Kaltura (KLTR) investor relations material

Executive summary

• Q1 2026 revenue was $44.6M, down 5% year-over-year, but exceeded guidance, with subscription revenue at $43.2M and adjusted EBITDA at $5.7M, the highest Q1 result to date.

• Achieved first-ever positive Q1 operating cash flow of $0.7M and improved gross margin to 72% from 70% year-over-year.

• Strategic transition underway, integrating eSelf.AI and PathFactory acquisitions to expand AI and content orchestration capabilities.

• Early customer engagement and pipeline activity show momentum, with new AI-powered product revenue expected to ramp in H2 2026 and 2027.

• Net Dollar Retention Rate declined to 95% from 107% year-over-year, reflecting churn in the Media & Telecom segment.

Financial highlights

• Total revenue: $44.6M (down 5% YoY), subscription revenue: $43.2M (down 4% YoY), both above guidance.

• Professional services revenue: $1.4M (down 31% YoY); GAAP gross profit: $32.1M; gross margin: 72% (up from 70% YoY).

• Adjusted EBITDA: $5.7M (up from $4.1M YoY); margin: 13% (up 400 bps YoY).

• GAAP net loss: $3.8M ($0.03/share); Non-GAAP net profit: $2.1M ($0.01/share).

• Cash and equivalents: $61.8M at quarter end; positive operating cash flow of $0.7M.

Outlook and guidance

• Q2 2026: Subscription revenue $43.3M–$44.1M (up 2–4% YoY); total revenue $45.2M–$46M (up 2–3% YoY); adjusted EBITDA $2M–$3M.

• FY 2026: Subscription revenue $174.5M–$176.7M (up 1–3% YoY); total revenue $182.6M–$184.8M (up 1–2% YoY); adjusted EBITDA $13.8M–$15.2M.

• Management expects gradual improvement in gross margins for both segments, driven by efficiencies and product mix.

• Guidance reflects recurring business, FX trends, and investments in AI integration.

• Liquidity is sufficient for at least the next 12 months, with flexibility for further investments or acquisitions.