Kaltura, Inc.

Good day, everyone, and welcome to the Kaltura fourth quarter and full year 2025 earnings call. All material contained in the webcast is the sole property and copyright of Kaltura with all rights reserved. For opening remarks and introductions, I'll now turn the call over to Erica Mannion at Sapphire Investor Relations. Please go ahead, Erica.

Thank you, Operator, and good afternoon. I am joined by Ron Yucatel. Kaltura's co-founder, chairman, president, and chief executive officer, and LaRon 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. Leron 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's expected future financial results, management's expectations and plans for the business, including our pending acquisition of Path Factory, and upcoming product launches and our expectations around capabilities and benefits of our AI technologies. These statements don't need the 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 Caltura's annual report on Form 10-K for the year ended December 31, 2024, and other SEC filings, including our annual report on Form 10-K for the fiscal year ended December 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 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 reconciliation of adjusted EBITDA to the most directly comparable GAAP metric, please refer to our earnings release, which is available on our website at www.investors.caltura.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 $45.5 million for the fourth quarter of 2025 and subscription revenue of $42.7 million. We posted a record adjusted EBITDA of $6.3 million, representing our 10th consecutive quarter of adjusted EBITDA profitability. This brought full-year 2025 adjusted EBITDA to $18.6 million, a 150% year-over-year increase and materially above our original guidance of 100% growth. We're 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 15 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. Course 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 ENT growth retention level in five years. Our market leadership was once again recognized by tech analysts in the passing quarter, this time by Frost and Sullivan in their 2025 Global Enterprise Video Platform market radar research, where they also cited our advanced AI capabilities in early move into agentic AI. In other exciting news, earlier today, we announced that we entered into a definitive agreement to acquire PaaS Factory. This acquisition remains subject to customary closing conditions. PaaS Factory 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 digital experiences designed to improve engagement and outcomes. Bus Factory serves over 100 enterprise customers, including global brands such as NVIDIA, Cisco, Aviva, Palo Alto Networks, and LG. The company was recently recognized as a leader in the Q4 2025 Forrester Wave Report on Conversation Automation Solutions for B2B. The report acknowledged Bus Factory's unique approach of leveraging generative AI and content intelligence to help B2B go-to-market teams create personalized self-service B2B buying journeys. The other recognized leaders in this wave were Qualified, that was recently acquired by Salesforce for over $1 billion, and Sixth Sense, whose last funding round was at a reported valuation of over $5 billion. PathFactory has an important layer of agentic journey-level intelligence to our platform, while Kaltura, has long-powered rich media creation, management, and experience delivery at enterprise scale. And eSelf AI, which we acquired last quarter, enriched our real-time conversational capabilities and content creation with avatars. PathFactory will bring the ability to understand what each user is trying to accomplish and orchestrate the most impactful personalized sequence of content delivery and interaction accordingly. To date, The factory's primary applicability has been an improving B2B top-of-funnel marketing conversion by supporting account-based marketing motions, ABM, with insights, personalized customer microsites, and chat agents. We plan to continue supporting this valuable use case and to gradually expand its applicability to additional B2B and B2C customer experience use cases, including bottom-of-funnel marketing, sales enablement, customer and partner enablement, onboarding and support, as well as employee and learner experiences, such as internal communications, training, and education. Organizations are producing more content, engaging users across more channels, and particularly in the age of agentic AI, are increasingly seeking systems of engagement that move beyond static one-size-fits-all digital experiences, to deliver personalized, contextual, interactive, and conversational experiences at scale. Our expanded platform is well aligned with this shift. With a combination of Kaltura, eSelf, and PathFactory, we believe we will have in place the required pillars to complete our long-discussed multi-year evolution from a video platform to an agentic visual experience platform that specializes in harnessing AI-powered video and rich media to drive engagement and business outcomes. Within this expanded platform, Kaltura provides the video-enriched media foundation, creation, management, governance, and delivery at enterprise scale, including AI-based rich media repurposing and personalized conversation delivery through Kaltura Genie, eSELF added avatar-based content creation in real-time, multi-model, photorealistic conversational interaction with Genie in over 30 languages, including screen and camera comprehension. And PathFactory will boost Genie's grains by adding to it agentic journey intelligence, understanding user context and intent, and orchestrating personalized engagement paths. Our combined platform, therefore, evolves beyond serving as the backbone of video experiences to becoming a comprehensive enabler of rich, multi-model, agentic, conversational digital experiences that are hyper-personalized, contextual, outcome-oriented, and deeply integrated into enterprise workflows. Following the eself and contemplated pathfactory acquisitions, two very meaningful steps in our long-planned evolution to become a full AI-infused, agentic digital experience platform We intend to formally update our mission statement from powering any video experiences for any organization to powering rich, agentic digital experiences across organizational journeys for customers, employees, learners, and audiences. PathFactory is a revenue-generating business with a current annual revenue run rate in the teens of millions. and a professional team across North America and India. In addition to them meaningfully strengthening our strategic evolution into an agentic digital experience platform, we believe there is an immediate opportunity of cross-selling our respective offerings to our customer bases and great value in expanding our enterprise customer footprint and employee talent base in the marketing technology and customer experience domains. Under the terms of the acquisition agreement and subject to customary closing conditions, we expect to acquire PathFactory for approximately $22 million in cash. We believe we have sufficient cash available to execute on our goals, and we believe we'll continue generating cash in 2026 and beyond. For further details, please refer to today's acquisition press release. Moving to the product front, we announced last week the general availability of our agentic avatars. Since acquiring ESOF, we have migrated their code base to Kultura's enterprise-grade infrastructure and further strengthened its robustness, scalability, and security. We have continued enhancing the core AI models and integrating the conversational avatars with Kultura's Genie product, enabling both to operate across our experienced products and embeddable video players. This allows interactive, contextual conversations to occur anywhere using text, video snippets, flashcards, and avatars. Throughout 2026, we plan to continue enhancing avatar quality, enriching the generative content that can be presented during conversations, expanding integrations with third-party systems, and strengthening our agentic brain through deeper understanding of user context and intent powered by PathFactory technology. We also announced last week the general availability of our avatar SDK, which enables ISVs, system integrators, and in-house development groups to leverage our text-to-video and audio-to-video models and connect them to their own RAG pipelines, agentic logic, databases, and enterprise systems. Over the course of the year, we plan to expand the SDK with additional APIs and developer tools. Today, we are pleased to announce the launch of a beta program for our Avatar Video Creation Studio. This solution enables customers to easily create avatar-based and avatar-narrated videos on demand at scale. These pre-recorded avatars can also come to life in real time upon request, transforming into interactive conversational avatars that respond to users' questions about the recorded video-related topics. Customers can apply for the beta program through our website. We plan to make this offering generally available in the upcoming second quarter. For all three of these new products, also developing self-serve versions targeting smaller organizations, departments within larger enterprises, content creators, and individual developers. We believe these versions will also support an expansion of our channel of sales. In parallel with the initial commercialization of these offerings, our sales team has been trained on the new go-to-market motions and are already in discussions with various prospective launch partners spanning across a wide array of industries and use cases. including agentic marketing, sales, customer care, field services, training, teaching, internal communications, and recruiting. Since the commercial activity associated with these new offerings did not impact the fourth quarter of 2025, which we are reporting today, we will share more concrete information about these activities in our next earning call. As a reminder, we expect to begin recognizing revenue from these products in the second half of the year. In 2026, we believe AI is reshaping the market in ways that structurally favor our platform. AI strengthens each layer of what we do. First, we are deeply embedded in mission-critical enterprise workflows and business processes across marketing, training, compliance, education, communications, and media delivery. These are governed, integrated, and operationally critical environments with high switching costs. AI enhances these workflows by making them more intelligent and automated. It does not replace them. Second, we manage large volumes of rich media assets, metadata, and behavioral engagement data for our customers that carry a high migration cost. With the addition of PathFactory, we expect to further expand our ability to generate insights and understand user context and intent. In the age of AI, Longitudinal data and intent intelligence become increasingly valuable assets that enable more precise personalization and orchestration and that are harder to switch away from and replicate. Third, AI expands how we create and monetize value. Personalized content generation, dynamic journey orchestration, and conversational engagement lend themselves naturally to usage-based and outcome-oriented pricing models, not just seat-based pricing, and platforms that help drive meaningful engagement can benefit from organic growth and high net dollar retention. Fourth, AI is synergistic across all layers of our platform, content creation, content management, and intelligence and agentic experiences. Insights generated in one layer can power new content, new experiences, and new conversations in another. This creates a flywheel effect. Existing data fuels richer experiences and real-time content generation. Those experiences generate new behavioral insights, and those insights further enhance personalization and automation. And finally, because we provide a unified digital experience platform that consolidates multiple use cases and buyers rather than a single point solution, AI amplifies our platform advantage rather than fragmenting it. In short, we believe AI is a structural tailwind for our strategy and an amplifier of our competitive moat as a provider of rich, personalized, agentic digital experiences at scale. With that foundation in place, let me outline our anticipated growth drivers for the year ahead, fueling what, how, and to whom we sell. First, platform expansion. The integration of rich media, conversational AI, and journey orchestration into a unified, agentic digital experience platform positioned to expand our addressable markets and strengthens our competitive positioning. We believe we're differentiated by the breadth and depth of our content creation, management, and agentic experience offering, by our API driven flexibility, by our ability to consolidate multiple use cases on one platform, and by our proven track record of powering complex enterprise scale deployments. Second, broader applicability. Our expanded platform addresses a significantly wider range of use cases across customers, employees, learners, and audiences. Many of these use cases are more mission critical and can generate tangible ROI through cost and labor efficiencies and revenue uplifts. Examples include performing and supporting tasks and roles of marketeers, sellers, customer support representatives, field agents, recruiters, educators, health professionals, and financial advisors. In certain cases, This also expands our reach into industries where we have historically been less active. Third, installed-based upsell. Our base of over 800 large enterprise customers represents a substantial cross-sell and upsell opportunity. Our new capabilities leverage the deep workflow integrations, enterprise trust, and significant content repositories we already manage for these organizations, creating meaningful expansion potential. Fourth, new customer acquisitions. Agentic conversational experiences represent a fast emerging category generating strong market interest. Unlike the more mature video segment where vendor consolidation limited new vendor adoption, this evolving category creates opportunities to engage new prospects. To support these opportunities, we are increasing our outbound go-to-market efforts. Fifth, channel endowed market expansion. Our new content creation and agentic offerings are well-suited for self-serve PLG models targeting SMEs, SMBs, enterprise departments, and developers, as well as expanded channel partnerships, including co-sellers, resellers, OEMs, and marketplace partners. We plan to grow these motions throughout the year. Sixth, pathfactory cross-sells. We believe there are meaningful opportunities to introduce broader cultural capabilities into pathfactory's customer base of over 100 enterprises. while also enhancing the value delivered to our existing customers through journey orchestration and intent intelligence. Seventh, competitive landscape. We believe recent consolidation activity in the video market may create additional displacement opportunities, positioning Kaltura as a stable, innovation-driven alternative in both the traditional video and emerging agentic engagement categories. Lastly, eighth. While M&T revenue in 2026 is expected to still decline year over year because of last year's heightened churn, we believe that M&T net bookings will improve this year compared to last, fueled by both lower growth churn and higher new bookings. We believe this will generate sequential quarterly M&T revenue growth in 2027. In summary, 2025 was a year of operational strengthening and strategic transformation. We materially improved our adjusted EBITDA results while working on two strategic acquisitions that we believe significantly expand our long-term opportunity. We're entering 2026 with an evolved mission and are excited by the expanded product suite and broader market opportunity across use cases, industries, and customer segments that our two complementary strategic acquisitions will bring to the table. We plan to deepen engagement with existing customers, expand into new accounts, extend our reach down market, and leverage channel partnerships, all while strengthening our competitive positioning in our traditional video markets, including regrowing our M&T business. We see 2026 as a transition year, and we expect revenue contribution from our new portfolio to begin in the second half of the year with a stronger impact in 2027. We are tapering our adjusted EBITDA profitability and cash flow from operation goals for this year in support of acquisition costs and integration efforts and related growth investments, though bulk metrics are forecasted to remain in the teens, and in light of higher FX headwinds that are affecting our operating costs. We continue to be committed to carefully balancing growth and profitability to maximize long-term shareholder value. To that end, we are reiterating our goal of achieving double-digit revenue growth in a rule of 30 profile by 2028 or sooner. Lastly, we continue to progress in our CFO search and succession process and will provide updates as appropriate. In the meantime, our finance organization continues to operate under the strong leadership of our Executive Vice President of Finance and Interim Principal Accounting Officer, Mrs. Claire Rothstein. and our Executive Vice President of FP&A and Interim Principal Financial Officer, Mrs. Liron Sharon. I would like to thank both for their leadership. With that, I will turn it over to Liron to review our financial results in greater detail and discuss our 2026 guidance. Liron.