Agora, Inc. (API)
NASDAQ:API
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Agora
(NASDAQ:API)
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Rating:57Neutral
Price Target:
$3.50
▼(-15.66% Downside)
Action:ReiteratedDate:03/08/26
The score is held back primarily by uneven financial performance (still-negative operating profit and mostly negative free cash flow despite recent improvement). The latest earnings call provides a meaningful offset with upbeat guidance, profitability momentum, and strong liquidity/buybacks, while technicals and valuation are neutral-to-slightly negative and do not add strong support.
Positive Factors
Consumption-based revenue model
A consumption-based API/SDK business aligns revenue with customer activity, providing intrinsic scalability as apps grow. This model supports durable unit economics: revenue increases with minutes/usage, enabling broad developer adoption, predictable volume-driven upside, and strong long-term monetization optionality.
Negative Factors
Volatile revenue & uneven profitability
Historic revenue volatility and inconsistent operating profitability indicate execution risk. While 2025 shows improvement, dependence on non‑operational items for reported net income and prior multi-year losses mean sustainable operating margins and repeatable earnings remain unproven over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Consumption-based revenue model
A consumption-based API/SDK business aligns revenue with customer activity, providing intrinsic scalability as apps grow. This model supports durable unit economics: revenue increases with minutes/usage, enabling broad developer adoption, predictable volume-driven upside, and strong long-term monetization optionality.
Read all positive factors
Agora (API) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$331.03M
Dividend YieldN/A
Average Volume (3M)411.20K
Price to Earnings (P/E)39.2
Beta (1Y)2.35
Revenue Growth1.62%
EPS GrowthN/A
CountryUS
Employees608
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.05
Shares Outstanding74,465,760
10 Day Avg. Volume424,647
30 Day Avg. Volume411,205
Financial Highlights & Ratios
PEG Ratio-0.32
Price to Book (P/B)0.67
Price to Sales (P/S)2.65
P/FCF Ratio-59.53
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue2.35
Enterprise Value/Gross Profit3.54
Enterprise Value/Ebitda32.11
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.15
Revenue Forecast (FY)$159.20M
Agora Business Overview & Revenue Model
Company Description
Agora, Inc. provides Real-Time Engagement Platform-as-a-Service (RTE-PaaS) in the People's Republic of China, the United States, and internationally. The company RTE-PaaS offers developers with software tools to embed real-time video, voice, and m...
How the Company Makes Money
Agora primarily generates revenue by charging customers for usage of its real-time engagement APIs/SDKs (e.g., voice/video, interactive live streaming, and messaging) in a consumption-based model where fees scale with activity/volume. Revenue is t...
Agora Earnings Call Summary
Earnings Call Date:Mar 02, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 25, 2026
Earnings Call Sentiment Positive
The call highlighted solid operational and financial momentum — double-digit YoY revenue growth, restored GAAP profitability, strong operating cash flow, a large-scale product win (600k peak viewers), expanding conversational AI usage and product adoption, and continued capital returns via buybacks. Headwinds are largely transitional and tied to ramping conversational AI (subscale infrastructure, pilot monetization lag) and a slight YoY gross margin decline driven by that mix; Shengwang's DBNR below 100 and near-term margin items (SBC and amortization) are additional cautions. Overall, positives (growth, profitability, cash, product validation and AI momentum) outweigh near-term AI-related margin and scale challenges.Positive Updates
Revenue Growth and Beat
Total Q4 revenue of $38.2M, up 10.7% year-over-year and above the high end of guidance; company reports fourth consecutive quarter of double-digit organic growth.
Negative Updates
Gross Margin Pressure from Early-Stage AI Products
Quarter gross margin of 65.1%, down 1.5 percentage points YoY and 0.9pp sequentially; decline primarily attributed to conversational AI products running at subscale levels and POC pilots (often uncharged), dragging overall margin.
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue Growth and Beat
Total Q4 revenue of $38.2M, up 10.7% year-over-year and above the high end of guidance; company reports fourth consecutive quarter of double-digit organic growth.
Read all positive updates
Company Guidance
For Q1 2026 the company guided total revenues of $36.0–$37.0 million (versus $33.3M in Q1 2025), implying year‑over‑year growth of 8.1%–11.1%; management expects gross margin to be roughly flat versus Q4 2025, sees net income growing versus 2025, and anticipates significant operating income improvement with a goal of achieving GAAP operating profit in Q4 2026 (2026 outlook assumes about $6.0M of share‑based compensation and ~ $4.0M of headquarters‑project amortization). They also expect conversational AI revenue to ramp through 2026 toward roughly 5% of ARR by year‑end, and noted quarter‑end liquidity of $374.9M plus a Board‑approved share repurchase program extended through Feb 28, 2027 ( ~$143.1M repurchased to date, 71.6% of a $200M authorization).Agora Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
74
Positive
Cash Flow
41
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 141.43M | 133.26M | 141.54M | 160.67M | 167.98M |
| Gross Profit | 93.91M | 85.45M | 89.47M | 99.42M | 104.01M |
| EBITDA | -4.89M | -31.19M | -78.27M | -104.08M | -61.63M |
| Net Income | 9.55M | -42.73M | -87.22M | -120.62M | -72.69M |
Balance Sheet | |||||
| Total Assets | 721.10M | 699.65M | 674.60M | 800.72M | 945.00M |
| Cash, Cash Equivalents and Short-Term Investments | 219.69M | 269.66M | 216.65M | 427.71M | 755.30M |
| Total Debt | 82.34M | 50.14M | 15.20M | 2.27M | 7.41M |
| Total Liabilities | 158.25M | 126.99M | 69.85M | 72.45M | 78.74M |
| Stockholders Equity | 562.85M | 572.66M | 604.75M | 728.26M | 866.26M |
Cash Flow | |||||
| Free Cash Flow | -6.29M | -49.38M | -30.46M | -254.25M | -32.47M |
| Operating Cash Flow | 27.42M | -14.13M | -13.61M | -44.38M | -20.00M |
| Investing Cash Flow | 13.24M | -38.05M | 56.64M | -151.06M | -57.69M |
| Financing Cash Flow | 5.01M | 45.99M | -52.37M | -42.15M | 251.94M |
Agora Technical Analysis
Negative
4.15
Price Trends
4.35
Negative
4.03
Negative
3.89
Negative
Market Momentum
-0.23
Positive
26.54
Positive
6.12
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For API, the sentiment is Negative. The current price of 4.15 is below the 20-day moving average (MA) of 4.17, below the 50-day MA of 4.35, and above the 200-day MA of 3.89, indicating a bearish trend. The MACD of -0.23 indicates Positive momentum. The RSI at 26.54 is Positive, neither overbought nor oversold. The STOCH value of 6.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for API.
Agora Risk Analysis
Agora disclosed 86 risk factors in its most recent earnings report. Agora reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Agora Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $146.90M | 33.51 | 14.66% | 0.57% | 11.05% | 18.55% | |
66 Neutral | $345.94M | -11.71 | -19.64% | ― | -6.23% | 28.57% | |
64 Neutral | $382.56M | -28.83 | -5.64% | ― | -0.68% | -146.14% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $259.13M | 13.24 | -2.93% | ― | 0.25% | 92.10% | |
57 Neutral | $331.03M | 39.18 | 1.68% | ― | 1.62% | ― | |
54 Neutral | $309.48M | -6.33 | -25.34% | ― | -24.30% | -181.62% |
* Technology Sector Average
API
Agora
3.54
-1.09
-23.54%
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Agora Corporate Events
Agora Returns to Full-Year Profit in 2025 on AI-Driven Growth and Cost Cuts
Mar 3, 2026
Agora, Inc. reported unaudited results for the fourth quarter and fiscal year ended December 31, 2025, showing its fifth consecutive quarter of GAAP profitability and its first full profitable year since 2018, driven by double-digit revenue growth...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.