Cellebrite shares plunge after new CEO cuts 2026 outlook
The Israeli digital intelligence company lowered its ARR and revenue forecasts after longer sales cycles and weaker-than-expected expansion from Inseyets conversions. The company nevertheless raised its adjusted EBITDA guidance.
Israeli digital intelligence company Cellebrite appointed a new CEO and lowered its 2026 outlook on Wednesday, sending its shares down more than 35% at the opening of trading on Nasdaq. Cellebrite dropped to a market cap of around $2.4 billion, its lowest in more than two years.
The company, which develops tools for extracting and analyzing data from digital devices for law enforcement and investigative agencies, announced the appointment of Shiven Ramji as CEO, replacing Thomas Hogan as part of a planned management transition. Ramji, who joined Cellebrite in May 2026 as president of products and technology, will also join the company's board of directors.
Hogan joined Cellebrite as executive chairman in August 2023, became interim CEO in January 2025 and was formally appointed CEO in August 2025.
The leadership change was announced alongside Cellebrite's second-quarter results. Revenue rose 16% year over year to $131.1 million, while GAAP net income fell to $6.4 million from $19.5 million a year earlier. Adjusted EBITDA was $31.8 million, representing an EBITDA margin of 24.2%.
Annual recurring revenue, or ARR, reached $507.8 million, up 21% from a year earlier. However, Cellebrite said ARR came in below its own expectations because of longer sales cycles and lower-than-expected expansion from Inseyets conversions.
The company lowered its full-year 2026 ARR forecast to $550 million-$560 million, representing annual growth of 14%-16%. It also reduced its revenue forecast to $555 million-$561 million, representing growth of 17%-18%.
At the same time, Cellebrite raised its full-year adjusted EBITDA forecast to $153 million-$159 million, with a margin of approximately 28%.
For the third quarter of 2026, Cellebrite expects ARR of $524 million-$528 million, revenue of $145 million-$148 million and adjusted EBITDA of $42 million-$45 million.
“We are making tangible progress with our newer products, which further supports our confidence in the long-term opportunity,” said Ramji. “At the same time, we are taking a more measured view of that contribution in the near term, given elongated sales cycles and the timing of additional new product introductions anticipated for later this year.”
Ramji concluded, “Given these dynamics, in combination with the pace and magnitude of Inseyets expansions, we have lowered our FY26 ARR and revenue outlook. We believe resetting expectations now is the responsible approach and provides a more appropriate foundation from which to execute. At the same time, continued operating discipline has enabled us to raise our FY26 adjusted EBITDA target.”
