Good day, everyone, and welcome to the Kaltura, Inc. Fourth Quarter and Full Year 2025 Earnings Call. All material contained in the webcast is the sole property and copyright of Kaltura, Inc., with all rights reserved. For opening remarks and introductions, I will now turn the call over to Erica L. Mannion at Sapphire Investor Relations. Please go ahead, Erica.

Thank you, operator, and good afternoon. I am joined by Ron Yekutiel, Kaltura, Inc.’s Co-Founder, Chairman, President, and Chief Executive Officer, and Liron Sharon, Executive Vice President of FP&A and Interim Principal Financial Officer. Ron will provide a summary of the results for the fourth quarter ended December 31, 2025, along with a business and strategy update. Liron will then review financial results for the quarter and full year 2025, as well as the company's outlook for the first quarter and full year 2026. We will then open the call for questions. Please note that this call will include forward-looking statements within the meaning of the federal securities laws, including, but not limited to, statements regarding Kaltura, Inc.’s expected future financial results, management's expectations, and plans for the business, including our pending acquisition of PathFactory and upcoming product launches, and our expectations around capabilities and benefits of our AI technologies. These statements are neither promises nor guarantees and involve risks and uncertainties that may cause actual results to differ materially from those discussed here. Important factors that could cause actual results to differ from forward-looking statements can be found in the Risk Factors section of Kaltura, Inc.’s Annual Report on Form 10-K for the year ended 12/31/2024 and other SEC filings, including our Annual Report on Form 10-K for the fiscal year ended 12/31/2025 to be filed with the SEC. Any forward-looking statements made during this conference call, including responses to your questions, are based on current expectations as of today, and Kaltura, Inc. assumes no obligation to update or revise them, whether as a result of new developments or otherwise, except as required by law. Please note, we will be discussing non-GAAP financial measures, adjusted EBITDA and adjusted EBITDA margin, during this call. For a reconciliation of adjusted EBITDA to the most directly comparable GAAP metric, please refer to our earnings release, which is available on our website at investors.kaltura.com. Now I would like to turn the call over to Ron.

Thank you, Erica, and thanks everyone for joining us on the call this afternoon. Today, we reported total revenue of $45,500,000 for Q4 2025 and subscription revenue of $42,700,000. We posted a record adjusted EBITDA of $6,300,000, representing our tenth consecutive quarter of adjusted EBITDA profitability. This brought full-year 2025 adjusted EBITDA to $18,600,000, a 150% year-over-year increase and materially above our original guidance of 100% growth. We are pleased with the continued improvement in our operating efficiency while advancing our long-term strategic positioning. New subscription bookings in the fourth quarter were at the highest level of 2025. We closed two seven-digit and fifteen six-digit new deals across industries including technology, financial services, healthcare, manufacturing, education, and media and telecom. We also closed seven AI-related deals for Content Lab and Genie, reflecting continued customer interest in our automation and personalization capabilities. Gross retention in the fourth quarter was also stronger than in any previous quarter in 2025, and we concluded the year as expected with the highest EENT growth retention level in five years. Our market leadership was once again recognized by tech analysts in the past quarter, this time by Frost & Sullivan in their 2025 Global Enterprise Video Platform Radar research, where they also cited our advanced AI capabilities and early move into agentic AI. In other exciting news, earlier today, we announced that we entered into a definitive agreement to acquire PathFactory. This acquisition remains subject to customary closing conditions. PathFactory is a provider of AI-driven content journey orchestration and conversation automation. The company helps enterprises understand user context and intent and automatically assemble and sequence personalized visual experiences designed to improve engagement and outcomes. PathFactory serves over 100 enterprise customers including global brands such as NVIDIA, Cisco, AVEVA, Palo Alto Networks, and LG. The company was…

Thanks, Ron, and hello to everyone on the call today. 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. We also posted, as forecasted, a sequential quarterly growth in our new subscription bookings and the highest gross retention level of 2025. Total revenue for the quarter ended 12/31/2025 was $45,500,000, up 4% sequentially, almost flat year over year, and above the midpoint of our guidance range of $45,000,000 to $45,700,000. Subscription revenue was $42,700,000, up 2% sequentially, down 2% year over year, and above the high end of our guidance range of $41,600,000 to $42,300,000. Professional services revenue was $2,900,000 for the quarter, up 31% year over year and consistent with our previously forecasted increase. On a segment basis, EENT total revenue increased 4% year over year in the fourth quarter, while M&T total revenue declined 12% year over year due to the elevated churn experienced earlier in the year, as discussed on prior calls. GAAP gross profit for the fourth quarter was $33,000,000, up 7% sequentially and 2% year over year. Gross margin was 72% compared to 71% in Q4 2024. Subscription gross margin was 78%, up from 77% in Q4 2024. Total operating expenses for the quarter were $32,100,000, compared to $36,100,000 in 2024, representing an 11% year-over-year reduction. Adjusted EBITDA for the quarter was a record $6,300,000, above the high end of our guidance range of $4,200,000 to $5,200,000. This represents a year-over-year increase of $3,600,000 compared to $2,700,000 in 2024, effectively more than doubling our adjusted EBITDA results year over year. GAAP net loss for the quarter was $600,000, or $0.00 per diluted share, representing a $6,000,000 year-over-year…

Thank you. We will now be conducting a question-and-answer session. You may press 2 if you would like to move your question from the queue. One moment please while we poll for questions. Our first question is coming from Matt Cavanagh from Needham & Company. Your line is now live.

Hi, thanks for the question, and congratulations on today’s results and announcements. Starting out with the PathFactory acquisition, could you expand a little bit about the sales synergy and cross-selling abilities you might expect to see now with both ESof and PathFactory under the platform, along with the core Kaltura, Inc. products?

Yeah, 100%. Love to do that, and thank you everybody for joining. So let us talk about PathFactory and the reasons for the acquisition. So we have been communicating to the market all along the need to evolve from video into a full CX, DX digital experience platform, where the market is bigger, the growth is faster, the multiples are higher. And we believe that the advent of AI is enabling that. The ability to create real-time videos and to turn that into conversational avatars, conversational videos, enables us to close the flywheel effect—create content on the fly, manage it on the fly, engage people on the fly, and move from static experiences into dynamic, engaging experiences. So that was the impetus of the general move, and we brought in ESof to double down on the ability to create these agents, immersive agents. As we have said, they have added the eyes and ears and mouth to our Genie and then, of course, the face. So why did we move on and do this additional move into PathFactory? PathFactory, from a product perspective, adds a few things. They add content intelligence, understanding the content itself; they enable us to add multiple assets and not just video assets. We can go beyond video—talk about documents and files—and connect it to third-party CRMs, marketing automation platforms, DAMs, etc. Very importantly, they have user analysis, user intent, user understanding. Our system has been basically a content management system for video, and now we have a user understanding. And that is key because we need to serve the right content to the right people at the right time in the right context. And so what they are able to do is to provide orchestration for user journeys. Right now, they have been identified as…

That is great, Ron. Thank you so much. Just touching on what you mentioned at the end there, on your 2026 outlook, could you talk a little bit more about the puts and takes that went into the assumptions there?

Yeah. Happy to do that. From a top line, bottom line, both—

Yes, that would be great.

Thank you. Okay.

So look. Generally speaking, we are looking at a year in which we expect gross retention to be better because we all knew media and telecom in the past year was not good—by the way, EENT was fine. But if we improve M&T, the gross retention is going to get better. Bookings, we believe, will pull up. Again, we are hoping for this to be as early as possible, but we are assuming it is going to be mostly in the second half of the year, in line with both the PathFactory synergies as well as with our own product releases. And while we have just started putting them out, we have some good pilots and excitement and interest, which we will share more about. We did say last time—we are seeing yet again now—we expect that to start pulling up more in the second half of the year. When you think about the revenue guidance that we have set, we are guiding at a similar kind of level that was expected, but we are hopefully coming at it very carefully, given the amount of changes that are happening so early in the year—following one acquisition, creating another one, yet to see exactly when it will close, hopefully quickly—and so we want to make sure that we are able to achieve the numbers that we were discussing. And I think at the end of the day, to your question about the pluses and minuses, I think that we are still seeing some of the headwinds come from M&T’s last year performance that are going to cause double-digit decline this year because of the delay between net bookings in M&T and how they impact revenue. We did say we expect this year for net bookings to start pulling up, for that…

Very perfect, thank you. And just lastly for me, could you share an updated view on how you are seeing the competitive landscape and how these recent acquisitions are further differentiating Kaltura, Inc. from your competitors?

By design, we are gradually moving and expanding—I would not say moving because we are both in the other market and the new market—into a larger and more exciting market. So let me be clear. In the world of pure video experiences, we had another research done in Q4 that had put us throughout the far-right corner as the best product in its case. We also think that the recent consolidation that has taken place in our traditional market would enable us to be even better competitively positioned, let alone with the rest of what we just said now. When we talk to our own customers, there is a lot of synergy with the new products that we offer now that our existing video competitors do not—around the agentic experiences, but also around content creation. And therefore, we think that given both their consolidation as well as the improved amount of offerings that we have, we could do better within our classic core market in selling more of our current product and adding—or not adding—some of these new things. But I think the bigger point here is that we are now gradually moving to the point that we are not a video technology company. Differentiated by the richness of the media that we provide—and video is a core key piece of it; it will continue to be a core key piece of it—it becomes more a means than an end, in the sense that what we offer is agentic digital experiences in real time that are able to deliver conversational agents that are performing tasks that otherwise just humans would do. And, again, I do not think they are going to replace them. I think they are going to augment them. I think they are going to boost them. I…

That sounds great. Well, thank you so much, Ron. That is it for me today.

Thank you so much, Matt.

Thank you. We have reached the end of our question-and-answer session. I will turn the floor back over for any further or closing comments.

So thank you all for joining today. First, to start a fresh year, thank you all for your continued support and trust, and I wish upon all of us a great fiscal year and a great year altogether filled with financial success, but also some more peace, hopefully around us and around the world. I am looking forward to following up with each of you that wants to reach out. Have a beautiful day. Take care. Bye-bye.

Thank you. That does conclude today's teleconference webcast. You may disconnect your lines at this time. Have a wonderful day. We thank you for your participation today. Good day everyone, and welcome to the Kaltura, Inc. Fourth Quarter and Full Year 2025 Earnings Call. All material contained in the webcast is the sole property and copyright of Kaltura, Inc., with all rights reserved. For opening remarks and introductions, I am now going to turn the call over to Erica L. Mannion at Sapphire Investor Relations. Please go ahead, Erica.

Thank you, operator, and good afternoon. I am joined by Ron Yekutiel, Kaltura, Inc.’s Co-Founder, Chairman, President, and Chief Executive Officer, and Liron Sharon, Executive Vice President of FP&A and Interim Principal Financial Officer. Ron will provide a summary of the results for the fourth quarter ended 12/31/2025, along with a business and strategy update. Liron will then review financial results for the quarter and full year 2025, as well as the company's outlook for the first quarter and full year 2026. We will then open the call for questions. Please note that this call will include forward-looking statements within the meaning of the federal securities laws, including, but not limited to, statements regarding Kaltura, Inc.’s expected future financial results, management's expectations, and plans for the business, including our pending acquisition of PathFactory and upcoming product launches, and our expectations around capabilities and benefits of our AI technologies. These statements are neither promises nor guarantees and involve risks and uncertainties that may cause actual results to differ materially from those discussed here. Important factors that could cause actual results to differ from forward-looking statements can be found in the Risk Factors section of Kaltura, Inc.’s Annual Report on Form 10-K for the year ended 12/31/2024 and other SEC filings, including our Annual Report on Form 10-K for the fiscal year ended 12/31/2025 to be filed with the SEC. Any forward-looking statements made during this conference call, including responses to your questions, are based on current expectations as of today, and Kaltura, Inc. assumes no obligation to update or revise them, whether as a result of new developments or otherwise, except as required by law. Please note, we will be discussing non-GAAP financial measures, adjusted EBITDA and adjusted EBITDA margin, during this call. For a reconciliation of adjusted EBITDA to the most directly comparable GAAP metric, please refer to our earnings release, which is available on our website at investors.kaltura.com. Now I would like to turn the call over to Ron.

Thank you, Erica, and thanks everyone for joining us on the call this afternoon. Today, we reported total revenue of $45,500,000 for Q4 2025, and subscription revenue of $42,700,000. We posted a record adjusted EBITDA of $6,300,000, representing our tenth consecutive quarter of adjusted EBITDA profitability. This brought full-year 2025 adjusted EBITDA to $18,600,000, a 150% year-over-year increase and materially above our original guidance of 100% growth. We are pleased with the continued improvement in our operating efficiency while advancing our long-term strategic positioning. New subscription bookings in the fourth quarter were at the highest level of 2025. We closed two seven-digit and fifteen six-digit new deals across industries including technology, financial services, healthcare, manufacturing, education, and media and telecom. We also closed seven AI-related deals for Content Lab and Genie, reflecting continued customer interest in our automation and personalization capabilities. Gross retention in the fourth quarter was also stronger than in any previous quarter in 2025, and we concluded the year as expected with the highest EENT growth retention level in five years. Our market leadership was once again recognized by tech analysts in the past quarter, this time by Frost & Sullivan in their 2025 Global Enterprise Video Platform Radar research, where they also cited our advanced AI capabilities and early move into agentic AI. In other exciting news, earlier today, we announced that we entered into a definitive agreement to acquire PathFactory. This acquisition remains subject to customary closing conditions. PathFactory is a provider of AI-driven content journey orchestration and conversation automation. The company helps enterprises understand user context and intent and automatically assemble and sequence personalized visual experiences designed to improve engagement and outcomes. PathFactory serves over 100 enterprise customers including global brands such as NVIDIA, Cisco, AVEVA, Palo Alto Networks, and LG. The company was…

Thanks, Ron, and hello to everyone on the call today. 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. We also posted, as forecasted, a sequential quarterly growth in our new subscription bookings and the highest gross retention level of 2025. Total revenue for the quarter ended 12/31/2025 was $45,500,000, up 4% sequentially, almost flat year over year, and above the midpoint of our guidance range of $45,000,000 to $45,700,000. Subscription revenue was $42,700,000, up 2% sequentially, down 2% year over year, and above the high end of our guidance range of $41,600,000 to $42,300,000. Professional services revenue was $2,900,000 for the quarter, up 31% year over year and consistent with our previously forecasted increase. On a segment basis, EENT total revenue increased 4% year over year in the fourth quarter, while M&T total revenue declined 12% year over year due to the elevated churn experienced earlier in the year as discussed on prior calls. GAAP gross profit for the fourth quarter was $33,000,000, up 7% sequentially and 2% year over year. Gross margin was 72% compared to 71% in Q4 2024. Subscription gross margin was 78%, up from 77% in Q4 2024. Total operating expenses for the quarter were $32,100,000, compared to $36,100,000 in 2024, representing an 11% year-over-year reduction. Adjusted EBITDA for the quarter was a record $6,300,000, above the high end of our guidance range of $4,200,000 to $5,200,000. This represents a year-over-year increase of $3,600,000 compared to $2,700,000 in 2024, effectively more than doubling our adjusted EBITDA results year over year. GAAP net loss for the quarter was $600,000, or $0.00 per diluted share, representing a $6,000,000 year-over-year…

Thank you. We will now be conducting a question-and-answer session. You may press 2 if you would like to move your question from the queue. One moment please while we poll for questions. Our first question is coming from Matt Cavanagh from Needham & Company. Your line is now live.

Hi. Thanks for the question, and congratulations on today’s results and announcements. Starting out with the PathFactory acquisition, could you expand a little bit about the sales synergy and cross-selling abilities you might expect to see now with both ESof and PathFactory under the platform, along with the core Kaltura, Inc. products?

Yeah, 100%. Love to do that, and thank you everybody for joining. So let us talk about PathFactory and the reasons for the acquisition. So we have been communicating to the market all along the need to evolve from video into a full CX, EX, DX digital experience platform, where the market is bigger, the growth is faster, the multiples are higher. And we believe that the advent of AI is enabling that. The ability to create real-time videos and to turn that into avatars, conversational videos, enables us to close the flywheel effect—create content on the fly, manage it on the fly, engage people on the fly, and move from static experiences into dynamic, engaging experiences. So that was the impetus of the general move, and we have brought in ESof to double down the ability to create these agents, immersive agents. As we have said, they have added the eyes and ears and mouth to our Genie and then, of course, the face. So why did we move on and do this additional move into PathFactory? PathFactory, from a product perspective, adds a few things. They add content intelligence, understanding the content itself; then they are enabling us to add multiple assets and not just video assets. So we can go beyond video—talk about documents and files—and connect it to third-party CRMs, marketing automation platforms, DAMs, etc. Very importantly, they have user analysis, user intent, user understanding. We—our system—had been basically a content management system for video; now we have a user understanding. And that is key because we need to serve the right content to the right people at the right time in the right context. And so what they are able to do is to provide orchestration for user journeys. Right now, they have been identified…

That is great, Ron. Thank you so much. Just, yeah, touching on what you have mentioned at the end there, on your 2026 outlook, could you talk a little bit more about the puts and takes that went into the assumptions there?

Yeah. Happy to do that. Yeah. From a top line, bottom line, both.

Yes. That would be great.

Thank you. Okay. So look.

For generally speaking, we are looking at a year in which we expect gross retention to be better because we all knew media and telecom in the past year was not good. By the way, EENT was fine. But if we improve M&T, the gross retention is going to get better. Bookings, we believe, will pull up. Again, we are hoping for this to be as early as possible, but we are assuming it is going to be mostly in the second half of the year, in line with both PathFactory synergies as well as with our own product releases. And while we have just started putting them out, we have some good pilots and excitement and interest, which we will share more about. We did say last time—we are seeing yet again now—we expect that to start pulling up more in the second half of the year. When you think about the revenue guidance that we have set, we are guiding at a similar kind of level that was expected, but we are hopefully coming at it very carefully given the amount of changes that are happening so early in the year—following one acquisition, creating another one, yet to see exactly when it will close, hopefully quickly—and so we want to make sure that we are able to achieve the numbers that we were discussing. And I think at the end of the day, to your question about the pluses and minuses, I think that we are still seeing some of the headwinds come from M&T’s last year performance that are going to cause double-digit decline this year because of the delay between net bookings in M&T and how they impact revenue. We did say we expect this year for net bookings to start pulling up, for that to…

Very perfect. Thank you. And just lastly from me, could you share an updated view on how you are seeing the competitive landscape and how these recent acquisitions are further differentiating Kaltura, Inc. from your competitors?

We are moving—gradually moving and expanding, I would not say moving because we are both in the other market and the new market—into a larger and more exciting market. So let me be clear. In the world of pure video experiences, we had another research done in Q4 that had put us throughout the far-right corner as the best product in its case. We also think that the recent consolidation that has taken place in our traditional market would enable us to be even better competitively positioned, let alone with the rest of what we just said now. When we talk to our own customers, there is a lot of synergy with the new products that we offer now that our existing video vendors—competitors—do not, around the agentic experiences but also around content creation. And therefore, we think that given both their consolidation as well as the improved amount of offerings that we have, we could do better within our classic core market in selling more of our current product and adding—or not adding—some of these new things. But I think the bigger point here is that we are now gradually moving to the point that we are not a video technology company. We offer agentic digital experiences in real time that are able to deliver conversational agents that are performing tasks that otherwise just humans would do. And, again, I do not think they are going to replace them. I think they are going to augment them. I think they are going to boost them. I think they are going to support them. This is something completely different. Now, when we reach out to our own customers, there is a lot of excitement—much more than previously—because video had been relatively similar in recent years, and this is at the…

That sounds great. Well, thank you so much, Ron. That is it for me.

Thank you so much, Matt.

Thank you. We have reached the end of our question-and-answer session. I would like to turn the floor back over for any further or closing comments.

So thank you all for joining today. First, start of a fresh year, thank you all for your continued support and trust, and I wish upon all of us a great fiscal year and a great year altogether filled with financial success, but also some more peace, hopefully around us and around the world. I am looking forward to following up with each of you that wants to reach out. Have a beautiful day. Take care. Bye-bye.

Thank you. That does conclude today's teleconference webcast. You may disconnect your lines at this time and have a wonderful day. We thank you for your participation today.