Kaltura (NASDAQ:KLTR) reported fourth-quarter and full-year 2025 results that management said reflected continued operating efficiency gains alongside a strategic shift toward what it described as an “agentic digital experience platform.” The company also announced it has entered into a definitive agreement to acquire PathFactory, an AI-driven content journey orchestration and conversation automation provider, in a deal it expects will broaden Kaltura’s addressable market and expand its AI capabilities.
Quarterly results and profitability trends
For the fourth quarter ended December 31, 2025, Kaltura reported total revenue of $45.5 million and subscription revenue of $42.7 million. Liron Sharon, EVP of FP&A and Interim Principal Financial Officer, said total revenue was up 4% sequentially and “almost flat” year-over-year, while subscription revenue was up 2% sequentially and down 2% year-over-year. Professional services revenue was $2.9 million, up 31% year-over-year.
GAAP net loss for the quarter was $0.6 million, or $0.00 per diluted share, which Sharon said was a $6 million year-over-year improvement. Non-GAAP net profit was $5.2 million, or $0.03 per diluted share, which management characterized as a quarterly record.
Full-year 2025 performance
For full-year 2025, Kaltura reported total revenue of $180.9 million, up 1% year-over-year, and subscription revenue of $171.9 million, up 3% year-over-year. Professional services revenue was $8.9 million, down 19% year-over-year, consistent with trends previously discussed by the company.
Adjusted EBITDA for 2025 was $18.6 million, a more than 150% year-over-year increase from $7.3 million in 2024. Yekutiel said the result was “materially above” the company’s original guidance that targeted 100% growth. GAAP net loss for the year was $12.1 million, or $0.08 per diluted share, improving from a $31.3 million loss in 2024. Non-GAAP net profit was $11.5 million, or $0.07 per diluted share, compared with a non-GAAP net loss of $4.7 million in 2024.
Sharon said GAAP gross margin was 72% in the fourth quarter (71% in Q4 2024) and 71% for full-year 2025 (67% in 2024). Subscription gross margin was 78% in the fourth quarter (77% in Q4 2024) and 77% for the year (75% in 2024). Total operating expenses in the fourth quarter were $32.1 million, down from $36.1 million a year earlier.
Bookings, retention, and segment commentary
Yekutiel said new subscription bookings in the fourth quarter were the highest level of 2025, including “two seven-digit and 15 six-digit new deals” across multiple industries. He also said the company closed seven AI-related deals for Content Lab and Genie.
On retention, Yekutiel said gross retention in the fourth quarter was stronger than any earlier quarter in 2025 and that the company ended the year with its highest Enterprise & Training (E&T) gross retention level in five years.
Sharon provided segment detail, stating that in the fourth quarter, E&E&T total revenue increased 4% year-over-year, while Media & Telecom (M&T) total revenue declined 12% year-over-year due to elevated churn experienced earlier in the year. For full-year 2025, E&E&T total revenue increased 4% year-over-year and M&T total revenue declined 7% for the same reason.
Additional metrics included remaining performance obligation (RPO) of $166.3 million, up 4% sequentially and down 6% year-over-year; the company expects to recognize 64% of RPO as revenue over the next 12 months. Annualized recurring revenue was $168.2 million, down 3% year-over-year. Net dollar retention was 97% in the fourth quarter (down from 103% in the same quarter last year) and 100% for full-year 2025, unchanged from 2024.
PathFactory acquisition and AI product roadmap
Kaltura announced it has entered into a definitive agreement to acquire PathFactory, which Yekutiel described as a provider of “AI-driven content journey orchestration and conversation automation.” The transaction remains subject to customary closing conditions, and the company expects to acquire PathFactory for approximately $22 million in cash.
Management said PathFactory serves over 100 enterprise customers, citing examples including NVIDIA, Cisco, AVEVA, Palo Alto Networks, and LG, and was recognized as a leader in the Q4 2025 Forrester Wave: Conversation Automation Solutions for B2B. Yekutiel said PathFactory adds “agentic journey-level intelligence” to Kaltura’s platform by helping understand user context and intent and orchestrate personalized content sequences. He positioned the combination of Kaltura, eSelf.ai (acquired in the prior quarter), and PathFactory as foundational to Kaltura’s “multi-year evolution from a video platform to an agentic digital experience platform.”
In the Q&A, Yekutiel said PathFactory adds content intelligence beyond video (including documents and files), third-party integrations such as CRMs and marketing automation platforms, user analysis and intent understanding, and orchestration for user journeys. He said PathFactory has focused primarily on top-of-funnel B2B marketing but that Kaltura intends to expand use cases toward bottom-of-funnel activities and other customer, partner, and internal experiences over time.
On the product side, Yekutiel said Kaltura recently announced general availability of its “agentic avatars,” along with general availability of an avatar SDK, and also launched a beta program for an avatar video creation studio. He said the company expects to make the studio generally available in the second quarter and reiterated that the company expects to begin recognizing revenue from these new products in the second half of 2026.
2026 outlook and financial positioning
For the first quarter of 2026, Kaltura guided for subscription revenue of $41.2 million to $42.0 million, total revenue of $42.6 million to $43.4 million, and adjusted EBITDA of $2.3 million to $3.3 million. Sharon said the company expects a seasonal level of negative cash flow from operations similar to the first quarter of last year.
Sharon said Q1 guidance includes an E&T headwind tied to a large customer shifting from large virtual events to many smaller events planned to be conducted later in the year, as well as a year-over-year M&T revenue decline in the “mid- to high teens%” due to the effect of last year’s churn.
For full-year 2026, the company guided for subscription revenue of $172.5 million to $175.5 million and total revenue of $181.2 million to $184.2 million. Adjusted EBITDA guidance was $12.7 million to $14.7 million, which Sharon said incorporates the expected impact of the PathFactory acquisition and related integration and investment, as well as increased foreign exchange headwinds affecting operating costs.
Sharon also said Kaltura expects to generate low double-digit cash flow from operations in 2026, with most of it generated in the second half of the year. The company ended the fourth quarter with $62.8 million in cash and marketable securities and reported net cash provided by operating activities of $14.5 million for full-year 2025.
About Kaltura (NASDAQ:KLTR)
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.
