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Kaltura (KLTR) Stock Price Jumps On Margin Gains Despite Ongoing Losses

Simply Wall St · 2d ago

Kaltura stock just ripped 35% in a single session, yet the headline story is not about a sudden return to profit. The company is still reporting a loss, with Q2 net income excluding extra items at US$5.5 million in the red. What lit the fire under the share price is a software as a service style profile that now pairs mid single digit revenue growth with a sharp jump in adjusted EBITDA to US$5.9 million and record non GAAP gross margin of 75%.

Is Kaltura now a genuine bargain on 1.6x P/S, or is the market simply discounting three more years of forecast losses and modest 3.8% revenue growth too heavily? See how those trade offs line up in our valuation analysis for Kaltura

Q2 2026 Earnings Summary

  • Revenue, Q2 2026 vs. Q2 2025: US$46.894 million vs. US$44.462 million (up about 5%)
  • Net Loss, Q2 2026 vs. Q2 2025: US$5.544 million loss vs. US$7.75 million loss (loss narrowed about 28%)
  • Basic EPS, Q2 2026 vs. Q2 2025: US$0.037565 loss per share vs. US$0.050476 loss per share (per share loss improved about 26%)
  • Non GAAP Gross Margin, Q2 2026 vs. Q2 2025: 75% vs. 72% (record level, with margin up about 3 percentage points)

Prefer clear, visual charts over scrolling through dense earnings tables and adjusted EBITDA footnotes? Get a full picture of Kaltura, including how its valuation lines up against its recent revenue and margin profile, in the interactive company report for Kaltura.

NasdaqGS:KLTR Trailing 12-Month Revenue & Expenses Breakdown as at Aug 2026
NasdaqGS:KLTR Trailing 12-Month Revenue & Expenses Breakdown as at Aug 2026

Kaltura bull case leans on AI and margins

Bulls argue Kaltura can turn its AI push and high gross margins into a durable growth and profitability story. Q2 gives some backing. Subscription revenue grew faster than total revenue at US$45.6 million, which lines up with the focus on recurring SaaS. Non GAAP gross margin reached 75% and adjusted EBITDA margin moved to 12%, while the GAAP net loss narrowed to US$5.5 million. That suggests early operating leverage rather than a one off blip. AI traction is still small in dollars but concrete. There were 14 AI deals at roughly US$1 million total contract value and more than 500 AI opportunities in the pipeline across industries. ARR of US$184.6 million and RPO of US$164.3 million, with most expected to convert within a year, indicate some revenue visibility if Kaltura executes.

Bear case tests revenue mix and cash reality

The bear view is that Kaltura stays sub scale, burns cash, and leans on hype around AI while core markets stagnate. Q2 offers evidence on both sides. Net dollar retention sits at 96%, up slightly quarter on quarter but still below the 101% level a year ago, so expansion is not yet a clear growth engine. Media and Telecom revenue of US$10.1 million declined 10%, and professional services fell 40% to US$1.3 million as that business is wound down. Operating cash flow swung from US$2.7 million generated in Q2 2025 to US$2 million used, which keeps the cash balance of US$35.5 million in focus. AI bookings of about US$1 million and management’s expectation of a more meaningful ramp only in 2027 show the new products are still in an early proof phase.

Compare Kaltura’s higher gross margins, AI pipeline and still negative cash flow with what institutional analysts are expecting for the stock, then see whether the recent 35% price jump lines up with their targets in the consensus price target analysis for Kaltura.

Take Control Of Your Next Move

If Kaltura’s mix of higher gross margins, AI pipeline and recent price spike has your attention, register for free with Simply Wall St and add it to a Watchlist to track the share price against fair value and watch for a more attractive entry point. After you decide to take a position, keep your focus with the Portfolio Command Center so you only see the most important updates on Kaltura and your other holdings. For longer term context and ideas, compare your thesis with thousands of other investors through the Community. By surfacing potential catalysts and risks early, Simply Wall St helps you act with confidence and stay ahead of the market.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.