Despite posting a robust single-day gain exceeding 5% on Monday, the prevailing sentiment surrounding Kaltura remains cautious. Market experts continue to express a bearish outlook for the cloud video specialist, even in the face of respectable quarterly earnings and an ambitious profitability roadmap from its leadership. The critical question for investors is whether this recent uptick signifies a meaningful reversal or merely a brief pause in the downward trend.
A Mixed Technical Picture
The recent upward movement is not an isolated event. Since hitting a low in late August, the equity has advanced by more than 11%, a move supported by a buy signal from its 3-month MACD indicator. The accompanying rise in trading volume alongside the price increase is typically viewed as a positive technical development. However, the broader trend appears fragile, with the stock having closed lower in six out of the last ten trading sessions.
A critical support level currently resides at the $1.49 mark. A decisive break below this price point has the potential to trigger a new wave of selling pressure.
Strategic Shifts Underpin Fundamentals
Behind the share price volatility lies a company undergoing a significant transition. Kaltura recently reported respectable financial figures for the second quarter of 2025. Revenue saw a modest increase to $44.5 million, with subscription income growing by 3%. Notably, the firm achieved a record adjusted EBITDA of $4.1 million, matching its performance from the previous quarter.
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More importantly, the company has initiated a strategic pivot. A workforce reduction of 10% is projected to yield annual savings of approximately $8.5 million. Management has set a target to double its EBITDA to around $30 million by 2026 and is aiming to achieve the “Rule of 30” by 2028.
AI Products Represent Potential Catalyst
A promising development is emerging from the company’s product pipeline. Over 150 customers have already expressed interest in Kaltura’s AI-generated video solutions. This segment is positioned to become a crucial future growth driver as the company concurrently streamlines its cost structure.
Despite these positive internal signals, skepticism continues to dominate the stock’s market performance. The disconnect between fundamental progress and weak share price action remains the central dilemma for investors.
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