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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)


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

For the quarterly period ended June 30, 2025


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

For the transition period from

Commission File Number: 001-38952

CAMBIUM NETWORKS CORPORATION

(Exact Name of Registrant as Specified in its Charter)


Cayman Islands		Not Applicable
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

c/o Cambium Networks, Inc.
2000 Center Drive, Suite East A401 Hoffman Estates, Illinois 60192		(345) 814-7600
(Address of principal executive offices, including zip code)		(Registrant’s telephone number, including area code)

Securities 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, $0.0001 par value

     CMBMF*

     N/A (OTC Markets Group, Inc.)*

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 (§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, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
Emerging growth company	☐

If an emerging growth company, 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 is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

* As previously disclosed on March 26, 2026, following receipt of a delisting notice from The Nasdaq Stock Market LLC, trading in the Company's ordinary shares on the Nasdaq Global Market was suspended on March 27, 2026 and on March 30, 2026, the Company's ordinary shares commenced trading on the OTC Experts Market under the symbol "CMBMF".

As of April 23, 2026, the registrant had 29,031,302 ordinary shares, $0.0001 par value per share, outstanding.

Table of Contents


		Page
PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)	1
	Consolidated Balance Sheets	1
	Consolidated Statements of Operations and Comprehensive Loss	2
	Consolidated Statements of Shareholders’ Equity (Deficit)	3
	Consolidated Statements of Cash Flows	4
	Notes to Unaudited Consolidated Financial Statements	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	25
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	40
Item 4.	Controls and Procedures	40
PART II.	OTHER INFORMATION	43
Item 1.	Legal Proceedings	43
Item 1A.	Risk Factors	43
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	43
Item 3.	Defaults Upon Senior Securities	43
Item 4.	Mine Safety Disclosures	43
Item 5.	Other Information	43
Item 6.	Exhibits	44
Signatures		45

Note regarding forward-looking statements

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the federal securities laws. All statements other than statements of historical fact contained in this Quarterly Report on Form 10-Q, including statements regarding our future results of operations and financial position, business strategy and plans and objectives of management for future operations, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.

In some cases, forward-looking statements may be identified by terms such as “may,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions. The forward-looking statements in this Quarterly Report on Form 10-Q are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. These forward-looking statements speak only as of the date of this quarterly report and are subject to a number of risks, uncertainties and assumptions. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, they should not be relied upon as predictions of future events. The events and circumstances reflected in our forward-looking statements may not be achieved or occur, and actual results could differ materially from those projected in the forward-looking statements. Some of the key factors that could cause actual results to differ from our expectations include:

•

our ability to regain the listing of our ordinary shares on the Nasdaq Stock Market;

•

the unpredictability of our operating results;

•

the impact of material weaknesses in and our ability to maintain an effective system of internal controls, produce timely and accurate financial statements or comply with applicable regulations;

•

our ability to successfully regain compliance with or obtain a waiver of compliance with the financial covenants under our secured credit facilities;

•

the sufficiency of our cash resources;

•

our ability to predict and respond to emerging technological trends and network operators' changing needs;

•

our ability to forecast future demand for our products;

•

our ability to manage inventory and the risk of excess or obsolete inventory in our channel;

•

the impact of competitive pressures on the development of new products;

•

risks caused by political tensions around the world including wars in Ukraine, Iran, as well as tensions between the United States and China and events in Israel, Gaza and the Middle East;

•

the impact of tariffs or other regulatory changes imposed by the United States or other countries on imports;

•

the strength of the United States dollar and the impact of currency fluctuations on the cost of our products globally;

•

unfavorable economic conditions, both domestically and in our foreign markets, including the risk of global or localized recessions;

•

the ability of our suppliers to acquire components required to build our products as well as the impact of supply shortages, extended lead times or changes in supply of components and other parts required to manufacture our products;

•

our reliance on third-party manufacturers, which subjects us to risks of product delivery delays and reduced control over product costs and quality;

•

our reliance on distributors and value-added resellers for the substantial majority of our sales;

•

the inability of our third-party logistics and warehousing providers to deliver products to our channel partners and network operators in a timely manner;

•

the technological complexity of our products, which may contain undetected hardware defects or software bugs or subject our products to the risks of ransomware or malware or other cyber attacks;

•

credit risk of our channel partners, which could adversely affect their ability to purchase or pay for our products;

•

our inability to obtain intellectual property protections for our products;

•

the impact of actual or threatened health epidemics and other outbreaks; and

•

our reliance on the availability of third-party licenses.

We caution you that the foregoing list may not contain all of the forward-looking statements made in this Quarterly Report on Form 10-Q.

Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events or otherwise.

iii

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements

Cambium Networks Corporation

Consolidated Balance Sheets

(in thousands, except for share and per share data)


	December 31,			June 30,
	2024			2025
				(unaudited)
ASSETS
Current assets
Cash	$	34,925		$	15,795
Receivables, net of allowance for credit losses of $3,402 and $3,306		40,405			36,798
Inventories, net		41,990			33,909
Income taxes receivable		1,369			1,034
Prepaid expenses		11,667			8,937
Other current assets		6,182			6,577
Total current assets		136,538			103,050
Noncurrent assets
Property and equipment, net		4,426			4,355
Software, net		11,992			13,232
Operating lease right-of-use assets		6,254			5,626
Goodwill		874			874
Restricted cash		—			250
Other noncurrent assets		13,644			21,336
TOTAL ASSETS	$	173,728		$	148,723
LIABILITIES AND DEFICIT
Current liabilities
Accounts payable	$	16,487		$	11,692
Accrued liabilities		30,980			32,567
Employee compensation		3,755			3,974
Current portion of long-term debt, net		67,639			66,336
Deferred revenues		8,616			8,357
Other current liabilities		8,434			8,719
Total current liabilities		135,911			131,645
Noncurrent liabilities
Deferred revenues		12,182			12,750
Noncurrent operating lease liabilities		8,942			8,431
Deferred tax liabilities, net		1,508			1,508
Other noncurrent liabilities		18,422			15,167
Total liabilities		176,965			169,501
Commitments and contingencies (Note 12)
Shareholders' deficit
Share capital; $0.0001 par value; 500,000,000 shares authorized at December 31, 2024 and June 30, 2025; 28,885,152 shares issued and 28,612,181 outstanding at December 31, 2024 and 29,034,840 shares issued and 28,718,944 outstanding at June 30, 2025		3			3
Additional paid in capital		163,441			166,962
Treasury shares, at cost, 272,971 shares at December 31, 2024 and 315,896 shares at June 30, 2025		(5,665	)		(5,693	)
Accumulated deficit		(158,855	)		(179,996	)
Accumulated other comprehensive loss		(2,161	)		(2,054	)
Total shareholders' deficit		(3,237	)		(20,778	)
TOTAL LIABILITIES AND DEFICIT	$	173,728		$	148,723

The accompanying notes are an integral part of these unaudited consolidated financial statements.

Cambium Networks Corporation

Consolidated Statements of Operations and Comprehensive Loss

(in thousands, except for share and per share data)

(unaudited)


	Three Months Ended June 30,						Six Months Ended June 30,
	2024			2025			2024			2025
	(As Restated)						(As Restated)
Revenues:
Product	$	40,434		$	34,639		$	82,612		$	63,766
Subscriptions and services		4,799			4,754			9,691			9,369
Total revenues		45,233			39,393			92,303			73,135
Cost of revenues:
Product		28,687			21,227			59,546			38,139
Subscriptions and services		1,840			2,105			4,044			4,324
Total cost of revenue		30,527			23,332			63,590			42,463
Gross profit:
Product		11,747			13,412			23,066			25,627
Subscriptions and services		2,959			2,649			5,647			5,045
Total gross profit		14,706			16,061			28,713			30,672
Operating expenses
Research and development		9,149			7,412			19,948			16,767
Sales and marketing		9,706			8,162			19,427			16,580
General and administrative		6,472			6,439			13,906			12,744
Depreciation and amortization		1,669			454			3,302			591
Impairment		—			159			—			159
Total operating expenses		26,996			22,626			56,583			46,841
Operating loss		(12,290	)		(6,565	)		(27,870	)		(16,169	)
Interest expense, net		1,396			2,336			2,277			4,307
Other expense (income), net		3			(34	)		62			29
Loss before income taxes		(13,689	)		(8,867	)		(30,209	)		(20,505	)
Provision for income taxes		557			258			2,485			636
Net loss	$	(14,246	)	$	(9,125	)	$	(32,694	)	$	(21,141	)

Loss per share
Basic	$	(0.51	)	$	(0.32	)	$	(1.17	)	$	(0.74	)
Diluted	$	(0.51	)	$	(0.32	)	$	(1.17	)	$	(0.74	)
Weighted-average number of shares outstanding to compute net loss per share
Basic		27,902,956			28,698,597			27,876,280			28,663,817
Diluted		27,902,956			28,698,597			27,876,280			28,663,817
Comprehensive loss
Net loss	$	(14,246	)	$	(9,125	)	$	(32,694	)	$	(21,141	)
Foreign currency translation adjustment		(110	)		26			(154	)		107
Comprehensive loss	$	(14,356	)	$	(9,099	)	$	(32,848	)	$	(21,034	)

The accompanying notes are an integral part of these unaudited consolidated financial statements.

Cambium Networks Corporation

Consolidated Statements of Shareholders’ Equity (Deficit)

(in thousands)

(unaudited)


	Three Months Ended June 30, 2024
	Share Capital
	Shares			Amount		Additional paid in capital		Treasury shares			Accumulated deficit			Accumulated other comprehensive loss			Total shareholders' equity
Balance at March 31, 2024 (As Restated)		27,893		$	3	$	155,137	$	(5,646	)	$	(102,851	)	$	(1,659	)	$	44,984
Net loss (As Restated)		—			—		—		—			(14,246	)		—			(14,246	)
Share-based compensation		—			—		2,778		—			—			—			2,778
Issuance of ordinary shares under ESPP		279			—		663		—			—			—			663
Issuance of vested shares		41			—		—		—			—			—			—
Treasury shares withheld for net settlement		(4	)		—		—		(14	)		—			—			(14	)
Foreign currency translation		—			—		—		—			—			(110	)		(110	)
Balance at June 30, 2024 (As Restated)		28,209		$	3	$	158,578	$	(5,660	)	$	(117,097	)	$	(1,769	)	$	34,055

	Six Months Ended June 30, 2024
	Share Capital
	Shares			Amount		Additional paid in capital		Treasury shares			Accumulated deficit			Accumulated other comprehensive loss			Total shareholders' equity
Balance at December 31, 2023 (As Restated)		27,835		$	3	$	152,768	$	(5,624	)	$	(84,403	)	$	(1,615	)	$	61,129
Net loss (As Restated)		—			—		—		—			(32,694	)		—			(32,694	)
Share-based compensation		—			—		5,147		—			—			—			5,147
Issuance of ordinary shares under ESPP		279			—		663		—			—			—			663
Issuance of vested shares		104			—		—		—			—			—			—
Treasury shares withheld for net settlement		(9	)		—		—		(36	)		—			—			(36	)
Foreign currency translation		—			—		—		—			—			(154	)		(154	)
Balance at June 30, 2024 (As Restated)		28,209		$	3	$	158,578	$	(5,660	)	$	(117,097	)	$	(1,769	)	$	34,055

	Three Months Ended June 30, 2025
	Share Capital
	Shares			Amount		Additional paid in capital		Treasury shares			Accumulated deficit			Accumulated other comprehensive loss			Total shareholders' deficit
Balance at March 31, 2025		28,690		$	3	$	165,518	$	(5,688	)	$	(170,871	)	$	(2,080	)	$	(13,118	)
Net loss		—			—		—		—			(9,125	)		—			(9,125	)
Share-based compensation		—			—		1,444		—			—			—			1,444
Issuance of vested shares		44			—		—		—			—			—			—
Treasury shares withheld for net settlement		(15	)		—		—		(5	)		—			—			(5	)
Foreign currency translation		—			—		—		—			—			26			26
Balance at June 30, 2025		28,719		$	3	$	166,962	$	(5,693	)	$	(179,996	)	$	(2,054	)	$	(20,778	)

	Six Months Ended June 30, 2025
	Share Capital
	Shares			Amount		Additional paid in capital		Treasury shares			Accumulated deficit			Accumulated other comprehensive loss			Total shareholders' deficit
Balance at December 31, 2024 (As Restated)		28,612		$	3	$	163,441	$	(5,665	)	$	(158,855	)	$	(2,161	)	$	(3,237	)
Net loss		—			—		—		—			(21,141	)		—			(21,141	)
Share-based compensation		—			—		3,521		—			—			—			3,521
Issuance of vested shares		150			—		—		—			—			—			—
Treasury shares withheld for net settlement		(43	)		—		—		(28	)		—			—			(28	)
Foreign currency translation		—			—		—		—			—			107			107
Balance at June 30, 2025		28,719		$	3	$	166,962	$	(5,693	)	$	(179,996	)	$	(2,054	)	$	(20,778	)

The accompanying notes are an integral part of these unaudited consolidated financial statements.

Cambium Networks Corporation

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)


	Six Months Ended June 30,
	2024			2025
	(As Restated)
Cash flows from operating activities:
Net loss	$	(32,694	)	$	(21,141	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		2,324			541
Amortization of software and intangible assets		2,796			1,767
Amortization of deferred debt issuance costs		155			106
Share-based compensation		5,147			3,521
Deferred income taxes		1,520			—
Provision for inventory excess and obsolescence		6,515			(1,653	)
Provision for estimated credit losses		893			(96	)
Impairment of software		—			159
Other		163			(73	)
Change in assets and liabilities:
Receivables		4,155			3,318
Inventories		8,350			9,734
Prepaid expenses		(1,501	)		2,738
Income taxes receivable		(4,433	)		337
Accounts payable		(2,967	)		(4,750	)
Accrued employee compensation		(548	)		315
Accrued liabilities		(1,006	)		1,970
Other assets and liabilities		(2,350	)		(10,892	)
Net cash used in operating activities		(13,481	)		(14,099	)
Cash flows from investing activities:
Purchases of property and equipment		(3,846	)		(330	)
Purchases of software		(3,106	)		(3,139	)
Net cash used in investing activities		(6,952	)		(3,469	)
Cash flows from financing activities:
Proceeds from borrowing on revolver		45,000			—
Repayment of term loan		(1,313	)		(1,312	)
Issuance of ordinary shares under ESPP		663			—
Taxes paid from shares withheld		(32	)		(26	)
Net cash provided by (used in) financing activities		44,318			(1,338	)
Effect of exchange rate on cash		(21	)		26
Net increase (decrease) in cash		23,864			(18,880	)
Cash, beginning of period		18,710			34,925
Cash and restricted cash, end of period	$	42,574		$	16,045

Supplemental disclosure of cash flow information:
Income taxes paid, net of refunds received	$	2,347		$	175
Interest paid	$	1,952		$	3,583

Non-cash investing and financing activities:
Increase (decrease) in property, equipment and software unpaid or accrued in liabilities	$	525		$	(51	)

Reconciliation of cash and restricted cash at end of period:
Cash	$	42,574		$	15,795
Restricted cash		—			250
Total cash and restricted cash	$	42,574		$	16,045

The accompanying notes are an integral part of these unaudited consolidated financial statements.

Cambium Networks Corporation

Notes to Unaudited Consolidated Financial Statements

Note 1. Business and significant accounting policies

Business

Cambium Networks Corporation (“Cambium” or “Cambium Networks” or the “Company”), incorporated under the laws of the Cayman Islands, is a holding company whose principal operating entities are Cambium Networks, Ltd. (UK), Cambium Networks, Inc. (USA), and Cambium Networks Private Limited (India). On June 26, 2019, the Company completed an Initial Public Offering and the Company's ordinary shares began trading on the Nasdaq Global Market. Trading in the Company's ordinary shares was suspended at the open of trading on March 27, 2026. Trading in the Company's ordinary shares under the symbol "CMBMF" on the OTC Experts Market began on March 30, 2026.

Cambium Networks Corporation and its wholly owned subsidiaries design, develop, and manufacture fixed wireless and PON/XGSPON based broadband, Wi-Fi, and local area networking ("LAN") switching infrastructure, and security gateway solutions for a wide range of applications, including broadband access, wireless backhaul, Internet of Things (IoT), public safety communication and Wi-Fi access. Cambium's products enable service providers, enterprises, industrial organizations and governments to deliver exceptional digital experiences and device connectivity, with compelling economics. The Company's ONE network platform simplifies the management of Cambium Networks' wired and wireless technologies. The Company's product lines fall into three broad, interrelated categories: Fixed Wireless and fiber Broadband ("FWB"), Enterprise Networking, and Subscriptions and Services.

Basis of Presentation and Restatement of previously issued unaudited consolidated financial statements

The unaudited consolidated financial statements include the accounts of Cambium Networks Corporation and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated. The consolidated financial statements as of June 30, 2025, and for the three-month and six-month periods ended June 30, 2024 and 2025, and the related notes are unaudited. The unaudited consolidated financial statements have been prepared on the same basis as the annual audited consolidated financial statements, and, in the opinion of management, reflect all adjustments, which comprise only normal recurring adjustments necessary to state fairly the Company’s financial position as of June 30, 2025 and results of operations and comprehensive loss for the three-month and six-month periods ended June 30, 2024 and 2025 and cash flows for the six-month periods ended June 30, 2024 and 2025. The consolidated balance sheet as of December 31, 2024 has been derived from the audited financial statements at that date. In the Company's Comprehensive Form 10-K for the year ended December 31, 2024, filed with the SEC on April 7, 2026, we restated financial statements for the three-month and six-month periods ended June 30, 2024. The financial results included herein for this period reflect the impact of the restatement.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted. The consolidated financial statements contained herein should be read in conjunction with the consolidated financial statements and related notes thereto for the year ended December 31, 2024 included in the Company’s Comprehensive Form 10-K and filed with the SEC on April 7, 2026. The results of operations for the three-month and six-month periods ended June 30, 2025 are not necessarily indicative of the operating results to be expected for the full year.

Going Concern

In accordance with the accounting guidance related to the presentation of financial statements, when preparing financial statements for each annual and interim reporting period, management evaluates whether there are conditions or events that, when considered in the aggregate, raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued. In making its assessment, management considered the Company’s current financial condition and liquidity sources, including current funds available, forecasted future cash flows and conditional and unconditional obligations due over the next twelve months, as well as other factors including the markets in which the Company competes and the current customer demand for the Company’s products.

As of June 30, 2025, the Company was not in compliance with its quarterly fixed charge coverage ratio and quarterly consolidated leverage ratio covenants. These defaults continue through the remainder of 2025 and into 2026. Such defaults afford the lender the right to declare the amounts outstanding immediately due and payable, and although the Company continues regular discussions with the lender, it has not been able to obtain a waiver of the defaults, or otherwise refinance such indebtedness. If the lender were to accelerate the maturity of the Company's indebtedness under the Amended Credit Agreement, the Company would not be able to repay the debt, and therefore, there is substantial uncertainty the Company would be able to continue as a going concern. The Company's obligations under the Amended Credit Agreement mature and become due and payable on November 17, 2026, absent acceleration by the lender. As of June 30, 2025, the Company ceased making payment of principal and interest on the term loan and payment of interest on the revolving credit facility.

As the covenant violations afford the lender the right to declare the amounts outstanding immediately due and payable, the term loan facility and the associated debt issuance costs and the revolving credit facility are classified as a current liability and the deferred debt issuance costs associated with the revolving credit facility are classified as a current asset in the accompanying consolidated balance sheets as of December 31, 2024 and June 30, 2025. Please refer to Note 7. Debt, regarding the Company’s debt outstanding under its credit facilities with Bank of America.

The Company continues to take actions to improve its profitability and focus on operating efficiency and reducing discretionary spending, deferring capital expenditures and implementing cost reductions to align its cost structure with current and expected revenue levels.

Based on the Company's current forecast, it is projecting future noncompliance with its financial covenants through maturity of the debt in addition to the covenant noncompliance described above. If the lender were to accelerate the maturity of the Company's indebtedness under the Amended Credit Agreement, there is substantial uncertainty that the Company would be able to secure capital resources to repay the amounts due. Due to these uncertainties and given the debt matures on November 17, 2026, management concluded that substantial doubt exists with respect to the Company's ability to continue as a going concern within one year after the date that these consolidated financial statements are issued.

The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the ordinary course of business. The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of this uncertainty.

Update to Significant Accounting Policies

There have been no material changes to the Company’s significant accounting policies disclosed in the 2024 Form 10-K, Part II, Item 8.

Recently issued accounting standards not yet adopted

In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires public entities, on an annual basis, to disclose standard categories in the tax rate reconciliation, additional information for reconciling items that meet a quantitative threshold and income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for annual periods beginning after December 15, 2024. Adoption of this ASU should be applied prospectively, but may be applied retrospectively to all prior periods presented in the financial statements. The Company plans to adopt this ASU on a prospective basis during the year ended December 31, 2025. The adoption of this standard will not have a material impact on the Company's consolidated financial statements, but will result in incremental income tax disclosures.

In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements: Codification Amendments in Response to the Securities and Exchange Commission's ("SEC") Disclosure Update and Simplification Initiative. The amendments in this update require modification of certain disclosure and presentation requirements for a variety of ASU topics in response to the SEC's Release No. 33-10532. The effective date for each amended topic in the ASU is the date on which the SEC's removal of the related disclosure requirement from Regulation S-X or Regulation S-K becomes effective. However, if by June 30, 2027, the SEC has not removed the related disclosure from its regulations, the amendment will be removed from the Codification and not become effective. Early adoption is permitted. The Company is currently evaluating this ASU to determine its impact on the Company's disclosures.

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, which requires public entities to disclose within the footnotes to the financial statements, disaggregated information about certain income statement expense captions, including disclosure of the amounts for a) purchases of inventory, b) employee compensation, c) depreciation, d) intangible asset amortization and e) depreciation, depletion, and amortization recognized as part of oil-and gas-producing activities (DD&A) included in each relevant expense caption. The amendment also requires that certain amounts that are already required to be disclosed under U.S. GAAP be included in the same disclosure as the other disaggregation requirements. The new guidance also requires a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively and disclosure of the total amount of selling expenses and, in annual reporting periods, an entity’s definition of selling expenses. ASU 2024-03 is effective for annual periods beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. Upon adoption, this guidance should be applied prospectively, but may be applied retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the adoption of this standard on the Company's financial statement disclosures.

Note 2. Restatement of previously issued unaudited interim consolidated financial statements

In connection with the preparation of the Company's consolidated financial statements for the year ended December 31, 2024, the Company determined that its previously issued unaudited interim consolidated financial statements for the three-month and six-month periods ended June 30, 2024 contained errors in the application of GAAP as summarized below. The Company evaluated the corrections and determined that the related impacts were material to the previously filed unaudited interim consolidated financial statements and in consultation with the Audit Committee of the Company's Board of Directors, concluded that the three-month and six-month periods ended June 30, 2024 should be restated to present the identified adjustments discussed below.

Background of Restatement

For the three-month and six-month periods ended June 30, 2024, the Company did not appropriately (i) estimate variable consideration for customer incentives, (ii) estimate variable consideration for sales returns, (iii) estimate the allowance for credit losses, (iv) estimate excess and obsolete inventory, (v) timely recognize a valuation allowance on deferred tax assets and (vi) reclassify certain prepayments made to suppliers and loss on supplier commitments liability as current or non-current.

Additionally, as part of the restatement, for the three-month and six-month periods ended June 30, 2024, the Company corrected for (b) previously identified uncorrected misstatement related to out-of-period adjustments, (c) previously recorded amounts reclassifying accounts receivable credit balances and (d) classification of property and equipment transactions on the statement of cash flows.

Effect of Restatement

The following tables set forth the effects of the restatement adjustments on revenue, loss before income taxes and net income (loss) in the consolidated statements of operations and comprehensive loss for the three-month and six-month periods ended June 30, 2024.


		For the three months ended June 30, 2024									For the six months ended June 30, 2024
		(Unaudited)									(Unaudited)
(in thousands)	Identifier in statement	Revenues			Loss before income taxes			Net loss			Revenues			Loss before income taxes			Net loss
Previously reported		$	45,946		$	(13,409	)	$	(9,143	)	$	88,283		$	(35,327	)	$	(35,590	)
Restatement adjustments:
Revenue adjustment - customer incentives	(i)		(1,203	)		(1,203	)		(1,203	)		(985	)		(985	)		(985	)
Revenue adjustment - sales returns	(ii)		496			297			297			5,011			4,254			4,254
Estimate for allowance for credit losses	(iii)		(6	)		(490	)		(490	)		(6	)		(331	)		(331	)
Estimate for excess and obsolete inventory	(iv)		—			1,021			1,021			—			3,442			3,442
Estimate for excess and obsolete inventory - non-standard contract	(iv)		—			—			—			—			(1,397	)		(1,397	)
Deferred tax adjustments	(v)		—			—			(4,823	)		—			—			(2,222	)
Prior period uncorrected misstatements and out of period adjustments	(b)		—			95			95			—			135			135
Net restatement adjustments			(713	)		(280	)		(5,103	)		4,020			5,118			2,896
Restated		$	45,233		$	(13,689	)	$	(14,246	)	$	92,303		$	(30,209	)	$	(32,694	)

The amounts are presented herein as originally reported in the previously issued financial statements for transparency and consistency. The restatement corrects these errors and reflects the appropriate adjustments.

The financial statement line items impacted by the respective adjustments are labeled in the tables below based on the identifiers from the paragraph above. Below are the Company's restated consolidated statement of operations and comprehensive loss for the three-month and six-month periods ended June 30, 2024 and statement of cash flows with the adjustments for the six-month period

ended June 30, 2024. The consolidated statement of shareholders' equity (deficit) has been excluded from the financial statement presentation below as it was only impacted by adjustments to net loss, which is presented below in the consolidated statement of operations and comprehensive loss.


CAMBIUM NETWORKS CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS AND OTHER COMPREHENSIVE LOSS
(In thousands, except share and per share amounts)
(Unaudited)
	Three Months ended June 30, 2024
	As Reported			Adjustment			As Restated

Revenues (i) (ii) (iii)
Product	$	41,147		$	(713	)	$	40,434
Subscriptions and services		4,799			—			4,799
Total revenues		45,946			(713	)		45,233
Cost of revenues (ii) (iv)
Product		29,696			(1,009	)		28,687
Subscriptions and services		1,840			—			1,840
Total cost of revenues		31,536			(1,009	)		30,527
Gross profit
Product		11,451			296			11,747
Subscriptions and services		2,959			—			2,959
Total Gross profit		14,410			296			14,706
Operating expenses
Research and development		9,149			—			9,149
Sales and marketing		9,706			—			9,706
General and administrative (iii)		5,988			484			6,472
Depreciation and amortization		1,669			—			1,669
Impairment		—			—			—
Total operating expenses		26,512			484			26,996
Operating loss		(12,102	)		(188	)		(12,290	)
Interest expense, net (b)		1,304			92			1,396
Other expense, net		3			—			3
Loss before income taxes		(13,409	)		(280	)		(13,689	)
(Benefit) provision for income taxes (v)		(4,266	)		4,823			557
Net loss	$	(9,143	)	$	(5,103	)	$	(14,246	)

Loss per share
Basic	$	(0.33	)	$	(0.18	)	$	(0.51	)
Diluted	$	(0.33	)	$	(0.18	)	$	(0.51	)
Weighted-average number of shares outstanding to compute net loss per share
Basic		27,902,956			—			27,902,956
Diluted		27,902,956			—			27,902,956
Comprehensive loss
Net loss	$	(9,143	)	$	(5,103	)	$	(14,246	)
Foreign currency translation adjustment		(110	)		—			(110	)
Comprehensive loss	$	(9,253	)	$	(5,103	)	$	(14,356	)


CAMBIUM NETWORKS CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS AND OTHER COMPREHENSIVE LOSS
(In thousands, except share and per share amounts)
(Unaudited)
	Six months ended June 30, 2024
	As Reported			Adjustment			As Restated

Revenues (i) (ii) (iii)
Product	$	78,592		$	4,020		$	82,612
Subscriptions and services		9,691			—			9,691
Total revenues		88,283			4,020			92,303
Cost of revenues (ii) (iv)
Product		61,144			(1,598	)		59,546
Subscriptions and services		4,044			—			4,044
Total cost of revenues		65,188			(1,598	)		63,590
Gross profit
Product		17,448			5,618			23,066
Subscriptions and services		5,647			—			5,647
Total Gross profit		23,095			5,618			28,713
Operating expenses
Research and development		19,948			—			19,948
Sales and marketing		19,427			—			19,427
General and administrative (iii)		13,498			408			13,906
Depreciation and amortization		3,302			—			3,302
Impairment		—			—			—
Total operating expenses		56,175			408			56,583
Operating loss		(33,080	)		5,210			(27,870	)
Interest expense, net (b)		2,185			92			2,277
Other expense, net		62

Cambium Networks Corp 10-Q