KLTR · Kaltura, Inc.

Kaltura's Q1 2026 results demonstrated operational resilience despite a 5% year-over-year decline in total revenue to $44.6 million, driven primarily by a 17% drop in Media & Telecom segment revenue due to elevated gross churn in 2025, partially offset by a milder 1% decline in Enterprise, Education & Technology. Subscription revenue of $43.2 million represented 97% of total, with ARR at $168.8 million reflecting a 3% decrease but the highest gross retention in five quarters, signaling improving customer stability. Margin expansion was evident as GAAP gross margin rose to 72% from 70%, with Non-GAAP operating profit increasing to $4.6 million from $3.1 million, culminating in Adjusted EBITDA of $5.7 million surpassing prior-year levels. CEO Ron Yekutiel highlighted a strong start with positive Q1 operating cash flow of $0.7 million for the first time, new subscription bookings including AI deals, and launches like conversational Agentic Avatar general availability and ISO/IEC 42001 AI certification. Strategic progress included partnerships with Cornerstone and Descript, and the PathFactory acquisition closing April 1, 2026, enhancing content intelligence for agentic experiences. Guidance projects modest growth with Q2 subscription revenue up 2-4% year-over-year and full-year total revenue 1-2%, factoring in AI integration investments from recent acquisitions. Cash position stood at $61.8 million, supporting ongoing transitions to AI-powered digital experiences amid seasonal booking patterns.