Kaltura Reports Q2 2025 Financial Results with $44.5M Revenue and Improved Net Loss

Kaltura, Inc. reported its financial results for the second quarter of 2025, revealing a total revenue of $44.5 million, a slight increase of 1% from $44.0 million in the same period last year. The company's subscription revenue rose to $42.4 million, up from $41.0 million, while professional services revenue decreased to $2.1 million from $3.0 million. The gross profit for the quarter was $31.2 million, representing a 9% increase compared to $28.7 million in the prior year. Despite the revenue growth, Kaltura recorded a net loss of $7.8 million, an improvement from the $10.0 million loss reported in the same quarter of 2024.

In terms of operational metrics, Kaltura's Annualized Recurring Revenue (ARR) reached $170.4 million, a 3% increase year-over-year. The company also reported a Net Dollar Retention Rate of 101%, indicating a positive trend in retaining and expanding revenue from existing customers. The total remaining performance obligations stood at $188.1 million, with 61% expected to be recognized as revenue over the next 12 months. The company’s workforce was reduced by approximately 10% as part of a reorganization plan aimed at increasing efficiency and productivity.

Kaltura's financial performance showed significant changes compared to the previous fiscal period, particularly in its cost structure. Total operating expenses decreased by 9% to $34.0 million from $37.2 million, driven by reductions in general and administrative expenses, which fell by 19% to $10.9 million. Research and development expenses also saw a slight decline of 4% to $11.6 million. The company attributed these reductions to improved operational efficiencies and a strategic focus on cost management.

Geographically, Kaltura's revenue distribution remained stable, with 52.9% of revenue generated from the U.S. and 39.1% from Europe, the Middle East, and Africa (EMEA). The company continues to focus on expanding its customer base across various sectors, including technology, education, and media and telecom. As of June 30, 2025, Kaltura had a total of 153.6 million shares outstanding, reflecting a slight increase from the previous year.

Looking ahead, Kaltura's management expressed optimism about future growth, particularly with the integration of generative AI technologies into its offerings. The company plans to continue investing in product development and expanding its market presence, despite the challenges posed by the current economic climate. Kaltura's strategic initiatives, including the recent workforce reduction and focus on enhancing its video solutions, are expected to position the company for improved performance in the coming quarters.