NEW YORK, March 16, 2026 (GLOBE NEWSWIRE) -- Kaltura, Inc. ("Kaltura" or the "Company"), the rich, agentic digital experience platform, today announced financial results for the fourth quarter and full year ended December 31, 2025, as well as outlook for first quarter and full year 2026.

Total revenue for the fourth quarter was $45.5 million, above the midpoint of the guidance range, with subscription revenue of $42.7 million, above the high end of the guidance range. Adjusted EBITDA for the quarter was $6.3 million, also above the high end of the guidance range, representing a new record and the Company's tenth consecutive quarter of Adjusted EBITDA profitability.

For the full year 2025, total revenue was $180.9 million, representing 1% year-over-year growth, and Adjusted EBITDA was $18.6 million, representing more than 150% year-over-year growth and materially exceeding the Company's original annual guidance of approximately 100% growth.

Ron Yekutiel, Co-Founder, Chairman, President, and Chief Executive Officer of Kaltura said, "We ended 2025 with strong operational momentum and efficiency, achieving the highest level of new bookings and gross retention in the year and record Adjusted EBITDA profitability, while making a meaningful step forward in our long-planned evolution from providing a video platform to powering rich, agentic digital experiences.

In the fourth quarter, we closed the acquisition of eSelf.ai, a leader in AI avatars and multimodal conversation, and earlier today, we announced that we entered into a definitive agreement to acquire PathFactory, a provider of AI-driven content and user intelligence, journey orchestration, and conversation automation solutions. Our continued investment in AI, alongside these two strategic acquisitions, are aimed at expanding our capabilities in the emerging Conversation Automation and Agentic Engagement Solutions market.

As organizations increasingly seek to move beyond static, same-for-all digital experiences toward richer, more personalized, contextualized, and conversational engagement, we believe Kaltura's evolved platform - which combines real-time AI-based rich-media content creation, intelligent content and user management, and agentic conversational experiences - positions us well to capture this emerging opportunity. This further bolsters our confidence in returning to a 'Rule of 30' combination of double-digit revenue growth and adjusted EBITDA margin by 2028 or before."

Fourth Quarter 2025 Business Highlights:

   -- Closed the acquisition of eSelf.ai and initiated integration of its AI 
      avatar and multimodal conversational technology, strengthening Kaltura's 
      ability to generate AI-based videos and deliver real-time multimodal 
      conversational experiences across its platform. 
   -- Achieved the highest level of new bookings in 2025, including two 
      seven-figure and fifteen six-figure new deals, as well as seven 
      AI-related deals for Content Lab and Genie. New deals spanned industries 
      including technology, financial services, healthcare, manufacturing, 
      education, and media & telecom. 
   -- Achieved the highest gross retention level of 2025, concluding the year 
      with EE&T gross retention at its highest level in the last five years. 
   -- Introduced new Genie capabilities across the Kaltura platform, enabling 
      conversational interaction with individual video assets and supporting 
      richer personalization and contextual user experiences. 
   -- Received additional industry recognition, named a leader in Frost & 
      Sullivan's 2025 'Global Enterprise Video Platform Market Radar' research, 
      citing Kaltura's advanced AI capabilities, and early move into agentic 
      AI. 

Subsequent Events

   -- Signed a definitive agreement to acquire PathFactory, a provider of 
      AI-driven content journey orchestration and conversation automation 
      solutions, expanding Kaltura's capabilities in understanding user intent 
      and generating personalized digital engagement experiences. Under the 
      terms of the acquisition agreement and subject to customary closing 
      conditions, Kaltura expects to acquire PathFactory for approximately $22 
      million in cash, and for the transaction to close in the second quarter 
      of 2026. Additional information is provided today in a separate press 
      release. 
   -- Launched a beta program for Kaltura's Avatar Video Creation Studio, 
      enabling customers to generate avatar-based video content at scale and 
      transform pre-recorded avatars into interactive conversational 
      experiences. Additional information is provided today in a separate press 
      release. 
   -- Announced the general availability of Kaltura's Agentic Avatar and Avatar 
      SDK, enabling conversational avatar experiences and providing developers 
      and system integrators with APIs and tools to build custom conversational 
      video experiences. Additional information was provided in a press release 
      last week. 

Fourth Quarter 2025 Financial Highlights

   -- Total revenue for the fourth quarter of 2025 was $45.5 million, almost 
      flat compared to $45.6 million for the fourth quarter of 2024, and above 
      the midpoint of the Company's guidance range of $45.0 million to $45.7 
      million. 
 
   -- Subscription revenue for the fourth quarter of 2025 was $42.7 million, a 
      decrease of 2% compared to $43.4 million for the fourth quarter of 2024, 
      and above the high end of the Company's guidance range of $41.6 million 
      to $42.3 million. 
 
   -- On a reporting-segment basis, Enterprise, Education and Technology (EE&T) 
      total revenue increased 4% year-over-year in the fourth quarter, while 
      Media & Telecom (M&T) total revenue declined 12% year-over-year, 
      primarily due to churn experienced during the year. 
 
   -- Annualized Recurring Revenue $(ARR)$ was $168.2 million, a decrease of 3% 
      compared to $173.9 million in 2024. 
 
   -- GAAP Gross profit for the fourth quarter of 2025 was $33.0 million, 
      representing a gross margin of 72% compared to a GAAP gross profit of 
      $32.3 million and gross margin of 71% for the fourth quarter of 2024. 
 
   -- Subscription gross margin was 78%, compared to 77% for the fourth quarter 
      of 2024. 
 
   -- Non-GAAP Gross profit for the fourth quarter of 2025 was $33.1 million, 
      representing a non-GAAP gross margin of 73%, compared to a non-GAAP gross 
      profit of $32.6 million and non-GAAP gross margin of 71% for the fourth 
      quarter of 2024. 
 
   -- Total operating expenses for the fourth quarter of 2025 were $32.1 
      million, compared to $36.1 million for the fourth quarter of 2024. 
 
   -- GAAP Operating profit was $0.9 million for the fourth quarter of 2025, 
      compared to an operating loss of $3.8 million for the fourth quarter of 
      2024. 
 
   -- Non-GAAP Operating profit was $5.2 million for the fourth quarter of 
      2025, compared to a non-GAAP operating profit of $1.5 million for the 
      fourth quarter of 2024. 
 
   -- GAAP Net loss was $0.6 million or $0.00 per diluted share for the fourth 
      quarter of 2025, compared to a GAAP net loss of $6.6 million, or $0.04 
      per diluted share, for the fourth quarter of 2024. 
 
   -- Non-GAAP Net profit was $5.2 million or $0.03 per diluted share for the 
      fourth quarter of 2025, compared to a non-GAAP net profit of $0.2 million, 
      or $0.00 per diluted share, for the fourth quarter of 2024. 
 
   -- Adjusted EBITDA was $6.3 million for the fourth quarter of 2025, compared 
      to Adjusted EBITDA of $2.7 million for the fourth quarter of 2024, and 
      above the high end of the Company's guidance range of $4.2 million to 
      $5.2 million, and representing a year-over-year increase of $3.6 million. 

Full Year 2025 Financial Highlights

   -- Total revenue for the full year of 2025 was $180.9 million, an increase 
      of 1% compared to $178.7 million for the full year of 2024. 
 
   -- Subscription revenue for the full year of 2025 was $171.9 million, an 
      increase of 3% compared to $167.7 million for the full year of 2024. 
 
   -- On a reporting segment basis, EE&T total revenue increased 4% 
      year-over-year, while M&T total revenue declined 7% year-over-year, 
      primarily due to churn experienced during the year. 
 
   -- GAAP Gross profit for the full year of 2025 was $127.7 million, 
      representing a gross margin of 71% compared to a GAAP gross profit of 
      $119.1 million and gross margin of 67% for the full year of 2024. 
 
   -- Subscription gross margin was 77%, compared to 75% for the full year of 
      2024. 
 
   -- Non-GAAP Gross profit for the full year of 2025 was $128.3 million, 
      representing a gross margin of 71% compared to a non-GAAP gross profit of 
      $120.5 million and gross margin of 67% for the full year of 2024. 
 
   -- Total operating expenses for the full year of 2025 were $132.6 million, 
      compared to $143.2 million for the full year of 2024. 
 
   -- GAAP Operating loss was $5.0 million for the full year of 2025, compared 
      to an operating loss of $24.1 million for the full year of 2024. 
 
   -- Non-GAAP Operating profit was $14.3 million for the full year of 2025, 
      compared a non-GAAP operating profit of $2.7 million for the full year of 
      2024. 
 
   -- GAAP Net loss was $12.1 million or $0.08 per diluted share for the full 
      year of 2025, compared to a GAAP net loss of $31.3 million, or $0.21 per 
      diluted share, for the full year of 2024. 
 
   -- Non-GAAP Net profit was $11.5 million or $0.07 per diluted share for the 
      full year of 2025, compared to a non-GAAP net loss of $4.7 million, or 
      $0.03 per diluted share, for the full year of 2024. 
 
   -- Adjusted EBITDA was $18.6 million for the full year of 2025, an increase 
      of more than 150% compared to an Adjusted EBITDA of $7.3 million for the 
      full year of 2024. 

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March 16, 2026 16:06 ET (20:06 GMT)