Cellebrite (CLBT) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue grew 20% year-over-year to $107.5 million, driven by 21% subscription revenue growth and ARR expansion to $408 million, with adjusted EBITDA up 34% to $23.7 million (22% margin).

• Subscription revenue accounted for 89% of total revenue, with strong growth in Americas, Asia-Pacific, and LATAM, offset by softness in U.S. federal and EMEA.

• Over 30% of the install base migrated to Insights, on track for 50% by year-end; Guardian ARR grew over 100% year-over-year for the third consecutive quarter.

• Hosted a sold-out user conference with 700 attendees from 27 countries and launched the Digital Justice Awards.

• Announced new spring 2025 product release with cloud and AI-powered innovations, rebranding the platform as the Digital Investigation Platform.

Financial highlights

• ARR reached $408 million, up 23% year-over-year, with gross retention steady at 92%.

• Q1 revenue was $107.5 million, up 20% year-over-year, with subscription revenue at $95.8 million (21% growth), and 89% of revenue from subscriptions.

• Non-GAAP gross margin was 84.4%, down 130 bps year-over-year due to higher hosting and customer success costs.

• Adjusted EBITDA was $23.7 million (22% margin), up from 19.7% in Q1 2024.

• Non-GAAP net income was $26.2 million ($0.10 per diluted share), with free cash flow of $18.5 million.

• Cash, equivalents, and investments totaled $509.8 million at quarter-end, up $162.5 million year-over-year.

Outlook and guidance

• Q2 ARR expected at $416–$426 million (20–23% growth); Q2 revenue guidance of $110–$116 million (15–21% growth); Q2 adjusted EBITDA expected at $26–$28 million (~24% margin).

• Full-year 2025 ARR guidance maintained at $480–$495 million (21–25% growth); revenue guidance adjusted to $470–$485 million (17–21% growth); adjusted EBITDA at $113–$123 million (24–25% margin).

• Full-year 2025 revenue guidance range reduced by $10 million at the low end due to timing of new business and lower one-time professional services revenue.

• No change to full-year ARR and EBITDA guidance; majority of ARR and EBITDA expected in the second half, consistent with historical seasonality.