Cellebrite DI Ltd. (NASDAQ:CLBT) is one of the best growth stocks to buy for the next 20 years. On February 12, following the company’s solid Q4 2025 results, TD Cowen lowered its price target on Cellebrite to $23 from $25 and maintained a Buy rating. The firm cited market contraction as the reason for the reduction, despite the company reporting 21% growth in both annual recurring revenue and subscription revenue alongside a positive outlook for 2026. On the same day, Needham also lowered its price targ ...

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]

Financial Data and Key Metrics Changes - The company reported a 21% growth in Annual Recurring Revenue (ARR) for 2025, reaching $481 million, which includes the acquisition of Corellium [22][24] - Excluding Corellium, ARR grew 17% year-over-year, with a sequential increase of 6% over Q3 [22] - Revenue for Q4 grew 18% to $128.8 million, while full-year revenue increased 19% to $475.7 million [23][24] - 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 its 50% target [9] - SaaS and cloud offerings saw ARR growth of over 50%, now representing 22% of total ARR [10] - Higher growth solutions like Pathfinder and Guardian now account for 14% of total ARR, with expectations to reach 20% by the end of 2026 [22][23] Market Data and Key Metrics Changes - The Americas accounted for 53% of total ARR, with a growth rate of 19%, while EMEA grew 24% and Asia-Pacific increased 23% [22] - The company anticipates a reacceleration in growth for the U.S. federal segment, which is expected to exceed the overall company growth rate in 2026 [12] Company Strategy and Development Direction - The company aims to leverage its leadership in digital forensics and expand into drone forensics, which is expected to grow significantly [15][16] - The acquisition of SCG Canada is seen as a strategic move to enhance capabilities in drone forensics [14] - The company plans to evolve its product offerings and packaging to facilitate customer expansion over multiple years [30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the core demand for solutions, driven by macro trends such as crime and population growth [11] - The company expects to achieve ARR growth of 18%-19% in 2026, with revenue growth of 19%-20% [30] - Management highlighted the importance of AI in enhancing productivity and efficiency, viewing it as a tailwind for the business [19][20] Other Important Information - The company ended 2025 with $535 million in cash and investments, despite a $147 million outflow for the Corellium acquisition [24] - The company is focused on maintaining a Free Cash Flow margin of at least 30% while reaccelerating ARR growth [25] Q&A Session Summary Question: How will the company ensure successful integration of acquisitions while maintaining focus on core operations? - Management indicated that the Corellium acquisition took longer than expected, but they have had time to prepare for integration and are confident in managing both Corellium and SCG Canada effectively [37] Question: What drove the decision to pursue the drone forensics acquisition? - The decision was driven by both customer demand and strategic planning, recognizing the growing importance of drone technology in defense and intelligence [40][41] Question: Can you provide more details on the investments made to enhance mobile forensics leadership? - Investments were made to strengthen internal research capabilities and partnerships to ensure leadership in both Android and iOS platforms [45][46] Question: What is the outlook for the U.S. federal government spending environment? - Management noted that there is pent-up demand in defense and intelligence use cases, with confidence in growth driven by strategic planning and upcoming events like the FIFA World Cup [48][49] Question: What is the expected contribution of Corellium to the company's financials? - Corellium is expected to contribute a couple of percentage points to growth, with a point of compression on margins due to associated costs [78]

Financial Data and Key Metrics Changes - The company reported a 21% growth in Annual Recurring Revenue (ARR) for 2025, reaching $481 million, which includes the acquisition of Corellium [22][24] - Excluding Corellium, ARR grew 17% year-over-year, with a sequential increase of 6% over Q3 [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% growth 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 [9] - ARR for SaaS and cloud offerings grew over 50%, now representing 22% of total ARR [10] - Guardian's ARR continued to grow, achieving its sixth consecutive quarter of over 100% year-on-year growth [10] Market Data and Key Metrics Changes - The Americas accounted for 53% of total ARR, with a growth rate of 19%, while EMEA grew 24% and Asia-Pacific increased by 23% [22] - The company expects the U.S. federal segment to reaccelerate growth in 2026 after a flat performance in 2025 [12] Company Strategy and Development Direction - The company aims to reaccelerate growth in 2026 with initial guidance of 18%-19% [11] - Investments in mobile research and AI functionality are expected to enhance leadership in digital forensics [8][19] - The acquisition of SCG Canada is seen as a strategic move to address the growing drone forensics market, which is projected to grow over 20% annually [15][16] 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 [11] - The company anticipates a surge in demand from federal agencies due to increased funding and the expected approval of FedRAMP Level 4 [12][50] - Management highlighted the importance of AI as a tailwind for productivity and customer retention [19][20] Other Important Information - The company ended 2025 with $535 million in cash and equivalents, despite a $147 million outflow for the Corellium acquisition [24] - The company plans to maintain a free cash flow margin of at least 30% while focusing on ARR growth [25][32] Q&A Session Summary Question: How will the company ensure successful integration of acquisitions while maintaining focus on core operations? - Management indicated that the Corellium acquisition took longer than expected, but they have had time to prepare for integration and are excited about the SCG acquisition due to its complementary nature [37] Question: What drove the decision to pursue the drone forensics acquisition? - The decision was driven by both customer demand and strategic planning to expand into adjacent markets with significant total addressable market (TAM) potential [41] Question: Can you provide more details on the investments made to enhance mobile forensics leadership? - Investments were made to strengthen capabilities in both Android and iOS, ensuring leadership offerings across major operating systems [45] Question: What is the outlook for the U.S. federal government spending environment? - 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 [49] Question: How should investors think about the guidance philosophy for 2026? - The company has adopted a more prudent approach with tighter ranges for ARR and revenue expectations, reflecting a focus on renewals and deal pipelines [26][80]

分组1 - Cellebrite DI Ltd. reported quarterly earnings of $0.14 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.10 per share a year ago, resulting in an earnings surprise of +2.41% [1] - The company achieved revenues of $128.82 million for the quarter ended December 2025, exceeding the Zacks Consensus Estimate by 1.26%, and up from $109.05 million year-over-year [2] - Over the last four quarters, Cellebrite has surpassed consensus EPS estimates four times and topped revenue estimates three times [2] 分组2 - The stock has underperformed, losing about 17.1% since the beginning of the year, while the S&P 500 has gained 1.4% [3] - The current consensus EPS estimate for the upcoming quarter is $0.12 on revenues of $127.55 million, and for the current fiscal year, it is $0.58 on revenues of $558.28 million [7] - The Zacks Industry Rank for Internet - Software is in the bottom 44% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Financial 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]

UPDATED: FEBRUARY 2026 INTRODUCTION TO CELLEBRITE INVESTOR PRESENTATION February 11, 2026 In regard to forward looking non-GAAP guidance, we are not able to reconcile the forward-looking Adjusted EBITDA measure to the closest corresponding GAAP measure without unreasonable efforts because we are unable to predict the ultimate outcome of certain significant items including, but not limited to, fair value movements, share-based payments for future awards, tax expense, depreciation and amortization expense, an ...

INVESTOR PRESENTATION UPDATED: FEBRUARY 2026 INTRODUCTION TO CELLEBRITE February 11, 2026 www.cellebrite.com © 2025 Cellebrite DI Ltd. www.cellebrite.com DISCLAIMER This presentation has been prepared by Cellebrite DI Ltd. (the "Company") solely for informational purposes. It is not, and should not be assumed to be, complete. This presentation is not an offer to sell securities, nor is it a solicitation of an offer to buy securities. This presentation is not directed at, or intended for distribution to or u ...

Core Insights - Cellebrite's 2026 Industry Trends Report highlights the increasing importance of digital evidence in investigations, particularly through smartphones, which are cited by 97% of investigators as the top source of evidence, a significant increase from 73% in 2024 [2][8] - The report indicates a strong interest in AI adoption for enhancing investigation efficiency, with 65% of public safety respondents believing AI can accelerate investigations, although nearly one-third report policy barriers to its use [3][8] - Public safety agencies recognize the value of digital evidence, with 95% agreeing it increases case solvability, yet 94% report that the complexity of digital evidence is straining their caseloads [4][8] Digital Evidence and Investigations - The reliance on smartphones for digital evidence has surged, reflecting public expectations for its use in investigations [2] - Digital evidence is now seen as foundational to modern justice, prompting agencies to rethink their workflows and resource allocation [5] - Despite the recognition of digital evidence's importance, only 62% of agency leaders are reallocating resources from traditional methods to digital approaches, highlighting a gap in modernization efforts [4] AI and Policy Challenges - AI is viewed as a critical tool for speeding up investigations, yet significant policy barriers exist that hinder its implementation in many agencies [3] - The report emphasizes the need for responsible AI use in policing, advocating for public consultation and appropriate safeguards [5] Cloud Adoption and Evidence Management - Cloud adoption for digital evidence management has increased to 42% in 2026, up from 38% in 2025, although two-thirds of respondents still rely on physical media, which poses risks to evidence integrity [6][8] - The shift towards cloud solutions is essential for improving evidence-sharing and collaboration among agencies [6] Private Sector Insights - In the private sector, digital investigations are becoming integral to business operations, with a notable shift from strategic intent to practical application of AI [7] - Organizations are increasingly focused on proactive investigation strategies, emphasizing the importance of understanding data across various systems and applications [9] Implications for Cellebrite - The trends identified in the report have led to strong adoption of Cellebrite's Guardian platform among law enforcement agencies, with triple-digit year-over-year growth in 2025 across customers, users, and data stored [9]

TYSONS CORNER, Va. and PETAH TIKVA, Israel, Jan. 21, 2026 /PRNewswire/ -- Cellebrite (NASDAQ: CLBT), a global leader in premier Digital Investigative solutions for the public and private sectors, today announced it will report its fourth-quarter and fiscal year 2025 financial results before the U.S. markets open on Wednesday, February 11, 2026. Later that same morning, Cellebrite will host a live conference call and webcast to review the Company's financial results for the fourth quarter of 2025 and discus ...