Cellebrite DI Ltd. (CLBT) Q1 2026 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
Cellebrite's earnings call shows strong financial performance with a 21% ARR growth and a 29% increase in adjusted EBITDA. The company has a solid cash position and geographic ARR growth. Despite some uncertainties in AI adoption and flat net new ARR, management remains optimistic about future growth and product adoption. The Q&A session reveals confidence in overcoming competitive threats and leveraging new products, contributing to a positive outlook. With a market cap of $2.43 billion, the stock is likely to experience a positive movement (2% to 8%) in the next two weeks.
Key Financial Performance
ARR (Annual Recurring Revenue) ARR grew 21% year-over-year to $493 million. The growth was attributed to the launch of new products and early access to new technology, which are expected to contribute more significantly in the second half of the year.
Adjusted EBITDA Adjusted EBITDA was $30.6 million, up 29% year-over-year. This increase was achieved despite FX headwinds and absorbing costs from the Corellium acquisition.
Free Cash Flow Margin Free cash flow margin for the trailing 12 months was 32%. This reflects strong cash generation and operational efficiency.
Revenue Revenue was $128.3 million, up 19% year-over-year. Total subscription revenue grew 23%, partially offset by a decline in nonrecurring training, hardware, and professional services.
Gross Profit Gross profit increased 21% to $110.2 million, representing a gross margin of 86%. This was driven by higher subscription revenue.
Net Income Net income was $30.6 million, or $0.12 per fully diluted share. This reflects strong profitability and operational performance.
Cash, Cash Equivalents, and Investments The company ended the quarter with $535 million in cash, cash equivalents, and investments, remaining stable despite the acquisition of SCG Canada.
Geographic ARR Growth The Americas grew 18%, EMEA grew 25%, and Asia Pacific increased 21%. Growth in EMEA was driven by the defense and intelligence sector, which grew in the mid-30% range.
Growth Products ARR Growth products, including Guardian, Pathfinder, Corellium, and drone forensics, doubled year-over-year. These products are expected to account for close to 20% of ARR by the end of the year.
You have reached the limit. Sign up to access full content
Get started
Operating Highlights
Genesis AI Solution: Launched as a next-gen AI solution, Genesis delivers rapid, actionable insights from complex data sources. Early adoption exceeded expectations with over 500 registered users from 15 countries. Feedback highlights its transformative impact on digital evidence analytics, including significant time savings and enhanced victim identification.
Guardian Investigate: An AI-powered case management system for digital evidence, now generally available. It supports diverse data types and integrates advanced AI capabilities, improving investigation speed and efficiency.
Advanced Unlock Capabilities: Enhanced Android and iOS unlock capabilities, providing a comprehensive platform for accessing and unlocking mobile devices.
FedRAMP High Authorization: Achieved FedRAMP high authorization, enabling access to U.S. federal agencies and positioning Cellebrite for growth in government cloud offerings.
U.S. Federal Market Rebound: U.S. federal market growth is accelerating, driven by stabilization in agency leadership, targeted funding for digital initiatives, and geopolitical factors. ARR pipeline increased by 35% year-over-year.
EMEA Growth: EMEA ARR growth increased to 25%, with defense and intelligence sectors growing in the mid-30% range.
ARR Growth: ARR grew 21% year-over-year to $493 million, with sequential growth of $12 million.
Free Cash Flow Margin: Maintained a free cash flow margin of 32% over the trailing 12 months.
Rule of 50+: Continued adherence to the Rule of 50+, indicating strong operational efficiency.
AI Integration: AI is being integrated across products and operations, enhancing top-line growth, operational efficiency, and investigative capabilities.
Portfolio Expansion: Significant portfolio expansion with new products like Genesis, Guardian Investigate, and Advanced Unlocks, positioning Cellebrite for accelerated growth.
Leadership Transition: Appointment of Shiv Ramji as President of Products and Technology, bringing expertise in security, AI, and cloud to drive future growth.
You have reached the limit. Sign up to access full content
Get started
Risk or Challenges
AI Product Development: The company acknowledges that there is no margin for error in the development and deployment of AI-enabled investigative analytics. Any misstep could impact the company's reputation and operational effectiveness.
FedRAMP Certification: Achieving FedRAMP high authorization required significant investment of time, money, and talent. Delays or issues in leveraging this certification for U.S. federal agency contracts could hinder growth in this segment.
U.S. Federal Market: The U.S. federal market experienced a slowdown in 2025 due to budget pressures and organizational changes. While there are signs of recovery, any further instability or funding delays could impact growth.
Geopolitical Instabilities: Global geopolitical instabilities, including conflicts in Israel and tensions with Iran, pose risks to operational continuity and employee safety, particularly in regions directly affected.
Corellium Acquisition: The acquisition of Corellium is still pending CFIUS approval. Any delays or failure to secure approval could impact the integration and expected benefits from this acquisition.
Economic and FX Headwinds: The company faces foreign exchange headwinds, estimated to be approximately 2 points, which could impact financial performance.
Product Adoption and Market Fit: While early feedback on new products like Genesis and Guardian Investigate is positive, the company acknowledges that AI is dynamic and unpredictable. Challenges in adoption or market fit could impact revenue projections.
You have reached the limit. Sign up to access full content
Get started
Guidance & Outlook
AI Revenue Contribution: The company anticipates generating AI-specific revenue in 2026, despite initially planning for zero AI revenue. Early adoption of the Genesis AI platform has exceeded expectations, with over 500 registered users from 15 countries. The company estimates the TAM for investigative AI over the next 4 years at $12.5 billion and sees potential to double its business with strong execution.
ARR Growth: The company expects ARR to grow to $510 million to $513 million in Q2 2026, representing a sequential growth of approximately 50% at the midpoint. Full-year ARR growth is expected to be driven by new products, including AI and cloud offerings.
Revenue Outlook: For Q2 2026, revenue is projected to be between $130 million and $133 million, reflecting a 15% to 17% increase. Full-year revenue growth is supported by the adoption of cloud and AI products, as well as ratable revenue contracts.
Adjusted EBITDA: Q2 2026 adjusted EBITDA is expected to range from $29 million to $31 million, with a margin of 22% to 23%. This includes FX headwinds and costs associated with user conferences and product launches.
Product Launches and Adoption: The company plans to launch the Genesis AI platform for general availability in mid-June 2026. Guardian Investigate, an AI-powered case management solution, is also expected to drive growth in the second half of 2026.
U.S. Federal Market Growth: The U.S. federal segment is rebounding, with growth rates expected to return to the 20% range, potentially exceeding historical mid-20% rates. The pipeline for U.S. federal opportunities has increased by 35% year-over-year.
Geographic Growth: EMEA ARR growth has increased to 25%, driven by the defense and intelligence sector, which grew in the mid-30% range. The Americas and Asia Pacific regions also showed strong growth, contributing to overall ARR expansion.
FedRAMP Certification Impact: The recent FedRAMP high authorization positions the company to pursue U.S. federal cloud opportunities, with a gradual ramp expected over the next several quarters and into 2027.
You have reached the limit. Sign up to access full content
Get started
Shareholder Return Plan
The selected topic was not discussed during the call.
You have reached the limit. Sign up to access full content
Get started
Key Q&A
Q:Are customers putting Cellebrite core investments on hold due to new products like Genesis?
A:No, management does not see any tendency or inclination for customers to stop extracting and collecting evidence or storing it safely. They view AI as a critical tool to process the increasing amount of digital evidence.
Q:Does Mythos pose a threat to Cellebrite's business?
A:No, management believes Mythos helps with vulnerability discovery but does not pose a threat. They argue that Cellebrite's proprietary hardware-enabled solutions and expertise in forensically sound access are unmatched and will continue to lead the market.
Q:What is the adoption process and learning curve for new products like Guardian Investigate and Genesis?
A:Management is confident in the adoption of these products due to their powerful capabilities. They have distributed Genesis to over 500 registered users and received positive feedback. They believe word of mouth and testimonials will drive adoption, and they are leveraging their existing customer base and marketing efforts to promote the products.
Q:How is the spring release of unlock capabilities performing?
A:The advanced unlock technology was introduced in the last 10 days of the quarter and has shown strong initial interest. Management is optimistic about its adoption and sees it as a logical attachment to platform deals.
Q:What are the assumptions behind the potential doubling of the company's size due to investigative AI?
A:Management estimates there are 500,000 detectives and investigators globally. They assume a $20,000-$30,000 investment per user for AI tools, leading to a $12.5 billion market opportunity. They conservatively estimate capturing 5% of this market, equating to $600 million in ARR.
Q:How is Genesis being monetized during its early stages?
A:Genesis is currently being offered for free to selected users to gather feedback. Management plans to price it aggressively upon general availability to encourage broad adoption, believing users will recognize its value and continue using it.
Q:Why was net new ARR flat year-on-year despite positive momentum?
A:Management cited a small pool of expirations, deal complexity, and timing issues as reasons for flat net new ARR. They remain optimistic about growth in Q2 and Q3 due to delayed deals and increasing deal sizes.
Q:What is the spending environment and its impact on Cellebrite?
A:Global events and geopolitical instability are seen as tailwinds for Cellebrite. Management highlighted specific appropriations targeting their solutions and increasing budgets in digital and intelligence (D&I) sectors as positive factors.
Q:Review of Unclear Management Responses
A:Management avoided providing specific details on the pricing strategy for Genesis upon general availability, stating that the market is dynamic and the initial pricing will likely be adjusted based on adoption and feedback.
You have reached the limit. Sign up to access full content
Get started
Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
AI capability
AI offering
Agentic AI
COPS
Cellebrite
GI
Genesis AI
Guardian Investigate
Investigate AI
President Products
Products Technology
Shiv
adopter
attendee
availability
ceremony
collaboration analytics
conference
conflict Iran
day
decade domain
development
device
differentiation
efficiency
evening
evidence
expansion portfolio
exploitation case
feedback
governance
investor
list
mid
mission
speed
training
user
CLBT Transcript
Cellebrite DI Ltd. (CLBT) Presents at J.P. Morgan 54th Annual Global Technology, Media and Communications Conference Transcript
Neutral5-18
Cellebrite DI Ltd. (CLBT) Q1 2026 Earnings Call Transcript
Positive5-14
Cellebrite's earnings call shows strong financial performance with a 21% ARR growth and a 29% increase in adjusted EBITDA. The company has a solid cash position and geographic ARR growth. Despite some uncertainties in AI adoption and flat net new ARR, management remains optimistic about future growth and product adoption. The Q&A session reveals confidence in overcoming competitive threats and leveraging new products, contributing to a positive outlook. With a market cap of $2.43 billion, the stock is likely to experience a positive movement (2% to 8%) in the next two weeks.
Avante Corp. (XX:CA) Q3 2026 Earnings Call Transcript
Positive3-3
Financial performance shows solid growth in revenue, RMR, and net income, with improved margins. Analysts' Q&A responses indicate confidence in maintaining growth without additional expenses and optimism about demand stability. The company's focus on M&A and innovation, along with positive guidance, supports a positive outlook. Given the market cap of $2.4 billion, the stock price is likely to react positively, but not dramatically.
Cellebrite DI Ltd. (CLBT) Presents at Morgan Stanley Technology, Media & Telecom Conference 2026 Transcript
Neutral3-3
CLBT Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
How soon is the transcript available after the earnings call ends?
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
Is the transcript edited or altered in any way?
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
