Kaltura's Q2 2025 financial report highlighted that the company's revenue and profits exceeded expectations, the company announced on Monday.
Kaltura is a leading cloud platform specializing in AI-powered video experiences with offices in Tel Aviv, New York City, London, and Singapore, according to the company's announcement and website.
Despite these increases, the company is planning to undertake an organizational restructuring in order to enhance the company's operational efficiency, which will include a 10% reduction in its global workforce.
This will include letting go of approximately 30 employees in Israel, in a move that the company estimates will yield savings of $8.5 million annually, after a one-time restructuring cost of $700,000 in the company's Q3 accounts.
Discussing the restructuring, Ron Yekutiel, CEO, Chairman, and Co-Founder of Kaltura, stated: “Our new unified teams will significantly accelerate our development, especially in AI-powered SaaS solutions targeted at high-growth sectors such as financial services, healthcare, technology, and education. We’re already seeing the benefits of our investments in advanced automation and AI-driven productivity."
What are the figures recorded in Q2?
Kaltura's revenue in Q2 reached $44.5m., which represents a 1% increase compared to the same period in 2024, the company announced. Their subscription revenue also grew by 3% to $42.4m., with annual recurring revenue (ARR) rising to $170.4m.
In addition, Kaltura's Non-GAAP gross profit reached $31.3m., representing a gross profit margin of 70%, the company confirmed. Adjusted operating profit climbed by 600% compared to Q2 2024, reaching $3m. as compared to $500,000 during the same period last year. Further, the company's EBITDA reached $4.1m., which the company states is the "highest level in several quarters."
Due to these increases, Kaltura raised its annual adjusted operating profit forecast for 2025 due to strong confidence in its growth trajectory.
"We exceeded all forecast ranges for the quarter, with the strongest operating cash flow since 2020," Yekutiel said.