Kaltura doubles down on AI with $22 million PathFactory acquisition
The Israeli company’s second acquisition in months highlights its shift beyond video infrastructure.
Kaltura has agreed to acquire AI startup PathFactory for about $22 million in cash, the company said Monday, as the New York-listed video technology provider continues an aggressive push to reposition itself around artificial intelligence.
The deal, expected to close in the second quarter of 2026, follows the company’s recent acquisition of avatar startup eSelf.ai and reflects Kaltura’s attempt to transform its core product, long known as an enterprise video platform, into what it describes as a broader system for “agentic digital experiences.”
Despite improving profitability and a steady base of enterprise customers, Kaltura’s market capitalization has fallen below $200 million, a steep decline from the roughly $1.2 billion valuation it achieved when it went public in 2021.
PathFactory develops software that helps companies analyze how users interact with content and automatically assemble personalized digital experiences based on behavior and intent. The technology is used primarily by enterprise marketing and sales teams to guide customers through what the industry increasingly calls “content journeys.”
More than 100 enterprise customers already use PathFactory’s platform, including companies such as Nvidia, Cisco, Palo Alto Networks and LG.
Kaltura said the acquisition would add “journey orchestration” and intent analysis capabilities to its platform, allowing companies to automatically sequence personalized media experiences across marketing, training, customer support and other digital interactions.
“Our mission has evolved from powering video experiences to powering rich, agentic digital experiences across organizational journeys,” said Ron Yekutiel, Kaltura’s co-founder and CEO. PathFactory, he said, “adds an important layer of agentic journey intelligence to our platform.”
The idea behind the strategy is that organizations are moving away from static digital experiences toward more dynamic interactions, including conversational systems and AI-generated content, that adapt to users in real time.
By combining PathFactory’s behavioral data analysis with Kaltura’s media infrastructure and conversational avatars, the company hopes to build a platform capable of creating, managing and delivering personalized multimedia experiences at scale.
The PathFactory deal is the second AI-focused acquisition Kaltura has pursued in recent months.
In November, the company agreed to acquire eSelf.ai for $27 million. The Israeli startup developed technology that allows organizations to deploy conversational avatars capable of interacting with users in more than 30 languages.
Founded in 2023, eSelf had raised just $4 million in funding before its sale.
Kaltura has been integrating that technology into a series of new products, including avatar-based video generation tools and conversational interfaces that allow users to interact with video content directly.
Together, the two acquisitions are intended to push the company beyond its original role as a provider of video infrastructure toward a more comprehensive system for AI-driven engagement.
The strategic shift comes as Kaltura’s financial results show improving efficiency but limited revenue expansion.
For the fourth quarter of 2025, the company reported revenue of $45.5 million, essentially flat compared with the same period a year earlier. Subscription revenue reached $42.7 million.
Adjusted EBITDA for the quarter reached $6.3 million, exceeding the company’s guidance and marking its tenth consecutive quarter of adjusted EBITDA profitability.
For the full year, revenue totaled $180.9 million, representing just 1% year-over-year growth.
Profitability, however, improved sharply. Adjusted EBITDA rose more than 150% to $18.6 million.
The company also narrowed its losses significantly, reporting a full-year GAAP net loss of $12.1 million compared with $31.3 million the previous year.
For the first quarter of 2026, Kaltura expects revenue between $42.6 million and $43.4 million and adjusted EBITDA between $2.3 million and $3.3 million.
For the full year, the company forecasts revenue between $181.2 million and $184.2 million and adjusted EBITDA between $12.7 million and $14.7 million.
