Cellebrite DI Ltd.

Q2 2026 ARR increased 21% to $508 million. Revenue was $131 million, up 16% year over year, with subscription revenue of $119.5 million, also up 16% and equal to 91% of total revenue. Gross profit increased 16% to $112 million, implying an 86% gross margin. Adjusted EBITDA was $31.8 million (24% margin), operating income was $29.8 million, and net income was $29.7 million, or $0.11 per diluted share. Cash, cash equivalents and investments were $546 million, and trailing 12-month free cash flow was $144.2 million (28% margin). For 2026, ARR guidance was lowered to $550 million-$560 million, revenue guidance to $555 million-$561 million, and adjusted EBITDA guidance was raised to $153 million-$159 million. Q3 2026 guidance calls for ARR of $524 million-$528 million, revenue of $145 million-$148 million, and adjusted EBITDA of $42 million-$45 million (29%-30% margin).

Shiv Ramji framed the quarter as an execution reset rather than a reset of the long-term opportunity. He said the company is building a broader investigative intelligence platform across cloud, edge and AI, but acknowledged that Q2 fell short because several large deals slipped and Insights pricing/expansion came in below expectations. His tone was candid and accountability-focused, with repeated emphasis on tighter forecasting, better sales qualification and more disciplined execution going forward.

David Barter said Q2 had “puts and takes,” with ARR up 21% to $508 million, revenue up 16% to $131 million and gross margin at 86%. He noted that growth products contributed 25% of the $15 million sequential ARR increase, and that Genesis generated about $400,000 in ARR in the final weeks of June. On the balance sheet, he highlighted $546 million in cash, cash equivalents and investments and $144.2 million of trailing-12-month free cash flow, while saying the company remains on track for 30% free cash flow margins in 2026. He also said the lower ARR outlook reflects moderation in Insights conversion uplift, greater prudence around deal timing and removal of upside from larger cloud/AI deals, while adjusted EBITDA guidance was raised to $153 million-$159 million despite nearly 3 points of FX headwind from the ILS.

Analysts pressed management on why growth confidence remains intact after the miss, the causes of EMEA and federal deal slippage, and whether procurement surprises could repeat. Management said the issues were concentrated in a handful of large cloud/AI transactions, including new foreign-entity permit and freedom-of-information requirements that delayed some deals by about 4-5 weeks, though Marcus Jewell said the company has now secured a master FEP and feels better prepared. Questions on Insights revealed that conversions are continuing, but customers are yielding less incremental price/expansion at conversion than expected; management said retention remains strong and GRR on Insights is up several points. On Genesis, management said early adoption is broad across international leasing, state AG and enterprise customers, with about $400,000 booked in Q2 and more monetization after quarter-end.