How does the company's debt profile and liquidity position look after the quarter (e.g., debt‑to‑equity, cash runway)? | KLTR (Aug 07, 2025) | Candlesense
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How does the company's debt profile and liquidity position look after the quarter (e.g., debt‑to‑equity, cash runway)?

Answer Overview

The press release you referenced (“Kaltura Announces Financial Results for Second Quarter 2025”) contains only a high‑level announcement of the quarter’s results and the outlook for the upcoming quarter and full‑year 2025. It does not disclose the specific numbers or ratios that describe Kaltura’s debt profile or liquidity position (e.g., total debt, debt‑to‑equity ratio, cash balance, or cash‑runway calculations). Consequently, a precise assessment of those metrics cannot be derived from the information that’s been provided.

Below, I’ll outline what information would be required to evaluate the company’s debt‑to‑equity ratio and cash runway, why it’s not available in the current news snippet, and where you can find the missing data.

1. What the Company’s Debt Profile Typically Includes

Metric What It Measures Why It Matters
Total Debt (short‑term + long‑term) The total amount the company owes to lenders, bondholders, and other creditors. Indicates the size of the company’s obligations and its ability to meet them.
Shareholders’ Equity The residual interest of shareholders after all liabilities are subtracted from assets. Represents the owners’ claim on the business; used as the denominator in the debt‑to‑equity ratio.
Debt‑to‑Equity Ratio (D/E) Total Debt Ă· Shareholders’ Equity Shows leverage; a higher ratio indicates more reliance on debt financing.
Cash & Cash Equivalents Cash on hand, marketable securities, and short‑term investments that can be readily turned into cash. Directly influences how long a company can fund operations without external financing.
Cash Run‑way Cash & Cash Equivalents Ă· Cash Burn Rate (or a similar metric) Estimates how many months the company can continue operating at its current cash burn.
Liquidity Ratios (Current Ratio, Quick Ratio) Short‑term assets Ă· short‑term liabilities, etc. Indicate short‑term solvency and the ability to meet immediate obligations.

2. Data Needed to Compute the Metrics

Metric Required Data (from the 10‑Q or press release)
Total Debt Line item “Total Debt” (or “Long‑Term Debt” + “Current Portion of Long‑Term Debt”).
Shareholders’ Equity The equity figure from the balance sheet (often “Total Stockholders’ Equity”).
Cash & Cash Equivalents Cash and cash equivalents from the balance sheet.
Cash Burn Rate Typically derived from the cash flow statement: Cash used in operating activities (or a disclosed “cash burn” figure).
Debt‑to‑Equity Ratio Compute Total Debt / Shareholders' Equity.
Cash Run‑way Divide cash & equivalents by the average monthly cash burn (or use the company’s disclosed “cash runway” statement).
Liquidity Ratios Current assets, current liabilities, etc.

Where to Find This Information

  • Form 10‑Q (Quarterly report) filed with the SEC: includes a full balance sheet, income statement, and cash flow statement.
  • Earnings Release/Investor Presentation: Companies sometimes highlight debt and cash figures in the “financial highlights” section.
  • Management Discussion & Analysis (MD&A): May discuss liquidity, cash runway, and any debt covenant considerations.

3. Why the Current News Summary Doesn’t Provide This Information

The news piece is a high‑level press release. In such releases, companies usually:

  • Highlight revenue, bookings, net loss, adjusted EBITDA, and guidance.
  • Offer qualitative commentary on market trends, product updates, or strategic initiatives.
  • Omit detailed balance‑sheet numbers (debt, cash, equity) unless there is a major change that would affect investors' perception of financial health (e.g., a new debt issuance, a large refinancing, a significant cash‑burn event, or a covenant breach).

Because the summary you shared contains no numerical figures or a “balance sheet” excerpt, we cannot directly calculate the debt‑to‑equity or cash‑runway values.

4. What to Do Next

  1. Locate the Full 10‑Q for Q2 2025:

    • Go to the SEC’s EDGAR database and search for “Kaltura Inc. Form 10‑Q for quarter ended June 30 2025”.
    • The filing will have the exact balance‑sheet numbers, which will enable you to compute:
      • Debt‑to‑Equity = Total Debt Ă· Total Shareholders' Equity.
      • Cash Run‑way = Cash & cash equivalents Ă· (average monthly cash burn), where the cash burn can be derived from “Net cash used in operating activities” divided by the number of months in the reporting period.

  2. Check the Investor Relations Website:

    • Companies often post a “Quarterly Results Presentation” that includes a slide titled “Liquidity & Capital Resources” with a concise view of cash, debt, and runway.

  3. Look for Management Commentary:

    • Within the MD&A, the CFO or CEO often states: “We ended the quarter with $X million in cash, giving us a cash runway of Y months” or “Our debt‑to‑equity ratio remains at Z%”. These statements are usually the most direct way to answer the question if you do not want to do the math yourself.

  4. If You Only Have the Press Release:

    • Note the absence of the data and indicate that you cannot provide a precise ratio or runway without the detailed financial statements.

5. Sample “What‑If” Illustrative Calculation (Hypothetical)

Assume the 10‑Q shows:

  • Total Debt: $120 million (Long‑term + current portion)
  • Shareholders' Equity: $250 million
  • Cash & cash equivalents: $50 million
  • Cash used in operating activities (quarter): $15 million (approx. $5 million per month)

Then:

  • Debt‑to‑Equity = $120 M Ă· $250 M = 0.48 (≈48%).
  • Monthly cash burn = $15 M Ă· 3 months = $5 M/month.
  • Cash runway = $50 M Ă· $5 M per month = 10 months of cash.

These numbers are *only illustrative*—the actual values must be taken directly from Kaltura’s filed statements.

6. Bottom‑Line Answer

The press release you referenced does not disclose Kaltura’s debt‑to‑equity ratio, cash balance, or cash‑runway figures. To obtain a precise picture of the company’s debt profile and liquidity after Q2 2025, you will need to consult Kaltura’s Form 10‑Q for the quarter ended June 30 2025 (or the detailed earnings presentation/MD&A that accompanies the press release). Those documents will provide the exact balance‑sheet numbers needed to calculate:

  • Debt‑to‑equity ratio (Total Debt Ă· Shareholders’ Equity).
  • Cash runway (Cash & cash equivalents Ă· monthly cash burn).

Once you have those figures, you can assess whether Kaltura is in a comfortable, moderate, or high‑leverage position and how many months of operations it can fund without additional financing. If you locate the 10‑Q and share the specific figures, I can walk you through the exact calculations.

Other Questions About This News

What are the potential risks or upside scenarios if the company beats/ misses its outlook, and how might that impact the stock's technical and sentiment indicators? How does the current valuation (P/E, EV/EBITDA, price/ sales) compare with peers in the video‑streaming and SaaS space? Are there any notable changes in the company's cash flow, capital expenditures, or free cash flow in Q2? Are there any upcoming catalysts (e.g., product launches, partnership announcements, conference presentations) that could move the stock? Did the company announce any new contracts, renewals, or churn that could affect future revenue visibility? What were the key drivers behind Kaltura's Q2 2025 revenue growth (or decline) compared to the same period last year? How does the company's Q2 earnings per share (EPS) compare to analysts' consensus estimates? What specific product or segment initiatives contributed most to the quarter’s performance (e.g., new Video Experience Cloud features, enterprise vs. media‑industry customers)? What is the guidance for Q3 and full‑year 2025 revenue and EPS, and how does it compare to market expectations? What are the implications of the guidance and any disclosed risks for the stock’s short‑term momentum and volatility? What are the margins (gross, operating, net) for Q2 and how have they trended over the past four quarters?