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Image source: The Motley Fool. Thursday, Aug. 13, 2026 at 8:30 a.m. ET Chairman of the Board - Adam Clammer Chief Executive Officer - Shiven Ramji Chief Financial Officer - David Barter Chief Revenue Officer - Marcus Jewell Operator: Welcome to the Cellebrite Second Quarter 2026 Financial Results Conference Call. [Operator Instructions] I would now like to turn the call over to your first speaker today, Mr. Andrew Kramer. Mr. Kramer, the floor is yours. Andrew Kramer: Thank you very much, operator, and good morning, everybody. Welcome to Cellebrite's Second Quarter 2026 Financial Results Call. I'm joined this morning by our primary speakers, Adam Clammer, Cellebrite's Chairman of the Board; Shiv Ramji, Cellebrite's new CEO; and David Barter, Cellebrite's CFO. Shiv, Dave and Marcus Jewell, our CRO, will participate on our Q&A session. This call is being recorded, and a replay of the recording will be made available on our website shortly after the call, along with a copy of the transcript. Please note that today's press release and financial statements, including GAAP to non-GAAP reconciliations are available on the Investor Relations website at investors.cellebrite.com. In addition to the press release, we posted a separate investor presentation that provides an overview of the business and our recent financial performance. I'd like to remind everybody who's listening on the webcast that the slide in your webcast viewer is a placeholder only. There are no actual slides to accompany the prepared remarks. We also published our historical financial information and supplemental data for the first 2 quarters of 2026, each quarter of 2025, along with the full year 2024 and 2023 on our Investor Relations website. Additionally, unless stated otherwise, our discussion of our second quarter 2026 financial metrics as well as the financial metrics provided in our outlook will be done on a non-GAAP basis only, and all historical comparisons are with the comparable periods of 2025. I'd like to remind you that today's discussion will contain forward-looking statements, including, but not limited to, the company's business operations and financial performance. All forward-looking statements are subject to risks and uncertainties and other factors that could cause matters expressed or implied by those forward-looking statements not to occur. Actual results could also differ materially from historical results and/or from forecasts. Some of these forward-looking statements are discussed under the heading Risk Factors and elsewhere in the company's annual report on Form 20-F filed with the SEC on March 3, 2026. The company does not undertake to update any forward-looking statements to reflect future events or circumstances. And with all that being said, I'd now like to turn the call over to Adam Clammer. Adam Clammer: Thank you, Andy, and good morning, everyone. As you saw in this morning's release, our Board has appointed Shiv Ramji as Chief Executive Officer, effective today. Before I go further, I want to take a moment on behalf of the entire Board to thank Tom Hogan. Tom joined Cellebrite 3 years ago as Executive Chairman, and we're incredibly appreciative of his impact. Since taking the reins as CEO last year, we further accelerated our platform strategy, expanded into new markets and adjacencies through both organic development and acquisition and built a stronger foundation that positions this company well for the next chapter. We're very grateful for everything he's contributed and pleased that he'll continue to support Shiv and the Board as an adviser. I know many of you will ask why Shiv and why now? And this is something the Board has thought about carefully over time. Even after Tom became CEO, the Board recognized that his tenure would likely be limited, and Tom candidly acknowledged that himself. A key priority has been to make sure the right talent was in place around him to carry this company forward, and Tom played an integral role in recruiting much of the current leadership team. When we brought Shiv on board, it was with the clear understanding that he was, for all intents and purposes, positioned to be Tom's successor. Shiv ramped much faster than we initially expected. The pace at which we need to build and compete is accelerating. And we believe that's best driven by a product-centric leader who is rooted in architecting scalable, cloud-native platforms that can maximize the impact of AI, which is continuing to rapidly scale. We are seeing tangible signs that this represents an enormous opportunity for Cellebrite. And the team was emphatic on the last quarter's call about that. Given this backdrop, we felt it was important to make the change now. Looking ahead, my optimism about Cellebrite's future has not wavered. We have a large and growing healthy market, trusted relationships with virtually every major public sector agency in the democratized world, a differentiated platform and a world-class team that is squarely focused on turning our domain expertise and technology into durable, profitable growth. And although this year will be choppier than we would otherwise have anticipated, the platform strategy is working. Growth is increasingly coming from our new products outside of extractions and unlocks. We are well positioned to build on our progress given these new initiatives and customer adoption. And with that said, I'll turn it over to Shiv. Shiven Ramji: Thank you, Adam, and good morning, everyone. Echoing Adam's comments, Tom's partnership over the past several months has meant a great deal to me, and I'm grateful for the foundation he's helped build. Cellebrite continues to make a real consequential impact on public safety around the world, and I see a genuine opportunity to build on that. Because regardless of customer segment, the fundamental challenge is the same. How do you compress the investigative life cycle and rapidly obtain trusted insights and actionable intelligence. Given our core competencies in digital forensics and our intimacy with customers' workflows and our accelerating investments in on-premise capabilities, edge, cloud and AI, Cellebrite is uniquely positioned to turn digital data from any device, any source or environment into actionable, court-approved and mission-ready intelligence. All of us here are committed to the hard work and disciplined execution required to enhance our platform and expand our business around the globe. I am excited about the opportunity ahead. But today, I want to start with where we are. We did not deliver the ARR and revenue performance we expected in the second quarter. On our last call, we expected a meaningful acceleration in Q2. That acceleration did not materialize at the level we anticipated, and we own that. The immediate shortfall was concentrated in a limited number of large transactions that we expected to close in the quarter, but ultimately moved beyond our anticipated time line. It's worth noting that for some of these transactions, particularly with U.S. federal and European government customers, we encountered new and additional administrative and procurement requirements related to our current foreign entity status. Additionally, we are also competing for increasingly large and strategic opportunities that now incorporate cloud and AI. These deals involve more stakeholders and in some cases, longer procurement cycles. But I want to be clear, timing is not an excuse. We need to execute these opportunities better, identify risks earlier and forecasted business with greater precision. Another factor impacting performance involves our Insights digital forensic solution. To be clear, we continue to make good progress converting customers to insights, reaching nearly 65% of the installed base by the end of Q2. However, the ARR uplift from pricing and footprint expansion has been lower than we expected, particularly in the U.S. state and local government sector. So taken together and considering the timing of several product introductions in the second half, we believe the responsible action is to lower our full year ARR and revenue outlook. At the same time, we are raising our full year adjusted EBITDA target, reflecting continued discipline in how we manage the business and prioritize investments. Dave will walk you through the outlook in more detail shortly. The question I want to address next is straightforward. What do we need to do differently? And there are 2 immediate priorities. First, we are raising the standard for sales execution. We have completed a bottoms-up review of our pipeline and our largest opportunities. We're putting greater rigor around qualifying opportunity, customer commitments, procurement milestones, executive sponsorship and cross-functional ownership. Second, we are tightening our forecasting discipline. Pipeline is not performance. Going forward, we will place greater weight on observable customer actions based on the current environment. And within that construct, we will also more explicitly account for the timing and magnitude of prospective large transactions with major government agencies. None of the disappointment around the quarter or the year changes my conviction in the opportunity in front of Cellebrite. There are a number of positive signs that our strategy to broaden our platform and extend our reach beyond our technical digital forensics user base is, in fact, working. Our U.S. Federal business had a solid second quarter, and the Defense and Intelligence ARR grew 25%. Our platform is compelling for these customers, and we are now pursuing some of the largest opportunities in the company's history. Our newer offerings are also increasingly contributing to our ARR growth. We saw important adoption of new solutions like Guardian Investigate, Advanced Unlocks and drone forensics in Q2, all of which occurred in their first full quarter of availability. Earlier this week, we secured our first major FedRAMP deal for Guardian with one of our long-standing U.S. federal customers as part of a multiproduct multimillion-dollar deal. This customer placed an initial 7-figure order for Guardian alone that is nearly 35x higher than the average annual spend of roughly $50,000 by an SLG agency on Guardian. Genesis, which launched on June 10, generated more than half a dozen customer wins before the end of the second quarter, and that progress has continued into the third quarter. We are pleased to see local police departments, major metropolitan agencies, district attorneys and correctional organizations among the early adopters. Just as important, trials have continued to expand into Q3, and we are extending availability beyond the U.S. into the U.K., Australia and Europe. These are all encouraging signals. But I also want to put them in the appropriate context. Innovation, customer interest, pipeline and product adoption only matter if we consistently convert them into ARR, revenue, profitability and ultimately, cash flow. That is the operating discipline we will prioritize moving forward. At the strategic level, the opportunity in front of us is much larger than any specific individual product. Every customer we serve is trying to solve essentially the same problem, compress the investigative life cycle and move from digital evidence to trusted, actionable intelligence faster. Cellebrite has a unique foundation from which to solve that problem. Deep expertise in digital forensics, extraordinary access to investigative workflows and data and growing capabilities across cloud and AI. Our ambition is to connect those capabilities into a broader investigative intelligence platform that can securely turn digital data from devices, cloud sources and other environments into trusted insights customers can act on. And AI will be an important part of that. We are building a shared Cellebrite AI layer designed specifically for digital investigations, combining forensic context, models and agents with evidence-grade controls around provenance, verification, auditability and human oversight. The outcome we care about is not AI for its own sake. The payoff is measured in time, quicker time to evidence, accelerated time to insight and ultimately, faster time to action and justice. In the second half, our priorities include enhancing and expanding Genesis. This includes bringing this capability into high security and on-premise environments, and we have already secured an agreement with an anchor customer for an air-gapped offering. We also plan to extend Corellium into additional law enforcement and enterprise vertical use cases and continue advancing our drone forensics capabilities. We will invest aggressively where we see the potential for durable growth, but we will do so with discipline. I'll close with a couple of personal comments and observations. First, I want to thank all of our Cellebriters who take our mission very seriously and are working hard to deliver on another important quarter. Your energy and efforts are truly appreciated by the leadership team, our customers and our shareholders. In terms of our product and technology organization, Iftach Smith, a seasoned Cellebrite product and engineering executive, will assume leadership on an interim basis until we complete our search for a new leader. Throughout my career, I've been fortunate to build successful technology platforms for businesses that created access, opportunity and better outcomes for people. What drew me to Cellebrite is that the impact here is unusually tangible. Inside every device and within every piece of digital evidence is a human story, a family waiting for answers, a victim seeking justice, an investigator trying to stop the next crime and a nation working to protect its citizens. For the better part of 20 years, Cellebrite has earned the trust of its customers when the stakes are the highest and involve some of their most consequential missions. That trust is something I take very seriously. This was not the quarter we expected, and we have work to do. As CEO, I accept that responsibility. My commitment to our shareholders is straightforward. We will confront issues early, communicate clearly, allocate resources with discipline and continue earning your confidence by setting realistic yet ambitious goals and achieving them through relentless consistent execution and results. I am confident in the opportunity ahead, and I'm energized by the work required to realize it. With that I will turn it over to Dave, our CFO. David Barter: Thank you, Shiv. Q2 represented a quarter with some puts and takes. ARR increased 21% to $508 million, but we missed the bottom end of our guidance range. We are committed to executing better, and I believe we will. As I look beyond the execution, it's important to keep in mind that business model transitions are nonlinear. We have made great strides converting our customers to insights. Equally, we are making great strides with regard to cloud and AI. Our business will become stronger and more durable as customers adopt more solutions across our platform. We are also encouraged that our growth products contributed 25% of the $15 million of sequential ARR increase versus 18% last quarter. Drilling down, our investment in new products continues to reinforce the value of our platform strategy. This was the first full quarter of availability of our Advanced Unlocks and Guardian Investigate Solutions. Each contributed meaningful levels of net new ARR and opened up higher levels of spending. For example, given the volume of evidence stored on Guardian Investigate, combined with its AI capabilities, it's a product that commands increased price versus Guardian Forensics. Another highlight was Genesis, which we launched late in the quarter. The early signs of product market fit are strong. We secured about $400,000 in ARR in the final weeks of June. This product was launched as a consumption product, which provides customers with the flexibility to use as many tokens as they need to compress the investigative life cycle. The initial deals indicate this product will be accretive to our gross profit and P&L. Let's take a look at ARR by geography. The Americas represented 53% of total ARR. EMEA represented 34% and APAC represented 13%. In terms of growth rates, the Americas grew 19%, EMEA grew 23% and APAC was a standout performer with 29% growth. Looking a bit closer into the Americas, growth in U.S. Federal accelerated into the mid-teens after being flat at the end of 2025. As Shiv noted, the changing dynamic with Insights where customers continue to adopt, but we are not capturing as much price and expansion at the time of conversion was most evident in our U.S. state and local government sales group. Last year, this group delivered growth in the mid-20% range. The growth is now just below 20%. Fortunately, we are starting to see the benefits of new product introductions. Without those new offerings, state and local government growth would have been in the mid-teens. Turning to revenue. We reported $131 million, up 16% year-over-year. Subscription revenue was $119.5 million, also up 16% and represented 91% of our total revenue. Our Q2 gross profit increased 16% to $112 million, which represents a gross margin of 86%. Second quarter adjusted EBITDA was $31.8 million, a 24% margin. Our profitability continues to be impacted by a challenging FX environment. Headcount was 1,287 employees at the end of June, which is basically flat with the end of fiscal 2025. We reported second quarter operating income of $29.8 million and net income of $29.7 million or $0.11 on a fully diluted basis. Looking at the balance sheet, we ended the second quarter with $546 million in cash, cash equivalents and investments. For the trailing 12 months, free cash flow was $144.2 million or a 28% margin. Our free cash flow performance reflects the impact of deal structures as well as collections that came in late during the first week of July. As a reminder, our free cash flow last year benefited from a onetime tax refund of approximately $9 million. Overall, we feel good about the underlying free cash flow dynamics and anticipate a stronger overall trend line in the second half of this calendar year. Let's turn to our outlook. We've lowered our full year 2026 ARR guidance range to $550 million to $560 million, a reduction of $15 million at the midpoint. The change to our second half now assumes net new ARR for the second half of the year that is essentially in line with fiscal 2025. There are several primary factors for this change. The outlook reflects moderation in Insights conversions, specifically the incremental price and expansion at the time of conversion. There is greater prudence in regards to deal timing due to the administrative requirements we discussed earlier that are elongating deal cycles. And finally, we've removed potential upside from larger, more complicated deals where sales cycles are longer and less predictable in the current environment. Our recent FedRAMP win was a great example of this. It required multiple waivers, security reviews and other administrative approvals that, in the end, made it difficult to forecast when exactly this deal would close. I'd like to take a moment to bridge our updated outlook for 14% to 16% ARR growth with the growth framework we've previously shared. First, we still expect winning new logos and capturing incremental price will generate several percentage points of growth. Second, we now anticipate that Insights will contribute mid-single digits. The third growth driver, Guardian, Pathfinder and Genesis, the cornerstones of our digital investigation and analytics offerings will grow at the lower end of our original expectations in the mid-single digits. We also moderated our expectation for Corellium's contribution to 1 to 2 percentage points. And finally, we remain comfortable about finishing this year with at least 1 point of improvement in our gross revenue retention rate given our performance in the first half. Given the lower ARR range, we've reduced our full year revenue range to $555 million to $561 million, which represents growth of 17% to 18%. We've raised our adjusted EBITDA targets to $153 million to $159 million, which represents a 28% margin. It's important to highlight this outlook contemplates the business absorbing nearly 3 points of FX headwind from the ILS. We plan to manage our capital allocation thoughtfully while we continue to fund investments critical to durable long-term growth. We remain well positioned to deliver 30% free cash flow margins in 2026 as we move into the seasonally stronger second half of the year. We are increasingly optimistic about our potential to deliver the next step-up in our profitability and free cash flow in 2027 as we demonstrate that we can operate the business without material expansion of the headcount, the FX headwinds subside and new products continue to scale. Our third quarter expectations are as follows: We anticipate ARR in the range of $524 million to $528 million, representing net new ARR of $16 million to $20 million. We expect third quarter revenue in the range of $145 million to $148 million and adjusted EBITDA in the range of $42 million to $45 million or a margin of 29% to 30%. I'd like to close our prepared remarks by reiterating that reducing our growth expectations is prudent in light of the transitory headwinds we've encountered. We don't take that change to our guide lightly. There is a lot of good happening beneath the headline numbers. Federal is reaccelerating. Defense and intelligence is outgrowing the rest of the company and AI and our Genesis product is off to the strongest start of any product we've ever launched. We remain confident in the long-term opportunity in front of us, and we're focused on executing through the back half of the year to deliver on our updated outlook while setting ourselves up for long-term success. Operator, that concludes our prepared remarks. Operator: [Operator Instructions] Our first question today comes from Shaul Eyal with TD Cowen. Shaul Eyal: Shiv or David, listening to the call, I wanted to ask what gives you the confidence about the growth potential of the business? And I have a follow-up. Shiven Ramji: Yes, I'll start. So I think of this year as more of execution reset, not a reset of our long-term growth potential. Like I said, we are seeing good early signals from the work that we're doing in product and also the deal sizes that we are now entertaining. So over the long term, obviously, we are optimistic about the potential of the business, but being prudent about what -- how we execute over the next 2 quarters. Andrew Kramer: David? David Barter: Let me offer a little bit of perspective. I mean when you put the quarter in context, we signed and took down orders probably well north of 1,000. In the end, it kind of came down to 4, and it was 4 that crossed the line, and it was 4 that involved cloud. It was one in particular involved a platform. You might recall one of these deals we alluded to last time where they actually called us before we had FedRAMP approval. And even they were a little bit surprised about the change in procurement requirements when you get into cloud and AI and the approvals that we had to secure. And so to be in that spot where a platform order came in, we sold 5 products. Originally, they were just renewing one product and they bolted on 4 more to it. And so to have a solution like that with a leading agency that's on the vanguard of cloud adoption. I think that's what gives us confidence. I think we've seen cloud transitions and cloud adoption work well in every other part of the economy. There's no reason why it doesn't work well here. The fact that they're adopting cloud, they're adopting AI. And even as Shiv alluded to, we have now customers that are kind of going into on-prem AI, which is a pretty quality -- contemporary and quality business model gives us the encouragement and the confidence. Shaul Eyal: Understood. As my follow-up, I'm curious with respect to some of the slippage you've seen in EMEA, maybe like in EU countries and some of the administrative requirements you mentioned in your prepared remarks. Can you maybe provide us with more color, maybe slightly elaborate on that? Marcus Jewell: Sure. It's Marcus. Yes, I'll answer that. So in EMEA, we faced a slightly different challenge, which was based around freedom of information. The growth that we have in EMEA that we wanted in Q2 comes from transitioning major European customers, both in Germany and the U.K. to cloud. That required an extra level of vigor that was not made apparent to us at the start is that as information moves into the cloud from investigations that a new EU law was applied for freedom of information, which meant there was an audit to make sure that any information that we store and process is kept not only in the sovereign location, but equally as a vendor that we are anonymized and we do not get to see that. That was a surprise to both our customers and us, and we had quite a difficult process with legal review to get through that. The good news is we secured 4 of those slip deals already in the quarter, actually all 4 for the cloud, and we now feel confident that we know how to deal with and respond to the CIO's requirements for freedom of information. So that was the explanation for EMEA. Operator: Our next question comes from Mike Cikos with Needham. Michael Cikos: On the Defense and Intelligence growth, can you help us by maybe quantifying the magnitude of these elongated sales cycles that you're seeing as well as the conviction you have in the growth from where we sit today over the remainder of the year? And then I just have a quick follow-up. Marcus Jewell: Sure. So it's Marcus again. Thanks for the question. Great question. So in Defense and Intelligence, actually, delays are less. We actually feel confident about our ability and the nature of those deals, particularly in defense and intelligence continues. The delay that we'll call out was more in the civilian side of the federal business, and that was down to 2 things. The first one was, I have to be honest that the agencies as they move to cloud and AI do not necessarily have the correct procurement tools to understand exactly how to do that. And you're going to see that message portrayed, I think, across a number of vendors. We have a particular additional requirement, which is as a foreign filer, we found that we needed to find other permits, which was new. Our sponsor is a very high-level CIO in a departmental level, was not even aware of something called an FEP, which is a foreign entity permit requirement, which is applied to cloud technology. Since learning that and learning that process, which created a 4- to 5-week delay, we've managed to secure a master FEP, which means that at a departmental level now, we will be much more expedited in the processing of our orders. So I want to clarify that DNI is not as slowed down as federal agencies, which are using this cloud transition. Michael Cikos: Thank you, Marcus. And maybe a question here for Adam. I'd just prefer to ask you. If I rewind the clock a year ago, it's when we were saying that Tom was going to be named the CEO. He was the preferred choice. We're now appointing Shiv here effective immediately, which is part of this planned transition you guys are citing. But admittedly, at least from the external side, we didn't have insight to that. So first, can you walk us through like that planned transition? And then secondly, how is the team internally handling that level of change management, if I'm thinking about retaining personnel and just the turnover we're seeing in the CEO seat? Andrew Kramer: And Mike, it's Andy. I'll just preface that the Q&A, I was pretty explicit that Shiv, Dave and Marcus would lead the Q&A. I don't even know that Adam is connected at this point in time. So I understand -- we understand the question, and we'll endeavor to connect you. But I'll just ask Shiv to provide a little bit of color and perspective there. Shiven Ramji: Yes. So as Adam had mentioned, this was a planned transition, and both Tom and I have been working on this. And we just accelerated the transition given the opportunity we see with the products and the markets we're operating under. So it just got pushed up much earlier than initially thought. Adam Clammer: Well, Adam is here, and I'm happy to just echo what Shiv said. This was something that when Tom went in as CEO, which we were excited about and he was excited about, he and we and the Board understood that we would start looking for a product-centric CEO, and it might take some time to find that person and it might take some time to ramp that person so they could assume this position. It happened sooner than we all expected. And it really happened with the full support of the entire management team. So we're delighted that all of the direct reports are excited and supportive about Shiv going forward. Operator: We'll take our next question from Rudy Kessinger with D.A. Davidson. Rudy Kessinger: It sounds like in the quarter, there was a number of maybe procurement and permitting and just things of that nature that caught you by surprise. As you look ahead, I guess, have you done a thorough review, I guess, across regions and agencies and governments, et cetera, to ensure that there aren't more surprises potentially that you'll uncover in future quarters? And just any color on why in hindsight, you guys didn't have your arms wrapped around all of these procurement requirements going into the quarter? Marcus Jewell: Sure. Great question. This is Marcus again. Look, you don't want to be a CRO in a public company with a miss. So first thing, we own that. And of course, if I had known these things upfront, myself and my team, which I believe is an excellent team would have dealt with them. I would say we were in an unprecedented situation as we transition to cloud and AI, where we're having unforeseen things thrown at us. Why we feel confident going forward is we have taken a different approach to the rubric that was face to us to make sure we've applied that logic to our deals going forward and be incredibly rigorous in making sure that the procurement process and understanding the full entity of the procurement process is now completely understood at not only the U.S. government but also an EMEA and APAC level. We believe with the highest level and working with some of our lobbyists that we now fully understand the mapping of how USG and EMEA is going to apply to us as a foreign filer. And we are now confident that we won't repeat the same issues going forward. And we now have precedent, which is the best thing that we can show evidence to other agencies and other buying entities of how we've been able to transact and met all the requirements that are thrown at us. So what I'm saying is I think we've learned our lesson, but we're also being prudent in our outlook to take in consideration that there could be delays. Operator: And we'll take our next question from Jeff Van Rhee with Craig-Hallum. Unknown Analyst: This is Daniel, on for Jeff. Maybe we could just open, Shiv, I'd love to hear a little bit more in terms of your background. And just if you could speak to what attracted you to Cellebrite, the opportunities you see, what's brought you here? Shiven Ramji: Yes. Thanks, Daniel. Sure. So I mean, for me, this starts with the mission that Cellebrite is focused on. I think what the company has built, the assets that we have is truly impressive. And the mission is really, really important. We play a very, very important consequential role for our customers and their investigation. So I think first was just like the mission is very attractive and very impactful. Then I think of Cellebrite has like really amazing assets. I mean this company is -- we have a hardware component to our business. We have a cloud component now that we've just talked about. AI is now helping us deliver outcomes and capabilities to our initial early adopters, and you can see the customer feedback that we're getting from them. And then what we can do in DNI is really, really unique and special with, obviously, our hardware offerings and offerings at the edge. So for me, it was just really exciting to see that we have this amazing technology and assets. And if we can weave all of those together to essentially build an autonomous investigative platform that we can continue to grow this company at a pretty significant pace. So I firmly believe in the long-term growth and opportunity, and we're making steady progress towards those. And as we continue to deliver those outcomes and continue to deliver those results, continue to deliver performance from the vision that we have, I think all of you will also come to appreciate what attracted me to this company. Operator: And our next question will come from Brian Essex with JPMorgan. Brian Essex: I have 2. One is, I'd love to know a little bit more about the challenges that you saw with Insights conversions and the pricing coming in lower. What percentage of the business does that account for? And if you could just help me understand how those transactions materialized during the quarter? And then the second would be, it seems like things are falling nicely in place for the federal business. You guys acquired Cellebrite Federal a while ago. You got FedRAMP certification. It seems as though the people and the processes are in place for what should be, I think, a pretty good federal quarter. Dave, I'd just let you know how your assumption -- what are your assumptions for business and contribution in 3Q? And what can we expect near term for the federal business? And that's it for me. David Barter: Thanks, Brian. Great question. As you -- I mean, you're a Pro and you're an expert on the business. So we're driving right now, and I think we kind of indicated that overall between extractions and unlock by the end of the year, that would be about 80%, 81% of total ARR. And I think as you probably recall, in any given quarter when we run the insights, we get a pricing uplift that can be $1 million to $2 million of incremental ARR, maybe even in some forces, a splash more or a splash less. And so what we're really seeing, Brian, as people progress through is ultimately, we got less of that price increase. And then ultimately, we were just buying in terms of quantity, just at the time of migration, which the migration or conversion were about from a magnitude perspective, almost exactly where we were last year. We were just capturing ultimately a little bit less. And so that really just started to weigh on our view. And I guess I looked at it through the lens of almost every business model transition or migration where at a certain point in time, just the expansion rates start to shift, and we certainly started to see that shift. So that's kind of really what unfolded there, if that's helpful. Brian, do you want me to double click a little more? Is that helpful context? If not, I'll kind of... Brian Essex: No, super helpful. I appreciate it. David Barter: And by the way, I mean, one of the other dimensions maybe that's worthwhile is just overall, we did see gross revenue retention continue to climb in the first half. Actually, on Insights, it was up several points. And so I'd say I feel really good about those who have converted and the stickiness of those relationships. I'd say on the federal side, as Marcus and I have looked at the business, I think one of the areas that we did was actually spend more time handicapping. And I'll use that recent FedRAMP win as an example, where it ended up being a nice step-up in terms of net new ARR. But I think we've really handicapped, I'd say, some of the larger transactions knowing the time frame. And so I'd say we kind of looked at -- this is why I expanded the range as we thought about the outlook to be able to say, fundamentally, we're going to start to contemplate a smaller contribution from any given deal, knowing that these have the ability to be larger cloud and AI deals. And so we just wanted to be a little bit more humble. And so I think when you look at it, and this is why we kind of look at things through the lens of last year with net new ARR being roughly flat year-over-year is that we're kind of counting on the contributions being roughly about the same, little bit more probably in the DNI world than we saw in the SLG world given some of the dynamics that we described. But in aggregate, about flat with what we saw last year. And we think that's a prudent way to look at the business, particularly when we handicap transactions. Marcus, is there anything else you'd add? Marcus Jewell: Again, we have to take a prudent view of where we are, but we believe that our federal business, as noted, is set up incredibly well. We remain -- 3 things want to remind. We remain with the only FedRAMP high solution for digital forensics available. And the process to get that is a very long and tortuous process. So even though people are announcing they are going for that, it will take an extended amount of time. The second thing is, as you probably know, if you follow the public record markets that the grants are starting to flow. There is the OBB also known as the Biden money, which affects both state and local and federal. And we are confident that we'll see some wash in that business. We also have submitted and actually been shortly for our first ever 9-figure program, and that is in the public market as well. So the leadership team there under Phil and Allan are exceptional, and I feel that they will deliver very good results for us going forward. Operator: Our next question comes from Bhavin Shah with Deutsche Bank. Bhavin Shah: David, I just wanted to double-click on Brian's question there just in terms of the outlook you're seeing on the insights migration. Why is it coming in lower than what you might have seen a year ago? Is it just like the most needy customers maybe were migrating earlier and now we're at a point where, hey, it's people that might not need as much of the platform. Is it something competitively that might be changing? Are they using less unlocked? I just wanted to really understand and appreciate kind of what's happening with this customer cohort? And how do you ensure this doesn't happen to the remaining 37% of customers as you kind of go down the path? David Barter: It's a great question. I think you're certainly seeing with this cohort, you're seeing a little bit more of a conservative posture in terms of how they approached it. And so I think fundamentally, there's a couple of dynamics. One, you're getting to the maturity of the cohorts. And so some of these customers have been buying some of the legacy products over time. And so if you go back in time, the legacy premium or the legacy UFED and so some of them are just, quite frankly, better deployed. And so that's kind of one dimension that's certainly going on. I think there's another dimension where certainly, as we see the adoption of more products, whether it be the adoption of Guardian or as we saw Genesis starting to go into the base, we are seeing people have the ability to choose more to buy. So there's a few different dynamics that are playing. Again, I'll kind of reinforce GRR is up, GRR for Insights is up several points. And so I think we are when you're starting to climb towards mid-90s on a product level, particularly when people are buying on an annual basis, I think we feel like we have very positive momentum there. Operator: We'll take our next question from Eric Martinuzzi with Lake Street. Eric Martinuzzi: I wanted to dive in on the initial deals that you had with Genesis. If you could walk us through the types of customers, these are obviously the early adopters representing that $400,000 worth of ARR that you did book in Q2. Who are those? Is there anything you can kind of categorize those early adopters into? Because I imagine for a lot of your customers, there's an annual budgeting process. And if it wasn't in there at the start of the year, it's going to be hard to sign up for it now. Marcus Jewell: Great question. So I'll take this one. So it's a broad church. So the good news that we're seeing there is we have secured business at international level for leasing. We have secured business at a state level AG. We have actually secured business in the enterprise. And so what we're seeing is a very broad church and the momentum of conversion is accelerating and the number of trials is accelerating to a great level. We don't see any common use case, which is dominating at the minute. We're actually seeing it because the very nature of an open-ended model with LLM integration allows us to cover pretty much all the markets. So as this develops, we will clearly inform you any hands we see forming. But at the moment, we see it spreading across all of the markets that we exist in. David Barter: Eric, I might offer just in terms of how you think about the business, we have had some customers go from the pilot and they might start off with, I think the smallest order might be $6,000 or $10,000, and then we've had some customers up towards $200,000. And so now that the business is, as I shared, it wrapped up at about $400,000 and now it's pushing $1 million of ARR. We're starting to see some maturation around how people are adopting, particularly as they've been using the free trial consuming at pretty heavy levels. And as they open up budget and create opportunity, they're biting in some interesting quantities. So again, I think it's overall -- it was nice to see how it monetized over the course of a couple of weeks and 5 or 6 weeks since we closed the quarter, the monetization has continued. And again, we see good activity both in the free trial, but also at the paid level. Marcus Jewell: I think it's worth adding as our leading consumption product. It gives us the chance to upgrade in cycle extensively. So whereas in state and local and federal, you're normally stuck to your 1-year or your 3-year bid value. Here, what we're seeing the ability to actually do product-led growth as well and upgrade within cycle. So the monetization is much more dynamic than products we've had previously. Operator: And we'll go next to Jonathan Ho with William Blair. Jonathan Ho: Can you quantify the size of the pipeline deals lost? And how much is maybe subsequently closed already? And also, I guess one thing I wanted to better understand is how to quantify how much these complicated deals have actually elongated the sales cycle? Like are we talking about multiple quarters here? Just want to understand sort of the dynamics there. Marcus Jewell: I can give you 3 very good answers here, I think. So the first thing is, the easy one is, no deals are lost. We didn't lose any business throughout this process. Of the business which slipped, as we sit here today, $4 million of that has now closed and booked, which has obviously made our Q2 very different. The elongation is approximately 6 weeks to the sales cycle is what we've seen. So hopefully, that's 3 questions and answers for you... Operator: [Operator Instructions] And this will conclude today's Q&A portion of the call. I would now like to turn the floor over to Andrew Kramer for additional or closing remarks. Andrew Kramer: Great. Thank you very much. I'd like to thank everybody for joining on today's call. We look forward to speaking with you in the weeks that follow. We will be at a couple of investor conferences over the next couple of months. Look forward to seeing you there as well. Thank you very much. And until we speak again, have a good day. Operator: Thank you. This concludes today's Cellebrite Second Quarter 2026 Financial Results Conference Call. Please disconnect your line at this time, and have a wonderful day. Before you buy stock in Cellebrite, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Cellebrite wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $432,621!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,314!* Now, it’s worth noting Stock Advisor’s total average return is 976% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 20, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Cellebrite. The Motley Fool has a disclosure policy. Cellebrite (CLBT) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. The Board appointed Shiv Ramji as CEO to accelerate the transition toward a product-centric, cloud-native architecture capable of maximizing AI scalability. Q2 ARR and revenue underperformed expectations due to the timing of a limited number of large transactions that slipped beyond the quarter's end. Administrative and procurement hurdles related to the company's foreign entity status delayed several U.S. Federal and European government deals. The shift toward larger, strategic opportunities involving cloud and AI has introduced more stakeholders and longer procurement cycles than legacy hardware-centric deals. While the Insights digital forensic solution reached 65% of the installed base, the ARR uplift from pricing and footprint expansion was lower than anticipated, particularly in U.S. state and local government sectors. Management is raising the standard for sales execution by implementing greater rigor around qualifying procurement milestones and executive sponsorship to improve forecasting precision. The company is evolving from a digital forensics tool provider into a broader investigative intelligence platform, using a shared AI layer to compress investigative lifecycles. Full-year ARR guidance was lowered to $550 million–$560 million to reflect moderated Insights conversion pricing and greater prudence regarding deal timing. Management removed potential upside from large, complex government deals from the forecast, citing unpredictable sales cycles in the current environment. The company raised its full-year adjusted EBITDA target to $153 million–$159 million, reflecting disciplined headcount management and operational efficiency despite a 3-point FX headwind. Growth expectations for Corellium were moderated to 1 to 2 percentage points, while Guardian, Pathfinder, and Genesis are expected to grow at the lower end of original mid-single-digit targets. Management anticipates a step-up in profitability and free cash flow in 2027 as new products scale and current FX headwinds potentially subside. Foreign entity status (FEP) requirements emerged as a new administrative barrier for cloud-based contracts with U.S. federal agencies, requiring the procurement of a master permit to expedite future orders. New EU laws regarding freedom of information and data sovereignty created unforeseen legal review delays for cloud transitions in Germany and the U.K. The launch of Genesis as a consumption-based product introduces a new revenue dynamic, allowing for in-cycle upgrades and product-led growth compared to fixed annual contracts. Free cash flow performance in Q2 was impacted by specific deal structures and collections that arrived in the first week of July rather than June. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed that no deals were lost to competitors; rather, they were delayed by approximately 6 weeks due to procurement complexities. Of the business that slipped from Q2, $4 million has already closed and booked as of the earnings call date. The lower-than-expected pricing uplift is attributed to the maturity of current customer cohorts who were already well-deployed with legacy premium products. Customers are becoming more conservative in their expansion posture at the time of migration, though gross revenue retention for Insights remains high. Cellebrite maintains the only FedRAMP High solution for digital forensics, which management views as a significant competitive moat given the long certification process for rivals. The company has been shortlisted for its first-ever 9-figure program, signaling a shift toward much larger government contracts. Genesis secured $400,000 in ARR within weeks of launch, with monetization pushing toward $1 million shortly after the quarter closed. Adoption is spanning diverse segments including international leasing, state Attorneys General, and enterprise clients, utilizing an open-ended LLM integration model.

This article first appeared on GuruFocus. ARR: Increased 21% to $508 million, missing the bottom end of guidance. Revenue: $131 million, up 16% year-over-year. Subscription Revenue: $119.5 million, up 16%, representing 91% of total revenue. Gross Profit: Increased 16% to $112 million, with a gross margin of 86%. Adjusted EBITDA: $31.8 million, a 24% margin. Operating Income: $29.8 million. Net Income: $29.7 million, or $0.11 on a fully diluted basis. Free Cash Flow: $144.2 million for the trailing 12 months, a 28% margin. Cash Position: Ended the quarter with $546 million in cash, cash equivalents, and investments. Headcount: 1,287 employees at the end of June, basically flat with the end of fiscal 2025. Full Year 2026 ARR Guidance: Lowered to $550 million to $560 million. Full Year 2026 Revenue Guidance: Reduced to $555 million to $561 million, representing growth of 17% to 18%. Full Year 2026 Adjusted EBITDA Guidance: Raised to $153 million to $159 million, a 28% margin. Q3 2026 ARR Guidance: Expected in the range of $524 million to $528 million. Q3 2026 Revenue Guidance: Expected in the range of $145 million to $148 million. Q3 2026 Adjusted EBITDA Guidance: Expected in the range of $42 million to $45 million, a 29% to 30% margin. Warning! GuruFocus has detected 3 Warning Sign with CLBT. Is CLBT fairly valued? Test your thesis with our free DCF calculator. Release Date: August 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Cellebrite DI Ltd (NASDAQ:CLBT) reported a 21% increase in ARR to $508 million, with strong growth in the Defense and Intelligence segment at 25%. The company saw significant adoption of new products like Guardian Investigate, Advanced Unlocks, and Drone Forensics, which contributed to ARR growth in their first full quarter. Genesis, launched in June, secured over half a dozen customers and $400,000 in ARR within weeks, with strong early product-market fit and expansion into international markets. US Federal business reaccelerated with mid-teens growth, and the company secured its first major FedRAMP deal for Guardian, a multimillion-dollar multiproduct order. The company raised its full-year adjusted EBITDA target to $153-$159 million, reflecting disciplined cost management and improved profitability despite revenue headwinds. Cellebrite DI Ltd (NASDAQ:CLBT) missed its Q2 ARR and revenue guidance due to delays in large transactions, particularly in US federal and European government sectors. The company lowered its full-year ARR guidance to $550-$560 million and revenue to $555-$561 million, citing elongated sales cycles and procurement complexities. Insights conversions are yielding lower-than-expected ARR uplift, especially in the US state and local government sector, impacting growth. The company faced unexpected administrative and procurement requirements due to its foreign entity status, causing delays and uncertainty in deal closures. FX headwinds from the Israeli Shekel are negatively impacting profitability, with the company absorbing nearly 3 points of FX headwinds in its outlook. Q: What gives you confidence in the growth potential of the business despite the Q2 miss?A: Shiven Ramji (CEO) and David Barter (CFO) framed the quarter as an "execution reset" rather than a reset of long-term growth potential. They highlighted strong early signals from new products and larger deal sizes. Barter noted that while they took down over 1,000 orders, the shortfall came down to just four large deals that involved cloud and AI components. He cited a specific platform order where a leading agency, originally renewing one product, bolted on four more, demonstrating the success of the platform strategy and cloud adoption. Q: Can you elaborate on the administrative and procurement requirements that caused deal slippage in EMEA and the US Federal sector?A: Marcus Jewell (CRO) explained that in EMEA, transitioning major European customers (Germany and UK) to cloud triggered a new EU Freedom of Information law, requiring audits to ensure data is stored in sovereign locations and that Cellebrite, as a vendor, cannot access it. This was a surprise to both parties and required a difficult legal review process. In the US, a new "Foreign Entity Permit" (FEP) requirement for cloud technology created a four-to-five-week delay. Cellebrite has since secured a master FEP, which will expedite future departmental orders. Q: Can you quantify the magnitude of the elongated sales cycles and the conviction in Defense and Intelligence (D&I) growth?A: Marcus Jewell (CRO) clarified that delays were not in the D&I sector, which continues to grow confidently. The slowdown was in the civilian side of the federal business due to the new procurement requirements. He confirmed that no deals were lost; approximately $4 million of the slipped business has already closed and booked. The elongation of the sales cycle was approximately six weeks. Q: What were the challenges with Insights conversions, and why did the pricing uplift come in lower than expected?A: David Barter (CFO) explained that while the magnitude of conversions was almost exactly where it was last year, Cellebrite captured less price uplift and expansion at the time of migration. This is partly due to the maturity of the customer cohort, as many had already been well-deployed on legacy products. He also noted that customers now have more choices with new products like Guardian and Genesis. Importantly, gross revenue retention (GRR) for Insights is up several points, indicating strong stickiness among converted customers. Q: Can you walk us through the planned CEO transition from Tom Hogan to Shiven Ramji and how the team is handling the change?A: Adam Clammer (Chairman) explained that the Board always understood Tom Hogan's tenure would be limited and had prioritized finding a product-centric CEO. Shiven Ramji was brought on with the clear understanding he was positioned to be the successor. The transition was accelerated because Ramji ramped faster than expected and the pace of building and competing is accelerating. Clammer emphasized that the entire management team is excited and supportive of the change. Q: Can you provide more color on the early Genesis adoption and the types of customers signing up?A: Marcus Jewell (CRO) stated that Genesis has a "broad church" of early adopters, including international law enforcement, state-level Attorneys General, and enterprise customers. There is no single dominating use case, as the open-ended LLM integration covers all markets. David Barter (CFO) added that initial orders range from $6,000 to $200,000, and the product has already grown from $400,000 to nearly $1 million in ARR since launch. Jewell highlighted that as a consumption product, Genesis allows for in-cycle upgrades and more dynamic monetization. Q: Have you done a thorough review to ensure there are no more procurement surprises in future quarters, and why weren't these requirements known beforehand?A: Marcus Jewell (CRO) owned the miss, stating that the transition to cloud and AI presented unprecedented situations. He confirmed that Cellebrite has now applied a new, rigorous rubric to its deals, working with lobbyists to fully understand the procurement mapping for US and EMEA as a foreign filer. The company now has precedent from successful transactions to show other agencies, and while they have learned their lesson, they remain prudent in their guidance to account for potential delays. Q: What is your background, and what attracted you to Cellebrite?A: Shiven Ramji (CEO) stated he was drawn to Cellebrite's important and consequential mission. He highlighted the company's unique assets, including hardware, cloud, and AI capabilities, and the special offerings in the Defense and Intelligence sector. His vision is to weave these together to build an autonomous investigative platform, and he firmly believes in the long-term growth opportunity, making steady progress toward delivering on that vision. Q: What are your assumptions for the US Federal business in Q3, and what can we expect near term?A: David Barter (CFO) and Marcus Jewell (CRO) noted that Cellebrite remains the only FedRAMP High solution for digital forensics, a long and difficult process for competitors to replicate. They highlighted that government grants are starting to flow, and the company has been shortlisted for its first-ever nine-figure program. They have handicapped larger transactions in their outlook, expecting contributions roughly flat with last year, with more growth coming from the D&I world than SLG. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Cellebrite DI Ltd. (CLBT) came out with quarterly earnings of $0.11 per share, missing the Zacks Consensus Estimate of $0.12 per share. This compares to earnings of $0.12 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -8.33%. A quarter ago, it was expected that this company would post earnings of $0.11 per share when it actually produced earnings of $0.12, delivering a surprise of +9.09%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Cellebrite DI Ltd., which belongs to the Zacks Internet - Software industry, posted revenues of $131.14 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 1.3%. This compares to year-ago revenues of $113.28 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Cellebrite DI Ltd. shares have lost about 15.4% since the beginning of the year versus the S&P 500's gain of 13.2%. While Cellebrite DI Ltd. has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Cellebrite DI Ltd. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.17 on $150.06 million in revenues for the coming quarter and $0.58 on $568.78 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 36% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, ServiceTitan Inc. (TTAN), is yet to report results for the quarter ended July 2026. The results are expected to be released on September 8. This company is expected to post quarterly earnings of $0.36 per share in its upcoming report, which represents a year-over-year change of +9.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. ServiceTitan Inc.'s revenues are expected to be $285.14 million, up 17.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cellebrite DI Ltd. (CLBT) : Free Stock Analysis Report ServiceTitan Inc. (TTAN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Cellebrite DI (NASDAQ:CLBT), a digital forensics and investigative intelligence software provider, closed at $10.80, down 29.18%. The stock tumbled after Cellebrite cut full-year revenue guidance and reported a quarterly earnings miss. Investors are watching whether the new CEO can stabilize execution and margin trends. Trading volume reached 36.5M shares, coming in about 1355% above its three-month average of 2.5M shares. Cellebrite DI IPO'd in 2020 and has grown 12% since going public. S&P 500 (SNPINDEX:^GSPC) rose 0.65% to 7,799, and the Nasdaq Composite (NASDAQINDEX:^IXIC) gained 0.82% to 26,805. In digital investigation and intelligence software for law enforcement and enterprise security, Axon Enterprise (NASDAQ:AXON) closed at $615.59, up 2.64%, while NICE (NASDAQ:NICE) finished at $105.25, higher by 6.79%. Cellebrite grew sales by 16% in Q2, but these figures fell short of analysts’ expectations, while EPS was in line. The real issues for Cellebrite were that management lowered guidance to 19.5% sales growth in Q3 and 15% growth in 2026, and that net income dipped compared to last year. Typically, for growth stocks, the market may be willing to sacrifice slowing growth in the name of higher profits (or vice versa), but both, at the same time, prompt sell-offs like we saw today. That said, the company announced that Shiven Ramji would take over as CEO after serving as President of Technology and Products for Cellebrite since May. Previously, he was the President of Okta’s ID business, so new eyes may help spark a turnaround for the stock’s thus-far underwhelming run since its 2021 IPO. Another silver lining for CLBT shareholders is that its Guardian, Pathfinder & Corellium growth products more than doubled their sales year over year, and the company began monetizing its Genesis AI solution in Q2. Trading somewhere around 30 times FCF after including stock-based compensation, I’d rather see a rebound in growth before I added heavily to CLBT stock, although I love its leadership position in its digital forensics niche. Before you buy stock in Cellebrite, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Cellebrite wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!* Now, it’s worth noting Stock Advisor’s total average return is 964% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 13, 2026. Josh Kohn-Lindquist has positions in Axon Enterprise and Cellebrite. The Motley Fool has positions in and recommends Axon Enterprise, Cellebrite, Nice, and Okta. The Motley Fool has a disclosure policy. Stock Market Today, Aug. 13: Cellebrite Shares Plummet 29% After Missing Earnings, Cutting 2026 Revenue Guidance was originally published by The Motley Fool

Interested in Cellebrite DI Ltd.? Here are five stocks we like better. Cellebrite lowered its 2026 outlook after second-quarter ARR reached $508 million, below guidance, as large deals were delayed and Inseyets migrations generated less pricing and expansion uplift than expected. Full-year ARR guidance was cut to $550 million–$560 million and revenue guidance to $555 million–$561 million, while adjusted EBITDA guidance increased to $153 million–$159 million. Management attributed delays to new procurement, foreign-entity, data-sovereignty and cloud/AI requirements, but said the affected deals were not lost. The company expects recently secured permits and improved execution to shorten sales cycles. Shiv Ramji became CEO, succeeding Tom Hogan, and will focus on expanding Cellebrite’s cloud-native investigative intelligence platform and AI capabilities. New products such as Genesis, Guardian Investigate and Advanced Unlocks showed early traction, while defense and intelligence ARR grew 25% during the quarter. Cellebrite DI (NASDAQ:CLBT) reported second-quarter results that fell short of its expectations for annual recurring revenue, citing delayed large transactions, slower-than-anticipated pricing and expansion gains from customer migrations, and added procurement requirements for cloud and artificial intelligence offerings. The company lowered its full-year ARR and revenue outlook while raising its adjusted EBITDA target. The company also announced that Shiv Ramji became chief executive officer effective immediately, succeeding Tom Hogan. Hogan, who joined Cellebrite three years ago as executive chairman and became CEO last year, will remain an adviser to Ramji and the board. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be Chairman Adam Clammer said the board had expected Hogan's CEO tenure to be limited and had recruited Ramji with succession in mind. Clammer said Ramji had ramped faster than anticipated and was suited to lead the company as it expands its cloud-native platform and AI capabilities. Cellebrite reported ARR of $508 million at the end of the second quarter, up 21% year over year but below the low end of its guidance range. Revenue rose 16% to $131 million, including $119.5 million of subscription revenue, which represented 91% of total revenue. → Nebius’ Q2 Beat Shows the AI Bottleneck Is Capacity, Not Demand Gross profit increased 16% to $112 million, for an 86% gross margin. Adjusted EBITDA was $31.8 million, representing a 24% margin. The company reported operating income of $29.8 million and net income of $29.7 million, or $0.11 per fully diluted share. Cash equivalents and investments totaled $546 million at quarter-end. Trailing 12-month free cash flow was $144.2 million, or a 28% margin, though CFO David Barter said free cash flow reflected deal structures and collections that arrived during the first week of July. He added that prior-year free cash flow had benefited from a one-time tax refund of about $9 million. → On Holding's Price Stumble May Be an Opening for a Company Built to Run The company reduced its full-year 2026 ARR outlook to a range of $550 million to $560 million, representing 14% to 16% growth. The midpoint was lowered by $15 million. Full-year revenue guidance was reduced to $555 million to $561 million, representing growth of 17% to 18%. At the same time, Cellebrite raised its full-year adjusted EBITDA outlook to $153 million to $159 million, or a 28% margin. The outlook includes nearly three percentage points of foreign-exchange headwinds from the Israeli shekel, according to Barter. For the third quarter, the company forecast ARR of $524 million to $528 million, revenue of $145 million to $148 million, and adjusted EBITDA of $42 million to $45 million, implying a 29% to 30% adjusted EBITDA margin. Ramji said the company had expected a meaningful acceleration in the second quarter, but it did not occur at the anticipated level. The immediate shortfall was concentrated in a limited number of large transactions that moved beyond expected closing timelines. He said certain U.S. federal and European government opportunities encountered additional administrative and procurement requirements related to Cellebrite's foreign-entity status. Larger cloud and AI transactions also involve more stakeholders and, in some cases, longer procurement cycles. “Timing is not an excuse,” Ramji said, adding that the company needs to identify risks earlier, improve execution and forecast with greater precision. CRO Marcus Jewell said federal cloud-related transactions faced new permit requirements for foreign entities, including a process that delayed some orders by four to five weeks. He said the company has since secured a master foreign-entity permit at a departmental level that should expedite processing. In Europe, Jewell said certain customer transitions to cloud services in Germany and the United Kingdom required reviews under freedom-of-information rules. The reviews focused on ensuring data was stored in sovereign locations and that Cellebrite was unable to access customer information. He said four cloud-related deals that had slipped were subsequently secured. Jewell told analysts that no delayed deals were lost and that approximately $4 million of slipped business had closed and been booked by the time of the call. He estimated the sales-cycle extension at roughly six weeks. The company also cited lower-than-expected ARR uplift from Inseyets migrations, particularly among U.S. state and local government customers. Ramji said Cellebrite had converted nearly 65% of its installed base to Inseyets by the end of the quarter, but pricing and footprint expansion at the time of conversion were less than expected. Barter said the magnitude of customer migrations was nearly consistent with the prior year, but the company captured less incremental price and quantity expansion from those conversions. He added that gross revenue retention continued to improve and was up several points for Inseyets customers. Management pointed to growth in newer offerings as evidence that its broader platform strategy is gaining adoption. Growth products contributed 25% of the company’s $15 million sequential ARR increase, compared with 18% in the prior quarter. Advanced Unlocks and Guardian Investigate were in their first full quarter of availability and each added meaningful net new ARR, Barter said. Guardian Investigate carries a higher price than Guardian Forensics because of the volume of evidence stored and its AI capabilities. Genesis, launched June 10, generated about $400,000 in ARR during the final weeks of the quarter and had secured more than half a dozen customer wins by quarter-end. The consumption-based product uses tokens and is intended to help customers compress investigative workflows. Barter said Genesis had approached $1 million of ARR since quarter-end, with customers ranging from international police organizations and state attorneys general to enterprise users. The company also secured its first major FedRAMP Guardian deal with a longstanding U.S. federal customer. The multi-product, multimillion-dollar agreement included an initial seven-figure Guardian order that Ramji said was nearly 35 times the roughly $50,000 average annual Guardian spend of a state or local government agency. Defense and intelligence ARR grew 25% in the quarter, while U.S. federal growth accelerated into the mid-teens after ending 2025 flat, according to management. Regionally, ARR growth was 19% in the Americas, 23% in EMEA and 29% in APAC. Ramji said Cellebrite’s strategy is to build an investigative intelligence platform that turns digital data from devices, cloud sources and other environments into actionable, evidence-grade insights. The company is developing a shared AI layer intended to incorporate forensic context, models and agents with controls for provenance, verification, auditability and human oversight. Second-half priorities include expanding Genesis into high-security and on-premise environments. Ramji said Cellebrite has secured an agreement with an anchor customer for an air-gapped offering. The company also plans to pursue additional law-enforcement and enterprise applications for Corellium and continue developing drone forensics capabilities. Ramji said the company would emphasize greater rigor in qualifying opportunities, validating procurement milestones, assessing customer commitments and improving cross-functional ownership of large transactions. “Pipeline is not performance,” he said. Cellebrite DI is a global provider of digital intelligence and forensics solutions that enable law enforcement agencies, government bodies and enterprises to extract, analyze and act on data from mobile devices, cloud services and digital sources. The company's technology is designed to accelerate investigations, support evidence-based decision-making and enhance security operations by delivering actionable intelligence in a secure, scalable platform. The company's flagship offerings include the Universal Forensic Extraction Device (UFED) series for data acquisition and decoding, Physical Analyzer for advanced data parsing and visualization, and Pathfinder for case-driven investigation workflows. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Cellebrite DI Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Cognyte Software CGNT will release results for the first quarter of fiscal 2027 on June 3. CGNT’s earnings beat the Zacks Consensus Estimate in the last two quarters by 900% and 250%, respectively. Let us see how CGNT is expected to fare in terms of revenues and earnings this time. Image Source: Zacks Investment Research The Zacks Consensus Estimate for the first-quarter 2027 earnings is pegged at 10 cents per share, unchanged over the past 30 days. The same for revenues is pinned at $105.3 million, indicating 10.2% jump from the year-ago actual. Our proven model does not predict an earnings beat for CGNT this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here. CGNT currently has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank stocks here. Cognyte entered the fiscal first quarter following a year of double-digit growth and improving profitability. Revenues for fiscal 2026 surged 14.1%, driven by demand from repeat customers, as well as increases in new customers. Fiscal 2026 non-GAAP gross margin expanded 200 basis points to 73%, while non-GAAP operating profit of $36.7 million more than doubled year over year. The company has already achieved its fiscal 2028 gross margin targets ahead of schedule, indicating strong execution. However, management has explicitly guided that the fiscal first quarter revenues will come in slightly below the fiscal fourth quarter levels, followed by sequential improvement each quarter. This is mostly aligned with the seasonality of the business. Driven by revenue trends, gross margin is also expected to fluctuate between quarters. Cognyte continues to have strong revenue visibility. Total RPO stood at $557.2 million, with a backlog of $433.4 million at the end of fiscal 2026. Total RPO is the sum of contract liabilities and backlog. As a result, the company now expects fiscal 2027 revenues to be $448 million (+/-3%) compared with $400 million in fiscal 2026. Demand trends remain strong. Cognyte operates in a domain shaped by rising geopolitical tensions, increasing cyber and hybrid threats, sophisticated, complex data and the need for real-time intelligence, which is driving demand for its solutions. Cognyte Software Ltd. price-eps-surprise | Cognyte Software Ltd. Quote Management remains focused on driving installed base expansion, focusing on new customers and scaling the U.S. business. On the last earnings call, management noted that the installed base forms a significant portion of revenues, highlighting customer stickiness. Strength in repeat business is likely to have stabilized performance even in seasonally softer quarters like fiscal first quarters. Cognyte continues to see momentum in large deal activity across geographies. Recently, the company announced a roughly $5 million upgrade agreement with a “long-standing national security agency” client in the Asia-Pacific. In March, the company said it won a $20 million plus, three-year subscription contract with a “long-standing customer” in the Europe/Middle East/Africa region, underscoring both demand visibility and customer stickiness. However, there remain challenges. The shift toward subscription-based contracts can impact near-term revenue timing differences compared with perpetual licenses. Macro uncertainty, competition, rising operating expenses and dependence on government spending cycles remain concerns. Foreign exchange, particularly the strengthening of the Israeli shekel, is another headwind, although this is expected to be partially offset by gross margin expansion. CGNT’s 38.4% gain stands in stark contrast to the Zacks Internet Software market’s decline of 4.9% in the past six months. The broader Computer and Technology sector and the S&P 500 are up 19.8% and 11.4%, respectively. Image Source: Zacks Investment Research Some of its peers, such as Elbit Systems ESLT, has gained 89.1%, while Palantir PLTR and Cellebrite DI Ltd CLBT are down 8.3% and 17.3%, respectively.  Elbit Systems and Cellebrite are Israel-based companies like Cognyte, while Palantir is an established U.S.-based company in the intelligence software space. In terms of the price/book multiple, CGNT is trading at 3.69X, lower than the sector’s multiple of 4.74X. Image Source: Zacks Investment Research ESLT, PLTR and CLBT trade at a price/book multiple of 9.19X, 43.86X and 7.2X, respectively. While a strong backlog, improving profitability and demand trends support the longer-term trajectory, near-term seasonality could limit upside. New investors may be better off staying on the sidelines and looking for a more attractive entry point or clearer post-earnings direction. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Elbit Systems Ltd. (ESLT) : Free Stock Analysis Report Cognyte Software Ltd. (CGNT) : Free Stock Analysis Report Palantir Technologies Inc. (PLTR) : Free Stock Analysis Report Cellebrite DI Ltd. (CLBT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Voss Capital established a new position in Choice Hotels International (NYSE:CHH) during the first quarter, acquiring 967,500 shares in a transaction estimated at $100.61 million based on average quarterly pricing, according to a May 15, 2026, SEC filing. According to a Securities and Exchange Commission (SEC) filing dated May 15, 2026, Voss Capital initiated a new position in Choice Hotels International, acquiring 967,500 shares. The estimated value of the purchase was $100.61 million, based on the average price during the first quarter of 2026. The quarter-end value of the position was $100.14 million, reflecting both the purchase and subsequent share price movement. This was a new position for Voss Capital, LP; the stake comprised 5.31% of the fund’s reportable U.S. equity assets at quarter’s end. Top holdings after the filing: As of May 14, 2026, Choice Hotels shares were priced at $105.72, down 15% over the prior year; the stock underperformed the S&P 500 by roughly 40 percentage points over that period. Choice Hotels International franchises lodging properties under brands such as Comfort Inn, Quality, Clarion, Sleep Inn, Econo Lodge, and Cambria Hotels, and provides cloud-based property management software. The firm operates a hotel franchising business model, generating revenue primarily from franchise fees, royalties, and technology services to hotel owners. It serves hotel owners and operators worldwide, targeting both leisure and business travelers. Choice Hotels International is a leading global hotel franchisor with a diverse portfolio of well-known brands. The company leverages its scale, technology solutions, and brand recognition to attract hotel owners and deliver value to both franchisees and guests. Its asset-light model and recurring revenue streams support consistent profitability and competitive positioning within the lodging industry. Voss Capital stepped into Choice Hotels after a difficult year for the stock, but the company's latest results suggest several key growth indicators are moving in the right direction.The most encouraging numbers were found in development. Global franchise agreements awarded surged 72% year over year, while U.S. hotel openings reached a five-year high, and global net rooms increased 1.7%. Choice's pipeline also expanded to more than 77,700 rooms, with 97% concentrated in higher-value extended stay, midscale, and upscale brands.Management believes those trends represent an inflection point. CEO Patrick Pacious said franchisee economics are improving, capital intensity is falling, and the company's conversion-focused strategy is driving more efficient growth. Choice maintained its full-year outlook, including adjusted EBITDA of $632 million to $647 million and adjusted EPS of $6.92 to $7.14.There were still challenges: First-quarter adjusted EBITDA slipped to $125.7 million from $129.6 million a year ago, and RevPAR remained soft. But the company's asset-light model continues to generate cash, returning $75.2 million to shareholders through dividends and buybacks during the quarter. Ultimately, if growth continues, a turnaround might be in store, and that seems to be what Voss is betting on. Before you buy stock in Choice Hotels International, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Choice Hotels International wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $465,733!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,313,467!* Now, it’s worth noting Stock Advisor’s total average return is 985% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 29, 2026. Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cellebrite and Euronet Worldwide. The Motley Fool has a disclosure policy. Choice Hotels Stock Is Down 15%, but One Investor Bought $101 Million Last Quarter was originally published by The Motley Fool

This article first appeared on GuruFocus. ARR (Annual Recurring Revenue): Increased 21% year-over-year to $493 million. Adjusted EBITDA: $30.6 million, up 29% year-over-year. Free Cash Flow Margin: 32% for the trailing 12 months. Revenue: $128.3 million, up 19% in Q1. Gross Margin: 86%, with gross profit increasing 21% to $110.2 million. Net Income: $30.6 million or $0.12 per share on a fully diluted basis. Cash and Investments: $535 million at the end of the first quarter. Headcount: 1,271 employees at the end of March. Q2 ARR Guidance: Expected in the range of $510 million to $513 million. Q2 Revenue Guidance: Anticipated to be between $130 million to $133 million. Q2 Adjusted EBITDA Guidance: Expected to be between $29 million to $31 million. Warning! GuruFocus has detected 2 Warning Sign with CLBT. Is CLBT fairly valued? Test your thesis with our free DCF calculator. Release Date: May 14, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Cellebrite DI Ltd (NASDAQ:CLBT) reported a 21% year-over-year growth in ARR, reaching $493 million. The company delivered an adjusted EBITDA of $30.6 million, marking a 29% increase year-over-year. Cellebrite's free cash flow margin for the trailing 12 months was 32%, demonstrating strong cash generation. The launch of Genesis, a next-gen AI solution, has received positive feedback from over 500 early adopters across 15 countries. Cellebrite achieved FedRAMP high authorization, opening opportunities with US Federal agencies for its cloud offerings. The first quarter saw some deals being pushed, affecting the net new ARR, which remained flat year-on-year. There is uncertainty around the pricing strategy for the new AI products, which could impact initial monetization efforts. The company faces challenges in navigating larger deal sizes, particularly in the Federal space, which could delay revenue recognition. Cellebrite's Q1 growth was modest due to seasonality and a small population of expiring contracts. The geopolitical instability, while a tailwind for business, presents operational challenges, particularly in regions like Asia. Q: Could it be that some customers are putting additional Cellebrite core investments on hold temporarily due to the introduction of Genesis and other new products? A: Thomas Hogan, CEO: No, we are not seeing that at all. The introduction of AI capabilities like Genesis is seen as an enhancement to our existing offerings, not a replacement. The value chain starts with evidence collection and extraction, and AI helps process the increasing volume of digital evidence efficiently. Q: Do you see Anthropic Claude Mythos as a significant factor for vulnerability discovery? A: Thomas Hogan, CEO: Mythos will aid in vulnerability discovery, but it is not a threat to us. Shiven Ramji, President of Products and Technology, added that while Mythos helps with vulnerability discovery, Cellebrite's expertise in building reliable, forensically sound paths to extract evidence is unmatched and cannot be replicated by a generic LLM. Q: How are you handling the process of reaching the right people in investigative units for new products like Guardian Investigate and Genesis? A: Thomas Hogan, CEO: We are leveraging our existing relationships with over 7,000 institutions and the word-of-mouth from early adopters. Marcus Jewell, CRO, noted that they have touched 8,000 to 10,000 detectives this year through user events, ensuring strong access and momentum. Q: Can you provide insight into how the spring release of market-leading unlock capabilities is driving further purchases? A: David Barter, CFO: The advanced unlock technology was incorporated into platforms in the final 10 days of the quarter, and initial requests have been promising. Marcus Jewell, CRO, added that the interest level is high, and they have shown pricing power, which is expected to continue throughout the year. Q: Could you elaborate on the assumptions behind the $12.5 billion TAM for investigative AI and how it could double the size of the company? A: Thomas Hogan, CEO: We estimate there are roughly 500,000 detectives and investigators. If AI can make them 10 times more productive, investing $20,000 to $30,000 per detective is reasonable, leading to a $12.5 billion TAM. We conservatively assume capturing 5% of this market, equating to $600 million, which matches our current ARR. For the complete transcript of the earnings call, please refer to the full earnings call transcript.