Welcome to the Cellebrite first quarter 2025 f inancial results conference call. At this time, all participants have been placed on a listen-only mode, and the floor will be open for questions following the presentation. If you would like to ask a question at that time, please press star one on your telephone keypad. If at any point your question has been answered, you may remove yourself from the queue by pressing star two. So others can hear your questions clearly, we ask that you pick up your handsets for best sound quality. Lastly, if you should require operator assistance, please press star zero. I would now like to turn the call over to your first speaker today, Mr. Andrew Kramer. Mr. Kramer, the floor is yours.
Thank you very much, Erica. Welcome, everybody, to Cellebrite's first quarter 2025 financial results call. I'm joined here today at our U.S. headquarters outside of Washington, D.C., by our primary speakers, Tom Hogan, Cellebrite's interim CEO, and Dana Gerner, Cellebrite's CFO. Joining us in person is Marcus Jewell, our CRO, and Ronnen Armon, our Chief Products and Technology Officer, is participating remotely. Marcus and Ronnen will be available during Q&A. There's a slide presentation that accompanies our prepared remarks. Please advance the slides in the webcast viewer to follow our commentary. We'll call out the slide number we're referring to in our remarks. This call is being recorded, and a replay of the recording will be made available on our website shortly after the call, along with a copy of the prepared remarks.
Starting on slide number two, a copy of today's press release and financial statements, including GAAP to non-GAAP reconciliations, the slide presentation, and the quarterly financial tables and supplemental historical financial information for each quarter of the past couple of years are available on the investor relations website at investors.cellebrite.com. Also, unless stated otherwise, our discussion of our first quarter 2025 financial metrics, as well as the financial metrics provided in our outlook, will be done on a non-GAAP basis only, and all historical comparisons are with the first quarter of 2024. In addition, please note that statements made during this call that are not statements of historical facts constitute forward-looking statements. All forward-looking statements are subject to risks and uncertainties and other factors that could cause matters expressed or implied by those forward-looking statements not to occur.
They could also cause actual results to differ materially from historical results and/or from forecasts. Some of these forward-looking statements are discussed under the heading Risk Factors and elsewhere in the company's annual report on Form 20F filed with the SEC on March 18, 2025. The company does not undertake to update any forward-looking statements to reflect future events or circumstances. Slide number three provides the agenda of the topics we'll cover on today's call. With that being said, I'll now turn the call over to Tom Hogan. Tom?
Thanks, Andy. Let's just jump right in. Cellebrite delivered strong 23% year-on-year ARR growth in the first quarter. Consistent with our stewardship in managing both revenue and spend, we also delivered 34% year-on-year growth in our adjusted EBITDA, resulting in a 22% margin. The combination delivered a 45 rule of X in the quarter and 48 for the trailing 12 months, both within our committed range of balanced performance. We remained committed to growth as our priority while dynamically tuning our spending to support our bottom-line objectives. Overall, our value proposition continues to resonate in the market. Interest in our platform remains healthy. Uptake on our Insights solution continues to increase, and customers are realizing the brand promise of justice accelerated. Strength and overachievement in the U.S. state and local, LATAM, and the Asia-Pacific regions were offset by modest shortfalls in the U.S. federal segment and our EMEA geography.
The strength of our total performance was a byproduct of our global diversification and the range of our solutions across federal, state and local, defense, intelligence, and the private sector. Before adding further context to our federal business, I'll highlight two important barometers that continue to signal strength. First, we remain on track with our overall Insights migration, which is a direct reflection of the value delivered with our core digital forensics offering. We finished the first quarter with over 30% of our install base converted, and we've remained on track to hit our 2025 objective of a 50% conversion. Second, as we've shared, extending our value proposition to the critical cloud-based Guardian product as adoption of and interest in this purpose-built platform for collaboration and chain of custody continues to accelerate. We delivered our third consecutive quarter of year-over-year ARR growth of over 100%.
The power of the Cellebrite platform is also reflected in our pipeline, where transactions that involve two or more of our flagship solutions carry a disproportionate increase in average deal size, in many cases representing 10X the size of Insights standalone transactions. Now, let me add some perspective around our federal business. I first want to remind people that this business has produced a 25% CAGR in ARR over each of the past three years, and it represents roughly 17% of our 2024 revenue. Today, despite current volatility, our view is that the opportunities for future growth not only remain attractive but have increased meaningfully over the past two quarters. This is a function of multiple current and emerging tailwinds, starting with the structural changes associated with the recent launch of our Cellebrite Federal Solutions Unit and our ongoing investment to achieve FedRAMP authorization to operate.
These actions are amplified by the emerging macros around the increased sophistication of technology used in the pursuit of crime, including AI, along with the increased alignment of our portfolio with the new administration's focus on securing our borders, mitigating the fentanyl epidemic and overall drug trafficking, reducing the heinous human trafficking industry, and finally improving the overall productivity of all government agencies. While the short-term federal environment remains choppy, our full-year 2025 pipeline continues to expand. Our solutions are simply mission-critical to safety and security across all levels of government, and the spend related to the Cellebrite solutions remains small relative to both our societal impact and overall department budgets.