Kaltura (NASDAQ:KLTR) Announces Earnings Results

Key Points

• Kaltura beat quarterly expectations: Revenue rose 5% year over year to $46.9 million, while adjusted EBITDA increased 44% to a record $5.9 million and non-GAAP gross margin reached 75%.
• Full-year 2026 guidance was raised to $183 million-$185 million in total revenue and $15.8 million-$17.2 million in adjusted EBITDA, supported by growth in AI offerings and the PathFactory integration.
• Challenges remain despite accelerating AI adoption: Net dollar retention fell to 96%, Media and Telecom revenue declined 10%, and management expects ongoing attrition in legacy and PathFactory contracts.

Kaltura (NASDAQ:KLTR - Get Free Report) posted its quarterly earnings data on Wednesday. The company reported $0.01 earnings per share for the quarter, beating the consensus estimate of ($0.01) by $0.02, FiscalAI reports. Kaltura had a negative net margin of 8.25% and a negative return on equity of 35.91%. The company had revenue of $46.89 million during the quarter, compared to analyst estimates of $45.60 million.

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

• Q2 results exceeded guidance: Revenue rose 5% year over year to $46.9 million, subscription revenue increased 8% to $45.6 million, and adjusted EBITDA grew 44% to a record $5.9 million. Non-GAAP gross margin also reached a record 75%.
• Kaltura reported accelerating AI adoption, with a record 14 new deals—including nine involving Agentic Avatars—and more than 500 AI-related pipeline opportunities representing approximately $17 million of non-weighted potential annual contract value. Management expects limited AI revenue in the second half of 2026 but a more meaningful contribution in 2027.
• Management raised full-year 2026 guidance to subscription revenue of $176.6 million-$178.6 million, total revenue of $183 million-$185 million, and adjusted EBITDA of $15.8 million-$17.2 million, while continuing to invest in AI products and PathFactory integration.
• Retention and certain business segments remain pressured: net dollar retention was 96%, Media and Telecom revenue declined 10% year over year, and management expects continued churn or attrition in legacy contracts, including PathFactory customers, over the next several quarters.
• Kaltura is repositioning around Agentic Revenue Engagement and Agentic Learning and Enablement, combining its platform with PathFactory's content intelligence. The strategy could broaden the addressable market, but the company acknowledged that the standalone PathFactory business is declining and that the new offerings are still early in commercialization.

Kaltura Trading Up 33.9%

KLTR traded up $0.47 during trading on Wednesday, hitting $1.88. The stock had a trading volume of 11,769,006 shares, compared to its average volume of 571,075. The company has a 50 day simple moving average of $1.38 and a 200-day simple moving average of $1.37. Kaltura has a 12 month low of $1.05 and a 12 month high of $2.05. The firm has a market cap of $256.11 million, a PE ratio of -18.75 and a beta of 1.15.

Insider Transactions at Kaltura

In other Kaltura news, Director Eyal Manor sold 34,601 shares of the stock in a transaction on Thursday, June 25th. The shares were sold at an average price of $1.30, for a total value of $44,981.30. Following the completion of the sale, the director directly owned 439,366 shares of the company's stock, valued at $571,175.80. This represents a 7.30% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Eynav Azaria sold 19,456 shares of the firm's stock in a transaction on Monday, June 15th. The stock was sold at an average price of $1.48, for a total transaction of $28,794.88. Following the completion of the sale, the insider owned 2,195,818 shares in the company, valued at $3,249,810.64. This represents a 0.88% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 295,665 shares of company stock worth $429,872 over the last three months. 16.30% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Kaltura

A number of institutional investors have recently added to or reduced their stakes in KLTR. Vanguard Group Inc. boosted its stake in Kaltura by 1.6% in the 3rd quarter. Vanguard Group Inc. now owns 5,010,605 shares of the company's stock valued at $7,215,000 after buying an additional 79,633 shares in the last quarter. Geode Capital Management LLC grew its holdings in shares of Kaltura by 6.4% in the 4th quarter. Geode Capital Management LLC now owns 2,043,747 shares of the company's stock worth $3,352,000 after purchasing an additional 122,548 shares during the last quarter. Russell Investments Group Ltd. increased its position in shares of Kaltura by 5.2% during the 4th quarter. Russell Investments Group Ltd. now owns 1,704,197 shares of the company's stock worth $2,796,000 after purchasing an additional 83,792 shares in the last quarter. State Street Corp lifted its holdings in Kaltura by 9.2% during the 4th quarter. State Street Corp now owns 1,598,453 shares of the company's stock valued at $2,621,000 after purchasing an additional 135,092 shares during the last quarter. Finally, Tocqueville Asset Management L.P. boosted its position in Kaltura by 69.5% in the third quarter. Tocqueville Asset Management L.P. now owns 1,402,383 shares of the company's stock valued at $2,019,000 after buying an additional 575,000 shares in the last quarter. 30.79% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on KLTR. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Kaltura in a research report on Tuesday, June 16th. Needham & Company LLC reiterated a "buy" rating and issued a $3.00 price target on shares of Kaltura in a research report on Wednesday, May 13th. One analyst has rated the stock with a Buy rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Hold" and an average target price of $3.00.

Kaltura Company Profile

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.

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