Core Insights - Cellebrite reported a strong fourth quarter with a gross margin of 86% and a full-year gross margin of 85%, indicating improved profitability [1][7] - The company achieved fourth-quarter revenue of $128.8 million, an 18% increase year-over-year, and full-year revenue of $475.7 million, up 19% [2][7] - Total annual recurring revenue (ARR) for fiscal 2025 reached $481 million, a 21% increase year-over-year, with a contribution of $16.1 million from the recently acquired Corellium [3][7] Financial Performance - Adjusted EBITDA for the fourth quarter was $38.3 million, reflecting a 33% year-over-year increase, with a margin of 29.8% [1][7] - Free cash flow for the fourth quarter was $82.3 million, totaling $160 million for the full year, resulting in a 34% free cash flow margin [8][7] - The company ended fiscal 2025 with $535 million in cash and investments, an increase of $52 million despite $147 million used for the Corellium acquisition [8][7] Growth Drivers - SaaS/cloud ARR grew over 50% and now constitutes 22% of total ARR, with the Guardian product achieving six consecutive quarters of over 100% year-over-year growth [6][13] - The Americas accounted for 53% of total ARR, with a 19% growth rate, while EMEA and Asia-Pacific grew by 24% and 23%, respectively [9][7] Product and Market Initiatives - The company is focusing on integrating Corellium and has announced an agreement to acquire SCG Canada for drone forensics capabilities, expected to close by the end of Q1 2026 [4][17] - Management anticipates a shift towards higher-growth products, with solutions like Pathfinder, Guardian, and Corellium expected to represent 20% of total ARR by the end of 2026 [10][7] 2026 Outlook - For fiscal 2026, Cellebrite projects ARR between $567 million and $573 million, revenue between $565 million and $571 million, and Adjusted EBITDA between $149 million and $155 million [5][19] - The company expects federal market growth to reaccelerate, driven by pent-up demand and increased federal funding focus [21][22]