Kaltura, Inc.

What they do

Kaltura provides a cloud-based Digital Experience Platform with three layers: rich media content creation, management, and experiences. It sells SaaS subscriptions and platform usage licenses, targeting large enterprises, educational institutions, technology providers, and media/telecom companies. The platform supports live and on-demand video, virtual events, webinars, and cloud TV, increasingly incorporating AI-generated video and avatar-based interactions from the eSelf AI acquisition.

Revenue drivers

• Subscription revenue — Primary revenue source; Q1 2026 subscription revenue was $43.2 million, 97% of total revenue, down 4% year-over-year.
• Enterprise, Education and Technology (EE&T) segment — Reported segment; Q1 2026 total revenue declined 1% year-over-year, representing the majority of the business.
• Media & Telecom (M&T) segment — Reported segment; Q1 2026 total revenue declined 17% year-over-year, primarily due to elevated gross churn throughout 2025.
• Professional services — Derives revenue from professional services associated with platform usage licenses, though not separately quantified.

Recent performance

Q1 2026 total revenue was $44.6 million, down 5% year-over-year, with subscription revenue of $43.2 million, down 4%. Adjusted EBITDA was $5.7 million, and the company reported its first positive Q1 operating cash flow. GAAP gross margin was 72%, and subscription gross margin was flat at 77%. ARR was $168.8 million, down 3% from the prior year.

Strategy

Management is pivoting the company toward 'agentic digital experiences,' integrating AI capabilities such as conversational interfaces, workflow automation, and avatar-based interactions. Key moves include the 2025 acquisition of eSelf AI and the April 2026 acquisition of PathFactory for content journey orchestration and engagement analytics. The company is expanding AI offerings with general availability of Agentic Avatar and its SDK, and is forming partnerships (e.g., Cornerstone, Descript) to extend reach. It is also pursuing ISO/IEC 42001 certification for responsible AI deployment to differentiate on trust and compliance.

Risks

• Macroeconomic pressure — Global economic volatility, inflation, and geopolitical conflicts could reduce customer spending, lengthen sales cycles, and hurt renewals and up-sales.
• Customer churn in M&T segment — Elevated gross churn in the Media & Telecom segment drove a 17% year-over-year revenue decline in Q1 2026, a trend that may persist.
• Competition and price pressure — Increased price-driven competition and bid processes may make it harder to retain customers and generate renewals.
• Integration and execution on AI transition — The strategic shift to agentic AI and recent acquisitions (eSelf AI, PathFactory) carry integration, execution, and adoption risks.

Outlook

Management does not provide numeric guidance in the provided excerpts, but stated Q1 2026 results exceeded the high end of guidance across revenue, adjusted EBITDA, and operating cash flow. They expect continued progress in the transition to agentic digital experiences, with early momentum in new offerings. The PathFactory acquisition closed on April 1, 2026, and is expected to strengthen the company's position in content intelligence and journey orchestration.