CellebriteCLBT

Cellebrite is scheduled to report its second-quarter results on August 13. Analysts are looking for earnings of about 6 cents per share on roughly 130 million dollars in revenue.

The company has a track record of beating expectations in most of its recent quarters. For long-term owners, the focus remains on annual recurring revenue growth and whether the company is successfully moving more law enforcement agencies onto its broader cloud-based investigation platform.

See the full quarter, and how our tracked metrics did

Key highlights

• Subscription revenue growing: Subscription revenue rose 23% to $117.9 million, making up the vast majority of the $128.3 million in total sales. This shift toward recurring software sales helps make the business more predictable than it was a year ago when subscription growth was a smaller piece of the total.
• Customer spending holding steady: The net retention rate, which measures how much more existing customers spend each year, stayed solid at 115%. This matches the high level from previous quarters and shows that investigators are adding more tools to their existing contracts.
• Drone forensics expansion: The company closed its purchase of SCG Canada on March 1, 2026, to add drone data extraction to its platform. This move expands the business into a new category of devices that can now be used as evidence in criminal and military investigations.
• Cloud security milestone: The company received FedRAMP High Authorization for its government cloud platform, meaning it meets the toughest security standards for federal agencies. This approval is a requirement for winning larger contracts with the U.S. Department of Justice and other national security departments.
• Higher profit margins: Adjusted profit margins, which measure how much money is left after running the business, reached 23.9% this quarter. This is an improvement over the 22.0% margin from the same time last year, showing the company is getting more efficient as it scales.
• Full year revenue outlook: Management expects full year revenue to land between $565 million and $571 million, which would be growth of up to 20% over last year. This outlook suggests that while total sales growth is steady, annual recurring revenue is expected to grow even faster at a rate between 22% and 23% in the coming quarter.

Our take: This was a productive quarter that shows the business is successfully moving toward a high margin software model. Total recurring revenue grew 21% to $493 million, and new federal security clearances should open doors for larger government deals later this year. The focus on recurring sales strengthens the long term case for the stock.