Cellebrite (CLBT) Fell Due to Below-Expected Outlook, but Core Trends Persist

Carillon Tower Advisers, an investment management company, released its “Carillon Eagle Small Cap Growth Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, equity markets experienced one of their most turbulent periods in recent history. Small-cap stocks managed a rebound in the quarter, recovering from declines at the beginning of the year. Among style indexes, the Russell 2000® Growth Index led the way with an 11.96% gain, outpacing the Russell 2000® Value Index, which rose by 4.96%. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, the Carillon Eagle Small Cap Growth Fund highlighted stocks such as Cellebrite DI Ltd. (NASDAQ:CLBT). Headquartered in Petah Tikva, Israel, Cellebrite DI Ltd. (NASDAQ:CLBT) is a software company that develops solutions for legally sanctioned investigations. The one-month return of Cellebrite DI Ltd. (NASDAQ:CLBT) was 5.88%, and its shares lost 6.29% of their value over the last 52 weeks. On August 18, 2025, Cellebrite DI Ltd. (NASDAQ:CLBT) stock closed at $15.80 per share, with a market capitalization of $3.863 billion.

Carillon Eagle Small Cap Growth Fund stated the following regarding Cellebrite DI Ltd. (NASDAQ:CLBT) in its second quarter 2025 investor letter:

"Cellebrite DI Ltd. (NASDAQ:CLBT), which provides software to help law enforcement investigators extract and analyze data from smartphones, provided an outlook that was below expectations, as there were delays in closing deals with government customers, both in the United States and abroad. Despite the temporary setback, which was due primarily to leadership changes and unsettled budgets, two secular trends remain intact: one is the use of smartphone data in detecting and prosecuting criminal activity; the other is the need to comply with standards to preserve the chain of custody of evidence collected during investigations."

Cellebrite DI Ltd. (NASDAQ:CLBT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held Cellebrite DI Ltd. (NASDAQ:CLBT) at the end of the first quarter, which was 34 in the previous quarter. Cellebrite DI Ltd. (NASDAQ:CLBT) reported revenue of $113.3 million in Q2 2025, up 18% from Q2 2024, driven by subscription revenue growth of 21%. While we acknowledge the potential of Cellebrite DI Ltd. (NASDAQ:CLBT) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Cellebrite DI Ltd. (NASDAQ:CLBT) and shared Greenhaven Road Capital's views on the company. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.