Cellebrite (CLBT) Q3 2025 earnings summary

Executive summary

• Achieved Q3 2025 revenue of $126 million, up 18% year-over-year, with ARR rising 19% to $440 million and subscription revenue up 21%, driven by strong U.S. state/local, Latin America, and public sector performance.

• Adjusted EBITDA grew 20% year-over-year to $38 million (29.9–30% margin), exceeding expectations.

• U.S. federal segment returned to growth, with key client expansions and optimism for further growth in 2026 as government budgets flow and cloud authorization is achieved.

• Announced acquisition of Corellium for up to $200 million to expand TAM and innovation in digital investigations, expected to close in Q4 2025.

• Launched Autumn 2025 Release, enhancing the Digital Investigation Platform and unveiling Guardian Investigate, an AI-powered SaaS solution.

Financial highlights

• Q3 ARR reached $440 million, up 19% year-over-year and 5% sequentially.

• Q3 revenue was $126 million, up 18% year-over-year, with 89% from subscription-based software.

• Gross profit was $106.5 million (84.5% margin); GAAP gross profit was $105.7 million (83.9% margin).

• Adjusted EBITDA was $37.7–$38 million (29.9–30% margin), up 20% year-over-year.

• Free cash flow for Q3 was $29.95–$30 million; trailing 12 months FCF $140.3 million (31% margin).

• Ended Q3 with $595 million in cash, cash equivalents, and investments; other reports show $483.8 million and $281.4 million.

Outlook and guidance

• Q4 ARR expected to grow sequentially in mid-single digits; full-year ARR outlook unchanged at $460–$475 million.

• Q4 revenue guidance: $123–$128 million; Q4 adjusted EBITDA: $35–$38 million (28–30% margin).

• Full-year 2025 revenue outlook raised to $470–$475 million (17–18% growth); adjusted EBITDA raised to $124–$127 million (26–27% margin).

• 2025 free cash flow margin expected at ~30%.

• Guidance does not include any contribution from the pending Corellium acquisition.