API Agora, Inc.
Price Chart
Executive Summary
Agora reported Q1 2026 earnings with revenue of $37.7M (+13.5% YoY) and net income of $1.1M, marking its sixth consecutive quarter of GAAP profitability. Revenue growth accelerated from 5.9% in FY2025 to 13.5% in Q1, while operating loss narrowed to $1.6M from $3.7M a year ago. The company guided Q2 2026 revenue of $39-40M (13.7%-16.6% YoY growth). The combination of accelerating top-line growth, expanding profitability, and continued buyback execution makes this a clear bullish event.
Actionable Insight
Revenue acceleration from 5.9% to 13.5% with improved dollar-based net retention (99% vs 95%) signals the conversational AI pivot is gaining traction. The $39-40M Q2 guide implies sustained growth. The stock's market cap of $358M against $366M cash suggests the core business is valued near zero — continued profitability and growth could drive a multiple re-rating. Watch for Q2 results and any update on the remaining $43.8M buyback capacity.
Key Facts
- Q1 2026 revenue was $37.7M, up 13.5% YoY from $33.3M
- Net income was $1.1M vs $0.4M in Q1 2025, sixth consecutive quarter of GAAP profitability
- Loss from operations narrowed to $1.6M from $3.7M YoY
- Gross margin declined to 63.4% from 68.0% due to conversational AI product mix at sub-scale
- Active customers grew 3.8% YoY to 3,946; Dollar-Based Net Retention Rate improved to 99% from 95%
- Guided Q2 2026 revenue of $39.0-40.0M, representing 13.7%-16.6% YoY growth
- Total cash and equivalents were $366.1M as of March 31, 2026
- Repurchased $13.1M in shares during Q1, totaling $156.2M (78.1% of $200M program) since inception
- Operating cash flow was $5.7M, down from $17.6M YoY when interest income was much higher
Financial Impact
Revenue growth acceleration to 13.5% vs prior year 5.9% is the key signal; net income doubling to $1.1M confirms improving operating leverage
Risk Factors
- Gross margin compression from conversational AI product mix (63.4% vs 68.0%) could persist as sub-scale AI products scale
- Operating cash flow declined sharply to $5.7M from $17.6M as interest income normalized
- Historical calibration shows prior bullish calls on API have underperformed (avg T+20 return of -7.31% over last 4 reports)
Market Snapshot
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001193125-26-242899 |
| Document: api-20260528.htm | 0001193125-26-242899 |
| Document: 0001193125-26-242899-index-headers.html | 0001193125-26-242899 |
| Document: 0001193125-26-242899-index.html | 0001193125-26-242899 |
| Document: 0001193125-26-242899.txt | 0001193125-26-242899 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
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Jun 1, 2026
4d ago
|
6-K
| $4.75 $5.26 | ▲ +10.74% | ▲ +10.59% | $4.81 (+1.26%) |
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May 28, 2026
8d ago
|
6-K
| — | awaiting T+1 | — | — |
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May 26, 2026
10d ago
|
Press Release
| — | awaiting T+1 | — | — |
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May 12, 2026
24d ago
|
Press Release
| $3.92 $3.92 | · 0.00% | ▲ +0.00% | $4.81 (+22.70%) |
|
Apr 22, 2026
6w ago
|
Press Release
| $3.73 $3.57 | ▼ −4.29% | ▼ −3.90% | $4.81 (+28.95%) |
|
Apr 15, 2026
7w ago
|
20-F
| $3.97 $3.94 | ▼ −0.76% | ▼ −1.01% | $4.81 (+21.16%) |
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Mar 2, 2026
13w ago
|
Press Release
| $4.56 $4.31 | ▼ −5.48% | ▼ −6.24% | $4.81 (+5.48%) |
US Market Status
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