The enterprise software company exceeded second-quarter guidance, reported record AI-related customer wins, and highlighted growing commercial traction for its agentic digital experience platform while maintaining its full-year outlook.
Key Investor Takeaways
- Kaltura (NASDAQ:KLTR) exceeded second-quarter guidance with revenue rising 5% to $46.9 million and adjusted EBITDA increasing to $5.9 million.
- The company signed a record 14 AI-related deals during the quarter, including nine involving its Agentic Avatars technology and eight with new customers.
- Annualized recurring revenue (ARR) increased 8% to $184.6 million, while subscription revenue grew 8% year over year.
- Record non-GAAP gross margin of 75% and improved operating profitability reflected continued operational efficiency.
- Management expects stronger bookings momentum in the second half of 2026, with more meaningful revenue contributions from new AI products anticipated in 2027.
Why KLTR Stock Is in Focus
Kaltura (NASDAQ:KLTR) reported second-quarter 2026 revenue of $46.9 million, up 5% from the prior year, while subscription revenue increased 8% to $45.6 million. Annualized recurring revenue climbed to $184.6 million, also representing 8% year-over-year growth.
Profitability continued to improve. GAAP operating loss narrowed to $0.8 million from $2.8 million a year earlier, while non-GAAP operating profit increased to $4.8 million. Adjusted EBITDA reached $5.9 million, exceeding the company’s guidance and marking its strongest second-quarter adjusted EBITDA performance to date. Non-GAAP gross margin also reached a record 75%.
The quarter also highlighted accelerating adoption of Kaltura’s AI offerings. The company signed a record 14 contracts that included AI products, doubling its previous high. Nine of those agreements included Agentic Avatars, while eight were with new customers across industries including financial services, healthcare, education, technology, media, and professional services.
Kaltura also advanced the integration of its eSelf.ai and PathFactory acquisitions, expanded enterprise AI capabilities across its platform, and continued developing two strategic offerings focused on Agentic Revenue Engagement and Agentic Learning & Enablement.
For the third quarter, the company expects revenue between $45.8 million and $46.5 million with adjusted EBITDA of $2.0 million to $3.0 million. Full-year guidance calls for total revenue between $183.0 million and $185.0 million and adjusted EBITDA of $15.8 million to $17.2 million.
Why This Matters for Investors
The quarter suggests Kaltura’s AI strategy is beginning to translate into measurable commercial activity rather than remaining solely a product development initiative.
While overall revenue growth remained modest, the increase in AI-related customer wins and higher subscription revenue may indicate growing demand for the company’s evolving platform. Strong recurring revenue growth and improving retention also suggest greater stability within its subscription business.
At the same time, investors may continue monitoring the Media & Telecom segment, where revenue declined 10% year over year due to elevated customer churn during 2025. Future growth may increasingly depend on whether expanding enterprise AI adoption offsets weakness in legacy business areas.
Management’s expectation that newer AI products will contribute more meaningfully to revenue in 2027 also points to a longer commercialization timeline, making bookings growth and customer adoption important indicators over the coming quarters.
What to Watch Next
Investors will likely focus on:
- Whether AI-related bookings continue accelerating during the second half of 2026.
- Progress integrating the eSelf.ai and PathFactory platforms.
- Adoption of Agentic Avatars and the company’s new Agentic Revenue Engagement and Agentic Learning & Enablement solutions.
- Improvement in the Media & Telecom segment alongside continued expansion in enterprise and education markets.