Cellebrite DI Ltd. (NASDAQ: CLBT) reported fourth‑quarter 2025 revenue of $128.8 million, an 18% year‑over‑year increase, and full‑year revenue of $475.7 million, up 19% from $401.2 million in 2024. Net income rose to $21.3 million and adjusted EBITDA reached $38.3 million, giving an adjusted EBITDA margin of 29.8%. Adjusted earnings per share were $0.14, matching or slightly exceeding analyst expectations of $0.11–$0.14, a beat that reflects disciplined cost management and a favorable mix of high‑margin subscription revenue.
The company’s annual recurring revenue (ARR) grew 21% to $480.8 million, driven by the continued expansion of its cloud‑native Digital Investigation Platform and the migration of a growing share of its installed base to the Inseyets offering. The Corellium acquisition, completed in December 2025, added $16.1 million in ARR and is expected to enhance the platform’s AI capabilities, further supporting the strong ARR momentum.
Adjusted EBITDA margin expansion to 29.8% in Q4 2025, up from 26.4% in Q4 2024, was driven by higher pricing power in the subscription business and improved operational leverage as revenue scales. The margin increase offsets modest cost inflation and the company’s investment in platform development, indicating a balanced approach to growth and profitability.
Management guided for Q1 2026 revenue of $127 million to $129 million and adjusted EBITDA of $26 million to $28 million, while full‑year 2026 revenue guidance of $565 million to $571 million and adjusted EBITDA of $149 million to $155 million signals confidence in continued ARR acceleration and margin stability. The guidance represents an upward revision from prior estimates and reflects expectations of sustained demand for cloud‑based forensic solutions.
Thomas E. Hogan, CEO, noted that the company “closed 2025 with a solid fourth quarter that capped a year of meaningful strategic progress.” He also highlighted a “challenging U.S. Federal spending environment” as a headwind, while emphasizing the company’s strong adoption of Inseyets and the strategic value of the Corellium acquisition as tailwinds. The company’s free cash flow of $160 million for FY 2025, up from $124 million in 2024, underscores effective spend discipline.
Investors responded with a mixed reaction, reflecting confidence in the company’s growth trajectory and margin expansion while also weighing the headwinds in federal spending and the broader market environment.
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