Key Highlights

  • Annual Recurring Revenue grew 20% to USD 528.5 million.
  • Revenue reached USD 149 million, up 18%, with subscription revenue at 91%.
  • Adjusted EBITDA rose 42% to USD 53.6 million.
  • Full-year adjusted EBITDA outlook raised to USD 163 million to USD 166 million.

Cellebrite (NASDAQ:CLBT) reported third-quarter 2026 revenue of USD 149 million, against an estimate of USD 145.83 million, up 18% year over year. Earnings Per Share were USD 0.10, against an estimate of USD 0.09. Annual recurring revenue grew 20% to USD 528.5 million, which management said finished above the high end of its guidance range.

Subscription revenue was USD 134.9 million, or 91% of total revenue. Inseyets conversions rose to 75% of the install base at the end of the third quarter, from nearly 65% at the end of the second quarter.

Regional Growth, Margins and Cash Flow

By region, the Americas made up 53% of annual recurring revenue and grew 17%, EMEA made up 34% and grew 22%, and Asia-Pacific made up 13% and grew 31%. Federal grew 18%, up from the mid-teens in the second quarter. Management said growth outside the United States came with solid expansion across law enforcement and defense and intelligence customers. Outside the U.S., EMEA grew 22% and Asia-Pacific grew 31%. The company is reporting the share of its install base that has converted to Inseyets, its cloud-based analytics platform, at 75%, and described the conversion as a driver of recurring revenue.

Gross profit rose 20% to USD 127.7 million, a gross Margin of 85.7%. Total operating expenses rose 8% to USD 76.2 million. Headcount was 1,265 at the end of the quarter, a decline of about 2% from the start of the year. Adjusted EBITDA rose 42% to USD 53.6 million, Operating Income was USD 51.5 million, and Net Income was USD 45.6 million, or USD 0.17 per diluted share.

Free Cash Flow was USD 52 million for the quarter and USD 166 million for the trailing twelve months, a 31% margin. The company said it is producing a full-year free cash flow margin of approximately 30%.

Guidance

The company reaffirmed its full-year annual recurring revenue outlook of USD 550 million to USD 560 million. Fourth-quarter revenue guidance is USD 145 million to USD 150 million, and full-year revenue guidance is USD 553 million to USD 558 million, which represents growth of 16% to 17%.

Full-year adjusted EBITDA guidance was raised to USD 163 million to USD 166 million, about 29% on a margin basis at the midpoint, and fourth-quarter adjusted EBITDA guidance is USD 47 million to USD 50 million. Management noted that hardware and non-recurring revenue has moved between roughly USD 10 million and USD 14 million in a given quarter.

Reported Measures Behind the Quarter

Operating income of USD 51.5 million and net income of USD 45.6 million sit beside adjusted EBITDA of USD 53.6 million, which management presented as up 42%. Total operating expenses of USD 76.2 million rose 8%, while Gross Profit of USD 127.7 million rose 20%, and headcount of 1,265 was about 2% lower than at the start of the year. Management said the combination of top-line growth and measured Investment produced the earnings result.

The quarter's disclosures center on annual recurring revenue by region, the share of subscription revenue, the Inseyets conversion rate and free cash flow conversion. The company also published historical financial and supplemental data for the first three quarters of 2026, each quarter of 2025 and the full years 2024 and 2023, along with a customer video.