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Cambium Networks Corporation (CMBM) notified the SEC it cannot timely file its Quarterly Report on Form 10-Q for the period ended June 30, 2025. The Audit Committee concluded the companys audited consolidated financial statements for the fiscal years ended December 31, 2022 and December 31, 2023 and several interim statements should be restated due to errors in ASC 606 estimates for sales returns and customer rebates. The company has not filed its Annual Report for the year ended December 31, 2024 or the Quarterly Report for the three months ended March 31, 2025, the restatement remains ongoing, and the company anticipates its Annual Report will include disclosure of substantial doubt about its ability to continue as a going concern.
Cambium Networks announced that its Audit Committee concluded previously issued financial statements for the fiscal years ended December 31, 2022 and 2023 and certain interim periods in 2023 and 2024 are not reliable and should be restated due to material errors. The errors relate primarily to variable consideration under ASC 606, including estimates for sales returns and customer rebates, and the company believes its estimation models did not sufficiently use information available at each reporting date nor apply adequate retrospective analysis. The company did not file its annual report for fiscal 2024 or its Q1 2025 report by the required dates and expects it cannot timely file the Q2 2025 report. Its disclosure controls and internal control over financial reporting were determined to be ineffective as of September 30, 2024 and remain ineffective. Management review is ongoing and additional material errors or control weaknesses may be identified; the company is working with its current auditor, Grant Thornton LLP, and has informed its prior auditor, KPMG LLP.