Kaltura Narrows Losses Amidst Revenue Dip, Cost Cuts

TL;DR

**KLTR is still bleeding cash, but the losses are shrinking, making it a speculative turnaround play if cost cuts stick.**

AI Summary

Kaltura Inc. reported a net loss of $2.628 million for the three months ended September 30, 2025, an improvement from a net loss of $3.610 million in the same period of 2024. For the nine months ended September 30, 2025, the net loss was $11.497 million, significantly better than the $24.710 million loss in the prior year. Total revenue slightly decreased to $43.866 million in Q3 2025 from $44.295 million in Q3 2024, primarily due to a drop in professional services revenue from $2.210 million to $1.890 million, while subscription revenue remained stable at $41.976 million. Operating expenses saw a reduction, falling to $32.231 million in Q3 2025 from $34.007 million in Q3 2024, driven by decreases in research and development, sales and marketing, and general and administrative costs. The company also incurred $804 thousand in restructuring costs during the nine months ended September 30, 2025. Cash and cash equivalents increased to $41.513 million as of September 30, 2025, from $33.059 million at December 31, 2024, despite a decrease in total assets from $181.305 million to $172.624 million over the same period. The strategic outlook includes managing volatile economic conditions and adapting to evolving markets for its offerings.

Why It Matters

Kaltura's continued net losses, despite significant improvements, signal ongoing challenges in achieving profitability, which is critical for investor confidence and long-term stock performance. The slight revenue decline, particularly in professional services, suggests potential competitive pressures or a shift in customer demand, impacting future growth prospects. For employees, the $804 thousand restructuring charge indicates potential workforce adjustments, creating uncertainty. Customers might benefit from a more streamlined operation, but the company's ability to innovate and maintain service quality amidst cost-cutting will be key in a competitive video technology market.

Risk Assessment

Risk Level: medium — Kaltura has a history of losses, with a net loss of $11.497 million for the nine months ended September 30, 2025, and faces risks from a volatile economic climate and geopolitical instability in Israel and Ukraine. The company's dependency on existing customer demand and the highly fragmented market it operates in also contribute to a medium risk profile, as outlined in the forward-looking statements.

Analyst Insight

Investors should monitor Kaltura's next earnings report closely for sustained improvements in net loss and revenue growth, particularly in subscription services. Consider a small, speculative position if the trend of narrowing losses continues and if the company demonstrates clear strategies for revenue expansion beyond cost-cutting.

Financial Highlights

debt To Equity

8.73

revenue

$43.866M

operating Margin

-7.35%

total Assets

$172.624M

total Debt

$30.358M

net Income

-$2.628M

eps

-$0.02

gross Margin

70.9%

cash Position

$41.513M

revenue Growth

-1.0%

Revenue Breakdown

Key Numbers

• $11.497M — Net Loss (9 months) (Improved from $24.710M in prior year)
• $43.866M — Total Revenue (Q3) (Slight decrease from $44.295M in Q3 2024)
• $41.976M — Subscription Revenue (Q3) (Stable compared to $42.085M in Q3 2024)
• $32.231M — Total Operating Expenses (Q3) (Reduced from $34.007M in Q3 2024)
• $804K — Restructuring Costs (9 months) (New expense in 2025, indicating strategic changes)
• $41.513M — Cash and Cash Equivalents (Increased from $33.059M at Dec 31, 2024)
• 156,334,157 — Shares Outstanding (As of November 5, 2025)
• $0.07 — Net Loss Per Share (9 months) (Improved from $0.17 in prior year)

Key Players & Entities

• Kaltura, Inc. (company) — Registrant in 10-Q filing
• $2.628 million (dollar_amount) — Net loss for Q3 2025
• $3.610 million (dollar_amount) — Net loss for Q3 2024
• $11.497 million (dollar_amount) — Net loss for nine months ended Sept 30, 2025
• $24.710 million (dollar_amount) — Net loss for nine months ended Sept 30, 2024
• $43.866 million (dollar_amount) — Total revenue for Q3 2025
• $44.295 million (dollar_amount) — Total revenue for Q3 2024
• $804 thousand (dollar_amount) — Restructuring costs for nine months ended Sept 30, 2025
• $41.513 million (dollar_amount) — Cash and cash equivalents as of Sept 30, 2025
• Nasdaq Stock Market LLC (regulator) — Exchange where KLTR common stock is registered

FAQ

Risk Factors

• Economic Volatility [medium — market]: The company acknowledges managing volatile economic conditions as a strategic outlook. This implies potential impacts on customer spending and demand for Kaltura's services.
• Evolving Market Demands [medium — market]: Kaltura is adapting to evolving markets for its offerings. This suggests a need for continuous innovation and product development to stay competitive.
• Restructuring Costs [low — operational]: Incurred $804 thousand in restructuring costs during the nine months ended September 30, 2025. This indicates internal changes or adjustments that may affect future operational efficiency.

Industry Context

Kaltura operates in the video platform and digital media space, competing with a range of providers from large cloud-based solutions to specialized video hosting services. The industry is characterized by rapid technological advancements, increasing demand for video content across all sectors, and a growing emphasis on AI-driven features for content management and delivery.

Regulatory Implications

As a software and cloud-based service provider, Kaltura is subject to data privacy regulations (e.g., GDPR, CCPA) and intellectual property laws. Compliance with these regulations is crucial to avoid fines and maintain customer trust. The company's financial reporting adheres to SEC regulations for public companies.

What Investors Should Do

1. Monitor subscription revenue stability and growth drivers.
2. Analyze the impact of reduced operating expenses on future profitability.
3. Evaluate the strategic rationale behind restructuring costs.
4. Assess the sustainability of the improved cash position.

Key Dates

• 2025-09-30: End of Q3 2025 — Reported net loss of $2.628M on $43.866M revenue, with improved cash position.
• 2024-09-30: End of Q3 2024 — Reported net loss of $3.610M on $44.295M revenue.
• 2025-12-31: End of Fiscal Year 2024 — Company had $33.059M in cash and cash equivalents.
• 2025-11-05: Filing Date Reference — Shares outstanding reported as 156,334,157.

Glossary

Accumulated deficit

The cumulative net losses of a company since its inception, minus any cumulative net profits. (Indicates the company has historically incurred more expenses than revenues, with a deficit of $480.307M as of September 30, 2025.)

Deferred revenue, current

Revenue that has been received by a company but not yet earned, representing services or goods that will be provided in the future within one year. (Represents a significant portion of Kaltura's short-term liabilities ($61.052M), reflecting future revenue commitments.)

Operating lease right-of-use assets

An asset representing the lessee's right to use an underlying asset for the lease term. (Reflects the company's long-term commitments for leased assets, totaling $10.780M as of September 30, 2025.)

Goodwill

An intangible asset that arises when a company acquires another company for a price greater than the fair value of its net identifiable assets. (Kaltura has $11.070M in goodwill, unchanged, suggesting no recent significant acquisitions or impairments.)

Year-Over-Year Comparison

Kaltura Inc. has shown a significant improvement in its net loss for the nine months ended September 30, 2025, reducing it to $11.497 million from $24.710 million in the prior year. While total revenue saw a slight decrease from $44.295 million to $43.866 million in Q3, driven by a drop in professional services, subscription revenue remained stable. The company has also effectively reduced total operating expenses by $1.776 million in Q3 year-over-year, contributing to the improved bottom line. Cash reserves have strengthened, increasing from $33.059 million to $41.513 million, although total assets have declined.

Key Financial Figures

• $0.0001 — nge on which registered Common stock , $0.0001 par value per share KLTR The Nasdaq S
• $0 — he registrant's common stock, par value $0.0001, outstanding as of November 5, 202

Filing Documents

• kltr-20250930.htm (10-Q) — 1829KB
• eighth_amendmentxtoxcred.htm (EX-10.1) — 17KB
• kaltura_311q32025125736099.htm (EX-31.1) — 11KB
• kaltura_312q32025125736098.htm (EX-31.2) — 10KB
• kaltura_321q32025125736097.htm (EX-32.1) — 6KB
• kaltura_322q32025125736100.htm (EX-32.2) — 6KB
• eighth_amendmentxtoxcred001.jpg (GRAPHIC) — 255KB
• eighth_amendmentxtoxcred002.jpg (GRAPHIC) — 265KB
• eighth_amendmentxtoxcred003.jpg (GRAPHIC) — 282KB
• eighth_amendmentxtoxcred004.jpg (GRAPHIC) — 286KB
• eighth_amendmentxtoxcred005.jpg (GRAPHIC) — 26KB
• eighth_amendmentxtoxcred006.jpg (GRAPHIC) — 45KB
• eighth_amendmentxtoxcred007.jpg (GRAPHIC) — 42KB
• eighth_amendmentxtoxcred008.jpg (GRAPHIC) — 45KB
• 0001628280-25-051053.txt ( ) — 10995KB
• kltr-20250930.xsd (EX-101.SCH) — 58KB
• kltr-20250930_cal.xml (EX-101.CAL) — 85KB
• kltr-20250930_def.xml (EX-101.DEF) — 220KB
• kltr-20250930_lab.xml (EX-101.LAB) — 711KB
• kltr-20250930_pre.xml (EX-101.PRE) — 499KB
• kltr-20250930_htm.xml (XML) — 1548KB

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION

Consolidated Financial Statements (unaudited)

Item 1. Consolidated Financial Statements (unaudited) Condensed Consolidated Balance Sheets as of September 30, 202 5 (unaudited) and December 31, 202 4 (audited) 4 Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 202 5 and 202 4 (unaudited) 6 Condensed Consolidated Statements of Comprehensive Loss for the three and nine months ended September 30, 202 5 and 202 4 (unaudited) 7 Condensed Consolidated Statement of Stockholders' Equity for the three and nine months ended September 30, 202 5 and 202 4 (unaudited) 8 Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 202 5 and 202 4 (unaudited) 10 Notes to Condensed Consolidated Interim Financial Statements (unaudited) 12

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 35

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 57

Controls and Procedures

Item 4. Controls and Procedures 58

OTHER INFORMATION

PART II OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 58

Risk Factors

Item 1A. Risk Factors 58

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 61

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 61

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 61

Other Information

Item 5. Other Information 61

Exhibits

Item 6. Exhibits 63

Signatures

Signatures 66 Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q may be forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "targets," "projects," "contemplates," "believes," "estimates," "forecasts," "predicts," "potential" or "continue" or the negative of these terms or other similar expressions or terminology. Forward-looking statements contained in this Quarterly Report on Form 10-Q include, but are not limited to, statements regarding our future results of operations and financial position, industry and business trends, projections of demand, growth prospects, product development, competitive pressure, cost savings, stock-based compensation, revenue recognition, expected impacts of reorganization plans, business strategy, plans, market growth, the economic climate and its impact on us, and other financial and market matters. The forward-looking statements in this Quarterly Report on Form 10-Q are only predictions. We have based these forward-looking statements largely on our current assumptions, expectations and projections about future events and financial trends that we believe may affect our business, financial condition, and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS KALTURA, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (U.S. dollars in thousands, except share and per share data) (unaudited) September 30, 2025 December 31, 2024 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 41,513 $ 33,059 Marketable securities 30,688 48,275 Trade receivables 20,258 19,978 Prepaid expenses and other current assets 11,055 9,481 Deferred contract acquisition and fulfillment costs, current 8,957 10,765 Total current assets 112,471 121,558 LONG-TERM ASSETS: Marketable securities 11,898 3,379 Property and equipment, net 13,288 16,190 Other assets, noncurrent 3,601 2,983 Deferred contract acquisition and fulfillment costs, noncurrent 9,440 13,605 Operating lease right-of-use assets 10,780 12,308 Intangible assets, net 76 212 Goodwill 11,070 11,070 Total noncurrent assets 60,153 59,747 TOTAL ASSETS $ 172,624 $ 181,305 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Current portion of long-term loans $ 5,030 $ 3,110 Trade payables 4,862 3,265 Employees and payroll accruals 14,128 15,399 Accrued expenses and other current liabilities 12,858 14,262 Operating lease liabilities, current 2,800 2,504 Deferred revenue, current 61,052 63,123 Total current liabilities 100,730 101,663 LONG-TERM LIABILITIES: Deferred revenue, noncurrent 41 67 Long-term loans, net of current portion 25,328 29,153 Operating lease liabilities, noncurrent 14,616 15,263 Other liabilities, noncurrent 14,174 10,772 Total long-term liabilities 54,159 55,255 TOTAL LIABILITIES $ 154,889 $ 156,918 The accompanying notes are an integral part of the condensed consolidated financial statements 4 Table of Contents KALTURA, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (U.S. dollars in thousands, except share and per share data) (unaudited) September 30, 2025 December 31, 2024 COMMITMENTS AND CONTINGENCIES (NOTE 8) STOCKHOLDERS' EQUITY: Preferred stock, $ 0.000

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View this 10-Q filing on SEC EDGAR