Agora, Inc. (API)
NASDAQ:API
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Agora
(NASDAQ:API)
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Rating:56Neutral
Price Target:
$3.50
▼(-15.66% Downside)
Action:Reiterated
Date:05/27/26
The score reflects a company with a strong balance sheet and encouraging earnings-call momentum (growth outlook and ongoing GAAP profitability), offset by still-unproven operating earnings quality and inconsistent/weak free-cash-flow generation. Technical indicators also weigh on the score, showing weak price momentum versus key moving averages.
Positive Factors
Strong liquidity & low leverage
A sizable cash balance and historically low leverage provide durable financial flexibility to fund AI investments, product R&D, and share repurchases without immediate refinancing. This liquidity buffer supports multi-quarter investment cycles and cushions execution risk during scaling.
Negative Factors
Negative/volatile free cash flow
Persistently negative and volatile free cash flow, despite an operating cash flow improvement in 2025, raises sustainability concerns. Ongoing capex/R&D and buybacks could exhaust flexibility if positive FCF is not consistently re-established across several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong liquidity & low leverage
A sizable cash balance and historically low leverage provide durable financial flexibility to fund AI investments, product R&D, and share repurchases without immediate refinancing. This liquidity buffer supports multi-quarter investment cycles and cushions execution risk during scaling.
Read all positive factors
Agora (API) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$317.83M
Dividend YieldN/A
Average Volume (3M)305.54K
Price to Earnings (P/E)18.5
Beta (1Y)2.34
Revenue Growth6.11%
EPS GrowthN/A
CountryUS
Employees608
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.11
Shares Outstanding65,504,800
10 Day Avg. Volume293,354
30 Day Avg. Volume305,539
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 Cap1.07
Enterprise Value/Revenue2.42
Enterprise Value/Gross Profit3.65
Enterprise Value/Ebitda19.05
Forecast
1Y Price Target
$6.60Price Target Upside59.04% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.18
Revenue Forecast (FY)$155.49M
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 selling access to its real-time engagement platform (APIs/SDKs) under usage-based and/or subscription-style commercial arrangements, where customers pay based on consumption of services (e.g., real-time audio/v...
Agora Earnings Call Summary
Earnings Call Date:May 26, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 24, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive operational and financial trajectory: revenue growth accelerated and beat guidance, GAAP profitability continues (six consecutive quarters), customer retention improved, new AI and collaboration products and meaningful partnerships (including Google and NetEase) indicate significant strategic progress, and management provided an optimistic Q2 outlook. Offsetting these positives are meaningful near-term margin pressure from conversational AI product-mix (gross margin declined ~4.6 percentage points), negative operating cash flow in the quarter driven by lower interest income and share buybacks, and the conversational AI business remaining subscale with execution and competitive risks. Overall, the company appears to be balancing disciplined cost management and capital return with continued investment in AI; the positives (growth, profitability, product momentum, partnerships, and buybacks) outweigh the near-term AI-related margin and cash-flow challenges.Positive Updates
Sustained Profitability
6th consecutive quarter of GAAP profitability with GAAP net income of $1.1M in Q1 2026, more than double Q1 2025, representing a 2.9% GAAP net income margin.
Negative Updates
Gross Margin Pressure from Conversational AI Mix
Gross margin declined to 63.4% in Q1 2026 from 68.0% in Q1 2025 (down 4.6 percentage points). Management attributes the decline primarily to product-mix changes as conversational AI offerings are still at subscale and carry initial negative margin impact.
Read all updates
Q1-2026 Updates
Positive
Negative
Sustained Profitability
6th consecutive quarter of GAAP profitability with GAAP net income of $1.1M in Q1 2026, more than double Q1 2025, representing a 2.9% GAAP net income margin.
Read all positive updates
Company Guidance
Guidance for Q2 2026 calls for total revenue of $39.0–$40.0 million (vs. $34.3M in Q2 2025), implying 13.7%–16.6% year‑over‑year growth and, the company noted, faster growth than Q1 even at the low end; Q1 results were $37.7M revenue (+13.5% YoY), beating prior guidance of $36–$37M, GAAP net income $1.1M (2.9% margin) and the sixth consecutive profitable quarter. Management also highlighted key operating metrics from Q1—DBNER 99% (vs. 95% a year ago), gross profit $23.9M and gross margin 63.4% (down from 68% due mainly to early-stage conversational AI), R&D $14.4M (38.1% of revenue), sales & marketing $5.9M (15.6%), G&A $6.0M (15.9%), cash/Cash equivalents and deposits of $166M, and active share repurchases of ~12.5M Class B shares (3.1M ADS) for ~$13.1M in the quarter (total repurchases to date ~174.7M Class A / 43.7M ADS for ~$156.2M, ~78.1% of a $200M program). Looking ahead, management expects operating income and net income to grow sequentially Q1→Q4, targets GAAP operating profitability in H2 2026, and sees conversational AI ramping to roughly ~5% of revenue by year‑end amid >150% sequential usage growth per quarter since its launch.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 | 141.06M | 133.26M | 141.54M | 160.67M | 167.98M |
| Gross Profit | 93.66M | 85.45M | 89.47M | 99.42M | 104.01M |
| EBITDA | 17.91M | -28.62M | -72.17M | -104.08M | -57.91M |
| 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
3.74
Positive
4.07
Negative
3.87
Negative
Market Momentum
>-0.01
Positive
47.81
Neutral
31.54
Neutral
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 above the 20-day moving average (MA) of 3.83, above the 50-day MA of 3.74, and above the 200-day MA of 3.87, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.81 is Neutral, neither overbought nor oversold. The STOCH value of 31.54 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $183.73M | 17.42 | 0.06% | 0.57% | 6.55% | 11.41% | |
62 Neutral | $310.62M | 138.67 | 1.20% | ― | 2.89% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $481.15M | -7.70 | -6.98% | ― | -2.33% | -425.96% | |
56 Neutral | $317.83M | 18.47 | 1.68% | ― | 6.11% | ― | |
48 Neutral | $246.83M | -16.16 | -10.61% | ― | -9.70% | 61.30% |
* Technology Sector Average
API
Agora
3.77
-0.02
-0.53%
EGHT
8X8
2.15
0.49
29.52%
TRAK
ReposiTrak
10.13
-12.01
-54.24%
PUBM
PubMatic
10.54
-1.17
-9.99%
SMRT
SmartRent
1.27
0.43
51.19%
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.