Kaltura's Q2 2025: Navigating Contradictions in M&T Churn, AI Integration, and Strategic Focus

M&T churn and market leadership, AI integration and revenue impact, AI integration and monetization strategies, on-premise revenue and strategic focus, and product innovation and AI integration are the key contradictions discussed in Kaltura's latest 2025Q2 earnings call.



Revenue and Subscription Growth:
- Kaltura reported total revenue of $44.5 million for Q2 2025, up 1% year-over-year, with subscription revenue increasing by 3% year-over-year to $42.4 million.
- This growth in revenue was fueled by the extension and expansion of long-term contracts with global telecom leaders like Vodafone, highlighting their continued leadership in the cloud TV market.

ARR and RPO Increase:
- Annualized recurring revenue (ARR) grew by 3%, and remaining performance obligations (RPO) increased by 6% year-over-year, with 61% expected to be recognized as revenue over the next 12 months.
- The increase in ARR and RPO was supported by strong renewals and upsells across existing and new customer deals.

Adjusted EBITDA Profitability:
- Kaltura achieved an adjusted EBITDA of $4.1 million, matching the record from the previous quarter, marking the eighth consecutive quarter of adjusted EBITDA profitability.
- This was driven by a strong non-GAAP gross margin of 70%, up from 66% in the same quarter last year, indicating operational efficiency and cost management improvements.

AI Product Development and Opportunities:
- The company closed its first AI deals, generating revenue from offerings like Content Lab and Genie, which contributed to the growth in subscription revenue.
- The development and commercialization of these AI products are expected to drive future revenue growth, as demonstrated by the strong sales pipeline with over 100 qualified opportunities.