Earnings call transcript: Kaltura beats EPS forecast in Q4 2025

Kaltura Inc. (KLTR) reported its fourth-quarter 2025 earnings, significantly surpassing EPS expectations with a reported $0.03 per share compared to the forecasted $0.0006, marking a remarkable 4900% surprise. Revenue reached $45.5 million, slightly above the anticipated $45.32 million. Following the announcement, Kaltura’s stock rose 0.74% in aftermarket trading to $1.36, signaling cautious optimism among investors.

Kaltura’s overall performance in Q4 2025 reflected strong operational efficiency, with record adjusted EBITDA and improved gross margins. Despite flat revenue growth year-over-year, the company managed to beat EPS expectations significantly, demonstrating effective cost management and profitability enhancements. According to InvestingPro data, the company maintains a gross profit margin of 70% over the last twelve months, underscoring its operational strength. Notably, an InvestingPro tip highlights that analysts predict the company will be profitable this year, with full-year EPS forecast at $0.05, despite not being profitable over the last twelve months.

Kaltura’s earnings per share of $0.03 far exceeded the forecast of $0.0006, representing a 4900% surprise. Revenue slightly surpassed expectations at $45.5 million versus the forecasted $45.32 million, marking a 0.4% surprise.

The stock price of Kaltura increased by 0.74% in aftermarket trading, reaching $1.36. This movement reflects a positive investor response to the significant EPS beat, despite the modest revenue surprise and flat year-over-year growth. The modest gain comes after a challenging period, with the stock down 6% over the past week and 15% year-to-date. With a market capitalization of $215 million and current valuation metrics suggesting the stock may be overvalued according to InvestingPro’s Fair Value analysis, investors appear cautiously optimistic. For deeper insights into KLTR’s valuation and access to exclusive ProTips—including 3 additional tips beyond those mentioned here—visit the comprehensive analysis available on InvestingPro.

Looking forward, Kaltura projects continued focus on enhancing its agentic digital experience platform. The company plans to expand its avatar technology and integrate PathFactory’s capabilities, with anticipated revenue contributions from new products in the second half of 2026. Analysts remain constructive on the stock, with price targets ranging from $3 to $4, suggesting significant upside potential from current levels. Investors seeking a complete picture of KLTR’s prospects can access the detailed Pro Research Report, one of 1,400+ comprehensive reports available exclusively on InvestingPro, transforming complex financial data into clear, actionable intelligence.

Ron Yekutiel, Co-founder and CEO, stated, "Our significant EPS beat underscores the effectiveness of our operational strategies and cost management." He also highlighted the company’s strategic shift towards agentic digital experiences, positioning Kaltura for future growth.

During the earnings call, analysts inquired about the company’s strategy for addressing flat revenue growth and the integration plans for PathFactory. Executives emphasized the focus on expanding digital experience offerings and leveraging new acquisitions to drive growth.

Operator: Good day, everyone, and welcome to the Kaltura fourth quarter and full year 2025 earnings call. All material contained in the webcast is the sole property and copyright of Kaltura with all rights reserved. For opening remarks and introductions, I’ll now turn the call over to Erica Mannion at Sapphire Investor Relations. Please go ahead, Erica.

Erica Mannion, Investor Relations, Sapphire Investor Relations: Thank you, operator, and good afternoon. I am joined by Ron Yekutiel, Kaltura’s Co-founder, Chairman, President, and Chief Executive Officer, and Liron Sharon, Executive Vice President of FP&A and Interim Principal Financial Officer. Ron will provide a summary of the results for the fourth quarter ended December 31, 2025, along with the business and strategy update. Liron will then review financial results for the quarter and full year 2025, as well as the company’s outlook for the first quarter and full year 2026. We will then open the call for questions.

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’s expected future financial results, management’s expectations and plans for the business, including our pending acquisition of PathFactory and upcoming product launches and our expectations around capabilities and benefits of our 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’s annual report on Form 10-K for the year ended December 31, 2024, and other SEC filings, including our annual report on Form 10-K for the fiscal year ended December 31, 2025, to be filed with the SEC.

Any forward-looking statements made during this conference call, including responses to your questions, are based on current expectations as of today, and Kaltura 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, adjusted EBITDA and adjusted EBITDA margin during this call. For reconciliation of adjusted EBITDA to the most directly comparable GAAP metric, please refer to our earnings release, which is available on our website at www.investors.kaltura.com. Now, I would like to turn the call over to Ron.

Ron Yekutiel, Co-founder, Chairman, President, and Chief Executive Officer, Kaltura: Thank you, Erica, and thanks everyone for joining us on the call this afternoon. Today, we reported total revenue of $45.5 million for the fourth quarter of 2025 and subscription revenue of $42.7 million. We posted a record adjusted EBITDA of $6.3 million, representing our tenth consecutive quarter of adjusted EBITDA profitability. This brought full year 2025 adjusted EBITDA to $18.6 million, a 150% year-over-year increase and materially above our original guidance of 100% growth. We’re pleased with the continued improvement in our operating efficiency while advancing our long-term strategic positioning. New subscription bookings in the fourth quarter were at the highest level of 2025. We closed two seven-digit and 15 six-digit new deals across industries, including technology, financial services, healthcare, manufacturing, education, and media and telecom.

We closed seven AI-related deals for Content Lab and Genie, reflecting continued customer interest in our automation and personalization capabilities. Gross retention in the fourth quarter was stronger than in any previous quarter in 2025, and we concluded the year as expected with the highest E&T gross retention level in five years. Our market leadership was once again recognized by tech analysts in the past quarter, this time by Frost & Sullivan in their 2025 Frost Radar: Enterprise Video Platforms, where they also cited our advanced AI capabilities and early move into agentic AI. In other exciting news, earlier today we announced that we entered into a definitive agreement to acquire PathFactory. This acquisition remains subject to customary closing conditions. PathFactory is a provider of AI-driven content journey orchestration and conversation automation.

The company helps enterprises understand user context and intent and automatically assemble and sequence personalized visual experiences designed to improve engagement and outcomes. PathFactory serves over 100 enterprise customers, including global brands such as NVIDIA, Cisco, AVEVA, Palo Alto Networks, and LG. The company was recently recognized as a leader in the Q4 2025 Forrester Wave: Conversation Automation Solutions for B2B. The report acknowledged PathFactory’s unique approach of leveraging generative AI and content intelligence to help B2B go-to-market teams create personalized self-service B2B buying journeys. The other recognized leaders in this wave were Qualified, that was recently acquired by Salesforce for over $1 billion, and 6sense, whose last funding round was at a reported valuation of over $5 billion. PathFactory adds an important layer of agentic journey-level intelligence to our platform.

While Kaltura has long powered rich media creation, management, and experience delivery at enterprise scale. eSelf.ai, which we acquired last quarter, enriched our real-time conversational capabilities and content creation with avatars. PathFactory will bring the ability to understand what each user is trying to accomplish and orchestrate the most impactful, personalized sequence of content delivery and interaction accordingly. To date, PathFactory’s primary applicability has been in improving B2B top-of-funnel marketing conversion by supporting account-based marketing motions, ABM, with insights, personalized customer microsites, and chat agents. We plan to continue supporting this valuable use case and to gradually expand its applicability to additional B2B and B2C customer experience use cases, including bottom-of-funnel marketing, sales enablement, customer and partner enablement, onboarding and support, as well as employee and learner experiences such as internal communications, training and education.

Organizations are producing more content, engaging users across more channels, and particularly in the age of agentic AI, are increasingly seeking systems of engagement that move beyond static one-size-fits-all digital experiences to deliver personalized, contextual, interactive, and conversational experiences at scale. Our expanded platform is well aligne