The 17% revenue growth is positive, but the 53% decline in net income and 200bps gross margin compression signal deteriorating unit economics. Monitor next quarter for margin stabilization and operating expense leverage. The SCG acquisition adds drone forensics capability but contributed to higher intangible amortization.
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Executive Summary
Cellebrite reported H1 2026 results with total revenue of $259.4M, up 17% YoY, driven by 23% subscription services growth. However, net income fell 53% to $17.3M from $36.9M, as operating expenses grew 23% and cost of subscription services surged 78%, compressing gross margins from 84% to 82%. The company completed the SCG Canada acquisition for drone forensics and recorded $15.9M in depreciation/amortization. The strong revenue growth is offset by significant margin compression and declining profitability, making the overall read mixed.
Key Facts
- Total revenue for H1 2026 was $259.4M, up 17% from $220.8M in H1 2025.
- Net income fell 53% to $17.3M from $36.9M, with EPS dropping to $0.07 from $0.15.
- Subscription services revenue grew 23% to $194.2M, but cost of subscription services surged 78% to $30.2M.
- Total gross margin contracted to 82% from 84%, with subscription gross margin falling to 87% from 91%.
- Operating expenses grew 23% to $195.7M, with R&D up 29% and G&A up 44%.
- Cash, cash equivalents, short-term deposits and marketable securities totaled $545.7M, up from $535.0M at year-end 2025.
- Operating cash flow was $37.5M, down from $53.5M in the prior year period.
- The company completed the acquisition of SCG Canada Inc. for drone forensics on March 1, 2026, for total consideration of $17.3M.
Financial Impact
Revenue grew $38.6M YoY but net income declined $19.6M. Gross margin compressed 200bps. Operating cash flow declined $16.0M.
Risk Factors
- Cost of subscription services growing at 78% vs 23% revenue growth is unsustainable and may indicate structural margin pressure.
- Operating expenses growing at 23% outpacing revenue growth of 17% suggests negative operating leverage.
- Operating cash flow declining 30% YoY despite higher revenue raises questions about cash conversion quality.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001213900-26-089065 |
| Document: ea030093101ex99-2.htm | 0001213900-26-089065 |
| Document: ea0300931-6k_cellebrite.htm | 0001213900-26-089065 |
| Document: 0001213900-26-089065-index-headers.html | 0001213900-26-089065 |
| Document: 0001213900-26-089065-index.html | 0001213900-26-089065 |
| Document: 0001213900-26-089065.txt | 0001213900-26-089065 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 9, 2026 18d ago | SC 13G | $11.44 $11.15 | ▼ −2.58% | ▼ −1.09% | $11.93 (+4.28%) |
Oct 7, 2026 20d ago | 144 | $11.23 $10.83 | ▼ −3.52% | ▼ −2.54% | $11.93 (+6.28%) |
Aug 27, 2026 8w ago | Insider Cluster | $11.99 $11.45 | ▼ −4.50% | ▼ −4.61% | $11.93 (−0.50%) |
Aug 27, 2026 8w ago | Insider Cluster | $11.99 $11.45 | ▲ +4.50% | ▲ +4.61% | $11.93 (+0.50%) |
Aug 25, 2026 9w ago | Insider Cluster | $11.62 $11.62 | · 0.00% | ▲ +0.12% | $11.93 (+2.67%) |
Aug 24, 2026 9w ago | Insider Cluster | $11.29 $11.85 | ▲ +4.96% | ▲ +5.50% | $11.93 (+5.67%) |
Aug 19, 2026 9w ago | 144 | $11.24 $11.62 | ▲ +3.38% | ▲ +3.77% | $11.93 (+6.14%) |
Aug 13, 2026 10w ago | Insider Cluster | $11.14 $11.05 | ▼ −0.81% | ▲ +0.56% | $11.93 (+7.09%) |
Aug 13, 2026 10w ago | 6-K | $11.14 $11.05 | ▼ −0.81% | ▲ +0.56% | $11.93 (+7.09%) |
Aug 13, 2026 10w ago | 6-K | $10.80 $11.31 | ▼ −4.72% | ▼ −6.69% | $11.93 (−10.46%) |
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