Kaltura 2025 Q3 Earnings Beats Estimates as Net Loss Narrows 27.2%

Kaltura (KLTR) reported Q3 2025 earnings that exceeded expectations, with revenue of $43.87 million and a narrowed net loss of $2.63 million. The company also announced a $27 million acquisition of eSelf.ai and a $16.6 million share repurchase, signaling strategic momentum.

Revenue

Kaltura’s total revenue in Q3 2025 amounted to $43.87 million, with subscription services leading at $41.98 million. Professional services added $1.89 million, rounding out the total revenue figure. This represents a 1.0% decline year-over-year from $44.30 million in 2024 Q3.

Earnings/Net Income

The company maintained an EPS of $-0.02 in Q3 2025, unchanged from the prior year. However, Kaltura’s net loss improved significantly, narrowing by 27.2% to $2.63 million from $3.61 million in 2024 Q3. Despite sustained losses over six years, the reduction highlights progress in cost management.

Despite a negative EPS of $-0.02, Kaltura’s 27.2% reduction in net loss signals improved financial health.

Post-Earnings Price Action Review

The strategy of purchasing Kaltura shares upon quarterly revenue beats and holding for 30 days showed favorable performance, with a cumulative return of 28.4%, outperforming the S&P 500’s 22.3% over the same period. This suggests a robust approach to capitalizing on earnings beats, with KLTR’s stock appreciating consistently afterward.

CEO Commentary

Ron Yekutiel, CEO, emphasized Kaltura’s transformation into an AI-driven CX/EX company, citing the eSelf.ai acquisition as a catalyst for growth. The integration of eSelf’s photorealistic avatars and conversational AI is expected to enhance customer and employee engagement, aligning with the company’s long-term vision of operational efficiency.

Guidance

Kaltura projected Q4 2025 total revenue of $45–45.7 million, with subscription revenue at $41.6–42.3 million. Full-year 2025 revenue is forecasted at $180.3–181 million, alongside adjusted EBITDA of $16.6–17.6 million. The company aims to achieve double-digit revenue growth and a “Rule of 30” by 2028.

Additional News

Kaltura’s recent $27 million acquisition of eSelf.ai marks its fourth strategic move, enhancing AI-driven video capabilities with real-time conversational avatars. The deal, expected to close in Q4 2025, includes $7.5 million in cash and $12.5 million in contingent payments over three years. Separately, the company repurchased 14.4 million shares from Goldman Sachs at a 25% discount to 30-day VWAP, signaling confidence in its valuation. CEO Ron Yekutiel also highlighted plans to leverage eSelf’s technology for AI-powered content creation and customer support, reinforcing Kaltura’s shift toward immersive virtual experiences.

The company’s stock surged over 26% in pre-market trading following the earnings release and acquisition news, reflecting investor optimism around AI-driven growth and capital efficiency.