CRNT

• Overall Business & Competitive Landscape

  • Saragon delivered a strong Q2 2026, with the highest first half bookings and book-to-bill ratio in the last 10 years. Two major competitors are seen as effectively out of the market due to lack of technological continuity, and a third competitor has uncertain market commitment, creating new opportunities for Saragon as customers seek established technology providers.
  • Core demand is driven by network modernization, capacity expansion, and new connectivity use cases, with Saragon's portfolio well aligned with these investments.

• Regional Performance

  • India has seen exceptionally strong demand, with $120 million in orders booked through late July 2026, mostly from two leading mobile operators for 4G/5G network expansion and modernization. Fixed wireless access (FWA) is a key demand driver, and Saragon's IP50 EXA platform and multiband solutions are winning market share here; 2026 is on track to be one of the strongest booking years for India in recent history.
  • North America remains active and strong: a key tier 1 customer's underlying demand is healthy, with some supply chain-related revenue shifted from Q2 to Q3 2026. Private network bookings hit a record in North America, and successful proof-of-concept trials for a 5G FR2 solution with a new potential tier 1 customer have progressed to commercial discussions. LEO satellite technology is viewed as complementary, not a substitute, for Saragon's terrestrial backhaul solutions, and SpaceX's planned terrestrial network could create new opportunities for Saragon.
  • EMEA has seen improving performance after leadership changes and investments, with Q2 bookings hitting an almost three-year high. Latin America secured a two-year $3.4 million managed services contract with a major Mexican mobile operator, and APAC secured a five-year managed services agreement worth up to $70 million with a tier 1 mobile operator.

• New Segment Growth

  • Global private network opportunities are accelerating, with industry forecasts predicting over 30% CAGR through 2030. While sales cycles are longer than traditional carrier business, Saragon's pipeline is growing, use case diversity is expanding, and conversion to bookings is improving; the segment is expected to become an increasingly meaningful contributor over time. Saragon is pursuing broader end-to-end projects combining wireless transport with private 5G/LTE for IoT and automation use cases.
  • Managed and professional services are a core strategic priority to diversify revenue and deepen long-term customer relationships. Recent large, long-duration contracts validate this strategy.

• Full year 2026 revenue guidance is maintained at $355 million to $385 million, kept unchanged due to supply chain component delivery uncertainty rather than weak demand.
• Full year 2026 non-GAAP gross margin guidance is lowered to 33.5% to 34.5%, from the prior 35.5% target range.
• Full year 2026 non-GAAP operating margin guidance is lowered to 5% to 6%, from the prior 6.5% to 7.5% target range.
• No formal 2027 guidance is provided, but management notes high single-digit revenue growth is a reasonable baseline assumption, with potential for higher growth if private network expansion accelerates faster than expected.
• Management expects gradual improvement in component supply chain and cost challenges starting in 2027.

Total Q2 2026 revenue was $93.9 million, a 14% year-over-year increase. India was the top regional revenue segment at $45 million, representing 47.9% of total revenue. North America was the second-largest segment at $21 million, representing 22.4% of total revenue. No other product or geographic segments broke out specific absolute revenue, though management noted the private network and managed services segments are growing rapidly. Private network bookings hit a record in North America, while EMEA bookings reached a three-year high in Q2 2026.

• Persistent global supply chain challenges, including component cost inflation and extended lead times, continue to pressure gross margins. The AI boom has created a

• Q: Why was guidance reiterated even with strong Q2 performance, rather than being raised?

A: The constraint is not demand or visibility, but supply chain disruption and delayed component delivery caused by the global chip shortage from the AI boom. Management chose to keep guidance within the existing range to account for uncertainty around whether components can be received in time to convert strong bookings into revenue this year.

• Q: What is driving the strong demand and bookings in India, and what use cases are most prominent?

A: Two key trends drive Indian demand: ongoing 4G network upgrades from operators that have not yet completed modernization, and 5G-era expansion of fixed wireless access (FWA) for residential and enterprise connectivity. FWA requires higher backhaul capacity, which Saragon meets with its ICSA and multiband products that deliver the required capacity at competitive pricing for the Indian market.

• Q: What portion of the $120 million year-to-date India bookings will convert to 2026 revenue, and does India's stronger than expected mix add to gross margin pressure?

A: Nearly all of the $120 million in India bookings is expected to convert to revenue in 2026, with some already converted. While India has lower margins than North America, management's updated gross margin guidance already accounts for the geographic mix, and a stronger second half 2026 in North America will partially offset the mix impact.

• Q: What is your perspective on opportunities from SpaceX's planned terrestrial network, and what role could Saragon play?

A: Details on SpaceX's network architecture are still not public, so it is too early to assess the full opportunity. However, if SpaceX builds out a high-speed terrestrial network, backhaul transport will be a critical requirement to aggregate growing data traffic, and Saragon's microwave and mmWave backhaul solutions are well positioned to support fast, cost-effective network buildout. Saragon focuses on the backhaul/transport segment of all networks, which is its core competency.