Kaltura 2025 Q3 Earnings Beats Estimates, Narrows Net Loss by 27.2%

Kaltura (KLTR) reported Q3 2025 earnings on Nov 11, 2025, with revenue slightly above expectations and a reduced net loss. The company’s shares surged post-earnings, driven by improved EBITDA and strategic moves like the eSelf.ai acquisition.

Revenue

Kaltura’s total revenue for Q3 2025 declined marginally by 1.0% year-over-year to $43.87 million. Subscription revenue remained the backbone, contributing $41.98 million, while professional services added $1.89 million. Despite the slight dip, the company maintained a stable revenue mix, with subscription income accounting for 95.7% of total revenue.

Earnings/Net Income

The company reported stable EPS of -$0.02 for Q3 2025, matching the prior-year period. However, Kaltura significantly narrowed its net loss to -$2.63 million, a 27.2% reduction from -$3.61 million in 2024 Q3. While losses persist, the improvement signals progress in cost management and operational efficiency.

Post-Earnings Price Action Review

Kaltura’s stock responded positively to the earnings release, surging 24% post-earnings and gaining an additional 26.5% in pre-market trading. The rally was fueled by record adjusted EBITDA of $4.2 million, robust operating cash flow, and a $27 million acquisition of eSelf.ai to enhance AI capabilities. Analysts highlighted a $3.00 consensus price target, while technical indicators showed strong momentum, with shares trading as high as $2.235. Despite these positives, risks like market volatility and economic uncertainties remain relevant. The strategy of buying shares on revenue beats and holding for 30 days appears viable, though investors must monitor broader market shifts.

CEO Commentary

Ron Yekutiel, CEO of Kaltura, emphasized the company’s Q3 achievements, including exceeding guidance for adjusted EBITDA and securing a robust pipeline. The acquisition of eSelf.ai is positioned to accelerate AI-driven virtual agent development, while the $16.6 million share repurchase at a 25% discount to 30-day VWAP underscores confidence in long-term value.

Guidance

Kaltura provided Q4 2025 revenue guidance of $45.0M–$45.7M, with adjusted EBITDA projected at $4.2M–$5.2M. For FY2025, the company forecasts total revenue of $180.3M–$181.0M and adjusted EBITDA of $16.6M–$17.6M.

Additional News

1. eSelf.ai Acquisition: Kaltura finalized a $27 million deal to acquire eSelf.ai, a provider of AI-powered conversational avatars, to enhance its virtual agent offerings. The acquisition is expected to close in Q4 2025.

2. Share Repurchase: On Nov 7, Kaltura repurchased 14.4 million shares from Goldman Sachs at a 25% discount to 30-day VWAP, reducing outstanding shares while preserving cash for growth initiatives.

3. CFO Departure: John Doherty, CFO, announced his departure to join a public medical-tech company, with a transition period through March 2026.

Kaltura’s strategic moves, including AI integration and cost-efficient buybacks, aim to strengthen its position in the video experience cloud market. Investors will closely monitor the eSelf.ai integration and the company’s ability to sustain EBITDA growth amid competitive pressures.