Kaltura (KLTR) Earnings Date & Reports

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 (Generally Accepted Accounting Principles) 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 (earnings before interest, taxes, depreciation, and amortization) 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.
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Earnings Context and Why It Matters

Kaltura's third-quarter report is a key signal for investors tracking the company's transition from a video platform provider into an "Agentic Digital Experience" company. Over the past year, Kaltura has integrated two acquisitions, eSelf.AI and PathFactory, while building out AI-powered products across learning, enablement, and customer engagement. The quarter matters because it tests whether those investments are converting into faster revenue growth and improved profitability, particularly as the legacy Media and Telecom (M&T) segment continues to face churn. Strong bookings, rising Adjusted EBITDA, and an expanding AI pipeline would suggest the strategic pivot is gaining traction, even as gross churn and retention remain watchpoints heading into the fourth quarter.

Reported Results

Kaltura reported third-quarter 2026 total revenue of $47.3 million, up 8% year over year and a record for the company. Subscription revenue rose 9% to a record $45.9 million, while professional services revenue declined 29% to $1.4 million, consistent with the company's emphasis on recurring subscription revenue. By segment, Enterprise, Education, and Technology (EE&T) revenue grew 14% to $36.9 million, while M&T revenue fell 10% to $10.3 million.

GAAP gross profit reached $33.9 million, with gross margin of 72%, up 175 basis points from the prior-year period. Adjusted EBITDA climbed 45% to $6 million, producing a record third-quarter Adjusted EBITDA 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 results exceeded management's guidance on revenue, subscription revenue, and Adjusted EBITDA, and non-GAAP earnings per share came in at $0.02, ahead of consensus expectations of a $0.01 loss.

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Market Reaction and Investor Sentiment

Shares of Kaltura rose in after-hours trading following the report, gaining roughly 10% as investors responded to the earnings beat and the third upward revision to full-year guidance. The positive reception reflected both the record revenue print and evidence that AI-related bookings are beginning to scale, with 15 AI-inclusive transactions worth approximately $3.8 million in total contract value. Net dollar retention improved for a second consecutive quarter, reinforcing the view that customer monetization is stabilizing. At the same time, management flagged elevated gross churn tied to legacy contracts, a reminder that the M&T segment remains a source of near-term revenue pressure even as the broader growth narrative strengthens.

Forward Outlook and Key Factors to Monitor

Kaltura raised its full-year 2026 outlook for the third time, now guiding to total revenue of approximately $185 million to $185.7 million and expecting full-year Adjusted EBITDA to exceed the $18.6 million delivered in 2025. Management also signaled that some near-term churn pressure is likely to persist into the fourth quarter.

Looking ahead, investors should monitor several factors. First, retention metrics will be central: management expects full-year M&T gross retention to improve materially versus 2025, while EE&T retention is expected to normalize from last year's unusually strong level. Second, the AI pipeline, which now includes roughly 500 opportunities and more than 80 proofs of concept, offers a leading indicator of whether newer products can contribute more meaningfully in 2027. Third, the integration of eSelf.AI and PathFactory remains a work in progress, with associated costs and foreign-exchange (FX) headwinds still flowing through operating expenses.

Finally, watch for expansion of large transactions. The quarter produced 11 deals with six-figure contract values, including three seven-figure agreements, and management pointed to the Israel Ministry of Education's "Project 720" pilot as a potential channel for scaling AI-based learning solutions. How these deals convert and expand over time will help determine whether Kaltura's accelerating bookings translate into sustained, profitable revenue growth.

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