Cellebrite DI .(US:CLBT)2026-02-11 14:30Financial Data and Key Metrics Changes - The company closed 2025 with an ARR growth of 21% to $481 million, including the acquisition of Corellium, which contributed $16.1 million to ARR [21][22] - Excluding Corellium, ARR grew 17% year-over-year, with a sequential increase of 6% from Q3 [21][22] - Revenue for Q4 grew 18% to $128.8 million, while full-year revenue increased 19% to $475.7 million [23] - Adjusted EBITDA for Q4 was $38.3 million, a 33% increase year-over-year, with a margin of 29.8% [24] - Free cash flow for the full year was $160 million, representing a 34% margin, which is a 30% increase over 2024 [24][25] Business Line Data and Key Metrics Changes - The company converted 55% of its installed digital forensics base to Inseyets, exceeding the 50% target [7] - ARR for SaaS and cloud offerings grew over 50%, now representing 22% of total ARR [9] - Higher growth solutions like Pathfinder and Guardian now represent 14% of total ARR, expected to approach 20% by the end of the coming year [22] Market Data and Key Metrics Changes - The Americas accounted for 53% of total ARR, with EMEA at 35% and Asia-Pacific at 12% [22] - Growth rates by geography showed the Americas growing 19%, EMEA 24%, and Asia-Pacific 23% [22] Company Strategy and Development Direction - The company aims to reaccelerate growth in 2026 with initial guidance of 18%-19% compared to 17% organic growth in 2025 [10] - Focus on expanding digital forensics capabilities, including investments in mobile research and drone forensics [8][14] - The acquisition of SCG Canada is expected to enhance the company's capabilities in drone forensics, addressing a growing market [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about strong core demand for solutions, driven by macro trends such as crime and population growth [10] - The U.S. federal segment is expected to recover and exceed overall growth rates in 2026, aided by increased federal funding and the anticipated approval for FedRAMP Level 4 [11] - The company is focused on maintaining a free cash flow margin of at least 30% while reaccelerating ARR growth [25][31] Other Important Information - The company ended 2025 with $535 million in cash and investments, up $52 million despite the acquisition outflow [24] - The company plans to launch Guardian Investigate in spring 2026, aimed at enhancing case narratives for investigators [17] Q&A Session Summary Question: How will the company ensure successful execution of the SCG Canada and Corellium acquisitions? - Management indicated that the Corellium transaction took longer than expected but has allowed for better integration planning. The SCG acquisition is seen as complementary and manageable [34][35] Question: What drove the decision to acquire SCG Canada? - The acquisition was driven by both customer demand and strategic planning to address the growing drone market, which is expected to expand significantly [38][40] Question: What are the expectations for U.S. federal government spending? - Management noted that there is pent-up demand in defense and intelligence use cases, with confidence in growth due to strategic planning and upcoming events like the FIFA World Cup [48][49] Question: How will the company approach the integration of Corellium and its impact on costs? - The integration is expected to initially compress margins but is anticipated to improve profitability as the company grows into the acquisition [75][76]