from a customer that represents a group of affiliated companies, equaling 20.7%, a single customer that accounted for 19.6%, and a single customer that accounted for 7.6% of total revenues. In 2024, the Company had revenues from a customer that represents a group of affiliated companies, equaling 22.6%, a single customer that accounted for 14.6%, and a single customer that accounted for 12.0% of total revenues. In 2023, the Company had revenues from a customer that represents a group of affiliated companies, equaling 28.9%, a single customer that accounted for 18.1%, and a customer that represents a group of affiliated companies equaling 8.5% of total revenues.

Note 19 - Selected Statements of Operations Data

A. Restructuring and related charges

During 2025 and 2024, the Company approved cost reduction and re-organization plans that included, among other things, downsizing the Company’s number of employees (the “Restructuring Plans”).

The Company recorded contractual and termination severance pay and other related costs for the impacted employees.

The liabilities related to the restructuring plans as of December 31, 2025, and 2024 amounted to $178 thousand, and $0 thousand, respectively.

The Company does not expect to incur additional costs related to the 2025 and 2024 Restructuring plans.

F - 57

Ceragon Networks Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements

Note 19 - Selected Statements of Operations Data (Cont’d)

B. Financial and other expenses, net

	Year ended December 31,
	2025			2024			2023
	$ thousands			$ thousands			$ thousands
Financial income:
Interest on deposits		246			143			93
Foreign currency translation differences and derivatives		3,254			566			3,296
Non-cash revaluation income associated with business combination		1,995			-			-

Total financial income		5,495			709			3,389
Financial expenses:
Bank charges, interest on loans and factoring fees		(5,034	)		(5,974	)		(7,538	)
Foreign currency translation differences and derivatives		(6,816	)		(4,082	)		(4,049	)
Non-cash revaluation expenses associated with business combination		-			(1,703	)		(110	)
Others		(183	)		(424	)		(160	)

Total financial expenses		(12,033	)		(12,183	)		(11,857	)

Financial and other expenses, net		(6,538	)		(11,474	)		(8,468	)

C. Net Income (loss) per share

The following table sets forth the computation of basic and diluted net earnings per share:

	Year ended December 31,
	2025			2024		2023
	$ thousands			$ thousands		$ thousands
Numerator:
Numerator for basic and diluted net income (loss) per share – income (loss) available to shareholders of Ordinary shares		(2,090	)		24,063		6,220

Denominator:
Denominator for basic net income (loss) per share – adjusted weighted average number of Ordinary shares		89,787,286			86,191,178		84,617,774
Add – employee stock options and RSU		-			2,268,824		864,852

Denominator for diluted net income (loss) per share – adjusted weighted average number of Ordinary shares		89,787,286			88,460,001		85,482,626

F - 58

Ceragon Networks Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements

Note 20 - Related Party Balances and Transactions

Related party balances and transactions are with related companies and principal shareholders. Yehuda Zisapel, who passed away in March 2024, was a shareholder of the Company. Zohar Zisapel who passed away in May 2023, was the former Chairman of the Board of Directors of the Company and a principal shareholder. Since May 2023, the entities of the RAD-BYNET group are no longer considered related parties to Ceragon. Yehuda and Zohar Zisapel were brothers who did not have a voting agreement between them. Jointly or severally, they were also founders, directors and principal shareholders of several other companies that are known as the RAD-BYNET group.

Members of the RAD-BYNET group provide the Company on an as-needed basis with information systems infrastructure, administrative services, and medical insurance, as well as in connection with logistics services; the Company reimburses each company for its costs in providing these services. The aggregate amount of these expenses was approximately $0 thousand, $0 thousand and $941 thousand in 2025, 2024 and 2023, respectively.

The Company has an OEM arrangement with RADWIN, a member of RAD-BYNET group, according to which the Company purchases RADWIN products that are then resold to the Company's customers. In addition, the Company purchases certain inventory components from other members of the RAD-BYNET group, which are integrated into its products. The aggregate purchase price of these components was approximately $0 thousand, $0 thousand, and $104 thousand for the years ended December 31, 2025, 2024 and 2023, respectively.

The Company purchases certain property and equipment from members of the RAD- BYNET group, the aggregate purchase price of these assets was approximately $0 thousand, $0 thousand, and $37 thousand for the years ended December 31, 2025, 2024 and 2023, respectively.

Transactions with related parties:

	Year ended December 31,
	2025		2024		2023
	$ thousands		$ thousands		$ thousands
Revenues		-		-		77
Cost of revenues		-		-		295
Research and development expenses		-		-		3
Sales and marketing expenses		-		-		252
General and administrative expenses		-		-		495
Purchase of property and equipment		-		-		37

F - 59

Ceragon Networks - 20-F annual report

What is the market capitalization of a company?

DISCLAIMER

Contact

Links