GET DAILY SIGNALSKaltura (KLTR) Delivers Record Revenue and Narrows Losses in Strong Q3
Key Takeaways
- Kaltura reported record total revenue of $47.3 million for the third quarter of 2026, up 8% year over year, with subscription revenue reaching a record $45.9 million.
- GAAP net loss narrowed to $1.5 million, or $0.01 per diluted share, versus a $2.6 million loss in the year-ago quarter.
- Adjusted EBITDA rose 45% year over year to $6 million, with a record third-quarter margin of 13%.
- Management raised full-year guidance for subscription revenue, total revenue, and Adjusted EBITDA for the third time this year.
- AI-related transactions more than tripled in value to roughly $3.8 million, underscoring growing commercial traction for Kaltura's newer offerings.
- New subscription bookings more than doubled sequentially, marking the company's strongest bookings quarter since 2024.
Why This Quarter Matters
Kaltura's third-quarter report offers a useful checkpoint for investors following the company's shift from a video platform provider toward an "Agentic Digital Experience" focus. Over the past year, Kaltura has completed two acquisitions, eSelf.AI and PathFactory, and expanded its lineup of AI-powered tools in learning, enablement, and customer engagement. The results help show whether those moves are starting to drive faster revenue growth and better profitability, even as the legacy Media and Telecom segment continues to face some churn. Strong bookings, higher Adjusted EBITDA, and a growing AI pipeline point to progress in the pivot, though gross churn and retention metrics will remain important to watch into the fourth quarter.
Quarterly Results in Detail
Kaltura posted third-quarter 2026 total revenue of $47.3 million, an 8% increase from a year earlier and a new company record. Subscription revenue climbed 9% to $45.9 million, also a record, while professional services revenue fell 29% to $1.4 million, aligning with the emphasis on recurring revenue. Enterprise, Education, and Technology revenue grew 14% to $36.9 million, whereas Media and Telecom revenue declined 10% to $10.3 million.
GAAP gross profit reached $33.9 million for a 72% margin, up 175 basis points from the prior-year period. Adjusted EBITDA increased 45% to $6 million, delivering a record third-quarter margin of 13%. For the first nine months of 2026, Adjusted EBITDA totaled $17.5 million, up 42% year over year. GAAP net loss narrowed to $1.5 million, or $0.01 per diluted share, compared with a $2.6 million loss, or $0.02 per share, in the third quarter of 2025. The numbers beat guidance on revenue, subscription revenue, and Adjusted EBITDA, while non-GAAP earnings per share of $0.02 exceeded consensus expectations of a $0.01 loss. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Market Reaction
Shares of KLTR rose in after-hours trading after the release, gaining roughly 10% as investors reacted to the earnings beat and the third upward revision to full-year guidance. The response highlighted both the record revenue and signs that AI-related bookings are gaining scale, with 15 AI-inclusive transactions worth about $3.8 million in total contract value. Net dollar retention improved for a second straight quarter, suggesting customer monetization is stabilizing. Management noted elevated gross churn linked to legacy contracts, however, which serves as a reminder that the Media and Telecom segment still exerts some near-term pressure even as the overall growth story strengthens.
Outlook and Items to Watch
Kaltura raised its full-year 2026 guidance for the third time, now pointing to total revenue of roughly $185 million to $185.7 million and expecting full-year Adjusted EBITDA to exceed the $18.6 million achieved in 2025. Management indicated that some churn pressure is likely to continue into the fourth quarter.
Looking ahead, several factors stand out. Retention metrics will be key, with management expecting full-year Media and Telecom gross retention to improve materially versus 2025, while Enterprise, Education, and Technology retention is projected to normalize from last year's strong level. The AI pipeline, now encompassing about 500 opportunities and more than 80 proofs of concept, provides an early signal of whether newer products can add more meaningfully in 2027. Integration of eSelf.AI and PathFactory is still ongoing, with related costs and foreign-exchange headwinds continuing to affect operating expenses. Finally, expansion of larger deals bears watching. The quarter included 11 six-figure contracts, among them three seven-figure agreements, and management highlighted the Israel Ministry of Education's "Project 720" pilot as a possible avenue for scaling AI-based learning solutions. How these deals develop will help determine whether accelerating bookings translate into sustained, profitable revenue growth.
Using AI Tools in My Research
When reviewing earnings reports like this one, I often turn to Tickeron’s AI tools to add context and spot related ideas. Their AI Screener lets me filter quickly across technical patterns, fundamentals, and industry peers, which helps me evaluate how KLTR stacks up against other technology names without spending hours on manual checks. It has become a regular part of how I prepare for these updates.
Disclaimer
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
KLTR in downward trend: price may decline as a result of having broken its higher Bollinger Band on October 28, 2026
KLTR broke above its upper Bollinger Band on October 28, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options. The A.I.dvisor looked at 33 similar instances where the stock broke above the upper band. In 31 of the 33 cases the stock fell afterwards. This puts the odds of success at 90%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 53 of 59 cases where KLTR's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 90%.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 09, 2026. You may want to consider a long position or call options on KLTR as a result. In 71 of 87 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 82%.
The Moving Average Convergence Divergence (MACD) for KLTR just turned positive on October 07, 2026. Looking at past instances where KLTR's MACD turned positive, the stock continued to rise in 44 of 49 cases over the following month. The odds of a continued upward trend are 90%.
KLTR moved above its 50-day moving average on October 27, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for KLTR crossed bullishly above the 50-day moving average on October 29, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 14 of 19 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 74%.
Following a +7.14% 3-day Advance, the price is estimated to grow further. Considering data from situations where KLTR advanced for three days, in 169 of 224 cases, the price rose further within the following month. The odds of a continued upward trend are 75%.
The Aroon Indicator entered an Uptrend today. In 84 of 111 cases where KLTR Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 76%.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is 46 (best 1 - 100 worst), indicating steady price growth. KLTR’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 58 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 95 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (137.044) is normal, around the industry mean (-1.906). P/E Ratio (-19.000) is within average values for comparable stocks, (9.554). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.824). Dividend Yield (0.000) settles around the average of (0.069) among similar stocks. P/S Ratio (1.172) is also within normal values, averaging (70.383).
The Tickeron SMR rating for this company is 99 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. KLTR’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock worse than average.
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