KLTR

This article first appeared on GuruFocus. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Kaltura Inc (NASDAQ:KLTR) exceeded the high end of its guidance for both revenue and adjusted EBITDA in Q2 2026, with total revenue of $46.9 million (up 5% YoY) and adjusted EBITDA of $5.9 million (up 44% YoY). The company achieved a record non-GAAP gross margin of 75% and a record non-GAAP subscription gross margin of 79%, reflecting improved operational efficiencies and a favorable mix shift. Kaltura Inc (NASDAQ:KLTR) signed a record 14 new deals including AI offerings, doubling its previous record, with 9 deals involving its new agentic avatars product and 8 deals with new logos across diverse industries. The AI-related sales pipeline has grown to over 500 opportunities, representing approximately $17 million in non-weighted potential annual contract value (ACV), with a third coming from new logos. The company delivered its strongest gross retention performance since Q4 2022, and raised its full-year 2026 guidance for subscription revenue, total revenue, and adjusted EBITDA. Kaltura Inc (NASDAQ:KLTR) is positioning itself in two large market opportunitiesagentic revenue engagement and agentic learning and enablementeach estimated at over $20 billion, with a clear product roadmap for the second half of 2026. Kaltura Inc (NASDAQ:KLTR)'s M&T (Media & Telecom) segment continued to decline, with total revenue down 10% YoY and subscription revenue down 6% YoY, reflecting elevated churn from 2025. Professional services revenue declined significantly, down 40% YoY overall, which the company attributes to its strategic focus on recurring subscription revenue but still impacts total revenue growth. Net dollar retention (NDR) remained weak at 96%, down from 101% in the same quarter last year, indicating ongoing challenges with customer expansion and upselling. The company expects near-term pressure on retention from legacy contracts, including an anticipated roll-off of certain Path Factory customers, which could weigh on future results. Revenue contribution from the 14 new AI deals remains limited, with a combined total contract value of approximately $1 million, and the company expects only a modest ramp in the second half of 2026 with a more meaningful impact in 2027. Kaltura Inc (NASDAQ:KLTR) experienced FX headwinds of approximately $1 million in the quarter, and the company's cash flow from operations was negative at $2 million, a decline from positive cash flow in Q2 2025. Warning! GuruFocus has detected 4 Warning Signs with KLTR. Is KLTR fairly valued? Test your thesis with our free DCF calculator. Q: Can you talk about distribution efforts for the new Avatar technology, how you are building the pipeline, and where you see the most interesting opportunities?A: Ron Yucel, CEO: The AI space is driving new logo acquisition, with about 33% of the pipeline currently from new logos. We have a couple of hundred agentic avatar opportunities, about 100 for the Avatar video production studio, and 60+ active or scoped proofs of concept. Our go-to-market is divided by verticals (EDU, M&T, enterprise) and geography, with the US leading. We are also seeing interesting channel opportunities. We have four main go-to-market motions: conversational agents, AI content creation, cross-sales between Path Factory and Kaltura, and full bundle wins. These are being deployed across verticals, regions, and use cases (customer, employee, learner, and audience journeys). Q: Can you unpack the sequential ARR increase, specifically how much was M&A driven versus organic, and what are your expectations for Path Factory attrition?A: Ron Yucel, CEO: Path Factory contributed $4.9 million in revenue in Q2. We expect some attrition in the Path Factory base over the next few quarters, which was already baked into our guidance. Excluding one-time on-prem revenue in Q1, the ENT business was flattish, which is expected seasonally. The M&T decline was as expected. We are guiding for a sequential decline in Q3 due to Path Factory headwinds and conservatism, but we expect the rest of the business and AI opportunities to overtake that and drive sequential pickup into Q4. Q: How are you managing the people and process side of rolling out your new agentic and avatar capabilities? Are you retraining the existing sales force or hiring new skills?A: Ron Yucel, CEO: This is an evolution, not a revolution. We are retraining our existing sales force, currently running a 3-day "summer camp" training session. The customers and buyers are largely the same, and the integration with Path Factory is going well. We are hiring more diverse talent, but our existing relationships and product mix are playing strongly into the new motions. We are enabling the team to sell the two new comprehensive solutions: agentic revenue engagement and agentic learning and enablement. Q: What is driving the expected churn on the Path Factory side? Is it roadmap repricing or a refocus of R&D efforts?A: Ron Yucel, CEO: Path Factory was a declining revenue company before acquisition due to positioning of its standalone product. We acquired it to be the "brains" of our agentic motion, combining its content and user intelligence with our experience and content creation layers. While we see renewed interest in the standalone product, we expect the core to "glide" due to past relationships and conservatism. The big opportunity is the combination into our agentic revenue and learning solutions, where Path Factory's orchestration brain is a key differentiator. Q: Can you provide more detail on the 14 new AI deals signed in Q2, including the breakdown by product and customer type?A: Ron Yucel, CEO: We signed a record 14 new deals including AI offerings, doubling our previous record. Nine included our new agentic avatars product, four had six-figure total contract values, and eight were with new logos. The deals span six industries: higher education (4), real estate (3), technology (2), consulting/BPO (2), financial services (2), and media/telecom (1). Use cases include personalized employee onboarding, learner journeys, customer engagement, and lead qualification. The combined TCV is approximately $1 million, representing initial footholds for expansion. Q: What is the current AI-related pipeline, and how should we interpret the $17 million in non-weighted potential ACV?A: Ron Yucel, CEO: We have more than 500 AI-related opportunities in the pipeline, representing approximately $17 million in non-weighted potential ACV. This is a non-weighted number including all stages, so not all will convert. About a third comes from new logos. By industry, over a third is from education/tech/publishers, 25% from media/telecom, and 40% from enterprises. The pipeline includes over 200 agentic avatar opportunities and close to 100 for the video production studio. We view this as an encouraging initial indicator given our go-to-market is still developing. Q: Can you elaborate on the two new comprehensive solutionsagentic revenue engagement and agentic learning and enablementand their market opportunities?A: Ron Yucel, CEO: The agentic revenue engagement solution combines video, content intelligence, and conversational AI into an intelligent buyer engagement platform, addressing a market opportunity of more than $20 billion growing at over 15% annually. The agentic learning and enablement solution brings together AI-generated content, conversational avatars, AI tutors, and personalized journeys for employees, customers, and students, representing another $20 billion+ market. We believe AI is converging these categories, and platforms with a common content and intelligence layer will be advantaged. Q: What drove the record non-GAAP gross margin of 75% in Q2, and how should we think about profitability going forward?A: Laron Sharon, EVP of FP&A and Interim Principal Financial Officer: The record gross margin was driven by a record non-GAAP subscription gross margin of 79%, reflecting the mix shift toward higher-margin subscription revenue, operating efficiencies, and improved unit economics. Adjusted EBITDA was $5.9 million, up 44% year-over-year, with a margin of 12%, up 300 basis points. We continue to balance investing in our AI roadmap with expanding non-GAAP profitability and cash flow generation. Q: Can you provide more color on the Q3 and full-year 2026 guidance, particularly the sequential decline in subscription revenue?A: Laron Sharon, EVP of FP&A and Interim Principal Financial Officer: For Q3, we expect subscription revenue between $43.9 million and $44.6 million (5-6% YoY growth) and total revenue between $45.8 million and $46.5 million (4-6% YoY growth). For the full year, we are raising guidance: subscription revenue between $176.6 million and $178.6 million (3-4% growth) and total revenue between $183 million and $185 million (1-2% growth For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Kaltura, Inc.? Here are five stocks we like better. Q2 results exceeded guidance: Revenue rose 5% year over year to $46.9 million, subscription revenue increased 8% to $45.6 million, and adjusted EBITDA jumped 44% to $5.9 million. Non-GAAP gross margin reached a record 75%. AI momentum accelerated: Kaltura signed 14 AI-related deals, including eight with new customers, worth approximately $1 million in total contract value. Its AI pipeline surpassed 500 opportunities representing about $17 million in potential annual contract value, though management expects meaningful revenue growth mainly in 2027. Full-year outlook raised: Kaltura now expects 2026 subscription revenue of $176.6 million to $178.6 million, total revenue of $183 million to $185 million, and adjusted EBITDA of $15.8 million to $17.2 million. Management cautioned that legacy PathFactory customer revenue will likely decline over the next several quarters before recovering. Kaltura (NASDAQ:KLTR) reported second-quarter 2026 results above the high end of its guidance range, citing subscription revenue growth, record non-GAAP gross margin and growing early commercial activity for its artificial-intelligence products. Total revenue for the quarter ended June 30 was $46.9 million, up 5% both sequentially and from a year earlier. Subscription revenue rose 8% year over year to $45.6 million, while professional services revenue fell 14% to $1.3 million as the company continued to emphasize recurring subscription revenue. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Adjusted EBITDA increased 44% from the prior-year period to $5.9 million, above the company’s prior guidance of $2 million to $3 million. Kaltura reported a GAAP net loss of $5.5 million, or $0.04 per diluted share, compared with a $7.8 million loss, or $0.05 per share, a year earlier. Non-GAAP net profit was $2.3 million, or $0.01 per share. GAAP gross profit was $34.5 million, producing a 74% gross margin, up 300 basis points from the second quarter of 2025. Non-GAAP gross margin reached a record 75%, including a record 79% non-GAAP subscription gross margin, according to Executive Vice President of FP&A and interim Principal Financial Officer Liron Sharon. → 3 Drone Stocks That Should Soar After the Summer Slump Sharon attributed the year-over-year margin expansion to a greater mix of higher-margin subscription revenue, operating efficiencies and unit economics. Enterprise, Education and Technology revenue totaled $36.8 million, up 11% year over year, while subscription revenue in the segment rose 12% to $36.4 million. Media and Telecom revenue was $10.1 million, down 10% from a year earlier, with subscription revenue declining 6% to $9.2 million. Annualized recurring revenue was $184.6 million, up 9% sequentially and 8% year over year. Remaining performance obligations were $164.3 million, up 6% sequentially but down 1% from the prior year. Kaltura expects to recognize 71% of that amount as revenue over the next 12 months. Net dollar retention was 96%, compared with 95% in the first quarter and 101% in the year-earlier quarter. Sharon said the company achieved its strongest gross retention performance since the fourth quarter of 2022, though management expects some near-term pressure from legacy contracts, including anticipated roll-offs among certain PathFactory customers. → The Bitcoin Comeback May Already Be Underway—2 ETFs for Exposure Chief Executive Officer Ron Yekutiel said the quarter’s most significant development was a rise in new customer deals involving Kaltura’s AI offerings. The company signed 14 AI-related deals during the period, double its prior record. Nine involved its Agentic Avatars product, four carried six-digit total contract values, and eight were with new customers. The deals spanned education, real estate, technology, consulting and business-process outsourcing, financial services, and media and telecommunications. Use cases included employee onboarding and training, personalized learning, customer engagement, marketing, property discovery, lead qualification and conversational advertising. The combined total contract value of the 14 AI-related deals was about $1 million. Yekutiel said the revenue impact remains limited, describing the contracts as initial footholds that could expand to more users, business units and use cases over time. Management continues to expect initial contributions from the newer products in the second half of 2026, with a more meaningful ramp anticipated in 2027. Kaltura said its AI-related pipeline includes more than 500 opportunities across stages of engagement, representing approximately $17 million in non-weighted potential annual contract value. The company emphasized that the figure includes opportunities that may not convert and that many discussions remain in early stages. More than 200 pipeline opportunities involve Agentic Avatars, while nearly 100 involve the Avatar Video Production Studio. The company also cited more than 60 active or in-development proofs of concept. Roughly one-third of potential AI pipeline value is associated with personalized employee journeys, another third with learner experiences, and the remainder with customer, partner and audience-facing applications. Kaltura continued integrating PathFactory, which it acquired to add content intelligence and customer-journey orchestration capabilities. Yekutiel said PathFactory contributed $4.9 million in second-quarter revenue, but management expects revenue from its existing customer base to decline over the next several quarters before recovering. He said Kaltura’s strategy is not centered on selling PathFactory as a standalone product, but on using its intelligence and orchestration capabilities as part of a broader agentic platform. The company is training its sales organization and introducing two packaged offerings: Agentic Revenue Engagement and Agentic Learning and Enablement. The revenue-engagement offering combines rich media, content intelligence and conversational AI to support buyer-intent analysis, personalized engagement, next-best-content recommendations, follow-up automation and digital sales rooms. The learning-and-enablement offering is designed to combine AI-generated learning content, conversational avatars, tutoring, coaching simulations, assessments and personalized learning paths. For the third quarter, Kaltura expects subscription revenue of $43.9 million to $44.6 million, total revenue of $45.8 million to $46.5 million, and adjusted EBITDA of $2 million to $3 million. For full-year 2026, the company raised and narrowed its outlook. It now expects subscription revenue of $176.6 million to $178.6 million, representing growth of 3% to 4%; total revenue of $183 million to $185 million, up 1% to 2%; and adjusted EBITDA of $15.8 million to $17.2 million. Kaltura ended the quarter with $35.5 million in cash equivalents and marketable securities. Net cash used in operating activities was $2 million, and Sharon said the company expects to generate operating cash flow in the third and fourth quarters, consistent with its historical seasonality. Kaltura, Inc (NASDAQ: KLTR) is a leading provider of video technology solutions designed to empower organizations to create, manage, distribute and monetize video content at scale. The company's cloud-native platform supports an array of use cases including enterprise communications, online learning, virtual events, media delivery and over-the-top (OTT) television services. By combining open-source roots with software-as-a-service (SaaS) flexibility, Kaltura offers organizations the ability to tailor their video workflows and integrate seamlessly with existing collaboration, learning management and content management systems. Key offerings from Kaltura include a comprehensive video management system, live streaming and video conferencing capabilities, lecture capture for educational institutions, virtual events and webinars, and turnkey OTT solutions. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Kaltura Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

The enterprise software company exceeded second-quarter guidance, reported record AI-related customer wins, and highlighted growing commercial traction for its agentic digital experience platform while maintaining its full-year outlook. Kaltura (NASDAQ:KLTR) exceeded second-quarter guidance with revenue rising 5% to $46.9 million and adjusted EBITDA increasing to $5.9 million. The company signed a record 14 AI-related deals during the quarter, including nine involving its Agentic Avatars technology and eight with new customers. Annualized recurring revenue (ARR) increased 8% to $184.6 million, while subscription revenue grew 8% year over year. Record non-GAAP gross margin of 75% and improved operating profitability reflected continued operational efficiency. Management expects stronger bookings momentum in the second half of 2026, with more meaningful revenue contributions from new AI products anticipated in 2027. Kaltura (NASDAQ:KLTR) reported second-quarter 2026 revenue of $46.9 million, up 5% from the prior year, while subscription revenue increased 8% to $45.6 million. Annualized recurring revenue climbed to $184.6 million, also representing 8% year-over-year growth. Profitability continued to improve. GAAP operating loss narrowed to $0.8 million from $2.8 million a year earlier, while non-GAAP operating profit increased to $4.8 million. Adjusted EBITDA reached $5.9 million, exceeding the company’s guidance and marking its strongest second-quarter adjusted EBITDA performance to date. Non-GAAP gross margin also reached a record 75%. The quarter also highlighted accelerating adoption of Kaltura’s AI offerings. The company signed a record 14 contracts that included AI products, doubling its previous high. Nine of those agreements included Agentic Avatars, while eight were with new customers across industries including financial services, healthcare, education, technology, media, and professional services. Kaltura also advanced the integration of its eSelf.ai and PathFactory acquisitions, expanded enterprise AI capabilities across its platform, and continued developing two strategic offerings focused on Agentic Revenue Engagement and Agentic Learning & Enablement. For the third quarter, the company expects revenue between $45.8 million and $46.5 million with adjusted EBITDA of $2.0 million to $3.0 million. Full-year guidance calls for total revenue between $183.0 million and $185.0 million and adjusted EBITDA of $15.8 million to $17.2 million. The quarter suggests Kaltura’s AI strategy is beginning to translate into measurable commercial activity rather than remaining solely a product development initiative. While overall revenue growth remained modest, the increase in AI-related customer wins and higher subscription revenue may indicate growing demand for the company’s evolving platform. Strong recurring revenue growth and improving retention also suggest greater stability within its subscription business. At the same time, investors may continue monitoring the Media & Telecom segment, where revenue declined 10% year over year due to elevated customer churn during 2025. Future growth may increasingly depend on whether expanding enterprise AI adoption offsets weakness in legacy business areas. Management’s expectation that newer AI products will contribute more meaningfully to revenue in 2027 also points to a longer commercialization timeline, making bookings growth and customer adoption important indicators over the coming quarters. Investors will likely focus on: Whether AI-related bookings continue accelerating during the second half of 2026. Progress integrating the eSelf.ai and PathFactory platforms. Adoption of Agentic Avatars and the company’s new Agentic Revenue Engagement and Agentic Learning & Enablement solutions. Improvement in the Media & Telecom segment alongside continued expansion in enterprise and education markets. Kaltura stock price

NEW YORK, Aug. 05, 2026 (GLOBE NEWSWIRE) -- Kaltura, Inc. (Nasdaq: KLTR, “Kaltura” or the “Company”), the Agentic Digital Experience Company, today announced financial results for the second quarter ended June 30, 2026, as well as outlook for the third quarter and full year 2026. The Company’s investor presentation for the quarter, which showcases its agentic avatar technology, is available at: https://q2-26-avatar.kaltura.com/ Total revenue for the second quarter was $46.9 million, with subscription revenue of $45.6 million. Net loss for the quarter was $5.5 million, and Adjusted EBITDA for the quarter was $5.9 million. “We delivered a strong second quarter, exceeding the high end of our guidance for both revenue and adjusted EBITDA, while achieving record non-GAAP gross margin and our highest second-quarter adjusted EBITDA to date,” said Ron Yekutiel, Co-Founder, Chairman, President, and Chief Executive Officer of Kaltura. “More importantly, we are beginning to see measurable commercial traction from our evolution to powering rich, agentic digital experiences. During the quarter, we signed a record fourteen new deals that included our AI offerings, doubling our previous record, across a broad range of industries and employee, learner, customer, and audience-facing use cases. Our growing pipeline, expanding proofs of concept, and progress integrating eSelf.ai and PathFactory increase our confidence in stronger bookings momentum in the second half of the year and a more meaningful revenue contribution from our new products in 2027,” concluded Yekutiel. Second Quarter 2026 Business Highlights: Exceeded the high end of guidance for both revenue and adjusted EBITDA, delivering the company’s highest second-quarter adjusted EBITDA to date and a record non-GAAP gross margin of 75%. Grew new subscription bookings sequentially, including thirteen six-digit total contract value deals. Five of these deals were with new logos across the financial services, healthcare and education industries. Signed a record fourteen new deals that included one or more of our AI offerings which represents a doubling of deals signed compared to our previous record. Nine of the fourteen deals included Kaltura’s Agentic Avatars, and eight were with new logos. Expanded commercial adoption of Kaltura’s AI offerings across education, real estate, technology, professional services, financial services, and media and telecommunications, spanning employee, learner, customer and audience-facing use cases. Achieved the company’s strongest gross retention quarter since the fourth quarter of 2022, reflecting continued improvement in customer stability. Made significant progress integrating the Kaltura and PathFactory platforms, including enabling the synchronization of content and workflows and combining enterprise content with first-party engagement signals to support richer content intelligence, personalization and recommendations. Continued to advance the three layers of Kaltura’s agentic digital experience platform - content creation, content management and intelligence, and interactive conversational experiences - including enhanced avatar-production workflows, expanded multilingual capabilities, enterprise-governance features and conversational AI embedded across the Kaltura’s product portfolio. Advanced the development of two strategic solutions, Agentic Revenue Engagement and Agentic Learning & Enablement, which bring together Kaltura’s AI-powered content creation, content intelligence, rich-media and conversational capabilities around large and repeatable enterprise use cases. Hosted record attendance at the company’s annual Kaltura Connect and Education Connect events and received multiple leadership industry recognitions across conversational AI, enterprise video, and virtual events. Second Quarter 2026 Financial Highlights: Total revenue for the second quarter of 2026 was $46.9 million, an increase of 5% compared to $44.5 million for the second quarter of 2025. Subscription Revenue for the second quarter of 2026 was $45.6 million, an increase of 8% compared to $42.4 million for the second quarter of 2025. On a reporting-segment basis, Enterprise, Education and Technology (EE&T) total revenue increased 11% year-over-year in the second quarter, while Media & Telecom (M&T) total revenue declined 10% year-over-year, primarily due to elevated gross churn throughout 2025. Annualized Recurring Revenue (ARR) for the second quarter of 2026 was $184.6 million, an increase of 8% compared to $170.4 million for the second quarter of 2025. GAAP Gross profit for the second quarter of 2026 was $34.5 million, representing a gross margin of 74% compared to a GAAP gross profit of $31.2 million and gross margin of 70% for the second quarter of 2025. Subscription gross margin was 78% compared to 77% for the second quarter of 2025. Non-GAAP Gross profit for the second quarter of 2026 was $35.0 million, representing a non-GAAP gross margin of 75%, compared to a non-GAAP gross profit of $31.3 million and non-GAAP gross margin of 70% for the second quarter of 2025. GAAP Operating loss was $0.8 million for the second quarter of 2026, compared to an operating loss of $2.8 million for the second quarter of 2025. Non-GAAP Operating profit was $4.8 million for the second quarter of 2026, compared to a non-GAAP operating profit of $3.0 million for the second quarter of 2025. GAAP Net loss was $5.5 million or $0.04 per diluted share for the second quarter of 2026, compared to a GAAP net loss of $7.8 million, or $0.05 per diluted share, for the second quarter of 2025. Non-GAAP Net profit was $2.3 million or $0.01 per diluted share for the second quarter of 2026, compared to a non-GAAP net loss of $2.5 million, or $0.01 per diluted share, for the second quarter of 2025. Adjusted EBITDA was $5.9 million for the second quarter of 2026, compared to adjusted EBITDA of $4.1 million for the second quarter of 2025. Balance Sheet and Cash Flow The balance of cash, cash equivalents, and marketable securities at the end of the second quarter was $35.5 million. Net cash used in operating activities was $2.0 million for the second quarter of 2026, compared to $2.7 million net cash provided by operating activities for the second quarter of 2025. Financial Outlook: For the third quarter of 2026, Kaltura expects: Subscription Revenue to be between $43.9 million and $44.6 million. Total Revenue to be between $45.8 million and $46.5 million. Adjusted EBITDA to be between $2.0 million to $3.0 million. For the full year ending December 31, 2026, Kaltura expects: Subscription Revenue to be between $176.6 million and $178.6 million. Total Revenue to be between $183.0 million and $185.0 million. Adjusted EBITDA to be in the range of $15.8 million to $17.2 million. The guidance provided above contains forward-looking statements and actual results may differ materially. Refer to “Forward-Looking Statements” below for information on the factors that could cause our actual results to differ materially from these forward-looking statements. Kaltura has not provided a quantitative reconciliation of forecasted Adjusted EBITDA to forecasted GAAP net loss within this press release because the Company is unable, without making unreasonable efforts, to calculate certain reconciling items with confidence. The reconciliation for Adjusted EBITDA includes but is not limited to the following items: stock-based compensation expenses, depreciation, amortization, financial expenses (income), net, provision for income tax, and other non-recurring operating expenses. These items, which could materially affect the computation of forward-looking GAAP net loss, are inherently uncertain and depend on various factors, some of which are outside of the Company’s control. The guidance above is based on the Company's current expectations relating to the macro-economic climate trends. Additional information on Kaltura’s reported results, including a reconciliation of the non-GAAP financial measures to their most comparable GAAP measures, is included in the financial tables below. Investor Deck The Company’s investor presentation for the quarter, which showcases its agentic avatar technology, is available at: https://q2-26-avatar.kaltura.com/ Conference Call Kaltura will host a conference call today on August 5, 2026 to review its second quarter 2026 financial results and to discuss its financial outlook. A live webcast will also be available in the Investor Relations section of Kaltura’s website at: https://investors.kaltura.com/news-and-events/events. A replay of the webcast will be available in the Investor Relations section of the company’s web site approximately two hours after the conclusion of the call and remain available for approximately 30 calendar days. About Kaltura Kaltura’s mission is to power rich, agentic digital experiences across organizational journeys for customers, employees, learners, and audiences. Its platform combines intelligent content creation, enterprise-grade content management and intelligence, and multimodal conversational engagement capabilities. Kaltura serves leading enterprises, financial institutions, educational institutions, media and telecom providers, and other organizations worldwide. For more information, visit www.corp.kaltura.com. Investor Contacts:KalturaLiron SharonInterim Principal Financial [email protected] Sapphire Investor RelationsErica Mannion and Michael Funari+1 617 542 [email protected] Media Contacts:KalturaNohar [email protected] Headline MediaRaanan [email protected]+1 347 897 9276 Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including but not limited to, statements regarding our future financial and operating performance, including our guidance and long-term targets; our business strategy, plans and objectives for future operations; integration activities; expectations with respect to our products and capabilities, including the adoption and performance of our new AI-driven technologies; our expectations regarding potential profitability and growth; and general economic, business and industry conditions, including expectations with respect to trends in customer consolidation. In some cases, you can identify forward-looking statements by terminology such as “aim,” “anticipate,” “assume,” “believe,” “contemplate,” “continue,” “could,” “due,” “estimate,” “expect,” “goal,” “intend,” “may,” “objective,” “plan,” “predict,” “potential,” “positioned,” “seek,” “should,” “target,” “will,” “would” and other similar expressions that are predictions of or indicate future events and future trends, or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Any forward-looking statements contained herein are based on our historical performance and our current plans, estimates and expectations and are not a representation that such plans, estimates, or expectations will be achieved. These forward-looking statements represent our expectations as of the date of this press release. Subsequent events may cause these expectations to change, and we disclaim any obligation to update the forward-looking statements in the future, except as required by law. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially from our current expectations. Important factors that could cause actual results to differ materially from those anticipated in our forward-looking statements include, but are not limited to, the current volatile economic climate and its direct and indirect impact on our business and operations; political, economic, and military conditions in Israel and other geographies; our ability to retain our customers and meet demand; our ability to achieve and maintain profitability; the evolution of the markets for our offerings; our ability to keep pace with technological and competitive developments; risks associated with our use of certain artificial intelligence and machine learning models; our ability to maintain the interoperability of our offerings across devices, operating systems and third-party applications; risks associated with our Application Programming Interfaces, other components in our offerings and other intellectual property; our ability to compete successfully against current and future competitors; our ability to increase customer revenue; conditions in the regions in which we operate; risks related to our approach to revenue recognition; our potential exposure to cybersecurity threats; our compliance with data privacy and data protection laws; the potential impact of the EU Data Act ; our ability to meet our contractual commitments under customer agreements; our reliance on third parties; our dependence on and ability to retain our key personnel; risks related to revenue mix and customer base; risks related to our international operations; risks related to potential acquisitions; risks related to real or perceived issues with our platform, products or solutions; our ability to generate or raise additional capital; risks related to changes or developments in U.S. or international laws or policies; and the other risks under the caption “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the Securities and Exchange Commission (“SEC”), as such factors may be updated from time to time in our other filings with the SEC, which are accessible on the SEC’s website at www.sec.gov and the Investor Relations page of our website at investors.kaltura.com. Non-GAAP Financial Measures Kaltura has provided in this press release and the accompanying tables measures of financial information that have not been prepared in accordance with generally accepted accounting principles in the U.S. ("GAAP"), including non-GAAP gross profit, non-GAAP gross margin (calculated as a percentage of revenue), non-GAAP research and development expenses, non-GAAP sales and marketing expenses, non-GAAP general and administrative expenses, non-GAAP operating profit (loss), non-GAAP operating margin (calculated as a percentage of revenue), non-GAAP net income (loss), non-GAAP net income (loss) per share and Adjusted EBITDA. Kaltura defines these non-GAAP financial measures as the respective corresponding GAAP measure, adjusted for, as applicable: (1) stock-based compensation expense; (2) the amortization of acquired intangibles; (3) strategic initiatives costs; (4) restructuring cost; (5) acquisition-related compensation costs; and (6) foreign currency translation adjustments loss (gain). Kaltura defines EBITDA as net profit (loss) before financial expenses (income), net, provision for income taxes, and depreciation and amortization expenses. Adjusted EBITDA is defined as EBITDA (as defined above), adjusted for the impact of certain non-cash and other items that we believe are not indicative of our core operating performance, such as non-cash stock-based compensation expenses and certain non-recurring operating expenses. We believe these non-GAAP financial measures provide useful information to management and investors regarding certain financial and business trends relating to Kaltura’s financial condition and results of operations. These non-GAAP metrics are a supplemental measure of our performance, are not defined by or presented in accordance with GAAP, and should not be considered in isolation or as an alternative to net profit (loss) or any other performance measure prepared in accordance with GAAP. Non-GAAP financial measures are presented because we believe that they provide useful supplemental information to investors and analysts regarding our operating performance and are frequently used by these parties in evaluating companies in our industry. By presenting these non-GAAP financial measures, we provide a basis for comparison of our business operations between periods by excluding items that we do not believe are indicative of our core operating performance. We believe that investors’ understanding of our performance is enhanced by including these non-GAAP financial measures as a reasonable basis for comparing our ongoing results of operations. Additionally, our management uses these non-GAAP financial measures as supplemental measures of our performance because they assist us in comparing the operating performance of our business on a consistent basis between periods, as described above. Although we use the non-GAAP financial measures described above, such measures have significant limitations as analytical tools and only supplement but do not replace, our financial statements in accordance with GAAP. See the tables below regarding reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures. Key Financial and Operating Metrics Annualized Recurring Revenue. We use Annualized Recurring Revenue (“ARR”) as a measure of our revenue trend and an indicator of our future revenue opportunity from existing recurring customer contracts. We calculate ARR by annualizing our recurring revenue for the most recently completed fiscal quarter. Recurring revenues are generated from SaaS and PaaS subscriptions, as well as term licenses for software installed on the customer's premises (“On-Prem”). For the SaaS and PaaS components, we calculate ARR by annualizing the actual recurring revenue recognized for the latest fiscal quarter. For the On-Prem components for which revenue recognition is not ratable across the license term, we calculate ARR for each contract by dividing the total contract value (excluding professional services) as of the last day of the specified period by the number of days in the contract term and then multiplying by 365. Recurring revenue excludes revenue from one-time professional services and setup fees. ARR is not adjusted for the impact of any known or projected future customer cancellations, upgrades or downgrades or price increases or decreases. The amount of actual revenue that we recognize over any 12-month period is likely to differ from ARR at the beginning of that period, sometimes significantly. This may occur due to new bookings, cancellations, upgrades or downgrades, pending renewals, professional services revenue, foreign exchange rate fluctuations and acquisitions or divestitures. ARR should be viewed independently of revenue as it is an operating metric and is not intended to be a replacement or forecast of revenue. Our calculation of ARR may differ from similarly titled metrics presented by other companies. Net Dollar Retention Rate. Our Net Dollar Retention Rate, which we use to measure our success in retaining and growing recurring revenue from our existing customers, compares our recognized recurring revenue from a set of customers across comparable periods. We calculate our Net Dollar Retention Rate for a given period as the recognized recurring revenue from the latest reported fiscal quarter from the set of customers whose revenue existed in the reported fiscal quarter from the prior year (the numerator), divided by recognized recurring revenue from such customers for the same fiscal quarter in the prior year (denominator). For annual periods, we report Net Dollar Retention Rate as the arithmetic average of the Net Dollar Retention Rate for all fiscal quarters included in the period. We consider subdivisions of the same legal entity (for example, divisions of a parent company or separate campuses that are part of the same state university system) ,as well as Value-add Resellers (“VARs”) (meaning resellers that directly manage the relationship with the customer) and the customers they manage, to be a single customer for purposes of calculating our Net Dollar Retention Rate. Our calculation of Net Dollar Retention Rate for any fiscal period includes the positive recognized recurring revenue impacts of selling new services to existing customers and the negative recognized recurring revenue impacts of contraction and attrition among this set of customers. Our Net Dollar Retention Rate may fluctuate as a result of a number of factors, including the growing level of our revenue base, the level of penetration within our customer base, expansion of products and features, and our ability to retain our customers. Our calculation of Net Dollar Retention Rate may differ from similarly titled metrics presented by other companies. Remaining Performance Obligations. Remaining Performance Obligations represents the amount of contracted future revenue that has not yet been delivered, including both subscription and professional services revenues. Remaining Performance Obligations consists of both deferred revenue and contracted non-cancelable amounts that will be invoiced and recognized in future periods. We expect to recognize 71% of our Remaining Performance Obligations as revenue over the next 12 months, and the remainder over a period of four years, in each case, in accordance with our revenue recognition policy; however, we cannot guarantee that any portion of our Remaining Performance Obligations will be recognized as revenue within the timeframe we expect or at all.

Investors in Kaltura, Inc. (NASDAQ:KLTR) had a good week, as its shares rose 3.6% to close at US$1.45 following the release of its quarterly results. Revenue of US$45m came in 3.8% ahead of expectations, although statutory earnings didn't fare nearly so well, recording a loss of US$0.03, a 20% miss. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. After the latest results, the dual analysts covering Kaltura are now predicting revenues of US$183.7m in 2026. If met, this would reflect a modest 2.9% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 28% to US$0.07. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$182.6m and losses of US$0.085 per share in 2026. While the revenue estimates were largely unchanged, sentiment seems to have improved, with the analysts upgrading their numbers and making a cut to losses per share in particular. Check out our latest analysis for Kaltura The average price target rose 11% to US$3.50, with the analysts signalling that the forecast reduction in losses would be a positive for the stock's valuation. Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of Kaltura'shistorical trends, as the 3.9% annualised revenue growth to the end of 2026 is roughly in line with the 3.9% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 17% per year. So it's pretty clear that Kaltura is expected to grow slower than similar companies in the same industry. The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Kaltura's revenue is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time. With that in mind, we wouldn't be too quick to come to a conclusion on Kaltura. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Kaltura going out as far as 2027, and you can see them free on our platform here. Even so, be aware that Kaltura is showing 1 warning sign in our investment analysis , you should know about... Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Kaltura released an updated investors presentation that showcases its interactive agentic-AI avatar technology NEW YORK, May 11, 2026 (GLOBE NEWSWIRE) -- Kaltura, Inc. (Nasdaq: KLTR, “Kaltura” or the “Company”), the Agentic Digital Experience company, today announced financial results for the first quarter ended March 31, 2026, as well as outlook for second quarter and full year 2026. The Company’s investor presentation for the quarter, which now showcases its agentic avatar technology, is available at: https://q1-26-avatar.kaltura.com/ Total revenue for the first quarter was $44.6 million, with subscription revenue of $43.2 million. Adjusted EBITDA for the quarter was $5.7 million. All three results were above the high end of their guidance range. Ron Yekutiel, Co-Founder, Chairman, President, and Chief Executive Officer of Kaltura, said, “We are off to a strong start in 2026, exceeding the high end of our guidance across all key metrics and delivering our first Q1 with positive operating cash flow. During the quarter, we launched new avatar-based products and signed the PathFactory acquisition, which closed shortly after quarter end. We’ve made meaningful progress over the quarter in our transition to powering rich, agentic digital experiences across organizational journeys, with growing customer engagement, expanding use cases, and early signs of momentum across our new offerings. We look forward to engaging with customers and partners at our upcoming Kaltura Connect on the Road events.” First Quarter 2026 Business Highlights Exceeded the high end of guidance across revenue and adjusted EBITDA and achieved positive cash flow from operations in a first quarter for the first time in the company’s history. New subscription bookings followed typical seasonal patterns, including one seven-digit and fourteen six-digit new deals, as well as three new AI-related deals. Achieved the highest gross retention level in the past five quarters, reflecting improving customer stability. Expanded AI capabilities across the platform, including the general availability of conversational Agentic Avatar and its Software Development Kit (SDK). Achieved ISO/IEC 42001 certification for Artificial Intelligence Management Systems, reinforcing Kaltura’s commitment to responsible enterprise-grade AI deployment. Continued to make progress in the company’s strategic transition toward powering rich, agentic digital experiences across organizational journeys, with growing customer engagement, expanding use cases, and early signs of momentum across its emerging offerings. Announced partnerships with Cornerstone to deliver integrated AI-powered digital learning experiences, and with Descript to provide enterprises integrated AI-powered video capabilities. Subsequent Events Completed the acquisition of PathFactory on April 1, 2026 (signed in the first quarter), adding content intelligence and journey orchestration capabilities that enable understanding of user intent and the delivery of personalized digital experiences, and showcased an integrated ‘Agentic Revenue Engagement Platform’ at Adobe Summit 2026. Announced the general availability of an Avatar Video Production Studio for the creation of avatar-narrated recorded videos (beta unveiled in the first quarter). First Quarter 2026 Financial Highlights Total revenue for the first quarter of 2026 was $44.6 million, a decrease of 5% compared to $47.0 million for the first quarter of 2025. Subscription revenue for the first quarter of 2026 was $43.2 million, a decrease of 4% compared to $44.9 million for the first quarter of 2025. On a reporting-segment basis, Enterprise, Education and Technology (EE&T) total revenue declined 1% year-over-year in the first quarter, while Media & Telecom (M&T) total revenue declined 17% year-over-year, primarily due to elevated gross churn throughout 2025. Annualized Recurring Revenue (ARR) for the first quarter of 2026 was $168.8 million, a decrease of 3% compared to $174.8 million for the first quarter of 2025. GAAP Gross profit for the first quarter of 2026 was $32.1 million, representing a gross margin of 72% compared to a GAAP gross profit of $32.7 million and gross margin of 70% for the first quarter of 2025. Subscription gross margin was flat year-over-year at 77%. Non-GAAP Gross profit for the first quarter of 2026 was $32.3 million, representing a non-GAAP gross margin of 72%, compared to a non-GAAP gross profit of $33.0 million and non-GAAP gross margin of 70% for the first quarter of 2025. Total operating expenses for the first quarter of 2026 were $33.3 million, compared to $34.3 million for the first quarter of 2025. GAAP Operating loss for the first quarter of 2026 was $1.2 million, compared to $1.6 million for the first quarter of 2025. Non-GAAP Operating profit for the first quarter of 2026 was $4.6 million, compared to $3.1 million for the first quarter of 2025. GAAP Net loss was $3.8 million or $0.03 per diluted share for the first quarter of 2026, compared to a GAAP net loss of $1.1 million, or $0.01 per diluted share, for the first quarter of 2025. Non-GAAP Net profit was $2.1 million or $0.01 per diluted share for the first quarter of 2026, compared to a non-GAAP net profit of $2.0 million, or $0.01 per diluted share, for the first quarter of 2025. Adjusted EBITDA was $5.7 million for the first quarter of 2026, compared to Adjusted EBITDA of $4.1 million for the first quarter of 2025. Balance Sheet and Cash Flow The balance of cash, cash equivalents, and marketable securities at the end of the first quarter was $61.8 million. Net cash provided by operating activities was $0.7 million for the first quarter of 2026, compared to net cash used in operating activities of $1.0 million in the first quarter of 2025. Financial Outlook For the second quarter of 2026, the Company expects: Subscription revenue to grow 2-4% year-over-year to between $43.3 million and $44.1 million Total revenue to grow between 2-3% year-over-year to between $45.2 million and $46.0 million Adjusted EBITDA to be between $2.0 million and $3.0 million For the full year ending December 31, 2026, the Company expects: Subscription revenue to grow 1-3% to between $174.5 million and $176.7 million Total revenue to grow 1-2% to between $182.6 million and $184.8 million Adjusted EBITDA to be between $13.8 million and $15.2 million The Company’s outlook reflects the recurring nature of its business, expected revenue timing patterns during the year, foreign exchange trends, and anticipated investments related to the integration and expansion of its recently acquired AI capabilities, including the recent acquisitions of eSelf and PathFactory. The guidance provided above contains forward-looking statements and actual results may differ materially. Refer to “Forward-Looking Statements” below for information on the factors that could cause our actual results to differ materially from these forward-looking statements. Kaltura has not provided a quantitative reconciliation of forecasted Adjusted EBITDA to forecasted GAAP net loss within this press release because the Company is unable, without making unreasonable efforts, to calculate certain reconciling items with confidence. The reconciliation for Adjusted EBITDA includes but is not limited to the following items: stock-based compensation expenses, depreciation, amortization, financial expenses (income), net, provision for income tax, and other non-recurring operating expenses. These items, which could materially affect the computation of forward-looking GAAP net loss, are inherently uncertain and depend on various factors, some of which are outside of the Company’s control. The guidance above is based on the Company's current expectations relating to the macro-economic climate trends. Additional information on Kaltura’s reported results, including a reconciliation of the non-GAAP financial measures to their most comparable GAAP measures, is included in the financial tables below. Investor Deck The Company’s investor presentation for the quarter, which now showcases its agentic avatar technology, is available at: https://q1-26-avatar.kaltura.com/ Conference Call Kaltura will host a conference call today on May 11, 2026 to review its first quarter financial results and to discuss its financial outlook. A live webcast will also be available in the Investor Relations section of Kaltura’s website at: https://investors.kaltura.com/news-and-events/events. A replay of the webcast will be available in the Investor Relations section of the company’s web site approximately two hours after the conclusion of the call and remain available for approximately 30 calendar days. About Kaltura Kaltura’s mission is to power rich, agentic digital experiences across organizational journeys for customers, employees, learners, and audiences. Its platform combines intelligent content creation, enterprise-grade content management and intelligence, and multimodal conversational engagement capabilities. Kaltura serves leading enterprises, financial institutions, educational institutions, media and telecom providers, and other organizations worldwide. For more information, visit www.corp.kaltura.com. Investor Contacts: Kaltura Liron Sharon Interim Principal Financial Officer [email protected] Sapphire Investor Relations Erica Mannion and Michael Funari +1 617 542 6180 [email protected] Media Contacts: Kaltura Nohar Zmora SVP Marketing [email protected] Headline Media Raanan Loew [email protected] +1 347 897 9276 Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including but not limited to, statements regarding our future financial and operating performance, including our guidance and long-term targets; our business strategy, plans and objectives for future operations; our transaction with PathFactory, including the timing thereof; expectations with respect to our products and capabilities, including the adoption and performance of our new AI-driven technologies; our expectations regarding potential profitability and growth; and general economic, business and industry conditions, including expectations with respect to trends in customer consolidation. In some cases, you can identify forward-looking statements by terminology such as “aim,” “anticipate,” “assume,” “believe,” “contemplate,” “continue,” “could,” “due,” “estimate,” “expect,” “goal,” “intend,” “may,” “objective,” “plan,” “predict,” “potential,” “positioned,” “seek,” “should,” “target,” “will,” “would” and other similar expressions that are predictions of or indicate future events and future trends, or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Any forward-looking statements contained herein are based on our historical performance and our current plans, estimates and expectations and are not a representation that such plans, estimates, or expectations will be achieved. These forward-looking statements represent our expectations as of the date of this press release. Subsequent events may cause these expectations to change, and we disclaim any obligation to update the forward-looking statements in the future, except as required by law. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially from our current expectations. Important factors that could cause actual results to differ materially from those anticipated in our forward-looking statements include, but are not limited to, the current volatile economic climate and its direct and indirect impact on our business and operations; political, economic, and military conditions in Israel and other geographies; our ability to retain our customers and meet demand; our ability to achieve and maintain profitability; the evolution of the markets for our offerings; our ability to keep pace with technological and competitive developments; risks associated with our use of certain artificial intelligence and machine learning models; our ability to maintain the interoperability of our offerings across devices, operating systems and third-party applications; risks associated with our Application Programming Interfaces, other components in our offerings and other intellectual property; our ability to compete successfully against current and future competitors; our ability to increase customer revenue; conditions in the regions in which we operate; risks related to our approach to revenue recognition; our potential exposure to cybersecurity threats; our compliance with data privacy and data protection laws; the potential impact of the EU Data Act ; our ability to meet our contractual commitments under customer agreements; our reliance on third parties; our dependence on and ability to retain our key personnel; risks related to revenue mix and customer base; risks related to our international operations; risks related to potential acquisitions; risks related to real or perceived issues with our platform, products or solutions; our ability to generate or raise additional capital; risks related to changes or developments in U.S. or international laws or policies; and the other risks under the caption “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the Securities and Exchange Commission (“SEC”), as such factors may be updated from time to time in our other filings with the SEC, which are accessible on the SEC’s website at www.sec.gov and the Investor Relations page of our website at investors.kaltura.com. Non-GAAP Financial Measures Kaltura has provided in this press release and the accompanying tables measures of financial information that have not been prepared in accordance with generally accepted accounting principles in the U.S. ("GAAP"), including non-GAAP gross profit, non-GAAP gross margin (calculated as a percentage of revenue), non-GAAP research and development expenses, non-GAAP sales and marketing expenses, non-GAAP general and administrative expenses, non-GAAP operating profit, non-GAAP operating margin (calculated as a percentage of revenue), non-GAAP net profit, non-GAAP net profit per share and Adjusted EBITDA. Beginning with the second quarter of 2025, non-GAAP Net profit (loss) was adjusted for gains or losses from foreign currency translation adjustments, with the recent fluctuation of the U.S dollar, specifically against the Israeli Shekel and less certainty in the global economic environment, Kaltura believes that this change will provide a better reflection of its overall operating performance on an adjusted net profit (loss) basis. Kaltura defines these non-GAAP financial measures as the respective corresponding GAAP measure, adjusted for, as applicable: (1) stock-based compensation expense; (2) the amortization of acquired intangibles; (3) strategic initiatives expenses, (4) foreign currency translation adjustments loss (gain); and (5) change in the fair value of the contingent consideration. Kaltura defines EBITDA as net profit (loss) before financial expenses (income), net, provision for income taxes, and depreciation and amortization expenses. Adjusted EBITDA is defined as EBITDA (as defined above), adjusted for the impact of certain non-cash and other items that we believe are not indicative of our core operating performance, such as non-cash stock-based compensation expenses and certain non-recurring operating expenses. These non-GAAP metrics are a supplemental measure of our performance, are not defined by or presented in accordance with GAAP, and should not be considered in isolation or as an alternative to net profit (loss) or any other performance measure prepared in accordance with GAAP. Non-GAAP financial measures are presented because we believe that they provide useful supplemental information to investors and analysts regarding our operating performance and are frequently used by these parties in evaluating companies in our industry. By presenting these non-GAAP financial measures, we provide a basis for comparison of our business operations between periods by excluding items that we do not believe are indicative of our core operating performance. We believe that investors’ understanding of our performance is enhanced by including these non-GAAP financial measures as a reasonable basis for comparing our ongoing results of operations. Additionally, our management uses these non-GAAP financial measures as supplemental measures of our performance because they assist us in comparing the operating performance of our business on a consistent basis between periods, as described above. Although we use the non-GAAP financial measures described above, such measures have significant limitations as analytical tools and only supplement but do not replace our financial statements in accordance with GAAP. See the tables below regarding reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures. Key Financial and Operating Metrics Annualized Recurring Revenue. We use Annualized Recurring Revenue (“ARR”) as a measure of our revenue trend and an indicator of our future revenue opportunity from existing recurring customer contracts. We calculate ARR by annualizing our recurring revenue for the most recently completed fiscal quarter. Recurring revenues are generated from SaaS and PaaS subscriptions, as well as term licenses for software installed on the customer's premises (“On-Prem”). For the SaaS and PaaS components, we calculate ARR by annualizing the actual recurring revenue recognized for the latest fiscal quarter. For the On-Prem components for which revenue recognition is not ratable across the license term, we calculate ARR for each contract by dividing the total contract value (excluding professional services) as of the last day of the specified period by the number of days in the contract term and then multiplying by 365. Recurring revenue excludes revenue from one-time professional services and setup fees. ARR is not adjusted for the impact of any known or projected future customer cancellations, upgrades or downgrades or price increases or decreases. The amount of actual revenue that we recognize over any 12-month period is likely to differ from ARR at the beginning of that period, sometimes significantly. This may occur due to new bookings, cancellations, upgrades or downgrades, pending renewals, professional services revenue, foreign exchange rate fluctuations and acquisitions or divestitures. ARR should be viewed independently of revenue as it is an operating metric and is not intended to be a replacement or forecast of revenue. Our calculation of ARR may differ from similarly titled metrics presented by other companies. Net Dollar Retention Rate. Our Net Dollar Retention Rate, which we use to measure our success in retaining and growing recurring revenue from our existing customers, compares our recognized recurring revenue from a set of customers across comparable periods. We calculate our Net Dollar Retention Rate for a given period as the recognized recurring revenue from the latest reported fiscal quarter from the set of customers whose revenue existed in the reported fiscal quarter from the prior year (the numerator), divided by recognized recurring revenue from such customers for the same fiscal quarter in the prior year (denominator). For annual periods, we report Net Dollar Retention Rate as the arithmetic average of the Net Dollar Retention Rate for all fiscal quarters included in the period. We consider subdivisions of the same legal entity (for example, divisions of a parent company or separate campuses that are part of the same state university system) ,as well as Value-add Resellers (“VARs”) (meaning resellers that directly manage the relationship with the customer) and the customers they manage, to be a single customer for purposes of calculating our Net Dollar Retention Rate. Our calculation of Net Dollar Retention Rate for any fiscal period includes the positive recognized recurring revenue impacts of selling new services to existing customers and the negative recognized recurring revenue impacts of contraction and attrition among this set of customers. Our Net Dollar Retention Rate may fluctuate as a result of a number of factors, including the growing level of our revenue base, the level of penetration within our customer base, expansion of products and features, and our ability to retain our customers. Our calculation of Net Dollar Retention Rate may differ from similarly titled metrics presented by other companies. Remaining Performance Obligations. Remaining Performance Obligations represents the amount of contracted future revenue that has not yet been delivered, including both subscription and professional services revenues. Remaining Performance Obligations consists of both deferred revenue and contracted non-cancelable amounts that will be invoiced and recognized in future periods. We expect to recognize 67% of our Remaining Performance Obligations as revenue over the next 12 months, and the remainder over the next four years. However, we cannot guarantee that any portion of our Remaining Performance Obligations will be recognized as revenue within the timeframe we expect or at all.

Interested in Kaltura, Inc.? Here are five stocks we like better. Kaltura beat Q1 guidance on both revenue and adjusted EBITDA, and posted positive operating cash flow for the first time in company history. Total revenue was $44.6 million, while adjusted EBITDA rose 37% year over year to $5.7 million. The company’s profitability improved even as revenue declined, with gross margin rising to 72% and operating expenses down 3% year over year. Net loss widened on non-cash and acquisition-related costs, but non-GAAP net profit came in at $2.1 million. Kaltura is pushing a major AI-driven strategic transition, highlighted by the PathFactory acquisition, broader conversational avatar tools, and early customer interest across enterprise, education, employee, and media use cases. Management also raised and narrowed full-year 2026 guidance, expecting gradual revenue improvement in the second half of the year. Kaltura (NASDAQ:KLTR) reported first-quarter 2026 results that exceeded its guidance for revenue and adjusted EBITDA, while also generating positive operating cash flow in a first quarter for the first time in the company’s history, executives said on the company’s earnings call. Co-founder, Chairman, President and CEO Ron Yekutiel said total revenue was $44.6 million, down 5% year over year, while subscription revenue was $43.2 million, down 4%. Adjusted EBITDA rose 37% year over year to $5.7 million, which Yekutiel described as the company’s highest first-quarter result to date. → Beyond NVIDIA: Picks-and-Shovels AI Plays with Strong Momentum “These results reflect continued operating discipline, improving retention trends, and steady progress as we execute on our strategic transition,” Yekutiel said. Liron Sharon, executive vice president of FP&A and interim principal financial officer, said total revenue exceeded the company’s guidance range of $42.6 million to $43.4 million. Subscription revenue also topped the guided range of $41.2 million to $42 million. → 3 Ways to Target the Resources Powering AI and Data Centers Sharon attributed the year-over-year revenue decline primarily to elevated Media & Telecom churn experienced in 2025, as well as the timing of activity from a large Enterprise, Education & Technology customer that shifted from large virtual events to smaller events expected later in the year. Professional services revenue was $1.4 million, down 50% sequentially and 31% year over year, which Sharon said was consistent with Kaltura’s focus on recurring subscription revenue. → MercadoLibre Boldly Invests in Growth: Discount Deepens By segment, Enterprise, Education & Technology total revenue was $34.2 million, down 1% year over year, while subscription revenue was flat at $33.7 million. Media & Telecom total revenue was $10.5 million, down 17%, and subscription revenue was $9.5 million, down 16%. GAAP gross profit was $32.1 million, representing a gross margin of 72%, up 200 basis points from the prior-year quarter. Subscription gross margin was 77%, in line with the first quarter of 2025. GAAP operating expenses declined 3% year over year to $33.3 million, despite incremental costs tied to the eSelf acquisition and foreign exchange headwinds. GAAP net loss was $3.8 million, or $0.03 per diluted share, compared with a net loss of $1.1 million, or $0.01 per diluted share, in the prior-year period. Sharon said the change primarily reflected non-cash and non-recurring expenses, including $3.8 million in stock-based compensation and $1.9 million in acquisition costs and other strategic initiatives. Non-GAAP net profit was $2.1 million, or $0.01 per diluted share. Yekutiel said first-quarter new subscription bookings followed the company’s typical seasonal pattern and included one seven-figure deal, 14 six-figure deals and three AI-related deals. New customers included a global content delivery network, a healthcare system, two U.S. universities and a major broadcaster in the Asia-Pacific region. He said most bookings came from expansions within Kaltura’s existing enterprise customer base across technology, financial services, healthcare, education and media. Gross retention improved to its highest level in five quarters, according to Yekutiel. Net dollar retention was 95%, compared with 107% in the prior-year period and 97% in the fourth quarter of 2025. Sharon said the metric remains affected by last year’s Media & Telecom churn and is expected to improve as retention and bookings recover. Remaining performance obligations were $154.5 million, flat year over year, with 67% expected to be recognized as revenue over the next 12 months. Annualized recurring revenue was $168.8 million, flat sequentially and down 3% year over year. A central theme of the call was Kaltura’s shift from a video platform to what Yekutiel called an “AI-powered, rich agentic digital experience platform.” He said the company is combining its existing video capabilities with technologies from eSelf and PathFactory. Kaltura completed its acquisition of PathFactory on April 1 after signing the definitive agreement during the first quarter. Yekutiel said PathFactory adds content intelligence and journey orchestration, helping enterprises understand user intent and deliver personalized digital experiences. The company also announced general availability of its conversational avatar technology and developer tools, and moved its Avatar Video Production Studio from beta to general availability. Yekutiel said the studio enables automated creation of avatar-based video content from text and other materials. Kaltura also achieved ISO/IEC 42001 certification for artificial intelligence management systems during the quarter. Yekutiel said the company is seeing early validation across four customer “journeys”: customers, employees, learners and audiences. Customer-facing use cases are the most advanced, with proof-of-concept discussions involving large enterprises across technology, financial services, healthcare, and media and telecom. Use cases include personalized content journeys, AI-powered conversational interfaces, digital agents for customer and partner engagement, and AI-powered sales development representative agents. For employee use cases, Yekutiel cited interest in AI-assisted interactions, internal communications, knowledge bases and training. In education, he said universities are discussing AI tutors, teaching assistants, instructional content creation and role-play simulations. In Media & Telecom, he said conversations include recommendations, personalized viewing and conversational interfaces. For the second quarter, Kaltura expects subscription revenue of $43.3 million to $44.1 million, representing 2% to 4% year-over-year growth. Total revenue is expected to be $45.2 million to $46 million, up 2% to 3%. Adjusted EBITDA is expected to be between $2 million and $3 million. For full-year 2026, the company raised and narrowed its guidance. Kaltura now expects subscription revenue of $174.5 million to $176.7 million, representing 1% to 3% growth, and total revenue of $182.6 million to $184.8 million, up 1% to 2%. Adjusted EBITDA is expected to be between $13.8 million and $15.2 million. Sharon said the company expects revenue to pick up gradually throughout the year, with contributions from PathFactory and the new product portfolio beginning in the second half and becoming more meaningful in 2027. She said Media & Telecom revenue is still expected to decline year over year in 2026 due to prior churn, but new bookings and retention are expected to improve. During the question-and-answer portion, Needham & Company analyst Ryan Koontz asked about the expanded product portfolio and how customer engagements are changing. Yekutiel said Kaltura is seeing a pipeline of “a few dozen opportunities” around its new solutions, roughly split between North America and Europe and between upsells and new logos. He said customer journey opportunities are the largest, followed by employee, learner and audience use cases. In response to a question from Canaccord Genuity about whether the broader platform could lengthen sales cycles, Yekutiel said he did not necessarily expect that, though he noted Kaltura has historically sold through large enterprise sales cycles. Asked about opening the platform to AI coding agents, Yekutiel said Kaltura is enabling easier integration of its tools into enterprise workflows and third-party systems, while not open-sourcing its core technology. “We want to enable the lowest barrier for folks to take our tools and customize them, integrate them, insert them into workflows, and have them embedded within the environments that things are happening now,” Yekutiel said. Kaltura, Inc (NASDAQ: KLTR) is a leading provider of video technology solutions designed to empower organizations to create, manage, distribute and monetize video content at scale. The company's cloud-native platform supports an array of use cases including enterprise communications, online learning, virtual events, media delivery and over-the-top (OTT) television services. By combining open-source roots with software-as-a-service (SaaS) flexibility, Kaltura offers organizations the ability to tailor their video workflows and integrate seamlessly with existing collaboration, learning management and content management systems. Key offerings from Kaltura include a comprehensive video management system, live streaming and video conferencing capabilities, lecture capture for educational institutions, virtual events and webinars, and turnkey OTT solutions. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Kaltura Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

Image source: The Motley Fool. Monday, May 11, 2026 at 4:30 p.m. ET Chief Executive Officer — Ron Yekutiel Chief Financial Officer — Liron Sharon Moderator — Erica L. Mannion Need a quote from a Motley Fool analyst? Email [email protected] Ron will begin with a summary of the results for the first quarter ended 03/31/2026 and provide a business update. Liron will then review the financial results for 2026 in greater detail, followed by the company’s outlook for the second quarter and full year 2026. Operator: We will then open the call for questions. Erica L. Mannion: Please note that this call will include forward-looking statements within the meaning of the federal securities laws, including, but not limited to, statements regarding Kaltura, Inc.’s expected future financial results, management’s expectations and plans for the business including execution on our strategic transition and upcoming product launches, integration and expected benefits of our recent acquisitions, trends in customer engagement, anticipated headwinds, and our expectations around capabilities and benefits of our products, including AI technologies. These statements are neither promises nor guarantees and involve risks and uncertainties that may cause actual results to differ materially from those discussed here. Important factors that could cause actual results to differ from forward-looking statements can be found in the risk factors section of Kaltura, Inc.’s Annual Report on Form 10-K for the fiscal year ended 12/31/2025 and other SEC filings. Any forward-looking statements made during this conference call, including responses to your questions, are based on current expectations as of today, and Kaltura, Inc. assumes no obligation to update or revise them, whether as a result of new developments or otherwise, except as required by law. Please note we will be discussing non-GAAP financial measures, including adjusted EBITDA, adjusted EBITDA margin, and non-GAAP gross margin during this call. For a reconciliation of these measures to the most directly comparable GAAP metrics, please refer to our earnings release, which is available on our website at investors.kaltura.com. Now I would like to turn the call over to Ron. Ron Yekutiel: Thank you, Erica, and thanks everyone for joining us today. We delivered a strong start to 2026, exceeding the high end of our guidance across revenue and adjusted EBITDA, and generating, for the first time in our history, positive cash flow from operations in a first quarter. Total revenue was $44.6 million, down 5% year-over-year. Subscription revenue was $43.2 million, down 4% year-over-year. Adjusted EBITDA was $5.7 million, up 37% year-over-year and our highest first quarter result to date. These results reflect continued operating discipline, improving retention trends, and steady progress as we execute on our strategic transition. New subscription bookings in the first quarter followed our typical seasonal pattern, with encouraging deal quality across both new logos and expansions. We closed one seven-digit deal, fourteen six-digit deals, and three new AI-related deals. New logos included a global content delivery network, a leading healthcare system, two U.S. universities, and a major APAC broadcaster. As in prior quarters, the majority of bookings came from expansions within our existing enterprise customer base across technology, financial services, healthcare, education, and media. Gross retention improved to its highest level in the last five quarters. Net dollar retention continued to reflect the lagging impact of elevated media and telecom churn in 2025, which we expect to improve over the course of this year. During the quarter, we continued to expand our AI capabilities across both content creation and user engagement. We announced the general availability of our conversational avatar technology along with developer tools that enable integration into enterprise workflows. We also launched a beta version and last week moved to general availability of our Avatar video production studio, which enables automated creation of avatar-based video content from text and other materials. These capabilities build on our existing AI tools such as ContentLab and Genie, extending them into more interactive and conversational use cases. Importantly, we also achieved ISO/IEC 42001 certification for artificial intelligence management systems during this quarter, reinforcing our commitment to responsible, enterprise-grade AI deployment. We also completed the acquisition of PathFactory on 04/01/2026 following the signing of the definitive agreement during the first quarter. PathFactory adds content intelligence and journey orchestration built to enable enterprises to better understand user intent and dynamically deliver personalized digital experiences. Since closing, we have moved quickly to integrate teams and align product and go-to-market efforts. We are already jointly presenting our combined platform in the market and seeing encouraging early engagements. With the combination of Kaltura, Inc., ESELF, and PathFactory, we believe we now have the core building blocks to evolve from a video platform into an AI-powered, rich, agentic digital experience platform. Kaltura, Inc. provides enterprise-grade video experiences and rich media infrastructure. ESELF adds multimodal conversational avatar technology for agentic real-time and on-demand interactions. And PathFactory adds content intelligence and journey orchestration. Together, these capabilities are designed to allow enterprises to move from static one-size-fits-all digital experiences to more personalized, interactive, and outcome-driven journeys. Now I will spend some time discussing how customers are engaging with us across the four journeys we power: customers, employees, learners, and audiences, as this is where we are seeing the most meaningful early validation of our strategy. First, customer journeys. Customer-facing use cases are the most advanced and show the strongest early traction. We are seeing growing interest in our revenue engagement suite, which brings together video, AI-powered content creation, conversational avatars, and journey orchestration into a unified solution for marketing, sales, and customer engagement teams. Discussions with both new and existing customers are shifting from deploying video tools to broader conversations around improving lead conversion, scaling personalized engagement, and augmenting sales and customer success teams. We are in proof-of-concept discussions with large enterprises, including Fortune 500 organizations, across technology, financial services, healthcare, and media and telecom. These include use cases such as personalized content journeys and microsites, AI-powered conversational interfaces across websites and events, automated creation and scaling of targeted video content, 24/7 digital agents supporting customer and partner engagement and onboarding, and AI-powered SDR agents. In several of these engagements, we are progressing from initial proof of concept to broader platform discussions, reflecting growing confidence in the combined value of our offerings. Importantly, these conversations increasingly involve multiple business stakeholders, including marketing, sales, and customer success leaders, expanding our buyer base beyond IT. Second, employee journeys. Across employee-facing use cases, we are seeing strong interest in leveraging AI to improve productivity, training, and knowledge access. Customers are engaging with us around four primary themes: extending workforce capacity through AI-assisted interactions, accelerating content creation and internal communications, turning large content libraries into interactive knowledge bases, and enhancing training through more personalized and interactive experiences. We are seeing adoption of tools such as ContentLab and Genie expand within large enterprises, including global financial institutions, pharmaceutical companies, and professional services firms. These deployments are creating a strong foundation for future expansion into more advanced conversational and avatar-based use cases. For example, a large global professional services firm is expanding its use of our AI tools to scale internal communications and knowledge access across hundreds of thousands of employees, while a major financial institution has begun transforming support content into interactive self-serve learning experiences using our Genie platform. We also see growing interest in our avatar-based offerings for content creation, knowledge discovery, and role play simulations for sales training, enablement, and field support. Third, learner journeys. In education, discussions are increasingly centered around how AI can enable more personalized and interactive learning experiences. Use cases include AI-powered teaching assistants and tutors, personalized learning paths, automated content creation and adaptation, and improved accessibility. We are engaged in discussions with universities around using our Avatar video production studio to generate rich instructional content. We are also in discussions with institutions regarding the use of our agentic avatars as academic tutors, role play simulation tools, and support agents for administration and admission. Our modular architecture and integrations with learning systems position us well in these conversations, and we are seeing continued engagement from both existing institutions and new prospects. Fourth, audience journeys. In media and telecom, we are discussing how AI can enhance audience engagement and monetization. These discussions include more advanced content discovery and recommendation, personalized viewing experiences, new monetization models, and the introduction of interactive and conversational interfaces. These discussions range from AI-powered content recommendation and avatar concierge experiences to broader applications such as digital signage and customer engagement in large venues. It is worth noting we are also seeing growing interest for media and telecom companies to leverage our platform beyond traditional entertainment use cases, including customer journeys such as marketing and customer care, and employee journeys such as sales enablement. In summary, the increasing depth and breadth of these engagements reflects the progress we are making in our transition. As we evolve from powering video experiences to powering end-to-end rich, agentic digital experiences, our focus in 2026 is on integrating esoft.ai and PathFactory, packaging rich, agentic solutions around clear use cases, and driving early adoption. We are seeing early signs of momentum in customer engagement and pipeline activities, and continue to expect revenue contribution from our new product portfolio to begin in the second half of the year with a more meaningful impact in 2027. Before I close, I also want to highlight our upcoming Kaltura Connect on the Road 2026 event. We will be hosting events in New York, San Francisco, and London this week and next, bringing together customers and partners to discuss the evolution toward more personalized, AI-powered digital experiences. We are pleased to have participation from leading organizations including AWS, Cisco, IBM, MetLife, Morgan Stanley, and Palo Alto Networks. These events provide an important opportunity for customers and prospects to engage directly with our platform and roadmap, and we view the strong participation as further validation of the relevance of our strategy. Early feedback and participation levels are exceeding our expectations, with strong engagement from both existing customers and new prospects. You are invited to register for in-person or virtual participation through our website. To summarize, we delivered a strong Q1, exceeding expectations across revenue and adjusted EBITDA, and achieving a key milestone with positive first quarter operating cash flow. We launched new products based on the ESOP acquisition, and completed the PathFactory acquisition and are progressing well on integration. We have been expanding our platform capabilities and are seeing encouraging early validation across all four journeys we support, and are headed into the rest of the year with increased confidence reflected in our updated guidance. With that, I will turn it over to Liron. Liron? Liron Sharon: Thanks, Ron, and hello to everyone on the call today. As Ron noted, in the first quarter we once again exceeded the high end of our guidance across all metrics—subscription revenue, total revenue, and adjusted EBITDA—and generated for the first time cash flow from operations in the first quarter of the year. Let me now walk through the quarter in more detail. Total revenue for the quarter ended 03/31/2026 was $44.6 million, down 2% sequentially and 5% year-over-year, and exceeding the high end of our guidance range of $42.6 million to $43.4 million. Subscription revenue was $43.2 million, up 1% sequentially and down 4% year-over-year, and also exceeding the high end of our guidance range of $41.2 million to $42.0 million. As discussed during our last earnings call, this year-over-year decline was fueled by the elevated media and telecom churn experienced in 2025, which we forecast will improve this year, as well as by a large E&T customer that shifted from conducting large virtual events to many smaller ones that are planned to be conducted later in the year. Professional services revenue was $1.4 million, down 50% sequentially and 31% year-over-year, consistent with our increased multi-year focus on recurring subscription revenue. On a segment basis, E&T total revenue was $34.2 million, down 1% year-over-year, and subscription revenue was $33.7 million, flat year-over-year, while professional services revenue contributed $0.5 million, down 42% year-over-year. Within M&T, total revenue was $10.5 million, down 17% year-over-year, and subscription revenue was $9.5 million, down 16% year-over-year, while professional services revenue contributed $1.0 million, down 24% year-over-year. GAAP gross profit for the first quarter was $32.1 million, resulting in gross margin of 72%, up 200 basis points from Q1 2025. Subscription gross margin was 77%, in line with Q1 2025. The year-over-year improvement in gross margin reflects the continued benefit of our mix shift toward higher-margin subscription revenue. GAAP operating expenses for the quarter were $33.3 million, compared to $34.3 million in 2025, an improvement of 3% year-over-year, and that is despite incremental operating costs associated with the ESELF acquisition and FX headwinds. Adjusted EBITDA for the quarter was $5.7 million, an increase of $1.5 million from $4.1 million in 2025, and exceeding the high end of our guidance range of $2.3 million to $3.3 million. Adjusted EBITDA margin was 13%, an increase of 400 basis points year-over-year, which underscores our commitment to operational profitability also amid our strategic transition and investment in growth. GAAP net loss for the quarter was $3.8 million, or $0.03 per diluted share, compared to a net loss of $1.1 million, or $0.01 per diluted share, in Q1 2025. The year-over-year change in GAAP net loss reflects primarily non-cash and non-recurring expenses, including $3.8 million for non-cash stock-based compensation and $1.9 million for acquisition costs and other strategic initiatives. Non-GAAP net profit for the quarter was $2.1 million, or $0.01 per diluted share, compared to $2.0 million, or $0.01 per diluted share, in Q1 2025. Remaining performance obligations, or RPO, were $154.5 million, flat year-over-year. We expect to recognize 67% of this amount as revenue over the next 12 months. Annualized recurring revenue in the first quarter was $168.8 million, flat sequentially and down 3% year-over-year. Net dollar retention for the quarter was 95%, compared to 107% in the prior-year period and 97% in Q4 2025. As a reminder, NDR is a lagging indicator and reflects prior period bookings and retention dynamics. As such, it has been significantly impacted by last year’s heightened M&T gross churn, which we expect will materially improve this year, alongside also higher M&T and E&T bookings. Moving to the balance sheet and cash flow, we ended the quarter with $61.8 million in cash, cash equivalents, and marketable securities. Net cash generated from operating activities in the quarter was $0.7 million compared to $1.0 million used in operating activities in Q1 last year. This meaningful year-over-year improvement of $1.7 million also contributed to this quarter being our first Q1 with positive cash flow from operations. I will now turn to our outlook for Q2 2026 and for the full fiscal year ending 12/31/2026. For Q2 2026, we expect subscription revenue to grow 2% to 4% year-over-year to between $43.3 million and $44.1 million, total revenue to grow between 2% to 3% year-over-year to between $45.2 million and $46.0 million, and adjusted EBITDA to be between $2.0 million and $3.0 million. For the full year 2026, we are thoughtfully raising all our guidance numbers and slightly narrowing the guidance ranges. We now expect subscription revenue to grow 1% to 3% to between $174.5 million and $176.7 million, total revenue to grow 1% to 2% to between $182.6 million and $184.8 million, and adjusted EBITDA to be between $13.8 million and $15.2 million. We continue to expect subscription and total revenue to be up gradually throughout the year. We expect E&T to post a higher year-over-year growth rate compared to 2025, fueled by contribution from the PathFactory customer base and our new product portfolio, which is expected to start contributing revenue in the second half of the year with a stronger impact in 2027. We continue to forecast M&T year-over-year revenue decline this year due to the elevated churn in 2025, but expect to achieve both higher M&T new bookings and retention this year, which are forecasted to regenerate sequential quarterly M&T revenue growth in 2027. On the cost side, our guidance continues to take into consideration the PathFactory acquisition and expected post-merger integration costs as well as the continued expected impact of FX headwinds. To close, Q1 marked a solid start to the year. We remain focused on disciplined execution, careful capital allocation, and balancing growth with profitability to maximize long-term shareholder value. We will now open the call for questions. Operator? Operator: Ladies and gentlemen, we will now begin the question-and-answer session. If you would like to ask a question, a confirmation tone will indicate your line is in the question queue. You may press star and 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Ladies and gentlemen, we will wait for a moment while we poll for questions. Our first question comes from Ryan Koontz with Needham & Company. Please state your question. Ryan Koontz: Great, thanks. Ron, I want to ask you about the expanded portfolio. Clearly very forward-leaning here and it seems highly differentiated. Can you map how your customer engagements are going or give us some color relative to the different set of stakeholders—who you have traditionally sold to, what those engagements are like, and how you are positioning the new portfolio to really take a broader swath of engagement from your customers, and then obviously helping your customers improve their engagements with their end customers? Thanks. Ron Yekutiel: I appreciate it, Ryan, and thank you all for joining me today. Going back to the last couple of quarters and discussions we have had about our move from powering video experiences to powering agentic, rich experiences that cover the entire journey of customers, employees, learners, and audiences, I will give you examples of each. Before that, we have been beefing our content creation, management, and experience layers with more tools. On content creation, to remind you, we have our VOD-based avatar, which enables automatic content creation with avatars, and this runs on top of our ContentLab capabilities and additional creation tools that we have developed. On the content management side, we have the PathFactory intent-based content analytics and content intelligence platform that understands users and delivers them the next piece of content in the right context, for the right reason, at the right time. Then on the engagement layer, we have our agentic avatars and now also the role play simulation on top of that, plus the delivery of the traditional Genie products. It is quite a lot of new things, and they all come together into a flywheel when content is created, managed, and delivered in real time in conversational form. Let me give you examples across the four journeys. We started closing initial deals—again, they are small, and we expect more significant contribution to revenue in the second half of the year. At the beginning, they are more around customer journeys—POCs around sales, marketing, and customer support. They are coming from places like traditional tech, real estate, hospitality, consumer goods, M&T, and more. Looking at our broader pipeline, we have a few dozen opportunities, and they are mostly around the agentic avatars together with Genie, albeit there are already a few around the Avatar video production suite. These are about half and half between North America and Europe, and about half and half between upsells and new logos. We have more on the customer journey side, followed not far behind by the employee side, then learners, and the smaller one is audiences. I will note that audience is one part of what M&T customers do because M&T are also using us not just for TV, but also for their customer engagement and even employees. From an industry perspective, we have the most coming from tech and M&T, followed by education, then financial services, and then pharma, real estate, gaming, BPO, manufacturing, oil and gas, and food. Now, examples: for customer journeys, folks are coming to us for marketing, web personalization, customer outreach, and ABM—marketers creating full personalized experiences through interaction with what we do. We also have personalized events follow-ups—quite a few that already have done events and now are looking at one-on-one follow-ups with individuals. We have a couple starting to look into using us for SDRs and basic sales on the website. For customer training, they are looking to better enable their customers with information. Also customer care, renewal enablement, and partner enablement for large companies with marketplaces looking to have better tools for both enablement and support. Historically, we provided video on the website, portals, events, and webcasts—mere tools. Now you fulfill the full task and role; you are really becoming agentic. The outcomes being looked at are not just “people engaged with video,” but whether you are increasing pipeline, accelerating conversion, and reducing cost—real business outcomes. Regarding buyers, we have always had elements of the marketing department involved; now we have far deeper interest by C-levels on the marketing side, revenue side, and customer care side. Moving to employee journeys, we have folks looking at internal recruiting, communications, L&D and onboarding, IT help desk, digital receptionist, and sales enablement. Consider using an avatar-plus tool to train sales and deliver the right asset at the right time and place, including snippets and documents together with Genie. We also have field support use cases—people in the field needing real-time information. For learners, we have tutors providing one-on-one teaching and learning, role play in nursing schools and negotiation classes, mass content creation from documents and long videos into shorter videos, and even admissions assistance and community education. Lastly, on the audience side, we have recommendations, TV concierge, virtual assistants, and even physical events in big venues and point-of-sale kiosks. It is a far more robust set of interactions than in the past. The beauty is this is not a pivot or dropping video; this is the new way to use rich media, and many are connected to our other products. People are saying they need websites within this ABM motion, and they need events within customer engagement—it adds to what we have done. It is a long answer, but hopefully it gives you color, Ryan. Ryan Koontz: Yeah. Super interesting, Ron. Thank you. Operator: Our next question comes from DJ Hynes with Canaccord Genuity. Please state your question. Analyst: Hey, guys. This is Ryan on for DJ. Thanks for taking our questions. You have obviously added a ton of new functionality to the platform with ESELF and now PathFactory, and I know PathFactory is obviously new. Do you anticipate any sort of sales cycle elongation or digestion period as the salesforce gets up to speed with the new platform? Ron Yekutiel: Thank you for that question. Not necessarily, but let us remember sales cycles have always been classic large enterprise sales cycles. Historically, media and telecom could have been a year and a half, and the classic enterprise sales cycle—think salesforce.com—is often many months. I do not think they are further elongated; they are typical long sales cycles. We have already had inbounds for POCs and interest at the beginning of 2026 that we expect to see converting in the second half of this year. So they are not all going to be extra long, but some of them might be. Analyst: Okay, makes sense. And then if I could sneak one more in: we saw that you opened the platform to AI coding agents recently. Can you clarify how often you are seeing customers try to build these AI-led digital experiences internally or off the Kaltura platform, and are you able to monetize this third-party access? Ron Yekutiel: To be very clear, what we have enabled is the integration into Kaltura, Inc. to be by way of code that customers can run and use. This is not us open-sourcing our core technology or core offering. The avatars and the fullness of the Kaltura, Inc. platform are definitely our code and are not being released. What we find is strong interest to take these tools and insert them in a very flexible, open, transparent way into workflows and into the agents third parties are building. We have always taken the approach that video is not an island, and also the experiences and agents we provide are not an island. They need to be connected to databases, third-party systems, and enterprise workflows. We want to enable the lowest barrier for folks to take our tools, customize them, integrate them, insert them into workflows, and have them embedded within their operating environment. This is even more the case the more in-depth you are connected into the actual value generation of key KPIs of the company. So what we are seeing is companies—definitely tech, but beyond—saying, “We have our own agent factory and a bunch of things we do, but we appreciate how we need to turn our website into a dynamically generative environment, or transform training and learning for customers or employees.” They need these tools connected to their own RAG, to whatever LLMs they use, to whatever applications and agents they are building, and that is what we have enabled. Analyst: Gotcha. Thanks, Ron. Appreciate it. Operator: Ladies and gentlemen, this concludes the question-and-answer session. I would now like to hand the conference over to Ron Yekutiel, the CEO, for the closing remarks. Ron Yekutiel: I appreciate that, and thank you all for joining. We are on track and seeing interest in the new capabilities we have brought in. As stated, we have our event around the corner in New York, San Francisco, and London with great attendance—inviting all of you to register online. We are also going to be at the Needham 21st Annual Technology Conference and invite you to come meet us there. Lastly, as noted in our earnings PR, we have included in our quarterly investor deck a conversational agentic avatar that walks you through the presentation as an aid. You can ask it to explain slides and address additional questions—he is my avatar, but we could have used any avatar. I am sure you will find that helpful, and it showcases our technology. This is one of many things that we can and will do with our new tech. We are excited and looking forward to what is ahead. Have a beautiful day, a beautiful week, and thank you for your time. Operator: Ladies and gentlemen, the conference call of Kaltura, Inc. has now concluded. Thank you for your participation. You may now disconnect your lines. Before you buy stock in Kaltura, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Kaltura wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $471,827!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,319,291!* Now, it’s worth noting Stock Advisor’s total average return is 986% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 11, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Kaltura (KLTR) Q1 2026 Earnings Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Release Date: May 11, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Kaltura Inc (NASDAQ:KLTR) exceeded the high end of its guidance for revenue and adjusted EBITDA in Q1 2026. The company achieved positive cash flow from operations for the first time in a first quarter. Gross retention improved to its highest level in the last five quarters. Kaltura Inc (NASDAQ:KLTR) expanded its AI capabilities, including the launch of conversational avatar technology and the Avatar Video Production Studio. The acquisition of PathFactory was completed, enhancing content intelligence and journey orchestration capabilities. Total revenue decreased by 5% year-over-year, and subscription revenue decreased by 4% year-over-year. Professional services revenue declined by 50% sequentially and 31% year-over-year. Net dollar retention was 95%, down from 107% in the prior year period. The company reported a GAAP net loss of $3.8 million for the quarter. Media and telecom segments experienced elevated churn in 2025, impacting current performance. Warning! GuruFocus has detected 3 Warning Signs with KLTR. Is KLTR fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide insights into how customer engagements are evolving with your expanded portfolio and the different stakeholders involved? A: Ron Ukitel, CEO, explained that Kaltura is transitioning from powering video experiences to agentic, rich experiences across customer, employee, learner, and audience journeys. The company has enhanced its content creation and management tools, including VOD-based avatars and PathFactory's content intelligence platform. Initial deals are small, but significant contributions to revenue are expected in the second half of the year. Engagements are expanding beyond IT to include marketing, sales, and customer success leaders. Q: With the addition of eSelf and PathFactory, do you anticipate any elongation in the sales cycle as the sales force adapts to the new platform? A: Ron Ukitel, CEO, noted that while sales cycles have traditionally been long, typical of large enterprise sales, they do not expect further elongation. Some deals may convert in the second half of the year, indicating that not all will be extra long. Q: How are customers utilizing AI-led digital experiences, and is there potential for monetizing third-party access? A: Ron Ukitel, CEO, clarified that Kaltura's platform allows integration via code, not open-sourcing core technology. Customers are interested in embedding Kaltura's tools into their workflows, enhancing agentic interfaces. The company sees increased interest from tech companies and others in integrating these tools with their existing systems. Q: What are the key areas of interest for customers in the customer journey segment? A: Ron Ukitel, CEO, highlighted that customers are interested in marketing, website personalization, customer outreach, and ABM marketeers creating personalized experiences. There is also interest in customer training, care, renewal enablement, and partner support, showcasing a shift from mere video tools to fulfilling complete roles and tasks. Q: Are there any specific industries showing more interest in Kaltura's new solutions? A: Ron Ukitel, CEO, mentioned that the most interest comes from the tech and media & telecom sectors, followed by education and financial services. Other industries include pharma, real estate, gaming, BPO, manufacturing, oil and gas, and food, indicating a broad vertical interest in Kaltura's new solutions. For the complete transcript of the earnings call, please refer to the full earnings call transcript.