Kaltura (KLTR) Q4 2025 Earnings Call Transcript

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Date

Monday, Mar. 16, 2026 at 4:30 p.m. ET

Call participants

• Co-Founder, Chairman, President, and Chief Executive Officer — Ron Yekutiel
• Executive Vice President of FP&A and Interim Principal Financial Officer — Liron Sharon

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Risks

• Liron Sharon highlighted, "Our [fiscal] Q1 guidance incorporates a short-term ENT revenue headwind due to a large customer that shifted priority and budget from conducting large virtual events to many smaller ones, which are planned to be conducted with us later in the year."
• Liron Sharon stated, The guidance also incorporates a first quarter, year-over-year M&T revenue decline in the mid to high teens due to the aggregate effect of last year's higher churn.
• Ron Yekutiel noted, "We are tapering our adjusted EBITDA profitability and cash flow from operation growth for this year in support of acquisition costs, integration efforts, and related growth investments, though both metrics are forecasted to remain in the teens, and in light of higher FX headwinds that are affecting our operating costs."

Takeaways

• Total revenue -- $45.5 million for the quarter, up 4% sequentially, nearly flat year over year, and above the guidance midpoint of $45.0 million-$45.7 million.
• Subscription revenue -- $42.7 million for the quarter, up 2% sequentially, down 2% year over year, exceeding the high end of guidance ($41.6 million-$42.3 million).
• Professional services revenue -- $2.9 million for the quarter, representing a 31% year-over-year increase.
• Segment revenue -- ENT revenue rose 4% year over year in the quarter; M&T revenue declined 12% due to prior elevated churn.
• GAAP gross profit -- $33.0 million for the quarter, up 7% sequentially and 2% year over year; gross margin was 72% versus 71% the previous year.
• Subscription gross margin -- 78%, up from 77% in the prior-year quarter.
• Total operating expenses -- $32.1 million for the quarter, an 11% year-over-year decrease from $36.1 million.
• Adjusted EBITDA -- $6.3 million for the quarter, above the guidance high end; more than double the prior-year quarter's result.
• GAAP net loss -- $0.6 million for the quarter ($0.00 per diluted share), a $6.0 million improvement year over year.
• Non-GAAP net profit -- $5.2 million for the quarter ($0.03 per diluted share), representing a $4.9 million year-over-year improvement.
• Remaining performance obligations (RPO) -- $166.3 million, up 4% sequentially, down 6% year over year, with 64% expected to be recognized as revenue within twelve months.
• Annualized recurring revenue -- $168.2 million, down 3% year over year at quarter end.
• Net dollar retention -- 97% for the quarter, unchanged sequentially, compared to 103% in the same period last year.
• Full-year 2025 revenue -- $180.9 million, up 1% year over year; subscription revenue $171.9 million, up 3%.
• Professional services (full-year) -- $8.9 million, down 19% year over year.
• Full-year segment revenue -- ENT up 4%, M&T down 7%, the latter due to previously disclosed churn.
• Net dollar retention (full-year) -- 100%, matching 2024, reflecting ENT improvement offset by M&T decline.
• GAAP gross profit (full-year) -- $127.7 million, up 7%; gross margin was 71%, an increase from 67% in 2024.
• Subscription gross margin (full-year) -- 77%, up from 75% in 2024.
• Adjusted EBITDA (full-year) -- $18.6 million, over 150% growth year over year versus $7.3 million in 2024.
• GAAP net loss (full-year) -- $12.1 million, or $0.08 per diluted share, a $19.2 million improvement from 2024.
• Non-GAAP net profit (full-year) -- $11.5 million, or $0.07 per diluted share, up $16.2 million from a loss the prior year.
• Cash and marketable securities -- $62.8 million at quarter end.
• Operating cash flow -- $3.6 million in the quarter, $14.5 million for the full year, both showing year-over-year growth.
• New subscription bookings -- Highest level of the year in the quarter, including two seven-digit and fifteen six-digit new deals across several industries.
• AI-related deals -- Seven new AI-focused agreements for Content Lab and Genie closed in the quarter.
• Retention metrics -- Gross retention in the quarter at the highest level for 2025 and record ENT growth retention for the past five years.
• Recognition by Frost & Sullivan -- Market leadership and advanced AI cited in the 2025 Global Enterprise Video Platform Radar research.
• PathFactory acquisition -- Entered definitive agreement, pending close, for $22.0 million in cash to acquire PathFactory, a provider of AI-driven content journey orchestration.
• PathFactory customer base -- Over 100 enterprise clients, including global brands such as NVIDIA, Cisco, and LG.
• Product releases -- Announced general availability of agentic avatars and Avatar SDK, and launched beta for Avatar video creation studio, with broad go-to-market enablement under way.
• Guidance (fiscal Q1 2026) -- Subscription revenue expected at $41.2 million-$42.0 million; total revenue at $42.6 million-$43.4 million; adjusted EBITDA at $2.3 million-$3.3 million; negative operating cash flow projected in line with fiscal Q1 2025 seasonality.
• Guidance (fiscal full-year 2026) -- Subscription revenue expected at $172.5 million-$175.5 million; total revenue at $181.2 million-$184.2 million; adjusted EBITDA forecasted at $12.7 million-$14.7 million; low double-digit operating cash flow targeted.
• Expected M&T dynamics -- Further revenue decline in M&T segment expected in 2026 due to 2025 churn, but bookings and retention projected to improve, supporting sequential growth in 2027.
• Profitability outlook -- Adjusted EBITDA margin and operating cash flow growth rates to remain in the teens for 2026, factoring in acquisition and integration expenses, and FX headwinds.

Summary

Kaltura (NASDAQ:KLTR) announced a definitive agreement to acquire PathFactory for $22.0 million in cash, expanding its AI-driven agentic digital experience platform capabilities and customer base. The company delivered record adjusted EBITDA of $6.3 million for the quarter and $18.6 million for the year, both exceeding original guidance and reflecting ongoing expense discipline. Despite M&T segment revenue declines, ENT revenue grew with improved retention and strong new bookings supported by increased adoption of AI-related offerings. Operational cash flow ended at $14.5 million for the year with $62.8 million in liquidity, enabling planned investments and acquisition financing without additional funding requirements. The PathFactory deal, along with accelerated product launches in AI and agentic experiences, is expected to drive sequential revenue growth in 2027 after a transition year in 2026 focused on integration and foundational platform expansion.

• Kaltura expects over 100 new enterprise customers from PathFactory, including large global brands, with minimal overlap with its existing base.
• The company reiterated its goal of achieving a Rule of 30 profile, combining double-digit revenue growth and adjusted EBITDA margin, by 2028 or sooner.
• Guidance for 2026 calls for gradual revenue acceleration in subscription and total revenues across the year, with meaningful growth contributions from new offerings and acquisitions projected to materialize by 2027.
• Ongoing CFO succession remains in process, with the finance organization continuing under interim leadership as the company executes its strategic initiatives.

Industry glossary

• ENT: Enterprise segment, representing Kaltura's business serving large enterprise customers.
• M&T: Media & Telecom segment, encompassing solutions provided to media and telecommunications customers.
• RPO: Remaining performance obligations; future revenue contracted but not yet recognized.
• Agentic AI: Artificial intelligence delivering autonomous, goal-oriented digital experiences, including journey orchestration and real-time personalized engagement.
• PLG: Product-led growth; a go-to-market approach emphasizing product functionality and self-serve adoption to drive customer acquisition and expansion.

Full Conference Call Transcript

Ron Yekutiel, Kaltura, Inc.’s Co-Founder, Chairman, President, and Chief Executive Officer, and Liron Sharon, Executive Vice President of FP&A and Interim Principal Financial Officer. Ron will provide a summary of the results for the fourth quarter ended December 31, 2025, along with a business and strategy update. Liron will then review financial results for the quarter and full year 2025 as well as the company's outlook for the first quarter and full year 2026. We will then open the call for questions.

Please note that this call will include forward-looking statements within the meaning of the federal securities laws, including, but not limited to, statements regarding Kaltura, Inc.’s expected future financial results, management's expectations, and plans for the business, including our pending acquisition of PathFactory and upcoming product launches, and our expectations around capabilities and benefits of our AI technologies. These statements are neither promises nor guarantees and involve risks and uncertainties that may cause actual results to differ materially from those discussed here.

Important factors that could cause actual results to differ from forward-looking statements can be found in the Risk Factors section of Kaltura, Inc.’s Annual Report on Form 10-K for the year ended 12/31/2024 and other SEC filings, including our Annual Report on Form 10-K for the fiscal year ended 12/31/2025 to be filed with the SEC. Any forward-looking statements made during this conference call, including responses to your questions, are based on current expectations as of today, and Kaltura, Inc. assumes no obligation to update or revise them, whether as a result of new developments or otherwise, except as required by law. Please note, we will be discussing non-GAAP financial measures, adjusted EBITDA and adjusted EBITDA margin, during this call.

For a reconciliation of adjusted EBITDA to the most directly comparable GAAP metric, please refer to our earnings release, which is available on our website at investors.kaltura.com. Now I would like to turn the call over to Ron.

Ron Yekutiel: Thank you, Erica, and thanks everyone for joining us on the call this afternoon.

Ron Yekutiel: Today, we reported total revenue of $45,500,000 for 2025, and subscription revenue of $42,700,000. We posted a record adjusted EBITDA of $6,300,000, representing our tenth consecutive quarter of adjusted EBITDA profitability. This brought full year 2025 adjusted EBITDA to $18,600,000, a 150% year-over-year increase and materially above our original guidance of 100% growth. We are pleased with the continued improvement in our operating efficiency while advancing our long-term strategic positioning. New subscription bookings in the fourth quarter were at the highest level of 2025. We closed two seven-digit and fifteen six-digit new deals across industries including technology, financial services, healthcare, manufacturing, education, and media and telecom.

We also closed seven AI-related deals for Content Lab and Genie, reflecting continued customer interest in our automation and personalization capability. Gross retention in the fourth quarter was also stronger than in any previous quarter in 2025, and we concluded the year as expected with the highest ENT growth retention level in five years. Our market leadership was once again recognized by tech analysts in the passing quarter, this time by Frost & Sullivan in their 2025 Global Enterprise Video Platform Radar research, where they also cited our advanced AI capabilities and early move into agentic AI. In other exciting news, earlier today, we announced that we entered into a definitive agreement to acquire PathFactory.

This acquisition remains subject to customary closing conditions. PathFactory is a provider of AI-driven content journey orchestration and conversation automation. The company helps enterprises understand user context and intent and automatically assemble and sequence personalized visual experiences designed to improve engagement and outcomes. PathFactory serves over 100 enterprise customers including global brands such as NVIDIA, Cisco, AVEVA, Palo Alto Networks, and LG. The company was recently recognized as a leader in the Q4 2025 Forrester Wave report on conversation automation solutions for B2B. The report acknowledged PathFactory’s unique approach of leveraging generative AI and content intelligence to help B2B go-to-market teams create personalized self-serve B2B buying journeys.

The other recognized leaders in this Wave were Qualified, that was recently acquired by Salesforce for over $1,000,000,000, and Sixth Sense, whose last funding round was at a reported valuation of over $5,000,000,000. PathFactory adds an important layer of agentic, journey-level intelligence to our platform. While Kaltura, Inc. has long powered rich media creation, management, and experience delivery at enterprise scale, and Esoft AI, which we acquired last quarter, enriched our real-time conversational capabilities and content creation with avatars, PathFactory will bring the ability to understand what each user is trying to accomplish and the most impactful personalized sequence of content delivery interaction accordingly.

To date, PathFactory’s primary applicability has been in improving B2B top-of-funnel marketing conversion by supporting account-based marketing motions (ABM) with insights, personalized customer microsites, and chat agents. We plan to continue supporting this valuable use case and to gradually expand its applicability to additional B2B and B2C customer experience use cases, including bottom-of-funnel marketing, sales enablement, customer and partner enablement, onboarding and support, as well as employee and learner experiences, such as internal communication, training, and education. Organizations are producing more content, engaging users across more channels, and, particularly in the age of agentic AI, are increasingly seeking systems of engagement that move beyond static, one-size-fits-all digital experiences to deliver personalized, contextual, interactive, and conversational experiences at scale.

Our expanded platform is well aligned with this shift. With a combination of Kaltura, Inc., Esoft AI, and PathFactory, we believe we will have in place the required pillars to complete our long-discussed multiyear evolution from a video platform to an agentic visual experience platform that specializes in harnessing AI-powered video and rich media to drive engagement and business outcomes. Within this expanded platform, Kaltura, Inc. provides the video-enriched media foundation—creation, management, governance, and delivery at enterprise scale—including AI-based rich media repurposing and personalized conversational delivery through Kaltura, Inc. Genie.

Esoft added avatar-based content creation and real-time multimodal photorealistic conversational interaction with Genie in over 30 languages including screen and camera comprehension, and PathFactory will boost Genie’s brains by adding to it agentic journey intelligence, understanding user context and intent and orchestrating a personalized engagement path. Our combined platform therefore evolves beyond serving as the backbone of video experiences to becoming a comprehensive enabler of rich, multimodal, agentic conversational digital experiences that are hyper-personalized, contextual, outcome-oriented, and deeply integrated into enterprise workflows.

Following the Esoft and contemplated PathFactory acquisitions—two very meaningful steps in our long plan evolution to become a full AI-infused agentic digital experience platform—we intend to formally update our mission statement from powering any video experiences for any organization to powering rich, agentic digital experiences across organizational journeys for customers, employees, learners, and audiences. PathFactory is a revenue-generating business with a current annual revenue run rate in the teens of millions, and a professional team across North America and India.

In addition to them meaningfully strengthening our strategic evolution into an agentic digital experience platform, we believe there is an immediate opportunity of cross-selling our respective offerings to our customer bases and great value in expanding our enterprise customer footprint and employee talent base in the marketing technology and customer experience domains. Under the terms of the acquisition agreement and subject to customary closing conditions, we expect to acquire PathFactory for approximately $22,000,000 in cash. We believe we have sufficient cash available to execute on our goals and we believe we will continue generating cash in 2026 and beyond. For further details, please refer to today's acquisition press release. Moving to the product front.

We announced last week the general availability of our agentic avatars. Since acquiring Esoft, we have migrated their code base to Kaltura, Inc.’s enterprise-grade infrastructure and further strengthened its robustness, scalability, and security. We have continued enhancing the core AI models and integrating the conversational avatars with Kaltura, Inc.’s Genie product, enabling both to operate across our experience products and embeddable video players. This allows interactive, contextual conversations to occur anywhere using text, video snippets, flashcards, avatars. Throughout 2026, we plan to continue enhancing avatar quality, enriching the generative content that can be presented during conversation, expanding integrations with third-party systems, and strengthening our agentic brain through deeper understanding of user context and intent powered by PathFactory technology.

We also announced last week the general availability of our Avatar SDK, which enables ISVs, system integrators, and in-house developing groups to leverage our text-to-video and audio-to-video models and connect them to their own RAG pipeline, agentic logic, databases, and enterprise systems. Over the course of the year, we plan to expand the SDK with additional APIs and developer tools. Today, we are pleased to announce the launch of a beta program for our Avatar video creation studio. This solution enables customers to easily create avatar-based and avatar-narrated videos on demand at scale.

These prerecorded avatars can also come to life in real time upon request, transforming into an interactive conversational avatar to respond to users' questions about the recorded video-related topics. Customers can apply for the beta program through our website. We plan to make this offering generally available in the upcoming second quarter. For all three of these new products, we are also developing self-serve versions targeting smaller organizations, departments within larger enterprises, content creators, and individual developers. We believe these versions will also support an expansion of our channel sales.

In parallel with the initial commercialization of these offerings, our sales team has been trained on the new go-to-market motion and are already in discussions with various prospective launch partners spanning across a wide array of industries and use cases, including agentic marketing, sales, customer care, field services, training, teaching, internal communications, and recruiting. Since the commercial activity associated with these new offerings did not impact 2025, which we are reporting today, we will share more concrete information about these activities in our next earnings call. As a reminder, we expect to begin recognizing revenue from these products in the second half of the year.

In 2026, we believe AI is reshaping the market in ways that structurally favor our platform. AI strengthens each layer of what we do. First, we are deeply embedded in mission-critical enterprise workflows and business processes across marketing, training, compliance, education, communications, and media delivery. These are governed, integrated, and operationally critical environments with high switching costs. AI enhances these workflows by making them more intelligent and automated. It does not replace them. Second, we manage large volumes of rich media assets, metadata, and behavioral engagement data for our customers that carry a high migration cost. With the addition of PathFactory, we expect to further expand our ability to generate insights and understand user context and intent.

In the age of AI, longitudinal data and intent intelligence become increasingly valuable assets that enable more precise personalization and orchestration, and that are harder to switch away from and replicate. Third, AI expands how we create and monetize value. Personalized content generation, dynamic journey orchestration, and conversational engagement lend themselves naturally to usage-based and outcome-oriented pricing models, not just seat-based pricing, and platforms that help drive meaningful engagement can benefit from organic growth and high net dollar retention. Fourth, AI is synergistic across all layers of our platform—content creation, content management and intelligence, and agentic experiences. Insights generated in one layer can power new content, new experiences, and new conversations in another. This creates a flywheel effect.

Existing data fuels richer experiences and real-time content generation. Those experiences generate new behavioral insights, and those insights further enhance personalization and automation. And finally, because we provide a unified digital experience platform that consolidates multiple use cases and buyers, rather than a single point solution, AI amplifies our platform advantage rather than fragmenting it. In short, we believe AI is a structural tailwind for our strategy and an amplifier of our competitive moat as a provider of rich, personalized, agentic digital experiences at scale. With that foundation in place, let me outline our anticipated growth drivers for the year ahead, fueling what, how, and to whom we sell. First, platform expansion.

The integration of rich media, conversational AI, and journey orchestration into a unified agentic digital experience platform is positioned to expand our addressable market and strengthens our competitive position. We believe we are differentiated by the breadth and depth of our content creation, management, and agentic experience offerings, by our API-driven flexibility, by our ability to consolidate multiple use cases on one platform, and by our proven track record of powering complex enterprise-scale deployments. Second, broader applicability. Our expanded platform addresses a significantly wider range of use cases across customers, employees, learners, and audiences. Many of these use cases are more mission-critical and can generate tangible ROI through cost and labor efficiencies and revenue uplift.

Samples include performing and supporting tasks and roles of marketers, sellers, customer support representatives, field agents, recruiters, educators, health professionals, and financial advisers. In certain cases, this also expands our reach into industries where we have historically been less active. Third, install base upsell. Our base of over 800 large enterprise customers represents a substantial cross-sell and upsell opportunity. Our new capabilities leverage the deep workflow integration, enterprise trust, and significant content repositories we already manage for these organizations, creating meaningful expansion potential.

Ron Yekutiel: Fourth, new customer acquisition. Agentic conversational experiences represent a fast-emerging category generating strong market interest. Unlike the more mature video segment where vendor consolidation limited new vendor adoption, this evolving category creates opportunities to engage new prospects. To support these opportunities, we are increasing our outbound go-to-market efforts. Fifth, channel and down-market expansion. Our new content creation and agentic offerings are well suited for self-serve PLG models targeting SMEs, SMBs, enterprise departments, developers, as well as expanded channel partnerships including co-sellers, resellers, OEMs, and marketplace partners. We plan to grow these motions throughout the year.

Ron Yekutiel: Sixth, PathFactory cross-sell. We believe there are meaningful opportunities to introduce broader Kaltura, Inc. capabilities into PathFactory's customer base of over 100 enterprises, while also enhancing the value delivered to our existing customers through journey orchestration and intent intelligence. Seventh, competitive landscape. We believe recent consolidation activity in the video market may create additional displacement opportunities positioning Kaltura, Inc. as a stable, innovation-driven alternative in both the traditional video and emerging agentic engagement categories. Lastly, eighth, while M&T revenue in 2026 is expected to still decline year over year because of last year's heightened churn, we believe that M&T net bookings will improve this year compared to last, fueled by both lower gross churn and higher new bookings.

We believe this will generate sequential quarterly M&T revenue growth in 2027. In summary, 2025 was a year of operational strengthening and strategic transformation. We materially improved our adjusted EBITDA results while working on two strategic acquisitions we believe significantly expand our long-term opportunity. We are entering 2026 with an evolved mission and are excited by the expanded product suite and broader market opportunity across use cases, industries, and customer segments that our two complementary strategic acquisitions will bring to the table. We plan to deepen engagement with existing customers, expand into new accounts, extend our reach down market, and leverage channel partnerships, all while strengthening our competitive positioning in our traditional video market including regrowing our M&T business.

We see 2026 as a transition year and we expect revenue contribution from our new portfolio to begin in the second half of the year with a stronger impact in 2027. We are tapering our adjusted EBITDA profitability and cash flow from operation growth for this year in support of acquisition costs, integration efforts, and related growth investments, though both metrics are forecasted to remain in the teens, and in light of higher FX headwinds that are affecting our operating costs. We continue to be committed to carefully balancing growth and profitability to maximize long-term shareholder value. To that end, we are reiterating our goal of achieving double-digit revenue growth in a Rule of 30 profile by 2028 or sooner.

Lastly, we continue to progress in our CFO search and succession process and will provide updates as appropriate. In the meantime, our finance organization continues to operate under the strong leadership of our Executive Vice President of Finance and Interim Principal Accounting Officer, Mrs. Claire Rochstein, and our Executive Vice President of FP&A and Interim Principal Financial Officer, Mrs. Liron Sharon. I would like to thank both for their leadership. With that, I will turn it over to Liron to review our financial results in greater detail and discuss our 2026 guidance. Liron?

Liron Sharon: Thanks, Ron, and hello to everyone on the call today. In the fourth quarter, we exceeded once again the midpoint of our guidance across subscription revenue, total revenue, and adjusted EBITDA, and delivered through disciplined execution a record level of both adjusted EBITDA and non-GAAP net profit. We also posted, as forecasted, a sequential quarterly growth in our new subscription bookings and the highest gross retention level of 2025.

Operator: Total revenue

Liron Sharon: for the quarter ended 12/31/2025 was $45,500,000, up 4% sequentially, almost flat year over year, and above the midpoint of our guidance range of $45,000,000 to $45,700,000. Subscription revenue was $42,700,000, up 2% sequentially, down 2% year over year, and above the high end of our guidance range of $41,600,000 to $42,300,000. Professional services revenue was $2,900,000 for the quarter, up 31% year over year and consistent with our previously forecasted increase. On a segment basis, ENT total revenue

Operator: increased

Liron Sharon: 4% year over year in the fourth quarter while M&T total revenue declined 12% year over year due to the elevated churn experienced earlier in the year as discussed on prior calls. GAAP gross profit for the fourth quarter was $33,000,000, up 7% sequentially and 2% year over year. Gross margin was 72% compared to 71% in Q4 2024. Subscription gross margin was 78%, up from 77% in Q4 2024. Total operating expenses for the quarter were $32,100,000 compared to $36,100,000 in 2024, representing an 11% year-over-year reduction. Adjusted EBITDA for the quarter was a record $6,300,000, above the high end of our guidance range of $4,200,000 to $5,200,000.

This represents a year-over-year increase of $3,600,000 compared to $2,700,000 in 2024, effectively more than doubling our adjusted EBITDA results year over year. GAAP net loss for the quarter was $600,000, or $0.00 per diluted share, representing a $6,000,000 year-over-year improvement. Non-GAAP net profit for the quarter was a record $5,200,000, or $0.03 per diluted share, representing an improvement of $4,900,000 year over year. Remaining performance obligation,

Operator: or

Liron Sharon: RPO, were $166,300,000, representing a 4% sequential increase and a 6% year-over-year decrease. We expect to recognize 64% of this amount as revenue over the next twelve months. Historical comparison RPO figures have been adjusted as discussed in our previous earnings call. Annualized recurring revenue in the fourth quarter was $168,200,000, down 3% year over year. Net dollar retention was 97%, unchanged sequentially and compared to 103% in the same quarter last year.

Operator: For the full year,

Liron Sharon: ended 12/31/2025, total revenue was $180,900,000, up 1% year over year. Subscription revenue was $171,900,000, up 3% year over year. Professional services revenue was $8,900,000, down 19% year over year, consistent with the expected trends we discussed on previous earnings calls. On a segment basis, ENT total revenue increased 4% year over year, while M&T total revenue declined 7% due to elevated churn as previously discussed. Net dollar retention for 2025 was 100%, consistent with the 2024 level. While flat overall, this reflects improved net retention in ENT offset by lower net retention in M&T.

Operator: GAAP gross

Liron Sharon: profit for 2025 was $127,700,000, up 7% year over year, representing a gross margin of 71%, up from 67% in 2024. Subscription gross margin improved to 77%, up from 75% in 2024.

Operator: Adjusted EBITDA

Liron Sharon: for 2025 was a record $18,600,000, representing more than 150% year-over-year growth compared to $7,300,000 in 2024. This performance, together with our improved expense discipline and margin profile, reflects our continued focus on operating efficiency. GAAP net loss for 2025 was $12,100,000, or $0.08 per diluted share, an improvement of $19,200,000 compared to a net loss of $31,300,000, or $0.21 per diluted share, in 2024. For the full year 2025, non-GAAP net profit was a record $11,500,000, or $0.07 per diluted share, reflecting a $16,200,000 improvement from a non-GAAP net loss of $4,700,000, or $0.03 per diluted share, in 2024. Moving to the balance sheet and cash flow. We ended the fourth quarter with $62,800,000 in cash and marketable securities.

Net cash provided by operating activities was $3,600,000 in the quarter, compared to $4,300,000 in Q4 2024. For the full year 2025, net cash provided by operating activities was $14,500,000 compared to $12,200,000 in 2024. I will now turn to our outlook for Q1 2026 and for the full fiscal year ending 12/31/2026. For Q1 2026, we expect subscription revenue between $41,200,000 and $42,000,000, total revenue between $42,600,000 and $43,400,000, and adjusted EBITDA between $2,300,000 and $3,300,000. We expect a similar seasonal level of negative cash flow from operations as in the first quarter of last year.

Our Q1 guidance incorporates a short-term ENT revenue headwind due to a large customer that shifted priority and budget from conducting large virtual events to many smaller ones, which are planned to be conducted with us later in the year. The guidance also incorporates a first quarter, year-over-year M&T revenue decline in the mid to high teens due to the aggregate effect of last year's higher churn. We expect an improvement in the following quarters. For the full year 2026 revenue, we expect subscription revenue between $172,500,000 and $175,500,000, total revenue between $181,200,000 and $184,200,000. We are expecting subscription and total revenue to pick up gradually throughout the year.

We expect ENT to post a higher year-over-year growth rate compared to 2025, fueled by contribution from the PathFactory customer base and from our new product portfolio, which we expect would affect 2026. That said, given the early stage of our new product commercialization, we have thoughtfully assumed that the more meaningful growth acceleration from them will occur in 2027. We expect to still post an M&T year-over-year revenue decline this year due to the elevated churn in 2025 but forecast to achieve both higher M&T new bookings and retention this year, which, as Ron mentioned, is expected to regenerate sequential quarterly M&T revenue growth in 2027.

As for our bottom-line figures this year, our 2026 adjusted EBITDA guidance and cash flow from operation forecast thoughtfully incorporate the expected impact of the PathFactory acquisition and related integration and investment and our continued commitment to carefully balance growth and profitability to maximize long-term shareholder value. It also incorporates increased FX headwinds affecting operating costs. Accordingly, we are providing the same annual adjusted EBITDA guidance range that we originally provided for 2025, which is between $12,700,000 to $14,700,000. We also forecast that we will generate low double-digit cash flow from operations this year, with most of it generated in the second half of the year, consistent with historical trends.

As Ron mentioned, we remain committed to achieving a Rule of 30 combination between double-digit revenue growth and adjusted EBITDA margin by 2028 or sooner. With that, we will open the call for questions. Operator?

Operator: Thank you. We will now be conducting a question-and-answer session. You may press 2 if you would like to remove your question from the queue. One moment please while we poll for questions. Our first question is coming from Matt Cavanagh from Needham & Company. Your line is now live.

Matt Cavanagh: Hi, thanks for the question.

Operator: And congratulations on today's results and announcements.

Matt Cavanagh: Starting out with the PathFactory acquisition,

Operator: could you expand a little bit about the sales synergy and cross-selling abilities you might expect to see now with both Esoft and PathFactory under the platform.

Ron Yekutiel: Along with the core Kaltura, Inc. products.

Matt Cavanagh: Yeah. 100%. Love to do that, and thank you everybody for joining. So let us talk about PathFactory and the reasons for the acquisition. So we have been communicating to the market all along the need to evolve from video into a full CX, DX digital experience platform where the market is bigger, the growth is faster, the multiples are higher. And we believe that the advent of AI is enabling that. The ability to create real-time videos and to turn that into conversational avatars, conversational videos enables us to close the flywheel effect, create content on the fly, manage it on the fly, engage people on the fly, and move from static experiences into dynamic engaging experiences.

So that was the impetus of the general move, and we have brought in Esoft to double down the ability to create these agents, immersive agents. As we have said, they have added the eyes and ears and mouth to our Genie and then, of course, the face. So why did we move on and do this additional move into PathFactory? PathFactory, from a product perspective, adds a few things. They add content intelligence, understanding the content itself, then they are enabling us to add multiple assets and not just video assets. We could go beyond video, talk about documents and files, and connect it to third-party CRMs, marketing automation platforms, DAMs, etc.

Very importantly, they have user analysis, user intent, user understanding. Our system has been basically a content management system for video, and now we have a user understanding. And that is key because we need to serve the right content to the right people at the right time in the right context. And so what they are able to do is to provide orchestration for user journey. Right now, they have been identified as one of the top providers in this space. I will say about it a few things.

They have been working mainly on top-of-the-funnel B2B marketing, but we are going to take it to the bottom of the funnel to address SDRs like Qualified is and other CX customer experiences like customer and partner onboarding, training, customer care, later take the same technology to deliver PATH for learning and internal use. And so right now, they are also able not just to provide the orchestration, but pipeline and revenue attribution, and they are also connected to their own applications that they have developed for chat-based interfaces and stuff of that nature.

So that enables us, before I talk about how and what we are going to sell, to appreciate that we are entering deeper into a market of conversation automation solutions in the B2B front, but later across the board. Forrester, in their Q4 2025 report, had identified them as leaders alongside Qualified that was just acquired for $1,500,000,000 by Salesforce, of course, and Sixth Sense whose last valuation from a long time ago had been at $5,000,000,000. So they are in a good neighborhood. And this strengthens our position in that market. That is a big market. I would assume twice the size or doubling the size of our current market.

And also based on our analysis, growing very fast unlike the traditional video market. It is an interesting market. And that adds up to another element before I kind of answer the specific question about sales. We have just gone deeper into the ability to add brains to our agents, not just quote-unquote good looks, so that they could deliver the right content at the right time while you are teaching, learning, marketing, selling, etc. We have done that at the same time, and we have just launched our VOD avatar that takes us deeper to content creation aligned with companies like Synthesia that are also reportedly valued at $4,000,000,000.

So I think that movement from just content management and video experiences towards content creation and towards real-time conversational technology with brains and agentic logic behind it turns us into the full digital experience platform that we have been waiting to turn. To the question of cross-sell and upsell, maybe that now becomes clear through my statement here. So first, they themselves have about 400 customers, of which 100 large enterprises like Cisco, NVIDIA, MetLife, LG, about 10 of them only are overlapping from the big

Operator: guys.

Matt Cavanagh: I mean, that there is a lot of folks that are not. We have had great calls with a bunch of them, and they have expressed a lot of excitement about this combination. They understand the synergy. There is, to their statements, even active RFPs running for avatars. They have been talking to us about the opportunity to displace other video vendors, because you would want to have a full end-to-end connection in the new agentic world between the medium that is engaging and the logic that is used towards that medium and the actual conversation technology. So it all comes very much together. So now we have been in, again, later we could talk more about guidance.

I have been careful assuming when and if and how we kind of start making a lot of money here from this synergy, but we do believe that, a, we could take this and sort it to our products, get a significant bump in value and revenue within a combined product. Also, b, that we could very well go back to their customers and upsell them and support them with the Kaltura, Inc. products. Let me know if you have any more specific questions about the cross-sell and upsell opportunities.

Matt Cavanagh: That is great, Ron. Thank you so much. Just, yeah, touching on what you mentioned at the end there. Could you, on your 2026 outlook, talk a little bit more about the puts and takes that went into the assumptions there?

Ron Yekutiel: Yeah. Happy to do that. From a top line, bottom line, both

Liron Sharon: Yes. That would be great.

Matt Cavanagh: Thank you. Okay.

Ron Yekutiel: So look. Generally speaking, we are looking at a year in which we expect gross retention to be better because we all knew media and telecom in the passing year was not good—by the way, ENT was fine. But if we improve M&T, the gross retention is going to get better. Booking, we believe, will pull up. Again, we are hoping for this to be as early as possible, but we are assuming it is going to be mostly in the second half of the year in line with both the PathFactory synergies as well as with our own product releases.

And while we have just started putting them out, we have some good pilots and excitement and interest, which we will share more about. We did say last time, and we are seeing yet again now, we expect that to start pulling up more in the second half of the year.

When you think about the revenue guidance that we have set, we are guiding at a similar kind of level that was expected, but we are hopefully coming at it very carefully given the amount of changes that are happening so early in the year, following one acquisition, creating another one, yet to see exactly when it will close—hopefully quickly—and so we want to make sure that we are able to achieve the numbers that we were discussing.

And I think at the end of the day, to your question about the pluses and minuses, I think that we are still seeing some of the headwinds come from M&T’s last year performance that are going to cause double-digit decline this year because of the delay between net bookings in M&T to how they impact revenue. We did say expect this year for net bookings to start pulling up, for that to affect sequential growth in 2027. But for 2026, it is a headwind on the revenue side. And then from core ENT, again, there is some growth, but most of it is pegged towards the new stuff, and that is going to come in the second half.

And lastly, PathFactory, as mentioned, their run rate is in the teens, and we do not know when they are going to come, in the middle of the year or in the second quarter or early or later in the second quarter. So we have got to be careful in our assumptions. We do assume in the second quarter, maybe earlier within that quarter, we will see. But given that, we have put a certain amount that we feel comfortable should be reasonable, and that is what brought it all together. So that is for the top line.

I will say from a bottom line, just to remind all of us, last time after the acquisition of Esoft, we reduced what we had planned. So even going before, we increased dramatically our adjusted EBITDA year—more than 150% growth, much more than we said, we said we were going to double, we delivered on it. Originally, we said we were going to continue to pull it up, but that was before we decided to go and do these two acquisitions and go for the bigger market, bigger opportunity.

Again, we could pick along and have a bit more profit and not put the engine in place to be able to become an exciting company again, or we could do the moves that we have just done now over the last couple of acquisitions to take us there. So we have tapered down the expectations. The last time we reduced it somewhere around 20, and we said, look, it is a function of a few things. It is both the Esoft acquisition cost and investments, it is the lower M&T results, it is the higher FX, because of the Israeli shekel.

And now we have come to do another readjustment, and again, we are looking at the PathFactory integration investment and additional FX cushion that continued to go the other way on the Israeli shekel. So between all of them, we have come to the exact same guidance we did last year. To remind you, we started with that guidance and ended up far higher. Maybe that will happen this year, maybe not. We would like to stick to our guidance and see where things go. There is still a question on the revenue. There is a question on the cost. There is integration of companies. We believe we have been thoughtful, and we want to be able to over-deliver.

But let us wait and see where we get to. And ultimately, to the extent that there will be any upside on the bottom line, it could be driven by the top side with a higher revenue because there are a lot of things that are pulling the revenue as I noted earlier. But also maybe better FX. Let us wait and see. So that is my two cents about both top and bottom line.

Matt Cavanagh: Very perfect. Thank you. And just lastly for me, could you share an updated view on how you are seeing the competitive landscape and how these recent acquisitions are further differentiating Kaltura, Inc. from your competitors? By design,

Ron Yekutiel: we are moving to a gradually moving and expanding—I would not say moving because we are both in the other market and the new market—into a larger and more exciting market. So let me be clear. In the world of pure video experiences, we had another research done in Q4 that had put us throughout the far right corner as the best product in its case. We also think that the recent consolidation that has taken place in our traditional market would enable us to be even better competitively positioned, let alone with the rest of what we just said now.

We talk to our own customers; there is a lot of synergy with the new products that we offer now that our existing video vendors—competitors—do not, around the agentic experiences but also around content creation. And therefore, we think that given both their consolidation as well as the improved amount of offerings that we have, we could do better within our classic core market in selling more of our current product and adding or not adding some of these new things. But I think the bigger point here is that we are now gradually moving to the point that we are not a video technology company.

Operator: Yes.

Ron Yekutiel: Differentiated by the richness of the media that we provide, and video is a core key piece of it. It will continue to be a core key piece of it. It becomes more a means than an end in the sense that what we offer is agentic digital experiences in real time that are able to deliver conversational agents that are performing tasks that otherwise just humans would do. And, again, I do not think they are going to replace them. I think they are going to augment them. I think they are going to boost them. I think they are going to support them. This is something completely different.

Now when we reach out to our own customers, there is a lot of excitement, much more than previously, because video had been relatively similar in recent years, and this is at the hype level of “oh my god, I want to use this.” This is exciting. And plus, this is a ticket for us to get to a lot more new logos. In recent years, it has been harder in our industry because people have kept to their own vendors even if there was a better solution. This opens the door for a completely different conversation and one that is synergistic and complementary.

So in short, I think that, a, we are going to be better positioned to compete with our existing quote-unquote competitors, but also, b, we are expanding to now be in the same neighborhood the bigger companies that are valued higher, that are in faster growing markets are in. I mentioned Qualified. You can look at, well, PathFactory is put on the same report as they are, right by them as a leader. You could also look, like I said, at Synthesia.

I am not suggesting that one to one we have the same product set, that we are going to do the same growth, that we have the same revenue, but when you look at the products we just released and the ones that are just now in beta, and appreciate our advantages in entering that market, then you would appreciate that we have not only the ability to create avatar-based videos, but they could come to life and become conversational. That is new. They are connected to our platform so that you could connect that to any other video experience and management, and that is the opposite direction that companies like Synthesia are working hard to do.

So that is powerful. We have our existing 800 enterprise customers to upsell this to, and so there are a lot of things that are helping us to come from a place that has been relatively flattish to something that we believe and we hope—and, again, we have been very thoughtful and careful, will continue to be—could potentially gradually increase our growth. And that is the strategy.

Matt Cavanagh: That sounds great. Well, thank you so much, Ron. That is it for me today.

Ron Yekutiel: Thank you so much, Matt.

Operator: Thank you. We have reached the end of our question and answer session. I would turn the floor back over for any further or closing comments.

Ron Yekutiel: So thank you all for joining today. First, a start for a fresh year. Thank you all for your continued support and trust and I wish upon all of us a great fiscal year, and a great year altogether filled with financial success but also some more peace hopefully around us, around the world. I am looking forward to following up with each of you that wants to reach out. Have a beautiful day. Take care. Bye-bye.

Operator: Thank you. That does conclude today's teleconference webcast. You may disconnect your lines at this time. Have a wonderful day. We thank you for your participation today. Good day everyone and welcome to the Kaltura, Inc. Fourth Quarter and Full Year 2025 Earnings Call. All material contained in the webcast is the sole property and copyright of Kaltura, Inc., with all rights reserved. For opening remarks and introductions, I am going to now turn the call over to Erica L. Mannion at Sapphire Investor Relations. Please go ahead, Erica.

Erica L. Mannion: Thank you, operator, and good afternoon. I am joined by Ron Yekutiel, Kaltura, Inc.’s Co-Founder, Chairman, President, and Chief Executive Officer, and Liron Sharon, Executive Vice President of FP&A and Interim Principal Financial Officer. Ron will provide a summary of the results for the fourth quarter ended 12/31/2025, along with a business and strategy update. Liron will then review financial results for the quarter and full year 2025 as well as the company's outlook for the first quarter and full year 2026. We will then open the call for questions.

Please note that this call will include forward-looking statements within the meaning of the federal securities laws, including, but not limited to, statements regarding Kaltura, Inc.’s expected future financial results, management's expectations, and plans for the business, including our pending acquisition of PathFactory and upcoming product launches, and our expectations around capabilities and benefits of our AI technologies. These statements are neither promises nor guarantees and involve risks and uncertainties that may cause actual results to differ materially from those discussed here.

Important factors that could cause actual results to differ from forward-looking statements can be found in the Risk Factors section of Kaltura, Inc.’s Annual Report on Form 10-K for the year ended 12/31/2024 and other SEC filings, including our Annual Report on Form 10-K for the fiscal year ended 12/31/2025 to be filed with the SEC. Any forward-looking statements made during this conference call, including responses to your questions, are based on current expectations as of today, and Kaltura, Inc. assumes no obligation to update or revise them, whether as a result of new developments or otherwise, except as required by law. Please note, we will be discussing non-GAAP financial measures, adjusted EBITDA and adjusted EBITDA margin, during this call.

For reconciliation of adjusted EBITDA to the most directly comparable GAAP metric, please refer to our earnings release, which is available on our website at investors.kaltura.com. Now I would like to turn the call over to Ron.

Ron Yekutiel: Thank you, Erica, and thanks everyone for joining us on the call this afternoon. Today, we reported total revenue of $45,500,000 for 2025, and subscription revenue of $42,700,000. We posted a record adjusted EBITDA of $6,300,000, representing our tenth consecutive quarter of adjusted EBITDA profitability. This brought full year 2025 adjusted EBITDA to $18,600,000, a 150% year-over-year increase and materially above our original guidance of 100% growth. We are pleased with the continued improvement in our operating efficiency while advancing our long-term strategic positioning. New subscription bookings in the fourth quarter were at the highest level of 2025. We closed two seven-digit and fifteen six-digit new deals across industries including technology, financial services, healthcare, manufacturing, education, and media and telecom.

We also closed seven AI-related deals for Content Lab and Genie, reflecting continued customer interest in our automation and personalization capabilities. Gross retention in the fourth quarter was also stronger than in any previous quarter in 2025, and we concluded the year as expected with the highest ENT growth retention level in five years. Our market leadership was once again recognized by tech analysts in the passing quarter, this time by Frost & Sullivan in their 2025 Global Enterprise Video Platform Radar research, where they also cited our advanced AI capabilities and early move into agentic AI. In other exciting news, earlier today, we announced that we entered into a definitive agreement to acquire PathFactory.

This acquisition remains subject to customary closing conditions. PathFactory is a provider of AI-driven content journey orchestration and conversation automation. The company helps enterprises understand user context and intent and automatically assemble and sequence personalized visual experiences designed to improve engagement and outcomes. PathFactory serves over 100 enterprise customers including global brands, such as NVIDIA, Cisco, AVEVA, Palo Alto Networks, and LG. The company was recently recognized as a leader in the Q4 2025 Forrester Wave report on conversation automation solutions for B2B. The report acknowledged PathFactory’s unique approach of leveraging generative AI and content intelligence to help B2B go-to-market teams create personalized self-serve B2B buying journeys.

The other recognized leaders in this Wave were Qualified, that was recently acquired by Salesforce for over $1,000,000,000, and Sixth Sense, whose last funding round was at a reported valuation of over $5,000,000,000. PathFactory adds an important layer of agentic journey-level intelligence to our platform. While Kaltura, Inc. has long powered rich media creation, management and experience delivery at enterprise scale, and Esoft AI, which we acquired last quarter, enriched our real-time conversational capabilities and content creation with avatars, PathFactory will bring the ability to understand what each user is trying to accomplish and orchestrate the most impactful personalized sequence of content delivery interaction accordingly.

To date, PathFactory’s primary applicability has been in improving B2B top-of-funnel marketing conversion by supporting account-based marketing motions (ABM) with insights, personalized customer microsites, and chat agents. We plan to continue supporting this valuable use case and to gradually expand its applicability to additional B2B and B2C customer experience use cases, including bottom-of-funnel marketing, sales enablement, customer and partner enablement, onboarding and support, as well as employee and learner experiences, such as internal communication, training, and education. Organizations are producing more content, engaging users across more channels, and, particularly in the age of agentic AI, are increasingly seeking systems of engagement that move beyond static, one-size-fits-all digital experiences to deliver personalized, contextual, interactive, and conversational experiences at scale.

Our expanded platform is well aligned with this shift. With a combination of Kaltura, Inc., Esoft AI, and PathFactory, we do believe we will have in place the required pillars to complete our long-discussed multiyear evolution from a video platform to an agentic visual experience platform that specializes in harnessing AI-powered video and rich media to drive engagement and business outcomes. Within this expanded platform, Kaltura, Inc. provides the video-enriched media foundation—creation, management, governance and delivery at enterprise scale, including AI-based rich media repurposing, and personalized conversational delivery through Kaltura, Inc. Genie.

Esoft added avatar-based content creation and real-time multimodal photorealistic conversational interaction with Genie in over 30 languages including screen and camera comprehension, and PathFactory will boost Genie’s brain by adding to it agentic journey intelligence, understanding user context and intent, and orchestrating a personalized engagement path. Our combined platform therefore evolves beyond serving as the backbone of video experiences to becoming a comprehensive enabler of rich, multimodal, agentic conversational digital experiences that are hyper-personalized, contextual, outcome-oriented, and deeply integrated into enterprise workflows.

Following the Esoft and contemplated PathFactory acquisitions, two very meaningful steps in our long plan evolution to become a full AI-infused agentic digital experience platform, we intend to formally update our mission statement from powering any video experiences for any organization to powering rich, agentic digital experiences across organizational journeys for customers, employees, learners, and audiences. PathFactory is a revenue-generating business with a current annual revenue run rate in the teens of millions, and a professional team across North America and India.

In addition to them meaningfully strengthening our strategic evolution into an agentic digital experience platform, we believe there is an immediate opportunity of cross selling our respective offerings to our customer bases and great value expanding our enterprise customer footprint and employee talent base in the marketing technology and customer experience domains. Under the terms of the acquisition agreement, subject to customary closing conditions, we expect to acquire PathFactory for approximately $22,000,000 in cash. We believe we have sufficient cash available to execute on our goals and we believe we will continue generating cash in 2026 and beyond. For further details, please refer to today's acquisition press release. Moving to the product front.

We announced last week the general availability of our agentic avatars. Since acquiring Esoft, we have migrated their code base to Kaltura, Inc.’s enterprise-grade infrastructure and further strengthened its robustness, scalability, and security. We have continued enhancing the core AI models and integrating the conversational avatars with Kaltura, Inc.’s Genie product, enabling both to operate across our experience products and embeddable video players. This allows interactive, contextual conversations to occur anywhere using text, video snippets, flashcards, avatars. Throughout 2026, we plan to continue enhancing avatar quality, enriching the generative content that can be presented during conversation, expanding integrations with third-party systems, and strengthening our agentic brain through deeper understanding of user context and intent powered by PathFactory technology.

We also announced last week the general availability of our Avatar SDK, which enables ISVs, system integrators, and in-house development groups to leverage our text-to-video and audio-to-video models and connect them to their own RAG pipeline, agentic logic, databases, and enterprise systems. Over the course of the year, we plan to expand the SDK with additional APIs and developer tools. Today, we are pleased to announce the launch of a beta program for our Avatar video creation studio. This solution enables customers to easily create avatar-based and avatar-narrated videos on demand at scale.

These prerecorded avatars can also come to life in real time upon request, transforming into an interactive conversational avatar to respond to users' questions about the recorded video-related topics. Customers can apply for the beta program through our website. We plan to make this offering generally available in the upcoming second quarter. For all three of these new products, we are also developing self-serve versions targeting smaller organizations, departments within larger enterprises, content creators, and individual developers. We believe these versions will also support an expansion of our channel sales.

In parallel with the initial commercialization of these offerings, our sales team has been trained on the new go-to-market motions and are already in discussions with various prospective launch partners spanning across a wide array of industries and use cases, including agentic marketing, sales, customer care, field services, training, teaching, internal communications, and recruiting. Since the commercial activity associated with these new offerings did not impact 2025, which we are reporting today, we will share more concrete information about these activities in our next earnings call. As a reminder, we expect to begin recognizing revenue from these products in the second half of the year.

In 2026, we believe AI is reshaping the market in ways that structurally favor our platform. AI strengthens each layer of what we do. First, we are deeply embedded in mission-critical enterprise workflows and business processes across marketing, training, compliance, education, communications, and media delivery. These are governed, integrated, and operationally critical environments with high switching costs. AI enhances these workflows by making them more intelligent and automated. It does not replace them. Second, we manage large volumes of rich media assets, metadata, and behavioral engagement data for our customers that carry a high migration cost. With the addition of PathFactory, we expect to further expand our ability to generate insights and understand user context and intent.

In the age of AI, longitudinal data and intent intelligence become increasingly valuable assets that enable more precise personalization and orchestration and that are harder to switch away from and replicate. Third, AI expands how we create and monetize value. Personalized content generation, dynamic journey

Ron Yekutiel: and conversational engagement lend themselves naturally to usage-based and outcome-oriented pricing models. Not just seat-based pricing and platforms that help drive meaningful engagement can benefit from organic growth and high net dollar retention. Fourth, AI is synergistic across all layers of our platform. Content creation, content management, and intelligence, and agentic experiences. Insights generated in one layer can power new content, new experiences, and new conversations in another. This creates a flywheel effect. Existing data fuels richer experiences and real-time content generation. Those experiences generate new behavioral insights and those insights further enhance personalization and automation.

And finally, because we provide a unified digital experience platform that consolidates multiple use cases and buyers, rather than a single point solution, AI amplifies our platform advantage rather than fragmenting it. In short, we believe AI is a structural tailwind for our strategy and an amplifier of our competitive moat as a provider of rich personalized, agentic digital experiences at scale. With that foundation in place, let me outline our anticipated growth drivers for the year ahead fueling what, how and to whom we sell. First, platform expansion. The integration of rich media, conversational AI, and journey orchestration into a unified agentic digital experience platform positioned to expand our addressable market and strengthens our competitive position.

We believe we are differentiated by the breadth and depth of our content creation management, and agentic experience offering by our API-driven flexibility, by our ability to consolidate multiple use cases on one platform, and by our proven track record of powering complex enterprise-scale deployments. Second, broader applicability. Our expanded platform addresses a significantly wider range of use cases across customers, employees, learners, and audiences. Many of these use cases are more mission critical and can generate tangible ROI through cost and labor efficiencies and revenue uplift. Samples include performing and supporting tasks and roles of marketeers, sellers, customer support representatives, field agents, recruiters, educators, health professionals, and financial advisers.

In certain cases, this also expands our reach into industries where we have historically been less active. Third, install base upsell. Our base of over 800 large enterprise customers represents a substantial cross-sell and upsell opportunity. Our new capabilities leverage the deep workflow integration enterprise trust, and significant content repositories we already manage for these organizations, creating meaningful expansion potential.

Operator: Fourth,

Ron Yekutiel: new customer acquisition. Agentic conversational experiences were presented a fast emerging category generating strong market interest. Unlike the more mature video segment where vendor consolidation limited new vendor adoption, this evolving category creates opportunities to engage new prospects. To support these opportunities, we are increasing our outbound go-to-market efforts. Fifth, channel and down market expansion. Our new content creation and agentic offerings are well suited for self-serve PLG models targeting SMEs, SMBs, enterprise departments, developers, as well as expanded channel partnerships including co-sellers, resellers, OEMs, and marketplace partners. We plan to grow these motions throughout the year.

Liron Sharon: Sixth,

Ron Yekutiel: PathFactory cross-sell. We believe there are meaningful opportunities to introduce broader Kaltura, Inc. capabilities into PathFactory’s customer base of over 100 enterprises, while also enhancing the value delivered to our existing customers through journey orchestration and intent intelligence. Seventh, competitive landscape. We believe recent consolidation activity in the video market may create additional displacement opportunities positioning Kaltura, Inc. as a stable, innovation-driven alternative in both the traditional video and emerging agentic engagement categories. Lastly, eight, while M&T revenue in 2026 is expected to still decline year over year because of last year's heightened churn, we believe that M&T net bookings will improve this year compared to last, fueled by both lower gross churn and higher new bookings.

We believe this will generate sequential quarterly M&T revenue growth in 2027. In summary, 2025 was a year of operational strengthening and strategic transformation. We materially improved our adjusted EBITDA results while working on two strategic acquisitions we believe significantly expand our long-term opportunity. We are entering 2026 with an evolved mission and are excited by the expanded product suite and broader market opportunity across use cases, industries and customer segments, that our two complementary strategic acquisitions will bring to the table. We plan to deepen engagement with existing customers, expand into new accounts, extend our reach down market, and leverage channel partnerships all while strengthening our competitive positioning in our traditional video market including regrowing our M&T business.

We see 2026 as a transition year we expect revenue contribution from our new portfolio to begin in the second half of the year with a stronger impact in 2027. We are tapering our adjusted EBITDA profitability in cash flow from operation growth for this year in support of acquisition costs and integration efforts and related growth investments though both metrics are forecasted to remain in the teens, and in light of higher FX headwinds that are affecting our operating cost. We continue to be committed to carefully balancing growth and profitability to maximize long term shareholder value.

To that end, we are reiterating our goal of achieving double digit revenue growth in a rule of 30 profile by 2028 or sooner. Lastly, we continue to progress in our CFO search and succession process and will provide updates as appropriate. In the meantime, finance organization continues to operate under the strong leadership of our Executive Vice President of Finance and Interim Principal Accounting Officer, Mrs. Claire Rochstein, and our Executive Vice President of FP&A, and Interim Principal Financial Officer, Mrs. Liron Sharon. I would like to thank both for their leadership. With that, I will turn it over to Liron to review our financial results in greater detail and discuss our 2026 guidance. Liron?

Liron Sharon: Thanks, Ron, and hello to everyone on the call today. In the fourth quarter, we exceeded once again the midpoint of our guidance across subscription revenue, total revenue, and adjusted EBITDA, and delivered through disciplined execution a record level of both adjusted EBITDA and non-GAAP net profit. We also posted, as forecasted, a sequential quarterly growth in our new subscription bookings and the highest gross retention level of 2025.

Ron Yekutiel: Total revenue

Liron Sharon: for the quarter ended 12/31/2025 was $45,500,000, up 4% sequentially, almost flat year over year, and above the midpoint of our guidance range of $45,000,000 to $45,700,000. Subscription revenue was $42,700,000, up 2% sequentially, down 2% year over year, and above the high end of our guidance range of $41,600,000 to $42,300,000. Professional services revenue was $2,900,000 for the quarter, up 31% year over year and consistent with our previously forecasted increase. On a segment basis, ENT total revenue

Operator: increased

Liron Sharon: 4% year over year in the fourth quarter while M&T total revenue declined 12% year over year due to the elevated churn experienced earlier in the year as discussed on prior calls. GAAP gross profit for the fourth quarter was $33,000,000, up 7% sequentially and 2% year over year. Gross margin was 72% compared to 71% in Q4 2024. Subscription gross margin was 78%, up from 77% in Q4 2024. Total operating expenses for the quarter

Ron Yekutiel: were

Liron Sharon: $32,100,000, compared to $36,100,000 in 2024, representing an 11% year-over-year reduction. Adjusted EBITDA for the quarter was a record $6,300,000, above the high end of our guidance range of $4,200,000 to $5,200,000. This represents a year-over-year increase of $3,600,000 compared to $2,700,000 in 2024, effectively more than doubling our adjusted EBITDA results year over year. GAAP net loss for the quarter was $600,000, or $0.00 per diluted share, representing a $6,000,000 year-over-year improvement. Non-GAAP net profit for the quarter was a record $5,200,000, or $0.03 per diluted share, representing an improvement of $4,900,000 year over year. Remaining performance obligation,

Operator: or

Liron Sharon: RPO, were $166,300,000, representing a 4% sequential increase and a 6% year-over-year decrease. We expect to recognize 64% of this amount as revenue over the next twelve months. Historical comparison RPO figures have been adjusted as discussed in our previous earnings call. Annualized recurring revenue in the fourth quarter was $168,200,000, down 3% year over year. Net dollar retention was 97%, unchanged sequentially and compared to 103% in the same quarter last year. For the full year ended 12/31/2025, total revenue was $180,900,000, up 1% year over year. Subscription revenue was $171,900,000, up 3% year over year. Professional services revenue was $8,900,000, down 19% year over year, consistent with the expected trends we discussed on the previous earnings calls.

On a segment basis, ENT total revenue increased 4% year over year, while M&T total revenue declined 7% due to elevated churn as previously discussed. Net dollar retention for 2025 was 100%, consistent with 2024 level. While flat overall this reflects improved net retention in ENT offset by lower net retention in M&T.

Ron Yekutiel: GAAP gross

Liron Sharon: for 2025 was $127,700,000. At 7% year over year representing a gross margin of 71% up from 67% in 2024. Subscription gross margin improved to 77% up from 75% in 2024. Adjusted EBITDA for 2025 was a record $18,600,000, representing more than 150% year-over-year growth compared to $7,300,000 in 2024. This performance together with our improved expenses discipline, and margin profile reflects our continued focus on operating efficiency. GAAP net loss for 2025 was $12,100,000 or $0.08 per diluted share, an improvement of $19,200,000 compared to a net loss of $31,300,000, or $0.21 per diluted share, in 2024.

For the full year, 2025, non-GAAP net profit was a record $11,500,000, or $0.07 per diluted share, reflecting a $16,200,000 improvement from a non-GAAP net loss of $4,700,000, or $0.03 per diluted share, in 2024. Moving to the balance sheet and cash flow. We ended the fourth quarter with $62,800,000 in cash and marketable securities, net cash provided by operating activities was $3,600,000 in the quarter, compared to $4,300,000 in Q4 2024. For the full year 2025, net cash provided by operating activities was $14,500,000 compared to $12,200,000 in 2024. I will now turn to our outlook for Q1 2026 and for the full fiscal year ending 12/31/2026.

For Q1 2026, we expect subscription revenue between $41,200,000 and $42,000,000, total revenue between $42,600,000 and $43,400,000, adjusted EBITDA between $2,300,000 and $3,300,000. We expect a similar seasonal level of negative cash flow from operation as in the first quarter of last year. Our Q1 guidance incorporates a short-term ENT revenue headwind due to a large customer that shifted priority and budget from conducting large virtual events to many smaller ones, which are planned to be conducted with us later in the year. The guidance also incorporates a first quarter year-over-year M&T revenue decline in the mid to high teens due to the aggregate effect of last year's higher churn. We expect an improvement in the following quarters.

For the full year 2026, revenue, we expect subscription revenue between $172,500,000 and $175,500,000, total revenue between $181,200,000 and $184,200,000. We are expecting subscription and total revenue to pick up gradually throughout the year. We expect ENT to post a higher year-over-year growth rate compared to 2025 fueled by contribution from the PathFactory customer base and from our new product portfolio, which we expect would affect 2026. That said, given the early stage of our new product commercialization, we have thoughtfully assumed that the more meaningful growth acceleration from them will occur in 2027.

We expect to still post an M&T year-over-year revenue declines this year due to the elevated churn in 2025 but forecast to achieve both higher M&T new bookings and retention this year, which, as Ron mentioned, is expected to regenerate sequential quarterly M&T revenue growth in 2027. As for our bottom line figures this year, our 2026 adjusted EBITDA guidance and cash flow from operation forecast thoughtfully incorporate the expected impact of the PathFactory acquisition and related integration and investment and our continued commitment to carefully balance growth and profitability to maximize long-term shareholder value. It also incorporates increased FX headwinds affecting operating costs.

Accordingly, we are providing the same annual adjusted EBITDA guidance range that we originally provided for 2025 which is between $12,700,000 to $14,700,000. We also forecast that we will generate low double-digit cash flow from operation this year with most of it generated in the second half of the year consistent with historical trends. As Ron mentioned, we remain committed to achieving a Rule of 30 combination between double-digit revenue growth and adjusted EBITDA margin by 2028 or sooner. With that, we will open the call for questions. Operator?

Operator: Thank you. We will now be conducting a question and answer session. You may press 2 if you would like to move your question from the queue. One moment please while we poll for questions. Our first question is coming from Matt Cavanagh from Needham & Company. Your line is now live.

Matt Cavanagh: Hi. Thanks for the question. And congratulation on today's results and announcements. You, buddy. Starting out with the PathFactory acquisition, could you expand a little bit about the sales synergy and cross selling abilities you might expect to see now with both Esoft and PathFactory under the platform. Platform? Along with the core Kaltura, Inc. products.

Ron Yekutiel: Yeah. 100%. Love to do that, and thank you everybody for joining. So let us talk about PathFactory and the reasons for the acquisition. So we have been communicating to the market all along. The need to evolve from video into a full CX EX, DX digital experience platform where the market is bigger, the growth is faster, the multiples are higher. And we believe that advent of AI is enabling that. The ability to create real time videos and to turn that into avatars, conversational videos enables to close the flywheel effect, create content on the fly, manage it on the fly, engage people on the fly, and move from static experiences into dynamic engaging experiences.

So that was the impetus of the general move, and we have brought in Esoft to double down the ability to create these agents, immersive agents. As we have said, they have added kind of the eyes and ears and mouth to our Genie and then, of course, the face. So why did we move on and do this additional move into PathFactory? PathFactory, from a product perspective, adds a few things. They add content intelligence, understanding the content itself, then they are enabling us to add multiple assets and not just video assets. So we could go beyond video, talk about documents and files, and connect it to third-party CRMs, marketing automation platforms, DAMs, etc.

Very importantly, they have user analysis, user intent, user understanding. We, our system, had been basically a content management system for video, now we have a user understanding. And that is key because we need to serve the right content to the right people in the right time in the right context. And so what they are able to do is to provide orchestration for user journey. Right now, they have been identified as one of the top providers in this space. I will say about it, you know, a few things. They have been working mainly on top of the funnel B2B marketing.

But we are going to take it to the bottom of the funnel to address SDRs like Qualified is and other CX customer experiences like customer and partner onboarding, training, customer care, later take the same technology to deliver PATH for learning and internal use. And so right now, they are also able not just to provide the orchestration, but pipeline and revenue attribution, and they are also connected to their own applications that they have developed for chat-based interface and stuff of that nature. So that enables us before I talk about how and what we are going to sell is to appreciate that we are entering deeper into a market of a conversation automation solutions.

In the B2B front, but later across the board. Forrester in their Q4 2025 report I had identified them as leaders. Alongside Qualified that was just acquired for $1,500,000,000. And by Salesforce, of course, and Sixth Sense whose last valuation from a long time ago had been at $5,000,000,000. So they are in good neighborhood. And this strengthens our position in that market. That is a big market. I would assume twice the size or doubling the size of our current market. And also based on our analysis, growing very fast unlike the traditional video market. It is an interesting market. And that adds up to another element before I kind answer the specific question about sales.

We have just gone deeper into the ability to add brains to our agents, not just quote, unquote good looks. So that they could deliver the right content at the right time while you are teaching, learning, marketing, selling, etc. We have done that at the same time that we have just launched our VOD avatar that takes us deeper to content creation aligned with companies like Synthesia that are also reportedly valued at $4,000,000,000. So I think that movement just content management and video experiences towards content creation and towards real time conversational technology with brains and agentic logic behind it turns out into the full digital experience platform that we have been waiting to turn.

To the question of cross sell and upsell, maybe that now becomes clear through my statement here. So first, they themselves have about 400 customers of which 100 large enterprises like Cisco, NVIDIA, MetLife, LG, about 10 of them only are overlapping from the big guys. I mean, that there is a lot of folks that are not. We have had great calls with a bunch of them, and they have expressed a lot of excitement about this combination. They understand the synergy. There is, to their statements, even active RFPs running for avatars.

They have been talking to us about the opportunity to displace other video vendors, because you would want to have a full end-to-end connection in the new agentic world between the medium that is engaging and the logic that is used towards that medium and the actual conversation technology. So it all comes very much together. So now we have been in, again, later we could talk more about guidance. I have been careful assuming when and if and how we kind of start making a lot of money here from this synergy.

But we do believe that, a, we could take this and sort it to our products, get a significant bump in value and revenue within a combined product. Also, b, that we could very well go back to their customers and sell them and support them with the Kaltura, Inc. product. Let me know if you have any more specific questions about the cross sell upsell opportunities.

Matt Cavanagh: That is great, Ron. Thank you so much. Just, yeah, touching on what you have mentioned at the end there. Could you on your 2026 outlook, could you talk a little bit more about kind of the puts and takes that went into the assumptions there?

Ron Yekutiel: Yeah. Happy to do that. Yeah. From a top line, bottom line, both.

Liron Sharon: Yes. That would be great.

Matt Cavanagh: Thank you. Okay. So look. For generally,

Ron Yekutiel: speaking, we are looking at a year in which we expect gross retention to be better because we all knew media and in the passing year was not good. By the way, ENT was fine. But if we improve M&T, the gross retention is going to get better. Booking, we believe, will pull up. Again, we are hoping for this to be as early as possible, but we are assuming it is going to be mostly at the second half of the year in line with both PathFactory synergies as well as with our own product releases.

And while we have just started putting them out, we have some good pilots and excitement and interest, which we will share more about. We did say last time we are seeing yet again now we expect that to start pulling up more in the second half of the year. When you think about the revenue guidance that we have set, so we are guiding at the similar kind of level that was expected, but we are hopefully and coming at it very carefully given the amount of changes that are happening so early in the year, following one acquisition, creating another one, yet to see exactly when it will close. Hopefully quickly.

And so we want to make sure that we are able to achieve the numbers that we were discussing. And I think at the end of the day, to your question about the pluses and minuses, I think that we are still seeing some of the headwinds come from M&T's last year performance that are going to cause double-digit decline this year because of the delay between net bookings and M&T to how they impact revenue. We did say we expect this year for net bookings to start pulling up, for that to affect sequential growth in 2027. But for 2026, it is a headwind on the revenue side.

And then from a core ENT, again, there is some growth, but most of it is pegged towards the new stuff, and that is going to come in the second half. And lastly, PathFactory has mentioned their run rate is in the teens, and we know when they are going to come in the middle of the year or in the second quarter or early or later in the second quarter. So we have got to be careful in our assumptions. We do assume it is in the second quarter, maybe earlier within that quarter, we will see.

But given that, we have put a certain amount that we feel comfortable that should be reasonable and that would what is brought it all together. So that is for the top line. I will say from a bottom line, just to remind all of us, last time after the acquisition of Esoft, we have reduced what we had planned. So even going before, we have increased dramatically our adjusted EBITDA year—more than 150% growth, much more than we said, we said we were going to double, we delivered on it.

Originally, we said we were going to continue to pull it up, but that was before we decided to go and do these two acquisitions and go for the bigger market, bigger opportunity. Again, we could stick along and have a bit more profit and not put the engine in place to be able to become an exciting company again. Or we could do the moves that we have just done now over the last couple of acquisitions to take us there. We have tapered down the expectations. The last time we reduced it to somewhere around 20, and we said, look. It is a function of a few things. It is both the Esoft acquisition cost and investments.

It is the lower M&T results. It is the higher FX, because of the Israeli shekel. And now we have come to do another readjustment. And once again, we are looking at the PathFactory integration investment and additional FX cushion that continued to go the other way on the Israeli shekel. So between all of them, we have come exact same guidance we did last year. To remind you. We started with that guidance and ended up far higher. Maybe that will happen this year, maybe not. We would like to stick to our guidance and see where things go. There is still a question on the revenue. There is a question on the cost. There is integration of companies.

We believe we have been thoughtful, and we do hope to be able to over deliver, but let us wait and see where we get to. And, ultimately, to the extent that there will be any upside on the bottom line, it could be driven by the top side with a higher revenue because there is a lot of things that are pulling the revenue as I noted earlier. But also maybe better FX. Let us wait and see. So that is my two cents about both top and bottom line.

Matt Cavanagh: Very perfect. Thank you. And just lastly from me, could you share an updated view on how you are seeing the competitive landscape and how these recent acquisitions are further differentiating Kaltura, Inc. from your competitors?

Liron Sharon: By design,

Ron Yekutiel: we are moving to a gradually moving and expanding—would not say moving because we are both in the other market and the new market—into a larger and more exciting market. So let me be clear. In the world of pure video experiences, we had another research done in Q4 that had put us throughout the far right corner as the best product in its case. We also think that the recent consolidation that has taken place in our traditional market would enable us to be even better competitively positioned, let alone with the rest of what we show said now.

When we talk to our own customers, there is a lot of synergy with the new products that we offer now that our existing video vendors—competitors—do not. Around the agentic experiences, but also around content creation. And therefore, we think that given both their consolidation as well as the improved amount of offerings that we have we could do better within our classic core market in selling more of our current product and adding or not adding some of these new things. But I think the bigger point here is that are now gradually moving to the point that we are not a video technology company.

Operator: Yes.

Ron Yekutiel: Differentiated by the richness of the media that we provide, and video is a core key piece of it. We will continue to be a core key piece of it. It becomes more a means than an end in the sense that what we offer is agentic digital experiences in real time that are able to deliver conversational

Matt Cavanagh: agents

Ron Yekutiel: that are performing tasks that otherwise just humans would do. And, again, I do not think they are going to replace them. I think they are going to augment them. I think they are going to boost them. I think they are going to support them. This is something completely different. Now when we reach out to our own customers, there is a lot of excitement, much more than previous. Because video had been relatively similar in recent years, and this is at the hype—you know—level of “oh my god. I want to use this.” So this is exciting. And plus, this is a ticket for us to get to a lot more new logos.

In recent years, it has been harder in our industry because people have kept to their own vendors even if there was a better solution. This opens the door for a complete different conversation and one that is synergistic and complementary.

Matt Cavanagh: So in short,

Ron Yekutiel: I think that, a, we are going to be better positioned to compete with our existing quote, unquote, competitors, but also, b, we are expanding to now be at the same neighborhood the bigger companies that are valued higher, that are in faster growing markets are in, and I mentioned Qualified. You can look at, well, PathFactory is, you know, put on the same report as they are right by them as a leader. And you could also look, like I said, at Synthesia.

I am not suggesting that one to one, we have the same product set, that we are going to do the same growth, that we have the same revenue, but when you look at the products we just released and the ones that are just now in beta, and appreciate our advantages in entering that market, then you would appreciate that we have not only the ability to create avatar-based videos, but they could come to life and become conversational. That is new. They are connected to our platform so that you could connect that to any other video experience and content management. That is the opposite direction that companies like Synthesia are working hard to do.

So that is powerful. We have our existing 800 enterprise customers to upsell this to. And so there are a lot of things that are helping us come from a place that has been relatively flattish to something that we believe and we hope—and, again, we have been very thoughtful and careful, will continue to be—could potentially gradually increase our growth, and that is the strategy. That sounds great. Well, thank you so much, Ron. That is it for me to Thank you so much, Matt.

Operator: Thank you. We have reached the end of our question and answer session. I would to turn the floor back over for any further or closing comments.

Ron Yekutiel: So thank you all for joining today. First start of for a fresh year thank you all for your continued support and trust and wish upon all of us a great, fiscal year. And a great year altogether filled with financial success, but also some more peace hopefully around us around the world. I am looking forward to following up with each of you that wants to reach out. Have a beautiful day. Take care. Bye.

Operator: Thank you. That does conclude today's teleconference webcast. You may disconnect your lines at time and have a wonderful day. We thank you for your participation today.

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