Kaltura (NasdaqGS:KLTR) Q4 2025 Earnings call March 16, 2026 04:30 PM ET Company ParticipantsErica Mannion - Partner and FounderLiron Sharon - EVP of FP&A and Interim Principal Financial OfficerMatt Cavanagh - Equity Research AssociateRon Yekutiel - Co-founder, Chairman, President and CEOOperatorGood day, everyone, and welcome to the Kaltura fourth quarter and full year 2025 earnings call. All material contained in the webcast is the sole property and copyright of Kaltura with all rights reserved. For openi ...

Financial Data and Key Metrics Changes - Total revenue for Q4 2025 was $45.5 million, up 4% sequentially and almost flat year-over-year, exceeding guidance [26][29] - Subscription revenue was $42.7 million, up 2% sequentially but down 2% year-over-year, also above guidance [26][29] - Adjusted EBITDA reached a record $6.3 million for Q4 2025, representing a year-over-year increase of $3.6 million [29][31] - Full year 2025 adjusted EBITDA was $18.6 million, a 150% year-over-year increase [5][31] - GAAP net loss for Q4 2025 was $0.6 million, an improvement of $6 million year-over-year [29][32] Business Line Data and Key Metrics Changes - Professional services revenue for Q4 2025 was $2.9 million, up 31% year-over-year [27] - EE&T total revenue increased 4% year-over-year in Q4, while M&T total revenue declined 12% year-over-year due to elevated churn [27][30] - Annualized recurring revenue in Q4 was $168.2 million, down 3% year-over-year [30] Market Data and Key Metrics Changes - Gross retention in Q4 was the strongest of 2025, with the highest E&T gross retention level in five years [5] - Net Dollar Retention for 2025 was 100%, consistent with 2024 levels, reflecting improved retention in EE&T [31] Company Strategy and Development Direction - The company is evolving from a video platform to an agentic digital experience platform, integrating AI-driven capabilities [10][19] - The acquisition of PathFactory aims to enhance user journey orchestration and content intelligence, expanding market reach [12][19] - The strategy focuses on cross-selling opportunities between Kaltura and PathFactory's customer bases [12][46] Management's Comments on Operating Environment and Future Outlook - Management expects 2026 to be a transition year with revenue contribution from new products beginning in the second half of the year [24][35] - The company anticipates improved gross retention and new bookings in M&T, leading to sequential revenue growth in 2027 [23][35] - Management remains committed to balancing growth and profitability while navigating integration costs and FX headwinds [24][37] Other Important Information - The company ended Q4 2025 with $62.8 million in cash and marketable securities [32] - The acquisition of PathFactory is expected to be completed for approximately $22 million in cash [12] Q&A Session Summary Question: Could you expand on the sales synergy and cross-selling abilities expected from the PathFactory acquisition? - Management highlighted the need to evolve into a full digital experience platform, emphasizing the synergy between Kaltura, eSelf.ai, and PathFactory [41][42] Question: Can you discuss the assumptions behind the 2026 outlook? - Management noted that while M&T is expected to face headwinds due to last year's performance, they anticipate improvements in gross retention and bookings [49][52] Question: How do recent acquisitions differentiate Kaltura from competitors? - Management stated that the acquisitions position Kaltura to compete more effectively in both traditional video markets and emerging agentic engagement categories [57][60]