Cellebrite DI (NASDAQ:CLBT) Posts Earnings Results, Beats Estimates By $0.08 EPS

Key Points

• Cellebrite beat quarterly estimates, reporting EPS of $0.17 versus $0.09 expected and revenue of $149.02 million versus $145.83 million expected.
• Revenue grew 18% and ARR rose 20% to $528.5 million. The company raised its full-year adjusted EBITDA outlook to $163 million–$166 million while reaffirming ARR guidance of $550 million–$560 million.
• Shares fell 13.3% in Thursday trading despite the results. Management flagged higher-than-expected Corellium churn and uncertainty around revenue timing as customers shift toward cloud and AI subscriptions.

Cellebrite DI (NASDAQ:CLBT - Get Free Report) released its quarterly earnings results on Thursday. The company reported $0.17 earnings per share for the quarter, topping analysts' consensus estimates of $0.09 by $0.08, FiscalAI reports. Cellebrite DI had a return on equity of 15.58% and a net margin of 11.43%. The company had revenue of $149.02 million during the quarter, compared to analysts' expectations of $145.83 million.

Here are the key takeaways from Cellebrite DI's conference call:

• Q3 results exceeded guidance, with ARR up 20% to $528.5 million and revenue up 18% to $149 million. Growth was broad-based: EMEA rose 22%, Asia Pacific 31%, and U.S. federal ARR growth accelerated to 18%.
• Strong execution and spending discipline lifted adjusted EBITDA 42% to $53.6 million; the company also generated $52 million in quarterly free cash flow. Cellebrite raised its full-year adjusted EBITDA outlook to $163 million–$166 million while reaffirming ARR guidance of $550 million–$560 million.
• Genesis reached $2 million in ARR in its first full quarter, with early customers using it to analyze diverse evidence and accelerate investigations. Cellebrite plans to introduce an on-premise version and develop Genesis into a broader AI-native platform in 2027, though executives said it is too early to know whether future purchases will be incremental or reallocated from existing budgets.
• Corellium faced higher-than-expected churn and limited new sales, and management expects its contribution to be near the low end of its prior range. Cellebrite also said the remaining Inseyets conversions are likely to deliver a smaller uplift and fewer expansions than in prior years.
• Management cited a shift toward cloud and AI subscriptions, which are recognized ratably, as a factor in revenue timing and forecast uncertainty; it has greater confidence in the lower end of its ARR outlook. The company expects U.S. redomiciliation, subject to approvals, to reduce customer sales friction and is targeting completion in the first half of 2027.

Cellebrite DI Stock Down 13.3%

Shares of CLBT traded down $1.68 during mid-day trading on Thursday, hitting $11.02. The company had a trading volume of 4,473,304 shares, compared to its average volume of 2,257,812. Cellebrite DI has a 1-year low of $9.58 and a 1-year high of $19.98. The business's 50-day simple moving average is $11.62 and its 200-day simple moving average is $13.27. The stock has a market cap of $2.75 billion, a PE ratio of 50.08, a P/E/G ratio of 1.94 and a beta of 1.06.

Insider Activity at Cellebrite DI

In other news, insider Thomas Hogan sold 25,299 shares of the business's stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $11.29, for a total transaction of $285,625.71. Following the completion of the sale, the insider directly owned 765,249 shares of the company's stock, valued at $8,639,661.21. The trade was a 3.20% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CRO Marcus Jewell sold 12,562 shares of the business's stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $11.24, for a total value of $141,196.88. Following the transaction, the executive directly owned 427,128 shares in the company, valued at $4,800,918.72. This trade represents a 2.86% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 56,516 shares of company stock worth $636,660. 5.70% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

A number of analysts recently commented on the company. DA Davidson reiterated a "buy" rating and set a $15.00 price objective on shares of Cellebrite DI in a research report on Tuesday, September 15th. JPMorgan Chase & Co. lowered their target price on shares of Cellebrite DI from $20.00 to $16.00 and set an "overweight" rating for the company in a research note on Friday, August 14th. Needham & Company LLC cut their price target on Cellebrite DI from $15.00 to $12.50 and set a "buy" rating for the company in a report on Friday, August 14th. Lake Street Capital reduced their price target on Cellebrite DI from $21.00 to $15.00 and set a "buy" rating on the stock in a research note on Friday, August 14th. Finally, Weiss Ratings cut Cellebrite DI from a "sell (d+)" rating to a "sell (d)" rating in a report on Thursday, August 27th. Five investment analysts have rated the stock with a Buy rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Cellebrite DI currently has a consensus rating of "Moderate Buy" and a consensus price target of $16.70.

About Cellebrite DI

Cellebrite DI Ltd. develops digital intelligence software and services that help organizations access, collect, preserve and analyze digital evidence. Its tools are used to investigate information from mobile devices, computers, cloud sources and other digital systems. The company's offerings include its UFED platform for extracting data from digital devices, Physical Analyzer for examining and interpreting evidence, and analytics and case-management tools such as Pathfinder and Guardian. Customers include law enforcement, public safety, intelligence and defense agencies, as well as organizations in the private sector.

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