Kaltura (NASDAQ:KLTR) Releases Quarterly Earnings Results, Beats Expectations By $0.03 EPS

Key Points

• Kaltura beat quarterly expectations, reporting EPS of $0.02 versus the consensus estimate of a $0.01 loss, and revenue of $47.27 million versus $46.10 million expected.
• Q3 revenue reached a record $47.3 million, up 8% year over year, while adjusted EBITDA increased 45% to $6 million. The company raised its full-year revenue and EBITDA guidance for the third time.
• Management flagged near-term headwinds: legacy-contract churn rose, and Q4 guidance points to slower revenue growth of 1%–3%; subscription revenue trends also varied by segment.

Kaltura (NASDAQ:KLTR - Get Free Report) announced its earnings results on Monday. The company reported $0.02 earnings per share for the quarter, beating the consensus estimate of ($0.01) by $0.03, FiscalAI reports. Kaltura had a negative return on equity of 51.05% and a negative net margin of 6.92%. The company had revenue of $47.27 million during the quarter, compared to the consensus estimate of $46.10 million.

Here are the key takeaways from Kaltura's conference call:

• Kaltura reported record Q3 revenue of $47.3 million, up 8% year over year, and record subscription revenue of $45.9 million, up 9%. Adjusted EBITDA rose 45% to $6 million, and the company raised its full-year revenue and EBITDA guidance for the third time, now expecting EBITDA to exceed 2025’s $18.6 million.
• Commercial activity strengthened: new subscription bookings more than doubled sequentially, making Q3 the strongest bookings quarter since 2024, with three seven-figure deals. AI offerings featured in 15 transactions totaling about $3.8 million in contract value, while the AI-related pipeline’s assigned potential ACV grew more than 40% to $24 million; management cautioned that these figures include broader deals and do not represent standalone AI bookings.
• Gross churn increased in Q3 due to legacy contracts, and management expects some near-term pressure to continue in Q4. Net dollar retention improved to 97%, and the company expects full-year gross retention to improve versus 2025, but the churn remains a near-term headwind.
• Growth remains uneven: EE&T subscription revenue increased 15% year over year, while M&T subscription revenue declined 7%. Q4 guidance implies slower growth than Q3, with total revenue growth of 1%–3% and subscription revenue growth of 4%–5%.

Kaltura Stock Down 5.9%

Shares of KLTR traded down $0.09 during midday trading on Monday, hitting $1.43. The company had a trading volume of 398,077 shares, compared to its average volume of 494,801. The company's 50 day moving average price is $1.41 and its 200 day moving average price is $1.40. The stock has a market cap of $218.15 million, a price-to-earnings ratio of -15.89 and a beta of 1.24. Kaltura has a 52 week low of $1.05 and a 52 week high of $2.05.

Insider Activity

In other news, Director Eyal Manor sold 20,795 shares of the stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $1.58, for a total transaction of $32,856.10. Following the transaction, the director owned 249,965 shares of the company's stock, valued at approximately $394,944.70. This trade represents a 7.68% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. In the last quarter, insiders have sold 152,184 shares of company stock valued at $226,477. Corporate insiders own 16.30% of the company's stock.

Analyst Ratings Changes

A number of brokerages recently commented on KLTR. Weiss Ratings reissued a "sell (e+)" rating on shares of Kaltura in a report on Friday, September 11th. Wall Street Zen downgraded Kaltura from a "buy" rating to a "hold" rating in a report on Sunday. One investment analyst has rated the stock with a Buy rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $3.00.

About Kaltura

Kaltura, Inc provides cloud-based video technology and software designed to help organizations create, manage, distribute and analyze video content. Its platform serves businesses, educational institutions, media companies and other organizations that use video for communications, collaboration, training, learning and audience engagement.

The company's offerings include video management and hosting, live and on-demand streaming, virtual events, webinars, video conferencing, virtual classrooms and interactive video experiences.

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