Summary
Kaltura's FY2025 Q4 revenue was $45.54 million, flat versus the prior-year quarter. Full-year revenue reached $180.85 million, up 1.2%. Gross profit was $32.99 million in the quarter, up 2.2%, and $127.67 million for the full year, up 7.2%. Gross margin improved to 72.4% in Q4, up 1.7 percentage points, and to 70.6% for the full year, up 3.9 percentage points. The company reported operating income of $0.87 million in Q4, swinging to a profit from a loss in the prior-year quarter. For the full year, operating loss was $4.96 million, narrowing from the prior-year period. Operating margin was 1.9% in Q4, up 10.2 percentage points, and -2.7% for the full year, up 10.7 percentage points. Net loss was $0.58 million in Q4, narrowing from the prior-year quarter, and $12.07 million for the full year, also narrowing. Diluted EPS for the full year was -$0.08, a narrowed loss.
Cash generation was mixed. Operating cash flow was $3.65 million in Q4, down 15.4% from the prior-year quarter, but $14.54 million for the full year, up 18.9%. Capital expenditures were $0.13 million in Q4, up 27.0%, and $0.66 million for the full year, up 26.9%. Deferred revenue stood at $60.29 million, down 4.5% from the prior-year quarter. Remaining performance obligations were $166.35 million, down 18.2% from the prior-year quarter. Management expects to recognize 64% of RPO as revenue over the next 12 months and the remainder over the next four years. Annualized recurring revenue was $168.2 million, and it declined 3% in FY2025 compared with FY2024. Net Dollar Retention Rate was 100% for both FY2025 and FY2024. Adjusted EBITDA was $18.6 million for FY2025, up from $7.3 million for FY2024.
Kaltura continues to position itself around video and rich media with agentic AI capabilities. The company acquired eSelf AI in 2025 to add AI-generated video and avatar-based interactions. It also entered a definitive agreement to acquire PathFactory, a provider of content journey orchestration and engagement analytics solutions. That transaction has not closed. The 2025 Reorganization Plan, completed in the third quarter of 2025, downsized about 10% of the workforce. Management expects the plan to reduce annualized costs by approximately $8.5 million. Looking ahead, management expects gross margins to continue their growth trend in coming years. It also expects research and development and general and administrative expenses to gradually decrease as a percentage of revenue, while sales and marketing expenses increase as a percentage of revenue.
Risks remain substantial. The company cites uncertainty around U.S. and foreign tariffs and other trade barriers, rising inflation, interest rates, supply chain issues, and political, economic, and military conditions in Israel. Its credit agreement includes financial covenants requiring a minimum amount of Consolidated Adjusted EBITDA and liquidity of at least $20 million. Kaltura was in compliance with these covenants as of December 31, 2025. The revolving credit facility has $25.0 million available with no balance outstanding, while the term loan facility had approximately $29.0 million outstanding. The interest rate under the credit facilities was 6.27% as of December 31, 2025. In November 2025, Kaltura repurchased 14,443,739 shares for $16,610,300 at $1.15 per share. During the full year, it repurchased 19,087,579 shares at a weighted average price of $1.37 per share. The board terminated the 2025 Repurchase Program.
Forecast
No forward guidance in this quarter's filings.
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2025 | Q3 FY2025 | QoQ | Q4 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $45.5M | $43.9M | +3.8% | $45.6M | -0.1% |
| Gross profit | $33.0M | $30.7M | +7.4% | $32.3M | +2.2% |
| Gross margin | 72.4% | 70.0% | +2.4 pp | 70.8% | +1.7 pp |
| Research & development | $10.9M | $11.5M | -5.5% | $13.0M | -16.3% |
| Sales & marketing | $10.4M | $11.0M | -5.8% | $12.3M | -15.7% |
| General & administrative | $10.7M | $8.9M | +20.8% | $10.8M | -0.1% |
| Total operating expenses | $32.1M | $32.2M | -0.4% | $36.1M | -11.0% |
| Operating income (loss) | $874.0K | -$1.5M | +158.1% | -$3.8M | +123.0% |
| Operating margin | 1.9% | -3.4% | +5.3 pp | -8.3% | +10.2 pp |
| Net income (loss) | -$575.0K | -$2.6M | +78.1% | -$6.6M | +91.3% |
| Net margin | -1.3% | -6.0% | +4.7 pp | -14.5% | +13.2 pp |
| Diluted EPS | $0.00 | $0.02 | -$0.02 | — | — |
| Customers | 800 | — | — | 850 | -5.9% |
| Net retention rate | 100.0% | 97.0% | +3.0 pp | 100.0% | ±0.0 pp |
Risks
The filing states the current volatile economic climate has caused longer sale cycles and increased price-driven competition, including bid processes, and has adversely affected retention, renewals, and up-sales. The company expects these trends to continue in the near-term, and MD&A cites uncertainties in the current macro-economic climate as a driver of the 2025 Reorganization Plan.
Total revenue for the years ended December 31, 2025 and 2024 was $180.9 million and $178.7 million, respectively, representing an annual growth rate of 1%. MD&A reports Annualized Recurring Revenue declined by 3% in the year ended December 31, 2025 compared to the year ended December 31, 2024, Net Dollar Retention Rate was 100% for 2025 and 2024, and RPO was $166.35 million in FY2025 Q4, down 18.2% versus the prior-year quarter.
Top ten customers accounted for approximately 31.5%, 30.0%, and 28.9% of revenue for the years ended December 31, 2025, 2024, and 2023, respectively. Vodafone accounted for approximately 10.1%, 10.7%, and 10.2% of revenue in those years, and the loss of one or more significant customers could significantly and adversely affect results.
The company has incurred losses in each year since incorporation in 2006, including net losses of $12.1 million, $31.3 million, and $46.4 million in the years ended December 31, 2025, 2024, and 2023, respectively, and had an accumulated deficit of $480.9 million as of December 31, 2025. Although net loss narrowed 61.4% year to date and operating loss narrowed 79.4% year to date, it may not achieve or maintain profitability.
The company is investing in Gen AI and agentic AI capabilities, acquired eSelf AI in 2025, and entered a definitive agreement in March 2026 to acquire PathFactory. Risk factors state investments in AI-based initiatives, including recent acquisitions, may not generate expected revenues if customers delay or underutilize these offerings, and that AI output may be inaccurate or expose the company to IP infringement or trade secret misappropriation claims.
Evolving AI regulations include the EU AI Act, with most substantive requirements expected to apply from August 2, 2026 and fines for breaches up to 7% of worldwide annual turnover, plus U.S. state laws such as California automated decision-making regulations, Colorado's Artificial Intelligence Act, and Utah's Artificial Intelligence Policy Act. Compliance may require significant resources and changes to products and operations.
In August 2025 the Board approved the 2025 Reorganization Plan, downsizing approximately 10% of the workforce and completed in Q3 2025, with expected annualized cost reduction of approximately $8.5 million. Risk factors state the company may not fully realize cost savings and that downsizing R&D personnel could delay development plans if future needs were misjudged.
Markets are nascent and highly fragmented, with larger competitors that may compete more aggressively on pricing or bundle products. A version of the Rich Media Content Management System and its underlying APIs, Kaltura Community Edition, is licensed under AGPL, allowing commercial licensees to use it internally for free or provide it to others for free, which could reduce demand and put pricing pressure on offerings.
The company relies primarily on a direct sales model, resulting in higher customer acquisition costs than self-service models, and is expanding reseller, marketplace, self-service, and product-led growth motions. Risk factors state it may not develop and retain talented sales personnel or achieve desired productivity, and resellers may prioritize competing offerings.
Media & Telecom revenue decreased 7% to $46.4 million for the year ended December 31, 2025 from $50.0 million for 2024, mainly due to a $3.6 million decrease from existing customers. M&T gross margins are lower than EE&T because TV implementations require more resources, have longer booking-to-go-live periods, and carry a higher proportion of professional services and private cloud or on-premise deployments.
As of December 31, 2025, the company had approximately $29.0 million outstanding under the Term Loan Facility, no balance under the $25.0 million Revolving Credit Facility, and was in compliance with covenants, including a minimum Consolidated Adjusted EBITDA covenant and minimum Liquidity of at least $20 million. The Term Loan Facility remaining unpaid balance is due December 21, 2026, and global economic volatility may reduce access to capital.
Financial expense (income), net changed by $4.5 million to $4.0 million expense for the year ended December 31, 2025 from $0.4 million income for 2024, mainly due to $4.5 million of exchange rate differences from revaluation of NIS-denominated liabilities as the USD weakened against the NIS. The company also cites political, economic, and military conditions in Israel, including the current security situation or escalation of conflicts.
The company previously identified and disclosed a material weakness in internal control over financial reporting in its 2021 Form 10-K, which has since been remediated, but may discover additional significant deficiencies or material weaknesses. It expects to cease being an emerging growth company as of December 31, 2026, at which point auditor attestation under Section 404(b) will be required.
Historically, bookings and collections in the education market are higher in the second and third quarters due to school procurement periods, with lower sequential sales and customer growth in other quarters, and increased usage during school sessions leads to higher cost of revenue in the first and fourth quarters. Certain agreements do not limit usage or increase pricing for excess usage, so additional costs may not result in corresponding revenue.
SaaS KPIs
All quarters →Net Dollar Retention Rate
Remaining Performance Obligations
Annualized Recurring Revenue
Summary, forecast, risks and KPIs are extracted from KALTURA INC's SEC filings for Q4 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.