KALTURA INC Q4 FY2025 earnings call

Ron Yucatel mentioned total revenue for Q4 2025 was $45.5 million and subscription revenue $42.7 million, with a record adjusted EBITDA of $6.3 million, 10th consecutive quarter of adjusted EBITDA profitability. New subscription bookings in Q4 2025 were highest of 2025, closed two seven-digit and 15 six-digit new deals. Closed seven AI-related deals for Content Lab and Genie. Course retention in Q4 2025 was stronger, and concluded 2025 with highest ENT growth retention level in five years. Announced acquisition of Path Factory, which is a provider of AI-driven content journey orchestration and conversation automation, with current annual revenue run rate in the teens of millions. Discussed product front developments like general availability of agentic avatars, avatar SDK, and launch of beta program for Avatar Video Creation Studio. Outlined growth drivers for 2026 including platform expansion, broader applicability, installed-based upsell, new customer acquisitions, channel endowed market expansion, PathFactory cross-sells, competitive landscape, and M&T revenue improvement.

Fourth quarter 2025: Total revenue $45.5 million, subscription revenue $42.7 million, professional services revenue $2.9 million. EENT total revenue increased 4% year-over-year, M&T total revenue declined 12% year-over-year. Full year 2025: Total revenue $180.9 million, subscription revenue $171.9 million, professional services revenue $8.9 million. EENT total revenue increased 4% year-over-year, MNT total revenue declined 7% year-over-year. Adjusted EBITDA for Q4 2025 was a record $6.3 million, full year 2025 adjusted EBITDA was $18.6 million, up 150% year-over-year. Annual recurring revenue in Q4 2025 was $168.2 million, down 3% year-over-year. Net dollar retention in Q4 2025 was 97%, full year 2025 net dollar retention was 100%.

First quarter 2026: Subscription revenue between $41.2 million and $42 million, total revenue between $42.6 million and $43.4 million, adjusted EBITDA between $2.3 million and $3.3 million. Full year 2026: Subscription revenue between $172.5 million and $175.5 million, total revenue between $181.2 million and $184.2 million. Adjusted EBITDA guidance range for 2026 same as 2025, between $12.7 million to $14.7 million. Expect M&T revenue decline in 2026 due to 2025 elevated churn but forecast higher new bookings and retention, with sequential quarterly M&T revenue growth in 2027.

Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those discussed. Important factors that could cause actual results to differ from forward-looking statements can be found in the risk factors section of Kaltura's annual report on Form 10-K for the year ended December 31, 2024, and other SEC filings. FX headwinds affecting operating costs are a risk. Integration of acquisitions and impact on financial results is also a risk.

Q: Expand on sales synergy and cross-selling abilities with PathFactory acquisition.

A: Ron Yucatel discussed that PathFactory adds content intelligence, user analysis, user intent, enabling orchestration for user journeys. They have about 400 customers, 100 large enterprises, with overlapping customers being about 10. There's opportunity to upsell and support PathFactory's customers with Kaltura products.

Q: Talk about 2026 outlook assumptions.

A: Ron Yucatel mentioned gross retention expected to be better, booking pulling up mostly in second half of 2026. Revenue guidance set carefully considering headwinds from M&T's last year performance and integration of PathFactory. Bottom line guidance tapered due to acquisition costs, investments, lower M&T results, and FX.

Q: Updated view on competitive landscape and how acquisitions differentiate Kaltura.

A: Ron Yucatel said in pure video experiences Kaltura was at the far right corner as best product. Recent consolidation in traditional market and new agentic experiences, content creation offerings differentiate Kaltura. Moving from video technology company to agentic digital experience platform, opening door to new logos and better competition positioning.