Kaltura Posts $3.1 Million Non-GAAP Profit in Third Quarter
Key Facts
Kaltura reported results on November 9 for the quarter ended September 30, 2026, posting revenue of $47.3 million and non-GAAP net income of $3.1 million, or $0.02 per diluted share. Revenue grew 8% from the same period in 2025, when it was $43.9 million, according to the company. Subscription revenue was $45.9 million, up 9% from $42.0 million a year earlier. Non-GAAP net income rose from $2.0 million, or $0.01 per diluted share, in the third quarter of 2025. Analyst estimates and the extent of any beat could not be verified.
Segment results showed divergent growth paths: enterprise, education and technology revenue rose 14% year over year in the third quarter, while media and telecom revenue fell 10%. Kaltura attributed the latter segment’s decline mainly to higher customer churn during 2025. Meanwhile, annual recurring revenue was $184.7 million, up 9% from $169.1 million in the third quarter last year. Growth in subscription and recurring revenue points to expansion in subscription-linked revenue alongside continued pressure on media and telecom activity. GAAP gross profit was $33.9 million, with a 72% margin, compared with $30.7 million and a 70% margin a year earlier.
The company said adjusted EBITDA rose 45% year over year to $6.0 million, its highest level for a third quarter up to that point. On a separate cash measure, net cash generated from operating activities was $7.6 million, compared with $9.3 million in the same period of 2025. Cash, cash equivalents and marketable securities totaled $41.0 million at the end of the third quarter. Chief Executive Ron Yekutiel also said new subscription bookings “more than doubled compared with the previous quarter,” describing the quarter as the strongest since 2024. He added that performance included three new seven-figure deals.
For context on the quarter-to-quarter comparison, Kaltura reported total revenue of $46.9 million in the second quarter of 2026, up 5% year over year, and subscription revenue of $45.6 million, up 8%. In the third quarter, total revenue reached $47.3 million and subscription revenue rose to $45.9 million. Year over year, total revenue growth accelerated from 5% in the second quarter to 8% in the third, while subscription growth increased from 8% to 9%. Kaltura said it raised its annual outlook for subscription revenue, total revenue and adjusted EBITDA for the third time during 2026. It said the updated forecast ranges represent record annual levels.
For total revenue in fiscal 2026, the company raised its range to $185.0–$185.7 million, compared with a previous range of $183.0 to $185.0 million announced in August. For the fourth quarter of 2026, Kaltura expects total revenue of $46.2 to $46.9 million and adjusted EBITDA of $2.0 to $3.0 million. The company is scheduled to hold its earnings call on November 9 to review third-quarter results and discuss its financial outlook. That places the fourth-quarter forecast and third annual outlook increase among the next milestones the company announced for investors, after it recorded year-over-year growth in revenue and subscriptions in the third quarter.