Cellebrite beats Q3 and lifts EBITDA guidance as CFIUS weighs divesting Corellium
Revenue, ARR and free cash flow all beat targets, but the same US government buying faster than ever is still deciding whether Cellebrite must divest Corellium, the $170 million acquisition it closed without formal clearance.
Vincent Jiangtwo-minute read
Cellebrite−10.08% — Cellebrite, down 10.08 percent today beat its own quarter and raised its profit outlook, and the stock fell 7.4% anyway 4. Shares of the digital-forensics company, whose software lets police and intelligence agencies extract and read phone data, traded at $11.76 on November 12, down 33.6% for the year 4. The market's attention is on a different line of the filing.
An 18% quarter and a higher profit outlook
Third-quarter revenue came in at $149.0 million, up 18% year over year, with subscription revenue of $134.9 million up 20% and annual recurring revenue of $528.5 million, also up 20% 1. Adjusted EBITDA was $53.6 million at a 36% margin, GAAP net income was $26.7 million, and free cash flow over the trailing twelve months reached $166.0 million, a 30.9% margin 1. The company raised its full-year adjusted EBITDA outlook to $163–166 million while reaffirming ARR guidance of $550–560 million 1.
Free cash flow lands in the fourth quarter: Q4 '25 alone brought in $82.9M
Data
| Free cash flow | |
|---|---|
| Q3 '23 | $28.1M |
| Q4 '23 | $38.88M |
| Q1 '24 | $8.55M |
| Q2 '24 | $12.44M |
| Q3 '24 | $39.83M |
| Q4 '24 | $60.75M |
| Q1 '25 | $18.54M |
| Q2 '25 | $28.98M |
| Q3 '25 | $29.95M |
| Q4 '25 | $82.86M |
| Q1 '26 | $16.84M |
| Q2 '26 | $14.52M |
Growth was led by another acceleration in US federal demand and by Genesis, the agentic AI product launched on June 10 and since opened to government and private customers in Australia, the UK and the EU 1. In one homicide case, Genesis surfaced a suspect's confession from two years of recorded jail calls that manual review had missed 3.
Q3 2026 revenue of $149M is the highest yet, 18% above a year earlier
Data
| Revenue | |
|---|---|
| Q4 '24 | $109.05M |
| Q1 '25 | $107.55M |
| Q2 '25 | $113.28M |
| Q3 '25 | $126.03M |
| Q4 '25 | $128.82M |
| Q1 '26 | $128.3M |
| Q2 '26 | $131.14M |
| Q3 '26 | $149.02M |
The part that carries the risk
Buried at the end of the release: the Corellium acquisition "continues to undergo review" by CFIUS, the US committee that screens foreign purchases of American technology, and Cellebrite is "seeking to address CFIUS' concerns in lieu of potential divestment," with no final decision and no way to predict one 1. Cellebrite, an Israeli company, closed the $170 million Corellium purchase in December 2025 on the basis of a national security agreement pending formal clearance 2. Corellium's technology now sits inside the Autumn release and the Genesis-era platform, and Corellium co-founder Chris Wade is Cellebrite's chief technology officer 123.
Customer and regulator, same government
The tension is structural. The same US government whose agencies are accelerating purchases, and whose Defense Department cybersecurity certification (CMMC Level 2) Cellebrite just cleared, removing a barrier to federal work, is the government deciding whether the company keeps Corellium at all 1. No dollar figure is attached to the divestment scenario, so shareholders own a beat-and-raise quarter with an unpriced tail. A mid-September plan to redomicile in the US, which the company says would broaden its investor pool through inclusion in key US stock indices, is itself still subject to shareholder and regulatory approvals 1.
The next CFIUS disclosure is the variable: the market has absorbed the quarter, and a divestment order would be new information no guidance covers.
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