Kaltura beats Q2 revenue expectations, initiates reorganization plan

Kaltura

07/08/2025 12:51

Overview

Kaltura Q2 revenue rises 1% yr/yr, beating analyst expectations, per LSEG data

Adjusted net profit for Q2 beats consensus, marking a turnaround from last year

Co initiates reorganization plan, including 10% workforce reduction for efficiency

Outlook

Kaltura expects Q3 subscription revenue between $40.8 mln and $41.6 mln

Company projects Q3 total revenue between $42.8 mln and $43.6 mln

Kaltura anticipates full-year subscription revenue between $170.9 mln and $172.9 mln

Company forecasts full-year adjusted EBITDA between $14.5 mln and $16.0 mln

Result Drivers

AI PRODUCTS - Initial sales of AI products contributed to sequential increase in new bookings, per CEO Ron Yekutiel

REORGANIZATION PLAN - Co initiated a reorganization plan, including a 10% workforce reduction, to enhance efficiency and productivity, with expected cost savings of $2.6 mln for the remainder of 2025

GROSS MARGIN IMPROVEMENT - GAAP gross margin improved to 70% from 65% in Q2 2024, driven by improved operational efficiencies

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$44.50 mln
$43.70 mln (5 Analysts)
Q2 Adjusted Net Income
Beat
$2.50 mln
-$925,000 (4 Analysts)
Q2 Net Income
-$7.80 mln
Q2 Adjusted Operating Income
Beat
$3 mln
$950,000 (4 Analysts)
Q2 Adjusted Gross Margin
70.0%
Q2 Operating Income
-$2.80 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy."

Wall Street's median 12-month price target for Kaltura Inc is $3.25, about 47.4% above its August 6 closing price of $1.71

The stock recently traded at 38 times the next 12-month earnings vs. a P/E of 57 three months ago

Press Release: ID:nGNX6V4x18

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)