Summary
Kaltura reported first quarter 2025 results on May 8, 2025. Revenue was $47.0 million, up 4.9% from the prior-year quarter. Gross profit was $32.7 million, up 14.4%. Gross margin was 69.7%, up 5.8 percentage points. The operating loss narrowed 78.4% to $1.6 million. The net loss narrowed 89.9% to $1.1 million. Diluted EPS was negative $0.01. Operating margin was negative 3.4%, up 12.9 percentage points. The company also reported non-GAAP gross profit of $33.0 million and non-GAAP gross margin of 70%. Non-GAAP operating income was $3.1 million, compared with a non-GAAP operating loss of $0.6 million. Non-GAAP net income was $3.5 million, or $0.02 per diluted share, compared with a non-GAAP net loss of $4.4 million. Adjusted EBITDA was $4.1 million, compared with $0.6 million.
The quarter showed better retention and backlog. Annualized recurring revenue was $174.8 million, up 7% from $162.7 million. Net dollar retention rate reached 107%, the best since the first quarter of 2022, and up from 98%. Remaining performance obligations were $184.9 million, up 11.9%. Deferred revenue was $53.9 million, roughly flat. Operating cash flow was negative $1.0 million, an improvement of 8.6%. Capital expenditures were $0.3 million, up 219.4%. The company expects to recognize 59% of its remaining performance obligations as revenue over the next 12 months, with the remainder over four years.
Operationally, Kaltura closed one new seven-digit deal and fifteen six-digit deals, similar to the first quarter of 2024, which it said reflects typical seasonality. More than 150 customers showed interest in Gen AI products, representing roughly 20% of its customer base. Kaltura also noted recognition by Gartner in its 2025 Market Guides for Video Platform Services and Meeting Solutions. Its TV Genie product won the Product of the Year award for Streaming at the 2025 NAB Show. The company held its first Investor Event in its New York City office and remotely using its Events Platform. It also scheduled Kaltura Connect on the road events in New York on May 13, San Francisco on May 15, and London on May 20, followed by six Connect in Education events across the US and Europe and virtually for APAC organizations.
Kaltura provided guidance for the second quarter and full year. For the second quarter of 2025, Kaltura expects subscription revenue between $40.8 million and $41.6 million. Total revenue is expected between $43.4 million and $44.2 million. Adjusted EBITDA is expected between $1.5 million and $2.5 million. For the full year ending December 31, 2025, the company expects subscription revenue between $170.4 million and $173.4 million. Total revenue is expected between $179.9 million and $182.9 million. Adjusted EBITDA is expected in the range of $13.5 million to $15.5 million. Management said it continues to forecast a return to growth of new bookings for the full year, driven by customer consolidation, newer products, Gen AI capabilities, growth within the existing customer base, and gradual growth in the sales force.
Risks remain familiar for the video software vendor. The company cited the volatile economic climate and its direct and indirect impact on the business. It also flagged political, economic, and military conditions in Israel and other geographies. Other risks include the ability to retain customers and meet demand, the ability to achieve and maintain profitability, competition, the evolution of its markets, and the ability to keep pace with technological changes. Kaltura also noted risks tied to artificial intelligence and machine learning models, application programming interfaces, cybersecurity threats, data privacy and protection laws, reliance on third parties, and international operations. On liquidity, the company had no balance outstanding under its Revolving Credit Facility, leaving the total revolving commitment available for future borrowings. The company said it believes its cash on hand, operating cash flow, and availability under the facility will be adequate for at least the next 12 months.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2025 | Q4 FY2024 | QoQ | Q1 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $47.0M | $45.6M | +3.0% | $44.8M | +4.9% |
| Gross profit | $32.7M | $32.3M | +1.4% | $28.6M | +14.4% |
| Gross margin | 69.7% | 70.8% | -1.1 pp | 63.9% | +5.8 pp |
| Research & development | $12.1M | $13.0M | -6.8% | $12.0M | +0.7% |
| Sales & marketing | $11.9M | $12.3M | -3.4% | $11.8M | +0.9% |
| General & administrative | $10.3M | $10.8M | -4.2% | $12.1M | -14.7% |
| Total operating expenses | $34.3M | $36.1M | -4.9% | $35.9M | -4.4% |
| Operating income (loss) | -$1.6M | -$3.8M | +58.4% | -$7.3M | +78.4% |
| Operating margin | -3.4% | -8.3% | +5.0 pp | -16.3% | +12.9 pp |
| Net income (loss) | -$1.1M | -$6.6M | +83.1% | -$11.1M | +89.9% |
| Net margin | -2.4% | -14.5% | +12.1 pp | -24.8% | +22.4 pp |
| Customers | 150 | 850 | -82.4% | — | — |
| Net retention rate | 107.0% | 100.0% | +7.0 pp | 98.0% | +9.0 pp |
Risks
Global economic volatility, including uncertainty around U.S. and foreign tariffs and other trade barriers, rising inflation and interest rates, price increases, and supply chain issues, may disrupt financial markets and reduce the company's ability to access capital. The company also holds cash and cash equivalents at financial institutions in amounts that exceed federally insured limits.
Political, economic, and military conditions in Israel, including the current security situation or any escalation of conflicts, may impact the company's ability to access capital and operate. The prior-year quarter included war-related costs for temporary relocation of key employees and emergency equipment.
The Credit Agreement contains restrictive covenants and financial covenants requiring minimum Consolidated Adjusted EBITDA and Liquidity of at least $20.0 million as of the last day of any calendar month. As of March 31, 2025, the company had approximately $31.7 million outstanding under the Term Loan Facility and was in compliance, but a breach could allow lenders to accelerate borrowings.
Operating cash flow was negative $1.05 million for FY2025 Q1, though it improved 8.6% versus the prior-year quarter. Deferred revenue was flat at $53.88 million versus the prior-year quarter, and the company may need additional debt or equity financing that may not be available on favorable terms.
Professional services gross loss in the EE&T segment increased by $0.7 million, or 110%, to $1.3 million for the three months ended March 31, 2025, from $0.6 million in the prior-year period, even as total gross margin improved to 69.7% from 63.9%.
SaaS KPIs
All quarters →Net Dollar Retention Rate
Annualized Recurring Revenue (ARR)
Adjusted EBITDA
Non-GAAP Operating Margin
Remaining Performance Obligations (RPO)
Summary, forecast, risks and KPIs are extracted from KALTURA INC's SEC filings for Q1 FY2025 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 1, 2026.