Agora (API) AI Stock Analysis

• Market Cap: $357.21M
• Dividend Yield: N/A
• Average Volume (3M): 392.67K
• Price to Earnings (P/E): 79.3
• Beta (1Y): 2.31
• Revenue Growth: 1.62%
• EPS Growth: N/A
• Country: US
• Employees: 608
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.03
• Shares Outstanding: 74,465,760
• 10 Day Avg. Volume: 488,838
• 30 Day Avg. Volume: 392,666
• PEG Ratio: 0.18
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 2.91
• P/FCF Ratio: -7.86
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: 2.06
• Enterprise Value/Gross Profit: 3.09
• Enterprise Value/Ebitda: 22.99
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.05
• Revenue Forecast (FY): $137.37M

• Rating: 56 Neutral
• Price Target: $3.50 ▼(-1.13% Downside)

Agora's overall stock score is driven by a positive earnings call, indicating strong revenue growth and profitability. However, financial performance challenges and high valuation weigh down the score. Technical indicators suggest a neutral market sentiment.

Positive Factors

Revenue Growth

Consistent double-digit revenue growth indicates strong market penetration and adoption, enhancing Agora's competitive position and long-term growth potential.

Profitability

Achieving profitability for four consecutive quarters reflects operational improvements and financial stability, supporting sustainable business growth.

Conversational AI Innovations

Innovations in conversational AI can drive future revenue streams and strengthen Agora's technological edge, positioning it well in emerging markets.

Negative Factors

Cash Flow Challenges

Persistent negative cash flow highlights liquidity challenges, potentially limiting Agora's ability to invest in growth and manage financial obligations effectively.

Profitability Issues

Continued net losses and negative profit margins indicate operational inefficiencies, which could hinder long-term financial health and shareholder value.

Gross Margin Decline

A declining gross margin suggests rising costs or pricing pressures, which may impact profitability and require strategic cost management to maintain margins.

Agora Business Overview & Revenue Model

Company Description

Agora is a leading global provider of real-time engagement APIs, specializing in solutions that enable voice, video, and live interactive broadcasting capabilities. The company serves various sectors, including social media, education, gaming, and enterprise communications, offering a comprehensive suite of tools that facilitate seamless and interactive communication experiences for developers and businesses worldwide.

How the Company Makes Money

Agora primarily generates revenue through a usage-based pricing model, charging customers based on the volume of audio or video minutes consumed, as well as data transmitted over its network. This model allows for scalability as clients pay for what they use. Key revenue streams include subscriptions for premium features, pay-as-you-go services, and enterprise solutions tailored to large organizations. Additionally, partnerships with technology companies and integrations with popular platforms enhance Agora's market reach and contribute to its earnings.

Agora Financial Statement Overview

Summary

Agora's financial performance is mixed. The company has a strong gross profit margin and low leverage, but faces challenges with profitability and cash flow. Revenue growth is modest and inconsistent, and the company needs to improve cash generation.

Income Statement

Agora's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin is strong at 67%, indicating efficient cost management. However, the net profit margin is negative, reflecting ongoing losses. Revenue growth is modest at 2.88% TTM, but historical data shows volatility with periods of decline. The EBIT and EBITDA margins are negative, highlighting profitability challenges.

Balance Sheet

The balance sheet is relatively stable with a low debt-to-equity ratio of 0.11 TTM, suggesting limited leverage risk. However, the return on equity is negative, indicating that the company is not generating profits from its equity base. The equity ratio is healthy, showing a strong equity position relative to total assets.

Cash Flow

Cash flow analysis reveals concerns, with negative free cash flow growth and a negative free cash flow to net income ratio. Operating cash flow is positive TTM, but historical data shows inconsistency. The company needs to improve cash generation to support operations and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	137.40M	133.26M	141.54M	160.67M	167.98M	133.56M
Gross Profit	91.81M	85.45M	89.47M	99.42M	104.01M	86.36M
EBITDA	12.34M	-31.19M	-78.27M	-104.08M	-61.63M	-731.00K
Net Income	4.77M	-42.73M	-87.22M	-120.62M	-72.69M	-3.11M
Balance Sheet
Total Assets	710.10M	699.65M	674.60M	800.72M	945.00M	692.90M
Cash, Cash Equivalents and Short-Term Investments	170.11M	269.66M	216.65M	427.71M	755.30M	635.44M
Total Debt	76.26M	50.14M	15.20M	2.27M	7.41M	0.00
Total Liabilities	143.46M	126.99M	69.85M	72.45M	78.74M	36.44M
Stockholders Equity	566.65M	572.66M	604.75M	728.26M	866.26M	656.46M
Cash Flow
Free Cash Flow	-18.47M	-49.38M	-30.46M	-254.25M	-32.47M	-6.31M
Operating Cash Flow	22.48M	-14.13M	-13.61M	-44.38M	-20.00M	6.56M
Investing Cash Flow	2.43M	-38.05M	56.64M	-151.06M	-57.69M	-535.05M
Financing Cash Flow	23.86M	45.99M	-52.37M	-42.15M	251.94M	533.64M

Agora Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For API, the sentiment is Positive. The current price of 3.54 is below the 20-day moving average (MA) of 3.55, below the 50-day MA of 3.60, and below the 200-day MA of 3.84, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 59.47 is Neutral, neither overbought nor oversold. The STOCH value of 81.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for API.

Agora Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRAK	70 Outperform	$236.29M	35.83	14.60%	0.55%	11.05%	18.55%
SMRT	62 Neutral	$355.70M	―	-25.48%	―	-24.30%	-181.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
PUBM	57 Neutral	$422.37M	―	-2.85%	―	-0.68%	-146.14%
API	56 Neutral	$357.21M	79.25	0.84%	―	1.62%	―
ONTF	54 Neutral	$246.51M	―	-20.20%	―	-6.23%	28.57%
EGHT	48 Neutral	$281.44M	―	-4.88%	―	0.25%	92.10%

Agora Corporate Events

Agora, Inc. Achieves Fourth Consecutive Profitable Quarter in Q3 2025

Agora, Inc. reported its financial results for the third quarter of 2025, marking its fourth consecutive quarter of GAAP profitability with a 12% increase in total revenues to $35.4 million. The company achieved a net income of $2.7 million, a significant turnaround from a net loss of $24.2 million in the same quarter last year. This growth is attributed to the strong performance of its core real-time engagement business and increased investment in conversational AI. Agora also reported a reduction in operating expenses by 44.8% due to workforce optimization, contributing to improved financial health. The company repurchased 5.2 million Class A ordinary shares during the quarter, reflecting its ongoing commitment to its share repurchase program.