Q3 FY2026
Filed Nov 12, 2026Q3 2026 revenue of $149,022 thousand, up 18% year-over-year; ARR of $528.5 million, up 20%; adjusted EBITDA margin of 36.0%; full-year adjusted EBITDA outlook raised to $163 million to $166 million
The filing prints 20% ARR growth, 18% revenue growth, GAAP and non-GAAP operating income up year-over-year, quarterly free cash flow of $51,797 thousand against $29,950 thousand, and a raised full-year adjusted EBITDA range. Nine-month GAAP operating income and GAAP net income are below the prior-year nine months, and the Corellium acquisition remains under CFIUS review.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total Annual Recurring Revenue (ARR), Sep 30, 2026other | $528.5M | – | up 20% year-over-year |
| Recurring revenue dollar-based net retention rate, Q3 2026other | 116% | – | – |
| Revenue, three months ended Sep 30, 2026GAAP | $149.0M | – | up 18% year-over-year |
| Total subscription revenue, three months ended Sep 30, 2026GAAP | $134.9M | – | a year-over-year increase of 20% |
| Subscription services revenue, three months ended Sep 30, 2026GAAP | $101.2M | – | – |
| Term-license revenue, three months ended Sep 30, 2026GAAP | $33.74M | – | – |
| Other non-recurring revenue, three months ended Sep 30, 2026GAAP | $6.42M | – | – |
| Professional services revenue, three months ended Sep 30, 2026GAAP | $7.69M | – | – |
| Total cost of revenue, three months ended Sep 30, 2026GAAP | $27.98M | – | – |
| Gross profit, three months ended Sep 30, 2026GAAP | $121.0M | – | – |
| Gross margin, three months ended Sep 30, 2026GAAP | 81.2% | – | – |
| Non-GAAP gross profit, three months ended Sep 30, 2026non-GAAP | $127.7M | – | – |
| Non-GAAP gross profit margin, three months ended Sep 30, 2026non-GAAP | 85.7% | – | – |
| Research and development, net, three months ended Sep 30, 2026GAAP | $36.39M | – | – |
| Sales and marketing, three months ended Sep 30, 2026GAAP | $36.83M | – | – |
| General and administrative, three months ended Sep 30, 2026GAAP | $20.95M | – | – |
| Total operating expenses, three months ended Sep 30, 2026GAAP | $94.17M | – | – |
| Operating income, three months ended Sep 30, 2026GAAP | $26.88M | – | – |
| Operating margin, three months ended Sep 30, 2026GAAP | 18.0% | – | – |
| Non-GAAP operating income, three months ended Sep 30, 2026non-GAAP | $51.53M | – | – |
| Non-GAAP operating margin, three months ended Sep 30, 2026non-GAAP | 34.6% | – | – |
| Financial income, net, three months ended Sep 30, 2026GAAP | $4.87M | – | – |
| Tax expense, three months ended Sep 30, 2026GAAP | $5.08M | – | – |
| Net income, three months ended Sep 30, 2026GAAP | $26.66M | – | – |
| Non-GAAP net income, three months ended Sep 30, 2026non-GAAP | $45.55M | – | – |
| Diluted earnings per share, three months ended Sep 30, 2026GAAP | $0.10 | – | – |
| Non-GAAP diluted earnings per share, three months ended Sep 30, 2026non-GAAP | $0.17 | – | – |
| Adjusted EBITDA, three months ended Sep 30, 2026non-GAAP | $53.63M | – | – |
| Adjusted EBITDA margin, three months ended Sep 30, 2026non-GAAP | 36.0% | – | – |
| Net cash provided by operating activities, three months ended Sep 30, 2026GAAP | $56.58M | – | – |
| Free cash flow, three months ended Sep 30, 2026non-GAAP | $51.80M | – | – |
| Free cash flow margin, three months ended Sep 30, 2026non-GAAP | 34.8% | – | – |
| Free cash flow, trailing twelve months ended Sep 30, 2026non-GAAP | $166.0M | – | – |
| Free cash flow margin, trailing twelve months ended Sep 30, 2026non-GAAP | 30.9% | – | – |
| Revenue, nine months ended Sep 30, 2026GAAP | $408.5M | – | – |
| Gross profit, nine months ended Sep 30, 2026GAAP | $332.9M | – | – |
| Gross margin, nine months ended Sep 30, 2026GAAP | 81.5% | – | – |
| Operating income, nine months ended Sep 30, 2026GAAP | $42.94M | – | – |
| Operating margin, nine months ended Sep 30, 2026GAAP | 10.5% | – | – |
| Net income, nine months ended Sep 30, 2026GAAP | $43.97M | – | – |
| Diluted earnings per share, nine months ended Sep 30, 2026GAAP | $0.17 | – | – |
| Non-GAAP operating income, nine months ended Sep 30, 2026non-GAAP | $109.9M | – | – |
| Non-GAAP operating margin, nine months ended Sep 30, 2026non-GAAP | 26.9% | – | – |
| Non-GAAP net income, nine months ended Sep 30, 2026non-GAAP | $105.9M | – | – |
| Non-GAAP diluted earnings per share, nine months ended Sep 30, 2026non-GAAP | $0.40 | – | – |
| Adjusted EBITDA, nine months ended Sep 30, 2026non-GAAP | $116.0M | – | – |
| Adjusted EBITDA margin, nine months ended Sep 30, 2026non-GAAP | 28.4% | – | – |
| Net cash provided by operating activities, nine months ended Sep 30, 2026GAAP | $94.06M | – | – |
| Free cash flow, nine months ended Sep 30, 2026non-GAAP | $83.16M | – | – |
| Free cash flow margin, nine months ended Sep 30, 2026non-GAAP | 20.4% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Subscription services (revenue line, three months ended Sep 30, 2026)The filing prints the prior-year figure of $84,195 thousand but no percentage change for this line and no driver specific to it. | $101.2M | – | – |
| Term-license (revenue line, three months ended Sep 30, 2026)The filing prints the prior-year figure of $28,531 thousand but no percentage change or driver specific to this line. The CFO states that the full-year revenue targets reflect less hardware revenue compared with the third quarter. | $33.74M | – | – |
| Other non-recurring (revenue line, three months ended Sep 30, 2026)The filing prints the prior-year figure of $5,504 thousand but no percentage change or driver specific to this line. | $6.42M | – | – |
| Professional services (revenue line, three months ended Sep 30, 2026)The filing prints the prior-year figure of $7,799 thousand but no percentage change or driver specific to this line. | $7.69M | – | – |
Q4 2026 and full-year 2026, as of 11/12/26 outlook
- RevenueQ4 2026: $145 million - $150 million; full-year 2026: $553 million - $558 million
- NoteFull-year 2026 ARR: $550 million - $560 million (reaffirmed per the CFO)
- NoteFull-year 2026 ARR annual growth: 14% - 16%
- NoteQ4 2026 annual growth of revenue: 13% - 16%
- NoteFull-year 2026 annual growth of revenue: 16% - 17%
- NoteQ4 2026 adjusted EBITDA: $47 million - $50 million
- NoteFull-year 2026 adjusted EBITDA: $163 million - $166 million (raised per the release)
- NoteQ4 2026 adjusted EBITDA margin: 32% - 33%
- NoteFull-year 2026 adjusted EBITDA margin: 29% - 30%
- NoteFull-year 2026 free cash flow margin: approximately 30%
Capital returns
- The release prints no share repurchase or dividend figures for the period.
- Proceeds from exercise of options to shares: $1,318 thousand (three months ended Sep 30, 2026) against $3,958 thousand (prior-year quarter); $5,569 thousand (nine months 2026) against $19,075 thousand (nine months 2025).
- Proceeds from Employee Share Purchase Plan: $1,300 thousand (three months 2026) against $1,309 thousand (prior-year quarter); $4,168 thousand (nine months 2026) against $3,638 thousand (nine months 2025).
What drove it
- The CEO attributes the topline expansion to strong international performance, another acceleration in U.S. Federal, and Genesis gaining traction in its first full quarter.
- The CEO states that the combination of revenue growth and prudent investment enabled a meaningful increase in operating profitability and free cash flow.
- The CFO states that the third-quarter free cash flow reflects strong operating results.
- The CFO states that the full-year revenue targets were fine-tuned to reflect more ratable revenue from cloud and AI and less hardware revenue compared with the third quarter.
- The CFO states that the adjusted EBITDA outlook was raised to reflect the outperformance from the third quarter.
- Amortization of intangible assets rose to $7,244 thousand in the quarter from $934 thousand in the prior-year quarter, as printed in the non-GAAP reconciliation.
Concerns
- Nine-month GAAP operating income of $42,943 thousand is below $45,675 thousand in the prior-year nine months, and nine-month GAAP net income of $43,965 thousand is below $57,065 thousand. Non-GAAP operating income for the same period rose to $109,921 thousand from $84,165 thousand. The two measures move in opposite directions over the nine months.
- Nine-month GAAP diluted EPS is $0.17 against $0.23 in the prior-year period, while non-GAAP diluted EPS is $0.40 against $0.37.
- Gross margin on a GAAP basis is 81.2% for the quarter against 83.9% in the prior-year quarter, and 81.5% for the nine months against 84.0%.
- Acquisition of Corellium remains under review by CFIUS. The release states the company is seeking to address CFIUS concerns in lieu of potential divestment, has not received a final and binding decision, and cannot predict the outcome.
- Tax expense for the quarter is $5,085 thousand against $4,099 thousand in the prior-year quarter, and nine-month tax expense is $12,597 thousand against $7,342 thousand.
- Trade receivables increased by $(29,132) thousand in the quarter and $(34,761) thousand in the nine months within operating cash flow.
What to watch
- Q4 2026 revenue of $145 million - $150 million and full-year revenue of $553 million - $558 million, against the nine-month revenue of $408,461 thousand.
- Full-year ARR of $550 million - $560 million, against ARR of $528.5 million at Sep 30, 2026.
- Q4 2026 adjusted EBITDA margin of 32% - 33%, against the 36.0% adjusted EBITDA margin printed for the third quarter.
- The CFIUS review of the Corellium acquisition and the outcome of the proposed redomiciliation to the United States, which is subject to shareholder and regulatory approvals.
- Continued development of Genesis, which the release describes as the foundation for the next-generation platform, and the proportion of ratable cloud and AI revenue against hardware revenue.
- The 2027 planning cycle, which the release says will focus on durable, profitable ARR growth and further improvement in free cash flow margin.
Balance sheet and cash flow
- Cash and cash equivalents: $223,055 thousand at Sep 30, 2026 against $124,457 thousand at Dec 31, 2025.
- Short-term deposits: $121,207 thousand at Sep 30, 2026 against $161,049 thousand at Dec 31, 2025.
- Marketable securities, current: $139,607 thousand at Sep 30, 2026 against $151,544 thousand at Dec 31, 2025.
- Marketable securities, non-current: $109,410 thousand at Sep 30, 2026 against $97,959 thousand at Dec 31, 2025.
- Total assets: $1,068,486 thousand at Sep 30, 2026 against $938,852 thousand at Dec 31, 2025.
- Total liabilities: $489,179 thousand at Sep 30, 2026 against $454,534 thousand at Dec 31, 2025.
- Total shareholders' equity: $579,307 thousand at Sep 30, 2026 against $484,318 thousand at Dec 31, 2025.
- Deferred revenues, current: $295,513 thousand at Sep 30, 2026 against $277,583 thousand at Dec 31, 2025.
- Intangible assets, net: $117,928 thousand at Sep 30, 2026 against $81,469 thousand at Dec 31, 2025.
- Goodwill: $119,559 thousand at both Sep 30, 2026 and Dec 31, 2025.
- The release prints no borrowings or debt balance.
- Nine months 2026 cash flow: purchase of intangible assets $(24,089) thousand (nine months 2025: none printed); cash paid in conjunction with acquisitions, net of acquired cash, $(15,278) thousand (nine months 2025: none printed).
- Trade receivables increase in the nine months 2026 operating cash flow reconciliation: $(34,761) thousand, against $(20,435) thousand in the nine months 2025.
- Free cash flow for the quarters of 2026 as printed: Q3 $51,797 thousand; Q2 $14,521 thousand; Q1 $16,844 thousand; trailing twelve months $166,017 thousand.
Analysis
Cellebrite reported third-quarter 2026 revenue of $149,022 thousand, up 18% from $126,029 thousand, with subscription revenue of $134,905 thousand, up 20%. Total ARR was $528.5 million, up 20% year-over-year, and the recurring revenue dollar-based net retention rate was 116%. Within the revenue table, total subscription grew from $112,726 thousand to $134,905 thousand, while professional services was nearly flat at $7,692 thousand against $7,799 thousand. The release does not print percentage changes for the individual revenue lines other than total subscription, so the mix shift between subscription services, term-license and other lines can be read only from the printed figures.
Profitability improved on the non-GAAP and quarterly GAAP lines. GAAP operating income rose to $26,875 thousand from $18,990 thousand, with an operating margin of 18.0% against 15.1%. Non-GAAP operating income rose to $51,530 thousand from $35,970 thousand, a 34.6% margin against 28.5%. Adjusted EBITDA was $53,625 thousand, a 36.0% margin against 29.9%. GAAP gross margin fell to 81.2% from 83.9%, while the release prints a non-GAAP gross profit margin of 85.7%. Amortization of intangible assets was $7,244 thousand in the quarter against $934 thousand a year earlier, and the release presents it as a non-GAAP adjustment. Research and development rose to $36,387 thousand from $28,124 thousand, while sales and marketing fell to $36,831 thousand from $38,800 thousand.
For the nine months, the picture is mixed. Revenue was $408,461 thousand against $346,854 thousand, and non-GAAP operating income was $109,921 thousand against $84,165 thousand. GAAP operating income was $42,943 thousand against $45,675 thousand, GAAP net income was $43,965 thousand against $57,065 thousand, and GAAP diluted EPS was $0.17 against $0.23. The release does not explain the nine-month GAAP decline beyond the non-GAAP adjustments it prints.
Cash generation was the strongest part of the quarter. Operating cash flow was $56,581 thousand and free cash flow was $51,797 thousand, against $33,272 thousand and $29,950 thousand. Free cash flow for the trailing twelve months was $166,017 thousand, a 30.9% margin. Cash and cash equivalents rose to $223,055 thousand from $124,457 thousand at December 31, 2025, and total assets increased to $1,068,486 thousand. The release prints no borrowings. Share repurchases and dividends are not printed.
The outlook has two moves. The company reaffirmed full-year ARR of $550 million to $560 million and fine-tuned full-year revenue to $553 million to $558 million, which the CFO attributes to more ratable cloud and AI revenue and less hardware revenue than in the third quarter. Full-year adjusted EBITDA was raised to $163 million to $166 million, and the release describes this as reflecting third-quarter outperformance. Fourth-quarter guidance is revenue of $145 million to $150 million and adjusted EBITDA of $47 million to $50 million. No prior outlook was supplied with this filing, so no comparison against earlier guidance is made here. The Corellium acquisition remains under CFIUS review and the redomiciliation to the United States remains subject to shareholder and regulatory approvals.
Management, verbatim
Cellebrite executed better in the third quarter, with ARR, revenue and adjusted EBITDA all finishing above our targets.
Shiv Ramji, Chief Executive Officer
Cellebrite's third-quarter free cash flow of $51.8 million reflects our strong operating results.
David Barter, Chief Financial Officer
As a result of our strong third-quarter performance, we have raised our 2026 adjusted EBITDA outlook.
Shiv Ramji, Chief Executive Officer
Not in the filing
stated, not guessed- Prior-year and prior-quarter percentage changes for the subscription services, term-license, other non-recurring and professional services revenue lines.
- Prior-year percentage change for gross profit, operating expenses, operating income, net income, adjusted EBITDA and free cash flow in dollar terms.
- Prior-quarter (Q2 2026) figures for the income statement lines; the release prints only the three-month current and prior-year periods and the nine-month periods.
- Revenue or ARR by geography, by business line, or by segment beyond the four revenue lines in the income statement.
- Prior-year ARR and prior-year net retention rate.
- Prior-year full-year revenue, needed to confirm the printed full-year growth range.
- Share repurchase and dividend amounts; the release prints none.
- Debt balance or borrowings; the release prints none.
- Previous period outlook; no prior guidance was supplied, so vs_prior_guidance is empty.
- Consensus estimates, analyst expectations and share price reaction; not in the document.
- Prior-year Q3 2025 cash and cash equivalents and total assets at the same date.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.