Core Insights - Kaltura, Inc. reported strong financial results for Q3 2025, exceeding guidance with record adjusted EBITDA and strong operating cash flow [2][3] - The company signed a definitive agreement to acquire eSelf.ai, enhancing its capabilities in AI-powered virtual agents [3][10] - Kaltura repurchased 14.4 million shares of common stock from Goldman Sachs for approximately $16.6 million, reflecting confidence in its growth trajectory [3][10] Financial Performance - Q3 2025 revenue was $43.9 million, a slight decrease of 1% from $44.3 million in Q3 2024 [4] - Subscription revenue remained stable at $42.0 million, nearly flat compared to $42.1 million in the same quarter last year [4] - Annualized Recurring Revenue (ARR) increased to $169.1 million, up from $168.9 million year-over-year [4] - GAAP gross profit was $30.7 million, with a gross margin of 70%, compared to $29.5 million and 67% in Q3 2024 [4] - Non-GAAP operating profit improved to $3.1 million from $1.3 million in Q3 2024 [4] - Adjusted EBITDA rose to $4.2 million, up from $2.4 million in the prior year [4] Business Highlights - Kaltura closed 12 six-figure deals across various industries, including technology and healthcare [10] - The company improved its gross retention rate and maintained strong engagement metrics [10] - An exclusive partnership with Telestream was established to migrate customers from the Sherpa Stream platform [10] - Kaltura launched its Media Publishing AI Agent at the IBC show in Amsterdam [10] Future Outlook - For Q4 2025, Kaltura expects subscription revenue between $41.6 million and $42.3 million, and total revenue between $45.0 million and $45.7 million [10] - The full-year guidance anticipates total revenue between $180.3 million and $181.0 million, with adjusted EBITDA projected between $16.6 million and $17.6 million [10]