Kaltura Q2 2025 Revenue Up 1% YoY, Achieves Record Profit

Kaltura reported Q2 2025 revenue of $44.5 million, a 1% YoY increase, and achieved a record non-GAAP net profit of $2.5 million and adjusted EBITDA of $4.1 million. The company announced a 10% workforce reduction aiming for $8.5 million in annual cost savings. Kaltura projects full-year 2025 total revenue to range between $180.4 million and $182.4 million and adjusted EBITDA to lie within $14.5 million to $16.0 million.

Kaltura (NASDAQ: KLTR) reported robust financial results for the second quarter of 2025, highlighting a mix of modest revenue growth and significant profitability improvements. The company's revenue for Q2 2025 was $44.5 million, representing a 1% year-over-year (YoY) increase. Subscription revenue grew by 3% to $42.4 million, while the company's annual recurring revenue (ARR) increased by 3% to $170.4 million.

Kaltura's financial highlights include a record non-GAAP net profit of $2.5 million, a substantial improvement from the $0.01 per share net profit in Q2 2024. The company also achieved an adjusted EBITDA of $4.1 million, more than doubling from the previous year's $1.5 million. Gross margin improved from 65% to 70% on a GAAP basis, reflecting operational efficiency gains. Additionally, Kaltura generated positive operating cash flow of $2.7 million, indicating strong liquidity.

To drive further efficiency and cost savings, Kaltura announced a strategic reorganization, including a 10% workforce reduction. The company expects this initiative to save $8.5 million annually, contributing to its goal of doubling adjusted EBITDA by 2026. The reorganization aligns with Kaltura's longer-term objective of becoming a 'Rule of 30' company by 2028, combining double-digit revenue growth with improved EBITDA margin.

Kaltura's emerging AI product portfolio is expected to be a growth catalyst. The company secured 21 new six-figure deals and launched its first three AI-driven deals, with over 100 qualified AI opportunities in the pipeline. For full-year 2025, Kaltura projects total revenue between $180.4 million and $182.4 million and adjusted EBITDA of $14.5 million to $16.0 million, indicating continued modest top-line growth with improving profitability.

Ron Yekutiel, Co-founder, Chairman, President, and CEO of Kaltura, commented, "We exceeded the upper end of all our second quarter guidance ranges, delivering record non-GAAP net profit, an adjusted EBITDA profit that matched last quarter’s record high, and strongest second-quarter operating cash flow since 2020."

Kaltura's Q2 2025 results showcase a company successfully transitioning from growth-at-all-costs to a more balanced approach, prioritizing profitability while developing new AI capabilities that could reignite growth in future periods. The company's net dollar retention above 100% for the fourth consecutive quarter is a positive indicator for the core business, suggesting existing customers are expanding their usage despite the broader reorganization.

For the third quarter of 2025, Kaltura expects revenue between $42.8 million and $43.6 million, with adjusted EBITDA projected to range from $1.5 million to $2.5 million. Full-year 2025 guidance includes total revenue between $180.4 million and $182.4 million, and adjusted EBITDA of $14.5 million to $16.0 million.

References:
[1] https://www.stocktitan.net/news/KLTR/kaltura-announces-financial-results-for-second-quarter-kjrvcury5vnx.html