Cellebrite (NASDAQ: CLBT), a global leader in digital investigative solutions, saw its stock price plummet 5.07% in pre-market trading on Wednesday following the release of its first-quarter 2025 financial results. The company reported mixed performance, beating earnings estimates but falling short on revenue and net income targets.

For Q1 2025, Cellebrite posted adjusted earnings per share of $0.10, surpassing the analyst consensus estimate of $0.08. This represents a 25% increase from the same period last year. However, the company's quarterly revenue of $107.55 million missed the analyst expectations of $109.36 million, despite showing a 20.06% year-over-year growth. Additionally, Cellebrite's net income of $17.4 million fell short of the estimated $20.2 million.

While Cellebrite highlighted strong growth in Annual Recurring Revenue (ARR) of 23% year-over-year to $408.0 million and an impressive adjusted EBITDA margin of 22.0%, investors seemed more concerned with the company's revised full-year 2025 guidance. CFO Dana Gerner announced that Cellebrite is maintaining its full-year ARR and EBITDA targets but adjusting its revenue expectations. This adjustment reflects anticipated lower one-time professional services revenue from the U.S. Federal vertical and the timing of new business in the second half of the year. The lowered revenue guidance likely contributed to the stock's pre-market decline as investors reassess the company's growth prospects for the year.