Cellebrite (CLBT), a leader in digital investigative solutions, saw its stock surge 18.47% in Wednesday's trading session following the release of its impressive third-quarter 2025 financial results and optimistic future outlook.

The company reported Q3 revenue of $126.03 million, surpassing analyst expectations of $122.01 million and marking an 18% year-over-year increase. Subscription revenue, a key growth driver, jumped 21% to $112.7 million. Cellebrite's Annual Recurring Revenue (ARR) reached $439.8 million, up 19% from the previous year, demonstrating strong customer retention and expansion.

CEO Thomas E. Hogan highlighted the company's "balanced and solid performance," noting significant expansion within the U.S. Federal business segment. This growth, coupled with strong demand in U.S. state and local markets and Latin America, contributed to the overall positive results. The company's Autumn 2025 Release, which introduced new capabilities and integrations to its Digital Investigation Platform, further solidified its market position.

Looking ahead, Cellebrite provided an optimistic outlook for the remainder of 2025 and beyond. The company expects full-year 2025 revenue between $470 million and $475 million, representing a 17% to 18% annual growth. Additionally, Cellebrite anticipates Q4 2025 adjusted EBITDA in the range of $35 million to $38 million, signaling continued strong performance. This positive guidance, combined with the strong Q3 results and expansion in key business segments, likely fueled investor confidence and contributed to the significant stock price increase.