Education
About Us
Working with TipRanks
Follow Us
Cellebrite DI (CLBT)
NASDAQ:CLBT
Top Page
Cellebrite DI
(NASDAQ:CLBT)
Select Model
Select Model
Rating:73Outperform
Price Target:
$17.00
▲(16.60% Upside)
Action:UpgradedDate:02/12/26
The score is driven primarily by strong cash flow and a strengthened, low-debt balance sheet, reinforced by upbeat FY2026 guidance for growth, profitability, and >30% free-cash-flow margins. This is tempered by weak technicals (price below key moving averages with negative MACD) and a premium P/E that heightens sensitivity to execution and federal/FedRAMP timing and FX risks.
Positive Factors
Cash generation & conservative balance sheet
Sustained, high free cash flow (34% FCF margin FY2025) and very low net debt provide durable financial flexibility. This supports organic R&D, FedRAMP investments, and disciplined M&A while insulating operations from short-term profit volatility and enabling reinvestment without levered funding.
Recurring ARR momentum and SaaS mix expansion
Double-digit ARR growth plus rapid SaaS/cloud expansion increases revenue predictability and higher-margin recurring streams. Strong Guardian growth and rising SaaS mix raise customer stickiness and upsell potential, improving long-term revenue visibility and durable margin expansion as cloud adoption deepens.
Strategic product and capability builds (Keryllium, drone forensics)
Acquiring ARM-virtualization tech (Keryllium) and adding drone-forensics capabilities broaden addressable market and strengthen technical differentiation. These inorganic additions enhance product moat, cross-sell potential, and long-term organic ARR by embedding unique forensic capabilities into core workflows.
Negative Factors
FedRAMP / U.S. federal timing risk
Lengthy FedRAMP/ATO timelines materially slow federal cloud adoption and Guardian penetration, creating a structural timing risk for a key customer vertical. Federal disruptions in 2025 caused a multi-point ARR headwind; delayed approvals can compress expected durable ARR expansion from government customers.
Historic earnings and return volatility
Prior years' sizeable net losses despite revenue growth indicate inconsistent cost control and episodic one-time items. This volatility raises execution risk for sustaining margins and makes forward cash/earnings forecasts sensitive to integration, FX swings, and federal timing, complicating long-term planning.
M&A cash outflow and near-term integration drag
Significant cash deployment for Keryllium and planned SCG tuck-in reduces near-term liquidity flexibility and introduced margin compression. Integration demands and short-term expense burdens can temper margin improvement and require execution to realize accretion, posing a sustained integration risk over months.
Cellebrite DI (CLBT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.64B
Dividend YieldN/A
Average Volume (3M)1.90M
Price to Earnings (P/E)58.2
Beta (1Y)0.71
Revenue Growth18.37%
EPS GrowthN/A
CountryUS
Employees1,167
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.08
Shares Outstanding249,439,820
10 Day Avg. Volume1,211,520
30 Day Avg. Volume1,898,721
Financial Highlights & Ratios
PEG Ratio-0.47
Price to Book (P/B)9.41
Price to Sales (P/S)9.58
P/FCF Ratio29.25
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue7.57
Enterprise Value/Gross Profit8.99
Enterprise Value/Ebitda43.04
Forecast
1Y Price Target
$20.67Price Target Upside41.77% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)0.39
Revenue Forecast (FY)$568.48M
Cellebrite DI Business Overview & Revenue Model
Company DescriptionCellebrite DI Ltd. develops solutions for legally sanctioned investigations. Its DI platform allows users to collect, review, analyze, and manage digital data across the investigative lifecycle with respect to legally sanctioned investigations and solutions are used in a various case, including child exploitation, homicide, anti-terror, border control, sexual crimes, human trafficking, corporate security, intellectual property theft, and civil litigation. The company's Universal Forensic Extraction Device solution addresses problems in accessing digital information, including complicated device locks, encryption barriers, deleted and unknown content, and other obstacles that can prevent critical evidence from coming to light. It also offers Seeker solution that provides the ability to analyze video footage; OSINT Analyze, a real-time deep dive solution used to analyze open-source information, such as the surface web, deep web, and the dark web; and Crypto Tracer, which analyzes blockchain transactions together with related data from an extensive list of sources to identify and categorize wallets, and transactions. The company serves federal and state and local agencies, as well as enterprise companies and service providers. It has operations in the United States, Germany, Singapore, Australia, Brazil, United Kingdom, France, Canada, Japan, and India. The company was incorporated in 1999 and is based in Petah Tikva, Israel. Cellebrite Mobile Synchronization Ltd. operates as a subsidiary of Sun Corporation.
How the Company Makes MoneyCellebrite generates revenue primarily through the sale of its software and hardware products, including digital extraction devices and analytics tools. The company employs a subscription model for its software services, which provides ongoing revenue through annual licenses and renewals. Additionally, Cellebrite benefits from training and support services offered to its clients, which further contribute to its revenue streams. Key partnerships with government agencies, law enforcement bodies, and enterprises enhance its market presence, while the increasing demand for digital forensics solutions in various sectors, including cybersecurity, also drives its earnings.
Cellebrite DI Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call conveys a predominantly positive outlook: the company reported healthy ARR, revenue, profitability and free cash flow expansion in 2025, demonstrated strong SaaS/cloud and Guardian growth, achieved above-target Insights conversion, completed the Keryllium acquisition and announced a strategic drone-forensics tuck-in. Management acknowledged transitory headwinds — U.S. federal disruptions earlier in 2025, FedRAMP timing, FX impacts, and near-term acquisition-related margin pressure — but presented a clear path to ARR reacceleration and durable FCF margins (>30%) in 2026 with conservative guidance that leaves upside from AI monetization and integration gains.Q4-2025 Updates
Positive Updates
Strong ARR Growth
ARR grew 21% to $481M in 2025 (includes Keryllium). Excluding Keryllium, ARR grew 17% year-over-year. Sequential ARR increased 6% over Q3 2025. Keryllium contributed $16.1M of ARR following a Dec 1 close.
Revenue and Profitability Expansion
Q4 revenue grew 18% to $128.8M (including ~ $1M from Keryllium); full-year revenue grew 19% to $475.7M. Q4 adjusted EBITDA was $38.3M, up 33% YoY with a 29.8% margin (expanded ~340 bps). Full-year adjusted EBITDA was $127.6M, or a 26.8% margin.
Very Strong Free Cash Flow and Balance Sheet
Free cash flow for FY2025 was $160M (34% FCF margin), a 30% increase vs. 2024 ($124M). Cash, cash equivalents and investments ended at $535M (up $52M despite $147M net cash used for Keryllium).
SaaS/Cloud and Guardian Momentum
SaaS/cloud ARR grew north of 50% and now represents 22% of total ARR. Guardian continued its trajectory with six straight quarters of >100% YoY growth and is becoming a core evidence repository for customers.
Insights Conversion & Forensics Leadership
Converted 55% of installed digital forensics base to Insights (above the 50% target). Investments in mobile research aim to extend Android leadership and reassert iOS leadership, with new capabilities expected to market within ~6 weeks.
Strategic Acquisitions and Product Expansion
Completed acquisition of Keryllium (ARM virtualization technology seen as industry-unique and accretive). Announced planned purchase of SCG Canada (drone-forensics leader) expected to close by end of Q1; SCG ARR run-rate is low single-digit millions, and enterprise purchase price expected ~$15–$20M.
Geographic and Solution Mix Strength
Geographic ARR growth: Americas +19%, EMEA +24%, Asia Pacific +23%. Higher-growth solutions (Pathfinder, Guardian, Keryllium) represented 14% of ARR at year-end 2025 with an expectation to approach ~20% by year-end 2026.
Positive 2026 Outlook and Rules of Performance
Initial FY2026 guidance calls for ARR $567–573M (+18–19%), revenue $565–571M (+19–20%), and adjusted EBITDA $149–155M (26–27% margin). Company expects FCF margins >30% in 2026 and signaled intent to target a combined 'rule of x' (ARR growth + FCF margin) in the 50+ range.
Negative Updates
U.S. Federal Segment Disruptions (2025 Headwind)
The U.S. federal unit experienced disruptions in 2025 and produced an approximately four-point headwind to ARR growth versus original plan; performance was roughly flat in 2025 but management expects reacceleration in 2026.
FedRAMP / ATO Delays and Dependency
Lengthy FedRAMP/ATO process (18+ months) constrained some federal market opportunity; while management expects FedRAMP Level 4 ATO imminently, timing created near-term uncertainty and delayed federal cloud/Guardian penetration.
Foreign Exchange Pressure
Strengthening Israeli shekel versus the USD created a material FX headwind that weighed on margins. Management cited more than a one-point (discussed as ~1–2 points) margin burden attributable to FX volatility in the near term.
Integration and Acquisition-Related Margin Impact
Keryllium added incremental costs that compressed margins by roughly one point in the near term; management expects absorption/leverage over the course of 2026 as top line expands.
Acquisition Cash Outflow
Net cash outflow of $147M was used to acquire Keryllium in December 2025, representing a near-term cash deployment despite ending cash balance growth; SCG acquisition priced ~$15–$20M will require additional cash and integration resources.
Conservative / Tighter Guidance Ranges and Unmonetized AI Upside
Management adopted a more conservative/tighter guidance posture (smaller ranges) and stated that potential AI-driven monetization (agentic applications) was not assumed in 2026 guidance, leaving upside dependent on future monetization decisions and market adoption.
Company Guidance
Cellebrite guided to full‑year 2026 ARR of $567–$573 million (18%–19% growth vs. FY25), revenue of $565–$571 million (19%–20% growth), and adjusted EBITDA of $149–$155 million (26%–27% margin); for Q1 it sees ARR of $491–$493 million (20%–21% growth), revenue of $127–$129 million (18%–20%) and adjusted EBITDA of $26–$28 million (21%–22% margin). Management expects free cash flow margins in excess of 30% for 2026, about 60% of adjusted EBITDA dollars in the back half of the year (H2 weighting), a reacceleration versus 2025’s ~17% organic ARR growth (FY25 ARR $481M, +21% incl. Keryllium; Keryllium ARR $16.1M), and emphasized tighter guidance ranges (≈$6M ARR spread vs. prior ~$15M) while targeting a rule‑of‑x in the upper‑40s with an objective of 50+.Cellebrite DI Financial Statement Overview
Summary
Strong cash generation (TTM operating cash flow ~$174M; free cash flow ~$160M, ~34% FY2025 FCF margin) and a conservative balance sheet (low debt vs. sizable equity) are major positives. Offsetting this is historically volatile net income/returns (notably 2023–2024 losses) despite steady multi-year revenue growth and consistently high gross margins.Income Statement
TTM (Trailing-Twelve-Months) shows strong profitability with ~84% gross margin and ~17% net margin, and revenue up ~4.3%. The multi-year top-line trend is solid (2020–TTM: ~$195M to ~$476M). However, earnings have been volatile—large net losses in 2023 and 2024 before returning to profitability in TTM—suggesting uneven cost/one-time item impacts despite consistently high gross margins.74
Positive
Balance Sheet
Leverage is very conservative in TTM, with low debt (~$22.7M) against sizable equity (~$484.3M), supporting financial flexibility. Asset and equity growth improved meaningfully versus prior years, and TTM return on equity is healthy (~19.6%). Key risk is historical equity/return volatility (including negative equity in 2021 and very weak returns in 2023–2024), which points to prior balance sheet instability that appears improved but is worth monitoring.82
Very Positive
Cash Flow
Cash generation is a standout: TTM operating cash flow (~$174M) and free cash flow (~$160M) are strong, with free cash flow up ~15%. Free cash flow conversion versus earnings is solid (free cash flow running at ~91% of net income in TTM), and cash flow has remained positive even during loss-making years, indicating resilient underlying cash profitability. The main weakness is variability over time (e.g., weaker cash generation relative to earnings in 2022).88
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 475.68M | 401.20M | 325.11M | 270.65M | 246.25M |
| Gross Profit | 400.50M | 338.61M | 271.88M | 219.91M | 203.69M |
| EBITDA | 78.35M | 67.51M | -64.80M | 130.10M | 89.47M |
| Net Income | 78.33M | -283.01M | -81.10M | 120.81M | 71.40M |
Balance Sheet | |||||
| Total Assets | 938.85M | 690.57M | 532.88M | 403.29M | 339.78M |
| Cash, Cash Equivalents and Short-Term Investments | 437.05M | 447.22M | 302.92M | 183.62M | 181.56M |
| Total Debt | 22.67M | 10.97M | 14.13M | 15.36M | 0.00 |
| Total Liabilities | 454.53M | 354.55M | 498.67M | 329.43M | 413.13M |
| Stockholders Equity | 484.32M | 336.02M | 34.21M | 73.86M | -73.35M |
Cash Flow | |||||
| Free Cash Flow | 155.73M | 121.56M | 94.14M | 11.49M | 27.94M |
| Operating Cash Flow | 168.96M | 132.17M | 102.06M | 20.58M | 36.05M |
| Investing Cash Flow | -268.25M | -149.47M | -22.54M | -91.23M | 45.23M |
| Financing Cash Flow | 29.64M | 20.65M | 21.77M | 13.97M | -68.40M |
Cellebrite DI Technical Analysis
Neutral
14.58
Price Trends
15.15
Negative
16.43
Negative
16.36
Negative
Market Momentum
-0.05
Negative
50.58
Neutral
35.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLBT, the sentiment is Neutral. The current price of 14.58 is above the 20-day moving average (MA) of 14.05, below the 50-day MA of 15.15, and below the 200-day MA of 16.36, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 50.58 is Neutral, neither overbought nor oversold. The STOCH value of 35.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CLBT.
Cellebrite DI Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $3.64B | 58.16 | 18.39% | ― | 18.37% | ― | |
69 Neutral | $1.09B | 50.99 | 5.95% | ― | 10.40% | ― | |
67 Neutral | $1.49B | 22.24 | 5.77% | 4.71% | 13.36% | ― | |
64 Neutral | $1.77B | 12.96 | 23.21% | 0.68% | 9.67% | 75.67% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $2.34B | -78.26 | -10.29% | ― | 11.05% | 45.23% | |
54 Neutral | $2.88B | -38.13 | -27.04% | ― | 11.37% | -34.44% |
* Technology Sector Average
CLBT
Cellebrite DI
14.58
-4.46
-23.42%
RDWR
Radware
25.11
2.49
11.01%
EVTC
Evertec
28.66
-8.24
-22.32%
VRNS
Varonis Systems
24.48
-17.06
-41.07%
TENB
Tenable Holdings
20.34
-15.79
-43.70%
TUYA
Tuya
2.28
-1.13
-33.04%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.