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DATE

Monday, May 11, 2026 at 4:30 p.m. ET

Call participants

  • Chief Executive Officer — Ron Yekutiel
  • Chief Financial Officer — Liron Sharon
  • Moderator — Erica L. Mannion

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Takeaways

  • Total revenue -- $44.6 million, a 5% decrease year over year and a 2% decline sequentially, surpassing the top of guidance range.
  • Subscription revenue -- $43.2 million, down 4% year over year, up 1% sequentially, also above the high end of guidance.
  • Professional services revenue -- $1.4 million, a 31% decline year over year and 50% decrease sequentially, reflecting the shift to subscription focus.
  • Adjusted EBITDA -- $5.7 million, a 37% year-over-year increase, establishing a first-quarter record for the company and exceeding guidance.
  • Adjusted EBITDA margin -- 13%, up 400 basis points year over year.
  • GAAP gross margin -- 72%, a 200 basis point improvement over Q1 2025, driven by greater subscription mix.
  • GAAP operating expenses -- $33.3 million, down 3% year over year despite increased costs from the ESELF acquisition and FX headwinds.
  • GAAP net loss -- $3.8 million, or $0.03 per diluted share, primarily attributed to $3.8 million in non-cash stock compensation and $1.9 million for acquisition and strategic initiatives.
  • Non-GAAP net profit -- $2.1 million, or $0.01 per diluted share, up slightly from $2.0 million in the prior-year period.
  • Cash and equivalents -- $61.8 million at quarter-end, with positive operating cash flow of $0.7 million, representing the first positive Q1 operating cash flow in company history.
  • Annualized recurring revenue -- $168.8 million, flat sequentially and down 3% year over year.
  • Net dollar retention -- 95%, compared to 107% prior-year and 97% in the previous quarter, influenced by prior media and telecom churn.
  • Segment revenue: Education & Technology (E&T) -- $34.2 million total, down 1% year over year; $33.7 million subscription, flat year over year; $0.5 million professional services, down 42% year over year.
  • Segment revenue: Media & Telecom (M&T) -- $10.5 million total, down 17% year over year; $9.5 million subscription, down 16%; $1.0 million professional services, down 24% year over year.
  • Remaining performance obligations (RPO) -- $154.5 million, flat year over year, with 67% expected revenue recognition in the next 12 months.
  • New bookings -- Closed one seven-digit deal, fourteen six-digit deals, and three AI-related deals; majority of bookings came from customer base expansions.
  • Gross retention -- Highest level in the past five quarters.
  • AI capabilities expansion -- Announced general availability of conversational avatar technology and introduced developer integration tools; beta and general launch of Avatar video production studio occurred during and after the quarter.
  • AI certification -- Achieved ISO/IEC 42001 certification for artificial intelligence management systems.
  • Acquisition activity -- Completed PathFactory acquisition on April 1, 2026, post-quarter, following a definitive agreement signed in Q1.
  • Guidance: Q2 2026 -- Projected subscription revenue growth of 2%-4% to $43.3-$44.1 million; total revenue growth of 2%-3% to $45.2-$46.0 million; adjusted EBITDA of $2.0-$3.0 million.
  • Guidance: Full year 2026 -- Subscription revenue of $174.5-$176.7 million, up 1%-3%; total revenue of $182.6-$184.8 million, up 1%-2%; adjusted EBITDA of $13.8-$15.2 million.
  • Revenue outlook by segment -- E&T revenue is expected to grow year over year, aided by PathFactory; M&T revenue remains forecasted to decline due to prior churn but with improved new bookings and retention anticipated.

Summary

Kaltura (KLTR 1.45%) emphasized its transition toward an AI-powered digital experience platform, building on acquisitions and innovation in avatars and content intelligence. Management reported “encouraging early validation” across four core customer journeys—customer engagement, employee productivity, learner personalization, and audience interaction—citing tangible pipeline progress and a broadening buyer base. The company highlighted the general availability of its conversational avatar tools and the ISO/IEC 42001 AI management certification as milestones supporting enterprise adoption.

  • Management stated, “New logos included a global content delivery network, a leading healthcare system, two U.S. universities, and a major APAC broadcaster.”
  • CEO Yekutiel described “early signs of momentum in customer engagement and pipeline activities,” with revenue contribution from the new portfolio expected to begin in the second half and become “more meaningful” in 2027.
  • The company is hosting Kaltura Connect events featuring major enterprise participation—including AWS, Cisco, IBM, MetLife, Morgan Stanley, and Palo Alto Networks—to showcase product strategy and facilitate direct platform engagement.
  • AI technology adoption is accelerating, with proof-of-concept discussions and initial expansion focused on marketing, customer care, learning, and internal communications use cases.
  • Sales cycles for the expanded platform are characterized as “Not necessarily, but let us remember sales cycles have always been classic large enterprise sales cycles. Historically, media and telecom could have been a year and a half, and the classic enterprise sales cycle—think salesforce.com—is often many months. I do not think they are further elongated; they are typical long sales cycles,” with expectations of conversion beginning in the second half of 2026.
  • Third-party integration with Kaltura’s AI capabilities is supported by developer tools, enabling clients to embed company avatars and digital agents within proprietary operating environments.

Industry glossary

  • Agentic avatar: AI-powered digital persona capable of interactive, real-time or on-demand user engagement across customer, employee, learner, or audience journeys.
  • PathFactory: Recently acquired Kaltura platform for content intelligence and user journey orchestration, providing personalized digital experience delivery.
  • ContentLab: Kaltura’s content creation toolset, including AI-driven capabilities for rapid video and media asset production.
  • Genie: Kaltura AI solution used to transform and deliver interactive knowledge, support, or training experiences.
  • ESELF: Acquisition providing multimodal conversational avatar technology for real-time and on-demand enterprise interactions.
  • RPO (remaining performance obligations): The total value of contracted future revenues yet to be recognized by the company.
  • Annualized recurring revenue: Annualized value of subscription contracts as measured in a given period, used to track subscription business growth or contraction.
  • Net dollar retention (NDR): Percentage of recurring revenue retained from existing customers over a period, inclusive of upgrades, downgrades, and churn.

Full Conference Call Transcript

Ron will begin with a summary of the results for the first quarter ended 03/31/2026 and provide a business update. Liron will then review the financial results for 2026 in greater detail, followed by the company’s outlook for the second quarter and full year 2026.

Operator: We will then open the call for questions.

Erica L. Mannion: 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 execution on our strategic transition and upcoming product launches, integration and expected benefits of our recent acquisitions, trends in customer engagement, anticipated headwinds, and our expectations around capabilities and benefits of our products, including 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 fiscal year ended 12/31/2025 and other SEC filings. 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, including adjusted EBITDA, adjusted EBITDA margin, and non-GAAP gross margin during this call.

For a reconciliation of these measures to the most directly comparable GAAP metrics, 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.

Ron Yekutiel: Thank you, Erica, and thanks everyone for joining us today. We delivered a strong start to 2026, exceeding the high end of our guidance across revenue and adjusted EBITDA, and generating, for the first time in our history, positive cash flow from operations in a first quarter. Total revenue was $44.6 million, down 5% year-over-year. Subscription revenue was $43.2 million, down 4% year-over-year. Adjusted EBITDA was $5.7 million, up 37% year-over-year and our highest first quarter result to date. These results reflect continued operating discipline, improving retention trends, and steady progress as we execute on our strategic transition. New subscription bookings in the first quarter followed our typical seasonal pattern, with encouraging deal quality across both new logos and expansions.

We closed one seven-digit deal, fourteen six-digit deals, and three new AI-related deals. New logos included a global content delivery network, a leading healthcare system, two U.S. universities, and a major APAC broadcaster. As in prior quarters, the majority of bookings came from expansions within our existing enterprise customer base across technology, financial services, healthcare, education, and media. Gross retention improved to its highest level in the last five quarters. Net dollar retention continued to reflect the lagging impact of elevated media and telecom churn in 2025, which we expect to improve over the course of this year. During the quarter, we continued to expand our AI capabilities across both content creation and user engagement.

We announced the general availability of our conversational avatar technology along with developer tools that enable integration into enterprise workflows. We also launched a beta version and last week moved to general availability of our Avatar video production studio, which enables automated creation of avatar-based video content from text and other materials. These capabilities build on our existing AI tools such as ContentLab and Genie, extending them into more interactive and conversational use cases. Importantly, we also achieved ISO/IEC 42001 certification for artificial intelligence management systems during this quarter, reinforcing our commitment to responsible, enterprise-grade AI deployment. We also completed the acquisition of PathFactory on 04/01/2026 following the signing of the definitive agreement during the first quarter.

PathFactory adds content intelligence and journey orchestration built to enable enterprises to better understand user intent and dynamically deliver personalized digital experiences. Since closing, we have moved quickly to integrate teams and align product and go-to-market efforts. We are already jointly presenting our combined platform in the market and seeing encouraging early engagements. With the combination of Kaltura, Inc., ESELF, and PathFactory, we believe we now have the core building blocks to evolve from a video platform into an AI-powered, rich, agentic digital experience platform. Kaltura, Inc. provides enterprise-grade video experiences and rich media infrastructure. ESELF adds multimodal conversational avatar technology for agentic real-time and on-demand interactions. And PathFactory adds content intelligence and journey orchestration.

Together, these capabilities are designed to allow enterprises to move from static one-size-fits-all digital experiences to more personalized, interactive, and outcome-driven journeys. Now I will spend some time discussing how customers are engaging with us across the four journeys we power: customers, employees, learners, and audiences, as this is where we are seeing the most meaningful early validation of our strategy. First, customer journeys. Customer-facing use cases are the most advanced and show the strongest early traction. We are seeing growing interest in our revenue engagement suite, which brings together video, AI-powered content creation, conversational avatars, and journey orchestration into a unified solution for marketing, sales, and customer engagement teams.

Discussions with both new and existing customers are shifting from deploying video tools to broader conversations around improving lead conversion, scaling personalized engagement, and augmenting sales and customer success teams. We are in proof-of-concept discussions with large enterprises, including Fortune 500 organizations, across technology, financial services, healthcare, and media and telecom. These include use cases such as personalized content journeys and microsites, AI-powered conversational interfaces across websites and events, automated creation and scaling of targeted video content, 24/7 digital agents supporting customer and partner engagement and onboarding, and AI-powered SDR agents. In several of these engagements, we are progressing from initial proof of concept to broader platform discussions, reflecting growing confidence in the combined value of our offerings.

Importantly, these conversations increasingly involve multiple business stakeholders, including marketing, sales, and customer success leaders, expanding our buyer base beyond IT. Second, employee journeys. Across employee-facing use cases, we are seeing strong interest in leveraging AI to improve productivity, training, and knowledge access. Customers are engaging with us around four primary themes: extending workforce capacity through AI-assisted interactions, accelerating content creation and internal communications, turning large content libraries into interactive knowledge bases, and enhancing training through more personalized and interactive experiences. We are seeing adoption of tools such as ContentLab and Genie expand within large enterprises, including global financial institutions, pharmaceutical companies, and professional services firms.

These deployments are creating a strong foundation for future expansion into more advanced conversational and avatar-based use cases. For example, a large global professional services firm is expanding its use of our AI tools to scale internal communications and knowledge access across hundreds of thousands of employees, while a major financial institution has begun transforming support content into interactive self-serve learning experiences using our Genie platform. We also see growing interest in our avatar-based offerings for content creation, knowledge discovery, and role play simulations for sales training, enablement, and field support. Third, learner journeys. In education, discussions are increasingly centered around how AI can enable more personalized and interactive learning experiences.

Use cases include AI-powered teaching assistants and tutors, personalized learning paths, automated content creation and adaptation, and improved accessibility. We are engaged in discussions with universities around using our Avatar video production studio to generate rich instructional content. We are also in discussions with institutions regarding the use of our agentic avatars as academic tutors, role play simulation tools, and support agents for administration and admission. Our modular architecture and integrations with learning systems position us well in these conversations, and we are seeing continued engagement from both existing institutions and new prospects. Fourth, audience journeys. In media and telecom, we are discussing how AI can enhance audience engagement and monetization.

These discussions include more advanced content discovery and recommendation, personalized viewing experiences, new monetization models, and the introduction of interactive and conversational interfaces. These discussions range from AI-powered content recommendation and avatar concierge experiences to broader applications such as digital signage and customer engagement in large venues. It is worth noting we are also seeing growing interest for media and telecom companies to leverage our platform beyond traditional entertainment use cases, including customer journeys such as marketing and customer care, and employee journeys such as sales enablement. In summary, the increasing depth and breadth of these engagements reflects the progress we are making in our transition.

As we evolve from powering video experiences to powering end-to-end rich, agentic digital experiences, our focus in 2026 is on integrating esoft.ai and PathFactory, packaging rich, agentic solutions around clear use cases, and driving early adoption. We are seeing early signs of momentum in customer engagement and pipeline activities, and continue to expect revenue contribution from our new product portfolio to begin in the second half of the year with a more meaningful impact in 2027. Before I close, I also want to highlight our upcoming Kaltura Connect on the Road 2026 event.

We will be hosting events in New York, San Francisco, and London this week and next, bringing together customers and partners to discuss the evolution toward more personalized, AI-powered digital experiences. We are pleased to have participation from leading organizations including AWS, Cisco, IBM, MetLife, Morgan Stanley, and Palo Alto Networks. These events provide an important opportunity for customers and prospects to engage directly with our platform and roadmap, and we view the strong participation as further validation of the relevance of our strategy. Early feedback and participation levels are exceeding our expectations, with strong engagement from both existing customers and new prospects. You are invited to register for in-person or virtual participation through our website.

To summarize, we delivered a strong Q1, exceeding expectations across revenue and adjusted EBITDA, and achieving a key milestone with positive first quarter operating cash flow. We launched new products based on the ESOP acquisition, and completed the PathFactory acquisition and are progressing well on integration. We have been expanding our platform capabilities and are seeing encouraging early validation across all four journeys we support, and are headed into the rest of the year with increased confidence reflected in our updated guidance. With that, I will turn it over to Liron. Liron?

Liron Sharon: Thanks, Ron, and hello to everyone on the call today. As Ron noted, in the first quarter we once again exceeded the high end of our guidance across all metrics—subscription revenue, total revenue, and adjusted EBITDA—and generated for the first time cash flow from operations in the first quarter of the year. Let me now walk through the quarter in more detail. Total revenue for the quarter ended 03/31/2026 was $44.6 million, down 2% sequentially and 5% year-over-year, and exceeding the high end of our guidance range of $42.6 million to $43.4 million.

Subscription revenue was $43.2 million, up 1% sequentially and down 4% year-over-year, and also exceeding the high end of our guidance range of $41.2 million to $42.0 million. As discussed during our last earnings call, this year-over-year decline was fueled by the elevated media and telecom churn experienced in 2025, which we forecast will improve this year, as well as by a large E&T customer that shifted from conducting large virtual events to many smaller ones that are planned to be conducted later in the year. Professional services revenue was $1.4 million, down 50% sequentially and 31% year-over-year, consistent with our increased multi-year focus on recurring subscription revenue.

On a segment basis, E&T total revenue was $34.2 million, down 1% year-over-year, and subscription revenue was $33.7 million, flat year-over-year, while professional services revenue contributed $0.5 million, down 42% year-over-year. Within M&T, total revenue was $10.5 million, down 17% year-over-year, and subscription revenue was $9.5 million, down 16% year-over-year, while professional services revenue contributed $1.0 million, down 24% year-over-year. GAAP gross profit for the first quarter was $32.1 million, resulting in gross margin of 72%, up 200 basis points from Q1 2025. Subscription gross margin was 77%, in line with Q1 2025. The year-over-year improvement in gross margin reflects the continued benefit of our mix shift toward higher-margin subscription revenue.

GAAP operating expenses for the quarter were $33.3 million, compared to $34.3 million in 2025, an improvement of 3% year-over-year, and that is despite incremental operating costs associated with the ESELF acquisition and FX headwinds. Adjusted EBITDA for the quarter was $5.7 million, an increase of $1.5 million from $4.1 million in 2025, and exceeding the high end of our guidance range of $2.3 million to $3.3 million. Adjusted EBITDA margin was 13%, an increase of 400 basis points year-over-year, which underscores our commitment to operational profitability also amid our strategic transition and investment in growth.

GAAP net loss for the quarter was $3.8 million, or $0.03 per diluted share, compared to a net loss of $1.1 million, or $0.01 per diluted share, in Q1 2025. The year-over-year change in GAAP net loss reflects primarily non-cash and non-recurring expenses, including $3.8 million for non-cash stock-based compensation and $1.9 million for acquisition costs and other strategic initiatives. Non-GAAP net profit for the quarter was $2.1 million, or $0.01 per diluted share, compared to $2.0 million, or $0.01 per diluted share, in Q1 2025. Remaining performance obligations, or RPO, were $154.5 million, flat year-over-year. We expect to recognize 67% of this amount as revenue over the next 12 months.

Annualized recurring revenue in the first quarter was $168.8 million, flat sequentially and down 3% year-over-year. Net dollar retention for the quarter was 95%, compared to 107% in the prior-year period and 97% in Q4 2025. As a reminder, NDR is a lagging indicator and reflects prior period bookings and retention dynamics. As such, it has been significantly impacted by last year’s heightened M&T gross churn, which we expect will materially improve this year, alongside also higher M&T and E&T bookings. Moving to the balance sheet and cash flow, we ended the quarter with $61.8 million in cash, cash equivalents, and marketable securities.

Net cash generated from operating activities in the quarter was $0.7 million compared to $1.0 million used in operating activities in Q1 last year. This meaningful year-over-year improvement of $1.7 million also contributed to this quarter being our first Q1 with positive cash flow from operations. I will now turn to our outlook for Q2 2026 and for the full fiscal year ending 12/31/2026. For Q2 2026, we expect subscription revenue to grow 2% to 4% year-over-year to between $43.3 million and $44.1 million, total revenue to grow between 2% to 3% year-over-year to between $45.2 million and $46.0 million, and adjusted EBITDA to be between $2.0 million and $3.0 million.

For the full year 2026, we are thoughtfully raising all our guidance numbers and slightly narrowing the guidance ranges. We now expect subscription revenue to grow 1% to 3% to between $174.5 million and $176.7 million, total revenue to grow 1% to 2% to between $182.6 million and $184.8 million, and adjusted EBITDA to be between $13.8 million and $15.2 million. We continue to expect subscription and total revenue to be up gradually throughout the year.

We expect E&T to post a higher year-over-year growth rate compared to 2025, fueled by contribution from the PathFactory customer base and our new product portfolio, which is expected to start contributing revenue in the second half of the year with a stronger impact in 2027. We continue to forecast M&T year-over-year revenue decline this year due to the elevated churn in 2025, but expect to achieve both higher M&T new bookings and retention this year, which are forecasted to regenerate sequential quarterly M&T revenue growth in 2027. On the cost side, our guidance continues to take into consideration the PathFactory acquisition and expected post-merger integration costs as well as the continued expected impact of FX headwinds.

To close, Q1 marked a solid start to the year. We remain focused on disciplined execution, careful capital allocation, and balancing growth with profitability to maximize long-term shareholder value. We will now open the call for questions. Operator?

Operator: Ladies and gentlemen, we will now begin the question-and-answer session. If you would like to ask a question, a confirmation tone will indicate your line is in the question queue. You may press star and 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Ladies and gentlemen, we will wait for a moment while we poll for questions. Our first question comes from Ryan Koontz with Needham & Company. Please state your question.

Ryan Koontz: Great, thanks. Ron, I want to ask you about the expanded portfolio. Clearly very forward-leaning here and it seems highly differentiated. Can you map how your customer engagements are going or give us some color relative to the different set of stakeholders—who you have traditionally sold to, what those engagements are like, and how you are positioning the new portfolio to really take a broader swath of engagement from your customers, and then obviously helping your customers improve their engagements with their end customers? Thanks.

Ron Yekutiel: I appreciate it, Ryan, and thank you all for joining me today. Going back to the last couple of quarters and discussions we have had about our move from powering video experiences to powering agentic, rich experiences that cover the entire journey of customers, employees, learners, and audiences, I will give you examples of each. Before that, we have been beefing our content creation, management, and experience layers with more tools. On content creation, to remind you, we have our VOD-based avatar, which enables automatic content creation with avatars, and this runs on top of our ContentLab capabilities and additional creation tools that we have developed.

On the content management side, we have the PathFactory intent-based content analytics and content intelligence platform that understands users and delivers them the next piece of content in the right context, for the right reason, at the right time. Then on the engagement layer, we have our agentic avatars and now also the role play simulation on top of that, plus the delivery of the traditional Genie products. It is quite a lot of new things, and they all come together into a flywheel when content is created, managed, and delivered in real time in conversational form. Let me give you examples across the four journeys.

We started closing initial deals—again, they are small, and we expect more significant contribution to revenue in the second half of the year. At the beginning, they are more around customer journeys—POCs around sales, marketing, and customer support. They are coming from places like traditional tech, real estate, hospitality, consumer goods, M&T, and more. Looking at our broader pipeline, we have a few dozen opportunities, and they are mostly around the agentic avatars together with Genie, albeit there are already a few around the Avatar video production suite. These are about half and half between North America and Europe, and about half and half between upsells and new logos.

We have more on the customer journey side, followed not far behind by the employee side, then learners, and the smaller one is audiences. I will note that audience is one part of what M&T customers do because M&T are also using us not just for TV, but also for their customer engagement and even employees. From an industry perspective, we have the most coming from tech and M&T, followed by education, then financial services, and then pharma, real estate, gaming, BPO, manufacturing, oil and gas, and food. Now, examples: for customer journeys, folks are coming to us for marketing, web personalization, customer outreach, and ABM—marketers creating full personalized experiences through interaction with what we do.

We also have personalized events follow-ups—quite a few that already have done events and now are looking at one-on-one follow-ups with individuals. We have a couple starting to look into using us for SDRs and basic sales on the website. For customer training, they are looking to better enable their customers with information. Also customer care, renewal enablement, and partner enablement for large companies with marketplaces looking to have better tools for both enablement and support. Historically, we provided video on the website, portals, events, and webcasts—mere tools. Now you fulfill the full task and role; you are really becoming agentic.

The outcomes being looked at are not just “people engaged with video,” but whether you are increasing pipeline, accelerating conversion, and reducing cost—real business outcomes. Regarding buyers, we have always had elements of the marketing department involved; now we have far deeper interest by C-levels on the marketing side, revenue side, and customer care side. Moving to employee journeys, we have folks looking at internal recruiting, communications, L&D and onboarding, IT help desk, digital receptionist, and sales enablement. Consider using an avatar-plus tool to train sales and deliver the right asset at the right time and place, including snippets and documents together with Genie. We also have field support use cases—people in the field needing real-time information.

For learners, we have tutors providing one-on-one teaching and learning, role play in nursing schools and negotiation classes, mass content creation from documents and long videos into shorter videos, and even admissions assistance and community education. Lastly, on the audience side, we have recommendations, TV concierge, virtual assistants, and even physical events in big venues and point-of-sale kiosks. It is a far more robust set of interactions than in the past. The beauty is this is not a pivot or dropping video; this is the new way to use rich media, and many are connected to our other products.

People are saying they need websites within this ABM motion, and they need events within customer engagement—it adds to what we have done. It is a long answer, but hopefully it gives you color, Ryan.

Ryan Koontz: Yeah. Super interesting, Ron. Thank you.

Operator: Our next question comes from DJ Hynes with Canaccord Genuity. Please state your question.

Analyst: Hey, guys. This is Ryan on for DJ. Thanks for taking our questions. You have obviously added a ton of new functionality to the platform with ESELF and now PathFactory, and I know PathFactory is obviously new. Do you anticipate any sort of sales cycle elongation or digestion period as the salesforce gets up to speed with the new platform?

Ron Yekutiel: Thank you for that question. Not necessarily, but let us remember sales cycles have always been classic large enterprise sales cycles. Historically, media and telecom could have been a year and a half, and the classic enterprise sales cycle—think salesforce.com—is often many months. I do not think they are further elongated; they are typical long sales cycles. We have already had inbounds for POCs and interest at the beginning of 2026 that we expect to see converting in the second half of this year. So they are not all going to be extra long, but some of them might be.

Analyst: Okay, makes sense. And then if I could sneak one more in: we saw that you opened the platform to AI coding agents recently. Can you clarify how often you are seeing customers try to build these AI-led digital experiences internally or off the Kaltura platform, and are you able to monetize this third-party access?

Ron Yekutiel: To be very clear, what we have enabled is the integration into Kaltura, Inc. to be by way of code that customers can run and use. This is not us open-sourcing our core technology or core offering. The avatars and the fullness of the Kaltura, Inc. platform are definitely our code and are not being released. What we find is strong interest to take these tools and insert them in a very flexible, open, transparent way into workflows and into the agents third parties are building. We have always taken the approach that video is not an island, and also the experiences and agents we provide are not an island.

They need to be connected to databases, third-party systems, and enterprise workflows. We want to enable the lowest barrier for folks to take our tools, customize them, integrate them, insert them into workflows, and have them embedded within their operating environment. This is even more the case the more in-depth you are connected into the actual value generation of key KPIs of the company.

So what we are seeing is companies—definitely tech, but beyond—saying, “We have our own agent factory and a bunch of things we do, but we appreciate how we need to turn our website into a dynamically generative environment, or transform training and learning for customers or employees.” They need these tools connected to their own RAG, to whatever LLMs they use, to whatever applications and agents they are building, and that is what we have enabled.

Analyst: Gotcha. Thanks, Ron. Appreciate it.

Operator: Ladies and gentlemen, this concludes the question-and-answer session. I would now like to hand the conference over to Ron Yekutiel, the CEO, for the closing remarks.

Ron Yekutiel: I appreciate that, and thank you all for joining. We are on track and seeing interest in the new capabilities we have brought in. As stated, we have our event around the corner in New York, San Francisco, and London with great attendance—inviting all of you to register online. We are also going to be at the Needham 21st Annual Technology Conference and invite you to come meet us there. Lastly, as noted in our earnings PR, we have included in our quarterly investor deck a conversational agentic avatar that walks you through the presentation as an aid. You can ask it to explain slides and address additional questions—he is my avatar, but we could have used any avatar.

I am sure you will find that helpful, and it showcases our technology. This is one of many things that we can and will do with our new tech. We are excited and looking forward to what is ahead. Have a beautiful day, a beautiful week, and thank you for your time.

Operator: Ladies and gentlemen, the conference call of Kaltura, Inc. has now concluded. Thank you for your participation. You may now disconnect your lines.