API Agora, Inc.

NEUTRAL Impact: 4/10 PRESS-RELEASE
Horizon weeks Filed May 26, 2026 Processed 10d 4h ago Wire GlobeNewswire
Press release: earnings

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Executive Summary

Agora reported Q1 2026 revenue of $37.7M (+13.5% YoY) and net income of $1.1M, marking its sixth consecutive GAAP-profitable quarter. Guidance for Q2 2026 revenue of $39.0M-$40.0M (+13.7%-16.6% YoY) signals continued moderate growth, but gross margin contracted 460bps to 63.4% due to product mix shift toward sub-scale conversational AI products, and operating cash flow fell sharply to $5.7M from $17.6M a year ago.

Key Financial Metrics

Guidance
$39.0M-$40.0M
maintained
Gross Margin
63.4%

Actionable Insight

Revenue growth is steady but decelerating from prior quarters, and gross margin erosion from conversational AI mix is a watch item. The Q2 guidance midpoint of $39.5M implies ~15% YoY growth, in line with Q1's pace. Monitor the Q2 earnings call for updates on conversational AI margin trajectory and cash flow normalization.

Key Facts

  • Q1 2026 revenue $37.7M, +13.5% YoY from $33.3M
  • Net income $1.1M vs $0.4M YoY; sixth consecutive GAAP-profitable quarter
  • Gross margin 63.4%, down 460bps from 68.0% YoY due to conversational AI product mix
  • Operating loss improved to -$1.6M from -$3.7M YoY
  • Operating cash flow $5.7M vs $17.6M YoY (includes $4.6M vs $17.8M interest received)
  • Active Customers 3,946, +3.8% YoY; Dollar-Based Net Retention Rate 99% vs 95% YoY
  • Q2 2026 revenue guidance $39.0M-$40.0M, representing 13.7%-16.6% YoY growth
  • Repurchased ~$13.1M in shares during Q1; $43.8M remaining under $200M buyback program

Financial Impact

Revenue growth of 13.5% YoY with GAAP profitability maintained, but gross margin compression and lower operating cash flow temper the positive narrative

revenuegross marginoperating cash flownet income

Risk Factors

  • Gross margin compression from conversational AI products may persist as they scale
  • Operating cash flow decline of 68% YoY raises questions about cash generation quality
  • Dollar-Based Net Retention Rate at 99% suggests limited expansion from existing customers
  • China exposure (Shengwang) introduces geopolitical and regulatory risk

Market Snapshot

Exchange
Nasdaq
Sector
Services-Prepackaged Software
Analyst Consensus
67% bullish (6 analysts)

Documents Analyzed

This report is based on 1 press release from GlobeNewswire.

DocumentAccession Number
PRESS-RELEASE Data (Synthetic)press-3301560
7 reports for API
Performance horizon
50% Hit rate 2 of 4 directional calls best @ T+1▲ +10.74%Jun 1, 2026
Filters
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Reports for API — sortable, filterable
Type Now
Jun 1, 2026
4d ago
6-K
BULLISH ★ 5/10
$4.75 $5.26▲ +10.74%▲ +10.59%$4.81 (+1.26%)
May 28, 2026
8d ago
6-K
BULLISH ★ 7/10
awaiting T+1
May 26, 2026
10d ago
Press Release
NEUTRAL ★ 4/10
awaiting T+1
May 12, 2026
24d ago
Press Release
NEUTRAL ★ 2/10
$3.92 $3.92· 0.00%▲ +0.00%$4.81 (+22.70%)
Apr 22, 2026
6w ago
Press Release
BULLISH ★ 6/10
$3.73 $3.57▼ −4.29%▼ −3.90%$4.81 (+28.95%)
Apr 15, 2026
7w ago
20-F
BULLISH ★ 7/10
$3.97 $3.94▼ −0.76%▼ −1.01%$4.81 (+21.16%)
Mar 2, 2026
13w ago
Press Release
BULLISH ★ 8/10
$4.56 $4.31▼ −5.48%▼ −6.24%$4.81 (+5.48%)
Showing 7 of 7

US Market Status

Market Closed — Opens Mon (34h 59m)

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