Kaltura (KLTR) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue was $43.9M, down 1% year-over-year but above guidance; subscription revenue was $42M.

• Achieved record Adjusted EBITDA of $4.2M, marking the ninth consecutive profitable quarter on this metric.

• Net loss for Q3 2025 was $2.6M ($0.02/share), a 27% improvement from Q3 2024; non-GAAP net profit was $2M.

• Announced definitive agreement to acquire ESOF.ai/eSelf.ai, a GenAI lab, for up to $27M, to accelerate immersive AI agent offerings.

• Repurchased 14.4M shares from Goldman Sachs at a 25% discount, reducing outstanding shares by 9.2%.

Financial highlights

• Subscription revenue for Q3 2025 was $41.98M; professional services revenue was $1.89M.

• GAAP gross profit was $30.7M (70% margin), up 4% year-over-year; gross margin improved from 67%.

• Adjusted EBITDA up 72% year-over-year to $4.2M; non-GAAP operating profit was $3.1M.

• Net cash from operating activities was $9.3M; ended Q3 with $41.5M in cash and cash equivalents.

• No outstanding balance on the $25M revolving credit facility; $30.6M outstanding under the term loan facility.

Outlook and guidance

• Q4 2025 total revenue guidance: $45M–$45.7M; subscription revenue: $41.6M–$42.3M; adjusted EBITDA: $4.2M–$5.2M.

• Full-year 2025 total revenue guidance: $180.3M–$181M; Adjusted EBITDA: $16.6M–$17.6M.

• Management expects continued gross margin improvement and stable operating expenses as a percentage of revenue.

• Forecasts sufficient liquidity for at least the next 12 months and positive operating cash flow.

• Targeting double-digit revenue growth and a rule of 30 (revenue growth + Adjusted EBITDA margin) by 2028 or sooner.