Israeli Company That Lost 83% Since IPO Surges 35% Following Earnings
Kaltura is worth less than a fifth of its 2021 IPO valuation and had previously sought an acquisition. Recent earnings reports have shifted the narrative, at least for now. What is driving the surge, and what risks remain?
The Israeli video company Kaltura (KLTR) recorded an unusual surge of about 35% in trading on NASDAQ yesterday, after publishing financial reports for the second quarter of 2026 that beat analysts' forecasts. The stock, which traded the day before around $1.4, jumped to $1.89 and closed the day with a market cap of approximately $284 million.
This is the story of a company from which much was expected over the years, and which for three years mainly disappointed — and is now trying to sell investors a new narrative: artificial intelligence.
Kaltura, founded in 2006 by Ron Yekutiel, who still serves as CEO and Chairman, develops video platforms for organizations. It provides systems that allow companies, universities, and media firms to upload, manage, broadcast, and view video content — from employee training videos and academic portals to streaming platforms for telecommunications companies. Among its clients are giants like Amazon, Nvidia, Oracle, and Salesforce, alongside educational institutions and large corporations.
Revenue in the second quarter totaled $46.9 million, an increase of 5% compared to the same quarter last year. Subscription revenue — the core of the business — grew by 8% to $45.6 million. What really impressed the market was the bottom line: adjusted operating profit (adjusted EBITDA) surged by 44% to $5.9 million, well above the company's preliminary forecast of $2-3 million. Non-GAAP gross margin reached 75%, a record for the company.
On the bottom accounting line, Kaltura still reported a loss of $5.5 million, but this is a significant reduction from the $7.8 million loss in the same quarter last year. On a non-GAAP basis, it even moved to a modest profit of $2.3 million. Alongside this, the company raised its annual forecast.
The main reason for the enthusiasm is not just the numbers, but the direction. In the quarter, Kaltura signed 14 new deals that included AI products — double its previous record. Nine of them included its animated avatar product, based on the acquisition of the Israeli startup eSelf, which was completed at the end of 2025 for about $27 million.
The company reports a pipeline of opportunities of more than 500 potential clients in the AI field, with a potential unweighted value of about $17 million in annual revenue.
Kaltura itself admits that the financial contribution from these deals is still negligible — the total value of their contracts stands at only about $1 million. The significant impact, according to management, is expected only in 2027.
This context makes the surge particularly interesting. Kaltura went public on Wall Street in July 2021 at a valuation of about $1.2 billion, at the peak of the COVID-era IPO wave. Since then, the stock has collapsed, the enterprise video market has shrunk, and all founders except Yekutiel have left. Even after yesterday's jump, the company is trading at a valuation of only about $284 million — meaning it has lost nearly 80% of its value since the IPO.
At the end of 2024, the situation reached a point where Kaltura hired the investment bank Jefferies to explore a sale or merger, hoping for a deal that would reflect a valuation of $400-500 million. These reports faded over time, no deal was closed, and the company remained public — and is now continuing to try to rebuild itself through AI.
Meanwhile, the company's media and telecommunications sector continues to shrink, with a 10% drop in revenue. The Net Dollar Retention (NDR) rate stands at only 96% — lower than 101% a year ago, indicating that the company is still losing revenue from existing clients. In addition, the company expects pressure from veteran clients, including some from the acquired PathFactory, and the operating cash flow in the quarter was negative.
Bottom line, Kaltura is a classic case of a speculative company attempting a turnaround: a small and very volatile stock that jumped 35% in one day but remains far from its peak. Those who believe in the AI story see a company with a relatively good client base and a new product that may ignite growth again.
Those who are more cautious will note that the financial contribution from AI is still theoretical, the company's history is full of disappointments, and stocks with such a valuation can fall as fast as they rose. As always in investments of this type — the potential is high, but so is the risk.
