{"success":true,"data":{"pressRelease":{"id":"109237","rtpr_id":"nGNX81S3By","ticker":"KLTR","exchange":"NASDAQ","all_tickers":["KLTR"],"title":"Kaltura Announces Financial Results for Second Quarter 2026","author":"Globe Newswire","published_at":"2026-08-05T11:00:07.139Z","article_body":"NEW YORK, Aug. 05, 2026 (GLOBE NEWSWIRE) -- Kaltura, Inc. (Nasdaq: KLTR,\n“Kaltura” or the “Company”), the Agentic Digital Experience Company,\ntoday announced financial results for the second quarter ended June 30, 2026,\nas well as outlook for the third quarter and full year 2026.\n\nThe Company’s investor presentation for the quarter, which showcases its\nagentic avatar technology, is available at: https://q2-26-avatar.kaltura.com/\n\nTotal revenue for the second quarter was $46.9 million, with subscription\nrevenue of $45.6 million. Net loss for the quarter was $5.5 million, and\nAdjusted EBITDA for the quarter was $5.9 million.\n\n“We delivered a strong second quarter, exceeding the high end of our\nguidance for both revenue and adjusted EBITDA, while achieving record non-GAAP\ngross margin and our highest second-quarter adjusted EBITDA to date,” said\nRon Yekutiel, Co-Founder, Chairman, President, and Chief Executive Officer of\nKaltura. “More importantly, we are beginning to see measurable commercial\ntraction from our evolution to powering rich, agentic digital experiences.\nDuring the quarter, we signed a record fourteen new deals that included our AI\nofferings, doubling our previous record, across a broad range of industries\nand employee, learner, customer, and audience-facing use cases. Our growing\npipeline, expanding proofs of concept, and progress integrating eSelf.ai and\nPathFactory increase our confidence in stronger bookings momentum in the\nsecond half of the year and a more meaningful revenue contribution from our\nnew products in 2027,” concluded Yekutiel.\n\nSecond Quarter 2026 Business Highlights:\n* Exceeded the high end of guidance for both revenue and adjusted EBITDA,\ndelivering the company’s highest second-quarter adjusted EBITDA to date and\na record non-GAAP gross margin of 75%.\n* Grew new subscription bookings sequentially, including thirteen six-digit\ntotal contract value deals. Five of these deals were with new logos across the\nfinancial services, healthcare and education industries.\n* Signed a record fourteen new deals that included one or more of our AI\nofferings which represents a doubling of deals signed compared to our previous\nrecord. Nine of the fourteen deals included Kaltura’s Agentic Avatars, and\neight were with new logos.\n* Expanded commercial adoption of Kaltura’s AI offerings across education,\nreal estate, technology, professional services, financial services, and media\nand telecommunications, spanning employee, learner, customer and\naudience-facing use cases.\n* Achieved the company’s strongest gross retention quarter since the fourth\nquarter of 2022, reflecting continued improvement in customer stability.\n* Made significant progress integrating the Kaltura and PathFactory platforms,\nincluding enabling the synchronization of content and workflows and combining\nenterprise content with first-party engagement signals to support richer\ncontent intelligence, personalization and recommendations.\n* Continued to advance the three layers of Kaltura’s agentic digital\nexperience platform - content creation, content management and intelligence,\nand interactive conversational experiences - including enhanced\navatar-production workflows, expanded multilingual capabilities,\nenterprise-governance features and conversational AI embedded across the\nKaltura’s product portfolio.\n* Advanced the development of two strategic solutions, Agentic Revenue\nEngagement and Agentic Learning & Enablement, which bring together Kaltura’s\nAI-powered content creation, content intelligence, rich-media and\nconversational capabilities around large and repeatable enterprise use cases.\n* Hosted record attendance at the company’s annual Kaltura Connect and\nEducation Connect events and received multiple leadership industry\nrecognitions across conversational AI, enterprise video, and virtual events.\nSecond Quarter 2026 Financial Highlights:\n* Total revenue for the second quarter of 2026 was $46.9 million, an increase\nof 5% compared to $44.5 million for the second quarter of 2025.\n* Subscription Revenue for the second quarter of 2026 was $45.6 million, an\nincrease of 8% compared to $42.4 million for the second quarter of 2025.\n* On a reporting-segment basis, Enterprise, Education and Technology (EE&T)\ntotal revenue increased 11% year-over-year in the second quarter, while Media\n& Telecom (M&T) total revenue declined 10% year-over-year, primarily due to\nelevated gross churn throughout 2025.\n* Annualized Recurring Revenue (ARR) for the second quarter of 2026\nwas $184.6 million, an increase of 8% compared to $170.4 million for the\nsecond quarter of 2025.\n* GAAP Gross profit for the second quarter of 2026 was $34.5 million,\nrepresenting a gross margin of 74% compared to a GAAP gross profit of $31.2\nmillion and gross margin of 70% for the second quarter of 2025. \n* Subscription gross margin was 78% compared to 77% for the second quarter of\n2025.\n* Non-GAAP Gross profit for the second quarter of 2026 was $35.0 million,\nrepresenting a non-GAAP gross margin of 75%, compared to a non-GAAP gross\nprofit of $31.3 million and non-GAAP gross margin of 70% for the second\nquarter of 2025. \n* GAAP Operating loss was $0.8 million for the second quarter of 2026,\ncompared to an operating loss of $2.8 million for the second quarter of 2025.\n* Non-GAAP Operating profit was $4.8 million for the second quarter of 2026,\ncompared to a non-GAAP operating profit of $3.0 million for the second quarter\nof 2025.\n* GAAP Net loss was $5.5 million or $0.04 per diluted share for the second\nquarter of 2026, compared to a GAAP net loss of $7.8 million, or $0.05 per\ndiluted share, for the second quarter of 2025.\n* Non-GAAP Net profit was $2.3 million or $0.01 per diluted share for the\nsecond quarter of 2026, compared to a non-GAAP net loss of $2.5 million, or\n$0.01 per diluted share, for the second quarter of 2025.\n* Adjusted EBITDA was $5.9 million for the second quarter of 2026, compared to\nadjusted EBITDA of $4.1 million for the second quarter of 2025.\nBalance Sheet and Cash Flow\n* The balance of cash, cash equivalents, and marketable securities at the end\nof the second quarter was $35.5 million.\n* Net cash used in operating activities was $2.0 million for the second\nquarter of 2026, compared to $2.7 million net cash provided by operating\nactivities for the second quarter of 2025.\nFinancial Outlook:\n\nFor the third quarter of 2026, Kaltura expects:\n* Subscription Revenue to be between $43.9 million and $44.6 million.\n* Total Revenue to be between $45.8 million and $46.5 million.\n* Adjusted EBITDA to be between $2.0 million to $3.0 million.\nFor the full year ending December 31, 2026, Kaltura expects:\n* Subscription Revenue to be between $176.6 million and $178.6 million.\n* Total Revenue to be between $183.0 million and $185.0 million.\n* Adjusted EBITDA to be in the range of $15.8 million to $17.2 million.\nThe guidance provided above contains forward-looking statements and actual\nresults may differ materially. Refer to “Forward-Looking Statements” below\nfor information on the factors that could cause our actual results to differ\nmaterially from these forward-looking statements. Kaltura has not provided a\nquantitative reconciliation of forecasted Adjusted EBITDA to forecasted GAAP\nnet loss within this press release because the Company is unable, without\nmaking unreasonable efforts, to calculate certain reconciling items with\nconfidence.\n\nThe reconciliation for Adjusted EBITDA includes but is not limited to the\nfollowing items: stock-based compensation expenses, depreciation,\namortization, financial expenses (income), net, provision for income tax, and\nother non-recurring operating expenses.\n\nThese items, which could materially affect the computation of forward-looking\nGAAP net loss, are inherently uncertain and depend on various factors, some of\nwhich are outside of the Company’s control. The guidance above is based on\nthe Company's current expectations relating to the macro-economic climate\ntrends.\n\nAdditional information on Kaltura’s reported results, including a\nreconciliation of the non-GAAP financial measures to their most comparable\nGAAP measures, is included in the financial tables below.\n\nInvestor Deck\n\nThe Company’s investor presentation for the quarter, which showcases its\nagentic avatar technology, is available at: https://q2-26-avatar.kaltura.com/\n\nConference Call\n\nKaltura will host a conference call today on August 5, 2026 to review its\nsecond quarter 2026 financial results and to discuss its financial outlook.\n\n Time: 8:00 a.m. ET \n United States/Canada Toll Free: 1-877-407-0789 \n International Toll: 1-201-689-8562 \n \n\nA live webcast will also be available in the Investor Relations section of\nKaltura’s website at: https://investors.kaltura.com/news-and-events/events.\nA replay of the webcast will be available in the Investor Relations section of\nthe company’s web site approximately two hours after the conclusion of the\ncall and remain available for approximately 30 calendar days.\n\nAbout Kaltura\n\nKaltura’s mission is to power rich, agentic digital experiences across\norganizational journeys for customers, employees, learners, and audiences. Its\nplatform combines intelligent content creation, enterprise-grade content\nmanagement and intelligence, and multimodal conversational engagement\ncapabilities. Kaltura serves leading enterprises, financial institutions,\neducational institutions, media and telecom providers, and other organizations\nworldwide. For more information, visit www.corp.kaltura.com. \n\nInvestor Contacts:\nKaltura\nLiron Sharon\nInterim Principal Financial Officer\nIR@Kaltura.com\n\nSapphire Investor Relations\nErica Mannion and Michael Funari\n+1 617 542 6180\nIR@Kaltura.com\n\nMedia Contacts:\nKaltura\nNohar Zmora\npr.team@kaltura.com\n\nHeadline Media\nRaanan Loew\nraanan@headline.media\n+1 347 897 9276\n\nForward-Looking Statements\n\nThis press release contains forward-looking statements within the meaning of\nSection 27A of the Securities Act of 1933, as amended, and Section 21E of the\nSecurities Exchange Act of 1934, as amended.\n\nAll statements contained in this press release that do not relate to matters\nof historical fact should be considered forward-looking statements, including\nbut not limited to, statements regarding our future financial and operating\nperformance, including our guidance and long-term targets; our business\nstrategy, plans and objectives for future operations; integration activities;\nexpectations with respect to our products and capabilities, including the\nadoption and performance of our new AI-driven technologies; our expectations\nregarding potential profitability and growth; and general economic, business\nand industry conditions, including expectations with respect to trends in\ncustomer consolidation.\n\nIn some cases, you can identify forward-looking statements by terminology such\nas “aim,” “anticipate,” “assume,” “believe,”\n“contemplate,” “continue,” “could,” “due,” “estimate,”\n“expect,” “goal,” “intend,” “may,” “objective,”\n“plan,” “predict,” “potential,” “positioned,” “seek,”\n“should,” “target,” “will,” “would” and other similar\nexpressions that are predictions of or indicate future events and future\ntrends, or the negative of these terms or other comparable terminology,\nalthough not all forward-looking statements contain these words. Any\nforward-looking statements contained herein are based on our historical\nperformance and our current plans, estimates and expectations and are not a\nrepresentation that such plans, estimates, or expectations will be achieved.\nThese forward-looking statements represent our expectations as of the date of\nthis press release. Subsequent events may cause these expectations to change,\nand we disclaim any obligation to update the forward-looking statements in the\nfuture, except as required by law. These forward-looking statements are\nsubject to known and unknown risks and uncertainties that may cause actual\nresults to differ materially from our current expectations.\n\nImportant factors that could cause actual results to differ materially from\nthose anticipated in our forward-looking statements include, but are not\nlimited to, the current volatile economic climate and its direct and indirect\nimpact on our business and operations; political, economic, and military\nconditions in Israel and other geographies; our ability to retain our\ncustomers and meet demand; our ability to achieve and maintain profitability;\nthe evolution of the markets for our offerings; our ability to keep pace with\ntechnological and competitive developments; risks associated with our use of\ncertain artificial intelligence and machine learning models; our ability to\nmaintain the interoperability of our offerings across devices, operating\nsystems and third-party applications; risks associated with our Application\nProgramming Interfaces, other components in our offerings and other\nintellectual property; our ability to compete successfully against current and\nfuture competitors; our ability to increase customer revenue; conditions in\nthe regions in which we operate; risks related to our approach to revenue\nrecognition; our potential exposure to cybersecurity threats; our compliance\nwith data privacy and data protection laws; the potential impact of the EU\nData Act ; our ability to meet our contractual commitments under customer\nagreements; our reliance on third parties; our dependence on and ability to\nretain our key personnel; risks related to revenue mix and customer base;\nrisks related to our international operations; risks related to potential\nacquisitions; risks related to real or perceived issues with our platform,\nproducts or solutions; our ability to generate or raise additional capital;\nrisks related to changes or developments in U.S. or international laws or\npolicies; and the other risks under the caption “Risk Factors” in our\nAnnual Report on Form 10-K for the fiscal year ended December 31, 2025, filed\nwith the Securities and Exchange Commission (“SEC”), as such factors may\nbe updated from time to time in our other filings with the SEC, which are\naccessible on the SEC’s website at www.sec.gov and the Investor Relations\npage of our website at investors.kaltura.com.\n\nNon-GAAP Financial Measures\n\nKaltura has provided in this press release and the accompanying tables\nmeasures of financial information that have not been prepared in accordance\nwith generally accepted accounting principles in the U.S. (\"GAAP\"), including\nnon-GAAP gross profit, non-GAAP gross margin (calculated as a percentage of\nrevenue), non-GAAP research and development expenses, non-GAAP sales and\nmarketing expenses, non-GAAP general and administrative expenses, non-GAAP\noperating profit (loss), non-GAAP operating margin (calculated as a percentage\nof revenue), non-GAAP net income (loss), non-GAAP net income (loss) per share\nand Adjusted EBITDA.\n\nKaltura defines these non-GAAP financial measures as the respective\ncorresponding GAAP measure, adjusted for, as applicable: (1) stock-based\ncompensation expense; (2) the amortization of acquired intangibles; (3)\nstrategic initiatives costs; (4) restructuring cost; (5) acquisition-related\ncompensation costs; and (6) foreign currency translation adjustments loss\n(gain).\n\nKaltura defines EBITDA as net profit (loss) before financial expenses\n(income), net, provision for income taxes, and depreciation and amortization\nexpenses.\n\nAdjusted EBITDA is defined as EBITDA (as defined above), adjusted for the\nimpact of certain non-cash and other items that we believe are not indicative\nof our core operating performance, such as non-cash stock-based compensation\nexpenses and certain non-recurring operating expenses. We believe these\nnon-GAAP financial measures provide useful information to management and\ninvestors regarding certain financial and business trends relating to\nKaltura’s financial condition and results of operations. These non-GAAP\nmetrics are a supplemental measure of our performance, are not defined by or\npresented in accordance with GAAP, and should not be considered in isolation\nor as an alternative to net profit (loss) or any other performance measure\nprepared in accordance with GAAP. Non-GAAP financial measures are presented\nbecause we believe that they provide useful supplemental information to\ninvestors and analysts regarding our operating performance and are frequently\nused by these parties in evaluating companies in our industry. By presenting\nthese non-GAAP financial measures, we provide a basis for comparison of our\nbusiness operations between periods by excluding items that we do not believe\nare indicative of our core operating performance. We believe that investors’\nunderstanding of our performance is enhanced by including these non-GAAP\nfinancial measures as a reasonable basis for comparing our ongoing results of\noperations.\n\nAdditionally, our management uses these non-GAAP financial measures as\nsupplemental measures of our performance because they assist us in comparing\nthe operating performance of our business on a consistent basis between\nperiods, as described above. \n\nAlthough we use the non-GAAP financial measures described above, such measures\nhave significant limitations as analytical tools and only supplement but do\nnot replace, our financial statements in accordance with GAAP. See the tables\nbelow regarding reconciliations of these non-GAAP financial measures to the\nmost directly comparable GAAP measures.\n\nKey Financial and Operating Metrics\n\nAnnualized Recurring Revenue. We use Annualized Recurring Revenue (“ARR”)\nas a measure of our revenue trend and an indicator of our future revenue\nopportunity from existing recurring customer contracts. We calculate ARR by\nannualizing our recurring revenue for the most recently completed fiscal\nquarter. Recurring revenues are generated from SaaS and PaaS subscriptions, as\nwell as term licenses for software installed on the customer's premises\n(“On-Prem”). For the SaaS and PaaS components, we calculate ARR by\nannualizing the actual recurring revenue recognized for the latest fiscal\nquarter. For the On-Prem components for which revenue recognition is not\nratable across the license term, we calculate ARR for each contract by\ndividing the total contract value (excluding professional services) as of the\nlast day of the specified period by the number of days in the contract term\nand then multiplying by 365. Recurring revenue excludes revenue from one-time\nprofessional services and setup fees. ARR is not adjusted for the impact of\nany known or projected future customer cancellations, upgrades or downgrades\nor price increases or decreases. The amount of actual revenue that we\nrecognize over any 12-month period is likely to differ from ARR at the\nbeginning of that period, sometimes significantly. This may occur due to new\nbookings, cancellations, upgrades or downgrades, pending renewals,\nprofessional services revenue, foreign exchange rate fluctuations and\nacquisitions or divestitures. ARR should be viewed independently of revenue as\nit is an operating metric and is not intended to be a replacement or forecast\nof revenue. Our calculation of ARR may differ from similarly titled metrics\npresented by other companies.\n\nNet Dollar Retention Rate. Our Net Dollar Retention Rate, which we use to\nmeasure our success in retaining and growing recurring revenue from our\nexisting customers, compares our recognized recurring revenue from a set of\ncustomers across comparable periods. We calculate our Net Dollar Retention\nRate for a given period as the recognized recurring revenue from the latest\nreported fiscal quarter from the set of customers whose revenue existed in the\nreported fiscal quarter from the prior year (the numerator), divided by\nrecognized recurring revenue from such customers for the same fiscal quarter\nin the prior year (denominator). For annual periods, we report Net Dollar\nRetention Rate as the arithmetic average of the Net Dollar Retention Rate for\nall fiscal quarters included in the period. We consider subdivisions of the\nsame legal entity (for example, divisions of a parent company or separate\ncampuses that are part of the same state university system) ,as well as\nValue-add Resellers (“VARs”) (meaning resellers that directly manage the\nrelationship with the customer) and the customers they manage, to be a single\ncustomer for purposes of calculating our Net Dollar Retention Rate. Our\ncalculation of Net Dollar Retention Rate for any fiscal period includes the\npositive recognized recurring revenue impacts of selling new services to\nexisting customers and the negative recognized recurring revenue impacts of\ncontraction and attrition among this set of customers. Our Net Dollar\nRetention Rate may fluctuate as a result of a number of factors, including the\ngrowing level of our revenue base, the level of penetration within our\ncustomer base, expansion of products and features, and our ability to retain\nour customers. Our calculation of Net Dollar Retention Rate may differ from\nsimilarly titled metrics presented by other companies.\n\nRemaining Performance Obligations. Remaining Performance Obligations\nrepresents the amount of contracted future revenue that has not yet been\ndelivered, including both subscription and professional services revenues.\nRemaining Performance Obligations consists of both deferred revenue and\ncontracted non-cancelable amounts that will be invoiced and recognized in\nfuture periods. We expect to recognize 71% of our Remaining Performance\nObligations as revenue over the next 12 months, and the remainder over a\nperiod of four years, in each case, in accordance with our revenue recognition\npolicy; however, we cannot guarantee that any portion of our Remaining\nPerformance Obligations will be recognized as revenue within the timeframe we\nexpect or at all.\n\n \n Consolidated Balance Sheets (U.S. dollars in thousands) \n \n As of \n June 30, December 31, \n 2026 2025 \n (Unaudited) \n ASSETS \n CURRENT ASSETS: \n Cash and cash equivalents $ 25,965 $ 27,521 \n Marketable securities 5,333 24,358 \n Trade receivables 26,635 16,358 \n Prepaid expenses and other current assets 10,644 13,938 \n Deferred contract acquisition and fulfillment costs, current 6,769 8,508 \n \n Total current assets 75,346 90,683 \n \n NONCURRENT ASSETS: \n Marketable securities 4,225 10,883 \n Property and equipment, net 11,309 12,361 \n Other assets, noncurrent 3,556 3,501 \n Deferred contract acquisition and fulfillment costs, noncurrent 7,461 9,403 \n Operating lease right-of-use assets 9,346 10,311 \n Intangible assets, net 9,915 2,137 \n Goodwill 47,660 25,418 \n \n Total noncurrent assets 93,472 74,014 \n \n TOTAL ASSETS $ 168,818 $ 164,697 \n \n LIABILITIES AND STOCKHOLDERS' EQUITY \n CURRENT LIABILITIES: \n Current portion of long-term loans $ 26,568 $ 29,035 \n Trade payables 10,488 3,788 \n Employees and payroll accruals 14,489 14,876 \n Accrued expenses and other current liabilities 21,523 15,592 \n Operating lease liabilities, current 3,103 2,901 \n Deferred revenue, current 58,318 60,291 \n \n Total current liabilities 134,489 126,483 \n \n NONCURRENT LIABILITIES: \n Deferred revenue, noncurrent 1,434 2,159 \n Operating lease liabilities, noncurrent 13,841 14,398 \n Other liabilities, noncurrent 17,362 15,325 \n \n Total noncurrent liabilities 32,637 31,882 \n \n TOTAL LIABILITIES $ 167,126 $ 158,365 \n STOCKHOLDERS' EQUITY: \n Common stock 18 18 \n Treasury stock (34,006 ) (34,006 ) \n Additional paid-in capital 525,924 518,443 \n Accumulated other comprehensive (loss) income (49 ) 2,759 \n Accumulated deficit (490,195 ) (480,882 ) \n \n Total stockholders' equity 1,692 6,332 \n \n TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 168,818 $ 164,697 \n\n\n\n \n Consolidated Statements of Operations (U.S. dollars in thousands, except for share data) \n \n Three Months Ended Six Months Ended \n June 30, June 30, \n 2026 2025 2026 2025 \n (Unaudited) \n \n Revenue: \n Subscription $ 45,642 $ 42,384 $ 88,831 $ 87,290 \n Professional services 1,252 2,078 2,689 4,156 \n \n Total revenue 46,894 44,462 91,520 91,446 \n \n Cost of revenue: \n Subscription 9,863 9,642 19,608 20,129 \n Professional services 2,494 3,601 5,266 7,362 \n \n Total cost of revenue 12,357 13,243 24,874 27,491 \n \n Gross profit 34,537 31,219 66,646 63,955 \n \n Operating expenses: \n \n Research and development 12,710 11,568 23,446 23,656 \n Sales and marketing 12,838 11,519 24,688 23,442 \n General and administrative 8,491 10,889 19,238 21,191 \n Restructuring 1,273 — 1,273 — \n \n Total operating expenses 35,312 33,976 68,645 68,289 \n \n Operating loss 775 2,757 1,999 4,334 \n \n Financial expense, net 2,310 4,569 2,394 2,766 \n \n Loss before provision for income taxes 3,085 7,326 4,393 7,100 \n \n Provision for income taxes 2,459 424 4,920 1,769 \n \n Net loss 5,544 7,750 9,313 8,869 \n \n Net loss per share attributable to common stockholders, basic and diluted $ 0.04 $ 0.05 $ 0.06 $ 0.06 \n \n Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted 147,582,585 153,536,740 146,716,438 153,771,875 \n\n\n\n \n Stock-based compensation included in above line items: \n \n Three Months Ended June 30, Six Months Ended June 30, \n 2026 2025 2026 2025 \n (Unaudited) \n \n Cost of revenue $ 102 $ 119 $ 208 $ 247 \n Research and development 1,033 760 2,046 1,609 \n Sales and marketing 753 383 1,236 815 \n General and administrative 1,852 2,829 4,010 5,953 \n \n Total $ 3,740 $ 4,091 $ 7,500 $ 8,624 \n\n\n\n \n Revenue by Segment (U.S. dollars in thousands): \n \n Three Months Ended June 30, Six Months Ended June 30, \n 2026 2025 2026 2025 \n (Unaudited) \n \n Enterprise, Education and Technology $ 36,804 $ 33,242 $ 70,955 $ 67,658 \n Media and Telecom 10,090 11,220 20,565 23,788 \n \n Total $ 46,894 $ 44,462 $ 91,520 $ 91,446 \n\n\n\n \n Gross Profit by Segment (U.S. dollars in thousands): \n \n Three Months Ended June 30, Six Months Ended June 30, \n 2026 2025 2026 2025 \n (Unaudited) \n \n Enterprise, Education and Technology $ 29,231 $ 25,867 $ 55,694 $ 52,435 \n Media and Telecom 5,306 5,352 10,952 11,520 \n \n Total $ 34,537 $ 31,219 $ 66,646 $ 63,955 \n\n\n\n \n Consolidated Statement of Cash Flows (U.S. dollars in thousands) \n \n Six Months Ended June 30, \n 2026 2025 \n (Unaudited) \n Cash flows from operating activities: \n Net loss $ (9,313 ) $ (8,869 ) \n Adjustments to reconcile net loss to net cash provided by (used in) operating activities: \n Depreciation and amortization 2,749 2,279 \n Stock-based compensation expenses 7,500 8,624 \n Amortization of deferred contract acquisition and fulfillment costs 4,880 5,746 \n Loss on sale of property and equipment 14 — \n Non-cash interest expenses (Income), net 162 (194 ) \n Gain on foreign exchange (89 ) (487 ) \n Changes in operating assets and liabilities: \n Increase in trade receivables (6,795 ) (1,263 ) \n Decrease (Increase) in prepaid expenses and other current assets and other assets, noncurrent 1,040 (98 ) \n Increase in deferred contract acquisition and fulfillment costs (1,325 ) (2,001 ) \n Increase in trade payables 5,753 6,101 \n Increase (decrease) in accrued expenses and other current liabilities 5,354 (1,552 ) \n Decrease in employees and payroll accruals (1,028 ) (1,316 ) \n Increase in other liabilities, noncurrent 2,052 1,643 \n Decrease in deferred revenue (12,861 ) (8,068 ) \n Operating lease right-of-use assets and lease liabilities, net 610 1,065 \n \n Net cash provided by (used in) operating activities (1,297 ) 1,610 \n \n Cash flows from investing activities: \n \n Investment in available-for-sale marketable securities (9,451 ) (30,436 ) \n Proceeds from maturities of available-for-sale marketable securities 35,058 42,484 \n Purchases of property and equipment (182 ) (423 ) \n Capitalized internal-use software development costs (886 ) — \n Payments for businesses acquired, net of acquired cash (22,454 ) — \n \n Net cash provided by investing activities 2,085 11,625 \n \n Cash flows from financing activities: \n \n Repayment of long-term loans (2,625 ) (1,531 ) \n Proceeds from exercise of stock options 192 2,849 \n Cash settlement of equity classified share-based payment awards — (3,089 ) \n Repurchase of common stock — (9,595 ) \n Change in prepayments for repurchase of common stock — 31 \n \n Net cash used in financing activities (2,433 ) (11,335 ) \n \n Effect of exchange rate changes on cash, cash equivalents and restricted cash 89 487 \n \n Net increase (decrease) in cash, cash equivalents and restricted cash (1,556 ) 2,387 \n Cash, cash equivalents and restricted cash at the beginning of the period 27,621 33,159 \n Cash, cash equivalents and restricted cash at the end of the period $ 26,065 $ 35,546 \n\n\n\n \n Reconciliation from GAAP to Non-GAAP Results (U.S. dollars in thousands) \n \n Three Months Ended June 30, Six Months Ended June 30, \n 2026 2025 2026 2025 \n Reconciliation of gross profit and gross margin \n GAAP gross profit $ 34,537 $ 31,219 $ 66,646 $ 63,955 \n Stock-based compensation expense 102 119 208 247 \n Amortization of acquired intangibles 290 — 398 98 \n Acquisition-related compensation costs ((d)) 48 — 48 — \n Non-GAAP gross profit $ 34,977 $ 31,338 $ 67,300 $ 64,300 \n GAAP gross margin 74 % 70 % 73 % 70 % \n Non-GAAP gross margin 75 % 70 % 74 % 70 % \n Reconciliation of operating expenses \n GAAP research and development expenses $ 12,710 $ 11,568 $ 23,446 $ 23,656 \n Stock-based compensation expense 1,033 760 2,046 1,609 \n Acquisition-related compensation costs ((d)) 102 — 102 — \n Non-GAAP research and development expenses $ 11,575 $ 10,808 $ 21,298 $ 22,047 \n GAAP sales and marketing $ 12,838 $ 11,519 $ 24,688 $ 23,442 \n Stock-based compensation expense 753 383 1,236 815 \n Amortization of acquired intangibles 179 12 193 25 \n Acquisition-related compensation costs ((d)) 19 — 19 — \n Non-GAAP sales and marketing expenses $ 11,887 $ 11,124 $ 23,240 $ 22,602 \n GAAP general and administrative expenses $ 8,491 $ 10,889 $ 19,238 $ 21,191 \n Stock-based compensation expense 1,852 2,829 4,010 5,953 \n Strategic initiatives ((b)) 704 1,632 2,328 1,632 \n Change in fair value of contingent consideration (1,278 ) — (961 ) — \n Acquisition-related compensation costs ((d)) 464 — 464 — \n Non-GAAP general and administrative expenses $ 6,749 $ 6,428 $ 13,397 $ 13,606 \n Reconciliation of operating income (loss) and operating margin \n GAAP operating loss $ (775 ) $ (2,757 ) $ (1,999 ) $ (4,334 ) \n Stock-based compensation expense 3,740 4,091 7,500 8,624 \n Amortization of acquired intangibles 469 12 591 123 \n Strategic initiatives ((b)) 704 1,632 2,328 1,632 \n Change in fair value of contingent consideration (1,278 ) — (961 ) — \n Restructuring ((c)) 1,273 — 1,273 — \n Acquisition-related compensation costs ((d)) 633 — 633 — \n Non-GAAP operating profit $ 4,766 $ 2,978 $ 9,365 $ 6,045 \n GAAP operating margin (2 )% (6 )% (2 )% (5 )% \n Non-GAAP operating margin 10 % 7 % 10 % 7 % \n Reconciliation of net loss \n GAAP net loss attributable to common stockholders $ (5,544 ) $ (7,750 ) $ (9,313 ) $ (8,869 ) \n Stock-based compensation expense 3,740 4,091 7,500 8,624 \n Amortization of acquired intangibles 469 12 591 123 \n Strategic initiatives ((b)) 704 1,632 2,328 1,632 \n Change in fair value of contingent consideration (1,278 ) — (961 ) — \n Restructuring ((c)) 1,273 — 1,273 — \n Acquisition-related compensation costs ((d)) 633 — 633 — \n Foreign currency translation adjustments loss ((e)) 2,321 4,464 2,325 2,892 \n Non-GAAP net profit attributable to common stockholders $ 2,318 $ 2,449 $ 4,376 $ 4,402 \n \n Non-GAAP net earnings per share - basic $ 0.02 $ 0.02 $ 0.03 $ 0.03 \n Non-GAAP net earnings per share - diluted $ 0.01 $ 0.01 $ 0.03 $ 0.03 \n \n Reconciliation of weighted average number of shares outstanding: \n Weighted-average number of shares used in calculating GAAP and Non-GAAP net earnings (loss) per share, basic 147,582,585 153,536,740 146,716,438 153,771,875 \n Effect of dilutive shares used in calculating Non-GAAP net earnings (loss) per share, diluted 8,473,102 12,681,956 6,156,615 10,186,719 \n Weighted-average number of shares used in calculating Non-GAAP net earnings (loss) per share, diluted 156,055,687 166,218,696 152,873,053 163,958,594 \n\n\n\n \n Adjusted EBITDA (U.S. dollars in thousands) \n \n Three Months Ended June 30, Six Months Ended June 30, \n 2026 2025 2026 2025 \n \n Net loss $ (5,544 ) $ (7,750 ) $ (9,313 ) $ (8,869 ) \n Financial expense (income), net ((a)) 2,310 4,569 2,394 2,766 \n Provision for income taxes 2,459 424 4,920 1,769 \n Depreciation and amortization 1,560 1,094 2,749 2,279 \n EBITDA 785 (1,663 ) 750 (2,055 ) \n Non-cash stock-based compensation expense 3,740 4,091 7,500 8,624 \n Strategic initiatives ((b)) 704 1,632 2,328 1,632 \n Change in fair value of contingent consideration (1,278 ) — (961 ) — \n Restructuring ((c)) 1,273 — 1,273 — \n Acquisition-related compensation costs ((d)) 633 — 633 — \n Adjusted EBITDA $ 5,857 $ 4,060 $ 11,523 $ 8,201 \n\n\n\n (a) The three months ended June 30, 2026 and 2025, and the six months ended June 30, 2026 and 2025 include $532, $602, $1,075 and $1,210, respectively, of interest expenses and $663, $737, $1,203 and $1,632, respectively, of interest income. \n \n (b) Strategic initiatives for the three and six months ended June 30, 2026 and 2025 relate to professional fees, consulting services, and transaction-related costs incurred in connection with the acquisition of PathFactory and other costs associated with strategic initiatives. \n \n (c) The three and six months ended June 30, 2026 includes employee termination benefits incurred in connection with the 2026 Reorganization Plans. \n \n (d) Acquisition-related compensation costs for the three months ended June 30, 2026 relate to statutory termination costs and other severance payments associated with integrating the PathFactory acquisition. \n \n\n \n\n \n Reported KPIs \n \n As of June 30, \n 2026 2025 \n (U.S. dollars, amounts in thousands) \n Annualized Recurring Revenue $ 184,570 $ 170,364 \n Remaining Performance Obligations $ 164,327 $ 165,414 \n\n\n\n (1) Remaining Performance Obligations as of June 30, 2025 reflect a reassessment of the historical treatment of certain customer contracts that contain “termination for convenience” clauses, which has resulted in a negative adjustment of $22,710. \n\n\n\n Three Months Ended June 30, \n 2026 2025 \n Net Dollar Retention Rate 96 % 101 % \n\n\n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/584e487b-dd12-4a20-a5b1-c42f4579d369)\n\n\n\nGlobeNewswire, Inc. 2026","article_body_html":"","raw_payload":{"data":{"id":"nGNX81S3By","title":"Kaltura Announces Financial Results for Second Quarter 2026","author":"Globe Newswire","ticker":"KLTR","created":"2026-08-05T11:00:07.139Z","tickers":["KLTR"],"exchange":"NASDAQ","article_body":"NEW YORK, Aug. 05, 2026 (GLOBE NEWSWIRE) -- Kaltura, Inc. (Nasdaq: KLTR,\n“Kaltura” or the “Company”), the Agentic Digital Experience Company,\ntoday announced financial results for the second quarter ended June 30, 2026,\nas well as outlook for the third quarter and full year 2026.\n\nThe Company’s investor presentation for the quarter, which showcases its\nagentic avatar technology, is available at: https://q2-26-avatar.kaltura.com/\n\nTotal revenue for the second quarter was $46.9 million, with subscription\nrevenue of $45.6 million. Net loss for the quarter was $5.5 million, and\nAdjusted EBITDA for the quarter was $5.9 million.\n\n“We delivered a strong second quarter, exceeding the high end of our\nguidance for both revenue and adjusted EBITDA, while achieving record non-GAAP\ngross margin and our highest second-quarter adjusted EBITDA to date,” said\nRon Yekutiel, Co-Founder, Chairman, President, and Chief Executive Officer of\nKaltura. “More importantly, we are beginning to see measurable commercial\ntraction from our evolution to powering rich, agentic digital experiences.\nDuring the quarter, we signed a record fourteen new deals that included our AI\nofferings, doubling our previous record, across a broad range of industries\nand employee, learner, customer, and audience-facing use cases. Our growing\npipeline, expanding proofs of concept, and progress integrating eSelf.ai and\nPathFactory increase our confidence in stronger bookings momentum in the\nsecond half of the year and a more meaningful revenue contribution from our\nnew products in 2027,” concluded Yekutiel.\n\nSecond Quarter 2026 Business Highlights:\n* Exceeded the high end of guidance for both revenue and adjusted EBITDA,\ndelivering the company’s highest second-quarter adjusted EBITDA to date and\na record non-GAAP gross margin of 75%.\n* Grew new subscription bookings sequentially, including thirteen six-digit\ntotal contract value deals. Five of these deals were with new logos across the\nfinancial services, healthcare and education industries.\n* Signed a record fourteen new deals that included one or more of our AI\nofferings which represents a doubling of deals signed compared to our previous\nrecord. Nine of the fourteen deals included Kaltura’s Agentic Avatars, and\neight were with new logos.\n* Expanded commercial adoption of Kaltura’s AI offerings across education,\nreal estate, technology, professional services, financial services, and media\nand telecommunications, spanning employee, learner, customer and\naudience-facing use cases.\n* Achieved the company’s strongest gross retention quarter since the fourth\nquarter of 2022, reflecting continued improvement in customer stability.\n* Made significant progress integrating the Kaltura and PathFactory platforms,\nincluding enabling the synchronization of content and workflows and combining\nenterprise content with first-party engagement signals to support richer\ncontent intelligence, personalization and recommendations.\n* Continued to advance the three layers of Kaltura’s agentic digital\nexperience platform - content creation, content management and intelligence,\nand interactive conversational experiences - including enhanced\navatar-production workflows, expanded multilingual capabilities,\nenterprise-governance features and conversational AI embedded across the\nKaltura’s product portfolio.\n* Advanced the development of two strategic solutions, Agentic Revenue\nEngagement and Agentic Learning & Enablement, which bring together Kaltura’s\nAI-powered content creation, content intelligence, rich-media and\nconversational capabilities around large and repeatable enterprise use cases.\n* Hosted record attendance at the company’s annual Kaltura Connect and\nEducation Connect events and received multiple leadership industry\nrecognitions across conversational AI, enterprise video, and virtual events.\nSecond Quarter 2026 Financial Highlights:\n* Total revenue for the second quarter of 2026 was $46.9 million, an increase\nof 5% compared to $44.5 million for the second quarter of 2025.\n* Subscription Revenue for the second quarter of 2026 was $45.6 million, an\nincrease of 8% compared to $42.4 million for the second quarter of 2025.\n* On a reporting-segment basis, Enterprise, Education and Technology (EE&T)\ntotal revenue increased 11% year-over-year in the second quarter, while Media\n& Telecom (M&T) total revenue declined 10% year-over-year, primarily due to\nelevated gross churn throughout 2025.\n* Annualized Recurring Revenue (ARR) for the second quarter of 2026\nwas $184.6 million, an increase of 8% compared to $170.4 million for the\nsecond quarter of 2025.\n* GAAP Gross profit for the second quarter of 2026 was $34.5 million,\nrepresenting a gross margin of 74% compared to a GAAP gross profit of $31.2\nmillion and gross margin of 70% for the second quarter of 2025. \n* Subscription gross margin was 78% compared to 77% for the second quarter of\n2025.\n* Non-GAAP Gross profit for the second quarter of 2026 was $35.0 million,\nrepresenting a non-GAAP gross margin of 75%, compared to a non-GAAP gross\nprofit of $31.3 million and non-GAAP gross margin of 70% for the second\nquarter of 2025. \n* GAAP Operating loss was $0.8 million for the second quarter of 2026,\ncompared to an operating loss of $2.8 million for the second quarter of 2025.\n* Non-GAAP Operating profit was $4.8 million for the second quarter of 2026,\ncompared to a non-GAAP operating profit of $3.0 million for the second quarter\nof 2025.\n* GAAP Net loss was $5.5 million or $0.04 per diluted share for the second\nquarter of 2026, compared to a GAAP net loss of $7.8 million, or $0.05 per\ndiluted share, for the second quarter of 2025.\n* Non-GAAP Net profit was $2.3 million or $0.01 per diluted share for the\nsecond quarter of 2026, compared to a non-GAAP net loss of $2.5 million, or\n$0.01 per diluted share, for the second quarter of 2025.\n* Adjusted EBITDA was $5.9 million for the second quarter of 2026, compared to\nadjusted EBITDA of $4.1 million for the second quarter of 2025.\nBalance Sheet and Cash Flow\n* The balance of cash, cash equivalents, and marketable securities at the end\nof the second quarter was $35.5 million.\n* Net cash used in operating activities was $2.0 million for the second\nquarter of 2026, compared to $2.7 million net cash provided by operating\nactivities for the second quarter of 2025.\nFinancial Outlook:\n\nFor the third quarter of 2026, Kaltura expects:\n* Subscription Revenue to be between $43.9 million and $44.6 million.\n* Total Revenue to be between $45.8 million and $46.5 million.\n* Adjusted EBITDA to be between $2.0 million to $3.0 million.\nFor the full year ending December 31, 2026, Kaltura expects:\n* Subscription Revenue to be between $176.6 million and $178.6 million.\n* Total Revenue to be between $183.0 million and $185.0 million.\n* Adjusted EBITDA to be in the range of $15.8 million to $17.2 million.\nThe guidance provided above contains forward-looking statements and actual\nresults may differ materially. Refer to “Forward-Looking Statements” below\nfor information on the factors that could cause our actual results to differ\nmaterially from these forward-looking statements. Kaltura has not provided a\nquantitative reconciliation of forecasted Adjusted EBITDA to forecasted GAAP\nnet loss within this press release because the Company is unable, without\nmaking unreasonable efforts, to calculate certain reconciling items with\nconfidence.\n\nThe reconciliation for Adjusted EBITDA includes but is not limited to the\nfollowing items: stock-based compensation expenses, depreciation,\namortization, financial expenses (income), net, provision for income tax, and\nother non-recurring operating expenses.\n\nThese items, which could materially affect the computation of forward-looking\nGAAP net loss, are inherently uncertain and depend on various factors, some of\nwhich are outside of the Company’s control. The guidance above is based on\nthe Company's current expectations relating to the macro-economic climate\ntrends.\n\nAdditional information on Kaltura’s reported results, including a\nreconciliation of the non-GAAP financial measures to their most comparable\nGAAP measures, is included in the financial tables below.\n\nInvestor Deck\n\nThe Company’s investor presentation for the quarter, which showcases its\nagentic avatar technology, is available at: https://q2-26-avatar.kaltura.com/\n\nConference Call\n\nKaltura will host a conference call today on August 5, 2026 to review its\nsecond quarter 2026 financial results and to discuss its financial outlook.\n\n Time: 8:00 a.m. ET \n United States/Canada Toll Free: 1-877-407-0789 \n International Toll: 1-201-689-8562 \n \n\nA live webcast will also be available in the Investor Relations section of\nKaltura’s website at: https://investors.kaltura.com/news-and-events/events.\nA replay of the webcast will be available in the Investor Relations section of\nthe company’s web site approximately two hours after the conclusion of the\ncall and remain available for approximately 30 calendar days.\n\nAbout Kaltura\n\nKaltura’s mission is to power rich, agentic digital experiences across\norganizational journeys for customers, employees, learners, and audiences. Its\nplatform combines intelligent content creation, enterprise-grade content\nmanagement and intelligence, and multimodal conversational engagement\ncapabilities. Kaltura serves leading enterprises, financial institutions,\neducational institutions, media and telecom providers, and other organizations\nworldwide. For more information, visit www.corp.kaltura.com. \n\nInvestor Contacts:\nKaltura\nLiron Sharon\nInterim Principal Financial Officer\nIR@Kaltura.com\n\nSapphire Investor Relations\nErica Mannion and Michael Funari\n+1 617 542 6180\nIR@Kaltura.com\n\nMedia Contacts:\nKaltura\nNohar Zmora\npr.team@kaltura.com\n\nHeadline Media\nRaanan Loew\nraanan@headline.media\n+1 347 897 9276\n\nForward-Looking Statements\n\nThis press release contains forward-looking statements within the meaning of\nSection 27A of the Securities Act of 1933, as amended, and Section 21E of the\nSecurities Exchange Act of 1934, as amended.\n\nAll statements contained in this press release that do not relate to matters\nof historical fact should be considered forward-looking statements, including\nbut not limited to, statements regarding our future financial and operating\nperformance, including our guidance and long-term targets; our business\nstrategy, plans and objectives for future operations; integration activities;\nexpectations with respect to our products and capabilities, including the\nadoption and performance of our new AI-driven technologies; our expectations\nregarding potential profitability and growth; and general economic, business\nand industry conditions, including expectations with respect to trends in\ncustomer consolidation.\n\nIn some cases, you can identify forward-looking statements by terminology such\nas “aim,” “anticipate,” “assume,” “believe,”\n“contemplate,” “continue,” “could,” “due,” “estimate,”\n“expect,” “goal,” “intend,” “may,” “objective,”\n“plan,” “predict,” “potential,” “positioned,” “seek,”\n“should,” “target,” “will,” “would” and other similar\nexpressions that are predictions of or indicate future events and future\ntrends, or the negative of these terms or other comparable terminology,\nalthough not all forward-looking statements contain these words. Any\nforward-looking statements contained herein are based on our historical\nperformance and our current plans, estimates and expectations and are not a\nrepresentation that such plans, estimates, or expectations will be achieved.\nThese forward-looking statements represent our expectations as of the date of\nthis press release. Subsequent events may cause these expectations to change,\nand we disclaim any obligation to update the forward-looking statements in the\nfuture, except as required by law. These forward-looking statements are\nsubject to known and unknown risks and uncertainties that may cause actual\nresults to differ materially from our current expectations.\n\nImportant factors that could cause actual results to differ materially from\nthose anticipated in our forward-looking statements include, but are not\nlimited to, the current volatile economic climate and its direct and indirect\nimpact on our business and operations; political, economic, and military\nconditions in Israel and other geographies; our ability to retain our\ncustomers and meet demand; our ability to achieve and maintain profitability;\nthe evolution of the markets for our offerings; our ability to keep pace with\ntechnological and competitive developments; risks associated with our use of\ncertain artificial intelligence and machine learning models; our ability to\nmaintain the interoperability of our offerings across devices, operating\nsystems and third-party applications; risks associated with our Application\nProgramming Interfaces, other components in our offerings and other\nintellectual property; our ability to compete successfully against current and\nfuture competitors; our ability to increase customer revenue; conditions in\nthe regions in which we operate; risks related to our approach to revenue\nrecognition; our potential exposure to cybersecurity threats; our compliance\nwith data privacy and data protection laws; the potential impact of the EU\nData Act ; our ability to meet our contractual commitments under customer\nagreements; our reliance on third parties; our dependence on and ability to\nretain our key personnel; risks related to revenue mix and customer base;\nrisks related to our international operations; risks related to potential\nacquisitions; risks related to real or perceived issues with our platform,\nproducts or solutions; our ability to generate or raise additional capital;\nrisks related to changes or developments in U.S. or international laws or\npolicies; and the other risks under the caption “Risk Factors” in our\nAnnual Report on Form 10-K for the fiscal year ended December 31, 2025, filed\nwith the Securities and Exchange Commission (“SEC”), as such factors may\nbe updated from time to time in our other filings with the SEC, which are\naccessible on the SEC’s website at www.sec.gov and the Investor Relations\npage of our website at investors.kaltura.com.\n\nNon-GAAP Financial Measures\n\nKaltura has provided in this press release and the accompanying tables\nmeasures of financial information that have not been prepared in accordance\nwith generally accepted accounting principles in the U.S. (\"GAAP\"), including\nnon-GAAP gross profit, non-GAAP gross margin (calculated as a percentage of\nrevenue), non-GAAP research and development expenses, non-GAAP sales and\nmarketing expenses, non-GAAP general and administrative expenses, non-GAAP\noperating profit (loss), non-GAAP operating margin (calculated as a percentage\nof revenue), non-GAAP net income (loss), non-GAAP net income (loss) per share\nand Adjusted EBITDA.\n\nKaltura defines these non-GAAP financial measures as the respective\ncorresponding GAAP measure, adjusted for, as applicable: (1) stock-based\ncompensation expense; (2) the amortization of acquired intangibles; (3)\nstrategic initiatives costs; (4) restructuring cost; (5) acquisition-related\ncompensation costs; and (6) foreign currency translation adjustments loss\n(gain).\n\nKaltura defines EBITDA as net profit (loss) before financial expenses\n(income), net, provision for income taxes, and depreciation and amortization\nexpenses.\n\nAdjusted EBITDA is defined as EBITDA (as defined above), adjusted for the\nimpact of certain non-cash and other items that we believe are not indicative\nof our core operating performance, such as non-cash stock-based compensation\nexpenses and certain non-recurring operating expenses. We believe these\nnon-GAAP financial measures provide useful information to management and\ninvestors regarding certain financial and business trends relating to\nKaltura’s financial condition and results of operations. These non-GAAP\nmetrics are a supplemental measure of our performance, are not defined by or\npresented in accordance with GAAP, and should not be considered in isolation\nor as an alternative to net profit (loss) or any other performance measure\nprepared in accordance with GAAP. Non-GAAP financial measures are presented\nbecause we believe that they provide useful supplemental information to\ninvestors and analysts regarding our operating performance and are frequently\nused by these parties in evaluating companies in our industry. By presenting\nthese non-GAAP financial measures, we provide a basis for comparison of our\nbusiness operations between periods by excluding items that we do not believe\nare indicative of our core operating performance. We believe that investors’\nunderstanding of our performance is enhanced by including these non-GAAP\nfinancial measures as a reasonable basis for comparing our ongoing results of\noperations.\n\nAdditionally, our management uses these non-GAAP financial measures as\nsupplemental measures of our performance because they assist us in comparing\nthe operating performance of our business on a consistent basis between\nperiods, as described above. \n\nAlthough we use the non-GAAP financial measures described above, such measures\nhave significant limitations as analytical tools and only supplement but do\nnot replace, our financial statements in accordance with GAAP. See the tables\nbelow regarding reconciliations of these non-GAAP financial measures to the\nmost directly comparable GAAP measures.\n\nKey Financial and Operating Metrics\n\nAnnualized Recurring Revenue. We use Annualized Recurring Revenue (“ARR”)\nas a measure of our revenue trend and an indicator of our future revenue\nopportunity from existing recurring customer contracts. We calculate ARR by\nannualizing our recurring revenue for the most recently completed fiscal\nquarter. Recurring revenues are generated from SaaS and PaaS subscriptions, as\nwell as term licenses for software installed on the customer's premises\n(“On-Prem”). For the SaaS and PaaS components, we calculate ARR by\nannualizing the actual recurring revenue recognized for the latest fiscal\nquarter. For the On-Prem components for which revenue recognition is not\nratable across the license term, we calculate ARR for each contract by\ndividing the total contract value (excluding professional services) as of the\nlast day of the specified period by the number of days in the contract term\nand then multiplying by 365. Recurring revenue excludes revenue from one-time\nprofessional services and setup fees. ARR is not adjusted for the impact of\nany known or projected future customer cancellations, upgrades or downgrades\nor price increases or decreases. The amount of actual revenue that we\nrecognize over any 12-month period is likely to differ from ARR at the\nbeginning of that period, sometimes significantly. This may occur due to new\nbookings, cancellations, upgrades or downgrades, pending renewals,\nprofessional services revenue, foreign exchange rate fluctuations and\nacquisitions or divestitures. ARR should be viewed independently of revenue as\nit is an operating metric and is not intended to be a replacement or forecast\nof revenue. Our calculation of ARR may differ from similarly titled metrics\npresented by other companies.\n\nNet Dollar Retention Rate. Our Net Dollar Retention Rate, which we use to\nmeasure our success in retaining and growing recurring revenue from our\nexisting customers, compares our recognized recurring revenue from a set of\ncustomers across comparable periods. We calculate our Net Dollar Retention\nRate for a given period as the recognized recurring revenue from the latest\nreported fiscal quarter from the set of customers whose revenue existed in the\nreported fiscal quarter from the prior year (the numerator), divided by\nrecognized recurring revenue from such customers for the same fiscal quarter\nin the prior year (denominator). For annual periods, we report Net Dollar\nRetention Rate as the arithmetic average of the Net Dollar Retention Rate for\nall fiscal quarters included in the period. We consider subdivisions of the\nsame legal entity (for example, divisions of a parent company or separate\ncampuses that are part of the same state university system) ,as well as\nValue-add Resellers (“VARs”) (meaning resellers that directly manage the\nrelationship with the customer) and the customers they manage, to be a single\ncustomer for purposes of calculating our Net Dollar Retention Rate. Our\ncalculation of Net Dollar Retention Rate for any fiscal period includes the\npositive recognized recurring revenue impacts of selling new services to\nexisting customers and the negative recognized recurring revenue impacts of\ncontraction and attrition among this set of customers. Our Net Dollar\nRetention Rate may fluctuate as a result of a number of factors, including the\ngrowing level of our revenue base, the level of penetration within our\ncustomer base, expansion of products and features, and our ability to retain\nour customers. Our calculation of Net Dollar Retention Rate may differ from\nsimilarly titled metrics presented by other companies.\n\nRemaining Performance Obligations. Remaining Performance Obligations\nrepresents the amount of contracted future revenue that has not yet been\ndelivered, including both subscription and professional services revenues.\nRemaining Performance Obligations consists of both deferred revenue and\ncontracted non-cancelable amounts that will be invoiced and recognized in\nfuture periods. We expect to recognize 71% of our Remaining Performance\nObligations as revenue over the next 12 months, and the remainder over a\nperiod of four years, in each case, in accordance with our revenue recognition\npolicy; however, we cannot guarantee that any portion of our Remaining\nPerformance Obligations will be recognized as revenue within the timeframe we\nexpect or at all.\n\n \n Consolidated Balance Sheets (U.S. dollars in thousands) \n \n As of \n June 30, December 31, \n 2026 2025 \n (Unaudited) \n ASSETS \n CURRENT ASSETS: \n Cash and cash equivalents $ 25,965 $ 27,521 \n Marketable securities 5,333 24,358 \n Trade receivables 26,635 16,358 \n Prepaid expenses and other current assets 10,644 13,938 \n Deferred contract acquisition and fulfillment costs, current 6,769 8,508 \n \n Total current assets 75,346 90,683 \n \n NONCURRENT ASSETS: \n Marketable securities 4,225 10,883 \n Property and equipment, net 11,309 12,361 \n Other assets, noncurrent 3,556 3,501 \n Deferred contract acquisition and fulfillment costs, noncurrent 7,461 9,403 \n Operating lease right-of-use assets 9,346 10,311 \n Intangible assets, net 9,915 2,137 \n Goodwill 47,660 25,418 \n \n Total noncurrent assets 93,472 74,014 \n \n TOTAL ASSETS $ 168,818 $ 164,697 \n \n LIABILITIES AND STOCKHOLDERS' EQUITY \n CURRENT LIABILITIES: \n Current portion of long-term loans $ 26,568 $ 29,035 \n Trade payables 10,488 3,788 \n Employees and payroll accruals 14,489 14,876 \n Accrued expenses and other current liabilities 21,523 15,592 \n Operating lease liabilities, current 3,103 2,901 \n Deferred revenue, current 58,318 60,291 \n \n Total current liabilities 134,489 126,483 \n \n NONCURRENT LIABILITIES: \n Deferred revenue, noncurrent 1,434 2,159 \n Operating lease liabilities, noncurrent 13,841 14,398 \n Other liabilities, noncurrent 17,362 15,325 \n \n Total noncurrent liabilities 32,637 31,882 \n \n TOTAL LIABILITIES $ 167,126 $ 158,365 \n STOCKHOLDERS' EQUITY: \n Common stock 18 18 \n Treasury stock (34,006 ) (34,006 ) \n Additional paid-in capital 525,924 518,443 \n Accumulated other comprehensive (loss) income (49 ) 2,759 \n Accumulated deficit (490,195 ) (480,882 ) \n \n Total stockholders' equity 1,692 6,332 \n \n TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 168,818 $ 164,697 \n\n\n\n \n Consolidated Statements of Operations (U.S. dollars in thousands, except for share data) \n \n Three Months Ended Six Months Ended \n June 30, June 30, \n 2026 2025 2026 2025 \n (Unaudited) \n \n Revenue: \n Subscription $ 45,642 $ 42,384 $ 88,831 $ 87,290 \n Professional services 1,252 2,078 2,689 4,156 \n \n Total revenue 46,894 44,462 91,520 91,446 \n \n Cost of revenue: \n Subscription 9,863 9,642 19,608 20,129 \n Professional services 2,494 3,601 5,266 7,362 \n \n Total cost of revenue 12,357 13,243 24,874 27,491 \n \n Gross profit 34,537 31,219 66,646 63,955 \n \n Operating expenses: \n \n Research and development 12,710 11,568 23,446 23,656 \n Sales and marketing 12,838 11,519 24,688 23,442 \n General and administrative 8,491 10,889 19,238 21,191 \n Restructuring 1,273 — 1,273 — \n \n Total operating expenses 35,312 33,976 68,645 68,289 \n \n Operating loss 775 2,757 1,999 4,334 \n \n Financial expense, net 2,310 4,569 2,394 2,766 \n \n Loss before provision for income taxes 3,085 7,326 4,393 7,100 \n \n Provision for income taxes 2,459 424 4,920 1,769 \n \n Net loss 5,544 7,750 9,313 8,869 \n \n Net loss per share attributable to common stockholders, basic and diluted $ 0.04 $ 0.05 $ 0.06 $ 0.06 \n \n Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted 147,582,585 153,536,740 146,716,438 153,771,875 \n\n\n\n \n Stock-based compensation included in above line items: \n \n Three Months Ended June 30, Six Months Ended June 30, \n 2026 2025 2026 2025 \n (Unaudited) \n \n Cost of revenue $ 102 $ 119 $ 208 $ 247 \n Research and development 1,033 760 2,046 1,609 \n Sales and marketing 753 383 1,236 815 \n General and administrative 1,852 2,829 4,010 5,953 \n \n Total $ 3,740 $ 4,091 $ 7,500 $ 8,624 \n\n\n\n \n Revenue by Segment (U.S. dollars in thousands): \n \n Three Months Ended June 30, Six Months Ended June 30, \n 2026 2025 2026 2025 \n (Unaudited) \n \n Enterprise, Education and Technology $ 36,804 $ 33,242 $ 70,955 $ 67,658 \n Media and Telecom 10,090 11,220 20,565 23,788 \n \n Total $ 46,894 $ 44,462 $ 91,520 $ 91,446 \n\n\n\n \n Gross Profit by Segment (U.S. dollars in thousands): \n \n Three Months Ended June 30, Six Months Ended June 30, \n 2026 2025 2026 2025 \n (Unaudited) \n \n Enterprise, Education and Technology $ 29,231 $ 25,867 $ 55,694 $ 52,435 \n Media and Telecom 5,306 5,352 10,952 11,520 \n \n Total $ 34,537 $ 31,219 $ 66,646 $ 63,955 \n\n\n\n \n Consolidated Statement of Cash Flows (U.S. dollars in thousands) \n \n Six Months Ended June 30, \n 2026 2025 \n (Unaudited) \n Cash flows from operating activities: \n Net loss $ (9,313 ) $ (8,869 ) \n Adjustments to reconcile net loss to net cash provided by (used in) operating activities: \n Depreciation and amortization 2,749 2,279 \n Stock-based compensation expenses 7,500 8,624 \n Amortization of deferred contract acquisition and fulfillment costs 4,880 5,746 \n Loss on sale of property and equipment 14 — \n Non-cash interest expenses (Income), net 162 (194 ) \n Gain on foreign exchange (89 ) (487 ) \n Changes in operating assets and liabilities: \n Increase in trade receivables (6,795 ) (1,263 ) \n Decrease (Increase) in prepaid expenses and other current assets and other assets, noncurrent 1,040 (98 ) \n Increase in deferred contract acquisition and fulfillment costs (1,325 ) (2,001 ) \n Increase in trade payables 5,753 6,101 \n Increase (decrease) in accrued expenses and other current liabilities 5,354 (1,552 ) \n Decrease in employees and payroll accruals (1,028 ) (1,316 ) \n Increase in other liabilities, noncurrent 2,052 1,643 \n Decrease in deferred revenue (12,861 ) (8,068 ) \n Operating lease right-of-use assets and lease liabilities, net 610 1,065 \n \n Net cash provided by (used in) operating activities (1,297 ) 1,610 \n \n Cash flows from investing activities: \n \n Investment in available-for-sale marketable securities (9,451 ) (30,436 ) \n Proceeds from maturities of available-for-sale marketable securities 35,058 42,484 \n Purchases of property and equipment (182 ) (423 ) \n Capitalized internal-use software development costs (886 ) — \n Payments for businesses acquired, net of acquired cash (22,454 ) — \n \n Net cash provided by investing activities 2,085 11,625 \n \n Cash flows from financing activities: \n \n Repayment of long-term loans (2,625 ) (1,531 ) \n Proceeds from exercise of stock options 192 2,849 \n Cash settlement of equity classified share-based payment awards — (3,089 ) \n Repurchase of common stock — (9,595 ) \n Change in prepayments for repurchase of common stock — 31 \n \n Net cash used in financing activities (2,433 ) (11,335 ) \n \n Effect of exchange rate changes on cash, cash equivalents and restricted cash 89 487 \n \n Net increase (decrease) in cash, cash equivalents and restricted cash (1,556 ) 2,387 \n Cash, cash equivalents and restricted cash at the beginning of the period 27,621 33,159 \n Cash, cash equivalents and restricted cash at the end of the period $ 26,065 $ 35,546 \n\n\n\n \n Reconciliation from GAAP to Non-GAAP Results (U.S. dollars in thousands) \n \n Three Months Ended June 30, Six Months Ended June 30, \n 2026 2025 2026 2025 \n Reconciliation of gross profit and gross margin \n GAAP gross profit $ 34,537 $ 31,219 $ 66,646 $ 63,955 \n Stock-based compensation expense 102 119 208 247 \n Amortization of acquired intangibles 290 — 398 98 \n Acquisition-related compensation costs ((d)) 48 — 48 — \n Non-GAAP gross profit $ 34,977 $ 31,338 $ 67,300 $ 64,300 \n GAAP gross margin 74 % 70 % 73 % 70 % \n Non-GAAP gross margin 75 % 70 % 74 % 70 % \n Reconciliation of operating expenses \n GAAP research and development expenses $ 12,710 $ 11,568 $ 23,446 $ 23,656 \n Stock-based compensation expense 1,033 760 2,046 1,609 \n Acquisition-related compensation costs ((d)) 102 — 102 — \n Non-GAAP research and development expenses $ 11,575 $ 10,808 $ 21,298 $ 22,047 \n GAAP sales and marketing $ 12,838 $ 11,519 $ 24,688 $ 23,442 \n Stock-based compensation expense 753 383 1,236 815 \n Amortization of acquired intangibles 179 12 193 25 \n Acquisition-related compensation costs ((d)) 19 — 19 — \n Non-GAAP sales and marketing expenses $ 11,887 $ 11,124 $ 23,240 $ 22,602 \n GAAP general and administrative expenses $ 8,491 $ 10,889 $ 19,238 $ 21,191 \n Stock-based compensation expense 1,852 2,829 4,010 5,953 \n Strategic initiatives ((b)) 704 1,632 2,328 1,632 \n Change in fair value of contingent consideration (1,278 ) — (961 ) — \n Acquisition-related compensation costs ((d)) 464 — 464 — \n Non-GAAP general and administrative expenses $ 6,749 $ 6,428 $ 13,397 $ 13,606 \n Reconciliation of operating income (loss) and operating margin \n GAAP operating loss $ (775 ) $ (2,757 ) $ (1,999 ) $ (4,334 ) \n Stock-based compensation expense 3,740 4,091 7,500 8,624 \n Amortization of acquired intangibles 469 12 591 123 \n Strategic initiatives ((b)) 704 1,632 2,328 1,632 \n Change in fair value of contingent consideration (1,278 ) — (961 ) — \n Restructuring ((c)) 1,273 — 1,273 — \n Acquisition-related compensation costs ((d)) 633 — 633 — \n Non-GAAP operating profit $ 4,766 $ 2,978 $ 9,365 $ 6,045 \n GAAP operating margin (2 )% (6 )% (2 )% (5 )% \n Non-GAAP operating margin 10 % 7 % 10 % 7 % \n Reconciliation of net loss \n GAAP net loss attributable to common stockholders $ (5,544 ) $ (7,750 ) $ (9,313 ) $ (8,869 ) \n Stock-based compensation expense 3,740 4,091 7,500 8,624 \n Amortization of acquired intangibles 469 12 591 123 \n Strategic initiatives ((b)) 704 1,632 2,328 1,632 \n Change in fair value of contingent consideration (1,278 ) — (961 ) — \n Restructuring ((c)) 1,273 — 1,273 — \n Acquisition-related compensation costs ((d)) 633 — 633 — \n Foreign currency translation adjustments loss ((e)) 2,321 4,464 2,325 2,892 \n Non-GAAP net profit attributable to common stockholders $ 2,318 $ 2,449 $ 4,376 $ 4,402 \n \n Non-GAAP net earnings per share - basic $ 0.02 $ 0.02 $ 0.03 $ 0.03 \n Non-GAAP net earnings per share - diluted $ 0.01 $ 0.01 $ 0.03 $ 0.03 \n \n Reconciliation of weighted average number of shares outstanding: \n Weighted-average number of shares used in calculating GAAP and Non-GAAP net earnings (loss) per share, basic 147,582,585 153,536,740 146,716,438 153,771,875 \n Effect of dilutive shares used in calculating Non-GAAP net earnings (loss) per share, diluted 8,473,102 12,681,956 6,156,615 10,186,719 \n Weighted-average number of shares used in calculating Non-GAAP net earnings (loss) per share, diluted 156,055,687 166,218,696 152,873,053 163,958,594 \n\n\n\n \n Adjusted EBITDA (U.S. dollars in thousands) \n \n Three Months Ended June 30, Six Months Ended June 30, \n 2026 2025 2026 2025 \n \n Net loss $ (5,544 ) $ (7,750 ) $ (9,313 ) $ (8,869 ) \n Financial expense (income), net ((a)) 2,310 4,569 2,394 2,766 \n Provision for income taxes 2,459 424 4,920 1,769 \n Depreciation and amortization 1,560 1,094 2,749 2,279 \n EBITDA 785 (1,663 ) 750 (2,055 ) \n Non-cash stock-based compensation expense 3,740 4,091 7,500 8,624 \n Strategic initiatives ((b)) 704 1,632 2,328 1,632 \n Change in fair value of contingent consideration (1,278 ) — (961 ) — \n Restructuring ((c)) 1,273 — 1,273 — \n Acquisition-related compensation costs ((d)) 633 — 633 — \n Adjusted EBITDA $ 5,857 $ 4,060 $ 11,523 $ 8,201 \n\n\n\n (a) The three months ended June 30, 2026 and 2025, and the six months ended June 30, 2026 and 2025 include $532, $602, $1,075 and $1,210, respectively, of interest expenses and $663, $737, $1,203 and $1,632, respectively, of interest income. \n \n (b) Strategic initiatives for the three and six months ended June 30, 2026 and 2025 relate to professional fees, consulting services, and transaction-related costs incurred in connection with the acquisition of PathFactory and other costs associated with strategic initiatives. \n \n (c) The three and six months ended June 30, 2026 includes employee termination benefits incurred in connection with the 2026 Reorganization Plans. \n \n (d) Acquisition-related compensation costs for the three months ended June 30, 2026 relate to statutory termination costs and other severance payments associated with integrating the PathFactory acquisition. \n \n\n \n\n \n Reported KPIs \n \n As of June 30, \n 2026 2025 \n (U.S. dollars, amounts in thousands) \n Annualized Recurring Revenue $ 184,570 $ 170,364 \n Remaining Performance Obligations $ 164,327 $ 165,414 \n\n\n\n (1) Remaining Performance Obligations as of June 30, 2025 reflect a reassessment of the historical treatment of certain customer contracts that contain “termination for convenience” clauses, which has resulted in a negative adjustment of $22,710. \n\n\n\n Three Months Ended June 30, \n 2026 2025 \n Net Dollar Retention Rate 96 % 101 % \n\n\n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/584e487b-dd12-4a20-a5b1-c42f4579d369)\n\n\n\nGlobeNewswire, Inc. 2026"},"type":"article","timestamp":"2026-08-05T11:00:10.531961934Z","server_sent_at_ms":1785927610531},"received_at":"2026-08-05T11:00:10.587Z","source_url":"https://www.globenewswire.com/news-release/2026/08/05/3339179/0/en/kaltura-announces-financial-results-for-second-quarter-2026.html"},"analysis":{"id":"98243","press_release_id":"109237","analysis_json":{"industry":{"label":"Software","sector":"Information Technology"},"redFlags":[],"eventType":"earnings","narrative":"Kaltura reported Q2 total revenue of $46.9 million, up 5% year-over-year, exceeding the high end of company guidance with subscription revenue growing 8% to $45.6 million.\n\nThe company achieved record Q2 adjusted EBITDA of $5.9 million and a 75% non-GAAP gross margin, while signing a record 14 new AI deals including nine for Agentic Avatars.\n\nFor the full year 2026, Kaltura expects total revenue of $183.0 million to $185.0 million and adjusted EBITDA between $15.8 million and $17.2 million.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"Guidance beat with record margins and AI traction supports growth narrative."},"keyFigures":{"revenue":46900000,"guidance":"FY2026 Total Revenue $183.0M-$185.0M; Adjusted EBITDA $15.8M-$17.2M","revenueYoy":"5%","customDimensions":{"arr":184600000,"adjusted_ebitda":5900000,"gaap_gross_margin":"74%","subscription_revenue":45600000,"non_gaap_gross_margin":"75%"}},"quotedText":"We delivered a strong second quarter, exceeding the high end of our guidance for both revenue and adjusted EBITDA, while achieving record non-GAAP gross margin and our highest second-quarter adjusted EBITDA to date","namedEntities":{"people":[{"name":"Ron Yekutiel","role":"Co-Founder, Chairman, President, and Chief Executive Officer"},{"name":"Liron Sharon","role":"Interim Principal Financial Officer"}],"products":["Agentic Avatars","Agentic Revenue Engagement","Agentic Learning & Enablement"],"companies":[{"name":"Kaltura, Inc.","ticker":"KLTR"},{"name":"eSelf.ai","relationship":"partner/integration target"},{"name":"PathFactory","relationship":"acquisition/integration target"},{"name":"Sapphire Investor Relations","relationship":"investor relations firm"}],"dollarAmounts":[{"amount":"$46.9 million","context":"Q2 2026 Total Revenue"},{"amount":"$5.9 million","context":"Q2 2026 Adjusted EBITDA"},{"amount":"$184.6 million","context":"Q2 2026 Annualized Recurring Revenue (ARR)"}]},"materialImpact":{"score":3,"reasoning":"Company exceeded the high end of its own guidance for revenue and Adjusted EBITDA while achieving record non-GAAP gross margins. Strong operational metrics and AI traction offset modest 5% total revenue growth."},"tickerRelevance":{"others":[],"primary":"KLTR"},"globalImportance":25,"audienceRelevance":25,"eventTypeSecondary":[],"importanceComponents":{"tickerTier":"small-mid-cap","eventGravity":"earnings-beat-guidance","sectorWeight":"software"}},"event_type":"earnings","event_type_secondary":null,"sentiment":"bullish","material_impact_score":3,"narrative":"Kaltura reported Q2 total revenue of $46.9 million, up 5% year-over-year, exceeding the high end of company guidance with subscription revenue growing 8% to $45.6 million.\n\nThe company achieved record Q2 adjusted EBITDA of $5.9 million and a 75% non-GAAP gross margin, while signing a record 14 new AI deals including nine for Agentic Avatars.\n\nFor the full year 2026, Kaltura expects total revenue of $183.0 million to $185.0 million and adjusted EBITDA between $15.8 million and $17.2 million.","key_figures":{"revenue":46900000,"guidance":"FY2026 Total Revenue $183.0M-$185.0M; Adjusted EBITDA $15.8M-$17.2M","revenueYoy":"5%","customDimensions":{"arr":184600000,"adjusted_ebitda":5900000,"gaap_gross_margin":"74%","subscription_revenue":45600000,"non_gaap_gross_margin":"75%"}},"named_entities":{"people":[{"name":"Ron Yekutiel","role":"Co-Founder, Chairman, President, and Chief Executive Officer"},{"name":"Liron Sharon","role":"Interim Principal Financial Officer"}],"products":["Agentic Avatars","Agentic Revenue Engagement","Agentic Learning & Enablement"],"companies":[{"name":"Kaltura, Inc.","ticker":"KLTR"},{"name":"eSelf.ai","relationship":"partner/integration target"},{"name":"PathFactory","relationship":"acquisition/integration target"},{"name":"Sapphire Investor Relations","relationship":"investor relations firm"}],"dollarAmounts":[{"amount":"$46.9 million","context":"Q2 2026 Total Revenue"},{"amount":"$5.9 million","context":"Q2 2026 Adjusted EBITDA"},{"amount":"$184.6 million","context":"Q2 2026 Annualized Recurring Revenue (ARR)"}]},"model_name":"glm-4.7","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-08-05T13:59:40.710Z","global_importance":25,"audience_relevance":25,"importance_components":{"tickerTier":"small-mid-cap","eventGravity":"earnings-beat-guidance","sectorWeight":"software"}},"durationMs":275772,"modelName":"glm-4.7"}}