EX-99.1 2 ea026501001ex99-1_cellebrite.htm PRESS RELEASE TITLED "CELLEBRITE ANNOUNCES THIRD-QUARTER 2025 RESULTS"

Exhibit 99.1

 

 

Cellebrite Announces Third-Quarter 2025 Results

 

ARR grew 19% to $439.8 million; Revenue grew 18% to $126.0 million

 

Net income of $20.2 million supports non-GAAP net income of $36.9 million and

adjusted EBITDA of $37.7 million, 29.9% adjusted EBITDA margin

 

TYSONS CORNER, VA and PETAH TIKVA, ISRAEL, November 12, 2025 – Cellebrite (NASDAQ: CLBT), a global leader in premier Digital Investigative solutions for the public and private sectors, today announced financial results for the three and nine months ending September 30, 2025.

 

“Cellebrite once again delivered a balanced and solid performance,” stated Thomas E. Hogan, Cellebrite’s CEO. “We exceeded the high end of our prior adjusted EBITDA guidance with revenue at the high end of expectations and ARR at the midpoint. Our execution reflects the resilience, operating leverage and importance of our solutions to public safety around the globe. We were also encouraged by the performance of our U.S. Federal business in the quarter which delivered meaningful expansion of business with several marquee clients. We remain enthusiastic about our prospects for renewed growth in this sector in 2026 as budgeting begins to flow, the government reopens, and as we achieve full cloud authorization through our sponsorship with the Department of Justice. Beyond our U.S. Federal business, we are similarly optimistic about the pending expansion of our portfolio driven through a powerful combination of organic product development, partnerships, and the close of our Corellium acquisition later this quarter.”

 

Third-Quarter Financial Highlights

 

Revenue of $126.0 million, up 18% year-over-year

 

Subscription revenue of $112.7 million, up 21% year-over-year

 

Annual Recurring Revenue (ARR) of $439.8 million, up 19% year-over-year

 

Recurring revenue dollar-based net retention rate of 117%

 

GAAP gross profit and gross margin of $105.7 million and 83.9%, respectively; Non-GAAP gross profit and gross profit margin of $106.5 million and 84.5%, respectively

 

GAAP net income of $20.2 million; Non-GAAP net income of $36.9 million

 

GAAP diluted earnings per share of $0.08; Non-GAAP diluted earnings per share of $0.14

 

Adjusted EBITDA and Adjusted EBITDA margin of $37.7 million and 29.9%, respectively

 

 

 

 

Recent Business Highlights

 

Innovation

 

On October 15, 2025, Cellebrite announced its Autumn 2025 Release, evolving and advancing its Digital Investigation Platform with new integrations and powerful new capabilities that span from collection and review to advanced AI-powered analysis.

 

oA major highlight of the Autumn 2025 Release was the expanded and reimagined Guardian suite. Cellebrite unveiled its plans for the new Guardian Investigate solution, which is scheduled for general availability in early 2026. Guardian Investigate is a SaaS-based investigative solution that uses agentic AI to analyze multiple evidence types such as mobile data, call detail records, open-source intelligence and case files, along with the requisite workflows to support seamless collaboration.

 

oThe announcement also included ongoing enhancements to Cellebrite’s flagship digital forensics solution, Inseyets, with expanded access to Android and iOS devices that enhance digital evidence collection and review, plus the addition of field-ready workflows. These enhancements reflect Cellebrite’s ongoing investment in internally developed capabilities and third-party technology relationships.

 

oIn addition to other notable innovations for Inseyets, Guardian and Pathfinder, Cellebrite also promoted the availability of Corellium’s powerful Arm-based mobile virtualization offerings, further complementing and expanding Cellebrite’s value proposition for digital intelligence solutions.

 

Leadership

 

On October 30, 2025, Cellebrite announced that Holly Windham was appointed General Counsel and Chief Compliance Officer. Windham brings extensive legal leadership experience for growth-oriented technology companies with deep expertise spanning software, cloud platforms, cybersecurity, data privacy and public sector contracting. She will lead all legal and compliance matters for Cellebrite, including ongoing efforts regarding the appropriate use of the Company’s technology around the globe.

 

Annual General Meeting & Corporate Governance

 

On September 19, 2025, Cellebrite held its 2025 Annual General Meeting of Shareholders (the “Meeting”). As subsequently disclosed, shareholders approved all of the proposals brought forth during the Meeting by the respective requisite majority in accordance with the Israeli Companies Law, 5759-1999, and the Company’s articles of association, as described in the Proxy Statement which was furnished to the U.S. Securities and Exchange Commission on August 15, 2025, and sent to shareholders in connection with the Meeting. As previously disclosed, Elly Keinan, a Cellebrite director since 2020, concluded his service on the Cellebrite Board of Directors immediately following the Meeting, consistent with his decision to not to stand for re-election as a director and pursue other interests unrelated to Cellebrite.

 

Go-to-Market

 

On October 28, 2025, Cellebrite announced that Terry Crews will headline the Company’s C2C User Summit 2026 – a premier digital investigation and intelligence industry event attended by hundreds of public safety and private sector professionals at the Washington, D.C. Marriott Marquis on April 13-17, 2026. Crews, the host of the popular America’s Got Talent television show, is a former NFL player, an artist and actor as well as an avid supporter of organizations that combat human trafficking, sexual assault and harassment.

 

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Supplemental financial information can be found on the Investor Relations section of our websiteat https://investors.cellebrite.com/financial-information/quarterly-results.

 

Financial Outlook

 

David Barter, Cellebrite’s CFO, commented, “Strong demand from customers within our U.S. state and local, and Latin America segments helped drive 21% growth in total subscription-based revenue. Our updated 2025 targets underpin our expectation for a free cash flow margin of approximately 30% for the full year. As we advance our 2026 planning activities, we are increasingly excited about the opportunity we see to drive durable top-line growth, drive incremental gains in profitability and generate low 30% free cash flow margins as we build greater scale and expand our wallet share with existing customers worldwide.”

 

Cellebrite’s fourth-quarter and full-year 2025 expectations do not incorporate any anticipated contribution associated with the pending acquisition of Corellium, Inc. The Company’s financial expectations are as follows:

 

    Fourth-Quarter 2025 Expectations   Full-Year 2025 Expectations
    (as of 11/12/25)   (as of 11/12/25)
ARR     $460 million - $475 million
Annual Growth     16% - 20%
Revenue   $123 million - $128 million   $470 million - $475 million
Annual Growth   13% - 17%   17% - 18%
Adjusted EBITDA   $35 million - $38 million   $124 million - $127 million
Adjusted EBITDA margin   28% - 30%   26% - 27%

 

Conference Call Information

 

Cellebrite will host a live conference call and webcast later today to review the Company’s third-quarter 2025 financial results and discuss its full-year 2025 outlook. Pertinent details include:

 

Date:   Wednesday, November 12, 2025
Time:   5:00 p.m. ET
Call-In Number:   203-518-9814 / 800-274-8461
Conference ID:   CLBTQ325
Event URL:   https://investors.cellebrite.com/events/event-details/cellebrite-q3-2025-financial-results-conference-call-webcast
Webcast URL:   https://edge.media-server.com/mmc/p/sc8377ap/

 

In conjunction with the conference call and webcast, historical financial tables and supplemental data will be available on the quarterly results section of Company’s investor relations website at https://investors.cellebrite.com/financial-information/quarterly-results.

 

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Non-GAAP Financial Information and Key Performance Indicators

 

This press release includes non-GAAP financial measures. Cellebrite believes that the use of non-GAAP cost of revenue, non-GAAP gross profit, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, non-GAAP EPS and Adjusted EBITDA is helpful to investors. These measures, which the Company refers to as its non-GAAP financial measures, are not prepared in accordance with GAAP.

 

The Company believes that the non-GAAP financial measures provide a more meaningful comparison of its operational performance from period to period, and offer investors and management greater visibility into the underlying performance of its business:

 

Share-based compensation expenses utilize varying available valuation methodologies, subjective assumptions and a variety of equity instruments that can impact a company’s non-cash expenses;

 

Acquired intangible assets are valued at the time of acquisition and are amortized over an estimated useful life after the acquisition;

 

Acquisition-related expenses and executive severance expenses relate to the cash component of contractual severance due to our former CEO and CFO, all of which are unrelated to current operations and neither are comparable to the prior period nor predictive of future results;

 

To the extent that the above adjustments have an effect on tax (income) expense, such an effect is excluded in the non-GAAP adjustment to net income;

 

Tax expense, depreciation and amortization expense vary for many reasons that are often unrelated to our underlying performance and make period-to-period comparisons more challenging; and

 

Financial instruments are remeasured according to GAAP and vary for many reasons that are often unrelated to the Company’s current operations and affect financial income.

 

Free cash flow is calculated as net cash provided by or used in operating activities less purchases of property and equipment. We believe that free cash flow is a useful indicator of liquidity that provides information to management and investors about the amount of cash provided by or used in our operations that, after the investments in property and equipment, can be used for strategic initiatives.

 

Each of our non-GAAP financial measures is an important tool for financial and operational decision making and for evaluating our own operating results over different periods of time. The non-GAAP financial measures do not represent our financial performance under U.S. GAAP and should not be considered as alternatives to operating income or net income or any other performance measures derived in accordance with GAAP. Non-GAAP measures should not be considered in isolated from, or as an alternative to, financial measures determined in accordance with GAAP. Non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in our industry, as other companies in our industry may calculate non-GAAP financial results differently, particularly related to non-recurring, unusual items. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, and exclude expenses that may have a material impact on our reported financial results. Further, share-based compensation expense has been, and will continue to be for the foreseeable future, significant recurring expenses in our business and an important part of the compensation provided to our employees. In addition, the amortization of intangible assets is expected recurring expense over the estimated useful life of the underlying intangible asset and acquisition-related expenses will be incurred to the extent acquisitions are made in the future. Furthermore, foreign exchange rates may fluctuate from one period to another, and the Company does not estimate movements in foreign currencies.

 

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A reconciliation of each of these non-GAAP financial measures to their most comparable GAAP measure is set forth in a table included at the end of this press release, which is also available on our website at https://investors.cellebrite.com.

 

In regard to forward-looking non-GAAP guidance, we are not able to reconcile the forward-looking Adjusted EBITDA measure to the closest corresponding GAAP measure without unreasonable efforts because we are unable to predict the ultimate outcome of certain significant items including, but not limited to, fair value movements, share-based payments for future awards, tax expense, depreciation and amortization expense, and certain financing and tax items.

 

This press release also includes key performance indicators, including annual recurring revenue and dollar-based retention rate.

 

Annual recurring revenue (“ARR”) is defined as the annualized value of active term-based subscription license contracts and maintenance contracts related to perpetual licenses in effect at the end of that period. Subscription license contracts and maintenance contracts for perpetual licenses are annualized by multiplying the revenue of the last month of the period by 12. The annualized value of contracts is a legal and contractual determination made by assessing the contractual terms with our customers. The annualized value of maintenance contracts is not determined by reference to historical revenue, deferred revenue or any other GAAP financial measure over any period. ARR is not a forecast of future revenues, which can be impacted by contract start and end dates and renewal rates.

 

Dollar-based net retention rate (“NRR”) is calculated by dividing customer recurring revenue by base revenue. We define base revenue as recurring revenue we recognized from all customers with a valid license at the last quarter of the previous year period, during the four quarters ended one year prior to the date of measurement. We define our customer revenue as the recurring revenue we recognized during the four quarters ended on the date of measurement from the same customer base included in our measure of base revenue, including recurring revenue resulting from additional sales to those customers.

 

References to Websites and Social Media Platforms

 

References to information included on, or accessible through, websites and social media platforms do not constitute incorporation by reference of the information contained at or available through such websites or social media platforms, and you should not consider such information to be part of this press release.

 

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Caution Regarding Forward Looking Statements

 

This document includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward looking statements may be identified by the use of words such as “forecast,” “intend,” “seek,” “target,” “anticipate,” “will,” “appear,” “approximate,” “foresee,” “might,” “possible,” “potential,” “believe,” “could,” “predict,” “should,” “could,” “continue,” “expect,” “estimate,” “may,” “plan,” “outlook,” “future” and “project” and other similar expressions that predict, project or indicate future events or trends or that are not statements of historical matters. Such forward-looking statements include, but are not limited to, estimated financial information for the fourth quarter of 2025 and for fiscal year 2025 and certain statements such as the timing of the closing of the acquisition of Corellium, the availability of Cellebrite’s Guardian Investigate product and including those statements with respect to 2025 revenue and annual recurring revenue, profitability, earnings and free cash flow as well as commentary associated with future performance, strategies, prospects, and other aspects of Cellebrite’s business are based on current expectations that are subject to risks and uncertainties. A number of factors could cause actual results or outcomes to differ materially from those indicated by such forward-looking statements. These factors include, but are not limited to: Cellebrite’s ability to keep pace with technological advances and evolving industry standards; Cellebrite’s material dependence on the purchase, acceptance and use of its solutions by law enforcement and government agencies; real or perceived errors, failures, defects or bugs in Cellebrite’s digital investigation solutions; Cellebrite’s failure to maintain the productivity of sales and marketing personnel, including relating to hiring, integrating and retaining personnel; intense competition in all of Cellebrite’s markets; the inadvertent or deliberate misuse of Cellebrite’s solutions; failure to manage its growth effectively; Cellebrite’s ability to introduce new solutions and add-ons; Cellebrite’s dependency on its customers renewing their subscriptions and purchasing new subscriptions; the low volume of business Cellebrite conducts via e-commerce; risks associated with the use of artificial intelligence; the risk of requiring additional capital to support the growth of its business; risks associated with Cellebrite’s dependency on third parties for supplying components or services and with higher costs or unavailability of materials used to create its hardware product components; lengthy sales cycle for some of Cellebrite’s solutions; near term declines in new or renewed agreements; risks associated with inability to recruit, train and retain qualified personnel and senior management; the security of Cellebrite’s operations and the integrity of its software solutions against cyber-attacks, information technology system breaches or disruptions; risks associated with the negative publicity related to Cellebrite’s business and use of its products; risks related to Cellebrite’s intellectual property; the regulatory constraints to which Cellebrite is subject; risks associated with Cellebrite’s operations in Israel, including the ongoing Israel-Hamas war, the increased tension between Israel and Iran and its proxies, including the ongoing hostilities between Israel and Hezbollah, and the risk of a greater regional conflict; risks associated with different corporate governance requirements applicable to Israeli companies and risks associated with being a foreign private issuer and an emerging growth company; market volatility in the price of Cellebrite’s shares; changing tax laws and regulations; risks associated with joint, ventures, partnerships and strategic initiatives; risks associated with Cellebrite’s significant international operations, including due to fluctuations in foreign currency exchange rates, rising global inflation and exposure to regions subject to political or economic instability; risks associated with Cellebrite’s failure to comply with anti-corruption, trade compliance, anti-money-laundering and economic sanctions laws and regulations; risks relating to the adequacy of Cellebrite’s existing systems, processes, policies, procedures, internal controls and personnel for Cellebrite’s current and future operations and reporting needs; and other factors, risks and uncertainties set forth in the section titled “Risk Factors” in Cellebrite’s annual report on Form 20-F filed with the SEC on March 18, 2025, and in other documents filed by Cellebrite with the U.S. Securities and Exchange Commission (“SEC”), which are available free of charge at www.sec.gov. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made, in this communication or elsewhere. Cellebrite undertakes no obligation to update its forward-looking statements, whether as a result of new information, future developments or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws.

 

About Cellebrite

 

Cellebrite’s (Nasdaq: CLBT) mission is to enable its global customers to protect and save lives by enhancing digital investigations and intelligence gathering to accelerate justice in communities around the world. Cellebrite’s AI-powered Digital Investigation Platform enables customers to lawfully access, collect, analyze and share digital evidence in legally sanctioned investigations while preserving data privacy. Thousands of public safety organizations, intelligence agencies, and businesses rely on Cellebrite’s digital forensic and investigative solutions—available via cloud, on-premises, and hybrid deployments—to close cases faster and safeguard communities. To learn more, visit us at www.cellebrite.com and https://investors.cellebrite.com and find us on social media @Cellebrite.

 

Contacts:

 

Investors Relations

Andrew Kramer

Vice President, Investor Relations

investors@cellebrite.com

+1 973.206.7760

 

Media
Victor Cooper

Sr. Director of Corporate Communications + Content Operations

Victor.cooper@cellebrite.com

+1 404.804.5910

 

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Cellebrite DI Ltd.

Third-Quarter 2025 Results Summary

(U.S Dollars in thousands)

 

   For the three months ended   For the nine months ended 
   September 30,   September 30, 
   2025   2024   2025   2024 
                 
Revenue   126,029    106,858    346,854    292,154 
Gross profit   105,715    91,414    291,373    247,185 
Gross margin   83.9%   85.5%   84.0%   84.6%
Operating income   18,990    19,445    45,675    41,179 
Operating margin   15.1%   18.2%   13.2%   14.1%
Net income (loss)   20,189    (207,093)   57,065    (302,276)
Cash flow from operating activities   33,272    41,650    86,733    66,204 
                     
Non-GAAP Financial Data:                    
Operating income   35,970    29,506    84,165    65,191 
Operating margin   28.5%   27.6%   24.3%   22.3%
Net income   36,860    31,847    93,812    71,638 
Adjusted EBITDA   37,739    31,334    89,300    70,584 
Adjusted EBITDA margin   29.9%   29.3%   25.7%   24.2%

 

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Cellebrite DI Ltd.

Condensed Consolidated Balance Sheets

(U.S. Dollars in thousands)

 

   September 30,   December 31, 
   2025   2024 
Assets        
Current assets        
Cash and cash equivalents  $281,361   $191,659 
Short-term deposits   127,216    153,746 
Marketable securities   117,135    101,818 
Trade receivables (net of allowance for credit losses of $533 and $594 as of September 30, 2025 and December 31, 2024, respectively)   104,196    82,358 
Prepaid expenses and other current assets   20,812    23,246 
Contract acquisition costs   9,034    5,827 
Inventories   8,648    8,939 
Total current assets   668,402    567,593 
           
Non-current assets          
Other non-current assets   6,289    7,682 
Marketable securities   69,580    36,601 
Deferred tax assets, net   12,727    11,072 
Property and equipment, net   22,533    16,995 
Operating lease right-of-use assets, net   16,267    10,604 
Intangible assets, net   9,807    11,306 
Goodwill   28,714    28,714 
Total non-current assets   165,917    122,974 
Total assets  $834,319   $690,567 
           
Liabilities and shareholders’ equity          
Current Liabilities          
Trade payables  $11,136   $11,077 
Other accounts payable and accrued expenses   62,486    63,330 
Deferred revenues   239,677    216,970 
Operating lease liabilities   3,618    4,125 
Total current liabilities   316,917    295,502 
           
Long-term liabilities          
Other long-term liabilities   7,510    6,954 
Deferred revenues   44,386    45,247 
Operating lease liabilities   17,821    6,844 
Total long-term liabilities   69,717    59,045 
Total liabilities   386,634    354,547 
           
Shareholders’ equity          
Share capital   *)   *)
Additional paid-in capital   553,111    498,883 
Treasury share, NIS 0.00001 par value; 41,776 ordinary shares   (85)   (85)
Accumulated other comprehensive income   2,459    2,086 
Accumulated deficit   (107,800)   (164,864)
Total shareholders’ equity   447,685    336,020 
Total liabilities and shareholders’ equity  $834,319   $690,567 

 

*)Less than 1 USD

 

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Cellebrite DI Ltd.

Condensed Consolidated Statements of Income

(U.S Dollars in thousands, except share and per share data)

 

   For the three months ended   For the nine months ended 
   September 30,   September 30, 
   2025   2024   2025   2024 
                 
Revenue:                
Subscription services  $84,195   $69,339   $241,697   $197,180 
Term-license   28,531    24,038    69,819    60,787 
Other non-recurring   5,504    3,938    13,207    10,992 
Professional services    7,799    9,543    22,131    23,195 
Total revenue   126,029    106,858    346,854    292,154 
                     
Cost of revenue:                    
Subscription services   10,005    6,651    26,959    18,848 
Other non-recurring   4,791    3,415    11,290    11,335 
Professional services   5,518    5,378    17,232    14,786 
Total cost of revenue   20,314    15,444    55,481    44,969 
                     
Gross profit  $105,715   $91,414   $291,373   $247,185 
                     
Operating expenses:                    
Research and development   28,124    25,926    84,012    72,816 
Sales and marketing   38,800    32,486    116,253    96,865 
General and administrative   19,801    13,557    45,433    36,325 
Total operating expenses  $86,725   $71,969   $245,698   $206,006 
                     
Operating income  $18,990   $19,445   $45,675   $41,179 
Financial income (expense), net   5,298    (223,982)   18,732    (337,060)
Income (loss) before tax   24,288    (204,537)   64,407    (295,881)
Tax expense   4,099    2,556    7,342    6,395 
Net income (loss)  $20,189   $(207,093)  $57,065   $(302,276)
                     
Earnings (losses) per share                    
Basic  $0.08   $(0.99)  $0.24   $(1.50)
Diluted  $0.08   $(0.99)  $0.23   $(1.50)
                     
Weighted average shares outstanding                    
Basic   243,508,803    208,705,089    240,394,282    201,488,572 
Diluted   249,719,713    208,705,089    249,357,070    201,488,572 
                     
Other comprehensive income:                    
Unrealized (loss) income on hedging transactions   (665)   102    1,492    (748)
Unrealized income on marketable securities   198    844    301    524 
Currency translation adjustments   287    (1,780)   (1,420)   (410)
Total other comprehensive (loss) income, net of tax   (180)   (834)   373    (634)
Total other comprehensive income (loss)  $20,009   $(207,927)  $57,438   $(302,910)

 

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Cellebrite DI Ltd.

Condensed Consolidated Statements of Cash Flow

(U.S Dollars in thousands, except share and per share data)

 

   For the three months ended   For the nine months ended 
   September 30,   September 30, 
   2025   2024   2025   2024 
                 
Cash flow from operating activities:                
Net income (loss)  $20,189   $(207,093)  $57,065   $(302,276)
Adjustments to reconcile net income to net cash provided by operating activities:                    
Share-based compensation and RSU’s   15,308    9,055    32,895    21,306 
Amortization of premium, discount and accrued interest on marketable securities   (488)   (736)   (2,213)   (2,038)
Depreciation and amortization   2,703    2,622    7,926    7,878 
Interest income from short-term deposits   (1,734)   (2,430)   (6,417)   (7,900)
Deferred tax assets, net   (51)   (634)   (1,824)   (2,202)
Remeasurement of Warrant liability       71,271        110,664 
Remeasurement of Restricted Sponsor Shares liability       37,906        65,889 
Remeasurement of Price Adjustment Shares liability       120,008        173,051 
Increase in trade receivables   (11,225)   (22,113)   (20,435)   (16,092)
Increase in deferred revenue   13,310    20,117    16,612    5,062 
Decrease (increase) in other non-current assets   398    589    1,393    (294)
Decrease in prepaid expenses and other current assets   336    3,334    3,068    6,086 
Changes in operating lease right-of-use assets   1,197    1,244    3,423    3,885 
Changes in operating lease liability   (892)   (1,019)   (2,603)   (3,561)
Decrease (increase) in inventories   882    (915)   348    236 
Increase (decrease) in trade payables   713    429    (499)   (1,162)
(Decrease) increase in other accounts payable and accrued expenses   (8,032)   9,184    (2,562)   5,864 
Increase in other long-term liabilities   658    831    556    1,808 
Net cash provided by operating activities   33,272    41,650    86,733    66,204 
                     
Cash flows from investing activities:                    
Purchases of property and equipment   (3,322)   (1,820)   (9,269)   (5,388)
Cash paid in conjunction with acquisitions, net of acquired cash       (2,748)       (2,748)
Purchase of Intangible assets               (904)
Investment in marketable securities   (12,057)   (13,428)   (195,203)   (112,710)
Proceeds from maturities of marketable securities   58,597    13,550    118,220    48,986 
Proceeds from sales of marketable securities           31,166     
Investment in short-term deposits   (15,000)   (46,000)   (99,000)   (168,000)
Redemption of short-term deposits   35,570    31,781    131,947    107,240 
Net cash provided by (used in) investing activities   63,788    (18,665)   (22,139)   (133,524)
                     
Cash flows from financing activities:                    
Exercise of options to shares   3,958    4,622    19,075    11,509 
Proceeds from Employee Share Purchase Plan   1,309    864    3,638    2,370 
Exercise of Warrants       53        53 
Redemption of Warrants       (11)       (11)
Net cash provided by financing activities   5,267    5,528    22,713    13,921 
                     
Net increase (decrease) in cash and cash equivalents   102,327    28,513    87,307    (53,399)
Net effect of Currency Translation on cash and cash equivalents   (189)   880    2,395    231 
Cash and cash equivalents at beginning of period   179,223    106,956    191,659    189,517 
Cash and cash equivalents at end of period  $281,361   $136,349   $281,361   $136,349 
                     
Supplemental cash flow information:                    
Income taxes paid (received)  $4,686   $1,348   $(3,387)  $3,905 
Non-cash activities                    
Operating lease liabilities arising from obtaining right-of-use assets  $   $1,616   $13,141   $1,831 
Reclassification and exercise of public and private Warrants  $   $164,770   $   $164,770 
Reclassification and release of Restricted Sponsor Shares  $   $113,136   $   $113,136 
Reclassification and issuance of Price Adjustment Shares  $   $254,766   $   $254,766 

 

10

 

 

Cellebrite DI Ltd.

Reconciliation of GAAP to Non-GAAP Financial Information

(U.S Dollars in thousands, except share and per share data)

 

   For the three months ended   For the nine months ended 
   September 30,   September 30, 
   2025   2024   2025   2024 
   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited) 
Cost of revenue  $20,314   $15,444   $55,481   $44,969 
Less:                    
Share-based compensation   828    559    2,405    1,652 
Acquisition-related costs               2 
Non-GAAP cost of revenue  $19,486   $14,885   $53,076   $43,315 

 

   For the three months ended   For the nine months ended 
   September 30,   September 30, 
   2025   2024   2025   2024 
   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited) 
Gross profit  $105,715   $91,414   $291,373   $247,185 
Share-based compensation   828    559    2,405    1,652 
Acquisition-related costs               2 
Non-GAAP gross profit  $106,543   $91,973   $293,778   $248,839 

 

   For the three months ended   For the nine months ended 
   September 30,   September 30, 
   2025   2024   2025   2024 
   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited) 
Operating expenses  $86,725   $71,969   $245,698   $206,006 
Less:                    
Share-based compensation   14,480    8,496    30,490    19,654 
Amortization of intangible assets   934    794    2,791    2,485 
Acquisition-related costs   164    212    2,230    219 
Executive severance costs   574        574     
Non-GAAP operating expenses  $70,573   $62,467   $209,613   $183,648 

 

   For the three months ended   For the nine months ended 
   September 30,   September 30, 
   2025   2024   2025   2024 
   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited) 
Operating income  $18,990   $19,445   $45,675   $41,179 
Share-based compensation   15,308    9,055    32,895    21,306 
Amortization of intangible assets   934    794    2,791    2,485 
Acquisition-related costs   164    212    2,230    221 
Executive severance costs   574        574     
Non-GAAP operating income  $35,970   $29,506   $84,165   $65,191 

 

11

 

 

Cellebrite DI Ltd.

Reconciliation of GAAP to Non-GAAP Financial Information

(U.S Dollars in thousands, except share and per share data)

 

   For the three months ended   For the nine months ended 
   September 30,   September 30, 
   2025   2024   2025   2024 
   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited) 
Net income (loss)  $20,189   $(207,093)  $57,065   $(302,276)
Share-based compensation   15,308    9,055    32,895    21,306 
Amortization of intangible assets   934    794    2,791    2,485 
Acquisition-related costs   164    212    2,230    221 
Tax (income) expense   (309)   (306)   (1,743)   298 
Finance expense from financial derivatives       229,185        349,604 
Executive severance costs   574        574     
Non-GAAP net income  $36,860   $31,847   $93,812   $71,638 
                     
Non-GAAP Earnings per share:                    
Basic  $0.15   $0.15   $0.39   $0.34 
Diluted  $0.14   $0.14   $0.37   $0.32 
                     
Weighted average shares outstanding:                    
Basic   243,508,803    208,705,089    240,394,282    201,488,572 
Diluted   256,157,437    226,882,633    253,798,919    215,424,847 

 

   For the three months ended   For the nine months ended 
   September 30,   September 30, 
   2025   2024   2025   2024 
   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited) 
Net income (loss)  $20,189   $(207,093)  $57,065   $(302,276)
Financial (income) expense, net   (5,298)   223,982    (18,732)   337,060 
Tax expense   4,099    2,556    7,342    6,395 
Share-based compensation   15,308    9,055    32,895    21,306 
Amortization of intangible assets   934    794    2,791    2,485 
Acquisition-related costs   164    212    2,230    221 
Depreciation expenses   1,769    1,828    5,135    5,393 
Executive severance costs   574        574     
Adjusted EBITDA  $37,739   $31,334   $89,300   $70,584 

 

   For the three months ended   For the nine months ended 
   September 30,   September 30, 
   2025   2024   2025   2024 
   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited) 
Net cash provided by operating activities  $33,272   $41,650   $86,733   $66,204 
Less:                    
Purchases of property and equipment   (3,322)   (1,820)   (9,269)   (5,388)
Free cash flow  $29,950   $39,830   $77,464   $60,816 
Free cash flow margin   23.8%   37.3%   22.3%   20.8%

 

 

12