Cellebrite Q1 2026 results and 2026 outlook | CLBT SEC Filing

Financial Outlook

David Barter, Cellebrite’s CFO, said, “Cellebrite’s
ARR growth in the first quarter demonstrated sequential stability as we executed well in anticipation of bringing to market so many new
products and technologies. We’re shifting gears to drive the second quarter with a myriad of exciting opportunities to accelerate
our ARR, deliver strong operating results and generate healthy free cash flow.”

The Company’s second-quarter and full-year 2026 financial expectations
are as follows:

Conference Call Information

Cellebrite will host a live conference call and webcast later today
to review the Company’s first-quarter 2026 financial results and discuss its full-year 2026 outlook. Pertinent details include:

In conjunction with the conference call and webcast, historical financial
tables and supplemental data will be available on the quarterly results section of the Company’s investor relations website at https://investors.cellebrite.com/financial-information/quarterly-results.

Non-GAAP Financial Information and Key Performance
Indicators

This press release includes non-GAAP financial
measures. Cellebrite believes that the use of non-GAAP cost of revenue, non-GAAP gross profit, non-GAAP operating expenses, non-GAAP operating
income, non-GAAP net income, non-GAAP EPS and adjusted EBITDA is helpful to investors. These measures, which the Company refers to as
its non-GAAP financial measures, are not prepared in accordance with GAAP.

The Company believes that the non-GAAP financial measures provide a
more meaningful comparison of its operational performance from period to period, and offer investors and management greater visibility
into the underlying performance of its business:

Free cash flow is calculated as net cash provided by or used in operating
activities less purchases of property and equipment. We believe that free cash flow is a useful indicator of liquidity that provides information
to management and investors about the amount of cash provided by or used in our operations that, after the investments in property and
equipment, can be used for strategic initiatives.

Each of our non-GAAP financial measures is an important tool for financial
and operational decision making and for evaluating our own operating results over different periods of time. The non-GAAP financial measures
do not represent our financial performance under U.S. GAAP and should not be considered as alternatives to operating income or net income
or any other performance measures derived in accordance with GAAP. Non-GAAP measures should not be considered in isolated from, or as
an alternative to, financial measures determined in accordance with GAAP. Non-GAAP financial measures may not provide information that
is directly comparable to that provided by other companies in our industry, as other companies in our industry may calculate non-GAAP
financial results differently, particularly related to non-recurring, unusual items. In addition, there are limitations in using non-GAAP
financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, and exclude expenses that may have
a material impact on our reported financial results. Further, share-based compensation expense has been, and will continue to be for the
foreseeable future, significant recurring expenses in our business and an important part of the compensation provided to our employees.
In addition, the amortization of intangible assets is expected to be a recurring expense over the estimated useful life of the underlying
intangible asset and acquisition-related expenses will be incurred to the extent acquisitions are made in the future. Furthermore, foreign
exchange rates may fluctuate from one period to another, and the Company does not estimate movements in foreign currencies.

A reconciliation of each of these non-GAAP financial
measures to their most comparable GAAP measure is set forth in a table included at the end of this press release, which is also available
on our website at https://investors.cellebrite.com.

In regard to forward-looking non-GAAP guidance, we are not able to
reconcile the forward-looking adjusted EBITDA measure to the closest corresponding GAAP measure without unreasonable efforts because we
are unable to predict the ultimate outcome of certain significant items including, but not limited to, fair value movements, share-based
payments for future awards, tax expense, depreciation and amortization expense, and certain financing and tax items.

This press release also includes key performance indicators, including
annual recurring revenue and dollar-based retention rate.

Annual recurring revenue (“ARR”) is defined as the annualized
value of active term-based subscription license contracts and maintenance contracts related to perpetual licenses in effect at the end
of that period. Subscription license contracts and maintenance contracts for perpetual licenses are annualized by multiplying the revenue
of the last month of the period by 12. The annualized value of contracts is a legal and contractual determination made by assessing the
contractual terms with our customers. The annualized value of maintenance contracts is not determined by reference to historical revenue,
deferred revenue or any other GAAP financial measure over any period. ARR is not a forecast of future revenue, which can be impacted by
contract start and end dates and renewal rates.

Dollar-based net retention rate (“NRR”) is calculated by
dividing customer recurring revenue by base revenue. We define base revenue as recurring revenue we recognized from all customers with
a valid license at the last quarter of the previous year period, during the four quarters ended one year prior to the date of measurement.
We define our customer revenue as the recurring revenue we recognized during the four quarters ended on the date of measurement from the
same customer base included in our measure of base revenue, including recurring revenue resulting from additional sales to those customers.

References to Websites and Social Media Platforms

References to information included on, or accessible through, websites
and social media platforms do not constitute incorporation by reference of the information contained at or available through such websites
or social media platforms, and you should not consider such information to be part of this press release.

Caution Regarding Forward Looking Statements

This document includes “forward-looking statements” within
the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward
looking statements may be identified by the use of words such as “forecast,” “intend,” “seek,” “target,”
“anticipate,” “will,” “appear,” “approximate,” “foresee,” “might,”
“possible,” “potential,” “believe,” “could,” “predict,” “should,”
“could,” “continue,” “expect,” “estimate,” “may,” “plan,” “outlook,”
“future” and “project” and other similar expressions that predict, project or indicate future events or trends
or that are not statements of historical matters. Such forward-looking statements include, but are not limited to, estimated financial
information for the second quarter of 2026 and for fiscal year 2026 including those statements with respect to our prospects to accelerate
ARR expansion in the second quarter; the myriad of exciting opportunities to accelerate our ARR, deliver strong operating results and
generate healthy free cash flow; and those statements regarding quarterly and full-year 2026 revenue and annual recurring revenue, profitability,
earnings and free cash flow; as well as commentary associated with future performance, strategies, prospects, and other aspects of Cellebrite’s
business are based on current expectations that are subject to risks and uncertainties. A number of factors could cause actual results
or outcomes to differ materially from those indicated by such forward-looking statements. These factors include, but are not limited to,
risks related to: Cellebrite’s ability to keep pace with technological advances and challenges and evolving industry standards with
respect to software, artificial intelligence, or device access, to adapt to changing market potential within our markets and to successfully
launch new solutions and add-ons that meet or exceed customer needs; our material dependence on the acceptance of our solutions by domestic
and international law enforcement, public safety, defense and intelligence agencies; real or perceived errors, failures, defects or bugs
in our solutions; licensing of technology from third parties, including our dependence on maintaining those licenses or seeking alternative
solutions; failure to maintain the productivity of sales and marketing personnel, including relating to hiring, integrating and retaining
personnel; intense competition in all of our markets, including risks associated with pricing pressures from and loss of market share
to competitors with greater resources than we have and increasing competition as a result of consolidation in the industry; the misuse
of our solutions by our customers which may achieve suboptimal results or be perceived as incompatible with human rights; our ability
to properly manage our growth as a business, and execute new offerings, developments and strategic opportunities, including joint ventures,
partnerships and acquisitions; our dependence on our customers to renew their subscriptions and purchase additional subscriptions or services
from us; the use of artificial intelligence in our digital investigation platform; challenges associated with large transactions, including
with respect to longer sales cycles, as well as with developing, offering, implementing, and maintaining new solutions; risk of security
vulnerabilities or defects, including cyber-attacks, information technology system breaches, failures or disruptions which are critical
to our operations and maintaining the trust and confidence of our customers; risks associated with political, geo-political and reputational
factors related to our business or operations, including Cellebrite operations in Israel and/or negative publicity, including with respect
to the nature of our solutions; risks associated with our ability to obtain CFIUS approval for the acquisition of Corellium and with our ongoing compliance with national
security agreements entered into with the U.S. government;
risks that our intellectual property rights may not be adequate to protect our business or assets or that others may make claims on our
intellectual property, claim infringement on their intellectual property rights, or claim a violation of their license rights, including
relative to free or open-source-software components we may use risks relating to the regulatory constraints to which we are subject, including
Israeli export laws, our compliance with such laws and related export licenses issued from the government of Israel; risks associated
with different corporate governance requirements applicable to Israeli companies and risks associated with being a foreign private issuer;
risks associated with our significant international operations, including due to our Israeli operations, fluctuations in foreign exchange
rates, rising global inflation, and exposure to regions subject to political or economic instability, including the State of Israel; uncertainties
regarding the impact of changes in macroeconomic and/or global conditions, including as a result of slowdowns, recessions, economic instability,
political unrest, or outbreaks of disease, as well as the resulting impact on information technology spending and government budgets,
on our business and other factors, risks and uncertainties set forth in the section titled “Risk Factors” in Cellebrite’s
annual report on Form 20-F filed with the SEC on March 3, 2026, and in other documents filed by Cellebrite with the U.S. Securities and
Exchange Commission (“SEC”), which are available free of charge at www.sec.gov. You are cautioned not to place undue reliance
upon any forward-looking statements, which speak only as of the date made, in this communication or elsewhere. Cellebrite undertakes no
obligation to update its forward-looking statements, whether as a result of new information, future developments or otherwise, should
circumstances change, except as otherwise required by securities and other applicable laws.

About Cellebrite

Cellebrite’s (Nasdaq: CLBT) mission is to protect communities,
nations and businesses as a global leader in digital investigative and intelligence solutions. More than 7,000 global law enforcement
agencies, defense and intelligence organizations and enterprises trust Cellebrite’s AI-powered software portfolio to make
forensically sound digital data more accessible and actionable. Cellebrite technology allows customers to accelerate nearly
3 million legally sanctioned investigations annually, enhance sovereign security, elevate operational efficacy and efficiency and enable
advanced mobile research and application security. Available via cloud, on-premises and hybrid deployments, Cellebrite’s technology
enables its customers around the globe to advance their missions, elevate public safety and safeguard data privacy. To learn more,
visit us at www.cellebrite.com and https://investors.cellebrite.com and find us on social media @Cellebrite.

Contacts:

Investors Relations
Andrew Kramer

Vice President, Investor Relations & Treasury

investors@cellebrite.com

+1 973.206.7760

Media

Victor Cooper

Sr. Director of Corporate Communications + Content Operations

Victor.cooper@cellebrite.com

+1 404.804.5910

Cellebrite DI Ltd.
First-Quarter
2026 Results Summary
(U.S Dollars in thousands)

Cellebrite DI Ltd.
Condensed
Consolidated Balance Sheets
(U.S. Dollars in thousands)

Cellebrite DI Ltd.
Condensed Consolidated Statements of Income
(U.S Dollars in thousands, except share and per share data)

Cellebrite DI Ltd.
Condensed Consolidated Statements of Cash Flow

(U.S Dollars in thousands, except share and per share data)

Cellebrite DI Ltd.
Reconciliation
of GAAP to Non-GAAP Financial Information
(U.S Dollars in thousands, except share and per share data)

Cellebrite DI Ltd.
Reconciliation of GAAP to Non-GAAP Financial Information
(U.S Dollars in thousands, except
share and per share data)