Here’s Greenhaven Road Capital’s Views on Cellebrite (CLBT)

Greenhaven Road Capital, an investment management company, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter, the fund returned approximately -9%, bringing the YTD returns to approximately -9%. The factors that affected the portfolio during the quarter included a lack of direct investment in AI, no overlap with the S&P 500 and Russell 2000, and insufficient ownership of small, high growth, yet unprofitable companies that have driven the recent rally and benefited from the current AI landscape. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, Greenhaven Road Capital 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 -21.27%, and its shares lost 16.17% of their value over the last 52 weeks. On November 7, 2025, Cellebrite DI Ltd. (NASDAQ:CLBT) stock closed at $15.40 per share, with a market capitalization of $3.765 billion.

Greenhaven Road Capital stated the following regarding Cellebrite DI Ltd. (NASDAQ:CLBT) in its third quarter 2025 investor letter:

“Digital forensics enterprise software company Cellebrite DI Ltd. (NASDAQ:CLBT) is another top five holding that is down for the year. As the winners and losers of AI are being sorted out, software companies have been placed in the loser bucket and software multiples have declined. Altimeter Capital’s data (link & link) indicates that the Enterprise Value to Next 12 Months Revenue for “medium growth” companies (those with growth rates between 15% and 25%), which most closely describes Cellebrite, declined from 10.6X at the start of the year to 7.8X at the end of Q3. This implies a decline of 26% on this metric and a headwind for all medium growth software companies.

One of the causes for software multiple compression is likely the rise of AI-powered software tools and “vibe coding” which reduce the barrier to software development and improve the efficiency of developers. New tools increase the likelihood that businesses will build custom solutions vs. purchasing from legacy software providers…” (Click here to read the full text)

Cellebrite DI Ltd. (NASDAQ:CLBT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 38 hedge fund portfolios held Cellebrite DI Ltd. (NASDAQ:CLBT) at the end of the second quarter, up from 30 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 risk and potential of Cellebrite DI Ltd. (NASDAQ:CLBT) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Cellebrite DI Ltd. (NASDAQ:CLBT) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Cellebrite DI Ltd. (NASDAQ:CLBT) and shared ClearBridge Small Cap Growth Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q3 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.