Cellebrite DI (CLBT) Q1 2025 earnings summary

Executive summary

• Achieved 23% year-over-year ARR growth and 20% revenue growth in Q1 2025, with adjusted EBITDA up 34% to $23.7 million and a 22% margin, reflecting strong operating leverage and disciplined cost management.

• Subscription revenue increased 21% year-over-year, now representing 89% of total revenue.

• Robust performance in Americas, Latin America, and Asia-Pacific offset by softness in U.S. federal and EMEA segments; global diversification and product range supported overall results.

• Continued strong adoption of Insights and Guardian solutions, with Guardian ARR growing over 100% year-over-year for the third consecutive quarter.

• Strategic focus on AI, cloud agility, intelligence, and defense sectors due to rising global demand and geopolitical factors; CEO search and leadership initiatives ongoing.

Financial highlights

• Q1 2025 ARR reached $408 million, up 23% year-over-year, with gross retention steady at 92%.

• Q1 revenue was $107.5 million, up 20% from prior year, driven by 21% growth in subscription revenue; 89% of total revenue from subscriptions.

• Non-GAAP gross margin was 84.4%, down 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 and cash/investments totaling $509.8 million at quarter end.

Outlook and guidance

• Q2 2025 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 from U.S. Federal vertical.

• Anticipates stronger second-half performance, especially in U.S. federal and EMEA, with majority of ARR and EBITDA typically generated in H2.