Cellebrite DI (CLBT) AI Stock Analysis

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Cellebrite DI

(NASDAQ:CLBT)

Rating:63Neutral

Price Target:

$17.50

▲(26.63% Upside)

Cellebrite DI's overall stock score is driven primarily by strong financial performance and positive earnings call highlights. However, technical analysis shows bearish signals, and valuation is impacted by net losses and the absence of a dividend yield. The company's growth outlook is positive, but current net profitability challenges and market technicals moderate the overall score.

Positive Factors

Product Development

Cellebrite is developing a more powerful digital twins tool with Corellium for law enforcement, enhancing its industry leadership in smartphone forensics.

Strategic Acquisition

Cellebrite's acquisition of Corellium for $170 million in cash broadens its total addressable market for both the public and private sectors.

Negative Factors

Financial Performance

Shares of Cellebrite are trading down 12% after the company reported mixed first-quarter results, with revenue below and EBITDA above consensus.

Revenue Guidance

The company lowered its full-year revenue guidance but reiterated its EBITDA guidance.

Cellebrite DI (CLBT) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$3.27B

Dividend YieldN/A

Average Volume (3M)1.46M

Price to Earnings (P/E)―

Beta (1Y)0.95

Revenue Growth22.04%

EPS Growth-65.97%

CountryUS

Employees1,167

SectorTechnology

Sector Strength94

IndustrySoftware - Infrastructure

Share Statistics

EPS (TTM)0.07

Shares Outstanding239,470,060

10 Day Avg. Volume1,364,817

30 Day Avg. Volume1,461,128

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.36

Enterprise Value/Revenue10.60

Enterprise Value/Gross Profit12.62

Enterprise Value/Ebitda63.06

Forecast

1Y Price Target

$23.25

Price Target Upside68.23% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering7

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 through the sale of its digital intelligence solutions, which include hardware, software, and service offerings tailored to different investigative needs. Key revenue streams include licensing fees for their software products, sales of digital forensics hardware such as data extraction devices, and ongoing service and maintenance contracts. The company also benefits from significant partnerships with law enforcement agencies and government bodies globally, which allows it to secure long-term contracts and recurring revenue streams. Additionally, Cellebrite offers training and consulting services, adding another layer to its revenue model.

Cellebrite DI Earnings Call Summary

Earnings Call Date:May 14, 2025

(Q1-2025)

% Change Since: -31.31%|

Next Earnings Date:Aug 14, 2025

Earnings Call Sentiment Neutral

Cellebrite showed strong growth in several key areas, including ARR and specific product lines like Guardian, and hosted successful events and product releases. However, challenges in the U.S. Federal and EMEA markets moderated some of the positive impacts. Despite these challenges, the company remains optimistic about future growth, particularly in the second half of the year.

Q1-2025 Updates

Positive Updates

Strong ARR and Revenue Growth

Cellebrite delivered a 23% year-on-year ARR growth, reaching $408 million, and a 20% increase in revenue to $107.5 million for the first quarter of 2025.

Significant Growth in Guardian Product

Guardian achieved its third consecutive quarter of over 100% ARR growth, reflecting strong adoption and interest in this product.

Successful User Conference and Product Release

Cellebrite hosted its first user conference with around 700 attendees and launched the Spring 2025 product release, featuring cloud and AI innovations.

U.S. State and Local, LATAM and Asia Pacific Growth

Cellebrite saw strong performance and momentum in the U.S. state and local, LATAM, and Asia Pacific regions.

Robust Financial Performance

The company achieved a 34% year-on-year growth in adjusted EBITDA, resulting in a 22% margin.

Negative Updates

U.S. Federal Market Challenges

There were modest shortfalls in the U.S. Federal segment due to spending constraints, impacting the company's revenue expectations.

EMEA Market Weakness

EMEA experienced a 15% ARR growth but faced challenges with order timing and spending headwinds.

Pressure on Professional Services Revenue

There was near-term pressure on one-time professional services revenue from U.S. federal agencies, contributing to adjusted revenue guidance.

Company Guidance

During the Cellebrite First Quarter 2025 Financial Results Conference Call, the company reported a strong 23% year-on-year growth in Annual Recurring Revenue (ARR), reaching $408 million, and a 34% increase in adjusted EBITDA, resulting in a 22% margin. The first quarter revenue amounted to $107.5 million, marking a 20% year-over-year increase, primarily driven by a 21% rise in subscription revenue. The gross retention rate held steady at 92%, with notable retention in the U.S. and Asia Pacific regions. Despite challenges in the U.S. Federal and EMEA sectors, the company remains optimistic about future growth, projecting second quarter ARR between $416 million to $426 million, and revenue of $110 million to $116 million. The full-year guidance remains unchanged, anticipating continued expansion, especially in the U.S. state and local, Latin America, and Asia Pacific markets. The firm highlighted an ongoing focus on strategic areas like Guardian and Pathfinder solutions, with Guardian achieving over 100% ARR growth for three consecutive quarters.

Cellebrite DI Financial Statement Overview

Summary

Cellebrite DI exhibits strong revenue growth and operational efficiency, but faces challenges with net profitability. The balance sheet is stable with low leverage, and cash flow generation is robust, supporting liquidity. Attention to improving net income will be crucial for enhancing financial health.

Income Statement

Positive

Cellebrite DI has shown positive revenue growth from 2024 to TTM, with a TTM revenue of $419.17M. Gross profit margin remains strong at 84.05%, but the net profit margin is negative due to a net loss of $194.235M, indicating profitability challenges. EBIT and EBITDA margins are positive, reflecting operational efficiency, but overall profitability is impacted by net losses.

Balance Sheet

Positive

The balance sheet reflects a solid equity position with a total stockholders' equity of $363.494M and a manageable debt-to-equity ratio of 0.03. The equity ratio is 51.20%, indicating a strong equity base in relation to total assets. However, net income losses have impacted return on equity, highlighting a need for improved profitability.

Cash Flow

Positive

Cellebrite DI has demonstrated strong operating cash flow, with a TTM figure of $143.008M, and a positive free cash flow of $132.18M. The operating cash flow to net income ratio is high due to the net loss, suggesting a disconnect between cash generation and accounting profits. Free cash flow growth is positive, which is a healthy sign for liquidity.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	401.20M	325.11M	270.65M	246.25M	194.91M
Gross Profit	338.61M	271.88M	219.91M	203.69M	157.03M
EBITDA	67.51M	-64.80M	10.24M	89.88M	16.95M
Net Income	-283.01M	-81.10M	120.81M	71.40M	5.78M
Balance Sheet
Total Assets	690.57M	532.88M	403.29M	339.78M	364.39M
Cash, Cash Equivalents and Short-Term Investments	447.22M	302.92M	183.62M	181.56M	237.64M
Total Debt	10.97M	14.13M	15.36M	0.00	0.00
Total Liabilities	354.55M	498.67M	329.43M	413.13M	300.58M
Stockholders Equity	336.02M	34.21M	73.86M	-73.35M	63.80M
Cash Flow
Free Cash Flow	121.56M	94.14M	11.49M	27.94M	60.33M
Operating Cash Flow	132.17M	102.06M	20.58M	36.05M	66.51M
Investing Cash Flow	-149.47M	-22.54M	-91.23M	45.23M	-6.45M
Financing Cash Flow	20.65M	21.77M	13.97M	-68.40M	-8.59M

Cellebrite DI Technical Analysis

Technical Analysis Sentiment

Negative

Last Price13.82

Price Trends

50DMA

15.31

Negative

100DMA

17.10

Negative

200DMA

18.81

Negative

Market Momentum

MACD

-0.47

Negative

RSI

35.00

Neutral

STOCH

23.45

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLBT, the sentiment is Negative. The current price of 13.82 is below the 20-day moving average (MA) of 14.22, below the 50-day MA of 15.31, and below the 200-day MA of 18.81, indicating a bearish trend. The MACD of -0.47 indicates Negative momentum. The RSI at 35.00 is Neutral, neither overbought nor oversold. The STOCH value of 23.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CLBT.

Cellebrite DI Peers Comparison

Overall Rating

UnderperformOutperform

Sector (69)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QLYS	75 Outperform	$4.74B	25.96	39.53%	―	9.69%	9.50%
VRNS	72 Outperform	$6.24B	―	-25.73%	―	14.29%	-14.42%
Sector *	69 Neutral	¥233.77B	14.28	7.64%	2.58%	9.19%	5.32%
S	64 Neutral	$5.73B	―	-26.98%	―	32.25%	20.56%
CLBT	63 Neutral	$3.27B	―	-115.35%	―	22.04%	-65.97%
TENB	60 Neutral	$3.67B	―	-12.60%	―	11.41%	33.76%
RPD	58 Neutral	$1.28B	49.65	164.75%	―	6.19%	―

* Technology Sector Average

Performance Comparison

CLBT

Cellebrite DI

13.82

0.58

4.38%

QLYS

Qualys

128.63

1.50

1.18%

VRNS

Varonis Systems

54.36

0.61

1.13%

RPD

Rapid7

19.82

-16.95

-46.10%

TENB

Tenable Holdings

29.42

-11.33

-27.80%

SentinelOne

16.67

-4.67

-21.88%

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.Date of analysis: Jul 16, 2025