Cellebrite DI (NasdaqGS:CLBT) Q4 2025 Earnings call February 11, 2026 08:30 AM ET Company ParticipantsAndrew Kramer - VP of Investor RelationsBhavin Shah - Director of Software Equity ResearchDavid Barter - CFOMarcus Jewell - Chief Revenue OfficerShaul Eyal - Managing Director of Equity ResearchTom Hogan - CEOConference Call ParticipantsBrian Essex - Executive Director and Equity Research AnalystEric Martinuzzi - Senior Research AnalystJeff Van Rhee - Partner and Senior Research AnalystJonathan Ho - Partner ...

Cellebrite Conference Call Summary Company Overview - **Company Name**: Cellebrite - **Industry**: Digital Investigations - **Market Position**: Market leader in digital investigations, with a significant presence in both the United States (55% of business) and internationally (45%) [2][3] Key Points and Arguments Company Mission and Impact - Cellebrite's mission is to aid in exonerating innocent individuals and ensuring that criminals, including terrorists and human traffickers, are brought to justice [2][3][7] - The company collaborates with law enforcement and intelligence agencies globally, emphasizing its role in enhancing public safety [3] Leadership Transition - Tom Hogan transitioned from interim CEO to permanent CEO after overcoming personal health challenges, emphasizing his commitment to the company's mission [5][6][9] Acquisition of Corellium - Cellebrite acquired Corellium, a company specializing in virtualizing ARM-based devices, which enhances Cellebrite's capabilities in identifying vulnerabilities and expanding its technology offerings [10][12] - The acquisition is expected to inject growth into Cellebrite's story as it looks towards 2026 [12] Strategic Direction - The company aims to extend its leadership from forensic data analysis to investigative support, helping law enforcement leverage data for case closures [14][15] - The number of detectives and investigators far exceeds forensic examiners, presenting a significant growth opportunity for Cellebrite [15] M&A Strategy - Cellebrite is committed to growth through innovation, partnerships, and acquisitions, maintaining a disciplined approach to its financials [16][18] - The company evaluates potential acquisitions regularly to complement its organic growth and partnerships [18] Federal Market Dynamics - A resurgence of growth is anticipated in the U.S. federal sector, driven by new leadership and increased funding for initiatives aligned with Cellebrite's technology [20][22] - The company has achieved full FedRAMP certification, allowing it to sell cloud-based products to federal agencies [23][24] AI Integration - Cellebrite is investing heavily in AI to enhance productivity and the value proposition of its solutions, with plans to develop agentic applications for specific investigative needs [25][26][28] - AI is expected to play a crucial role in processing vast amounts of evidence, aiding in complex investigations [28] Financial Performance and Growth Drivers - The company is currently operating at a 30% free cash flow margin, with expectations for continued growth and profitability [32] - Key growth drivers include expanding customer bases, enhancing product offerings, and leveraging new technologies [29][31] Competitive Landscape - The digital investigations market is fragmented, and Cellebrite aims to integrate various data sources to provide comprehensive solutions for law enforcement [34][35] Shareholder Dynamics - Sun's ownership stake has decreased from 100% to the low 40s, with plans for further reduction to diversify the shareholder base [36][37] Long-term Outlook - Cellebrite is positioned for significant growth in the federal space, with a market cap that allows for substantial headroom in government spending [38][39] Additional Important Information - The company emphasizes its role in making the world safer while also focusing on economic growth for stakeholders [9][19] - The leadership is committed to being good stewards of the business, aiming for a sustainable growth model [39]

The addition of Corellium’s leading virtualization technology to the Cellebrite platform delivers unmatched capabilities that transcend digital forensics, investigations, analytics and intelligenceTYSONS CORNER, Va. and PETAH TIKVA, Israel, Dec. 02, 2025 (GLOBE NEWSWIRE) -- Cellebrite (NASDAQ: CLBT), a global leader in AI-powered Digital Investigative and Intelligence solutions for the public and private sectors, today announced it has substantially expanded its capabilities through the acquisition of Corel ...

Core Insights - Cellebrite announced its Autumn 2025 Release, enhancing its Digital Investigation Platform with new integrations and AI-powered analysis capabilities [1][3] - The addition of Corellium technology through a reseller agreement expands Cellebrite's mobile virtualization offerings, enhancing its digital intelligence solutions [2][3] Product Innovations - The Autumn 2025 Release includes the new Guardian Investigate solution, which utilizes agentic AI to analyze various evidence types and streamline investigative workflows [5] - The Guardian suite has been expanded to include SaaS offerings for digital forensics and investigations, with a focus on collaboration and data residency compliance for EU customers [5] - New deployment options for Pathfinder, Cellebrite's multi-device investigative data analytics solution, are now available in AWS GovCloud, offering cost-optimized configurations [5] Market Impact - Cellebrite's technology is utilized in over 1.5 million investigations annually, serving more than 7,000 customers globally across various sectors including law enforcement and intelligence [3][6] - The integration of Corellium solutions has attracted multiple customers in the defense and intelligence sectors, enhancing mobile vulnerability research and application security testing [5]

Core Insights - Cellebrite announced the appointment of Thomas E. Hogan as CEO, effective immediately, following his role as interim CEO since January 2025 [4][5] - The company reported a 21% increase in Annual Recurring Revenue (ARR) to $418.9 million and an 18% increase in revenue to $113.3 million for the second quarter of 2025 [1][3] - Net income for the second quarter was $19.5 million, with non-GAAP net income of $30.8 million and adjusted EBITDA of $27.9 million, reflecting a 24.6% adjusted EBITDA margin [1][3] Financial Performance - Revenue for the second quarter of 2025 reached $113.3 million, up 18% year-over-year, with subscription revenue at $103.0 million, a 21% increase [3][26] - The company achieved a dollar-based net retention rate of 120%, indicating strong customer retention and expansion [3][19] - Free cash flow grew by 133% to $29.0 million, representing a 26% free cash flow margin [2][3] Strategic Developments - Cellebrite announced an agreement to acquire Corellium for an enterprise value of $170 million, which is expected to enhance its digital investigation capabilities [2][7] - The company is making progress in its FedRAMP journey, with the U.S. Department of Justice sponsoring its platform for a FedRAMP High authorization, which is crucial for expanding its services to the U.S. Federal government [10][11] - Significant leadership changes include the retirement of CFO Dana Gerner and the appointment of David Barter as the new CFO, who has extensive experience in SaaS-based public companies [2][6] Future Outlook - For the third quarter of 2025, Cellebrite expects ARR to be between $435 million and $445 million, with revenue projected between $121 million and $126 million [11] - The full-year 2025 expectations include ARR of $460 million to $475 million and revenue of $465 million to $475 million, with annual growth rates of 16% to 20% [11] - Adjusted EBITDA for the full year is anticipated to be between $118 million and $123 million, with an adjusted EBITDA margin of 25% to 26% [11]

Core Viewpoint - Cellebrite has announced its agreement to acquire Corellium for an enterprise value of $170 million in cash, enhancing its capabilities in digital investigations and security for smart devices [2][3] Company Overview - Cellebrite is a global leader in digital investigative solutions, focusing on enhancing digital investigations and intelligence gathering to accelerate justice [6] - Corellium specializes in Arm hypervisor virtualization, providing solutions for security and developer teams to build, test, and secure software for mobile, automotive, and IoT devices [7] Acquisition Details - The acquisition is valued at $170 million, with $20 million converted to equity at closing, and an additional $30 million contingent on performance milestones over the next two years [2] - The deal is expected to close in summer 2025, pending approval from the Committee on Foreign Investment in the United States [2] Strategic Benefits - The combination of Cellebrite and Corellium is expected to set a new standard for digital investigations and enhance the security of Arm-based devices across various applications [1] - Corellium's technology will broaden Cellebrite's Total Addressable Market (TAM) in both public and private sectors, enhancing its Digital Investigation Platform and mobile vulnerability research capabilities [1][2] Technological Advancements - The acquisition will enable accelerated identification of mobile vulnerabilities and exploits, and provide an industry-first ability to visualize and interact with virtual devices [4] - Corellium's virtualization platform will enhance DevSecOps efficiency across all Arm-based devices, facilitating the development of high-performance, secure mobile applications and IoT devices [4][1]