Cellebrite DI Ltd. Q4 FY2025 earnings call

• Cemented insights offering as the gold standard in digital forensics.
• Drove strong adoption of SaaS and cloud-based offerings, with ARR for these offerings growing north of 50% and representing 22% of total ARR.
• Extended integrated AI functionality, completed acquisition of Keryllium, and added talent.
• Converted 55% of installed digital forensics space to Insights, exceeding the 50% target.
• Doubled down on mobile research to maintain leadership in Android and reassert leadership in iOS, with new capabilities expected in the coming six weeks.
• Completed acquisition of Keryllium, with its ARM virtualization technology seen as a unique asset.
• Announced agreement to purchase SCG Canada to address drone forensics, expected to close by end of first quarter.
• Progress in ethical use of GenAI, with AI viewed as a tailwind across internal productivity, user productivity, and monetization of agentic applications.

ARR grew 21% to $481 million in 2025, including the acquisition of Keryllium. Excluding Keryllium, ARR grew 17% year over year. Geographically, The Americas represented 53% of total ARR, EMEA 35%, and Asia Pacific 12%. Q4 revenue was $128.8 million, full year revenue $475.7 million. Software solutions drove approximately 90% of total revenue. Q4 gross profit was $110.8 million (86% gross margin), full year gross margin 85%. Q4 adjusted EBITDA was $38.3 million (33% increase from prior year), full year adjusted EBITDA $127.6 million (26.8% margin).

• 2026 ARR guidance: 18% to 19% growth, range $567-573 million.
• 2026 revenue guidance: 19% to 20% growth, range $565-571 million.
• 2026 adjusted EBITDA guidance: $149-155 million, 26%-27% margin.
• First quarter 2026 ARR expected: $491-493 million (20-21% growth), revenue $127-129 million, adjusted EBITDA $26-28 million (21-22% margin).

• FX headwinds due to shekel strengthening against the US dollar.
• Integration risks associated with acquisitions such as Keryllium and SCG Canada.

Q: Congrats on solid year and a strong '26 guide. Maybe first on the acquisitions. I mean, kind of announced SCG Canada expecting to close kind of two deals in quick succession...

A: Thomas E. Hogan states SCG Canada is a small, market-leading drone forensic solution, with good spacing between acquisitions and low complexity.

Q: Hi, good morning, and let me echo my congratulations as well. I wanted to start out with maybe a little bit more color on the investments that you made to extend your mobile forensics leadership...

A: Thomas E. Hogan explains investments in internal research and partnerships to maintain leadership in Android and iOS, expected to drive growth in unlock access and insights.

Q: And then just in terms of your comments around the U.S. Federal government spending environment...

A: Marcus Jewell discusses pent-up demand in defense, intelligence, border security, and upcoming events like the FIFA World Cup, citing confidence in growth due to macro use cases and multi-year budgets.

Q: Thank you. Good good afternoon, everybody. Congrats on solid 2025 completion. Tom, maybe just for clarification, I've been getting some emails from investors...

A: Thomas E. Hogan clarifies SCG Canada has a low single-digit ARR run rate, price paid in $15-20 million range, and strong growth potential.

Q: Great. Thanks for taking the questions. Congrats on that free cash flow margin in particular. Tom, on the AI side...

A: Thomas E. Hogan talks about AI driving productivity, innovation center developing agentic applications, and monetization efforts in progress.

Q: Great. Thanks for taking the questions here, guys, and I'll echo the congratulations on the strong finish to the year. I wanted to come back to the insights conversions and the unlocks for a second...

A: David Barter explains insights conversions follow deal seasonality and unlocks will ramp from Q2, with visibility into these areas informing guidance.

Q: Great. Thank you for taking the question. And congrats on the results. Great to see the stabilization, particularly in the Fed. Maybe, Dan, if I could if I could maybe have you unpack a little bit of the commentary you had on the guidance...

A: David Barter discusses tighter ARR and revenue ranges due to improved forecast accuracy and reliance on customer base motion and expirations.

Q: Yes, Tom, I wanted to dive a layer deeper on your comments regarding AI. Curious to know, in your conversations with customers...

A: Thomas E. Hogan explains AI is a tailwind for Cellebrite due to unique data intimacy and domain expertise, with AI enhancing forensic capabilities and customer adoption.