Cellebrite says its newer products are contributing more meaningfully to net new annual recurring revenue than they were a year ago as the company expands an AI-powered digital investigation platform that supports nearly 3 million legally sanctioned investigations annually.
More than 7,000 law enforcement agencies, defense and intelligence organizations, and enterprises use Cellebrite’s technology. The company says its software enables customers to accelerate nearly 3 million investigations each year while supporting sovereign security, mobile research, application security and broader digital investigative workflows.
Cellebrite is attempting to deepen those relationships with a growing portfolio of newer products. The company said offerings introduced this year, including Genesis, Guardian Investigate, CFID for drone forensics and Advanced Unlocks, are building customer adoption.
Genesis represents a particularly important part of the strategy. The purpose-built agentic AI solution officially launched on June 10, and Cellebrite achieved early monetization during Q2. The company said adoption and product enhancements have continued to progress since the start of the third quarter.
Cellebrite also recently signed its first significant FedRAMP deal for Guardian, its SaaS-based evidence management platform delivered through the Cellebrite Government Cloud. The win followed FedRAMP High Authorization for the cloud platform, with the U.S. Department of Justice serving as the authorizing agency.
Total annual recurring revenue reached $507.8 million in Q2, increasing 21% year-over-year. The recurring-revenue dollar-based net retention rate increased two percentage points sequentially to 117%, while total revenue increased 16% to $131.1 million.
Subscription revenue increased 16% to $119.5 million. Cellebrite generated GAAP net income of $6.4 million and non-GAAP net income of $29.7 million, while adjusted EBITDA reached $31.8 million with a 24.2% margin. Trailing 12-month free cash flow was $144.2 million.
Despite the product momentum, management acknowledged that Q2 ARR fell short of expectations because of longer sales cycles and less expansion from Inseyets conversions than anticipated. Cellebrite has taken a more measured view of near-term contributions from newer products while continuing to expect their importance to grow over time.
Cellebrite consequently lowered its full-year ARR and revenue outlook but raised its adjusted EBITDA target. The company now expects 2026 ARR of $550 million to $560 million, revenue of $555 million to $561 million and adjusted EBITDA of $153 million to $159 million, representing an adjusted EBITDA margin of approximately 28%.
The results were announced alongside a leadership transition in which Shiven Ramji succeeded Thomas E. Hogan as CEO. Ramji joined Cellebrite as President, Products and Technology in May and is also being appointed to the company’s board.
KEY QUOTES:
“Although we didn’t deliver against our second-quarter 2026 ARR target, we have continued to make tangible progress in executing Cellebrite’s product strategy, with newer products contributing more meaningfully to net new ARR than a year ago, and we expect that momentum to continue into the second half of the year. While we’ve lowered our full-year ARR expectations, along with the resulting impact on our revenue target, we have raised this year’s original adjusted EBITDA target and anticipate delivering a stronger second-half free cash flow performance even as we continue funding the investments critical to driving durable, long-term growth.”
David Barter, CFO of Cellebrite
“We are making tangible progress with our newer products, which further supports our confidence in the long-term opportunity. At the same time, we are taking a more measured view of that contribution in the near term, given elongated sales cycles and the timing of additional new product introductions anticipated for later this year.”
Shiven Ramji, CEO of Cellebrite
