Core Insights - Portolan Capital Management significantly increased its stake in Cellebrite DI Ltd. by acquiring 1,407,818 shares for approximately $28.65 million as of November 13, 2025 [2][3] - Following this transaction, Portolan's total ownership in Cellebrite reached 2,419,662 shares valued at $44.84 million, representing about 2.4% of its reportable assets under management (AUM) [3][6] - Cellebrite's stock price as of November 12, 2025, was $15.97, reflecting a 14% decline over the past year, underperforming the S&P 500 by 27 percentage points [4][5] Company Overview - Cellebrite specializes in digital intelligence solutions, providing services to law enforcement and enterprise clients for complex investigations [8][10] - The company generates revenue through proprietary software platforms and related services, facilitating legally sanctioned investigations across various digital devices and data sources [10] - Key financial metrics for Cellebrite include a total revenue of $455.90 million and a net income of $76.33 million for the trailing twelve months (TTM) [5]

Core Insights - Cellebrite DI Ltd. (NASDAQ:CLBT) experienced a significant stock increase of 20.73% on Thursday, closing at $19.28, driven by strong earnings performance in Q3 [1][6] Financial Performance - The company reported a net income of $20.19 million, a turnaround from a net loss of $207 million in the same period last year [2] - Revenues reached $126 million, marking a 17.7% increase from $107 million year-on-year, hitting the higher end of previous guidance [2] - Adjusted EBITDA grew by 20% to $37.7 million from $31.3 million year-on-year [2] Management Commentary - CEO Thomas Hogan highlighted that the company exceeded the high end of its prior adjusted EBITDA guidance, with revenue at the high end of expectations, reflecting resilience and the importance of its solutions for public safety globally [3] - Hogan expressed optimism for renewed growth in the sector by 2026, citing factors such as government budget flows and full cloud authorization through a partnership with the Department of Justice [4] Future Outlook - For the full year, revenues are projected to grow between 17% to 18%, reaching $470 million to $475 million, while adjusted EBITDA is expected to increase by 26% to 27%, targeting $124 million to $127 million [5] - In Q4, revenues are estimated to be between $123 million to $128 million, implying a year-on-year growth of 13% to 17%, with adjusted EBITDA expected to be between $35 million to $38 million, reflecting a growth of 28% to 30% [6]

Core Points - U.S. stocks experienced a decline, with the Dow Jones index dropping over 100 points on Thursday [1] - Spectrum Brands Holdings Inc reported a quarterly adjusted EPS of $2.61, significantly exceeding the analyst consensus estimate of $0.86 [1] - The company's quarterly sales were $733.500 million, which fell short of the analyst consensus estimate of $741.111 million [1] Company Performance - Spectrum Brands Holdings shares surged 13.2% to $60.28 following the earnings report [2] - Ondas Holdings Inc saw a 24.4% increase in shares to $6.86 after reporting better-than-expected third-quarter results and raising FY25 sales guidance [4] - Firefly Aerospace Inc's shares rose 21.7% to $22.29 after exceeding quarterly financial expectations and raising FY25 sales guidance [4] - Cellebrite DI Ltd shares increased by 21.7% to $19.44 after reporting strong third-quarter results and raising FY25 sales guidance [4] - Sealed Air Corp shares gained 19.9% to $43.60 [4] - Dillard's Inc reported better-than-expected quarterly results, leading to an 18.3% rise in shares to $720.00 [4] - Digi International Inc shares jumped 17.5% to $42.30 following positive quarterly results [4] - Sally Beauty Holdings Inc shares rose 17.5% to $17.27 after reporting upbeat quarterly results [4] - Tetra Tech Inc gained 11.9% to $36.31 following strong quarterly earnings [4] - On Holding AG shares increased by 7.4% to $44.58 after reporting positive third-quarter earnings and issuing FY2025 sales guidance above expectations [4] - Nice Ltd shares rose 6.3% to $132.14 following strong quarterly sales [4]

分组1 - Cellebrite DI Ltd. reported quarterly earnings of $0.14 per share, exceeding the Zacks Consensus Estimate of $0.13 per share, with an earnings surprise of +7.69% [1] - The company posted revenues of $126.03 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.22%, compared to $106.86 million in the same quarter last year [2] - Over the last four quarters, Cellebrite has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] 分组2 - The stock has underperformed, losing about 28.7% since the beginning of the year, while the S&P 500 gained 16.4% [3] - The current consensus EPS estimate for the upcoming quarter is $0.13 on revenues of $125.28 million, and for the current fiscal year, it is $0.49 on revenues of $470.37 million [7] - The Zacks Industry Rank for Internet - Software is in the top 24% of over 250 Zacks industries, indicating a favorable outlook for the sector [8]

Financial Data and Key Metrics Changes - Annual Recurring Revenue (ARR) grew 19% year-over-year to $440 million, with a sequential increase of 5% [23][24] - Third quarter revenue reached $126 million, an 18% increase from the previous year, primarily driven by a 21% growth in subscription revenue [24][25] - Adjusted EBITDA for the third quarter was $37.7 million, up 20% year-over-year, with a margin of 29.9% [25][30] - Free cash flow for the third quarter was $30 million, with a trailing twelve-month free cash flow of $140 million, representing a margin of 31% [27][30] Business Line Data and Key Metrics Changes - Subscription revenue grew 21%, with approximately 89% of total revenue associated with subscription-based software solutions [24][25] - The U.S. State and Local segment and Latin America were highlighted as strong performers, contributing significantly to subscription revenue growth [24][25] - ARR for SaaS and cloud-based solutions grew three times faster than total ARR, with Guardian's customer base more than doubling year-over-year [12][25] Market Data and Key Metrics Changes - The Americas accounted for 55% of total ARR, with EMEA at 33% and Asia Pacific at 12% [24] - The Americas segment grew 21%, driven by strong performance in U.S. State and Local government and Latin America [24] Company Strategy and Development Direction - The company is focused on four core growth vectors: leadership in unlock and access solutions, innovation in AI and digital investigations, resurgence in U.S. Federal sector growth, and the acquisition of Keryllium to expand its total addressable market (TAM) [14][18][19] - The strategic focus on the global defense and intelligence sector is yielding positive results, with increased investments from military and intelligence agencies [13][18] - The upcoming launch of Guardian Investigate is expected to transform the investigation lifecycle and enhance collaboration and insights [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a strong rebound in 2026, driven by pent-up demand and targeted funding releases [17][20] - The company remains cautious about the fourth quarter due to normal government seasonality and recent shutdowns but anticipates these factors to be transitory [17][20] - The management team emphasized the importance of disciplined spending and margin expansion to maintain profitability and free cash flow [21][30] Other Important Information - The company ended the third quarter with $595 million in cash, cash equivalents, and investments, positioning it well for future growth and potential acquisitions [26][27] - The acquisition of Keryllium is expected to close soon, which will enhance the company's offerings in the defense and intelligence sectors [19][20] Q&A Session Summary Question: Path forward to cloud adoption as a percent of ARR - Management indicated ongoing partnerships with customers transitioning to cloud solutions, with many products already in the cloud [42][44] Question: Insights on Keryllium's pipeline and growth potential - The company has built a significant pipeline for Keryllium, with initial orders processed and expectations for more transactions in Q4 [46][47] Question: 2026 growth prospects and guidance - Management refrained from providing specific numbers for 2026 but expressed confidence in accelerated growth compared to 2025 [50][52] Question: Federal business performance and growth drivers - The federal segment returned to growth in Q3, with significant orders from strategic clients, indicating strong product fit and momentum [58][60] Question: Competitive landscape and market positioning - The company noted high barriers to entry in the market, with no significant new entrants, and expressed confidence in its competitive positioning [91][93]

Core Viewpoint - The article emphasizes the importance of enabling Javascript and cookies in browsers to prevent access issues, particularly when ad-blockers are enabled [1] Group 1 - The article suggests that users may face restrictions if they have ad-blockers enabled, indicating a need for adjustments in browser settings to ensure smooth access [1]

Financial Performance - Total revenue for Q3 2025 reached $126 million, an 18% increase compared to $107 million in Q3 2024[42] - Subscription revenue for Q3 2025 was $113 million, a 21% increase from $93 million in Q3 2024[42] - ARR (Annual Recurring Revenue) as of September 2025 reached $440 million, a 19% increase compared to $371 million in September 2024[42] - Adjusted EBITDA for Q3 2025 was $38 million, representing 30% of revenue, compared to $31 million and 29% in Q3 2024[42] - The company anticipates ARR to be between $460 million and $475 million for fiscal year 2025, representing a growth of 16% to 20%[72] - The company expects revenue to be between $470 million and $475 million for fiscal year 2025, representing a growth of 17% to 18%[72] - The company projects adjusted EBITDA to be between $124 million and $127 million for fiscal year 2025, with an adjusted EBITDA margin of 26% to 27%[72] Acquisition - Cellebrite is set to acquire Corellium for $170 million in cash, with an additional $30 million earn-out potential over 2 years, the deal is expected to close in Q4 2025[34] Market Position - Cellebrite has a global customer base of approximately 7,000 customers[8] - Cellebrite's solutions are used in over 1.5 million legally-sanctioned investigations in 2024[8] - Cellebrite serves over 3,000 state and local accounts in North America, including 72 out of the top 100[24]

Core Insights - Cellebrite reported a 19% increase in Annual Recurring Revenue (ARR) to $439.8 million and an 18% increase in revenue to $126.0 million for the third quarter of 2025 [1][6] - The company achieved a net income of $20.2 million, supporting a non-GAAP net income of $36.9 million and an adjusted EBITDA of $37.7 million, resulting in a 29.9% adjusted EBITDA margin [1][6] Financial Performance - Revenue for the third quarter reached $126.0 million, up 18% year-over-year, with subscription revenue at $112.7 million, reflecting a 21% increase [6][27] - The dollar-based net retention rate for recurring revenue was reported at 117% [6] - GAAP gross profit was $105.7 million, with a gross margin of 83.9%, while non-GAAP gross profit was $106.5 million, yielding a gross margin of 84.5% [6][28] Business Highlights - The CEO highlighted the strong performance in the U.S. Federal business, indicating optimism for growth in 2026 as government budgets are expected to increase [2] - Cellebrite's Autumn 2025 Release introduced new capabilities in its Digital Investigation Platform, including the Guardian Investigate solution, set for general availability in early 2026 [6][10] - The company is also enhancing its flagship digital forensics solution, Inseyets, with improved access to Android and iOS devices [6] Leadership Changes - On October 30, 2025, Holly Windham was appointed as General Counsel and Chief Compliance Officer, bringing extensive legal leadership experience [5][7] Financial Outlook - The CFO indicated strong demand in the U.S. state and local segments, projecting a free cash flow margin of approximately 30% for the full year 2025 [10] - For the fourth quarter of 2025, revenue expectations are between $123 million and $128 million, with full-year revenue projected at $470 million to $475 million [10]

Core Insights - Greenhaven Road Capital reported a third-quarter 2025 return of approximately -9%, with year-to-date returns also at -9% due to factors such as lack of investment in AI and insufficient holdings in small, high-growth companies [1] Company Overview - Cellebrite DI Ltd. (NASDAQ:CLBT) is a software company focused on solutions for legally sanctioned investigations, headquartered in Petah Tikva, Israel [2] - The stock of Cellebrite DI Ltd. experienced a one-month return of -21.27% and a 52-week decline of 16.17%, closing at $15.40 per share with a market capitalization of $3.765 billion as of November 7, 2025 [2] Financial Performance - Cellebrite DI Ltd. reported Q2 2025 revenue of $113.3 million, an 18% increase from Q2 2024, driven by a 21% growth in subscription revenue [4] Market Position and Valuation - The Enterprise Value to Next 12 Months Revenue for medium growth companies, which includes Cellebrite, declined from 10.6X at the start of the year to 7.8X by the end of Q3, indicating a 26% decrease in valuation metrics for medium growth software companies [3] - Cellebrite DI Ltd. was held by 38 hedge fund portfolios at the end of Q2 2025, an increase from 30 in the previous quarter, but it is not among the 30 most popular stocks among hedge funds [4]

Core Insights - The fund experienced a return of approximately -9% during Q3, leading to a year-to-date return of approximately -9% [2] - The portfolio lacks direct exposure to AI, focusing instead on companies that are integrating AI into their operations, which has affected short-term performance [3][5] - The investment strategy emphasizes long-term growth potential and durable competitive advantages rather than short-term market trends [5][8] Portfolio Analysis - The top five holdings include PAR Technologies, Cellebrite, KKR, LifeCore, and Burford, all of which have faced declines in share price year-to-date [7][32] - LifeCore's share price dropped over 10% following a shelf offering announcement, despite positive business developments [12][15] - Cellebrite's valuation has been impacted by a general decline in software multiples, with a 26% drop in Enterprise Value to Next 12 Months Revenue for medium growth companies [17][18] Company-Specific Developments - LifeCore is expected to ramp up revenues significantly by 2026, driven by new customer wins and favorable regulatory changes [13][15] - Cellebrite is positioned to benefit from AI advancements, with plans to release investigative AI tools in January 2026 [20][22] - KKR's diversified asset management approach remains robust, with significant growth in Fee Related Earnings and a focus on expanding its investor base [25][31] Market Trends and Challenges - The current market environment has led to a compression of software multiples, affecting companies like Cellebrite and PAR Technologies [18][46] - Concerns regarding traditional private equity and private credit have emerged, but KKR's diversified model mitigates some of these risks [24][30] - The investment landscape is characterized by volatility, with a disconnect between share prices and underlying business progress [10][42] Future Outlook - The fund's strategy focuses on long-term value realization, with expectations that current market conditions will eventually improve for the companies held [9][43] - There is potential for significant growth in companies like Hagerty and Kingsway, driven by strategic partnerships and management quality [33][35] - The outlook for PAR Technologies hinges on winning key contracts, which could substantially increase recurring revenue and growth rates [51][60]