Cellebrite DI (NASDAQ:CLBT) executives said the company finished fiscal 2025 with a “solid” fourth quarter and highlighted expanding adoption of its cloud and software offerings, rising profitability, and a slate of product and go-to-market initiatives aimed at reaccelerating growth in 2026. Management also discussed progress integrating the recently acquired Corellium business and announced an agreement to acquire SCG Canada, a drone forensics provider.
Fourth-quarter and full-year results
For fiscal 2025, Cellebrite reported total annual recurring revenue (ARR) of $481 million, up 21% year over year and including Corellium. CFO David Barter said Corellium contributed $16.1 million of ARR at the time of closing on December 1; excluding Corellium, ARR grew 17% year over year. Sequentially, ARR increased 6% from the third quarter.
Profitability improved as well. Fourth-quarter gross margin was 86% (gross profit of $110.8 million), and full-year gross margin was 85%. Adjusted EBITDA in the fourth quarter was $38.3 million, up 33% year over year, with the margin expanding 340 basis points to 29.8%. Full-year Adjusted EBITDA was $127.6 million, representing a 26.8% margin.
The company also emphasized cash generation. Free cash flow was $82.3 million in the fourth quarter and $160 million for the full year, equating to a 34% free cash flow margin. Barter said Cellebrite ended 2025 with $535 million in cash, cash equivalents, and investments, up $52 million despite $147 million of net cash used to acquire Corellium.
ARR growth drivers and geographic performance
CEO Tom Hogan said ARR increased 21% in 2025 despite a “4-point headwind” tied to U.S. federal performance versus the company’s original plan, partially offset by a roughly 4-point tailwind from Corellium. He said the business saw expansion across major geographies and flagship offerings.
By geography, Barter said the Americas represented 53% of total ARR at year-end, EMEA 35%, and Asia-Pacific 12%. The Americas grew 19%, led by U.S. state and local government and Latin America, while EMEA grew 24% and Asia-Pacific increased 23%.
Management also noted mix shift toward higher-growth products. Barter said solutions including Pathfinder, Guardian, and Corellium represented 14% of total ARR at the end of 2025, and the company expects that mix to shift “closer to 20%” by the end of 2026.
Product progress: Inseyets, cloud adoption, and AI
Hogan said the company converted 55% of its installed digital forensics base to Inseyets, exceeding its 50% target. He added that Cellebrite “doubled down” on mobile research to maintain leadership in Android and “reassert” leadership in iOS, with related capabilities expected to reach the market over the next six weeks.
Cloud and SaaS adoption was another focus. Hogan said ARR for SaaS and cloud offerings grew “north of 50%” and now represents 22% of total ARR. He highlighted Guardian’s continued momentum, noting Guardian has delivered six consecutive quarters of 100%+ year-over-year growth and described Guardian Forensics as becoming the industry’s “de facto repository” where chain of custody is critical.
On AI, Hogan described three areas of focus: applying AI internally for productivity, embedding AI to increase end-user productivity and retention, and developing “agentic” applications aimed at use cases such as missing children, child exploitation, cybercrime, cold cases, and major investigations. He said the company’s 2026 guidance assumes no monetization from those agentic applications, but he believes there may be an opportunity to begin monetizing some of them during 2026.
During Q&A, Hogan said customers experimenting with general-purpose AI tools have seen a gap versus what Cellebrite can produce due to its access to complex mobile evidence and investigative workflow expertise. He also said Corellium is being used to accelerate identification of vulnerabilities and exploits, noting that Cellebrite has used the technology for several years and now owns it.
Acquisitions: Corellium integration and SCG Canada agreement
Cellebrite completed its acquisition of Corellium in early December and said it continues to work toward final clearance from CFIUS. Hogan described Corellium’s ARM virtualization technology as “industry-unique” and said customer interest across defense, intelligence, and the private sector has exceeded expectations. He also said the company has transitioned from a reseller to a fully integrated selling motion for Corellium and expects Corellium to grow faster than the overall business.
Separately, Hogan announced an agreement to acquire SCG Canada to add drone forensics capabilities. He said SCG is currently a “small operation” with a low single-digit ARR run rate, but the company views it as market-leading in drone forensics. Hogan said the expected purchase price is in the $15 million to $20 million range and that Cellebrite would be “disappointed” if SCG’s mid-term ARR growth potential is not “well north” of that level. The company expects to close the SCG transaction by the end of the first quarter and did not include any contribution from the deal in its 2026 outlook.
In discussing how the deal came together, Hogan and CRO Marcus Jewell said there is existing demand in defense and intelligence, and that drone data is increasingly viewed as another “sensor” alongside mobile devices. Hogan also framed drones as a strategic adjacency that expands total addressable market alongside investigations and analytics initiatives.
2026 outlook and federal market commentary
For the first quarter of 2026, management guided to ARR of $491 million to $493 million (20% to 21% growth), revenue of $127 million to $129 million (18% to 20% growth), and Adjusted EBITDA of $26 million to $28 million (21% to 22% margin). For full-year 2026, Cellebrite guided to ARR of $567 million to $573 million (18% to 19% growth), revenue of $565 million to $571 million (19% to 20% growth), and Adjusted EBITDA of $149 million to $155 million (26% to 27% margin).
Barter said the company modified its guidance philosophy for 2026, moving to tighter ranges for ARR and revenue targets corroborated by renewals pipeline and RPO coverage; he cited a narrowing in ARR range compared with the prior year. He also said Cellebrite expects roughly 60% of Adjusted EBITDA dollars to be generated in the second half of the year.
On the U.S. federal segment, Hogan said prior disruptions are “now behind us” and that the company expects federal growth to reaccelerate and exceed the company’s overall growth rate in 2026. He pointed to pent-up demand, increased federal funding focus, and expected DOJ-sponsored authorization to operate for FedRAMP Level 4 before the end of the quarter, which management said would pave the way for Guardian and cloud assets in the federal market. Jewell added that the company is tracking multiple seven-figure federal programs and described a large scoped opportunity tied to storage requirements exceeding 9 petabytes, while cautioning that “backlog” would imply a purchase order.
Barter also outlined margin headwinds embedded in the outlook, including incremental Corellium costs that he said equate to about a point of margin compression initially and should dissipate as the top line expands, and foreign exchange pressure from shekel strength. He said the company expects 2026 free cash flow margins to remain above 30%.
About Cellebrite DI (NASDAQ:CLBT)
Cellebrite DI is a global provider of digital intelligence and forensics solutions that enable law enforcement agencies, government bodies and enterprises to extract, analyze and act on data from mobile devices, cloud services and digital sources. The company’s technology is designed to accelerate investigations, support evidence-based decision-making and enhance security operations by delivering actionable intelligence in a secure, scalable platform.
The company’s flagship offerings include the Universal Forensic Extraction Device (UFED) series for data acquisition and decoding, Physical Analyzer for advanced data parsing and visualization, and Pathfinder for case-driven investigation workflows.
