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Mar 31

Cellebrite Q1 2025 Earnings Report

Cellebrite reported strong Q1 2025 results with 20% revenue growth and a significant improvement in profitability.

Key Takeaways

Cellebrite saw solid revenue growth driven by a 21% increase in subscription revenue, alongside improved profitability and strong ARR momentum.

Revenue grew 20% year-over-year to $107.5M.

ARR reached $408M, a 23% increase.

Adjusted EBITDA margin expanded to 22%.

GAAP net income improved to $17.4M from a prior loss.

Total Revenue
$108M
Previous year: $89.6M
+20.1%
EPS
$0.1
Previous year: $0.08
+25.0%
Annual Recurring Revenue
$408M
Previous year: $332M
+23.0%
Net Retention Rate
121%
Gross Margin
83.7%
Gross Profit
$90.1M
Previous year: $76.3M
+18.0%
Cash and Equivalents
$90.5M
Previous year: $277M
-67.3%
Free Cash Flow
$20.9M
Previous year: $9.82M
+112.7%
Total Assets
$710M
Previous year: $529M
+34.2%

Cellebrite

Cellebrite

Cellebrite Revenue by Segment

Forward Guidance

Cellebrite expects continued top-line growth and margin expansion, with ARR and adjusted EBITDA targets unchanged, though full-year revenue expectations were revised slightly due to lower one-time revenue forecasts.

Positive Outlook

  • ARR forecast raised to $480M–$495M for FY2025.
  • Q2 ARR guidance in the range of $416M–$426M.
  • Q2 adjusted EBITDA expected between $26M–$28M.
  • Full-year adjusted EBITDA maintained at $113M–$123M.
  • Focus on global diversification and integrated portfolio expansion.

Challenges Ahead

  • Full-year revenue guidance slightly reduced.
  • Lower anticipated one-time professional services revenue.
  • U.S. Federal spending environment remains constrained.
  • Increased reliance on second-half bookings for FY targets.
  • Operating margin still trails non-GAAP levels due to costs.

Revenue & Expenses

Visualization of income flow from segment revenue to net income