Total revenue for the quarter ended December 31, 2025, reached $45.5 million, essentially flat compared with $45.6 million in Q4 2024. Subscription revenue, the core of the business, was $42.7 million, a 2 % year‑over‑year decline from $43.4 million in the prior quarter, reflecting churn in the Media & Telecom segment. The decline in that segment offset a 4 % year‑over‑year increase in Enterprise, Education & Technology revenue, which grew to $2.8 million from $2.7 million in Q4 2024, keeping overall revenue near flat.
Adjusted EBITDA for the quarter was $6.3 million, a record for the company and the tenth consecutive quarter of profitability. Full‑year 2025 adjusted EBITDA climbed to $18.6 million, a 150 % year‑over‑year increase that far exceeded the company’s original guidance of 100 % growth. The jump was driven by disciplined cost management and a higher mix of high‑margin subscription contracts.
GAAP gross margin in Q4 2025 was 72 %, up from 71 % in Q4 2024, while the full‑year gross margin was 71 %, an improvement from 67 % in 2024. The margin expansion reflects a shift toward higher‑margin subscription revenue and ongoing reductions in operating expenses as a percentage of revenue.
Segment analysis shows Enterprise, Education & Technology revenue grew 4 % year‑over‑year to $2.8 million, whereas Media & Telecom revenue fell 7 % to $1.9 million, largely due to churn. Annualized recurring revenue declined 3 % year‑over‑year to $173.9 million, and net dollar retention in Q4 was 97 %, down from 103 % in Q4 2024, indicating pressure on customer expansion and retention.
The company completed its acquisition of eSelf.ai, a leader in AI avatar and multimodal conversation technology, and announced a definitive agreement to acquire PathFactory, a provider of AI‑driven content intelligence and journey orchestration. The acquisitions are intended to expand Kaltura’s agentic digital experience platform and accelerate its AI‑powered transformation strategy, adding new revenue streams and shortening sales cycles in the enterprise video market.
Management highlighted the results as evidence of operational momentum. “We ended 2025 with strong operational momentum and efficiency, achieving the highest level of new bookings and gross retention in the year and record Adjusted EBITDA profitability, while making a meaningful step forward in our long‑planned evolution from providing a video platform to powering rich, agentic digital experiences,” said CEO Ron Yekutiel. He added, “In the fourth quarter, we closed the acquisition of eSelf.ai, and earlier today, we announced that we entered into a definitive agreement to acquire PathFactory.” CFO Liron Sharon noted, “In the fourth quarter, we exceeded once again the midpoint of our guidance across subscription revenue, total revenue and adjusted EBITDA and delivered through disciplined execution, a record level of both adjusted EBITDA and non‑GAAP net profit.” The company remains cautious about the M&T segment churn and foreign‑exchange headwinds but remains confident that AI investments will strengthen its competitive moat.
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