Cellebrite DI (NASDAQ:CLBT) shares fell more than 4% in premarket trading Thursday even after the company reported first-quarter results that surpassed Wall Street expectations.
Investors appeared to focus on the company’s near-term outlook despite the stronger quarterly performance.
Revenue and Earnings Top Analyst Forecasts
Cellebrite reported adjusted earnings per share of $0.12 for the first quarter, exceeding analyst estimates of $0.06 by $0.06.
Revenue increased 19% year-on-year to $128.3 million, coming in ahead of the consensus estimate of $127.01 million.
Subscription revenue rose 23% to $117.9 million, while annual recurring revenue (ARR) climbed 21% to $493.0 million.
Second-Quarter Outlook Weighs on Shares
Despite the earnings beat, market sentiment weakened after Cellebrite issued guidance for the second quarter.
The company projected ARR between $510 million and $513 million, with the midpoint implying annual growth of roughly 22.5%.
Second-quarter revenue is expected to range from $130 million to $133 million, with the midpoint suggesting approximately 16% annual growth.
CEO Highlights Confidence in ARR Expansion
Chief executive Thomas E. Hogan said the company remains optimistic about future growth momentum.
“We delivered solid first-quarter 2026 results and are excited about our prospects to accelerate ARR expansion in the second quarter,” Hogan stated.
Full-Year Guidance Maintained
For full-year 2026, Cellebrite expects ARR between $567 million and $573 million.
The company also forecast annual revenue in the range of $565 million to $571 million, representing approximately 19.5% annual growth at the midpoint.
Adjusted EBITDA for the year is expected to total between $149 million and $155 million.
Profitability and Cash Flow Remain Strong
First-quarter adjusted EBITDA reached $30.6 million, producing a margin of 23.9%.
Trailing 12-month free cash flow totaled $158.6 million, representing a 32% margin.